BUSINES NAME: TUNDA ASSORTED JUICE PARLOUR

BUSINESS ADRESS P.O BOX 1728- KISUMU

EMAIL tundajuice@gmail.com

PRESENTED BY: SUSAN JEBET

INDEX NUMBER:7121010085

CENTER NAME: ST JOSEPH TECHNICAL TRAINING INSTITUTE

FOR THE DEAF NYANGOMA

SUPERVISOR: MR CASTRO OKUMU

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL

IN PARTIAL FULFILLMENT FOR THE QUALIFICATION FOR
THE AWARD OF CERTIFIVATE IN FOOD AND BEVERAGE

EXAMINATION SERIES: NOVEMBER 2022

TABLE OF CONTENTS

Declaration…………………………………………………………………………………………………………………….i

Dedication………………………………………………………………………………………………………………………ii

Acknowledgement………………………………………………………………………………………………………..iii

1.0 Chapter 1

1.1Business Description

1.2 Business Ownership

1.3Products and services

1.4 Industry

1.5 Justification

1.6Business goals and Objectives

1.7 Growth and entry strategy

2.0 Chapter 2

2.1 Marketing plan

2.2 Potential customers

2.3Competition

2.4 Pricing

2.5 Sales tactics

2.6 Distribution Strategy

3.0 Chapter 3

3.1 Organizational and Management plan

3.2 Organization and management chart

3.3 Management team

3.4 Recruitment and Training

3.5 Renumeration

3.6 Incentives

3.7Legal requirements

3.8 Support services

4.0 Chapter 4

4.1 Production and operational plan

4.2 Production facilities and capacity

4.3 Production strategy

4.4 Production process

4.5 Other factors affecting operation

5.0 Chapter 5

5.1 Financial plan

5.2 Pre-operational cost

5.3 Working Capital

5.4 Projected cash flow statement

5.5 Pro-forma Income statement

5.6 Pro-forma balance sheet

5.7 Calculating break-even point

5.8 Profitability ratios

5.9 Propose capitalization

Appendixes
Declaration

I Susan Chebet declare that this is my original work which has never been presented anywhere for any
professional qualification for the award of craft, diploma or any other professional qualification in any
institutional of learning.

Name of student: Susan Chebet

Dedication

I dedicate this work to the Almighty God for His continual care and protection. Secondly I dedicate it to
my nuclear family who have continually supported my studies and given me the moral support. Thirdly I
dedicate this plan to the Fransiscan Sister of St Anna family for their spiritual care which they accord me
on daily business.

Acknowledgement

I acknowledge this business plan to the Almighty God for His care, protection and knowledge towards
me. Secondly I acknowledge the work to my supervisor Mr Castro Okumu for his continous
encouragement so that the work may come to a complete. Thirdly I acknowledge this work to the
beloved sisters the Fransiscan sisters of St Anna Nyangoma community for their support and giving me a
conducive environment to carry out this work.
EXECUTIVE SUMMARY

Tunda Assorted juice parlor shall be a sole proprietorship form of business dealing with fresh
natural juice of all kinds. It shall be located at the Kisumu stage along the highway, opposite
Kisumu Boys high school next to Total filling station. I decided to locate in this place due to
good infrastructure and easy accessibility.

Tunda assorted juice parlor’s products shall be found at the premise and with the hawkers who
also sell them in other parts of the stage. The business shall majorly target travelers, the students
and staff of Kisumu Boys, doctors and patients of Agha Khan Hospital. My business shall
promote its products through giving discounts to frequent customers to boost the relation and
through a robot and posters. The business being a sole proprietorship, I shall own it assisted by
other personnel that is the General manager, Human resource manager, Accountant,
Receptionist, Production manager, storekeeper, marketer, waiter, cleaner and security officer.
The working days and hours of the business shall be from Monday to Saturday from 8:00am to
5:00pm.

My business shall deal with fresh juices of all kinds and fruit salads. I shall ensure that the
products are well blended and balanced in order to obtain good flavors to customers thus retain
them since the products are natural products. We will ensure that we educate our esteem
customers on the importance of natural products. I shall promote high standard of hygiene and
quality service to our customers.

Tunda assorted juice parlor shall need ksh700000 to start the business of which Ksh350000 shall
be from family members and friends while ksh350000 shall be a loan from welfare group.
1.0 CHAPTERONE

1.1 Business Description

The owner of the business shall be Susan Chebet currently a student at St Joseph Technical Training
Institute for the deaf Nyang’oma, pursuing certificate in food and beverage. Susan has skills in
production and services, purchasing of raw materials and attraction of customers. She has got good
working experience of three years. Being a single lady, I ventured into this business so that I may create
job opportunities for young men and women in the society, make profit and help promote good health
by teaching my customers on the importance of consuming natural products.

My business shall be a sole proprietorship and so I shall have the following advantages:
-I shall enjoy the profit alone
-Decision making shall be easier
-It shall require limited liabilities

Tunda Assorted juice parlour shall be located at Kisumu stage along the Kisumu –Kakamega highway
opposite Kisumu Boys high school.

The business address shall be;

Tunda Assorted juice parlour

P.O BOX 1728

KISUMU

Telephone: +254737654676

Email: tundajuice@gmail.com

1.2 Business Ownership

The Tunda Assorted juice parlour shall be a sole proprietorship form of business whereby Susan Chebet
shall be the director and shall be assisted by ten other employees. It requires few legal formalities to
begin, small capital, I shall enjoy all the profit gained alone, It will be easy to supervise my employees
and there shall be a direct contact to my customers. The profit gained shall be used to start an annex the
business which shall be opened in a different place of the Kisumu town.
1.3 Products and Services

Tunda assorted juice parlour shall deal with fresh natural blended juice. The parlour shall ensure that
good fruits of quality shall be bought from the farms of known farmers who produce yellow, green and
succulent fruits which will enable us produce juice of good quality and quantity. My products and
services shall be of high quality that is good high standard of hygiene shall be practiced , We shall
ensure that the freshness of the products shall be raised and they shall be well packed to avoid
contamination Good portioned size products shall be offered and after sales services shall be available.
The prices of my products shall be pocket friendly.

1.4 Industry

Tunda assorted juice parlour shall fall under the hospitality industry which is dominated by large scale
producers. Its performance shall be of high quality that is giving discount to customers once in a while,
offering after sales services and products of pocket friendly prices in order to attract and retain
customers.

1.5 Justification

Tunda Assorted juice parlour shall succeed because of the following reasons:

▪Producing of fresh fruit juice

▪The location of my premise
▪High quality service offered
▪Good record keeping shall be practiced
▪Fresher courses shall be given to employees.

Being the only producer of natural juice, I shall try my level best to produce good juice of quality. My
produce shall be free from synthetic preservatives which are harmful to human health.
1.6 Business Goals and Objectives
Tunda Assorted juice parlour shall have short term, medium term and long term goals
1.6.1 Short Term Goals
-Increase of stock for better production
-Increase number of employees
-Opening an annex
1.6.2 Medium Term Goals
-Increasing salaries to employees
-Improving modes of promotions of my products
-Giving after sales services to my esteem customers
for example door to door deliveries.
1.6.3 Long Term goals
-Increasing level of technology in the business
-Obtaining my own farm to produce fruits.
-Opening new branches in Kisian and Ahero
town.

1.7 Growth and Entry Strategy

Tunda Assorted Juice parlour shall use members of the locality as an agent and use the name of
one of the members as a business name in order to attract customers. The parlour shall provide
the product of the fruit that is loved most by the community. It shall open more branches in
other neighboring towns.
CHAPTER TWO
2.0 MARKETING PLAN
2.1 Potential Customers
My potential customers shall mainly be the staff and patients of Agha Khan Hospital, teaching
and non-teaching staff of Kisumu Boys High School who live in Kisumu town and its outskirts,
they are stable in income and therefore they are able to buy my products.
Tunda Assorted Juice parlour shall provide products of that shall be needed by customers
because of their freshness and they shall buy them on a daily basis. My methods of payment
shall be cash, lipana M-pesa and direct bank transfers.
2.2 Competition
My Competitors shall be Maggy’s palace and Vin’s take away who are located 1km and 2kms
respectively away from my business. They employ manual methods of production that is they
rely on manpower, they have no modern technology employed and they have poor marketing
strategy. They invest low capital since most of their products are not fresh in the market and so
they lose customers. My competitors prices are pocket friendly and so they attract many
customers. They maintain good standard of hygiene and they meet the government policy.

Competitor Strength Weakness

Vin’s Take away ▪High standard of hygiene ▪Invest low capital
▪Prices pocket friendly ▪Poor marketing strategies
▪gives good quality services ▪Poor storage
Maggy’s palace ▪quality services ▪low capital invested
▪pocket friendly services ▪poor storage
▪enough manpower ▪poor hygiene
I intend to enter the market and occupy 70% of the market
 Sales

TUNDA ASSORTED JUICE

PARLOR
VIN'S TAKE AWAY
MAGGY'S PALACE

My products shall be distributed by fruit vendors who I shall higher to aid in distributing the
products from the establishment to other customers.

2.3 Pricing Strategy

Tunda fruit parlour shall consider the following factors before setting the prices for its products:
▪Government policy
▪Level of income
 ▪Number of competitors
▪Capital invested
▪Nature of customers
I shall sell at prices which are friendly to my customers and lower than those of my competitors.
I shall also give discount to my frequent customers once in a while. I shall operate on cash basis,
lipana m-pesa,and direct cash transfer.

2.4 Sales Tactics

I shall use direct selling methods where all transactions shall be recorded and receipts are
issued. My frequent customers shall be given a discount of 10%of the total purchase to boost
my business relationship with them. I shall offer/ give educative information about the
importance of natural products to our health through customer care. Tunda shall employ
courteous employees who will use a convincing language to attract customers.

2.5 Distribution Strategy

Tunda Assorted juice parlor’sproducts shall be from the purchasing officer, to the storekeeper,
advertising officer, production manager, sales manager then to the consumer be transported by
hired probox. The distribution is likely to encounter problems like:
•Theft
•Poor roads
•Rationing of electric power
•In availability of some raw materials in the market
Tunda Assorted juice parlor shall set up the following measures to the challenges which shall
be encountered.
-Lay off the employees who shall be found stealing, install CCTV.
-It shall hire a probox so that it can help get raw materials from the farmer
itself. -Employ a manual way of production once the power
is not available.
The distribution cost shall be ksh30000 per month for hire of several fruit vendors and the
probox that will help get the raw materials from the farmers these shall be later reduced to
ksh15000 per month upon the purchase of our own probox to improve efficiency and avoid
delay of purchasing raw materials in the market.

CHAPTER 3
3.1 ORGANIZATION AND MANAGEMENT PLAN
Tunda assorted juice parlor being a sole proprietorship, shall have its management as follows: I
shall be the director since I am the owner of the business and I shall b assisted by:
•General manager
•Human Resource manager
•Accountant
•Receptionist
•Production manager
•Storekeeper
•Marketing manager
•Waiter
•Cleaner
•Security officer

3.2 Organization and Management chart

3.3 Management team
Tunda assorted juice parlor shall be managed by the following personnel:
3.3.1 Managing director
She is the owner of the establishment and general supervisor of the parlor.
Duties and responsibilities
•Supreme person in the establishment.
•In charge of everything as the owner of the business.
•Provide strategic advices to the board and the chairperson.
•Prepare and implement comprehensive business strategic plans in order to attain goals.
Qualifications
*A Bachelor’s degree holder in business administration and related fields.
*Excellent communication, negotiation and presenting skills.
*Extensive experience in management.
*Good public relations skills.
3.3.2 General manager
Shall be managing the business under the Director
Duties and responsibilities
•Accomplishes departmental objectives by managing the staff.
•Develops personal growth opportunities
•Delegate administrative tasks accounting and payrolls.
Qualifications
*Bachelor degree holder in hotel management.
*Should be able to work under pressure
*Should have good communication skills
*Should have a good public relation.
3.3.2 Human Resource Manager
Duties and Responsibilities
•Shall be responsible for employing staff
•Keeps the business records of each employee
•Shall ensure that the business resources and property are in good conditions.
Qualifications
*Must be a degree holder in human and resource management.
*Must be a registered member of Institute of human resource
management. *Must have a three-year experience in the
same field. *Should have good
communication skills.
3.3.4 Accountant
Duties and responsibilities
•Balances the cash books
•Shall prepare payrolls.
•Responsible for cash flow in the business.
•Gives out money for purchases.
Qualifications
*Must be a holder of bachelor’s degree in accountancy.
*Must have a two-year experience in the field.
*Must be transparent and
accountable.

3.3.5Marketing manager
Duties and responsibilities
•Identifies the target group.
•ensures proper selling of the products.
Qualifications
*Should be a diploma holder in sales management.
*Must be an expert in the field of sales and marketing.
 *Must have a certificate of good conduct.
*Must have three years working experience.

3.3.6Storekeeper
Duties and responsibilities
•Keeps good store records.
•Prepares books for accounting at the end of the year.
•Signs the delivery note.
•Ensures that there is good storage of
goods. •Maintains good levels of
stock.
Qualifications
*Must be a diploma holder in book keeping.
*Must have two year working experience
*Must be computer literate

PRODUCTION MANAGER
Duties and responsibilities
-responsible for implementing work
Providing materials and equipment for work
Ensure that the standard recipe is followed to maintain good quality produce
QUALIFICATIONS
Must be a diploma holder in food and beverage
Must have a five years of experience in food production in a recognized hotel
Must have a certificate of good conduct.

3.3.8 SECURITY OFFICER

 Duties and responsibilities
Ensure that there is good safety in the premise
He is a gate keepr
Reports any suspicion of insecurity to the managing director
Qualifications
Must be a form four leaver
Must have a certificate in criminology
Must have a certificate of good conduct
Must be registered by a known security firm in kenya
Must be fluent in English,Kiswahili and local language

3.4 RECRUITMENT AND TRAINING

I shall source my employees from the environment,recognized institution and also by
advertising my business vacancies.
3.4.1 Recruitment process
Drafting the advert
Discuss it with the team members of my business
Posting it to various places e.g pinning it on public places and also in various media
Receiving application
Contacting the applicants
Calling to interview
Selecting
Deciding who to take
Shortlisting the qualified applicants
Placement of workers in various departments

3.4.2 Training
I shall train my staff by offering them for refresher courses and for the newly employed
members,they shall train on job by working closer to the manager.
The trainee shall be assisted in the premise because they will be able to improve or broaden
their skills,help prevent accidents ,raise my business to a higher level.

3.4.3 Promotion
I shall consider the following factors for promotion in my establishment
Commitment
Accountability
Education level/qualification
Teamwork and skills
Respect
Good public relations
I shall allow my employees to work closer to the general manager/supervisor
I shall also encourage them to upgrade their level of education.

3.5 REMUNERATION
This is the payment of salaries to my e mployees for the services rendered
3.6 INCENTIVES
Tunda Assorted juice parlour shall offer the following incentives to motivate its workers to
boost productivity.
Incentives Amount
Meals 20000
Airtime 40000
Bonus 15000
75000
3.7 LEGAL REQUIREMENTS
I shall obtain a trading licence from the county government of Kisumu to allow my business
run smoothly with no interference from the government.

3.7.1 PERMITS
Tunda Assorted juice parlour shall follow the bylaws stipulated by the government by
attaining a permit to allow her business run smoothly. This permit shall be attained from the
county council headquarter.

3.8.0 SUPPORT SERVICES

I shall require various support like banking services,legal services and insurance in order to
allow my business operate effectively
3.8.1 Banking services
I shall open/have an account with the kenya commercial bank to enable me daily deposits of
sales and to save profit safely
3.8.2 Legal services
I shall hire the services of ODUNDO AND SONS COMPONY ADVOCATES LIMITED to defend the
company in the court of law incase of any conflicts
3.8.3 Insurances services
Tunda Assorted juice parlourshall be insured by Britam insurance company against theft ,fire
and general damages so that eventuality of such cases shall be paid and my business shall
continue.

CHAPTER FOUR.
4.0 PRODUCTION /OPERATIONAL PLAN
4.1 Tunda Assorted juice parlour shall be dealing with fresh juice of different fruits in different
seasons so that the production may continue despite some fruits that that will be out of
season.This will help Tundaparlour to maintain its customer.
4.2 Production Facilities and capacity
Table showing machines and equipment used during production and storages.

Machine Type Capacity Size Number Source Unit Total

and required price price
equipment
Deep Armco 30 litres medium 2 Kitchen 30000 60000
Freezer ware
Blending Armco 5 litres medium 2 Kitchen 5000 10000
machine ware
Computer japanese 500gb medium 2 microsoft 40000 80000
Drinking luminarc 500ml medium 50 luminarc 150 7500
glasses
sieve kenpoly large 3 kenpoly 150 450
Super kenpoly 40 litres medium 3 kenpoly 750 2250
drum
SUBTOTAL 160200

4.3 Production Strategy

The Tunda Assorted fruit Parlour shall have the following plans and objectives which will help
obtain optimum levels ,minimum production cost and maximize its profit.
I shall use tools use and equipment that are cheap and available in the market
I shall produce my products in large quantities
I shall bargain the market price so as to win as many customers as possible
I shall reduce the labour cost by employingthose with additional skills
TundaAsssortedn juice parlour shall maintain and service its machines ,tools and equipment
with vioumaengeenering company. This shall be done on monthly basis.
My monthly cost for material labour and production overhead shall be 20,000 per month.This
will be used for oiling ,lubricating of machines and also some repairs.

4.4 PRODUCTION PROCESS

This is the procedure in which Tunda Assorted juice parlour shall follow in the production unit
in order to obtain quality products.
 Wash the fruits thoroughly by using plenty of water
 Peel the fruits to remove the outer skin
 Cut into segments (small )
 Put the segments into the blender and run the blender to blend it well
 Stop the blender and pour them into a large pan
 Sieve and correct the consistency
 Flavor it to taste
 Garnish with the appropriate garnish
 Sieve in its correct temperature or as ordered by customers

4.5 OTHER FACTORS AFFECTING OPERATION

4.5.1 Safety Regulation

Tunda Assorted juice parlour shall ensure that both employees and customers are safe.
The employeesinthe production unit shall be provided with an apron to protect
him/her from dirt, chef jacket to protect them from cold and hot items, chef’s hat to
protect the hair and sweat from falling into the juice during production, black leather
shoes to protect the feet from burns and scalds.
I shall ensure that my customers are served in a conducive enviromentwhich is free
from dirt and other harmfulllharzards.

4.5.2 HEALTH REGULATIONS

I shall carryout the following activities in order to meet the government policies

 Proper disposal of waste materials

 Maintain proper sanitation of both the employees and the premise
 Ensure that the employees have the food handling certificate
 Provide a packet of milk to my employees especially those in the production unit
 I shall ensure that my premise has a licence
 Provide plenty of water for cleaning
 Observe the labour laws.
5.0 chapter 5
5.1 FINANCIAL PLAN
Tunda Assorted juiceparlour shallincur the followingcost in the process of running the
business
5.1.1 Proposed Capitalization
SOURCE AMOUNT
Family and friends 350,000
Loan from welfare 350,000

5.2 PRE OPERATIONAL COST

ITEM COST
Trading license 25,000
Business registration 8,000
Insurance 4,000
Business permit 5,000
Machines and Equipment 60,000
102,000

5.3 WORKING CAPITAL

ITEM JUNE JULY AUGUST

Electricity 5,000 5,000 3,000
Salaries 334,000 334,000 334,000
Stock 60,000 70,000 90,000
Advertisement 5,000 4,000 3,000
Telephone 1,000 1,000 1,000
Water 1,500 1,500 1,500
Maintainance 3,000 3,000 3,000
409,500 418,500 435,500
 5.4.1 PROJECTED CASH FLOW
YEAR ONE 2024
ITEM RY

MAY

JULY

SEPTEM

NOVEM
FEBRUA

MARCH

APRIL

AUGUST

ER
Y

DECEMB
JANUAR

JUNE

BER

OCTOBE

BER
Cash Balance 700,000 709,000 751,000 818,500 965,500 1,176,500
Cash Sales 100,000 150,000 200,000 700,000 800,000 850,000
Credit Sales
CASH OUT
FLOW
Salaries 334,000 334,000 334,000
Stock 60,000 70,000 90,000 100,000 120,000 150,000
Electricity 5,000 5,000 3,000 3,000 3,000 2,500
Transport 2,500 2,500 2,000 1,000 1,000 1,000
Advertisement 5,000 4,000 3,000 500 500 500
Tax 16,000 24,000 32,000 112,000 128,000 136,000
Water 1,500 1,500 1,500 1,500 1,500 1,500
Telephone 1,000 1,000 1,000 1,000 1,000 1,000
Total Expenses 91,000 108,000 132,500 553,000 589,000 626,500
NET PROFIT 9,000 42,000 67,000 147,000 211,000 223,500
 5.4.2 PROJECTED CASH FLOW YEAR TWO 2025
ITEM

AUGUST
JANUAR

OCTOBE
SEPTEM
FEBRUA

NOVEM
MARCH

APRIL

JUNE
MAY

JULY

BER

BER
RY

R
Y

Cash Balance 1,715,500 2,077,500 2,521,500 3,109,000 3,823,500 4,687,500 5,557,500 6,434,500 7,454,500 8,591,500
Cash Sales 1,100,000 1,300,000 1,500,000 1,700,000 1,900,000 2,100,000 2,300,000 2,700,000 3,800,000 4,000,000
Credit Sales 10,000 5000 15000 20000
CASH OUT FLOW
Salaries 334,000 334,000 334,000 334,000 334,000 334,000 350,000 350,000 350,000 350,000
Stock 250,000 300,000 320,000 350,000 370,000 500,000 600,000 800,000 1,000,000 1,500,000
Electricity 3,000 5,000 5,000 5,000 5,000 7,000 15,000 20,000 20,000 20,000
Transport 1,000 1,000 2,000 2,500 3,000 10,000 20,000 25,000 50,000 50,000
Advertisement 500 1,000 1,500 1,500 2,000 5,000 10,000 15,000 20,000 20,000
Tax 144,000 208,000 240,000 272,000 304,000 336,000 368,000 400,000 608,000 640,000
Water 1,500 3,000 5,000 5,000 5,000 10,000 10,000 15,000 20,000 20,000
Telephone 1,000 1,000 2,000 2,000 5,000 15,000 20,000 20,000 20,000 30,000
Maintenance 3,000 3,000 3,000 3,500 3,500 15,000 15,000 15,000 15,000 15,000
Total Expenses 738,000 856,000 912,500 985,500 1,036,500 1,232,000 1,423,000 1,680,000 2,615,000 2,645,000
NET PROFIT 362,000 444,000 587,500 714,500 863,500 870,000 877,000 1,020,000 1,137,000 1,355,000
5.4.3 PROJECTED CASH FLOW YEAR THREE
2026
ITEM

AUGUST
JANUAR

OCTOBE
SEPTEM
FEBRUA

NOVEM
MARCH

APRIL

JUNE
MAY

JULY

BER

BER
RY

R
Y

Cash Balance 13,228,500 15,378,500 17,866,500 20,673,500 23,673,500 27,081,500 34,176,500 41,091,50 48,366,500 57,661,50 80,731,500
0 0
Cash Sales 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 15,000,000 16,000,000 17,000,00 20,000,000 40,000,00 60,000,000
0 0
Credit Sales 2,000 1,000 2,000 2,000 20,000
CASH OUT FLOW
Salaries 350,000 350,000 350,000 350,000 350,000 360,000 360,000 360,000 360,000 360,000 360,000
Stock 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 6,000,000 6,500,000 7,000,000 10,000,00 20,000,000
0
Electricity 25,000 25,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 35,000 35,000
Transport 50,000 5,000 15,000 15,000 20,000 25,000 25,000 25,000 25,000 30,000 35,000
Rent 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Tax 880,000 1,040,000 1,280,000 1,440,000 1,600,000 2,400,000 2,560,000 2,720,000 3,200,000 6,400,000 9,600,000
Water 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Telephone 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 35,000 35,000
Maintenance 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 30,000 30,000
Total Expenses 3,850,000 4,512,000 5,266,000 5,927,000 6,592,000 7,905,000 9,085,000 9,725,000 10,705,000 16,930,00 30,105,000
0
NET PROFIT 2,150,000 2,488,000 2,734,000 3,073,000 3,408,000 7,095,000 6,915,000 7,275,000 9,295,000 23,070,00 29,895,000
0
5.5 PROFORMA INCOME STATEMENT

YEARS
ITEM 2024 2025 2026
Opening Stock 700,000 1,715,500 13,228,500
Add Sales 3,800,000 31,900,000 288,000,000
Less Purchases 790,000 9,690,000 107,000,000
GROSS PROFIT 3,710,000 23,925,500 194,228,500
EXPENSES 2,338,000
Salaries 2,338,000 4,104,000 4,290,000
Electricity 21,000 155,000 365,000
Transport 11,000 264,000 290,000
Advertisement 14,000 126,500
Tax 592,000 5,008,000 45,950,000
Telephone 7,000 176,000 375,000
Water 10,000 134,500 240,000
Rent 240,000
Maintenance 270,000
Total Expenses 2,993,000 9,968,000 52,020,000
NET PROFIT
Net profit 717,000 13,957,500 142,208,500
=GP-Expenses

5.6 BALANCE SHEET PROFORMA

YEARS
ITEM 2024 2025 2026
Fixed Assets
Machines 50,000 50,000 50,000
Equipments 3,400 3,400 3,400
Current Assets
Stock 790,000 9,690,000 107,000,000
Balance C/F 798,600 107,053,400
1,642,000
LIABILITIES
L.T.L
Capital 700,000 1,715,500 13,228,500
7,075,500
Balance c/f 2,667,900
9,743,400
Current Liabilities
Tax 592,000 5,008,000 45,950,000
Loan 350,000 350,000 350,000
1,642,000 9,743,400 59.528,500
47,524,900
107,053,400
5.7 CALCULATING BREAK EVEN POINT
B.E.P= Contribution Margin%
Total Fixed Cost
Contribution margin= Sales-Variable Cost
3,800,000-658,000
C.M= 3,142,000
Variable cost =Opening stock- Expenses
700,000- 42,000
=658,000
Contribution Margin%= Contribution margin*100
Sales
3,142,000*100
3800000
=82.7%
Break Even point= Contribution margin *100 82.7 *100
Total Fixed cost 2,338,000

=0.0035%
5.8 PROFITABILITY RATION
Gross profit Ration=Gross profit*100
Sales
3,710,000*100
3,800,000
3710
38 =97.6%
Net profit Ratio= Net profit *100
Sales
717,000*100
3,800,000
717
38 =18.9%
Return on Equity= Net profit *100
Capital
717,000*100
700,000 717
7 =102,428%
5.9 PROPOSED CAPITALIZATION

SOURCE AMOUNT
Family & 350,000
Friends

Loan from Welfare 350,000

700,000
APPENDICES KAKAMEGA ROAD
KISUMU
BUSINESS LOCATION BOYS

AGA KHAN HIGH

SCHOOL
HOSPITAL

ROUND ABOUT

BUSIA ROAD
NATIONAL

FILLING

STATION

TUNDA
ASSORTED

JUICE

PARLOUR

KENYATTA NAIROBI ROAD

STREET