PLUMBING Business Plan
PLUMBING Business Plan
PLUMBING Business Plan
ADM NO : 39056
SERIES : MARCH
i
DECLARATION
This Business Plan is my original work and has not been presented for examinatioin any other
college/institution.
GODWALYN CHERONO
Signature_____________________________
Date__________________________________
SUPERVISOR
The Business Plan has been submitted with our approval as the college lecture
Name____________________________________
Signature_____________________________
Date__________________________________
ii
DEDICATION
This work is first dedicated to the Almighty God for his goodness, mercies and favour along this
journey. Secondly, I dedicate this work to my classmates.
iii
ACKNOWLEDGEMENT
I wish to sincerely thank the Almighty Father for His care, support and grace who have taken me
through this work.
To my lecturer Mr James Kilonzo you have surely been a strong pillar in my academic
endeavours since my Certificate; you have now successfully taken me through this course.
My deep appreciation also goes to my parents who were a source of extra strength throughout the
study. They never got tired of my absence or the many hours I spend on this project while their
concerns took second place
To all who contributed in one way or another, my colleagues at the College and the entire
fraternity of East Africa institute of Cerdifed studies main compus Nairobi God reward blessings
on them.
iv
v
TABLE OF CONTENTS
DECLARATION...........................................................................................................................ii
SUPERVISOR...............................................................................................................................ii
DEDICATION..............................................................................................................................iii
ACKNOWLEDGEMENT...........................................................................................................iv
TABLE OF CONTENTS..............................................................................................................v
CHAPTER ONE............................................................................................................................1
1.1 BUSINESS DESCRITION....................................................................................................1
1.2 BACKGROUND INFORMATION......................................................................................1
1.3 BUSINESS NAME................................................................................................................1
1.4 MISSION...............................................................................................................................1
1.5 VISION..................................................................................................................................1
1.6 BUSINESS LOCATION AND ADRESS.............................................................................2
BUSINESS LOCATION.............................................................................................................3
1.7 FORM OF OWNERSHIP......................................................................................................3
1.8 TYPE OF BUSINESS............................................................................................................4
1.9 PRODUCTION AND SERVICES........................................................................................4
1.10 JUSTIFICATION OF OPPORNITY...................................................................................5
1.10.2 Mark scope....................................................................................................................5
1.10.3 Improve beauty..............................................................................................................5
1.10.4 Good infrastructures......................................................................................................5
1.10.5 Water and electricity.....................................................................................................5
1.10.6 Security..........................................................................................................................6
1.11 INDUSTRY.........................................................................................................................6
1.12 ENTRY AND STRATEGY.................................................................................................6
CHAPTER TWO...........................................................................................................................7
2.0 MARKETING PLAN............................................................................................................7
2.1 CUSTOMER..........................................................................................................................7
2.1.1 Commercial customer......................................................................................................7
2.1.2 Domestic customer..........................................................................................................7
vi
2.1.3 Institution customer.........................................................................................................7
2.2 MARKET SHARE.................................................................................................................8
2.3 COMPETITION.....................................................................................................................8
Comparison of overall strength and weakness.........................................................................8
2.4 METHOD OF ADVERTISING AND PROMOTION..........................................................9
2.5 PRICING STRATEGY..........................................................................................................9
2.6 SALES TACTICS..................................................................................................................9
2.7 DISTRIBUTION STRATEGY..............................................................................................9
CHAPTER THREE.....................................................................................................................11
ORGANISATION AND MANAGEMENT PLAN..................................................................11
3.1 0RGANISATION STRUCTURE OF THE BUSINESS.....................................................11
i) General Manager.............................................................................................................12
0THER PERSONNEL...............................................................................................................12
ii) Accountant......................................................................................................................12
iii) Salespersons and marketers.........................................................................................13
iv) Driver...........................................................................................................................14
v) Security...........................................................................................................................14
vi) Messenger....................................................................................................................14
3.2RECRUITMENT TRAINING AND PROMOTION...........................................................15
i) Recruitment.......................................................................................................................15
ii) Training..............................................................................................................................15
iii) Promotion.........................................................................................................................15
3.3 REMUNERATION AND INCENTIVES...........................................................................15
3.5 LICENCES PERMITS AND BY-LAWS............................................................................16
BY LAW....................................................................................................................................16
3.6 SUPPORT SERVICES........................................................................................................16
i) Management advisors.....................................................................................................17
ii) Insurance.........................................................................................................................17
CHAPTER FOUR.......................................................................................................................18
4.0 0PERATIONAL/PRODUCTION PLAN............................................................................18
4.1 PRODUCT DESIGN AND DEVELOPMENT...................................................................18
vii
4.2 PRODUCTION FACILITY AND CAPACITY..................................................................18
i) Repair and maintenance..................................................................................................19
ii) Preventive maintenance..................................................................................................19
4.3 PRODUCTION STRATEGY..............................................................................................20
i) Monthly material requirement........................................................................................20
4.4 PRODUCTION PROCESS..................................................................................................20
i) Trading license-cap No -236...........................................................................................21
ii) Trade license from authority cap No-236.......................................................................21
iii) Employment act cap No-226.......................................................................................21
iv) Safety regulations........................................................................................................21
v) Labour regulation act –cap No.237.................................................................................21
vi) Public health act..........................................................................................................21
vii) By-laws........................................................................................................................22
CHAPTER FIVE.........................................................................................................................23
5.0 FINANCIAL PLAN.............................................................................................................23
5.1 PRE-OPERATING COST STATEMENT 2018.................................................................23
i) Lenses and Permits..........................................................................................................23
ii) Initial Advertising...........................................................................................................23
iii) Initial Transport...........................................................................................................23
iv) Consultancy legal fee..................................................................................................24
v) Initial labour payment.....................................................................................................24
5.2 WORKING CAPITAL REQUIRMENT FOR 2018...........................................................24
PROJECTED CASH FLOW STATEMENT FOR YEAR 2019 ‘00’.......................................25
PROJECTED CASH FLOW STATEMENT FOR YEAR 2021 ‘00’.......................................29
5.4 PROFORMA INCOME STATEMENT FOR THE ENDING 31 DEC 2021.....................30
5.5 PROFORMA BALANCE SHEET......................................................................................30
5.6 BREAK – EVEN ANALYSIS.............................................................................................30
1 YEAR..................................................................................................................................31
2 YEAR..................................................................................................................................31
3 YEAR..................................................................................................................................31
5.7 RATIO ANALYSIS.............................................................................................................32
viii
1) 1 YEAR..............................................................................................................................32
11) 2 year................................................................................................................................32
111) 3 YEAR..........................................................................................................................32
Return on Investment.................................................................................................................33
5.8 DESIRED FINANCING......................................................................................................33
5.9 PROPOSED CAPITALIZATION.......................................................................................33
ix
EXECUTIVE SUMMARY
Chapter One of this business plan comprises of business description i.e.; name, location and
address described the form of ownership and type of ownership. The production and services are
also described including the justification of this business opportunity. The industry, goals of
business, its entry into the market and the growth strategy have also been described.
In chapter two comprises of marketing plan, customer, competition and market share are
described. It also describes advertising and promotion. The pricing strategy and the sale tactics
have also been described; including the distribution strategy.
In chapter three explain about organisation and management plan which contains organizational
plan and management plan its key management personnel number and duties of each,
recruitment, training and promotion. The remuneration and incentive are also described
including the license, permits, by-laws and support services are also described.
In chapter four consists of production plans/operational plan contains the product design and
development, product facilities and capacity and also repair and maintenance. It also described
the production strategy, operational/production process including the government regulations
affecting operation.
i. Pre-operational cost
ii. Working capital requirement
iii. Cash flow statement
iv. Income statement
v. Balance sheet
vi. Break-even analysis
vii. Enterprises profitability ratio
viii. Desired financing
x
xi
CHAPTER ONE
1.4 MISSION
The business tends to provide quality products and development for self-reliance to sustain
customers and attract more customers. Ensure that customers are satisfied and happy with the
products offered by Auto City repair and Services.
1.5 VISION
To develop competitive that suits dynamic technologies trends for sustainable development of
new design of car spare parts.
1
1.6 BUSINESS LOCATION AND ADRESS
The business will be located at Parklands off Limuru road City park drive at Nairobi County.
The reason for choice of business location is that the business will make the following
ii). Provide good quality motors which will be durable and economical.
iii) Sponsor charitable events to help the unfortunate children such as orphans and those who are
physically disabled.
P.O.BOX 22021
NAIROBI
E-mail: Info@autoctyrepairandservices@yahoo.com
2
BUSINESS LOCATION
Muthaiga road
Getrudes Hospital
Parklands road
Limuru road
MUTHAIGA
3
The will also be a co-operative between the staff and the customers so as the run very well
without any disturb from workers. The owner decided to start a sole proprietor type of a business
since it is easy to manage and needs only few legal formalities.
The initiator will carry a sole proprietor business and the capital to start the business is scheduled
as follows;
The potential customers would be people work in the Nairobi central business and its outskirts
Indians and the people who are living around the area. The capital required to start the business
will be ksh 3,200,000
The table below shows how the business will operate throughout the week and public holidays.
4
1.9 PRODUCTION AND SERVICES
Auto city repair and services will be selling their products to its customers which will possess the
following characteristics,
High quality products: Auto city will ensure that its products are original and durable.
The products will also be durable and affordable that is the products will be offered at affordable
prices
Its products will also be authorised by The Kenya Bureau of Statistics (KEBS) to justify the
quality. The products will also be from the finest and best materials.
Parklands. Most people are using vehicles for transportation of goods and services from one
place to other and also for leisure. The business is also located in a conspicuous place in
Parklands state where it will be serving majority of its customers. The presence of super highway
1.10.1 Population
The best place for operating the business is where there is rapid population to come up with good
business you have to look where population is increasing.
5
1.10.5 Water and electricity
As the entrepreneur he will look where there is plenty of water for maintaining cleanliness and
where he can access electricity very easily use in security and the power to run the sewing
machines for making car spare parts .
1.10.6 Security
The owner of the business will look for a place which is more secure and where there police
station has been situated.
1.11 INDUSTRY
The business will be dealing with buying of materials and car spare parts. Modern technology
will be applied to this business such as use of high quality computer for designing car spare parts
that will meet the market demand.
Car businesses are the backbone of the country where many people depend for day to day life.
The government has carried other investors to invest on this industry by regulating product prices
and funding construction of new industries and reviving the collapsed once .The business will be
selling the car spare parts in retail price and other in wholesale.
BUSINESS GOALS
It will open new branches around the country; one will be opened in Nakuru town.
The opportunity in this town will be viable as the population surrounding the town
involved learning institutions and horticultural farming due its favourable weather
condition. It’s also a cosmopolitan city
Set up education programs which is aim in enlighten farmers on modern improved
personal protective equipment in there farming especially when they are transporting.
The business will take six months to run efficiently
6
The business will enter market by advertising its products through television, radio, magazines
and through activities such as sports by providing cars for carrying and distributing the uniforms
written his company. This will encourage more to visit the business true entrance growth.
CHAPTER TWO
2.1 CUSTOMER
The potential business customer of the proposed business will be people who are working in
Nairobi and it’s environ. The market area has a population of about 80,000 people. The owner of
the business will be purchasing the products for the business of different occupation hence of
different level, some are from high level others are from low level of income and some of these
customer are self-employed.
i. Shops
ii. Supermarkets
iii. Industries
The customer will mainly purchase the products at cash price and some products will be given on
credit on condition that he/she pay on a given rate and date. The sales number of car spare parts
will be ksh 10,000 pairs per month.
i. House holds
ii. Nurses
iii. Doctors
The number of car spare parts sold per month worth ksh10000
7
2.1.3 Institution customer
They include the social service centres e.g. schools, hospitals and companies. The sales amount
of car spare parts will be ksh250, 000 per month.
2.3 COMPETITION
There are generally two main competitors in the nearby market
General motors which sells its products at affordable prices, offers after sales services to its
customers, sells high quality products but has no skilled personnel and does not offer credit
facilities to its loyal customers.
Isuzu Kenya Car services has skilled personnel, offers credit facilities to its customers, hence
creating a market gap which Fair Deals intends to fill.
Employ qualified personnel, offer after sale services to its customers, offer credit facilities, sell
goods of high quality and offer their goods at affordable prices in order to fill the gap
8
2.4 METHOD OF ADVERTISING AND PROMOTION
The proposed business intends to promote its products through advertising. The reasons for
advertising are to create awareness of the existing products in the market to inform the public of
the new products in the market. The advertisements will be done through; Radios, Televisions,
posters, Billboards and newspapers. The total cost for advertisement is estimated to be around
25,000 shillings per month.
The prices of the products and services that Auto city services offers depend on the cost of feeds,
water, electricity and nearness to the market. The Auto city services business will offer 10%
quantity discount of the buying price if a customer buys in bulk. E.g. if the buying price is Ksh.
3000 a 10% quantity discount will be allowed.
Transport will be offered to those customers who have no transportation means if the purchase
products in bulk. In order to have good public relation the business will launch promotion to
regular customers by providing t-shirts which have the name of the company which will cost ksh,
2000
9
2.7 DISTRIBUTION STRATEGY
The business will be purchasing car spare parts and materials will be sold to the customers in
town. Some of the distribution method is very costly since many customers may purchase bulk
products which will require to be offered with transport. In order to overcome this problem the
business will give such customers 20% of the total transport cost. The business will be operating
under the following chain of distribution.
Producer - consumer
This is the shortest and direct route the consumer will enjoy all the services provided by the
producer
The business will sell the car spare parts in bulk to its customers; the customer will be at liberty
to subdivide the car spare parts in to pairs which will be sold to their consumers, the major mode
of transport which will be used by the business will be road transport means
10
CHAPTER THREE
Manager (proprietor)
Supervisor Accountant
Driver
Mechanics Marketers and Cashier
salespersons
11
i) General Manager
Required qualification for manager
Supervisor
Requirements
The incumbent applicant should possess a bachelor degree in business management from
a recognized institution.
Applicant should be between 25-35 years of age.
Should have at least three years working experience in the same field.
Supervise and coordinate all the activities pertaining the operation of the business.
Ensure smooth operations of day to day activities of the business.
Formulate and implement long term goals and objectives of the business.
0THER PERSONNEL
ii) Accountant
Required qualification for account clerk
12
ii. Age of 21 year and above.
iii. Should be computer literate.
iv. Good communication skills.
v. Salary will be ksh 21,000 per month.
Cashiers
Requirements
13
Duties and responsibilities
iv) Driver
Required qualification for a driver
Duties/responsibilities of a driver
v) Security
Required qualification for security
i. Provide security
ii. Perform other duties as order by the manager
vi) Messenger
Required qualification for messenger
14
ii. Should have a certificate of secondary education
iii. Good communication skill, English and Kiswahili
iv. Salary will be ksh 10,000 per month
i. Deliver of documents
ii. Delivering of information to the respective people.
i) Recruitment
The owner of the business will conduct on interview depending on the job which you have
specialized. Vacancies will be advertised within the district using posters, which will cost ksh.
3000 per month. The applicant will be shortlisted for an interview and those who will pass in
interview will be employed.
ii) Training
New employees will be guided by senior employees by showing the prices of available products
in the business. Senior employees will be sponsored by the manager to attend seminars
organization by various organizations and will cost ksh.2000 per day.
iii) Promotion
The promotion will be done through increasing of salaries to employee of which will motivate
them, hence making performances very high. The will also be done through adding the most
hand working employees and will be promoted according to their education background
experiences and merit.
15
Position No. of employees Gross salary (SSP)
Manager 1 20,000
Supervisor 1 15,000
Accountant 1 15,000
Driver 1 10,000
Cashiers 2 10,000
mechanics 5 2,000(daily)
BY LAW
It is a requirement for any running business to pay tax and the employee to have a certificate of
the product they are offering. This will enable the business to run smoothly without any
interruption.
Kahawa Branch
Nairobi
16
They will given low at low interest.
i) Management advisors
They will be from East Africa institute of cerdifed studies (ICS) and will cost ksh.6, 00 per
month.
Nairobi Branch
Nairobi
ii) Insurance
Stallion Insurance Company
Nairobi branch
Nairobi
17
CHAPTER FOUR
required. This includes machines, tools and equipment required in to product segment.
The skill man power will be required for the operation of the machines.
The following table shows some of the recurred machines and, equipment from the capacity and
production purposes required by the business
18
Item No. Uses Supplier Cost per unit Total cost
Weighing 4 For measuring the Karagi motor 5000 20,000
quantity required of the dealers.
motors.
Bubble wrap 20 Used for wrapping to Ex U motor 4000 80,000
motors before sale to spares
avoid any damage.
Gloves 30 Used to put on while karagi motor 600 18,000
checking to spares. dealers.
This will protect from
contact with germs.
Dust remover 50 Used for removing dust Ex U motor 200 10,000
to keep the motors look spares
new and classy each
day.
Item No. Uses Supplier Cost per unit Total cost
Weighing 4 For measuring the Karagi motor 5000 20,000
quantity required of the dealers.
motors.
Bubble wrap 20 Used for wrapping to Ex U motor 4000 80,000
motors before sale to spares
avoid any damage.
Gloves 30 Used to put on while karagi motor 600 18,000
checking to spares. dealers.
This will protect from
contact with germs.
Dust remover 50 Used for removing dust Ex U motor 200 10,000
to keep the motors look spares
new and classy each
day.
19
Reason for repair and maintenance
To minimize breakage
To ensure larger services of the equipment and machines
To establish a satisfactory condition for the workers
To minis the cost of maintenance and maximize profitability
The process of the car spare parts may be done at the industry, overseas or within the business
remises especially orders from customers for the wedding ceremonies, schools uniform
Also the business will buy and sell to customers ready available in their store
PRODUCER
SUPPLIER
WHOLESALER
RETAILER
CONSUMERS
20
REGULATIONS AFFECTING PRODUCTION
The employees are also entitled to use registration with the national hospital insurance fund and
national social security fund. It also entitles employees to be given a leaving and they should be
sacked without prior notice.
21
vii) By-laws
Weights and measures act
The business will make sure that all the products are sold at fair price correspond with the quality
as stated in the package and quality. This is in accordance to the manufacturer to bear this cost
and the body involved in those in the bureau of standards.
22
CHAPTER FIVE
Paid in advance,
23
iv) Consultancy legal fee
Figure obtained from lenses and permit document in chapter 3.5
24
PROJECTED CASH FLOW STATEMENT FOR YEAR 2019 ‘00’
PARTICUL SEPT TOTAL
JAN FEB MAR APR MAY JUNE JULY AUG OCT NOV DEC
ARS S
baldd 138,1 338,3 472,3 582,00 701,50 995,90 998,60 1,008,6 1,016,4 1,028,6 1,136,5 8,416,8
00 00 00 0 0 0 0 00 00 00 00 00
cash sales 250,0 256,0 263,0 269,0 279,00 287,00 296,00 306,00 312,00 321,00 332,00 342,00 3,513,0
00 00 00 00 0 0 0 0 0 0 0 0 00
capital 200,0 200,0 200,0 200,0 205,00 400,00 100,00 100,00 100,00 100,00 200,00 140,00 2,145,0
introduced 00 00 00 00 0 0 0 0 0 0 0 0 00
discount 80,00 14,00 12,00 10,00
received 0 0 0 0 12,000 5,000 8,000 8,000 4,800 4,000 4,400 4,500 166,700
credit sales 10,00
5,000 0 7,000 5,000 5,000 4,000 4,200 4,200 3,000 3,000 3,000 5,300 58,700
total inflows 463,0 618,1 820,3 956,3 1,083,0 1,397,5 1,404,1 1,416,8 1,428,4 1,444,4 1,568,0 1,628,3 14,228,
00 00 00 00 00 00 00 00 00 00 00 00 200
outflows -
purchases 120,0 110,0 170,0 200,0 206,00 223,50 225,00 230,00 230,00 234,60 249,00 246,00 2,444,1
00 00 00 00 0 0 0 0 0 0 0 0 00
electricity 3,400 3,500 3,500 3,400 3,400 3,800 3,500 3,400 3,500 3,500 3,500 3,500 41,900
insurance 30,00
0 30,000
Rent 40,00 40,00 40,00 40,00
0 0 0 0 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000
Water bill 4,000 3,800 4,500 4,400 4,600 5,800 6,000 4,800 8,000 8,200 8,400 8,400 70,900
Interest
Loan 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Salary 100,0 100,0 100,0 100,0 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 1,200,0
Wages 00 00 00 00 0 0 0 0 0 0 0 0 00
25
Advertiseme 25,00 20,00 27,50 24,00
nt 0 0 0 0 25,000 26,000 28,500 27,500 28,000 27,000 28,100 28,000 314,600
Total Cash 324,9 279,8 348,0 374,3 381,50 401,60 405,50 408,20 412,00 415,80 431,50 428,40 4,611,5
outflow 00 00 00 00 0 0 0 0 0 0 0 0 00
Balbd 138,1 338,3 472,3 582,0 701,50 995,90 998,60 1,008,6 1,016,4 1,028,6 1,136,5 1,119,9 9,536,7
00 00 00 00 0 0 0 00 00 00 00 00 00
26
PROJECTED CASH FLOW STATEMENT FOR YEAR 2020 ‘00’
PARTIC TOTA
JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
ULARS LS
baldd 1,199,9 1,421, 1,597, 1,721, 1,817,6 2,030, 2,185, 2,425, 2,746,4 3,041,6 3,360, 3,678, 27,227,
00 800 700 300 00 600 800 900 00 00 600 100 300
cash sales 330,00 339,0 347,0 356,00 364,00 369,00 376,00 387,00 409,00 416,00 422,00 430,00 4,545,0
0 00 00 0 0 0 0 0 0 0 0 0 00
capital
introduce 300,00 200,0 200,0 180,00 200,00 201,00 200,00 212,00 200,00 200,00 210,00 100,00 2,403,0
d 0 00 00 0 0 0 0 0 0 0 0 0 00
discount
received 10,000 8,000 5,000 4,000 3,000 6,000 7,000 6,500 6,000 5,000 6,000 4,000 70,500
credit
sales 8,000 7,500 4,000 5,000 3,000 4,000 3,400 5,000 3,000 5,500 5,000 4,000 57,400
total 1,847,9 1,976, 2,153, 2,266, 2,387,6 2,610, 2,772, 3,036, 3,364,4 3,668,1 4,001, 4,216, 34,300,
inflows 00 300 700 300 00 600 200 400 00 00 100 100 700
outflows -
purchases 215,60 196,1 246,1 258,70 166,00 235,50 157,50 103,00 133,00 123,00 133,00 142,00 2,109,5
0 00 00 0 0 0 0 0 0 0 0 0 00
electricity 3,500 4,000 4,800 5,000 5,300 6,000 4,500 5,000 6,500 6,000 6,500 6,700 63,800
insurance 30,000 30,000
Rent 50,00 50,00 600,00
50,000 0 0 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 0
Water bill 4,500 5,000 5,000 6,000 6,500 7,000 6,000 6,000 7,000 6,000 6,500 7,000 72,500
Interest
Loan 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Salary 100,00 100,0 100,0 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 1,200,0
Wages 0 00 00 0 0 0 0 0 0 0 0 0 00
Advertise 21,00 24,00 286,40
ment 20,000 0 0 26,500 27,000 23,800 25,800 23,500 23,800 20,000 25,000 26,000 0
Total 426,10 378,6 432,4 448,70 357,00 424,80 346,80 290,00 322,80 307,50 323,50 3,344, 7,402,4
Cash 0 00 00 0 0 0 0 0 0 0 0 200 00
27
outflow
Balbd 1,421,8 1,597, 1,721, 1,817, 2,030,6 2,185, 2,425, 2,746, 3,041,6 3,360,6 3,678, 3,881, 29,909,
00 800 300 600 00 800 900 400 00 00 100 900 400
28
PROJECTED CASH FLOW STATEMENT FOR YEAR 2021 ‘00’
particulars JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTA
E Y L
Inflows
Cash sales 1100 1105 1110 1320 10,000 1125 1130 1135 114 1145 1150 1155 103910
0 0 0 0 0 0 0 0 0 0 0 0
Debtors 100 100 100 1125 100 100 100 100 100 100 100 100 12350
0
TOTAL CASH 1110 1115 1120 1115 11300 1135 1140 1145 115 1155 1160 1165 126050
0 0 0 0 0 0 0 0 0 0 0
OUTFLOWS
Production and 3100 3110 3150 3180 3200 3220 3240 3200 320 3220 3100 3110 38030
overheads 0
Repair and 200 200 200 200 200 200 200 200 200 200 200 200 2400
Maintenance
Promotional 100 100 100 120 120 120 110 110 110 100 100 100 1290
Gross wages 900 900 900 900 900 900 900 900 900 900 900 900 10800
Location and 2200 2200 2230 2250 2280 2300 2200 2200 320 2250 2250 2250 27810
Administration 0
Loan payment 120 120 120 120 120 120 120 120 120 120 120 120 1440
Owners withdraw 110 110 110 110 110 110 110 110 110 110 110 110 1320
Others expense 450 450 450 400 400 400 400 400 400 400 400 400 4950
TOTAL OUTFLOW 7181 7210 7260 7280 7330 7370 7180 7240 724 7300 7180 7190 86961
0
Net inflow 3920 3940 3940 3970 3970 3980 4220 4210 426 4250 4450 4460 49570
0
Opening balance 380 300 350 350 300 370 250 300 310 320 300 350 3880
Closing balance 300 350 350 300 270 250 300 310 320 300 350 380 3780
Total cash 4000 3890 3940 4020 4000 4000 4170 4200 425 4270 4390 4430 49560
0
29
5.4 PROFORMA INCOME STATEMENT FOR THE ENDING 31 DEC 2021
Item 2020 2021
Sales 1,432,000 1,500,000
-cost of sales 200,000 250,000
Gross profit c/d 232,000 250,000
Gross profit b/d
Discount received 5,000 60,000
1,237,000 310,000
2,370,000
Revenue = Expenditure
30
Income
1,014,000 = 1.88
540,000
1 YEAR
Contribution = sale – variable cost
=216,500 – 29,600
=186,900
=186,900\216,500*100
=86.328%
=19,963.685
2 YEAR
Contribution = sales – variable cost
=30,000 - 3000
=27,000
=27,000\30,000*100
=90%
=19,149.167
3 YEAR
Contribution = sales – variable cost
= 350,000-45,000
=305000
31
=305,000\350,000*100
=87.143%
=1,723,420\87.143%
=19,776.918
1) 1 YEAR
Gross profit % = Gross profit\Total sales×100
= 196,00\2,165,00×100
=90.762%
11) 2 year
Gross profit = 2, 800, 00\300, 00×100
=93.333%
111) 3 YEAR
Gross profit = 300,00\3,500,00×100
= 85,714%
1 Year = 126,750\600,00×100
=21,125%
2 Year =724,125\600,00×100
=120.688%
3 Year =1,302,750\600,00×100
=217.125%
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Return on Investment
= Net profit after tax\Total investment*100
1 Year =126,750\900,00×100
=14,083%
2 Year =724,125\995,650×100
=72.729%
3 Year =1,302,750\1,073,054×100
=121.405%
ITEM Amount
Pre-operational cost 290,000
Working capital 500,000
Fixed assets 920,000
Total Desired Financing 1,710,000
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