JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES

PRESENTED BY: JOSEPH BARAZA

INDEX NUMBER: 7381010079

NAME OF THE INSTITUTION: UGUNJA TECHNICAL AND VOCATIONAL COLLEGE

SUPERVISOR: MR.MWANGI

SUBMITTED TO: KENYA NATIONAL EXAMINATION COUNCIL FOR AWARD

IN
CERTIFICATE IN PLUMBING AND TECHNOLOGY.

DATE: 7/11/24

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DECLARATION
I JOSEPH BARARAZA declare that the content of this business plan is my original work

Signature:

Date:

I MR. declare that this is the work of the student that has been done to the fullest
without any corruption.

Signature:

Date:

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DEDICATION
I dedicate this business plan to my father Mr. Joab Baraza for supporting me and giving
me an ample time which enabled me achieve my goals. I also dedicate it to my friends
and beloved teacher’s for their guidance

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ACKNOWLEDGEMENT
I acknowledge my supervisor Mr. Mwangi for the support and guidance given during the
preparation of this business plan .May the almighty god bless my course mates for
creating the conducive environment throughout the session of writing the business plan.

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Table of Contents
DECLARATION1
DEDICATION2
ACKNOWLEDGEMENT3
EXECUTIVE SUMMARY7
1.0 BUSINESS DESCRIPTION7
2.0 MARKETING PLAN7
3.0 ORGANIZATIONAL PLAN7
4.0 OPERATIONAL PLAN7
5.0 FINANCIAL PLAN7
CHAPTER ONE8
BUSINESS DESCRIPTION8
JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES8
1.1 BUSINESS NAME8
1.2 BUSINESS LOCATION AND ADDRESS8
1.3 FORM OF OWNERSHIP9
1.4 TYPE OF BUSINESS9
1.5 INDUSTRY9
1.6 PRODUCT AND SERVICES10
1.7 JUSTIFICATION OF OPPORTUNITY10
1.8 ENTRY AND GROWTH STRATEGY11
1.8.1 ENTRY STRATEGY11
1.8.2 GROWTH STRATEGY11
1.8.3 SWOT ANALYSIS11
CHAPTER TWO13
2.0 MARKETING PLAN13
2.1 CUSTOMER IDENTIFICATION13
2.1.1 Identifying our potential customers13

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 2.1.2 Identifying readily available customers13
2.2 COMPETITOR ANALYSIS13
2.3 MARKET SHARE DETERMINATION13
2.4 PROMOTION STRATEGY14
2.5 PRICING SRATEGY14
2.6 SALES TACTICS STRATEGY15
2.7 DISTRIBUTION STRATEGY15
2.8 CUSTOMER SERVICE STRATEGY15
CHAPTER THREE16
3.0 ORGANIZATION AND MANAGEMENT PLAN16
3.1 ORGANIZATION STRUCTURE16
3.2 MANAGEMENT TEAM17
3.2.1 Managing director17
3.2.2 Financial manager17
3.2.3 Procurement officer17
3.2.4 Information technology officer17
3.2.5 Accountant18
3.3 OTHER BUSINESS PERSONNEL18
3.3.1 Sales and marketing officer18
3.3.2Departmental heads18
3.4 RECRUITMENT, TRAINING AND PROMOTION19
3.4.1 Recruitment19
3.4.2 Training19
3.4.3 Promotion19
3.5 REMUNERATION AND INCENTIVES19
3.5.1 Remuneration19
3.5.2 Incentives20
3.6 LICENCES, PERMITS AND BY- LAWS20
3.6.1 Licenses20
3.6.2 Permit21
3.6.3 By- laws21
3.7 SUPPORT SERVICES21

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 3.7.1 Insurance services21
3.7.2 Banking services21
3.7.3 Power21
CHAPTER FOUR22
4.0 OPERATIONAL PLAN22
4.1 PRODUCTION PLAN22
4.2 PRODUCTION STRATEGY22
4.3 PRODUCTION PROCESS22
4.3.1 Discovery23
4.3.2 Design23
4.3.4 Development23
4.4 REGULATIONS AFFECTING PRODUCTION23
4.4.1 Health regulations23
4.4.2 Environmental regulations23
4.4.3 Safety23
4.4.5 Licenses and permits24
4.4.6 Local taxes24
CHAPTER FIVE25
5.0 FINANCIAL PLAN25
5.1 PRE-OPERATIONAL COST25
5.2 ESTIMATION OF WORKING CAPITAL25
5.2.1 Current assets25
5.2.1 Current liabilities26
5.3 PREPARATION OF PROFORMA INCOME STATEMENT27
5.3.1 PROFORMA INCOME STATEMENT27
5.3.2 BALANCE SHEET28
5.3.3 BREAK EVEN ANALYSIS28
5.4 CASH FLOW STATEMENT29
5.5 DESIRED FINANCING30

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EXECUTIVE SUMMARY
JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES is involved in offering
services on networking installation and internet we are also involved in site surveys and
computer network cabling to the people who may need our assistance. We are located
in Narok town along Narok- Mahimahiu road near Shepherds Hospital opposite Maasai
Mara University. Our target market will be residential areas, hospitals, learning
institutions and other small businesses. The advanced technology and rapid growth of
businesses has motivated me to locate my business in Narok town so as to compete
with similar businesses.

Our business shall be a partnership type of business and shall have three partners; also
the partners in this business will be Chief Executive Officers (CEO) and shall be the
owners of the business. We shall market our services through use of billboards, buying
ad space on a relevant website, creating a Facebook page and use of radios to capture
more customers. The business seeks to increase the operational scale by increasing the
number of workers after every year enabling us to increase the production service in
delivering to our customers. The capital for our business shall be 1,000, 000 shillings
from the net capital 182,000shillings to cater for pre-operational expenses this capital
shall be from own savings contribution from family members and loan from the bank.

The executive summary of this business plan has been organized under different
headings which include;

1.0 BUSINESS DESCRIPTION

In this chapter, we shall highlight the name of the business, location of the business,

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address of the business, type of the business, form of the business and the entry and
growth strategy which we shall use to enter the business. The name of the business JOE'S

INTERNET AND NETWORKING INSTALLATION SERVICES has been clearly defined and its
meaning.

2.0 MARKETING PLAN

In this chapter, we shall look at the customer identification, competitor analysis, market
share determination, promotion and advertising methods, pricing strategy, setting sales
target, sales tactics, distribution strategy and customer service strategy.

3.0 ORGANIZATIONAL PLAN

In this chapter, we shall look at organization structure, managers by qualification,
recruitment, training and promotion, other business personnel remuneration and
incentives, license and permits.

4.0 OPERATIONAL PLAN

In this chapter, we shall look at the product or service design development, production
process of the product, regulations affecting operations and operational timetable or
production schedule.

5.0 FINANCIAL PLAN

In this chapter, we shall look at the pre-operational costs, estimation of working capital,
preparation of proforma income statement and balance sheet, break even analysis,
determination of profitability ratios and potential risks.

CHAPTER ONE

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 BUSINESS DESCRIPTION

JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES

1.1 BUSINESS NAME
The proposed name of the business shall trade under JOE'S INTERNET AND NETWORKING
INSTALLATION SERVICES. JOE'S is the short form of my name Joseph hence it is easy to
read and master. The uniqueness of this name came as a way to attract potential
customers and neighboring environment, I wanted to venture in this business because it
is what I am well conversant with.

1.2 BUSINESS LOCATION AND ADDRESS

JOE'S INTERNET AND NETWORKING AND INSTALLATION SERVICES will be located in
Narok town along Narok-Mahimahiu road near Shepherds Hospital opposite Maasai
Mara University. The proposed business set up is surrounded by residential areas,
hospitals, schools and other small business. It is also the advanced technology and
rapid growth of businesses that has motivated me to locate my business so as to
compete with similar business. The advanced road network and security has encouraged
me to set up the business in Narok town.

The business shall have a physical address

JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES

P.O BOX 482-006,

NAROK

PHONE NUMBER: 0703824099

EMAIL:Josephbaraza18@gmail.com@gmail.com

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1.3 FORM OF OWNERSHIP.

JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES will be solely partnership

form of business. The partners will be classified according to the roles played and the
capital they contribute towards the business was chosen because of the following
advantages:

a) Consultation and sharing of ideas leads to better decision making.

b) It enables rising of more capital to maintain the business.

c) Unlike in proprietorship, in partnership worth is distributed among the partners.

1.4 TYPE OF BUSINESS.

The business JOE'S INTERNET AND NETWORKING AND INSTALLATION SERVICES is a

services industry offering services like;

a) Site surveys

b) Computer network cabling

c) Router installation and wireless routing

d) Wireless network installation and design

Our objectives in JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES will be as

follows;

a) To create a service based company whose goal is to exceed customer’s

expectations.

b) To become an established community destination by the first.

To improve the standard of the business

1.5 INDUSTRY.

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JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES being a service industry
business, we shall look at the legal requirements that govern this kind of industry.

JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES will make sure to acquire
license and permits to continue with its business through registration by the county
government of Narok. We shall also pay taxes to the county of Narok to enhance the
running smoothly of the business.

To run this business, we shall hire the following;

● Network engineers who are skilled in this business

● Supervisor to procure equipment and several operations

● One accountant to maintain financial records

● One receptionist

NOTE: All the partners of FAY’S INTERNET AND NETWORKING INSTALLATION

SERVICES will be Chief Executive Officers (CEOs)

1.6 PRODUCT AND SERVICES

Our products and services that we shall offer include;

● Site surveys

● Computer network cabling

● Router installation and wireless routing

● Wireless network installation and design

Before launching our internet and networking installation services, we were certain that
there is a wide range of both corporate and individual clients who cannot successfully
run their products without the services and support of internet and networking.

In view of that we shall create strategies that will enable us reach out to various
corporate organizations, government agencies and individuals who we knew can’t afford

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to do without our services. We shall conduct our market research and survey and we
shall ensure that we meet and surpass the expectations of our clients.

1.7 JUSTIFICATION OF OPPORTUNITY

My choice of the internet and networking installation services was guided by presence
of large potential customers and also the certainty that was a wide range of both
individual clients and corporate who cannot run their products without our services and
support.

The area shall enjoy good networking and reliable internet we shall work to ensure that
the network is always up and running with minimal downtime.in case of emergency, we
shall provide remote support via phone before our network engineers get to the people
who need our assistance.

1.8 ENTRY AND GROWTH STRATEGY

1.8.1 ENTRY STRATEGY

We shall set up the business at the stated location that is strategic to capture
customer’s attention. We shall define our business values and aim at making people feel
associated with our goals. We shall also start our hiring process to find the most
competent and skilled employees to suite our job description and also go for promoting
our service both online and advertising.

1.8.2 GROWTH STRATEGY

To grow, you should be in a place to identify your target customers doing this will
enable us to recognize their expectations, needs and services capabilities .we will
establish a strong web presence through searching our services on Google, we shall also
advertise our services through Google and Facebook.

1.8.3 SWOT ANALYSIS

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 STRENGTH

● We offer reliable and affordable services to our clients

● Competent and skilled workers.

● Strong relationship with suppliers

● Advanced technological skills in networking

WEAKNESSES

● Poor internet connection

● Slow response to customers’ needs

OPPORTUNITIES

● Favorable government rules and regulations

● Advanced technology and communication network.

THREATS

● Appearance of new competitors

● Change in customer need of our services.

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CHAPTER TWO
2.0 MARKETING PLAN

2.1 CUSTOMER IDENTIFICATION

JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES shall identify potential
customers by observing them from different places and through interaction with similar
businesses .Narok town is densely populated hence an opportunity to capture many
customers through competitive market strategies .our key points of focus shall be;

2.1.1 Identifying our potential customers

Our key objective is to ensure we reach the people who may need our services like
computer network cabling, router installation and wireless routing and wireless network
installation and design in our area before they go looking for such services themselves.

2.1.2 Identifying readily available customers

We shall target to know, reach out and win confidence of customers who are
already in need of the services we offer. This will be achieved through;

● Engagement via social media can help us identify available resources.

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 ● Advertisement of our services through local radio station programs where one
of our network engineers can visit the radio station to talk to listeners about our
services.

● Buy ad space on relevant website.

2.2 COMPETITOR ANALYSIS

Competition is very important tool in any business society. There are many business set
up offering something similar to ours and that are operational around Narok town. After
a thorough analysis we found out that our competitors offer their services at a very
expensive rate, they also don’t offer after sales services so far to be successful.

Our competitors in the market will be:

Lintech internet solution services

Digital data networking and Installation Company

2.3 MARKET SHARE DETERMINATION

Our market share is estimated to be around 60% . This is because we have not been in
the business for a long period but we foresee our business ruling over our competitors
because we shall offer unique services.

We shall look into the market coverage to increase our market share; we shall ensure we
cover the whole of Narok town and its environment and this we shall achieve by offering
quality services.

We shall continue to attract good percentage of population within Narok town to

expand the business by properly welcoming the customers and convincing them to
come back again next time.

2.4 PROMOTION STRATEGY

Due to kind of services we offer and the targeted groups, we will focus on promoting
our business in order to attract a large customer base. The promotion methods include;

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 1) Offering credit

2) After sales services

3) Customer care

We shall use modern methods of advertisement in order to increase the image of our
business; we shall focus on advertising techniques such as

1) Creating a Facebook page.

2) Take out an ad in local newspaper.

3) Buy ad space on a relevant website.

4) Use of radios.

5) Use of billboards.

2.5 PRICING SRATEGY

The proposed business will consider the pricing policy to remain the best to all the
participants involved in the market and utilize the profitable sales volume than
maximum sales volume .the business shall consider the cost of the production on the
income per capital labour involved and insurance, rents, salary license and permits

Our pricing strategy will be based on the demand and supply, we have also considered
to do a comparison with our competitors as it shall help us not to have a problem of
either overpricing or underpricing as other businesses do. We will also moderate our
pricing at the rates by the help of experts in pricing.

2.6 SALES TACTICS STRATEGY

We shall employ skilled and competent persons with the knowledge and skills needed
in working better than our competitors. We shall also employ sales person who will be
motivated by giving them good working conditions, involving them in decision making
and also giving them a chance to express their complaints before we act accordingly.
These shall help us to enjoy good sales over our competitors.

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2.7 DISTRIBUTION STRATEGY
JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES is based on offering good
services to our customers hence the only products are the hardware like cables and the
computer for network installation.as the business continues to grow , we shall ensure
to open branches in all major towns and places where our customers are .

We shall also strive to know the factors affecting demand and supply in the market to
determine the market share. The factors affecting demand and supply are;

1) Availability of goods and services

2) Labor

3) Cost

2.8 CUSTOMER SERVICE STRATEGY

We shall strive to ensure we have a proper and strong customer service in our business
set up. We shall offer quality services that are affordable to each and every one who
may be interested in our services. This will be achieved through offering credits,
aftersales services and transport cost; this will ensure a higher retention of customers.

CHAPTER THREE
3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 ORGANIZATION STRUCTURE

MANAGING DIRECTOR

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 FINANCIAL MANAGER

PROCUREMENT OFFICER

INFORMATION TECHNOLOGY OFFICER

ACCOUNTANT

SALES AND MARKETING OFFICER

DEPARTMENTAL HEADS

3.2 MANAGEMENT TEAM

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3.2.1 Managing director
a. Reports directly to the board of directors since the business is a partnership
type of business.

b. Manage all the operations made in the operation of the business

Qualification

a. A degree holder

b. Have at least five years’ experience in the same field

c. A Kenyan citizen

3.2.2 Financial manager

a. In charge of all the financial operations in the business

Qualification

a. Should be a holder of diploma or degree in accounting

b. Have an experience of at least 8-12 months

c. A Kenyan citizen

3.2.3 Procurement officer

a. Balancing the book

b. Procuring tenders

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 Qualification

a. A degree holder in procurement management

b. A Kenyan citizen

c. 27yrs and above

3.2.4 Information technology officer

a. Problem solving in the department

b. Handling computer related customer complaints

Qualification

a. A degree holder in information communication

b. A Kenyan citizen

3.2.5 Accountant
a. Giving financial plan of the business

b. Book keeping records

Qualification

a. A degree holder

b. A Kenyan citizen

c. 25years and above

3.3 OTHER BUSINESS PERSONNEL

We shall have other business personnel who will help in smooth running of the
business operation.

3.3.1 Sales and marketing officer

They shall perform the following roles;

a. Strong networking skills

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 b. Goal orientation

c. Effective communication skills and listening

Qualification

a. A Kenyan citizen of 25 years and above

b. Have an experience in marketing

3.3.2Departmental heads
i. Problem solving

ii. Team work skills

iii. Goal orientation

3.4 RECRUITMENT, TRAINING AND PROMOTION

3.4.1 Recruitment
JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES being a partnership

type of business, we shall consider some mode of like age, qualification and experience.
The correct qualification will be achieved through well-defined vacancies which will be
announced in radios and newspapers. We shall also engage services of casual personnel
as need arise

3.4.2 Training
Training opportunities will be offered to employees according to their departments once
every 4 months through benchmarking and seminars for capacity building .we shall also
engage in the field consent giving directives and instruction concerning operation to
the trainees

3.4.3 Promotion

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As a way of motivation the promotion will lead to growth and expansion of the
business. We shall look at the commitment to the duty of services the workers do and
also the discipline of the workers. Workers shall also be based on general attendance
for promotion

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3.5 REMUNERATION AND INCENTIVES

3.5.1 Remuneration
In the business we shall be rewarding our employees according to the services rendered
and every worker shall be entitled a remuneration packages according to how he or she
has provided his services to the company.

We shall offer attractive salaries and allowances to employees for their motivation and
retention which will enable them meet their daily needs and maintain their economic
standards of living

3.5.2 Incentives
We shall offer incentives to employees hence motivate and keep their work morale
leading to high efficiency and productivity. We shall also increase the salaries of
employees who will be working for extra hours depending on the extra hours he or she
has worked.

TITLE NO SALARY ALLOWAN ALLOWAN NSSF TOTAL

CE CE

CEO 2 60000 11000 600 300 143800

MANAGIN 1 40000 7000 600 300 47900

G
DIRECTOR

FINANCIAL 1 35000 6500 600 300 42400

MANAGER

PROCURE 1 30000 5600 600 300 36500

MENT
OFFICER

INFORMAT 1 25000 5400 600 300 31300

ION

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TECHNOL
OGY
OFFICER

ACCONTA 1 20000 5200 600 300 26100

NT

TOTAL 7 210000 40700 6600 3300 328000

3.6 LICENCES, PERMITS AND BY- LAWS

3.6.1 Licenses
We shall acquire a business license from the county government of Narok so that our
business runs smoothly without interruptions

The business license will cost around 20,000 shillings per annum, hence this cover for
our whole business under the description given by Narok county council

3.6.2 Permit
So as to manage our business effectively, we shall ensure to get actual permit from the
county government of Narok that would enable us to run our business without
interruptions from the authorities and all around

3.6.3 By- laws

In our business operation, we shall ensure that we operate in strict adherence to the
business by laws. We shall ensure to have a standard working hours and giving a leave to
the sick employees in the company .we shall also have a maternity leave of three
months with full salary payment

3.7 SUPPORT SERVICES

3.7.1 Insurance services

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To avoid suffering from various risks including theft and burglary, accident and fire
outbreaks, insurance cover for such risks shall be taken to ensure compensation for the
losses. We shall also take insurance cover for our employees

3.7.2 Banking services

The business shall apply for loans from Kenya commercial bank which is in Narok town
and also all the incomes will be deposited in the business bank account for security
purposes

3.7.3 Power
In the organization, power will be needed at higher rate to make our work easier and the
running of our day to day activities in the company.

CHAPTER FOUR
4.0 OPERATIONAL PLAN

4.1 PRODUCTION PLAN

In the production of our services, we shall require several equipment’s to help run our
business smoothly. They include; 6 laptops, 6 office chairs, 6 tables, cables and 4
desktops.

ITEM REQUIRED NUMBER COST SUPPLIER

Laptops 6 14000 Safety internet and

network provider

Office chairs 6 8000 Towers furniture’s

Tables 6 6000 Towers furniture’s

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Cables 5 12000 digital data
solutions company

desktops 4 80000 Linked internet

company

TOTAL 120000

4.2 PRODUCTION STRATEGY

We shall look at various advertising methods for example use of radios and newspapers
among others; we shall also check our machines regularly to help avoid unnecessary
delays in the business. Our business will be open as from 8:00am to 4:30 pm on
weekdays and 10:00am to 2:00 pm` on weekends

4.3 PRODUCTION PROCESS

The business shall go through the following process before reaching out to our
customers

4.3.1 Discovery
This is all about doing research; we shall take time and learn more about our business,
the goals we would like to achieve as partners in the business and the objectives we
have to attract more customers. We shall create a project evaluation that will be our
official proposal and statement of work involving delivery and examination of pre-
existing assets and branding.

4.3.2 Design
We shall design ideas to help expand our business; this shall be done by introducing
some authentication tools and message verification like passwords, tokens, smart cards
and biometrics to our customers and the people of Narok town

4.3.4 Development

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We shall develop the authentication tools and message verification in the company
after which we shall ensure that they work properly and effectively, we shall also
include the proxy servers, firewalls and the security monitoring and intrusion detection
tools to work effectively in the business

4.4 REGULATIONS AFFECTING PRODUCTION

The business shall observe some regulations during working hours and during the
installation of network to our customers

4.4.1 Health regulations

We shall ensure that the business acquires all the requirements needed by the public
health; we shall also invite health officers to visit the place regularly for more approvals

4.4.2 Environmental regulations

We shall ensure that the working environment for our employees is conducive and
customers and also effective for the business operation, we shall ensure that the
premise is always clean and tidy and thorough cleaning of the surrounding environment
for fresh breathe and air.

4.4.3 Safety
As partners we will ensure that there is a enough security to workers, customers and
property we shall install fire extinguishers to be used in case of fire outbreaks, and also
work hand in hand with the police for adequate security

4.4.5 Licenses and permits

We shall acquire business license from the county government of Narok so that our
business will run smoothly without any interruptions, we shall also get the permit to
run the business from the county that would enable us run our business effectively.

4.4.6 Local taxes

The local tax that we shall pay on interest is 3000shillings to the Kenya Revenue
Authority and the cooperate income tax will be 2000 shillings to the Kenya Revenue
Authority so as to avoid any interruptions with the government during business
operation.

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CHAPTER FIVE
5.0 FINANCIAL PLAN
This is the projection of cash flow of the enterprise that shall be prepared annually. The
proposed business will manage its finances through adequate and accurate preparation
of pre- operational cost statement, working statement cash flow statement and finance
management as illustrated below

5.1 PRE- OPERATIONAL COST

ITEM COST IN SHILLINGS

Renovation of business premises 35000

Market research 15000

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Installations 7000

Licensing requirements 75000

Marketing and promotion 10000

Legal fees 40000

TOTAL COST 182000

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5.2 ESTIMATION OF WORKING CAPITAL
In the fundamental of book keeping equation, working capital is: Current assets-current
liabilities

5.2.1 Current assets

These are the short term assets that their value can be recovered within a year.e.g

a. Cash at hand

b. Cash at bank

c. Closing stock (prepaid expenses)

d. Debtors/account receivable

5.2.1 Current liabilities

They are financial obligations that a business must meet within a year e.g.

a. Creditors/account payable

b. Outstanding expenses

c. Accrued expenses

d. Bank overdraft

e. Short term loans

Current assets shillings Shillings

Cash at hand 60000

Cash at bank 1600 000

Debtors 30000 2335000

Total 250000

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current liabilities shillings Shillings

Creditors 100000

Outstanding expenses 80000

Accrued expenses 180000

Bank overdraft 50000

Short term loans 20000 610000

Working capital= 2335000-610000 =1725000 shilling

5.3 PREPARATION OF PROFORMA INCOME STATEMENT

5.3.1 PROFORMA INCOME STATEMENT

DETAILS 2021 2022 2023

SALES 10100 127900 20000

0 0

Opening 90000 10000 32000

stock

purchases 52000 42500 50000

Closing 22000 30000 22000

stock

Gross profit 49000 85400 15000

0

Expenses

Loan 22000 20000 23000

repayment

Electricity 12000 12000 12000

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Salaries 24000 250000 25000
0 0

Furniture 10000

Transport 20000 20000 20000

Insurance 5000 5000 5000

Advertisem 6000 6000 6000

ent

Maintenanc 10000 10000 10000

e

Total 30500 323000 32600

0 0

Net profit 49000 85400 15000

before tax 0
(16% )

Net profit 41160 71736 12600

after tax 0

5.3.2 BALANCE SHEET

TH
PROFORMA BALANCE SHEETAS AT 5 OCTOBER 2024

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ASSEST SHILLINGS CAPITAL 250000
SHILLINGS
FIXED ASSEST
LIABILITIES
Machinery 650000
Long term 17000
Equipment 20000
Long term loan 20000
Furniture and fittings 101000
Insurance 205000
Premise 65000

TOTAL 836000

CURRENT ASSESTS
SHORT TERM LIABILITIES
Cash at bank 160000
Creditors 120000
Cash at hand 200000
Bank overdraft 10000
Debtor 126000
Tax 15000
TOTAL 486000
145000

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5.3.3 BREAK EVEN ANALYSIS
ITEMS DESCRIPTION YEAR1 YEAR2 YEAR3

MAINTENANCE 230000 120000 9000

INSURANCE 34000 34000 34000

ELECTRICITY 22000 22000 22000

LOAN PAYMENT 120000 120000 120000

PURCHASES 11900 44000 34000

ADVERTISEMENT 11000 10000 7000

TOTAL COST 428900 350000 226000

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5.4 CASH FLOW STATEMENT
JOE'S INTERNET AND NETWORKING INSTALLATION SERVICES
ST
PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER

PARTICUL JAN FEB MA APR MAY JUN JUL AUG SEP OCT NO DEC
ARS R V

Beginning 235 151 123 990 220 200 150 250 352 328 437
balance 00 00 00 00 00 00 00 00 00 80 75

Cash in 580 420 380 430 180 120 210 110 190 700 150 140
hand 00 00 00 00 00 00 00 00 00 0 00 00

Accounts 150 250 450 500 210 120 150 300 100 100 100 100
receivable 000 00 00 00 00 00 00 00 00 00 00 00

Add cash 120 100 150 250 450 240 110 280 300 180 100 500
sales 00 00 00 00 00 00 00 00 00 00 00 0

Total cash 222 100 113 130 183 700 670 840 720 702 678 601
receipts 000 500 100 300 00 00 00 00 00 00 80 75

Cash 120 100 150 125 250 350 520 110 235 345 234 357
payments 000 000 000 000 000 000 000 000 000 000 990 000

Purchases 150 200 160 - - - - - - - 530 -

000 00 000 00

creditors 430 210 450 320 456 520 110 120 310 450 220 150
00 00 000 000 00 00 00 00 00 00 00 000

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Salaries 150 150 150 150 150 150 150 150 150 150 150 150
000 000 000 000 000 000 000 000 000 000 000 000

Insurance 200 200 - - 200 - 200 - - 200 200 200

00 00 00 00 00 00 00

Electricity 120 110 100 150 350 100 100 100 100 100 100 100
00 00 00 00 00 00 00 00 00 00 00 00

Advertisin 100 100 900 100 100 100

g 00 00 0 0 0 0

Interest 210 220 150 175 520 - - - 250 120 - -

on loan 00 00 00 000 00 00 00

Maintenan 230 - - - 210 - - - - 210 170 150

ce 00 00 00 00 00

License 100 100 100 100 100 100 100 100 100 100 100 100
00 0 00 00 00 00 00 00 00 00 00 00

Total cash 530 355 945 795 583 257 730 293 462 613 516 713
payment 200 000 000 000 600 000 000 000 000 000 990 000

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5.5 DESIRED FINANCING
ITEM AMONT

PRE-OPERATIONAL COST 182000

WORKING CAPITAL 120000

FIXED ASSESTS 836000

TOTAL DESIRED FINANCING 1138000

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5.6 PROPOSED CAPITAL

OWNERS CONTRIBUTION 175000

BORROWED FUNDS 25000

LOANS 60000

TOTAL 260000

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