BUSINESS PLAN

FIRE SPOT CATERING SERVICE

NAME: JESSICA ADHIAMBO

REG NO:
INSTITUTION:
COURSE NAME:
COURSE NUMBER:
SUPERVISOR’S NAME:
DATE:
 DECLARATION
This Business Plan assignment is the candidate’s original work and has not been presented for
any award in any other institution. No part of this business plan may be reproduced without
prior authority of the Candidate.
Name: Jessica Adhiambo
REG NO:
Signature………………………………. Date ……………………………
I certify that the above mentioned students carried out the work detailed in this report under my
supervision.
Signature……………………………… Date…………………………….
Supervisor’s Name:……………………………………………………….

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 DEDICATION
First and foremost, I dedicate this business plan work to The Almighty God who has been there
right from the beginning to this very point. Special dedication also goes to my parents, my
friends and the entire family. They have been a great source of inspiration all through.

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 ACKNOWLEDGEMENTS
First of all, I’m grateful to The Almighty God for enabling me to successfully complete
this business plan assignment. Secondly, I would like to express my sincere gratitude to
my supervisor for the continuous support of my project, for his motivation, patience,
enthusiasm, and immense knowledge. His guidance helped me throughout the assignment
period.
I’m also grateful to my dear parents for their love, prayers, and continuous support when
drafting this business plan.

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 EXECUTIVE SUMMARY
The Fire Spot Catering Service was founded in 2022 and aims to be the premier catering joint
option for all customers visiting the city. The business is located a distance of 1.5km from the
Central Business Districts (CBD), Nakuru County.
The enterprise will provides a one-of-a-kind catering service experience that offers customers the
opportunity to experience delicious fast foods and drinks. Fire Spot Catering Service will ensure
that the customers get the best services out of their money.
Currently the business is at planning phase. Future plans include expanding the territories to
reach out to more customer, forming partnership with well-established catering companies, and
hiring more employees. These expectations can hopefully be established by the end of 2024.
People working in the city are the primary target market. This is because of nearness to the
business premise. Also delivery of products and services will be efficient and faster within the
city than the outskirts regions. The business will face both direct and indirect stiff competitions
as the market is already in existence. Some of the risks associated with this business are high
taxes, rapid inflation, and seasonality of the raw materials.
The management team is led by Chief Executive Officer Jessica Adhiambo who initially
developed the idea early in 2022 after successfully carrying out research around the city. The
business will have 13 others employees who will work hand in hand with the CEO to meet the
goals, mission, and vision of Fire Spot Catering Service.
The business is seeking Ksh 3000000 which will enable it to formalize the premises and
operations by capitalizing on infrastructures such as kitchen utensils, furniture, two vehicles,
protective gear, establishing a large marketing campaign, and hiring 13 full-time staff members.

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 Table of Contents
DECLARATION.............................................................................................................................ii
DEDICATION...............................................................................................................................iii
ACKNOWLEDGEMENTS............................................................................................................iv
EXECUTIVE SUMMARY.............................................................................................................v
LIST OF TABLES..........................................................................................................................ix
LISTS OF FIGURES.......................................................................................................................x
ABBREVIATIONS........................................................................................................................xi
CHAPTER ONE: BUSINESS DESCRIPTION..............................................................................1
1.1 Business Name and Address..............................................................................................................1
1.2 Location and Address.........................................................................................................................1
1.3 Form of Ownership............................................................................................................................1
1.4 Type of Business................................................................................................................................1
1.5 Product and Service...........................................................................................................................1
1.6 Justification of Opportunity...............................................................................................................2
1.7 Industry.............................................................................................................................................2
1.8 Business Goals and Objectives...........................................................................................................2
1.8.1 Short Term Goals........................................................................................................................2
1.8.2 Long Term Goals.........................................................................................................................2
1.8.3 Personal Goals............................................................................................................................2
1.9 Entry and Growth and Objectives......................................................................................................3
1.9.1 Swot Analysis..............................................................................................................................3
CHAPTER 2: MARKETING PLAN...............................................................................................4
2.1 Customers..........................................................................................................................................4
2.2 Market Share/ Market Size................................................................................................................4
2.2.1 The Following Pie Chart Shows the Market Share......................................................................4
2.3 Competition Analysis.........................................................................................................................4
2.4 Promotion Strategy............................................................................................................................6
2.5 Pricing Strategy..................................................................................................................................6
2.6 Sales Strategy....................................................................................................................................7
2.7 Distribution Strategy..........................................................................................................................7
CHAPTER THREE: ORGANIZATIONAL PLAN........................................................................8

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 3.1 Organizational Structure....................................................................................................................8
3.2 Managers and Qualifications.............................................................................................................8
3.3 Personnel; Number and Duties........................................................................................................10
3.4 Recruitment, Training and Promotion.............................................................................................10
3.5 Remuneration and Incentives..........................................................................................................10
3.6 Licenses, Permits and By-laws.........................................................................................................12
3.7 Support Services..............................................................................................................................12
CHAPTER FOUR: PRODUCTION/OPERATION PLAN..........................................................14
4.1 Production or Operational Facilities and Capacity...........................................................................14
4.1.1 Facility and Capacity.................................................................................................................14
Table 4.1: Facility and Capacity..............................................................................................................14
4.1.2 Office Layout.............................................................................................................................15
4.2 Production or Service Strategy........................................................................................................15
4.3 Production Process..........................................................................................................................15
4.4 Regulations Affecting Operations....................................................................................................15
CHAPTER FIVE: FINANCIAL PLAN........................................................................................16
5.1 Pre-operational Costs......................................................................................................................16
5.2 Estimation of Working Capital.........................................................................................................16
5.3 Preparation of Cash Flow Projections..............................................................................................17
5.4 Preparation of Proforma Income Statements and Balance Sheet...................................................18
5.5 Calculation of Break-Even Point/Analysis (BEP)...............................................................................19
5.6 Calculation of Profitability Ratios (PR).............................................................................................19
5.7 Desired Financing............................................................................................................................19
5.8 Proposed Capitalization...................................................................................................................19
References......................................................................................................................................20
Appendices....................................................................................................................................21

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 LIST OF TABLES
Table 2.1: Competition Analysis
Table 3.2: Remuneration and Incentives
Table 4.1: Facility and Capacity
Table 5.1: Pre-operational Costs
Table 5.2: Income Statements
Table 5.3: Proposed Capitalization

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 LISTS OF FIGURES
Figure 2: Market Share
Figure 2.1: Competition Analysis
Figure 3: Organizational Chart

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 ABBREVIATIONS
FSCS Fire Spot Catering Service
RoC Return on Capital
RoA Return on Assets
GP Gross Profit
NP Net Profit
BEP Break Even Point
CA Competitive Analysis
CEO Chief Executive Officer

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 CHAPTER ONE: BUSINESS DESCRIPTION
1.1 Business Name and Address
The proposed business name will be Fire Spot Catering Service. The name fire spot name means
“a bowl shaped hollow in the earth partly filled with ashes apparently used as a fireplace. The
company will also offer outside catering to our clients. The company owner is Ms. Jessica
Adhiambo, currently a student at Rift Valley Institute of Business studies. The capital funding
the business will be generated from my personal savings, friends, relatives and loan from banks.
1.1 a. Business Slogan
 Simply fresh. Simply Catered

1.2 Location and Address

The company will be located in a serene environment near Mililani Apartments, 1.5 km from
Nakuru town. P.O Box 20220-20100, Tel +254756456342/+254773475698, Email contact:
[email protected].
Nyahururu
State House Naivas Shell
Station Road

Kunste
Nakuru
Town Nakuru-Nairobi Highway fly-over

FSCS

Nakuru-Kisumu highway

1.3 Form of Ownership

The business will be run through Sole proprietorship. Sole proprietorship is when an
individual owner is also personally responsible for all debts and liabilities incurred by the
business. In this type of business there is no specific business tax paid by the company. The
owner pays taxes on income from the business as part of his or her personal income tax
payments.

1
Disadvantage of this kind of ownership however include, the bulk of decision making power is
accredited to the owner and the fact that prosecution of the sole proprietor personally making
him liable to any debts and obligations of the business.
1.4 Type of Business
We deal with food production and service, we will only start with one outlet but I was targeting
three before the third year ends. The catering business has a market and there are many Events of
people I.e. Birthdays, Weddings, Graduations, and Funerals etc.
1.5 Product and Service
The business will deal with food products such as junk foods, drinks, fried chicken, fried
potatoes, and fish among others. Catering services such as cooking, serving customers,
packaging, and delivering among others will also be offered.
Our catering success tips is mainly to:
 To make delicious food
 We ensure excellent customer service
 Hone your ability to organize events
 Keep the attires professional
 To offer competitive pricing
 Keep profits high without sacrificing service
 To develop excellent management skills
The business will offer high quality products and services to its customers. Fire Spot Catering
Service will operate on “Customer is the king!” philosophy. Customers will enjoy the business’
products and services since the purchasing prices will be affordable as well as pocket friendly.
1.6 Justification of Opportunity
The owner of The Fire Spot Catering Service believes that the business will be successful
because of the following reasons:
i. The location of the business is strategic thus easily accessible. Fire Spot Catering Service
will be located adjacent to the City Centre.
ii. Another reason is the services of Fire Spot offers a well-placed niche within the city
Centre.
The business idea is to help solve the problem of accommodation when people go camping, we
offer accommodation at lower prices and there is comfortability in our tents. The camping tents
are not a thing many people are into as a business that is why I saw the business gap and decided
to take it and fill it. I want to make sure I have exploited all the available resources.
1.7 Industry
The fire spot catering service is centered in food processing industry with many firms ranging in
sizes depending on the areas of specialization. The size of the industry of the intended business
in the areas is small. This can be illustrated with the abundant untapped resources by the few

2
established firms. The average number of employees in the company ranges from two to twenty
people.
1.8 Business Goals and Objectives
1.8.1 Short Term Goals
 To have enough business cards in order to distribute them to prospect clients
 The need to have business account from the bank
 To establish through the internet that is, Facebook, Instagram, Emails, Twitter and
LinkedIn
1.8.2 Long Term Goals
 The need to own a company and have a license
 To explore our work by serving our clients top notch service
 To create awareness by opening branches in whole of Kenya

Mission: To promote and enhance the values and ideas of better quality food products and
catering services.
Vision: To be the best producers of fast foods and drinks in the next one year.
1.8.3 Personal Goals
 To be the Chief Executive Officer (CEO) of Fire Spot Catering Service.
1.9 Entry and Growth and Objectives
One month prior to the operation our services will be advertised and customers will be well
informed of the intended launch of the product into the market. Posters will be placed on
signboards in town centers and pathways. Once the business is in operation we will give
discounts to attract customers then the customers will help spread the word and with time we will
expand our business.
1.9.1 Swot Analysis
This type of analysis is carried out by an entrepreneur to evaluate the strengths, weakness,
opportunity, and threats in the business.
Strengths
i. Proper management
ii. Well equipped.
iii. Good customer service.
iv. Good strategic location of the business.
Weakness
i. Insufficient amount of own raw materials.
ii. Noise pollution.
iii. Lack of own premises.
iv. Stiff competition from other businesses.

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 CHAPTER 2: MARKETING PLAN
2.1 Customers
The Fire Spot Catering Services will serve customers working in the city and also outskirts
Nakuru City. Approximately 150 customers are expected to visit the premise every business day.
The business will also offer home delivery services where customers will be able to make a food
order online i.e. from the comfort of their seats.
2.2 Market Share/ Market Size
Based on the survey conducted on the set up location of the business (City Centre), the market
size will be relatively normal. About 150-250 customers are expected per day.
2.2.1 The Following Pie Chart Shows the Market Share

Market Share Scheme

FSCS Konde Joint Mama Pima Café Annita Fast Foods

Figure 1: Market Share

2.3 Competition Analysis

Fire Spot Catering Service will face a variety of both direct and in-direct competition ranging
from other catering joints, hotels, vendors. To ensure that it come out the best, the business will
offer high quality products and services at affordable prices. Additional services such as free
home delivery will attract more customers putting the business at the top of the competition
ladder. FSCS three major competitors are Konde Joint, Mama Pima Café, and Annita Fast Foods.

4
 C.A chart
90
80

Product/Services Offered
70
60
50
40
30
20
10
0
1
Business Name

FSCS Konde Joint Mama Pima Café Annita Fast Foods

5
 Table 2.1: Competition Analysis
COMPETITOR STRENGTH WEAKNESS
Konde Joint Good customer service. High prices.
Reliable labour. Poor transport.

Mama Pima Cafe Good experience. High prices.

Good marketing strategy. Poor service.

Annita Fast Foods Large capital base. Inadequate products.

Relevant experience. Poor customer service.
Strategic location.

Proper identification and analysis of the competitors’ weaknesses would help Fire Spot Catering
Services be the best in business. This is because it will be stronger in performance than its
worthy competitors.
2.4 Promotion Strategy
i. Through Exhibitions. Fire Spot Catering Service will market its brand through the Fast
Foods exhibitions.
ii. Offering home delivery services.
iii. Ferrying interested groups to the business premises at zero charges.
iv. Offering discounts in order to attract more customers.
v. Erection of billboards in the city, online platforms such as the business website, twitter,
Facebook among others.
2.5 Pricing Strategy
A simple pricing structure is crucial to the success of the service. Suggested unit costs are
outlined below:
Selling Price
 Fried potatoes Ksh. 300
 Soft drink Ksh. 100
 Junks such as smokies @ Ksh. 30, Kebab @ Ksh. 70 etc.
The average sale is anticipated to be Ksh. 400 per customer. The Ksh. 400 can be broken down
as follows:
 Ksh. 130 food cost
 Ksh. 30 consumables
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  Ksh. 240 to cover overheads, staffing, and profit
The business will offer credit facilities to worthy customers.
Cash discounts will also be offered to customers who settle payments in time.
2.6 Sales Strategy
The sale strategy is very essential in the management and performance of Fire Spot Catering
Service. Therefore, sales services will be conducted through advertisement in social media,
erection of billboards at strategic points. Cash at hand, Credit cards and till numbers will be used
to facilitate money transfer.
2.7 Distribution Strategy
The business will have a vehicle that will be used to deliver products to customers’ homes. No
fee will be charged upon transportation. Free transportation of products from the business
premise to the customer’s doorstep will help save the customer’s money thus attracting many
more customers.

7
 CHAPTER THREE: ORGANIZATIONAL PLAN
3.1 Organizational Structure
Fire Spot Catering Service will comprise of the founder, who is the owner of the business, and a
few number of employees. Only qualified and competent applicants will be hired for the job.
Skilled personnel will ensure work is efficiently executed and the business’ goals, mission, and
vision are attained. Therefore, the business structure will be made up of;
 Chief Executive Officer
 Cashier
 Chefs
 Subordinate staff such as cleaners and transporters
Chief Executive
Officer (CEO)

Cashier Catering Cleaners

Manager

Transporters Chefs and Receptionists and

waiters sales agents

Figure 3: Organizational Chart

3.2 Managers and Qualifications
Chief Executive Officer
Responsibilities
 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,
counselling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions; providing educational
opportunities.
 Offers the direction for the business.
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Mandated to sign checks and documents on behalf of the company.
 Analyzes and also evaluates success/failure of the business.

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Catering Manager
Responsibilities and Duties
 Manages the food and drink provision for an event or function.
 Helps in drafting menus in consultation with chefs.
 Organize, lead and motivate the catering staff.
 Supervise catering and waiting team at events.
 Offer recruitment and training to both permanent and casual staff.
Waiters
Responsibilities and Duties
 Receive guests and taking food and drink orders.
 Deliver food from the kitchen to the customers.
 Ensure the food order is prepared correctly by the kitchen team and looks presentable for
the customers.
 Pay attention to the needs of customers in the dining area.

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3.3 Personnel; Number and Duties
Receptionist
Responsibilities
 Identifies, prioritizes, and reaches out to new partners, and business opportunities.
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of development
projects.
 Documents all customer contact and information.
 Represents the company in strategic meetings.
 Helps to increase sales and growth for the company.
 Writes winning proposal documents, negotiate fees and rates in line with business policy.
 Responsible for handling business research, marker surveys and feasibility studies for clients.
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients.
 Develops, executes and evaluates new plans for expanding increase sales.
Chefs
Responsibilities
 Study each recipe and gather all necessary ingredients.
 Set up the kitchen with cooking utensils and equipment like pans and knives.
 Inform the wait staff/team about daily specials.
 Cook food in a timely manner.
3.4 Recruitment, Training and Promotion
Advanced and modern channels of advertising will be used in the recruitment of the new
employees. Social media such as Linked In, twitter, Facebook, WhatsApp Business, TV,
Instagram, Telegram, and Radios will be frequently used to air out the available job positions in
the Fire Spot Catering Service. The shortlisted applicants will go through a three stages of
interview in order to get the most suited for the job vacancies. These three stages include
aptitude test, group work test, and oral test. Training process will be carried out both physically
and virtually. Once accepted as a new employee in Fire Spot Catering Service, you will be taken
through the entire process of orientation. Further training will be offered during the working
period. Promotion of the employees will be performance-based as measured by the key
performance indicators on the particular job description.

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3.5 Remuneration and Incentives
The breakdown of the monthly salaries of the workers for the first year of operation will be as
indicated in table 3.2 in the appendices section.
In addition to their remuneration the employees will be registered under a medical scheme, given
annual leaves and sick offs. There will be 10 O’clock and 3 P.m. tea for all employees. The
subordinate staff will also be provided with proper gears and attires when performing their
duties. The salespersons will earn an additional commission for surpassed sales targets. The
managers will occasionally offer incentives to top three most performing employees.

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3.6 Licenses, Permits and By-laws
Fire Spot Catering Service will get its operational license from the County government of
Nakuru. This permit will allow the business to operate smoothly without hindrances from city
council. This license will be renewed annually at a cost of Kshs. 5000.
The business will adhere to the laws of Kenya as stipulated in the Constitution and the Labour
Act. The Occupational Health and Safety of the workers will also be put in check through the
provision of the protective gears.
3.7 Support Services
Cashier
Responsibilities and Duties
 Performs cash management, general ledger accounting, and financial reporting.
 Handles all financial transactions for the organization and also acts as internal auditor for the
organization.
 Responsible for preparing financial reports, budgets, and financial statements for the
organization.
 Provides management with financial analyses, development budgets, and accounting reports;
analyses financial feasibility for the most complex proposed projects.
 Also, cashier is responsible for administering payrolls, financial forecasting, and risks analysis.
Sales Agents
 Manages administrative duties assigned by the human resources and admin manager in an
effective and timely manner.
 Come up with suggestions and encourage purchase of products.
 Ensures that all contacts with clients (e-mail, calls or SMS) provides the client with a
personalized customer service experience of the highest level.
 Consistently stays abreast of any new information on the organizations’ products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to customers when they
make enquiries.
 Identifies the needs of the customers, recommend, select and help locate the right merchandise,
and also describes a product’s features and benefits.
 Offers information about warranties, manufacturing specifications, care and maintenance of
merchandise and delivery options.
 Uses every opportunity for example through interaction with customers on the telephone to
build client’s interest in the company’s products and services.

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Cleaners
 Responsible for cleaning the business premise at all times.
 Cleans both the interior and exterior of the business facility.
 Ensures that toiletries and supplies don’t run out of stock.
 Handles any other duty as assigned by the business manager.

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 CHAPTER FOUR: PRODUCTION/OPERATION PLAN
4.1 Production or Operational Facilities and Capacity
4.1.1 Facility and Capacity
The business will require utensils, furniture, and two vehicles (one for ferrying in raw materials
and the other one for delivering finished products). FSCS will accommodate 14 workers. Also,
the business will be opened 6 days a week from 8am-5pm. This means that all workers will be
resting on Sunday.

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4.1.2 Business Layout

4.2 Production or Service Strategy

For Fire Spot Catering Service to be successful, it must offer products and services that are of
greater benefits to the customers than other similar enterprise. Therefore, this strategy is very
relevant as it describes how the products and services will be marketed, the targeted markets, the
marketing message used to attract customers, and the methods used to deliver this message. The
business will establish proper distribution channels that will make it possible for products and
services reach the targeted customers. The enterprise will also expand the target markets and
emphasis on positioning versus competitors. Social Media platforms such as TV, radio, twitter,
Facebook, and Instagram will be used to market our products to the targeted population.
4.3 Production Process
This process involves several stages that are used to develop and plan for a catering business.
They include; Market and destination research, idea development, negotiations with the
suppliers, cost of products and services, and financial evaluation and pricing.
4.4 Regulations Affecting Operations
The business is influenced by factors such as seasonality, events, development, currency rate,
travel trends, and government support.

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 CHAPTER FIVE: FINANCIAL PLAN
5.1 Pre-operational Costs

Table 5.1: Pre-operational Costs

Item Cost
Marketing promotions 35000
Marketing brochures 5000
Business registration 4500
Rent 30000
Research 2000
Operational costs 50000
Wi-Fi 2500
Purchase of insurance 13000
Telephone 5000
Legal fee 2000
Consultation fee 1000
Advertisements 10000
Permits 5000
License 10000
Electricity 3500
Total preoperational 182000
costs

5.2 Estimation of Working Capital

Working capital for Fire Spot Catering Service as at June 2021 and 2022.
WORKING CAPITAL 2021
CURRENT ASSET Ksh
Inventory 150000
Bank Account 250000
Cash at Hand 150000
Marketable Securities 100000
Accounts Receivables 70000
TOTAL CURRENT ASSETS 720000

CURRENT LIABILITIES
Creditors 20000

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Long term loan 70000
Accrued liabilities 20000
TOTAL LIABILITIES 110000
WORKING CAPITAL 830000
Assumptions
Inventory increased by 2.5% in the second year of investment
WORKING CAPITAL 2022
CURRENT ASSET Ksh
Inventory 200000
Bank Account 300000
Cash at Hand 400000
Marketable Securities 120000
Accounts Receivables 80000
TOTAL CURRENT ASSETS 1100000

CURRENT LIABILITIES
Creditors 22000
Long term loan 80000
Accrued liabilities 25000
TOTAL LIABILITIES 127000
WORKING CAPITAL 1227000
Assumptions
Inventory increased by 3% in the third year.
5.3 Preparation of Cash Flow Projections
The projected cash flows in the business is assumed all will be from operating activities of Fire
Spot Catering Service and so the income received from the daily services will be the major cash
flow source while the fixed expenses which the owner assume they don’t change in the three
year period will be accumulated to get annual fixed account (Simatupang et al 2017). Also the
business assumes little or no variable expenses will be incurred by the business during the
accounting Business Plan period. During the first year of accounting the open balance will be
zero (0) since the business will be a start from scratch.

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5.4 Preparation of Proforma Income Statements and Balance Sheet
Proforma Income Statements

Table 5.2: Income Statements

Year 1
Sales 18720000
Cost of products or services 7020000
A. Gross Margin 11700000

Operating expenses
Utility 500000
Salaries 3090000
Supplier expenses 100000
B. Total Operating Expenses 3690000
C. Non-operating expenses 200000
D. Income before tax (A- (B+C) 7810000
E. Tax (30% of income) 2343000
Net Income 5467000

Balance Sheet of start-up (2020)

Balance for the year ended as of 30th June 2021
Current assets Current Liabilities
Cash at hand 405000 Account payable 150000
Bank account 250000 Total current liabilities 150000
Accounts receivable 70000
Inventory 150000
Total current assets 875000 Non-current liabilities
Bank loans 1300000
Bonds payable 100000
Fixed assets Total non-current liabilities 1400000
Vehicle 1550000 Total liabilities 1700000
Capital 325000
Equipment 500000 Profits 900000
Total Fixed Assets 2050000 Total capital 1225000
Total Assets 2925000 Total liabilities and capital 2925000

18
General assumptions
1 The value of the vehicle depreciated by 10% rate annually.
2 The investor continued to purchase equipment annually to meet the rising demand.
3 The current interest does not change from the start-up to the second year and will remain at
10%.
4 The long term interests also remain constant from start-up to the end of the second year at
10%.
5 Tax rate however, varies at start up 15% and second year 17%.
5.5 Calculation of Break-Even Point/Analysis (BEP)
For this business, Profits are projected to surpass expenses after a period of 5 years.
Thus, BEP units/value = Fixed Cost/ Contribution per unit
5.6 Calculation of Profitability Ratios (PR)
Profitability ratios shows the performance of a business enterprise i.e. how profitable Fire Spot
Catering Service is. Also, PR tells how the owner of the business has utilized the many on the
investment. Some of the profitability ratios indicators include; return on capital employed, return
on assets, gross profit, and net profit. Calculations are attached in the appendices.
5.7 Desired Financing
The proposed business will require Kshs 2000000 as a start-up capital. The funds will cater for
the pre-operation costs and other costs. The table in appendices shows the breakdown of the
desired financing.
5.8 Proposed Capitalization

Table 5.3: Proposed Capitalization

Funding Kshs Percentage
Savings account 250000 61.73
Bank loan 100000 24.69
Father support 30000 7.407
Mother and siblings 10000 2.470
Friends 15000 3.704
Total Investment 405000 100

19
 References
Albrecht, J. A., Hamouz, F. L., SCHNEPF, M. I., & THAYER, C. E. (1995). CATERING AS A

BUSINESS 1. Foodservice Research International, 8(2), 125-137.

Kemala, B. K. L., & Simatupang, T. (2020, September). Real Option Analysis Approach for

Pharmaceutical Project Portfolio Optimization Model Considering Multi-project

Dependencies. In 2020 7th International Conference on Frontiers of Industrial

Engineering (ICFIE) (pp. 40-47). IEEE.

Prindiville, P. (2008). A business plan and strategy for TASTE ST LOUIS catering and

vending (Doctoral dissertation, Kansas State University).

Shiring, S. B. (2013). Professional catering. Cengage Learning.

Susanto, B., Gaol, F. L., Si, S., & Kom, M. (2018). Web-based catering marketplace business

plan: Cateringku. com. In Issues and Trends in Interdisciplinary Behavior and Social

Science (pp. 41-55). CRC Press.

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Appendices

Table 3.2: Remuneration and Incentives

Personnel Number Salary (Kshs) Allowances Total cost
(house)
CEO 1 50000 2000 52000
Catering 1 37000 2000 39000
manager
Cashier 1 15000 2000 17000
Chefs 3 15000 1000 48000
Cleaner 3 5000 500 16500
Transporter 2 18000 1000 38000
Receptionist 1 10000 1000 11000
Sales agents 2 17000 1000 36000
Total 14 257500

Table 4.1: Facility and Capacity

Item Quantity Unit Cost Total Cost Capacity
(Ksh) (Ksh)
Utensils 100 1500 150000 150 customers
Rent fee 1 30000 30000 per day
Vehicles 2 750000 1500000
Furniture N/A N/A 250000
Total 1930000

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