BUSINESS PLAN.

REBBY’S SNACKS ‘N’ BITES.

NAME OF THE AUTHOR:.

INDEX NO.:

COURSE: CERTIFICATE IN

. COURSE/SUBJECT CODE:

CENTRE NAME

CENTRE CODE:.

PRESENTED TO: KENYA NATIONAL EXAMINATIONS COUNCIL,AS A PARTIAL

FULFILMENT OF THE AWARD OF CRAFT CERTIFICATE IN.

NAME OF THE SUPERVISOR:

DATE OF PRESENTATION: NOVEMER

2023
DEDICATION.
I dedicate this business plan to my mother and grandmother.
ACKNOWLEDGEMENT.
Special thanks to the Almighty God for the strength and wisdom towards the preparation and
submission of this business plan. My gratitude also goes to my supervisor for her comments,
corrections and her devotion towards this business plan development.
EXECUTIVE SUMMARY.
1.1. BUSINESS DESCRIPTION.
‘Rebby’s Snacks ‘N’ Bites’ will be the name of the business. It entails or consists of cooking,
baking several snack dishes and selling them in the café.

It will be located in Eldoret, Kenya Service at Kapsoya. The entrepreneur decided on this location
because it is a very good business centre.
Business will be a sole proprietor, since the entrepreneur will be the manager of the business and
such a business is quite easy to start and in handling too.It does not require any contract signing
like in a partnership business where partners will have to sign a contract.

This business is a startup. There will be services offered and production which includes cooking
and baking several snack dishes. There will be product production, the business will mainly deal
with providing and serving the cooked and baked delicacies. Quick pleasant services, good eye
catching decorations and cleanliness will also be maintained.
1.2. MARKETING PLAN.
The business shall aim at serving 25% of the available market since it will just have started and
not many people will have heard of it. But as time moves on, the trader will ensure that the
percentage increases gradually and atleast be ahead of most of the competitors. The trader will
ensure that the business is so much better in every perpective. The food products or snacks will
include kebab, cakes, cupcakes, donuts, crisps, fries and many more.

Competition in the area is a bit high since there are atleast three cafés which provide same food
stuffs as ‘Rebby’s Snacks ‘N’ Bites’. The competitors are; Bin Agil café, Salma’s Bites and
Nagib mini restaurant.

The SWAT analysis will help the trader know the strengths and weaknesses. This will enable the
trader to compete in the most perspective way.

Promotion will be done by offering some free foods for those who come in groups and those
who spend a lot of money in buying food. Customers will be having free drinks and fruits after
purchase and this will happen on specific special days. Advertisement will be done through
posters,internet,leaflets and printing of t-shirts.
1.3. ORGANISATION AND MANAGEMENT.
Organisation is the frame work which brings the activities necessary to achieve the objective of
the business and the facilities working in relations to another. Once the work of an enterprise
grows beyond what a single person can do, organization chart which shows the location and
reporting relationships of the units and management position in the organization.

Each and every person will fully account for their action, from the
manager,chefs,storekeeper,cashier,waiters and cleaners.The manager will play the role of
planning,decision making,organizing,leading,controlling human resources and finance,also
information resources.
1.4. OPERATION AND PRODUCTION PLAN.
These are the production facilities and capacity that the trader will require to enable the business
to start functioning.They could be items such as cooking pans,cooking machines,storage
equipments and many more appliances.
Process of production will start from purchasing of raw materials,handling
them,preparation,cooking,marinating,serving or packaging for those who want packed foods and
finally distribution.Payment of electrical bill,waterbill,license and payment of the suppliers of
other commodities shall be made in advance or earlier to avoid disconnection of the service
rendered.
1.5. FINANCIAL PLAN.
Constitutes of the pre-operational costs,estimations of woking capital,cash flow projections for
three years,proforma income statements,proforma balance sheets,calculation of profitability
ratios,desired financing and proposed capitalization.
 CHAPTER ONE.

1.1 Business name.

The name of the business will be ‘Rebby’s Snacks ‘N’ Bites’. The business consists of cooking
and baking several snack dishes and selling them in the café.
1.2 BUSINESS LOCATION AND ADDRESS.
The location of the business is in Eldoret at Kenya Service. The entrepreneur decided on this
location because it is a very good business centre.

In Kenya service, there are many factories, retail shops, mechanics and many residents who
dislike tiring themselves too much due to their way of lifestyle and also being busy either in
businesses, work or doing leisure activities. The residents of this place like to have a taste of
sweet, hot delicious snacks.

1.3 FORM OF BUSINESS OWNERSHIP.

It will be a sole proprietor business, since the entrepreneur will be the manager of the business
and a sole proprietor business is easy to start and handle. It does not require any contract of
partnership and their approval in everything taking place in the business.

1.4 TYPE OF BUSINESS.

The business is a start-up. There will be services offered and production which includes cooking
and baking several snack dishes and selling them to the customers.

1.5 PRODUCTS AND SERVICES.

Since there will be also product production, the business will mainly deal with providing or
serving the cooked and baked delicacies, quick pleasant waiteressing, good café decorations and
cleanliness.
1.6 JUSTIFICATION OF OPPORTUNITY.
This business was chose due to the hobbies and passion of the entrepreneur. With the location
and good business strategy, the business will prosper. Quick pleasant waiters, chefs and cleaners,
the business will dwell well as long as there is team work good work relations, respect and
proper working conditions.
In this café, the personnel’s will focus on producing quality both Coastal snacks and some
snacks from other countries, providing quality services and providing excellent ambience;-nice
decoration and cleanliness.
1.7 INDUSTRY.
The industry in which this business is cultured from is the hotel and hospitality which mostly
deals with food and beverages, waitering sections, reception and product producing. Also service
rendering is included. It also relates with current course am doing which is Food Science
Technology.
1.8 GOALS OF BUSINESS.
The ultimate goal of this business is to achieve good results in running the café and earning good
profit.
1.8.1 LONG TERM GOALS (2 – 5YRS)
By the end of at least one or two years, the business should at least have more than 500 regular
customers. Achieved to get more customers from companies and online customers too.After four
years, another branch opening in a convenient area.

1.8.2 SHORT TERM GOALS (3 – 6MONTHS OR 1YEAR)

By the end of a few two or three months, the business must have achieved to win most of the
competitors’ customers’ hearts.

1.9 ENTRY AND GROWTH STRATEGY.

1.9.1 ENTRY.
The business will obtain greater market from different methods that will be used to advertise the
foods like the use of modern technologies. Inviting important guests like the governor or a
certain popular person that is most loved by the people to gain publicity after taking photos of
the person with their consent and posting them to social medias.
1.9.2 GROWTH STRATEGY.
More products that will not have been there will be introduced and new ways of producing
products will be invented or created.Creation of employment for other job seekers, increasing of
more modernized equipements and machines. Introducing of other branches either in Kaptagat or
iten after the business succeeds.
 CHAPTER TWO

2.0 MARKETING PLAN.

2.1 Customers.

Customers will determine the success of the business, this business will aim at pleasing its
customers in every perspective. Customers will be the locals of Kenya service ,pass-byers
going to Eldoret town and many other places. Since a customer is the most important person for
an entrepreneur, they will be treated in the best way. Types of customers intending or expecting
are the locals, pass-byers and even foreigners.
2.2 MARKET SHARE.
This business shall aim at serving 25% of the available market during year one, since the
business shall be shared by competitors at different levels of percentage. The trader shall ensure
that the business wins bigger number of customers as the business grows to be at a position of
winning the market, there shall be massive advertisements. The food products, samples or snacks
will be at high standard as compared to the competitors.

In the second year, the business intends to increase the market by 33%.This will be done to its
establishment in the market from the improvement of the services.

During the third year, the business could be in a position to have captured 50% of the market
share which shall be a result of good world class services being provided to customers.

The following pie charts represent the market share from year one to three.

MARKET SHARE FOR FIRST YEAR.

Sales

locals
pass-byers
foreongers
 Column1

BinAgil café
Salmas bites
Nagob mini-restraunt
Rebbys snacks and bites

MARKET SHARE FOR THE SECOND YEAR

Sales

locals
pass-byers
foriegners
MARKET SHARE FOR THIRD YEAR.

Column1

locals
pass-byers
foreigners
2.3 COMPETITION.
Competition in the area is a little bit high since there is Bin Agil Café and few small cafés that
provide almost similar products as the ones this business intends to provide.

The cafés are as follows:

1. Bin Agil café.

2. Salma's Bites.

3. Nagib mini- restaurant.

Tabulating data in SWAT

analysis.

Name Strengths Weakness

1 Bin Agil Cafe Widely known in the area. Poor management. Less
Good waiters.
Price keeps
 Name Strengths Weakness
cooking skills. on fluctuating.
Good location near
the road.
2 Salma’s Bites Good location near the road. Poor management. Lack
Good of proper health
cooking skills. procedures.
3 Nagib mini- Widely known. Good cooking Less waiters. Price keeps
restaurant. skills. on fluctuating.
Lack of proper health
procedures.
4 Rebby’s Good management. Price does not Not yet
snacks ‘N’ fluctuate. Proper health procedures. widely known.
bites Good cooking skills.
Good location near
the road.

2.4 METHODS OF PROMOTION AND ADVERTISEMENT.

2.4.1 PROMOTION.
Promotion will be done by offering some free food for those who come in groups, those who
spend a lot of money in buying food. All customers will be promoted by having free drinks and
fruits after buying or eating in the café, on some specific days.
2.4.2 ADVERTISEMENT.
Posters, internet, leaflets and printing of T-shirts will be used and done to advertise the business.

Advertising budget is as follows:

POSTERS. INTERNET LEAFLETS T-SHIRTS

Personel to put the Putting a site and Printing = 1000 Printing = 3000
posters = 3000 running it = 2000
Printing = 1000 - Distribution = 2000 Distribution = 2000
TOTAL = 4000 2000 3000 5000

2.5 PRICING STRATEGY.

The food stuffs prices will be priced as per the production charts, which is raw materials
accessibility and overhead costs. Quality of what will be provided will also play a big role in
pricing. The trader will also consider the economic states of the customers, the percentage profit
margin, competitors' prices and market rates.
2.6 SALES TACTICS.
The business sales tactics will be increased by the profit made. The sales tactics are:

(1)Free meals

(2)Discount.

Free meals.

Customers who come in groups will get some of the foods free.
Drinks and fruits will be given to every customer on specific days of the week.

Discount.

Discount is given to customers who spend a lot of money in purchasing food.

For those who come in a group also get a discount for certain foods and mostly one person in the
group will eat free, the management will pay.
2.7 DISTRIBUTION STRATEGY.
The distribution strategy will be a direct and indirect distribution. The employees will be of a
friendly nature and know how to please the customers and it will distribute good services and
enhance good environment for the customers.
 CHAPTER THREE
3.0 ORGANISATION AND MANAGEMENT.
The structure.

Manager.( Chefs(2) Storekeeper (1). Cashier

(1)

Waiters(3). Cleaners (3)

3.1 BUSINESS MANAGER (S) AND QUALIFICATIONS.

The manager will play the role of planning, decision making, organising, leading and controlling.
Human, financial, physical and information resources. The manager will be in charge of raw
materials and other restaurant equipments.

The manager will identify any legal and customer requirement as well as control budget, costs,
sales balance sheets and other accounts relating to the restaurant. To achieve the quality service,
the manager will motivate its staffs.

Qualification.

A holder of a certificate in food science technology from Kenya Coast National Polytechnic.The
trader has a passion in any food related programme, also appreciates the art of food and design
too.
3.2 PERSONNEL, NUMBER AND DUTIES.
Organization is the framework which brings the activities necessary to achieve the objective of
the business and the facilities working in relation to another. Once the work of an enterprise
grows beyond what a single person can do, an organization chart which shows the location and
reporting relationship of the units and management position in the organisation is needed.
Personnels are the employees present in the business apart from the manager.
Chefs(2).

The chefs of the café should have knowledge of the business. He or she should know how to
prepare different dishes that will be required or even more.

Qualification.

Should hold at least a certificate in catering from a well known café or restaurant and hospitality
college.
Waiter/waitress.(3).

They should know how to take orders and serve customers quickly and efficiently. Even though
some customers may be annoying, the waiters should have patience and tolerance.

Qualification.

Should hold at least a certificate or trained knowledge in the field and from a good college.

Cleaners.(3).

Should clean the restaurant nicely and neatly.They should also be patient and have self respect
because their work is full of trials.

Qualification.

Should have a work experience of about two years and they should really like their work.
Storekeeper. (1).
His role will involve in store transaction, stock levels record keeping and arrangement.

Qualification.

Must be qualified in the field of store keeping and managing the stock levels with a work
experience of two years.

Cashier. (1).

The role will involve handling cash, issuing change and receipts.

Qualification.

Must be an experienced person, either trained in the field and have work experience of at least
one year.

Duties and responsibilities.

This is what will be needed of the personnels.

Chefs.

Prepare the foods as they are ordered by the customers. Taking care of the kitchen because he or
she will be the one accountable for anything that happens there.

Waiters.
 Making sure to tend to the customers needs all the time. Should be tolerant and patient while
dealing with the customers.

Cleaners.

Should ensure the environment is always spotless clean and also the equipments like utensils,
machines and tables are cleaned always.

Storekeeper.

Should make sure to keep all records of stock levels, the transactions made. Also arrangement of
the cleaners' duties and flow of raw materials.
Cashier.

Will also serve as a receptionist if the need arises, but main work will be handling cash,issuing
change and receipts.
3.3 RECRUITMENT, TRAINING AND PROMOTIONS.

3.3.1 RECRUITMENT.
This will be based on the defining requirements which are number and category of people
required should be specified, jobs should be analyzed ,description checked and person
specifications prepared.

Advertisement will be by leaflets and meeting qualification will not guarantee one to get
employment unless proven capable after interview to assess one's attitude, responsibility and
competency. Successful candidates will be hired immediately.

3.3.2 TRAINING.
It’s a systematic modification of behavior through learning, which occurs as a result of
education, instruction development and planned experience. Once the staff is absorbed in the
business, they will have to undergo induction and future man power needs and the new trend in
technology. They will be introduced to their work station and safety precautions taken especially
fire drill and using fire extinguishers.

3.3.3 PROMOTION.
Promotion will be based on the hard work,competence and efficient of an individual. The
manager will motivate the employees by giving incentives, delegating duties to the junior
 staffs,good working conditions, setting goals which are achievable and smart,job security and
involving the employees in decision making.
3.4 .REMUNERATION AND INCENTIVES.

3.4.1 RENUMERATION.
Employees will be paid on monthly basis, by giving salaries at the end of the month.The salary
giving will be elaborated furtherly by a table.

TABLE.4.4.1
PERSONNE NUMBER BASIC TOTAL HOUSE TOTAL TOTAL
L S PAY(KSHS) (KSHS) ALLOWANCE (KSHS)
Manager 1 10,000 10,000 8,000 8,000 28,000

Chefs 2 8,000 16,000 4,000 8,000 24,000

Waiters 3 5,000 15,000 3,000 9,000 24,000

Storekeeper 1 4,000 4,000 4,500 4,500 8,500

Cleaners 3 3,000 9,000 2,500 7,500 16,500

Cashier 1 6,000 6,000 5,000 5,000 11,000

Total money
used on
salary(kshs)
112,000

3.4.2 INCENTIVES.
Employees will receive incentives in monetary and in kind ways.On an annual basis, they will be
receiving the incentives. It will include loan facilities, salary increment after the three years of
establishment of the business. Having free food during breakfast and lunch hours. Uniforms will
be provided to them.

Personnel. Incentives.
 Manager. -> Millage allowance annually if owns a vehicle.

Medical insurance.

Chefs. ->Medical cover once in a while per year.

Transportation allowance or provided with a

van to pick them to and from.

Waiters. ->Education allowance annually e.g paying for

a member of the family fees annually.

Storekeeper. ->Medical cover annually. Transportation

allowance.

Cleaners. ->Medical cover annually allowance.

Transportation allowance.

Cashier. ->Ticket for holiday or travel allowance ticket

for a trip to relax during leave.

3.5 LICENSE, PERMITS AND BYE-LAWS.

The business will operate under the basis of sole proprietorship. There are legal policies imposed
by the government which will affect it.

3.5.1 LICENSE.
It is a requirement for every business to run. It will be obtained from the local government
authority which is the municipal council or county council of Mombasa,showing; name,address
and location of the business.

3.5.2 PERMITS.
The permits will be obtained from the local government health services department.
3.5.2.1 HEALTH REGULATION.
For a business dealing with foodstuffs to function efficiently and effective, it must obtain a
certificate complying with the health regulation department from the health inspection office.

All staffs will go for a health vaccination injection. The permit will be provided with a certificate
from the government health services.

3.5.2.2 GOVERNMENT BY-LAWS.

The government by-laws concerning this kind of business will be taken into consideration;
relevant certificates will be acquired from the government.

3.6 SUPPORT SERVICES.

Apart from the normal services rendered by the management, the standard and performance of
the business will be improved through contact with other external services.

FINANCIAL CONSULTANT.
A banker will be called upon occasionally to advice on matters related to banking and financial
management. Services of an accountant will also be required to balance the books of accounts
and do auditing work every twice per year. The services will be paid for as soon as they are
rendered.

INSURANCE AGENT/COMPANY.
An insurance agent will be invited to deal with all the insurance matters. After rendering the
service; will be paid.

Law firm.

A lawyer will be called upon to frequently guide the manager on legal matter or issues that one is
supposed to be aware of and are to be followed.

Electricity company (KPLC)

An electrical engineer or technician will be needed occasionally to oversee the electrical and
lighting system of the building or place.
Water company.

An engineer or technician will be needed to see through about the piping and water procedures
that are needed and how it should be followed.

Communication services.

Someone who is trained in ICT or communication services will be needed for installation of
certain legal programmes and other needed services to offer to the business I.e installation of
telephone wires or call centre numbers.
CHAPTER FOUR

4.0 OPERATION/PRODUCTION PLAN.

4.1 PRODUCTION FACILITIES AND CAPACITY

Facilities Quantity Specification Unit Total(kshs) Supplier.
price(kshs)
Deep Freezer 2 Ramtons 30000 60000 Zedson ltd PO
cf234 BOX 86954
Eldoret

Electric 3 Von point fqe 50000 150000 -

cooker 50e
Gas cylinder 3 Motal 5000 15000 -
Generator 1 Tamashi 25000 25000 -
0.5kra
Microwave 2 Von point 8000 16000 Nawal centre PO BOX
mwo HMS- 15468
202 Eldoret
DB/VAMS-
20DGB
Chairs 20 Wooden 500 10000 Citizen
furniture PO BOX
44965
Tables 15 Wooden 900 13500 -
Water pump 1 Carltons 10000 10000 -
CT50ZHP
Sinks tabs 4 Ceramic 750 3000 -
Plates 40 Melamine 125 1500 -
Cups 20 Glass water 150 1200 -
Spoons and 30 Steel 50 10000 -
forks
Glasses 30 Glass and 40 1000 -
plastic
Blender 2 Signature 5000 10000 -
SG-505
Water taps 4 Plastic 250 1000 -
Water tank 1 Hard plastic 10000 10000 -
Brooms 5 200 1000 -
Television 2 Vitron 24 12000 24000 -
inch
License and - In paper form 30000 30000 -
permits
Renovations - 30000 30000 -
and
installation
Total money 418700
used

4.2 PRODUCTION STRATEGY.

The trader intends to renovate the building where the business shall be located so as to make it
more suitable for the business. The decoration shall be made to make the restaurant more
beautiful and appealing to all the customers.

Some of the decoration that will be done

are; (¡.)Paint the walls and put some

mirrors.

(¡¡.)Putting flower stands on the end of every

corner. (¡¡¡.)Getting bright and beautiful table

clothes.

4.3 PRODUCTION PROCESS.

Payment of electrical bill, water bill, licence and payment of the suppliers of other commodities
shall be made in advance or earlier to avoid disconnection of the service rendered.
 Cooking of uncooked food stuffs
Preparation

Raw materials
of raw

marinating
distribution Serving /packaging

RAW MATERIALS.
These are the products bought or purchased in order to make the operations of the business
successful.

PREPARATION OF RAW MATERIALS.

Here is where cleaning, sorting, sizing,separating and other technics before preparing or cooking
the dishes that will be available.

COOKING OF THE PREPARED RAW MATERIALS.

Different food stuffs will be cooked in different ways. There are those that will be
baked,fried,deep fried,roasted, steamed and also smoked.

Marinating.

This is found in the taste,flavour and outlook of the food, it makes it more inviting and palatable.

Serving/packaging.

For those customers who will have their meal in the café, it will be served to them. For those
who have orders and won’t be having their meal in the business place, it will be properly and
neatly packaged for them to carry easily.
Distribution.

This will be done to those customers who are not able.

4.4 REGULATIONS AFFECTING OPERATIONS.

The health regulation require that the business place be clean at all times and all the employees
who handle food to be vaccinated, the municipal council require the business to have a valid
trading licence which is to be renewed annually.

The environment management authority requires all waste materials to be disposed correctly.
CHAPTER FIVE

5.0 FINANCIAL PLAN.

5.1 PRE-OPERATIONAL COSTS.

Items. Amount. (Kshs.)
Advertisement 14000
installation/renovation 30000
License and permit 30000
Deep freezer 60000
Electrical cooker 15000
Gas cylinder 15000
Generator 25000
Gas cookers 20000
Microwave 16000
Chairs 10000
Tables 13500
Water pump 10000
Sink tabs 3000
Plates 5000
Spoon and forks 1500
Glasses 1200
Cups 3000
Blender 10000
Water taps 1000
Water tank 10000
Brooms and moppers 1000
Television 24000
Serviettes and packing space 1000
Television and decoder 7000
Total 461000

5.2 ESTIMATION OF WORKING CAPITAL.

Current assets and amount

(kshs.) Stock.-200,000

Debtor.-20,000

Cash in hand.-

115,280 Cash at
bank.-300,000

Total=635,280

Current liabilities and amount (kshs.)

Creditors.-30,000.

Bank overdraft.-10,000.

Total=40,000.

Working capital = Current Assets – Current liabilities.

635,280 - 40000

= 595,280.

Working capital is Kshs.595,280.

5.3 CASH FLOW PROJECTIONS.

This is the cash in and out through out the three years period.

5.3.1 PROJECTED CASH FLOW FOR YEAR ONE.

Cash Jan Feb Mar Apri May June July Aug Sept Oct Nov Dec total
reciepts ch l
Bal b/d - 187 221 256 286 308 2536 398 4488 484 484 524 5835
700 700 700 850 700 00 390 740 840 840 420 00
Sales 800 890 950 900 870 960 1010 111 9500 800 800 102 9800
00 00 00 00 00 00 00 000 0 00 00 000 0
Debtors 300 100 250 200 500 150 2000 300 2000 150 250 200
0 0 0 0 0 0 0 0 0
Loan 180 - - - - - - - -- - - - -
000
Rent 600 600 600 600 600 600 6000 600 6000 600 600 600 6000
received 0 0 0 0 0 0 0 0 0 0
Cash in 800 720 700 700 690 680 7700 750 8000 830 890 900 8500
Hand 00 00 00 00 00 00 0 00 0 00 00 00 0
Total 349 355 394 424 448 489 5373 634 6613 724 666 724 7745
000 700 500 650 350 200 90 740 40 920 140 920 000
Cash out - - - - - - - - - - - - -
Purchases
100 800 150 160 120 130 1000 180 2000 100 120 100 1100
00 0 00 00 00 00 0 00 0 00 00 00 0
Salaries 112 112 112 112 112 112 1120 112 1120 112 112 112 1120
000 000 000 000 00 000 000 00 0 000 000 00 00
Transpor 100 150 100 800 500 800 2000 150 1100 120 150 110 1700
t 0 0 0 00 0 0 0
Water 800 600 450 800 650 500 680 550 750 450 550 550 650
bill
Telepho 800 600 450 800 650 500 680 550 750 450 550 550 650
ne
Electricit 100 120 950 900 850 800 850 750 800 820 820 760
y 0 0
Insuranc 150 - - - - - - - - - - -
e 00
advertis 200 - - - - - - - - - - - -
ement 0
Rent 400 400 400 400 400 400 4000 400 4000 400 400 400
paid 0 0 0 0 0 0 0 0 0 0
Loan 850 800 - - 800 200 6000 800 7000 600 600 800
payment 0 0 0 0 0 0
License 120 - - -- - - - - - - - -
and 0
permit
Expense 500 600 300 250 100 200 3000 400 3500 200 400 350
s 0 0 0 0 0 0 0 0 0 0
Total 161 134 136 137 139 135 1392 149 1499 136 141 135
300 700 850 800 650 600 10 650 00 920 420 060

5.3.2 PROJECTED CASH FLOW FOR YEAR TWO.

receipt Jan Feb Mar April May June July Aug Sept Oct Nov Dec Total
ch
Balanc 6394 6637 6970 5468 5721 5991 6413 6923 7572 8073 8713 9195
e b/d 40 00 50 50 50 00 90 90 40 90 90 00
Sales 1012 9925 8000 9600 1020 1150 1150 1200 1500 1300 1400 1230 1220
60 0 00 0 00 00 0 00 00 00 00
Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 600
receiv
ed
debtor 1000 1200 1350 950 800 1200 1000 1500 1350 - - -
s
Cash 1010 8100 8500 8300 8100 7600 7700 7500 8200 8300 8100 8900

in 0 0 0 0 0 0 0 0 0 0 0 0
hand
Total - - - - - - - - - - - -
Cash
out
Purcha 3400 2500 2000 2650 3200 2100 2200 3500 3000 3200 3295 4000
ses 0 0 0 00 0 0 0 0 0 0 0 0
Salarie 1120 1120 1120 1120 1120 1120 1120 1120 1120 1120 1120 1120
s 00 00 00 00 00 00 00 00 00 00 00 0
Transp 1500 2000 1600 1500 1000 2000 1450 1350 1250 1700 1000 1000
ort
Water 800 700 600 550 600 650 800 700 7500 800 840 820
bill
Electri 1600 1200 1000 1250 1300 1300 1250 1300 950 1300 1100 950
city
Insura 1500 - - - - - - - - - - -
nce 0
Rent 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
paid
Loan 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000
payme
nt
Teleph 1000 1200 100 1350 950 960 800 1000 1200 1200 1000 450
one 0
Expens 6000 4000 2000 5500 3000 6000 2200 5000 4500 4000 2000 1000
es 0
Licens 1200 - - - - - - - - - - -
e and
permit
s
Total 1851 1581 1502 1606 1628 1525 1681 1692 1650 1650 1618 1682
00 00 00 50 50 00 50 00 00 00 90 20

5.3.3 PROJECTED CASH FLOW FOR YEAR THREE.

Cash in Jan Feb Marc April May June July Aug Sept Oct Nov Dec
 receipt h
Bal b/d 9682 9025 8631 8315 7906 7475 7058 6841 6420 6076 5784 5475
80 80 80 30 80 10 10 60 10 60 10 10
Sales 1100 1080 1120 1010 1030 1010 1110 1006 9800 9900 1050 1090
00 00 00 00 00 00 00 00 0 00 00
Debtors - - 6000 7000 6500 - 8200 5000 4000 6000 8000 9000
Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000
received
Total 1084 1016 9871 9455 9061 8545 8310 7957 7500 7186 6974 6715
280 580 80 30 8 10 10 60 10 60 10 10
Cash out
Purchase 3000 3200 3000 2800 3200 2200 2000 2600 2000 1900 2900 3600
0 0 0 0 0 0 0 0 0 0 0 0
Salaries 1120 1120 1120 1120 1120 1120 1120 1120 1120 1120 1120 1120
00 00 00 00 00 00 00 0 00 00 00 00
Transport 2000 1500 - 1000 1500 1200 2500 3000 2500 2000 1500 1800
0
Water bill 600 700 900 950 650 850 650 900 850 700 700 800
Electricity 1600 2000 2100 2500 1820 2200 1650 1700 1800 1600 1200 100
Insurance 1000 - - - - - - - - - - -
0
Advertise 3000 - - - - - - - - - -- -
ment
Rent paid 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Repair 5000 - - - - - - - - - -
License 1250 - - - - - - - - - - -
and 0
permit
Telephon 1000 1200 1500 1250 1550 1300 900 1000 1200 950 1500 1800
e
Tax - - - - - - - - - - - - -
Loan - - 5150 5150 5150 5150 5150 5150 - - - -
payment
Total 1817 1534 1556 1548 1586 1487 1468 1537 1423 1402 1599 1604
00 00 50 50 70 00 50 50 50 50 00 00
5.4 PROFORMA INCOME STATEMENT

5.4.1 FOR 1ST YEAR

Sales 1124000
Net sales 1124000
Less cost of sales
Opening stock 200000
Purchases 155000
355000
 Gross profit - 769000
Expenses
Salaries 1344000
Electricity 10500
Telephone 7430
Advertisement 2000
Rent paid 48000
Transport 14600
Water bill 7730
Total expenses - 1434260
Net profit=total – expenses – 665260
gross profit

5.4.2 FOR 2ND YEAR

Sales 1270510
Net sales 1270510
Less cost of sales
Opening stock 200000
Purchases 349350
594450
Gross profit - 721060
Expenses
Salaries 1344000
Electricity 14500
Telephone 11710
Advertisement 2000
Rent paid 48000
Transport 17350
Water bill 15360
Total expenses - 1452920
Net profit=total expenses – gross 731860
Profit
5.4.3 FOR 3RD YEAR
Sales 1257600
Net sales 1257600
Less cost of sales
Opening stock 200000
purchases 324000
524000
Gross profit - 733600
Expenses
Salaries 1344000
Electricity 21170
Telephone 15150
Advertisement 3000
Rent paid 48000
Transport 29500
Water bill 9250
Total expenses 1461070
Net profit=total expenses – gross 727470
Profit

5.5 PROFORMA BALANCE SHEET

5.5.1 FOR 1ST YEAR

Noncurrent assets
Café equipment 461200
Total noncurrent assets 461200
Current assets
Cash in hand 938000
Cast at bank 30000
Debtors 23500
Total current assets 1261500

Current liabilities
Creditors 30000
Bank overdraft 10000
Total current liabilities 40000

Financed by
Capital 595280
Net profit 665260
Drawings 395000
Savings 1221040

Noncurrent liabilities
Loan 180000
 Total assets 1401040

5.5.2 FOR 2ND YEAR

Noncurrent assets 461200
Cate equipment 461200

Total noncurrent assets

Current assets
Cash in hand 994000
Cash at bank 300000
Debtors 10350
Total current assets - 1304350

Financed by
Capital 595280
Net profit 731860
Drawings 45200
Savings 1372340

Noncurrent assets
None - -

Total assets 1372340

5.6 CALCULATION OF BREAK-EVEN POINTS

Noncurrent assets
Café equipment 461200
Total noncurrent assets 461200

Current assets
Cash in hand 115280
Cash at bank 300000
Debtors 59700
Total current assets - 474980

Financed by
Capital - 595280
Net profit - 727470
Drawings - None
Saving 1322750

Noncurrent liabilities
None - -
Total assets 1322750

1 break-even point (units)=fixed cost/units

6000/12=500

2 break-even point (value)=fixed cost /units x selling

price 6000/12 x 180= 90000

5.7 Calculation of profitability ratio

1 gross profit ratio= gross profit/ sales x

200 889000/1124000 x 100= 79.09

2 net profit ratio= net profit /sales x

100 545260/112400 x 100 =48.51

5.8 DESIRED FINANCING

Items Amount
Pre-operational costs 461200
Working capital 595280
Noncurrent assets 461200
Total 1517680