BUSINESS PLAN

YUSUF CONSTRUCTION MATERIAL SUPPLY

P.O Box 22 – 80405 kinango

By
Yusuf karisa bungo
Adm no:0087
This business plan is to be represented to bandari maritime academy.
DECLARATION
This is to declare that this is my original work and has never been represented before.
NAME: YUSUF KARISA BUNGO
INDEX NO: 0087
SIGN…………………………….
DATE……………………………
The business has been submitted to KNEC with my approval the trainer supervisor
NAME: JOAN OLENDO………………………………
SIGN………………………………………..
DATE………………………………………..

2
ACKNOWLEDGEMENT
First and foremost, I would like to thank God for giving me the opportunity to undertake this
course. I also wish to express my gratitude to MADAM JOAN OLENDO, my esteemed
supervisor. Lastly I wish to acknowledge my parents for their financial support always and they

3
DEDICATION
With gratitude and respect this business plan is dedicated to my dear family. Am grateful for my
family support and love during training at Bandari Maritime Academy

4
Contents
DECLARATION.......................................................................................................................................2
ACKNOWLEDGEMENT...........................................................................................................................3
DEDICATION.......................................................................................................................................4
EXECUTIVE SUMMARY.......................................................................................................................7
1.0 BUSINESS DESCRIPTION...........................................................................................................7
2.0 MARKETING PLAN......................................................................................................................7
3.0 ORGANISATION AND MANAGEMENT PLAN........................................................................7
4.0 OPERATION PLAN.......................................................................................................................8
5.0 FINANCIAL PLAN.........................................................................................................................8
CHAPTER ONE..........................................................................................................................................9
1.0 BUSINESS DESCRIPTION..............................................................................................................9
1.1 BUSINESS NAME............................................................................................................................9
1.2 BUSINESS LOCATION ADRESSS.........................................................................................................10
1.3 FORM OF OWNERSHIP................................................................................................................11
BENEFITS OF SOLE PROPRIETORSHIP......................................................................................11
LIMITATIONS OF SOLE PROPRIETORSHIP...............................................................................11
1.4 TYPE OF BUSINESS OWNERSHIP.............................................................................................11
1.5 PRODUCT AND SERVICES.........................................................................................................11
1.6 JUSTIFICATION OF OPPORTUNITY..........................................................................................12
1.7 INDUSTRY.....................................................................................................................................12
1.8 GOALS AND OBJECTIVES..........................................................................................................12
1.8.1 SHORT TERM GOALS...........................................................................................................12
1.8.2 LONG TERM GOALS.............................................................................................................12
1.9 ENTRY AND GROWTH STRATEGY..........................................................................................12
1.9.1 ENTRY STRATEGY PLAN....................................................................................................12
1.9.2 GROWTH STRATEGY...........................................................................................................12
CHAPTER TWO.....................................................................................................................................13
2.0MARKETING PLANS.....................................................................................................................13
2.1 POTENTIAL CUSTOMERS...........................................................................................................13
2.2 MARKET SHARES AND SIZE.....................................................................................................14
2.3 COMPETITION..............................................................................................................................15

5
 2.4 PROMOTION ADVERTISEMATE STRATEGY......................................................................................16
2.5 PRICING STRATEGY...................................................................................................................16
2.6 SALES TACTICS...........................................................................................................................16
2.7 DISTRIBUTION STRATEGY........................................................................................................16
CHAPTER THREE.................................................................................................................................17
ORGANISATION AND MANAGEMENT PLAN...............................................................................17
3.1 ORGANISATION STRUCTURE...................................................................................................17
3.2 MANAGEMENT TEAM................................................................................................................18
3.3 DUTIES AND RESPONSIBILITY.................................................................................................18
3.4PURCHASING OFFICER RESPONSIBILITY...............................................................................19
3.5 OTHER PERSONEL.......................................................................................................................19
3.6 RECRUITMENT, TRAINING AND PROMOTION......................................................................19
3.7 RECRUITMENT.........................................................................................................................19
3.8 TRAINING..................................................................................................................................19
3.9 PROMOTION.............................................................................................................................19
3.1.1 RUMENERATION AND INCENTIVES.....................................................................................19
3.1.2 RUMENERATION..................................................................................................................19
3.1.3 INCENTIVE.............................................................................................................................20
3.1.4 LICENSES...................................................................................................................................20
3.1.5 PERMIT.......................................................................................................................................20
3.1.6 BY LAWS....................................................................................................................................21
3.1.7 BANKING SERVICES................................................................................................................21
3.1.8 INSURANCE SERVICES............................................................................................................21
3.1.9 CONSULTING SERVICES.........................................................................................................21
3.2.1LEGAL SERVICES......................................................................................................................21
CHAPTER FOUR...................................................................................................................................22
4.1OPERATIONAL / PRODUCTION PLAN.......................................................................................22
Premises layout........................................................................................................................................23
4.2 OPERATION / PRODUCTION STRATEGY.................................................................................24
Monthly cost of labour............................................................................................................................24
Monthly overhead cost............................................................................................................................25
Total cost of production per month........................................................................................................25
4.3 PRODUCTION / OPERATIONAL PROCESS...............................................................................25

6
 4.4 GOVERNMENT REGULATION AFFECTING OPERATION.....................................................26
CHAPTER FIVE.................................................................................................................................27
5.0 FINANCIAL PLAN........................................................................................................................27
5.1 PRE-OPERATIONAL COST..........................................................................................................27
5.2 WORKING CAPITAL ESTIMATIONS.........................................................................................27
5.3 PROJECTED CASH FLOW – 1st Year.........................................................................................28
5.4 PROJECTED CASH FLOW STATEMENT – 2nd Year..............................................................28
5.5 PROJECTED CASH FLOW STATEMENT – 3rd Year................................................................28
APPENDICES.......................................................................................................................................29

EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The name of the proposed business will be a sole proprietor and the sponsor of the business will
be yusuf bungo karisa who will be the general manager. The proposed business will be located at
kinango Town along kwale to Samburu road near to kinango secondary school oppositenkinango
market.
The address of the proposed business will be
P.O Box 22 – 80405
Kinango
E-mail: [email protected]
SITE: www.yusufconstructionmaterialstransportation
INSTARGRAM: Yusuf Construction Materials Transportation
FACEBOOK: Yusuf Construction Materials Transportation
TELEPHONE. +254708913840
2.0 MARKETING PLAN
This is the second stage of business plan, where there’s advertising strategy that a business will
implements to sell its products and service. The marketing plan will help to determine who is the
target market is how best to reach them at what point the product or services should be sold, and
how the company will measure its efforts. To this business marketing plan, it would be through
the use of advertising the services in social media like; Facebook, Instagram, Twitter, and even
whastapp.

7
3.0 ORGANISATION AND MANAGEMENT PLAN
The organization plan cut line’s the policies regarding staffing and management of common
resources for efficient production of goals and performance of services. This chapter clearly
outlines the job description and job analysis, evolution training and compensation plans for my
staff. Ultimately, it indicates the supporting staff and services required for the business.
4.0 OPERATION PLAN
In operational plan, it will focus on the production facilities and capacity of the business, the
production strategy, monthly labour requirements in the production process. The business
remains closed on Sunday and public holidays.
5.0 FINANCIAL PLAN
The business shall have the following as a source of funds as well as capital.
Owners’ equity 500,000
Bank loan 200,000
Friends and relatives 100,000
Total 800,000
The pre-operational cost and working capital requirements for the first three years of operation
have been listed in this chapter. The projected cash statement from the first year of operation and
the Performa income statement from the year ending 2025, 2026 and 2027 have been prepared.
The chapter has also indicated the calculated breakeven level and the expected profitability ratios
for the business. Finally, the desired financing has been indicated and a brief description of the
proposed capitalization has been provide.

8
CHAPTER ONE
1.0 BUSINESS DESCRIPTION
YUSUF CONSTRUNCTION MATERIAL TRANSPORTATION is a startup business which
will be dealing with the transportation of construction materials, where the business will be
dealing with the transportation of the construction material of deferent types like; iron sheets,
cement, pipes, play woods, steel door, tiles.
MISSION: To work hard and smart to make the business successful and famous all over.

VISION: To became the leading transporter of construction materials.

CORES VALUES:

 Trustworthy.
 Fairness.
 Respectful.
 Confidence.

9
1.1 BUSINESS NAME
The business name YUSUF CONSTRUCTION MATERIAL TRANSPORTATION is derived
name where YUSUF stands to cover the powerful and fairly business in terms of prices which
can be achievable by customers.

LOGO

1.2 BUSINESS LOCATION ADRESSS

This business plan is located at Kinango town along Kwale to Samburu road near to Kinango
secondary school opposite to kinango market.
ADDRESS LOCATION
P.O BOX 22-80405,
KINANGO
E-MAIL: [email protected]
SITE: www.yusufconstructionmaterialstransportation
INSTARGRAM: Yusuf Construction Materials Transportation
FACEBOOK: Yusuf Construction Materials Transportation
TELEPHONE. +254708913840

MAP LOCATION

10
1.3 FORM OF OWNERSHIP
The form of business is sole proprietorship because is owned by one person and it is to manage
and control.
BENEFITS OF SOLE PROPRIETORSHIP
-Complete control over decision-making
-Direct tax benefits since profit are taxed as personal income
-Flexibility in management and operations
LIMITATIONS OF SOLE PROPRIETORSHIP
 Lack legal separation
 Lack of raising capital.
1.4 TYPE OF BUSINESS OWNERSHIP
YUSUF CONSTRUCTION MATERIAL TRANSPORTATION is based on transport because it
involves the transportation of construction materials from dealer to my company for sorting
before they are supplied to the customers.
1.5 PRODUCT AND SERVICES
This business will be in position to offer a wide variety of services and products to the
customers. Some of this services include: delivery of purchased construction materials to the
customer, on to the warrant the business will be in position to give warrant of six months.
Some of the products are iron sheet, cement, timber, play wood, pipes and house decorations.

11
1.6 JUSTIFICATION OF OPPORTUNITY
The idea of this business came up because Yusuf construction materials supply had the
experience and had did the research of different type of construction materials. Also this business
has the necessary qualifications that will be required to attain the license of business. Yusuf
construction supply business realized that there was a rise opportunity since other supplies were
not in position to supply the cheap construction materials were going for expensive ones and this
makes my business become more advantaged. On developing of refurbished cheap construction
materials customers will needing them to modify their houses.
1.7 INDUSTRY
This business is based under construction supplyt, there is alot of competition in the industry.
Some of competition industry include Makuto construction materials supply, Chiro construction
materials supply, Brand new construction materials supply. In the industry of construction
materials the technology has improved as the other industries.
1.8 GOALS AND OBJECTIVES
1.8.1 SHORT TERM GOALS
The short term goal of this business is to create confidence and trustworthy in customers through
quality services. In term of payment the business will request customers to deposit their money
in their accounts on in their phones. Also to use mass media on black boards to place on roads so
that the business to be known further.
1.8.2 LONG TERM GOALS
To become the best supplier in construction materials in the nation within the time the business
will starting growing up in supplying the products to customer with difference price according to
the quality of the construction materials to balance the customer because not all customer higher
the high quality product.
1.9 ENTRY AND GROWTH STRATEGY
1.9.1 ENTRY STRATEGY PLAN
The high plan of this business is to have closure contact with the customers and make fair price
of the products and thus makes us selling more products to customer. Due to the increase of
customers will lead the grown up of the business and the supply more products to customers.
1.9.2 GROWTH STRATEGY
The business will intends to grow continuous through investments in the business and make sure
it reaches many construction materials transportation dealers outside the country. As the business
grows it will be in position to expand to other places within the region. SWORT ANALYSIS
STRENGTH
-Continuing supplying construction materials
-Fast delivery of services
WEAKNESS

12
-Poor resource allocation
-lack of funds
THREATS
-High competition and fluctuating marks prices

CHAPTER TWO
2.0MARKETING PLANS
This is the second stage of business plan, where there’s advertising strategy that a business will
implements to sell its products and service. The marketing plan will help to determine who is the
target market is how best to reach them at what point the product or services should be sold, and
how the company will measure its efforts. To this business marketing plan, it would be through
the use of advertising the services in social media like; Facebook, Instagram, Twitter, and even
whastapp.
2.1 POTENTIAL CUSTOMERS
Business customers will come from different places within the KINANGO region. The
customers will include the people who have hardware and the local people who hire my products
in large quantity.
I will use a wide range of advertisement method to promote awareness of my business. Also
business will be in position to use billboards and television station for advertisement.

13
2.2 MARKET SHARES AND SIZE
Market shares is the percent of total sales in an industry generated by a particular company.
Market shares is calculated by taking the sales of one company in the industry over total sales of
company then multiply 100.
The following are expected market total sales in unit before and after penetration in the market
“QUARTERLY”
BEFORE PENETRATION IN THE MARKET
Makuto Chiro Brand new TOTAL
construction construction constructio
material material n material
Sales 350,000 400,000 750,000 1,500,000

Market 20% 30% 50% 100%

shares

BEFORE PENETRATION

20%

50%
30%

Makuto construction material Chiro construction material

Brand new construction material

AFTER PENETRATION IN THE MARKET

Makuto Chiro Brand new Yusuf TOTAL
construction constructio construction constructio
material n material material n material
Sales 250,000 300,000 770,000 1,500,000 2,820,000

14
Market 18% 24% 28% 30% 100%
Shares

AFTER PENETRATION

18%
30%

24%

28%

MAKUTO CONSTRUCTION MATERIAL CHIRO CONSTRUCTION MATERIAL

BRAND NEW CONSTRUCTION MATERIAL YUSUF CONSTRUCTIN MATERIAL

2.3 COMPETITION

Makuto Chiro Brand new

construction construction construction
material material material
transportatio transportatio transportatio
n n n

Strength -High -Have good -Have

customer management several
response. . support
businesses.

Success -stability due -Have -High

to investors. revenue due growth.
to good
management
.

15
 Weaknes -Insufficient -Lack of
-Slow in
s space for cooperation
customer
construction .
respond.
materials.

2.4 PROMOTION ADVERTISEMATE STRATEGY

The business will offer promotion strategy to promote customer’s awareness for my business
product. Some of this promotion strategies include: we offer free delivery to customers who hire
our products in large quantity, and also there will be no limit to post on our media so that we
know more from customers. It will also issue magazines to customers who purchase our
products.

2.5 PRICING STRATEGY

The method that are going to be used to determine the cost of construction materials are:

-Calculating the total cost of all units purchased.

-Selling prices from manufacturer

-Transportation cost

-Construction material registration cost

-Insurance cost

2.6 SALES TACTICS

Yusuf Construction Material Transportation will relay on direct use of agent as my selling
strategy in my company. This will help me to have the relationship with the customers to have
self-management of business and to control cost and price.

2.7 DISTRIBUTION STRATEGY

Construction material will be supplied through the use of roads, then transported to my company
for confirmation before sorting and grading is done. The problems that is likely to be
encountered the climate changes and delay of the transportation of products.

16
CHAPTER THREE
ORGANISATION AND MANAGEMENT PLAN
An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goal of organization.

These activities can be roles and responsibilities. Management plan will show how an
organization is run and also will ensure that everyone is on the same page and the goals will be
accomplished.

3.1 ORGANISATION STRUCTURE

Yusuf construction material transportation choose a functional structure in organization
structure, which will be assist the business into different department serve as functional units
and are overseen by functional manager in the business.

This business will follow this kind of structure whereby there’s hierarchy showing employees
from top to bottom. The disadvantage of functional structure is that can cause high level of job
dissatisfaction and fewer process improvements for the business.

17
 General
manager

Financial
Manager

Accounting Marketing and Purchasing

Manager sales Manager manager

3.2 MANAGEMENT TEAM

This business team will include:

 General Manager
 Finance Manager
 Purchasing Manager
 Marketing and sale Manager
 Accounting Manager

3.3 DUTIES AND RESPONSIBILITY

General Manager will control all the business and also take care general responsibility of running
business.

Finance manager will be dealing with the matters concerning in the business.

Accounting manager will be dealing with the matters concerning needs for current staffs.

Marketing and sales manager will be attending all duties regarding marketing of company
products and services and all advertisement responsibilities.

The qualifications that will be required for to take the position are: A degree in accounting,
Bachelor in commerce and have a least working experience of four years.

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3.4PURCHASING OFFICER RESPONSIBILITY
To organize of transportation of construction materials.

3.5 OTHER PERSONEL

Title Number Qualification Duties

Cleaning 2 KCSE For cleaning the

office.
staffs Certificate

Security 1 KCSE For security.

guard Certificate

Driver 2 KCSE Certificate and For transporting and

have insurance delivering of
material

3.6 RECRUITMENT, TRAINING AND PROMOTION

3.7 RECRUITMENT
The business will put notification of the vacant positions in the management positions online and
qualifications required. The date and venue will be included.

3.8 TRAINING
The new employed staffs will under training to ensure they sharpen their skills of job training
like workshop and seminars will be required to all the employees. The purpose of training is to
ensure that the new employees they improved their knowledge and skills of employees they
improve their knowledge and skills of employees to match in the various changes in the
company and to increase the employees level of awareness.

3.9 PROMOTION
The employees who undergo the interview will be promoted according to how one will show his
performance. Also there will be end of month prizes to determine the employee who has
performed well in terms of work performance.

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3.1.1 RUMENERATION AND INCENTIVES
3.1.2 RUMENERATION
Employing will be getting their salary according to their qualifications and performance and also
salary will increase according to how business will be performing as per year.

3.1.3 INCENTIVE

Tea Lunch Bonus

General 250 350 9,000

manager

Finance 200 300 6,000

manager

Purchasin 200 300 5,000

g manager

Accounting 200 300 5,000

manager

Marketing
200 300 5,000
manager

Security 100 200 4,000

guard

Cleaning 2 200 4,000

staffs
driver 1 200 4000

3.1.4 LICENSES
The license which the business will operate with, will be acquired from national government at a
rate of 30,000 per year.

20
The purpose of license is to ensure that my business is safe and protected. Also it will help to
avoid several penalties and fines for operating without permission from authority.

3.1.5 PERMIT
The type of license this business will work with is professional single business permit.

The trading permit will be issued by county government of kwale and the national government
through the Kenya revue authority and customs. Once the necessary documents are submitted,
the business permit will be allocated and business will operate legally.

3.1.6 BY LAWS
The laws of supporting construction material mostly tell about the regulations on the types of
vehicles permitted to transport materials, weight limits for trucks carrying construction
materials, routes for transporting hazardous materials, and guidelines for handling and disposing
of construction waste.

3.1.7 BANKING SERVICES

The bank that the business agreed to work with is Kenya commercial bank. The reason why
Yusuf construction material transportation choose this bank is because they have easy
transactions and also offers range of finance product like saving accounts, investments and
loans.

3.1.8 INSURANCE SERVICES

This business will rely on Auto insurance which covers for the loss, damage, or theft of
construction material while in transit by land, sea, or air. This insurance service help
construction company manage the risks associated with transporting valuable materials.

3.1.9 CONSULTING SERVICES

This business will get the advices and consult from high supply’s business to advise me on the
best way to run the business. As it will be getting the advice, it will also attend the
benchmarking to improve the customer response interface and customer services.

3.2.1LEGAL SERVICES
Yusuf construction material transportation will work together with MULWA &MULWA
ADVOCATES law firm and represented by Dania Kaka as official lawyer. When the employees
will be employed to this company they will always sign to show that one is ready to follow the
rules that govern the business. There registered office is in kwale town.

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CHAPTER FOUR
4.1OPERATIONAL / PRODUCTION PLAN
No Facility Quantity / Cost / unit
NO
required

1 Computers 5 350,000

2 Printer 2 60,000

3 CCTV camera 5 25,000

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 4 Fire extinguisher 3 7,500

5 Wheelbarrow 2 12,000

6 Lorry 1 1,100,000

7 Working desks 5 75,000

8 Chairs 8 16,000

9 Cashbox 1 2,000

10 Shelves and stands 6 25,000

Sub total 1,672,500

Premises layout

General manager Accounting Shelf

manager shelf shelfshelf

Marketing
Financial manager

shelf

Purchasing manager shelf

23
 Workers space

4.2 OPERATION / PRODUCTION STRATEGY

Monthly cost for raw materials

Item Amount(kshs)

Iron sheets 100,000

Ballast 100,000

cement 300,000

Electrical wires 20,000

timber 100,000

nails 100,000

Sisal ropes 30,000

Pvc pipes 50,000

Measuring tapes and tiles 500,000

bricks 300,000

Total cost of materials 1,610,000

Monthly cost of labour

Job title Total monthly

General manager 35,000

24
 financial manager 32,000

Manager marketing 30,000

Accountant 31,800

Purchasing manager 28,000

workers 15,000

Driver 18,000

Security guard 15,000

Total 204,000

Monthly overhead cost

Item Amount (kshs)

Repair 50,000

Insurance 150,000

Suppliers 100,000

Advertisement 20,000

Utilities (water, electricity) 25,000

Total 345,000

Total cost of production per month

Item Amount

Cost of raw materials 1,610,000

Cost of labour 204,000

25
 Overhead cost 345,000

Total cost of production 2,159,000

4.3 PRODUCTION / OPERATIONAL PROCESS

For a customer to purchase he or she will purchase the will be given a receipt.

Payments can be done in cash or through paybill number.

4.4 GOVERNMENT REGULATION AFFECTING OPERATION

Labour law – according to the department s of labor the fair labour standards act (FLSA)
prescribes standards for wages and overtime pay . This affects my business since I must pay
employees an overtime pay.

Antitrust laws – this parents my business from controlling market prices.

Law suits - costly law suits will drain my business financed, energy, time and resources

Statutory dedication – some of my employees are not willing to allows me to deduct from
their wages for example constitution .

Taxation – direct taxes affect my s business since our government has s high taxation rates.

Occupational health – this affects my business since my employees require training and it is
time consuming

Safety and disaster management – the cost of planning for disaster occurrence is very and
high and it will affect my business.

26
CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1 PRE-OPERATIONAL COST
Item Amount
Tools and equipments 252,500
License and permit 7,200
Electricity 20,000
Insurance 150,000
Advertisement 20,000
Telephone 5,000
Furniture and fittings s 17,100
Machines 420,000
Total pre-operational cost 891,800

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5.2 WORKING CAPITAL ESTIMATIONS
Item 1st Month amount in 2nd Month amount in 3rd Month amount in
kshs kshs kshs
Electricity 20,000 20,000 20,000
Salary 228,000 228,700 228,700
Raw materials 42,500 42,500 42,500
Total working capital 291,200 291,200 291,200
Grand Total 291,200

28
 Jan Feb March April May June July Aug Sep Oct Nov

1,591,30 554,30 607,300 380,300 683,800 692,400 701,000 709,600 718,600 718,200
0 0
400,000 - - - - - - - - - -

1,000,000 - -- - - - - - - - -
800,000 900,000 950,00 100,000 1,000,50 1,000,60 1,000,70 1,000,80 1,000,90 1,001,00 1,002,00
0 0 0 0 0 0 0 0
20,000 25,000 30,000 350,000 35,000 40,000 50,000 60,000 70,000 80,000 90,000
2,200,000 725,000 980,00 1,035,00 1,040,50 1,050,60 1,060,10 1,070,80 1,080,90 1,070,90 1,102,00
0 0 0 0 0 0 0 0 0
260,000 - - - - - - - - - -
l

80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,0000 40,00 35,000 30,000
10,000 15,000 20,000 25,000 25,000 30,000 35,000 40,000 45,0000 50,000 55,0000
228,700 228,700 228,70 228,700 228,700 228,700 228,700 228,700 228,700 228,700 228,700
0
5,000 6,000 7,000 8,000 9,000 9,500 10,000 10,500 11,000 11,500 12,000
5,000 5,500 6,000 6,500 7,000 7,5000 8,00 8,5000 9,000 9,500 10,000
20,000 20,500 21,000 21,500 22,0000 22,500 23,000 23,500 24,000 24,500 25,000
me 20,000 20,000 20,000 - - - - - - - -

628,700 370,700 372,70 354,700 356,700 358,200 359,700 361,200 362,700 364,200 365,700
0
ut 1,591,300 554,300 607,30 680,300 680,300 683,800 692,400 701,000 709,600 718,200 726,700
0 0
5.3 PROJECTED CASH FLOW – 1st Year
Assumptions made

 Salaries and wages remain constant for the first 3 year

 Stock decrease as increases

5.4 PROJECTED CASH FLOW STATEMENT – 2nd Year

Jan Feb March April May June July Aug Sep O
Cash flow
Opening 746,000 750,230 756,200 756,200 762,170 774,110 780,080 786,050 796,050 7
balance
Cash 1,004,00 1,000,50 1,006,00 1,007,00 1,000,00 1,000,90 1,010,00 1,015,00 1,020,00 1
sales 0 0 0 0 0 0 0 0 0 0
Debtors 11500 120000 125000 130000 135000 140000 1450000 150000 155000 1
Total 1119000 1125000 1131000 1137000 1143000 1149000 1155000 1165000 1175000 1
cash 0 0
inflow

29
Purchases 24900 24800 24700 24600 24500 24400 24300 24300 24200 2
Creditors 65100 65200 65300 65400 65500 65600 65700 65800 65900 6
Salaries 228700 228700 228700 228700 228700 228700 228700 228700 228700 2
Water 12550 12520 12530 12540 12550 12560 12570 12580 12590 1
Telephon 12510 12520 12530 12540 12550 12560 12570 12570 12580 1
e
Electricit 25010 25020 25030 25040 25050 25060 25070 25080 25090 2
y
Total 368770 368800 368830 368830 368860 368920 368950 368950 368980 3
cash
outflow
Net cash 750,230 756,200 756,200 762,170 774,110 780,080 786,050 796,050 796,00 8
out flow

Assumptions made

 Salaries and wages remain constant for the first 3 year

 Stock decrease as increases

5.5 PROJECTED CASH FLOW STATEMENT – 3rd Year

Jan Feb March April May June July Aug Sep O
Cash flow
Opening 835900
balance
Cash sales 10400000 1045000 1050000 1055000 1060000 1065000 107000 10750000 1080000 1
Debtors 180000 190000 200000 210000 220000 230000 240000 250000 2600000 2
Total cash 12200000 1235000 1250000 126000 1280000 1280000 1295000 1310000 1325000 1
inflow
Purchases 23700 23600 23500 23400 2330023200 23100 23100 22900 22800 2
Creditors 66300 66400 66500 666000 66700 668000 66900 67000 67100 6
Salaries 228700 228700 228700 228700 228700 228700 228700 228700 228700 2
Water 12670 12680 12690 12700 12710 12720 12730 12740 12750 1
Telephone 1260 12630 12640 12660 12670 12680 16690 12700 12710 1
Electricity 25120 25140 25150 25160 25170 25180 25180 25180 25190 2

30
total cash 369120 360150 369180 369210 369240 369270 369300 369330 369330 3
outflow
Net cash 850880 865850 880820 895790 910760 925730 940700 955670 970630 9
out flow
Assumptions made

 Salaries and wages remain constant for the first 3 year

 Stock decrease as increases

APPENDICES

General manager Accounting Shelf

manager shelf shelfshelf

Marketing
Financial manager

shelf

Purchasing manager shelf

31
 Workers space

32