BUSINESS NAME: KEILER’S CHICKEN INN

ADDRESS: P.O BOX 1211-027, ELDORET

INSTITUTION: MASAI NATIONAL POLYTECHNIC

NAME OF CANDITATE: SHEILA JEPCHUMBA

INDEX NUMBER: 515102

COURSE CODE:

SUPERVISOR’S NAME: MR. BINYANYA

EXAM SERIES: JUNE / JULY 2024

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL FOR

PARTIAL FULFILMENT FOR THE AWARD OF

CERTIFICATE IN FOOD AND BEVERAGE

DEDICATION

I declare that this project is my own work and has not been submitted to any award of certificate

examination by the Kenya National Examination Council

NAME: SHEILA JEPCHUMBA

SIGNATURE:

SUPERVISOR’S NAME: MR. BINYANYA

SIGNATURE:

i
DEDICATION
I dedicate this business plan to college fraternity for leading me through the steps, my parents

Mr. and Mrs. Cheruiyot for supporting me even at my low points and my sister’s Faith, Sandra

and Ann for their encouragements through the research.

ii
ACKNOWLEDGEMENT
I thank the Almighty for the provision of knowledge and wisdom through the steps. I would also

wish to thank my supervisor Mr.Benard Binyanya for the proses during the period of writing the

project and not forgetting Masai National Polytechnic for giving me a conduce learning

enviroment.

iii
 TABLE OF CONTENTS
DEDICATION............................................................................................................................................i
DEDICATION...........................................................................................................................................ii
ACKNOWLEDGEMENT........................................................................................................................iii
TABLE OF CONTENTS.........................................................................................................................iv
CHAPTER ONE........................................................................................................................................1
BUSINESS DESCRIPTION.....................................................................................................................1
1.1 BUSINESS NAME...........................................................................................................................1
1.2 BUSINESS LOCATION AND ADDRESS....................................................................................1
1.3 BUSINESS OWNERSHIP..............................................................................................................1
1.4 PRODUCT AND SERVICES.........................................................................................................1
1.5 JUSTIFICATION............................................................................................................................2
1.6 INDUSTRY......................................................................................................................................2
1.7 BUSINESS GOALS.........................................................................................................................2
1.7.1 Short term goals........................................................................................................................2
1.7.2 Medium term goal.....................................................................................................................3
1.7.3 Long term goal..........................................................................................................................3
1.8 ENTRY AND GROWTH STRATEGY.........................................................................................3
CHAPTER TWO.......................................................................................................................................4
MARKETING PLAN................................................................................................................................4
2.1 POTENTIAL CUSTOMERS..........................................................................................................5
2.2 MARKET SHARE..........................................................................................................................5
2.3 COMPETITION..............................................................................................................................6
2.4 PRICING STRATEGY...................................................................................................................7
2.5 SALE TACTICS..............................................................................................................................7
2.6 ADVERTISMENT AND PROMOTION STRATEGY................................................................8
2.6.1 Advertisement...........................................................................................................................8
2.6.2 Promotion..................................................................................................................................8
2.7 DISTRIBUTION STRATEGY.......................................................................................................9
CHAPTER THREE...................................................................................................................................9
ORGANISATION STRUCTURE AND MANAGEMENT PLAN........................................................9

iv
 3.1 BUSINESS MANAGER AND QUALIFICATION.....................................................................10
3.2 PERSONNEL NUMBER AND DUTIES.....................................................................................10
3.4 RENUMERATION AND IN CENTIVES....................................................................................13
3.5 REGULATION AFFECTING THE OPERATION....................................................................14
3.6 SUPPORT SERVICES..................................................................................................................14
CHAPTER FOUR...................................................................................................................................17
PRODUCTION AND OPERATION PLAN..........................................................................................17
4.1 PRODUCTION FACILITY AND CAPACITY..........................................................................17
4.2 PRODUCTION STRATEGY.......................................................................................................18
4.3 PRODUCTION DESIGN AND DEVELOPMENT.....................................................................20
4.3.1 Advantages of standard recipes.............................................................................................21
4.3.2 Advantages of standard yield.................................................................................................21
4.3.3 Advantages of standard portions...........................................................................................21
4.4 PRODUCTION PROCESS...........................................................................................................21
4.5 GOVERNMENT REGULATION................................................................................................23
CHAPTER FIVE.....................................................................................................................................24
5.0 FINANCIAL PLAN.......................................................................................................................24
5.1 PRE-OPERATION COST............................................................................................................24
5.2 ESTIMATION OF WORKING CAPITAL.................................................................................24
5.3 PROFORMER BALANCE SHEET.............................................................................................26
BREAK GIVEN ANALYSIS..............................................................................................................30
FINANCIAL RECRUITMENT.........................................................................................................31
PROPOSED CAPITALIZATION.....................................................................................................31

v
vi
 CHAPTER ONE

BUSINESS DESCRIPTION

1.1 BUSINESS NAME

The business name will be KEILER’S CHICKEN PALACE. Proprietor decided to come up with

the name given when I was young. The proposed business is scheduled to begin to operate early

next year by 25th January. I plan to make it a sole proprietorship form of business than as time

goes I will tell whether it can be a partnership.

1.2 BUSINESS LOCATION AND ADDRESS

The business is to be located in Eldoret Town within Tiret resort past Eldoret International

Airport. P.O box 1211-027 Eldoret contact 0702397782.The business will be functioning

17hours from 6:00a.m to 10:00p.m every day.

1.3 BUSINESS OWNERSHIP

Keiler’s Chicken Inn will be a sole proprietor since I will be the owner. I will be managing the

business because the proprietor is easier to make decision, enjoys own profit, has no retirement

and is the basis of the business. The initial capital to start the business will be seven hundred

thousand (700,000.00) which will be obtained from my savings ksh.260, 000.00, family

members ksh.200, 000.00 and equity bank loan 240,000.00.

1.4 PRODUCT AND SERVICES

Keiler’s Chicken Inn will produce products like: Roast chicken, deep fried chicken, chicken

curry, Grilled chicken and chicken sauces. Hand in hand it will offer different services which

are; making chicken by order from the customers, offer service of products to the customers at

1
the door place, providing parking of vehicles to customers who visit and guest will be offered by

a welcoming juice while waiting for order’

1.5 JUSTIFICATION
Keiler’schicken inn will be viable because of following;

The business will be located where there is high population of people

The business will employ qualified staff that will make the business run smoothly.

The suppliers will ensure that goods are supplied at the right time hence make the preparation of

food easier and customers will get the products at the right time.

Keiler’schicken inn will be surrounded by different competitors, this will motivate the proprietor

to work hard and achieve more unique products

1.6 INDUSTRY
Keller’s chicken inn will fall under the hospitality industry since it deals with food. The story

began when the inaugural chicken inn outlet opened in Harare, Zimbabwe in 1987. Its focus was

using the freshest locally sourced ingredients to produce a delicious and affordable menu. The

benefits of the industry is to encourage team work while helping people to work hard, to grow

morally by having good ethics and etiquette.

1.7 BUSINESS GOALS

Keller’s chicken inn goals will be divided into:

1.7.1 Short term goals

 To produce high quality products

 To make profit

2
  To sell the products at affordable price

1.7.2 Medium term goal

 To promote training skills to staff

 To enhance job security

 To make business to be well known through advertising

1.7.3 Long term goal

 To create employment

 To develop culture of achievement orientation

 To promote countries export trade

1.8 ENTRY AND GROWTH STRATEGY

Entry strategies: are ways in which the proprietor will use to penetrate in the market due to the

newness. Keiler’s Chicken Inn will use the following techniques:

Through advertising to different media like radio station

By having good relationship with customers

By using billboards along different routes

Growth strategy: are ways employed in order to stay and service in the market and technique in

the market expansion.

This will be done by:

 When the proprietor attend seminar trade meetings to learn new skills and ideas in order

to use in practice.

3
 Proprietor being innovative and creative to new products of high quality will encourage

the

 Customer’s to buy more products

 Reducing prices on special offers

 Researching to identify changes in customer’s tastes and their preferences

4
 CHAPTER TWO

MARKETING PLAN

2.1 POTENTIAL CUSTOMERS

A potential customer is a person who buys goods and services from a shop or business. Keiler’s

Chicken Inn will have customers due to where it will be located. It will be centered between

Tiret Resort and Eldoret International Airport where people within this areas e.g. passengers,

workers, business people and tourist will be able to access easily.

The proprietor will put into account the economic power because many people around the place

will be passenger; hence there is need to quality product at a reasonable price to all customers.

Keiler’s Chicken Inn will consider all people from any denominations hence it will be catered for

by giving quality and equal service so as to have good relationships among the customers.

Keiler’s Chicken Inn will serve the young and old from all the genders through this, it will be

able to serve everyone to satisfactory and bring achievement to the business.

2.2 MARKET SHARE

The market share refers to the specific portion that the entrepreneur will serve as compared to the

available competitors, and it is only concerned with population of customers that buy goods and

services offered by similar business.

The business will be within Eldoret therefore there are three competitors: Rupa Chicken Inn,

Zion Chicken Inn and Platinum Inn. The market consists of 15,000 customers who are mostly

passengers.

5
Keiler’s Chicken Inn will be competitive because it is easy to access services and to carry out the

production of products.

Key

Rupa Chicken Inn = 4000 = 40%

10%

Zion Chicken Inn = 3000 = 30% 40%

Platinum Inn = 2000 =20% 20%

Keiler’s Chicken Inn = 1000 =10%

30%

2.3 COMPETITION
Competition is the act of trying to win something such as a price of a higher level of success.

Every business must have competition and it must out perform its competitors in order to be the

best and increase number of customers, healthy competition brings in quality products and

services whereas unhealthy competition brings damage.

Keiler’s Chicken Inn will have direct competitors which are Rupa Chicken Inn, Zion Chicken

Inn and Platinum Inn, however it will not have any indirect competitors.

The following is a realistic assessment of Keiler’s Chicken Inn competitors.

Name of business Strength Weakness

Rupa Chicken Inn They are known for a long time Higher direct cost

Variety of products Manpower problems

Opened way earlier Rude to customers

Zion Chicken Inn Price are affordable Open late and closes early

6
 Greater flexibility Products are not of high quality

Professional staff Small premises

Platinum Inn Variety of products Financial limitation

Parking of customers vehicle Lack of acceptance

Less bureaucracy Not well known

After assessing the strength and weakness, the proprietor of Keiler’s Chicken Inn will do the

following in order to cope up with the competition; Discount prices, constant and aggressive

advertising products and making services and products accessible like take away.

2.4 PRICING STRATEGY

 Pricing strategy is the method used by the company to price its products set. Keiler’s

Chicken Inn will have the following information:

 Cost of raw materials - The proprietor must establish the total cost of producing unit of

product including the overheads and the required profit margins per unit. The total of

these will be the equal selling price.

 Customer’s demand - The proprietor will establish and identify how much the demand of

a particular product is needed by the customer and how accessible it is.

2.5 SALE TACTICS

Sale tactics is when the marketer use sale strategies in order to get customers to buy the products

and service.

The table below will show the tactics used in Keiler’s chicken inn.

Tactics used Benefits

7
 Open early All the early customers will get the products

Quality staff To produce quality products

Customer care To create good reputation

Advertise the business To make more customers to familiarize with the business

Providing enough space To allow easy movement

2.6 ADVERTISMENT AND PROMOTION STRATEGY

Advertisement involves non-personal issues. Advertising mostly concerns with paid campaigns

on mass media and seminars on health eating to deliver your message.

Promotion is the activity that communicates the merits of the products and persuades the targeted

customers to buy.

2.6.1 Advertisement
Keiler`s Chicken Inn will advertise its products to customers by;

 Billboards- This will be used to spread the message in high traffic areas such as long side

busy road to passing pedestrians and drivers

 Sign boards- It will be used as a symbol to communicate a message to the group of

people for the purpose of marketing the company

 Use of media- This will help to pass information through television, newspapers and

radio channels

 Use of brochures- other stuffs will be moving around giving fliers and brochures to pass

buyers

8
2.6.2 Promotion
Keiler`s chicken inn will promote its customers by;

 Giving juices when one is waiting for the order

 Having one free pack after buying two pack

 Giving training lessons at lower fee to customers who want to learn

2.7 DISTRIBUTION STRATEGY

This is the way the product and services are offered by the proprietor.

Keiler`s chicken inn being a start-up business all customers will be served at resident but the

food will be received as a take away which will be packed in an attractive and hygienic bag. All

the products produced will be displayed at the counter to make it easier for the customer.

The advantages will be;

 Many chairs will not be occupied

 There will be home and office delivery

The disadvantage will be;

 Many people may come hence slow services

9
 CHAPTER THREE

ORGANISATION STRUCTURE AND MANAGEMENT PLAN

3.1 BUSINESS MANAGER AND QUALIFICATION

A manager is someone who controls over a business.

Qualification

 Diploma in food and beverage

 Experience of at least three years and above

 Good communication skills

 Able to organize, plan and control the business

 To be good in decision making

Duties and responsibility

 Setting business standards

 Approving the budget reports

 Making of financial decisions

 Maintaining order as required

 Supervising and making sure each worker adheres to his or her work

10
 3.2 PERSONNEL NUMBER AND DUTIES

PERSONNEL NUMBER QUALIFICATION DUTIES AND

RESPONSIBILITES

Manager assistant 1 Diploma in food and beverage Advising the manager

Age 23 years and above Supervising of employees when the

A team worker manager is not in

In-charge of all activities in

absence of manager

Cook 2 Degree level in nutrition Cooks the chicken and serve the

Has experience for 3 years manager

Age 24 years and above Has opportunity to clean the

chicken inn

Cashier 1 Certificate in accounts Collect the customer money

Has experience in driving Helps to manage making financial

Age 23 years and above statements

Security 2 Certificate of good conduct Provides security to chicken inn

Has experience for 5 years male Gives parking cars card

of 35-40 years age Collect luggage for customers

11
RECRUITMENT, IN HOUSE TRAINING AND PROMOTION
Recruitment is the process that involves the identifying quality staff and encourages them to

apply for vacant positions. It is the process of choosing individual with relevant qualification to

fit in the relevant position in the business. The process of recruitment usually followed is;

Advertisement _ Receiving _ Application _ Short listing _ Interview _ Contacting successful

applicants

Orientation _Probation _Employing

ADVERTISING
Keiler`s chicken inn will advertise for the vacancies through Bill boards, Media and Sign boards

to reach many people.

RECEIVING APPLICATIONS
The proprietor will be receiving application by giving out deadliness and one can email his or her

Curriculum Vitae through [email protected]

SHORTLISTING

The proprietor will short list by giving qualification of strictly advertised job, age of the

applicants and gender.

INTERVIEWING

The proprietor will do the interview orally to the applicants. The proprietor will later contact the

successful applicant through their email.

12
CONTACTING

The proprietor will do the orientation and the day and date to report for work

PROBATION/EMPLOYMENT

The employing of staff will be done.

Training is the process of enhancing skills, capabilities and knowledge of employees for doing a

particular job. The company will use the job training method as it is simple and cost effective

training method. Training will be done in terms of team building and classes.

Promotion is the act of ascension of employees to higher rank. The company succession planning

will involve;

The review from customers

(ii) The way one does his or her work

(iii) The experience one has

3.4 RENUMERATION AND IN CENTIVES

Remuneration is the money that is paid to someone for a work or service done.

Incentives is the reward given to a worker to motivate the staff to do a good job. It is mostly

rewarded either at end of the month and others in the mid-month for motivation.

Designation Basic salary in ksh.

Manager 30,000.00

Assistant manager 23,000.00

13
 Chef 13,000.00

Cashier 10,000.00

Security 6,000.00

3.5 REGULATION AFFECTING THE OPERATION

Licenses, permit and by laws are factors to consider when operating a business.

License - are documents issued by government agencies that allows a business to operate without

issues. The business will require to acquire various licenses such as trading in order to operate.

Permits - are legal documents that offer proof of compliance with the current government rules,

laws, regulation structure and safety in a business.

By-laws - is a document that have specific regulation to follow in order to go by the rules set by

the government.

3.6 SUPPORT SERVICES

Support services are services that will help to boost business to ensure smooth operation.

Support services includes;

Electricity - It will be used to provide power for good working conditions.

Kenya Power,

P.O Box 421-027,

Eldoret.

14
Banking – it is used to keep money for future use and safety

Equity Bank,

P.O Box 333-027,

Eldoret.

Legal - it is used to provide justice in Uasin Gishu County.

Eldoret Law Society

P.O Box 653-027,

Eldoret

Postal - It is used to send and receive letters to people safely.

Kenya Postal Office,

P.O Box 111-027,

Eldoret.

Water- used to provide water to people for their daily use and better working conditions from

Uasin Gishu county council.

Water Service Board,

P.O Box 550-027,

Eldoret.

Security – it provide or secure the place you are doing your business.

K.K Security,

P.O Box 770-027,

Eldoret.

Insurance – Provides document that guide you through the business throughout the year.

Amaco Insurance,

15
 P.O Box 998-027,

Eldoret.

CHAPTER FOUR

PRODUCTION AND OPERATION PLAN

4.1 PRODUCTION FACILITY AND CAPACITY
Keiler’s Chicken Inn will be in a state to purchase and use equipment grouped into three

categories; large equipment, mechanical equipment and small equipment.

The chicken inn will purchase equipments to enhance quickness is food preparations whereas

promoting environmental conversation.

Buying this equipment Keiler’s chicken innwill have satisfied a list of factors to consider while

purchasing the equipment.

These factors are as follows;

 Capital available

 Type of food to produce

 Amount of food to be produced

 Their service and maintenance

 Space available at the premise

The following table shows the cost and equipment’s to be purchased at Keiler’s chicken inn.

Equipment Quantity Cost per unit Total cost Supplier

16
 Small

equipment; 10 pcs 200 2,000 Naivas

Knives 10 pcs 150 1,500 Supermarket

Potato peeler 10 pcs 100 1,000 Eldoret

Serving Spoon

Mechanical

equipment:

Oil strainer 1 pc 6,500 6,500 Naivas

Oven 1 pc 9,500 9,500 supermarket

Potato slicer 1 pc 7,500 7,500 Eldoret

Large

equipment: 1 pc 50,000 50,000 Naivas

Freezer 1 pc 30,000 30,000 Supermarket

Fridge 1 pc 20,000 20,000 Nairobi

Microwave

TOTAL 128,000

4.2 PRODUCTION STRATEGY

Production strategy is the foundation of products like cycle and execution plan for further

developments. It also allows the business to deal in specific target accidence and focus on the

products and customer attributes.

17
The following table shows ingredients and costs that will be used monthly in Keiler’s chicken

inn.

Type of material Quantity Cost per Total cost(ksh) Supplier

unit(Ksh)

Butchery;

Chicken 30kg 200 per kg 6,000.00 Kenchic

Chicken wings 20kg 260per kg 5,200.00 Kenchic

Gizards 10kg 230 per kg 2,300.00 Kenchic

Total

=13,500.00

Green grocery;

Onions 50kg 40 per kg 2,000.00 Quick

Tomatoes 50kg 50 per kg 2,500.00 Green

Garlic 2kg 20 per kg 40.00 Grocery

Total=4,540.00

Dry Grocery;

Salt 3kg 10 per kg 30.00 Naivas

Chicken curry 5kg 290 per kg 1,450.00 Supermarket

Cooking Oil 15 litres 100 per litre 1,500.00 Eldoret

Total=2,980.00

Dairy Products;

Eggs 10 trays 400 per tray 4,000.00 Brookside ltd

18
 Milk 300 litres 100 per litre 30,000.00 Brookside ltd

Double Cream 1 litre 50 per litre 50.00 Brookside ltd

Total=

34,050.00

Some of the foods will be seasonal to the market and therefore Keiler’s Chicken Inn will have a

second market which will be from different geographical areas in order to better the production

of food in all times despite the seasonality of the raw materials without fail.

The means of transport will carry products direct from the suppliers to the producer.

The following shows production capacity daily, weekly and monthly.

1+-+47563Product Daily production Weekly production Monthly

Production

Grilled chicken 100 pieces 700 pieces 2800 pieces

Chips 100 portions 700 pieces 2800 portions

Chips masala 150 portions 1350 portions 5400 portions

Roast chicken 200 pieces 1400 pieces 5600 pieces

Gravy Sause 100 glasses 700 glasses 2800 glasses

Chicken stew 300 portions 800 portions 3200 portions

Roast chicken wings 500 portions 1050 portions 4200 portions

Fried gizzard 100 pieces 700 pieces 2800 pieces

19
4.3 PRODUCTION DESIGN AND DEVELOPMENT
The product design and development in Keiler’s Chicken Inn will be used by;

Standard recipes- It is a protested recipes showing the ingredients, the require quantity and

quality and each specific procedure portion equipment’s, garnishes and other preparing

information.

Standard yield- It is the usable part of product after initial preparation or volume of a food item

after it has been processed and made ready.

Standard portion- It present the number of grams of a food cost item to be served to customers in

relation of food cost and selling price of the item.

4.3.1 Advantages of standard recipes

It helps in accurate costing

It helps to quick the production

4.3.2 Advantages of standard yield

It constants the yield

It helps in uniformity of the size and quantity

4.3.3 Advantages of standard portions

It presents the cost and selling price

It presents the number of food items

4.4 PRODUCTION PROCESS

Production is the process of turning raw materials into edible products.

20
The following steps will be used in the establishment;

Planning- it refers to organizing duties and functions of a business premises in order to achieve

the objectives of an enterprise.

Requisition- It refers to inquiring of goods and services that you want.

Purchasing- This is buying of commodities that you want.

Receiving – It is the act of getting the commodities that you purchased for.

Storing – It is keeping of commodities that you have.

Issuing – It is giving out of commodities that different departments require.

Preparing – It is mis-en-place done to get ready for the activity.

Cooking – It is converting of raw material to cooked.

Holding – This is the act where head of staff packs the product in various equipment.

Sales – It is the period that goods are being supplied to the market.

Cleaning – It is removing used equipment’s after use.

The following will be done to minimize the impact of the external factors.

Factors Remedy

Lateness of the suppliers Contracts binding will be signed by the

suppliers

Distance within the premises also will be

considered

Reduction of products Products must always be there to produce

food

21
 Unhealthy products Having our own farm

The suppliers must be vetted first to

determine their integrity

4.5 GOVERNMENT REGULATION

The regulations that will affect Keiler’s Chicken Inn will include; hygiene, fire act and safety.

The following table shows the permits and licenses that will be required in Keiler’s chicken inn.

Permits Source Cost (ksh.)

Trading license Uasin Gishu County Council 2,000

Catering levy license Catering levy union 1,000

Permit Uasin Gishu county Council 1,000

Healthy and safety Uasin Gishu County Council 1,000

Total Ksh.5,000

22
 CHAPTER FIVE
5.0 FINANCIAL PLAN

5.1 PRE-OPERATION COST

These are the cost that the business will incur before it sets its operation. It includes:-

Detail Items Cost

Advertisement 10,000

Deposit of Electricity 3,500

Deposit for Water 5,000

Deposits for rent 30,000

Telephone installation 1,500

Buying business mobile phone 4,000

Equipment 6,000

Raw materials 73,000

License/ Permit 2,500

Staff Uniforms 20,000

Opening business a/c 200,000

Office Furniture 48,000

23
 TOTAL 458,500

5.2 ESTIMATION OF WORKING CAPITAL

CURRENT ASSETS KSH

STOCK 150,000

Cash at Bank 200,000

Cash at Hand 100,000

Total 450,000

Fixed assets

Premises 300,200

Raw materials 132,760

Tool Equipment 347,910

Land 140,000

Pick-up 300,000

Total 1,220,870

Current Liabilities

Creditors 80,000

Bank loans 100,000

Total 180,000

Working capital=current assets-current liabilities

24
WC= CA-CL

WC= 450,000-180,000

= 270,000

5.3 PROFORMER BALANCE SHEET

BALANCE SHEET AS AT 31ST DEC 2025

Liability Fixed Assets

Ksh Ksh

Capital Premises

270,000 240,000

Net Profit Raw materials

1,620,070 130,760

Long Term Liabilities Tool Equipment

345,000

Bank loan Machine

100,000 18,000

Current Liabilities Furniture

2,000

Creditors Land

80,000 140,000

Toyota pick-up

300,000

25
 Current assets

Financed by Equity = Closing stock

2,070,870 130,000

Cash at bank

532,100

Cash at Hand

232,100

Total =

2,054,670

Balance SHEET AS AT 31ST DEC 2026

Ksh Fixed asset Ksh

Capital Premises

950,000 300,200

Net Profit Stationery

406,900 2,400

Long term liabilities Land

140,000

Creditors

65,700

Current assets

26
 Closing stock

80,000

Cash at bank

800,000

Cash at hand

100,000

Financed by Equity = Total =

1,422,699 1,422,600

6.3 PROJECTED CASH FLOW STATEMENT FOR 1ST YEAR

RECEIPTS JAN FEB MAR APRIL MAY JUN JULY AUG SEP OCT NOV DEC

Cash sales 180,000 145,000 287,000 182,000 274,0000 195,200 298,000 250,000 290,000 210,150 270,800 285,550

Loans received 150,000

Discounts 1,150

TOTAL 331,150 145,000 287,200 182,300 274,000 195,200 298,000 250,600 290,000 210,150 270,800 285,550

RECEIVED

PAYMENTS

salaries 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000

Electricity 200 200 200 200 200 200 200 200 200 200 200 200

Water bills 200 200 200 200 200 200 200 200 200 200 200 200

Insurance 500 500 500 500 500 500 500 500 500 500 500 500

Furniture 2,000

License 1,500

27
Legal Fee 300

Postage 200 200 200 200 200 200 200 200 200 200 200 200

Transport cost 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Advertisement 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Repair & 1,500

Maintenance

Machinery 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Cash Purchase 80,000 80,000 80,000

Miscellaneous 2,000

Total payment 170,900 83,600 83,600 83,600 163,600 83,600 83,600 83,600 163,600 83,600 83,600 83,600

Cash flow 160,250 61,400 203,600 98,700 110,400 111,620 214,400 167,000 126,400 126,550 187,200 201,950

28
6.4 PROJECTED CASH FLOW STATEMENT FOR 2ND YEAR

RECEIPTS JAN FEB MAR APRIL MAY JUN JULY AUG SEP OCT NOV DEC TOTA

(KSH

Cash sales 180,000 140,000 139,000 130,000 170,000 135,000 134,000 133,000 188,000 138,000 140,000 132,000 1,759

Loans 20,000 20,00

received

Discounts 2,000 145,000 287,200 182,300 274,000 195,200 298,000 250,600 290,000 210,150 270,800 285,500 2,690

TOTAL 202,000 140,000 139,000 130,000 190,000 135,000 134,000 133,000 208,000 138,000 140,000 132,000 1,821

RECEIVED

PAYMENTS

salaries 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 936,0

Electricity 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Water bills 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Insurance 500 500 500 500 500 500 500 500 500 500 500 500 6,000

License 1,500 1,500

Postage 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Transport cost 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,00

Advertisement 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,00

Repair & 1,500 1,500

Maintenance

Loan payment 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 150,0

Cash Purchase 80,000 80,000 240,0

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Total payment 177,600 94,800 94,800 177,800 177,800 94,800 94,800 94,800 177,800 94,800 94,800 94,800 1,386

Net Cash flow 24,400 45,200 35,200 44,200 35,200 12,200 40,200 39,200 38,200 30,200 43,200 45,200 432,6

BREAK GIVEN ANALYSIS

NARRATION AMOUNT

Variable cost

Electricity 3,800

WATER 3,000

Advertisement 2,000

Telephone 2,150

Stationery 9,000

Telephone 2,500

Maintenance 30,000

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 Loan Payment 52,450

Total 1,185,705

Total sales 3,800

Fixed asset

Salaries 516,000

Rent 72,000

License 12,000

N.H.I.F 6,000

N.S.S.F 10,800

Total 616,800

Contribution=Total Sales-Total variables

1,185,705-52,450

=1,133,255

Contribution margin= Total contribution

Total sale

1, 33,255

1,185,705

=0.95558%

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FINANCIAL RECRUITMENT
Pre-operation cost 47,000

Working capital 2,079,489

Office equipment 85,000

Stationery 10,000

Office Furniture 15,000

Machines 65,000

Total 2,301,489

PROPOSED CAPITALIZATION
Loan 50,000

Owner contribution 200,000

Total 250,000

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