BUSINESS PLAN

BUSINESS NAME : AKINYI’S JUICE RESTAURANT

CONTACT ADDRESS : P.O BOX 41 UGENYA

PRESENTED BY : ODHIAMBO MARTHA AKINYI

PAPER NUMBER : 1802/202

CENTER CODE : 737101

INDEX NUMBER : 7371010167

CENTRE NAME : RAMOGI INSTITUTE OF ADVANCED

TECHNOLOGY

PRESENTED TO : THE KENYA NATIONAL

EXAMINATION COUNCIL FOR
THE AWARD OF CERTIFICATE IN
FOOD AND BEVERAGE

EXAM SERIES : JULY 2024

NAME OF SUPERVISOR : CHRISTA AKOTH

DEDICATION
I dedicate this project to my beloved parents, and all my trainers at RAMOGI INSTITUTE OF
ADVANCED TECHNOLOGY for the support they gave while writing this business plan

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DECLARATION
I hereby declare that this business plan is my original work and has never been presented to any
institution for academic award.

NAME: ODHIAMBO MARTHA AKINYI

SIGNATURE:……………………… DATE:…………………………….

SUPERVISOR’S DECLARATION

This business plan has been presented to Kenya National Examination Council with my
Approval as the student’s supervisor

SUPERVISOR’S NAME: CHRISTA AKOTH

SIGNATURE:……………………… DATE:…………………………….

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ACKNOWLEDGEMENT
I sincerely would like to express my package of gratitude to all those assistance and cooperation aided to
the completion of this business plan.

Special thanks to my supervisor, Md.Christa Akoth who directed and supervised me in the writing of this
business plan and the principal and those administrations including the registrar for giving me the chance
to study in their institute.

Special thanks go to my parents, brothers, sisters for their moral and financial support. She gave me
during this project work to devote my energy for a better tomorrow.

In addition, special thanks goes to my friends, relatives and course mates who apparently supported and
pieces of advice they aided towards my work.

May the almighty God bestow her benedictions abundantly in all the endeavors?

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Contents
DEDICATION ............................................................................................................................................. i
DECLARATION ........................................................................................................................................ ii
ACKNOWLEDGAMENT ......................................................................................................................... iii
CHAPTER ONE ......................................................................................................................................... 1
SPONSOR’S DETAILS ........................................................................ Error! Bookmark not defined.
SPONSOR’S SHORT TERMOBJECTIVE ........................................... Error! Bookmark not defined.
1.2 NATUREOF THE BUSINESS ........................................................ Error! Bookmark not defined.
1.3 BUSINESSADDRESS AND LOCATION ....................................................................................... 2
FORM OF BUSINESS ........................................................................................................................... 3
1.5 TYPES OF BUSINESS OPERATION ............................................................................................. 3
1.6 ENTERPRISE PRODUCT .............................................................. Error! Bookmark not defined.
1.7 JUSTIFICATION OF OPPORTUNITIES ....................................................................................... 3
THE INDUSTRY ................................................................................................................................... 3
BUSINESS GOALS AND OBJECTIVES .............................................................................................. 4
ENTRY AND GROWTH STRATEGY .................................................................................................. 4
AKINYI’S JUICE RESTAURANTSWOT TABLE .............................. Error! Bookmark not defined.
CHAPTER TWO ........................................................................................................................................ 5
2.0 MARKETINGPLAN ........................................................................................................................ 5
2.1 CUSTOMER IDENTIFICATION STRATEGY .............................. Error! Bookmark not defined.
2.2 COMPETITION STRATEGY ......................................................... Error! Bookmark not defined.
2.3 MARKET STRATEGY ................................................................... Error! Bookmark not defined.
2.4 PROMOTION STRATEGY ............................................................ Error! Bookmark not defined.
2.5 PRICING STRATEGY .................................................................... Error! Bookmark not defined.
2.6 SALES TACTICS AND STRATEGY ............................................. Error! Bookmark not defined.
SALES TARGET STRATEGY ............................................................. Error! Bookmark not defined.
DISTRIBUTION STRATEGY .............................................................. Error! Bookmark not defined.
CUSTOMER SERVICE STRATEGY ................................................... Error! Bookmark not defined.
CHAPTER THREE .................................................................................................................................. 13
3.0 ORGANISATION AND MANAGEMENT PLAN ......................... Error! Bookmark not defined.
3.1 ORGANIZATION STRUCTURE ................................................... Error! Bookmark not defined.
3.2 COMMUNICATION CHANNEL ................................................... Error! Bookmark not defined.
 3.2 MANAGEMENT TEAM ANDSUPPORT STAFF MANAGEMENT TEAM..... Error! Bookmark
not defined.
3.3 RECRUITMENT, TRAINING AND PROMOTION ...................... Error! Bookmark not defined.
3.4 REMUNERATION, INCENTIVESAND RETAINING STAFF ..... Error! Bookmark not defined.
3.5 HUMAN RESOURCESLEGAL REQUIREMENT ........................ Error! Bookmark not defined.
3.6 BUSINESS SUPPPORT SERVICES .............................................. Error! Bookmark not defined.
CHAPTER FOUR .................................................................................................................................... 13
PRODUCTIONANDOPERATION PLAN........................................................................................... 22
4.0 PRODUCTION FACILITIES, MACHINES ANDEQUIPMENT ............................................ 22
4.3 PRODUCTION AND OPERATION PROCESS ............................................................................ 23
4.4 PRODUCTION OPERATION PROCESS STRATEGIES ............................................................. 24
4.5 PRODUCTION LEGISLATION .................................................................................................... 25
CHAPTER FIVE ...................................................................................................................................... 27
5.0 Finance management plan ............................................................................................................... 27
5.1 Pre-operational cost ........................................................................................................................ 27
5.2 Working capital ............................................................................................................................... 27
5.4 AKINYI’S JUICE RESTAURANTSTATEMENT OF FINANCIAL POSITION IN KES’000 ..... 29
5.5 FIXED COST ................................................................................................................................. 29
5.6 VARIABLES COST ....................................................................................................................... 29
5.7 PROFITABILITY /ECONOMIC RATIOS..................................................................................... 30
5.8 DESIRED FARMING .................................................................................................................... 31
5.9 CAPITALIZATION ....................................................................................................................... 31
5.10 FINANCE MANAGEMENT SWOT............................................................................................ 31

APPENDIC................................................................................................................................................30
CHAPTER ONE
1.0. BUSINESS DESCRIPTION
BACKGROUND OF THE OWNWER
The owner of the business will be Mrs. Odhiambo Martha Akinyi, 23 years old, legally unmarried,
address box 41 Ugenya, she is an hotel lady and of certified holder of food and beverage production
and services management apart from that she is also an expert in information communication
technology and holder of business administration Mrs. Martha has been a manager in several hotels
but currently she is the receptionist head waiter

Business name

The name of the business shall be AKINYI’S JUICE RESTAURANT hotel

The owner used the African name to come up with the name of the business

Business logo will be

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 1.3 BUSINESSADDRESS AND LOCATION
i. BUSINESS ADDRESS
AKINYI’S JUICE RESTAURANT will be located in the Ugenya town along Kisumu –Busia
highway 1.8km from Ugenya town ,physical address will be P.o box 41 Ugenya .
Email address will be [email protected]

SEGA AKINYI’S
ATDC JUICE
RESTAURANT
To To Busia
Kisumu

Sega town Ardhi House

To Siaya Town

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1.4. FORM OF BUSINESS
Akinyi’s restaurant hotel will be a sole proprietorship being owned by Mrs Odhiambo Martha Akinyi

I choose sole proprietorship due to the following reasons

i. Enjoy profit alone

ii. To have job security
iii. Make it easy

On Other Side Sole Proprietorship Has the Following Limitations

i. owner bears all risk alone

ii. if one dies the business must collapse
iii. quick decision making

1.5 TYPES OF BUSINESS

AKINYI’S JUICE RESTAURANT hotel is a startup business some of the activities the business will be
involved in the

i. . provision of food and beverages

ii. provision of accommodation
iv. provision of comfort and security

The benefits of the customers can obtain from our products and services are the following

i. quality services
ii. high level of privacy
iii. nutritious breakfast

1.6 JUSTIFICATION OF OPPORTUNITIES

i. OWNERS BENEFIT
The profit from the business is enjoyed by the sole proprietor, She also gets a chance of reaching
her dream of eradicating unemployment and running the company to success.
ii. COMMUNITY BENEFIT
the community living around the company will benefit from the business through employment,
this will benefit from the business though employment, this will control unemployment rate and
young people will be in a position to earn a living. The company will be in a position to reduce
the scurvy diseases that attack young children in the community.
iii. NATIONAL BENEFIT
The enterprise will be in apposition of paying taxes which will help in raising the economy of the
country.

1.7. THE INDUSTRY

i. The AKINYI’S JUICE RESTAURANT belong to her hospitality industry
ii. The following activates happens in the hospitality industry are

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Hospitality industry handles all customers with respects, care and dignity regardless of their states

iii. Capitalization
Fruit Juice in Kenya Capitalization is measured in terms of production assets values owned.e.g
Del Monte ltd in Kisii, Kisumu and this is estimated to Kshs. 2.5milliion.

BUSINESS GOALS AND OBJECTIVES

BUSINESS GOALS

To be feared catering premise in Ugenya town and Siaya County that provides hospitality services to
customers

BUSINESS OBJECTIVWES

To provide best, quality and unique hospitality services to customers.

ENTRY AND GROWTH STRATEGY

AKINYI’S JUICE RESTAURANT has advantages against the competitive such as affordable prices,
menu is easy to understand and produce security and population

The weakness of other competitors is over charging customers, conman ship, poor hygiene condition,
insecurity.

The plans to attract more clients to AKINYI’S JUICE RESTAURANT hotel are

i. Use of cautions way of handling customers

ii. Providing quality staff
iii. Importance of hygiene

AKINYI’S JUICE RESTAURANT SWOT

Strength Weakness High interest
Good planner No money and equipment Competition from other firms
Increased customers No being able to process juice
in time
Table 1.2

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CHAPTER TWO

2.0 MARKETING PLAN

2.1 THE CUSTOMER

AKINYI’S JUICE RESTAURANT hotel potential customers will be trainees

Advertisement and promotion

AKINYI’S JUICE RESTAURANT hotel will be advertising

For successful marketing of products, the entrepreneur would target a group of customers
available in the market.

2.1.1 Individual customers

Is a customer who is a natural person? Also is any and all individual customers who are
purchasing a product (as hereinafter) other than for resale and that are not exclusive customers.
Our business will reach these individual customers through generating awareness of the need for
what we will offer as the business in the establishment. Try to give more attention to such clients
in order to retain them within your business because most of them are of help.

2.1.2 Institutional customers

Institutional custom is a term used in the financial services industry to differentiate retail
customers and corporate customers from other financials such as banks, insurance companies
and investment management companies. The business will reach these customers through the
identification of the target audience that are very accurate by giving out the correct figure of the
things that were spent. They always tend to spend a lot just get lots of good quality services.

2.1.3 Commercial Customers

They include retail establishments, restaurants, motels and hotels, health care facilities, office
buildings and government agencies. Like in U.S.A more than 5million commercial customers
use natural gas and more than 18.5million commercial customers use electricity. The business
will reach these customers through offering discounts and incentives for new customers.

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2.1.4 Discounts customers
Discount customers are also frequent visitors but they are only a part of business when offered
with discounts on regular products and brand they buy only low-cost products. More is the
discount the more they tend towards buying. Business can reach these people through giving out
to the customer discounts on products to encourage them to make more purchases.

2.1.5 Loyal customers

Customers loyal describes an ongoing emotional relationship between you and your customers,
manifesting itself by how willing a customer is to engage with and repeatedly purchases from
you versus your competitors. The business will reach these customers by activating loyalists to
help the management spread the word. Also, this kind of customers always tells truth and I'm
good things about your business after having a good experience while this.

2.1.6 Impulse customers

Impulse purchases or impulse buying is an unplanned decision by a consumer to a customer to
buy a product or service made just before a purchase. One who tends to make such purchases is
referred to as the impulse purchaser. The business management can get in touch with such kind
of customers through making the customers to buy goods and services without planning in
advance.

2.1.7 Potential customers

A company's potential cusy is usually referred to as a prospect. It is a person who has the
potential to be interested in the services and products that are being offered by the company but
has not yet purchased. A business can reach such customers by listening to the customer’s
feedback to help them where necessary.

2.2 MARKET SHARE ANALYSIS

After carrying out a feasibility study of the entire market, the entrepreneur established that the
market has got a total of 3,000 customers and are shared amongst the four main competitors as
outlined below.

Sultans restaurant 900

900
x 360º = 108º
3000

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The Villa restaurant 1000

1000
x 360º = 120º
3000

Soila's restaurant 800

800
x 360º = 96º
3000

Lifestyle restaurant 300

300
x 360º = 36º
3000

The above information is statistically represented in a pie chart as shown below

Sales

Sultans
restaurant
144º
72º The Villa
restaurant
36º
Soila' restaurant

108º
Lifestyle
restaurant

According to the pie chart, Sultan’s restaurant 108˚of the market, which is 900 customers. The
Villa restaurant commands 120˚of the market, which is 1000 customers. Soila's restaurant
commands 96˚of the market, which is 800 customers. Lifestyle restaurant commands 36˚of the
market, which is 300 customers. However, the entrepreneur would employ competitive market

7
strategy to increase her market share within a period of one year and eventually working towards
becoming the market leader.

2.3 PRICING STRATEGIES

Since profit maximization is the aim of every entrepreneur. The entrepreneur would charge
prices that would help to recover production cost and operational expenses. The price to be
charged by the entrepreneur would be inclusive of the profit as well.

2.3.1 Penetration Pricing

Penetration pricing is a pricing strategy where the price of a product is initially set to rapidly
reach a wide fraction of the market and initiate word of mouth. The strategy works on the
expectations that customers will definitely switch to them.

2.3.2 Competitive Pricing

Is a market strategy whereby business set prices based on their competitors’ prices. Also kwon as
competitor based pricing, this strategy can be used in online and offline market and is often used
to attract more customers and Increase market share.

2.3.3 Maximum Price Skimming

Price skimming is a product pricing strategy by which a firm changes the highest initial price that
customers will pay and then lowers it over time.

2.3.4 Psychological pricing

Is a pricing and marketing strategy based on the theory that certain prices have to a psychological
impact. In this pricing method, the retail prices are often expressed as just below numbers that
are just a little less.

2.3.5 Economy pricing

It involves setting low prices for products with minimal production costs. Its aim is to capture the
interests of the most price sensitive users who responded best to offer and promotional related
calls to action. Its normally associated with generic products or basic services.

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2.3.6 Dynamic pricing
It is also referred to as surge pricing, demand pricing or time-based pricing, is a revenue
management pricing strategy in which business set flexible prices for products or services based
on current market demands.

2.3.7 Cost-plus pricing

Is pricing story by which the selling price of a product is determined by adding a specific fixed
percentage to the product unit? Essentially the markup percentage is a method of generating a
particular desired rate.

2.3.8 Value based pricing

Is a pricing strategy of setting primarily based on consumer’s perceived value of a product or
service? It is a customer_ focused meaning that companies base on their pricing on how much
the customer believes a product is worth.

2.4 PROMOTION STRATEGY

To create awareness of the business and the products that it produces, the entrepreneur would use
promotion strategy. This is done to persuade customers to buy the product. The strategy also
helps the customers in making decisions about the products, since promotion would highlight
key features of the product.

Promotion strategy would be carried out through two broad ways like; salesmanship and
advertisement.

2.4.1 Advertisement
2.4.1.1 Television advertising
This will promote our website, social media channels through the TV ads and it's wise to include
a CTA that will be sending reviews to customers directly by showing them on the screen as it's
show live.

2.4.1.2 Radio Advertising

It will make our audience to know that we are the advertiser even before the brand name is
mentioned on the spirit by developing a strong audio branding technique in case of Radio Jambo
91.7 FM

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2.4.1.3 Podcast advertising
It will basically imply on promoting and selling of the products or service through audio content
that helps to reach the new audience by telling a story about the brand being offered

2.4.1 4 Mobile advertising

It includes the promotions sent through sms, text messaging, multimedia messaging, through
downloaded apps by using push notifications.

2.4.1.5 Social media advertising

It will enhance the creation of content that is interesting and engaging, customers can reach into
a wider audience by encouraging them to purchase products from our platforms.

2.4.1 6 Paid search advertising

Set up an account, identify the search term you want to target on and create an ad and set the
daily advertising budget, like Google ads is completely measurable.

2.4.1.7 Billboards advertising

This type of advertisement will advertise products on billboards which will be located in a good
strategic point like the roundabouts and also along highways whereby everyone will be able to
see them clearly, read and understand the information written on it well. It will mostly dwell on
marketing of the products and services; this will be done mostly when the schools have been
closed because most parents this type of experience with their children.

2.4.1.8 Newspapers
These carries out the advertisement in country newspapers which have already been read and are
still most likely to be on market for a long time. Thus, will reach many different people anytime
and anywhere because this are many different lands if newspapers like Daily nation newspaper
and Taifa Leo newspaper are mostly preferred because they give a clear accurate information to
anyone who is fond of newspapers.

2.5 DISTRIBUTION STRATEGY

Digital hardware would adopt the following distribution channel;

AKINYI’S JUICE RESTAURANT consumers

10
The entrepreneur would produce the products in large scale and the products will be distributed
directly to the consumers to avoid delaying of products during distribution. The entrepreneur
would ensure that the distribution channel is always short so the products ordered can arrive on
time without any delay.

2.6 CONSUMER SERVICES STRATERGY

Digital hardware will adopt the following strategies in serving the customers.

2.6.1 Offering High Quality Products

Ensuring high quality products and services are one way to help you get more customers to
appreciate and believe in what you have to offer. Humanizing the company can also help you to
connect with your customers through introducing your new brand in the market hence enabling
your establishment to grow and be well known by many. This will also enhance your business to
be among the best restaurants that makes good delicious foods that can be afford by all.

2.6.2 Establish Customer Care Unit

Let them know that they are appreciated. You might even offer discount, free samples and
promotions consistently, great customer service you incentivize repeat busy and try to draw new
customers in over time. This will bring up a big help whereby the organization will be able to
expand its reach and even increase in its sales. This will bring a big great change in the
establishment that will incur in overcoming loses.

2.6.3 After Sales Services

High quality after sales activities may include a promptly through answering all of the customers
questions, providing a setup or on boarding support by maintaining contact through customers
loyalty programs or even writing a personalize thanking note to make your customers to feel
remembered and well appreciated by your establishment hence crating a good relation between
the company and the customers.

2.6.4 Giving Warranty to Customers

By offering warranties, you can make the customer to feel a lot safer I making the purchase
because they know that they can trust your business to cover the cost of repairs or are placement
if the product does not work. Give them all the information they need to make the decision that is

11
truthfully tight for them. Do not make a mistake of lying to your customers because the moment
the y out, they might run away.

2.6.5 Giving Free Gifts and Promotions

Use the free gifts strategy if possible. If you want your customers to perceive a higher price of
the main item in the promotion more. If you want your customers to purchase more of the main
item in the promotions or if you want to reduce how many customers will return your product
maybe after buying it from your business.

2.6.6 Re-contact old customers

The business management can still recontact the old customers by either letting them know that
the services and the product that were being offered back then are available at an affordable price
or may contact them to know how they are fearing on after such a long time as a customer.

2.6.7 Host a customer event

Hosting a customer event will eventually bring a good relationship between your company and
the management that will enable your customers to be more often to come to your establishment
more often just to boost your business. It will also increase the number of customers in your
restaurant since the offers, services and products that your company is giving out to customers
are genuinely for appreciation.

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CHAPTER THREE

CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 ORGANIZATIONAL STRUCTURE

The organizational structure of digital hardware would be as shown below

DIRECTOR

HUMAN SALES
FINANCE
RESOURCE MANAGER
MANAGER
MANAGER

RECEPTIONIST ACCOUNTANT SUPERVISOR

Digital hardware would employ a director in the top position. The business would also employ
the human resource manager, the finance manager, the services manager, the Receptionist, the
accountant and the supervisor.

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3.2 MANAGEMENT TEAM
To ensure that it function successfully, the entrepreneur would look for strong, competent and
skilled management team. The management team would comprise of the top manager, that is, the
director, middle level managers which would include, human resource manager,

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3.3 OTHER BUSINESS PERSONEL
3.3.1 Cook
Responsibilities

a) To oversee recruiting, interviewing and hiring of new staff

b) Design a motivating structure for the employees
c) Consulting with the top executives on strategic planning
d) Maintaining employee data
e) Formulation of policies in the business
f) To maintain work culture in the business
g) Mediating employee conflict
h) Assist the director in discipline and termination of employees

Qualifications

a) Must possess bachelor’s degree in business with specialization in human resource

management
b) Must be thirty years of age and above
c) Must have three years of experience
d) Must have good communication skills
e) Must be a Kenyan citizen
f) Must be responsible

Remuneration

The expected salary would be Ksh. 10,000

3.3.2 Receptionist
Responsibilities

a) Supplying guests with refreshments as they wait.

b) Maintaining calendars for the office be coworkers.

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c) Greeting guests as they arrive.

d)Answer phone calls and emails from clients.

e) File important documents and keep them well organized

Qualifications

a) Must be an active listener

b) Must pisses bachelors, degree in communication or business

c) Must have excellent communication and interpersonal skills

d) Must have prior experience with Microsoft office and typing

e) Must possess high school diploma

Remuneration

The expected salary would be Ksh.15, 000

3.3.3 Waiter

Responsibilities

a) Offering recommendations to spell appetizers, desserts or drinks.

b) Welcoming the guest seating them.

c) Memorizing the menu.

d) Taking guests orders

e) Communicating the effective to the kitchen and even in addition.

Qualifications

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a) Attention to detail

b) Ability to evaluate customer’s satisfaction and responsiveness.

c) Effective communication and active listening skills for conversing with guests.

d) Manners Good manners are important trait for every good waiter

3.3.4 Watchman
Responsibilities

a) Ability to write accurate reports on incidents

b) Willingness to work or on unusual shifts

c) Ability to think and act quickly in emergencies

Qualifications

a) Security training

b) A high school diploma

c) GED certificate

Remuneration

The expected salary would be Ksh.8, 000

3.4 RECRUITMENT, TRAINING AND PROMOTION OF PERSONEL

For successful operation, AKINYI’S JUICE RESTAURANT would recruit a team of competent,
qualified and skilled personnel to help in carrying out the business’ functions.

3.4.1 Recruitment
The business will attract the qualified personnel by recruiting them. This will be conducted
through creating an attention by advertising the posts on social media platforms, televisions and
radios. It will therefore help the organization to get good employees

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3.4.2 Training
The business will improve general skills processed by workers through training in a simple and
appropriate ways like holding up workshop sessions. This will be done the employees with new
skills for conducting their jobs effectively hence creating a cooperative team in the
establishment.

3.4.3 Promotion
This will create criteria in promotions of customers through their qualifications, experience etc
by making working personnel to be on a higher level of working as it encourages other
personnel’s to be more attentive and be self-disciplined.

3.5 REMUNERATION AND INCENTIVES

3.5.1 Remuneration.
It includes things like salaries, wages, fees and etc Therefore this will be an appropriate reward
policy that will motivate and attract the employees. Payments will be done through

3.5.2 Incentives
The establishment will also offer incentives like allowances, overtime, commissions etc to attract
and motivate customers to be more vigilant with theirs thus encouraging them to work hard.

3.6 LIENSES AND PERMITS

In order to comply with statutory regulations governing business, the entrepreneur would obtain
the following legal requirements from the required office.

3.6.1 Licenses
Akinyi’s Juice Restaurant would obtain a trading license from Busia County Municipality office
after paying a stipulated license fee of Ksh.10, 000with the government regulations.

18
3.6.2 Permit
It will make the selling of property easier and it will improve on safety because with permit it is
easier to save money. This helps to protect property values that are an investment. Properties
injuries may not cover work or damages caused by work done without permit and inspections.

3.7 SUPPORTING SERVICES

For successful operation of the business, digital hardware would seek business supporting
service from different services. The entrepreneur would contact the following service providers
to provide relevant business service.

3.7.1 Banking Services

AKINYI’S JUICE RESTAURANT would liaise with Cooperative Bank for provision of a
number of services of financial services which include;

a) Credit cards

Paying with credit cards makes it easier to avoid losses from fraud. A good credit score can help
to get better interest rates for things like loans. Earning money rewards can be a greater
advantage of having a credit card.

b) Online banking

It will help customers to pay bills online. They can transfer funds between accounts and this will
be banking wherever they need to be in which customers will check balances on accounts and
view records of their transactions.

The address of the service provider would be

Co-operative Bank

Busia branch

P. O Box 31-50400, Busia

Telephone number +2547-08-573385

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3.7.2 Insurance
AKINYI’S JUICE RESTAURANT would liaise with Britam Insurance Company for provision
of a number of services which include;

a) Fidelity

This type of policy is good because one is able to cover up losses from the employees
especially those who are handling cash.

b) Workers communication insurance

Workers communication insurance provides the coverage not only for you but also for your
employees most especially in an event if work accidents.

c) General liability insurance

General liability insurance helps to protect your business from claims that are caused through
property damage to another person's belongings and bodily injury to someone else.

The address of the service provider would be

Britam Insurance Company

Busia branch

P. O Box 31_50400, Busia

Telephone number +2547_08_573385

3.7.3 Security Services

Akinyi’s Juice Restaurant would liaise with G4S Security Company for provision of a number of
services of security services which include;

a) Security officers are tasked with securing the premises and personnel by stating on patrol,
monitoring surveillance equipment are, performing building inspections and verifying
visitors.

20
 b) The enterprise will partner with G4S Security Company because they are highly trained
and will be providing security when money is being transferred from the firm to the bank
and to the entrance.

The address of the service provider would be

G4S Security Company

Busia branch

P. O Box 31_50400, Busia

Telephone number +2547_08_573385

3.7.4 Legal Services

AKINYI’S JUICE RESTAURANT would liaise with Etyang Oroni and Co Advocates for
provision of a number of services which include;

I) Guiding key business stakeholders on the legal context or implications certain situation
or decision
II) Provide key regulation and legal oversight to ensure that liability is avoided and that all
business activities remain compliant

The address of the service provider would be

With Etyang Oroni and Co Advocates

P. O Box 31_50400, Busia Branch

Telephone number +2547_08_573385

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CHAPTER FOUR

PRODUCTION AND OPERATION PLAN

Introduction
AKINYI’S JUICE RESTAURANT tinted to produce and operate the below strategies
production facilities, machines and equipment capacity utilization, production of
operation strategies, production registration and production plan. The table is explained
in the below section.
4.0 PRODUCTION FACILITIES, MACHINES AND EQUIPMENT CAPACITY UTILISATION
AKINYI’S JUICE RESTAURANT will acquire production facilities in form of manager
office washroom, cold storage room and process room and offloading and loading Juice s
as provided in the table 4.1

AKINYI’S JUICE RESTAURANT PRODUCTION FACILITIESIN KES ‘000 PER

MONTH
Facility Date Quantity Capacity Unit cost Total cost
Manager Dec 2024 1 3m*3m 2 2
office
Washroom 2024 2 2m*2m 1 2
Storage 2024 1 3m*3m 2 2
room
Process 2024 1 3m*3m 2 2
room
Total N/A 5 31m2 N/A 8

AKINYI’S JUICE RESTAURANTFACILITIES LAYOUT DIAGRAM

2 Legend
1. Manager office
1 2. 2. Washroom
3. 3. Storage room
4. Processroom

4 3

22
 ii. PRODUCTION MACHINE
Akinyi’s Juice production and supply plans to secure heavy duties. Juice blender, Juice Parlour
pillars, heavy duty Juice Parlour weighing machine and heavy duty Juice packages as provided in
table 4.2
AKINYI’S JUICE RESTAURANT MACHINE IN KES’000
Machine Date Quantity Capacity Unit cost Total cost
Blending 2024 2 100 liters per 20 40
machine hour
Juice pillars 2024 2 100 kilogram 20 40
per hour
Juice 2024 2 100 litres per 19 38
packages hour
Weighing 2024 2 100 litres per 20 40
machine hour
total N/A 8 N/A N/A 150
iii. PRODUCTION EQUIPMENT
AKINYI’S JUICE RESTAURANT production equipment will include, strainers, jugs, knives and
ladles as in table 4.3

AKINYI’S JUICE RESTAURANT equipment in Kes’000

Equipment Date Quantity Capacity Unit cost Total Cost
Strainers 2024 4 150 litres 0.3 1.2
Knives 2024 30 60fruits per 0.2 6.0
hour
Jugs 2024 32 25 litres 0.3 96.0
Ladles 2024 15 25 ml 0.5 75.0
Total N/A 81 N/A N/A 178.2
Risk management
To manage the stated production equipment required by AKINYI’S JUICE RESTAURANT, he
will be able to go to under loaning process from KCB bank to enable him buy the equipment for
ease production of juice.
iv. PRODUCTION MACHINE EXPANSION PLAN
AKINYI’S JUICE RESTAURANT as the below equipment in Siaya town. Namely strainers steel
lines, heal and heat resistant jugs and ladles numbered 64 pieces. In the year 2018, he will

4.3 PRODUCTION AND OPERATION PROCESS

iv. Production Utility Services schedule
AKINYI’S JUICE RESTAURANT will require electricity, distilled water and telephone services
during processing of quality organic Juice Parlour as in table 4.6
BEATRICE AKINYI’S JUICE RESTAURANTS UTILITY SERVICES SCHDULE IN KES
‘000 PER MONTH
Service Date Quantity Unit cost Total cost
Production Jan 2025 1000 kwh 20 20,000

23
 electricity
Distilled water Jan 2025 100 litres 10 1,000
Airtime credit Jan 2025 1680 mm 5 8,400
Packaging Jan 2025 112000 bottles 3 336,000
materials
Transport Jan 2025 8400km 50 420,000
Total N/A N/A N/A 785,400
Table 4.6
v. Production technology
AKINYI’S JUICE RESTAURANT will also use comprehensive technology when processing
juice. This method employs an equal number of people and machines, it enables AKINYI’S
JUICE RESTAURANT to cost employment for unemployed youths in East Africa and minimize
cases of insecurity e.g theft cases. The machine employed will enhance productivity expressed as
quality of Juice Parlour produces per hour as it enables him to sell high volumes at a higher
profit.
vi. Quality control
AKINYI’S JUICE RESTAURANT will control quality of organic juice from the start of
purchasing healthy organic Juice fruits from Taita Taveta and the neighboring Tanzania and East
African countries. The Juice s will be transported in refrigerated tanks to prevent them from going
bad and influences. By high temperatures. At AKINYI’S JUICE RESTAURANT factory, Juice s
will be sorted out in sizes, washed thoroughly with clean water to remove dirt and harmful
bacteria. The outer cover will be removed and fresh fruit fed into the heavy duty fruits blending
machines with addition of Sugar and Juice food colour as per formula. The sample will undergo
tastings approved by KEBS and attractive to customers’ tastes and preferences.
vii. Unit produce
AKINYI’S JUICE RESTAURANT factory in Sega town will process 2000 litres multiplied by 20
days to produce 56000 litres per month at minimum.
viii. Cost of production
The actual cost of production is a summation of production, labour, production material and
production of utility services as calculated as sh. 102,000+1,142,780+785,400 summing to
2,030,180
ix. RISK MANAGEMENT
The business will involve use of a comprehensive technology which its function may be defeated
as some machines require electricity to operate. This can be curbed by installing an automated
power supply that is generators. To facilitate power supply during cut outs

4.4 PRODUCTION OPERATION PROCESS STRATEGIES

Step 1. Juice Parlour customers’ requirement

The sales person of AKINYI’S JUICE RESTAURANT will collect all data from the customers about
quality of Juice juke required in terms of taste, smell, colour and quality packages.

Step 2. Juice Parlour production planning

Beatrice AKINYI’S JUICE RESTAURANT, with the help of process foreman will make a work plan for
processing fresh organic Juice Parlour stating good and objective activities.

24
Step 3. Juice Parlour production material requisition
The farmers with process technician will request for fresh organic Juice fruits, sugar, food colour and
distilled water.

Step 4. Juice Parlour production

The Juice fruits will be washed thoroughly to remove dirt and germs, fade into the blending machine with
sugar, food colour and distilled water. The processes Juice Parlour be tested and confirm the requirement
of Kenya Bureau o Standard and furthis into containers ready for storage.

Step 5. Juice
The packaged organic Juice Parlour into plastic bottle kept in the ordinary storage from awaiting
distribution to customers who have placed their orders.

JUICE PARLOUR PRODUCTION FLOW CHART

Production of quality Juice fruits is shown diagrammatically in figure 4.2

1 2 Legend
1. Customer requirement
2. Production planning
3. Production material requisition
4. Passion production
3
5. Storage and distribution

5 4

RISK MANAGEMENT
Storage rooms may not be enough to accommodate processed products. The manager should ensure more
structures are built and expanded. During the distribution of fresh organic Juice Parlour may be costly as
fuel and good transport is needed for faster transportation. For this good planning should be considered
before transportation.

4.5 PRODUCTION LEGISLATION

i. Public Health act
The law of republic of Kenya states that workers must be helping in dispossession of health
examination certificate production places must be cleaned and have washroom to prevent
contamination of products being produced to customers these will ensure fresh Juice Parlour
produced being produces is safe and not contaminated and do not poison the consumer. She will
download website absolutely per shillings
ii. Risk management
AKINYI’S JUICE RESTAURANT will process Juice 6 days per week from Monday o Saturday
according to time schedule in Table 4.7

25
AKINYI’S JUICE RESTAURANT PRODUCTION TIMETABLE
Time Activity Mon Tue Wed Thur Fri Sat
8 am Sorting Juice s x x x x x X
9 am Washing Juice X x x x x x
10 am Tea break X X X X X X
10.30 am Processing juice X X X X X X
1 pm Lunch break X X X X X X
2 pm Packaging juice X X x x x X
3 pm Storage of juice X X X X X X
4 pm Cleaning X X X X X X
5 pm Closing x x x x x X

26
CHAPTER FIVE
5.0 Finance management plan
Introduction

This chapter highlights the finance plan of AKINYI’S JUICE RESTAURANT that entails the pre-
operational cost, working capital, cash flow statement, statements of comprehensive income statement of
financial position, break even analysis, desired financing, capitalization profitability rates and finance
management swot stated in the below section.

5.1 Pre-operational cost

AKINYI’S JUICE RESTAURANT projects the preoperational cost as shown in the table 5.1

AKINYI’S JUICE RESTAURANT PROJECTED PRE OPERATIONAL COST IN KES

‘000
Item description Dates Quantity Unit cost Total cost
Juice Parlour marketing research 1 2 2
Business plan 1 2 2
Office rent 7 1 7
Furniture 3 8 56
Fixtures 20 2 6
Machines 13 7 140
Equipment 13 10 130
Telephone 1 3 3
Electricity 100 0.3 30
Water 45 0.5 22.5
Trade license 1 1 1
Trade permit 1 1 1
Recruiting staff 3 1 3
Transport 10 3 30
Total N/A 41.8 433.5
Table 5.1

5.2 Working capital

The working capital for the AKINYI’S JUICE RESTAURANT will be the value of current assets minus
the current liabilities as expressed as CA-CL=WC as provided in table 5.2

AKINYI’S JUICE RESTAURANT WORKING CAPITAL

Current assets Amount
Cash at hand 50
Cash in bank 60
Stock 70
Debtors 5
Total C.A 185

27
Current liabilities (CL) Amount
Creditors 10
Bank overdraft 40
Accruals 5
Total C.L 55

Current assets 185

Current liabilities 55

Total 130

Table 5.2

AKINYI’S JUICE RESTAURANT STATEMENT OF COMPREHENSIVE INCOME IN KES ‘000

Item description Year 2024 Year 2025 Year 2026
Sales 25550
Cost of goods sold 120
Gross profit 25430
Expenses
Loan repayment 0 0 0
Creditors 100 100 100
Wages(support staff) 273.1 274.5 279.8
Rent of premises 500.1 548.5 550
Water bill 415 396.6 400.6
Telephone bill 36.9 42.2 44.2
Internet bill 34 35.3 35.9
Electricity bill 534.5 694.6 696.4
Transport bill 557 813 814.5
Stationery bill 37.2 42.4 43.5
Postage bill 26.7 36.3 37.5
Trade license bill 32.9 20.8 21
Trade permit bill 32.8 31.7 31.9
Advertisement bill 18.54 27.6 34.2
Life assurance premiums 24 24 26
Insurance premiums 24 24 26
Furniture maintenance 41.2 31.2 42.5
Equipment maintenance 38.9 40.9 42.2
Vehicle maintenance 42.2 49.9 50.1
Total expenses 41.4 55.6 58.4
Pre-tax (VAT) net profit 5267.34 5759.6 5852.6
Tax(VAT) 20162.66 21130 21097.4
Post tax (VAT) net profit 2882.5 3044.8 3051.8
17280.16 18086.6 18045.6
Table 5.3

28
5.4 AKINYI’S JUICE RESTAURANT STATEMENT OF FINANCIAL POSITION IN KES’000
Assets 2024 2025 2026
Current assets
Cash sales 25550 27010 27070
Account receivables 180 15 170
Stock of finished goods 2500 2400 2550
Stock of raw materials 7697 7980 8000
Work in progress 2000 2050 2200
Total Current assets 37,927 39,591 39,990
Fixed assets
Machinery cost 283 271.68 260.78
Accumulated depreciation (4%) (11.32) (10.9) (10.43)
Equipment cost 175 168 161.28
Accumulated depreciation (4%) (7) (6.72) (6.45)
Fixtures and fitting cost 6 5.76 5.53
Accumulated depreciation (4%) (0.24) (0.23) (0.22)
Building cost 0 0 0
Accumulated depreciation (4%) 0 0 0
Vehicle cost 210 201.6 193.5
Accumulated depreciation (4%) 8.4 (8.1) (7.74)
Total fixed assets 763.2 539.1 517.59
Total assets 37,163.8 39,051.9 39,472.41
Liabilities
Current liabilities 0 0 0
Creditors 100 100 100
Total current liabilities 100 100 100
Long term liabilities 0 0 0
Bank loan 0 0 0
Sacco loan 0 0 0
Total long term liabilities 0 0 0
Table 5.4

5.5 FIXED COST

The fixed cost of Juice Parlour is provided in table 5.5

AKINYI’S JUICE RESTAURANT FIXED COST IN KES’000

Item description 2024 2025 2026
Salary of administration 2781 2745 2798
Rent of premises 500.1 548.5 550
Trade license fees 32.9 20.8 21
Trade permit fees 32.8 31.7 31.9
Total 3296.8 3346 3400.9
Table 5.5

5.6 VARIABLES COST

The variable cost are associated with value of items that increase and decrease during period as shown in
table 5.6

29
AKINYI’S JUICE RESTAURANT VARIABLE COST IN KES’000
Item description 2024 2025 2026
Purchase (Raw materials) 7697 7780 8000
Loan repayment 0 0 0
Creditors repayment 100 100 100
Wages support staff 2731 2745 2798
Water bill 418 396.6 410.2
Telephone bill 36.9 42.2 44.2
Internet services 34 35.3 35.9
Electricity bill 534.5 694.6 696.1
Transport bill 557 813 814.5
Stationery bill 37.2 42.4 43.5
Postage bill 26.7 36.3 37.5
Advertisement bill 18.54 2736 34.5
Equity capital 37163.8 390519 39472.41
Total 37263.8 39451.9 39572.41
Table 5.6

5.6 BREAK EVEN ANALYSIS IN KES’000

The management of AKINYI’S JUICE RESTAURANT projects its break even points through analysis as
provided in table 5.7

AKINYI’S JUICE RESTAURANT BREAK EVEN ANALYSIS IN KES ‘000

Item description Formula 2024 2025 2026
Sales 25730 27161 27240
Fixed cost Rent of premises, trade license, trade permit 3296.8 3346 3400.9
Variable cost Wages, purchases, water, telephone, electricity bill 15312.14 16232.9 16357.4
Contribution 10417.9 10928.1 10882.6
margin

Break even level 8142.4 8316.2 8512.7

Contribution 40.4 40.2 39.9
sales ratio
Table 5.7

5.7 PROFITABILITY /ECONOMIC RATIOS

The profitability ratios comprises of monitoring value represented in table 5.8

AKINYI’S JUICE RESTAURANT PROFITABILITY RATIOS

Items Formula 2024 2025 2026
Gross profit 99.530 99.556 99.557
( )
Net profit 67.632 66.959 66.663
( )
Return in equity 46.497 46.310 45.717
( )
Assets turnover 0.692 0.696 0.690

30
Quick ratio 271.3 292.11 294.4

Liquid ratio 379.27 395.91 399.9

Table 5.8

5.8 DESIRED FARMING

the management of AKINYI’S JUICE RESTAURANT desired financing equivalent to sum of pre-
operational cost and working capital as presented in table 5.9

AKINYI’S JUICE RESTAURANTDESIRED FINANCING IN KES ‘000

Item Amount
Pre-operational cost 433.5
Working capitals 130
Total 563.5
Table 5.9

5.9 CAPITALIZATION
Capitalization of AKINYI’S JUICE RESTAURANT is the addition of owners’ equity and liabilities
presented in table 5.10

AKINYI’S JUICE RESTAURANT CAPITALISATION

Items 2024 2025 2026
Owners equity 37163.8 39051.9 39472.41
Liabilities 100 100 100
Totals 37263.8 39151.9 39572.41
Table 5.10

5.10 FINANCE MANAGEMENT SWOT

The strength, weakness, opportunity and threats of AKINYI’S JUICE RESTAURANT are as shown in
Table 5.11

AKINYI’S JUICE RESTAURANT FINANCE MANAGEMENT SWOT

Strength Weakness Opportunity Threats
1. Proper 1. Raising funds 1. Micro financing 1. Theft
budgeting 2. Overspending on 2. Banking in 2. Collapsing of
2. Collecting personal issues financing the bank
sales 3. Lack of book institution
3. Saving in keeping 3. Learning book
good banks knowledge keeping records
Table 5.11

31
5.3A CASHFLOW STATEMENT PROJECTION FOR YEAR 2024 IN KES ‘000
ITEM DESCRIPTION MONTHS QUARTERS TOTAL
CASH IN FLOW JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1ST Q 2ND Q 3RD Q 4TH Q YR 2024
Balance b/f 110 250.4 54.9 640 572.6 812.2 1048.3 1408.3 2290.8 3442.6 4878.1 6515.3 882.3 2024.8 4742.3 14836 22485
Cash sales 1250 1550 1350 1500 1550 550 1750 2450 2800 3150 3400 3550 4150 4300 7000 70000 25550
Accounts receivables 15 10 5 5 10 15 30 20 15 2 25 10 30 30 65 65 130
Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Creditors 100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sale of idle assets 10 10 10 10 10 10 10 10 10 10 10 10 30 30 30 30 120
Donations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash receipts 1360 1560 1360 1210 1560 1560 1760 2460 2810 3160 3410 3560 4280 4330 7030 10130 25770
Total cash available 1470 1810.4 1881.9 1850 2132.6 2372.2 2803.2 3868.3 5100.8 6602.6 8288.1 10075.3 5162.3 6354.8 11772. 24966 48255.4
3
CASH OUTFLOW
Purchases(raw materials) 600 610 607 607 620 625 650 700 700 690 700 720 1817 1855 2010 2015 7697
Loan repayment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Creditors repayment 10 10 10 10 10 10 10 10 10 10 0 0 30 30 30 10 100
Salaries(administration) 120 120 120 120 120 120 124 124 125 125 125 126 360 360 373 376 1469
Wages(support staff) 225 225 225 225 228 227 225 230 230 231 230 230 675 680 685 691 2731
Rent of premises 32 35 35.1 34 40 39 41 44 50 50 50 50 102.1 113 135 150 500.1
Water bill 22.5 25 23 22.5 30 35 37 40 45 46 45 44 70.5 87.5 122 135 415
Telephone bill 3 3.5 3 3 3 3 3 3 3 3 3 3 9.5 9 9 9 36.9
Internet service bill 2 2 1.5 1.5 2 2 2.5 3 4 4 4.5 5 5.5 5.5 9.5 13.5 34
Electricity bill 30 3.2 30.5 32 35 34 36 41 6 63 68 75 90.5 101 137 206 534.5
Transportation bill 50 55 48 50 57 56 60 62 6 70 74 73 153 163 187 217 557
Stationery bill 2 1.5 2 2 2.5 2.7 3 4 4 4 5 5 5.5 7.2 10.5 14 37.2
Postage bill 2 21 1 2 2.1 2.2 1 3.5 2.5 3 3.2 3.5 5 6.3 5.7 9.7 26.7
Trade license fees 1 2 1.5 2.4 2.5 3 2 2.2 3.5 4 4 4 4.5 7.9 8.5 12 32.9
Trade permit fees 1 2.1 1.5 2.5 2 2.5 3 3 4 3.5 3.7 4 4.6 7 10 11.2 32.8
Advertisement bill 0.1 0.5 0.12 0.1 0.2 0.25 1 3 2 1 1 1.5 0.72 0.55 4.5 3.5 18.54
Life assurance premiums 2 2 2 2 2 2 2 1.5 2 2 2 2 6 6 6 6 24
Insurance premiums 2 2 2 2 2 2 2 2 2 2 2 2 6 6 6 6 24
Premises maintenance 1 1.2 1.5 2 2 2.5 3 2 3.6 3.6 3.6 3.8 3.7 3.5 10.9 11 32.1
Furniture maintenance 2 2 2.3 3 2.5 3 .3.1 4.3 4.5 4 4.7 5 6.3 8.5 12.7 13.7 41.2
Equipment maintenance 2 1.8 2 2.5 3 3.2 3.5 5 4 4.1 3.9 4.2 5.8 8.7 12.2 12.2 38.4
Machines maintenance 3 2.8 2 3.5 3 3.4 3.3 4.7 4.1 4 4 4 7.5 9.9 11.5 12 41.2
Vehicles maintenance 3 2.5 2 3 2.8 3.2 3.5 4.5 4 4.1 4.2 4.3 7.5 9 12.3 12.6 41.4
Taxes 10.4 150.4 118.88 142.4 148.8 148 176.2 280 336 393.2 432 452.8 373.3 439.2 7.92 1278.4 2882.5
Total cash outflow 12195 1288.5 1241.92 1277.4 1320.4 1329 1394.9 1577.5 1658.2 1724.5 1372.8 1822.1 3750.02 3926.8 4630.6 5314.4 17626.82
Bal c/f 250.4 521.9 640 572.6 812.2 1043.2 1408.3 2290.8 3442.6 4878.1 6515.3 8263.2 1412.3 2428 7141.7 19646.6 30528.6
Table 5.3
Notes
1.
2.
3.

32
5.3B CASHFLOW STATEMENT PROJECTION FOR YEAR 2025 IN KES ‘000
ITEM DESCRIPTION MONTHS HALFYEAR ANNUAL TOTALS
CASH IN FLOW JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1ST 2ND YEAR YEAR 2025
2024
Balance b/f 3352.2 8393.4 8650.8 9981.9 10221. 10455.7 10627.2 11021. 11918.9 13065.. 14548.9 16274.2 55956.8 77456.2 22485.4 133413
8 4 8 4
Cash sales 1250 1560 1450 1570 1590 1600 1850 2500 2820 3250 3570 4000 9020 17990 25550 27010
Accounts receivables 15 10 12 15 10 12 10 10 12 15 15 15 74 77 180 151
Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Creditors 100 0 0 0 0 0 0 0 0 0 0 0 100 0 100 100
Sale of idle assets 0 10 10 10 10 10 10 10 10 10 10 10 60 60 120 120
Donations 1360 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash receipts 9613.2 1570 1460 1580 1600 1610 1860 2510 2830 3260 3580 4010 9180 18050 25770 36410
Total cash available 600 9936.4 10110.8 11561.9 11821. 12065.7 12487.9 13531. 14748.9 16325.4 18128.9 20284.2 65136.8 95507.1 48255.4 160643.9
8 8
CASH OUTFLOW
Purchases(raw materials) 300 615 620 625 640 650 670 690 700 720 750 3800 3800 4180 7697 7780
Loan repayment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Creditors repayment 120 10 0 10 10 10 10 10 10 10 0 0 60 40 100 100
Salaries(administration) 225 225 225 225 225 225 230 230 230 230 235 240 1350 1395 2731 1505
Wages(support staff) 32 36 37 39 38 40 45 50 55 55.5 58 60 225 23.5 500.1 2745
Rent of premises 22.5 24 24.1 27 30 32 35 37 40 41 42 42 159.6 237 415 548.5
Water bill 3 3.5 3.4 3 3.7 3.6 3.6 3.5 3.5 3.4 4 4 20.2 22 36.9 396.6
Telephone bill 2 2.7 2.5 2.5 2.5 2.6 28 3 3.1 3.4 4.1 4.1 14.8 20.5 34 42.2
Internet service bill 30 40.5 39.1 48 50 57 68 70 71 73 73 75 264.6 430 534.5 35.3
Electricity bill 50 57.3 55 57 60 67.5 70 74 78 78.5 82 83.7 346.8 466.2 557 694.6
Transportation bill 2 2.5 2.7 3 3.2 3.1 3.5 4 41 4.6 4.7 5 16.5 25.9 37.2 813
Stationery bill 2 2 2 2 3 3 3.5 3.7 3.7 3.74 3.8 3.9 14 22.3 26.7 42.4
Postage bill 1 1.5 0.1 1.3 1.5 1.7 1.8 2 2 2 2.5 2.5 8 12.8 32.9 36.3
Trade license fees 1 2 2 1.5 1.8 2.1 2.3 3 3 4 4 5 10.4 21.3 32.8 20.8
Trade permit fees 0.1 0.15 2 2.4 2.7 3 3.1 3 3.5 3.6 3.7 4 10.6 17.3 18.54 31.7
Advertisement bill 2 2 2 2 2 2 2 2 2 2 2 2 12 12 24 27.6
Life assurance premiums 2 2 2 2 2 2 2 2 2 2 2 2 12 12 24 24
Insurance premiums 1 4 4.1 4 4 3 4.7 4.9 4.7 4.7 4.8 4.8 20.9 28.8 32.1 24
Premises maintenance 2 2.7 2.8 3 3 8 4 4.7 3 3 3 3 17.1 20.1 41.2 49.7
Furniture maintenance 2 2.5 2.8 3 3 3 3.5 3.8 4 4.1 4.6 4.6 16.3 24.6 38.9 31.2
Equipment maintenance 3 3 3.5 3.8 4 6 4 4.5 5.7 4.8 6.7 5 21.4 28.3 41.2 40.9
Machines maintenance 3 3 4 4.5 4.7 3 4.3 4.7 4.7 5.8 5 5.6 23.9 31.7 41.4 49.7
Vehicles maintenance 3 3 4 3 4 4.1 5 5.2 5.2 5.2 5.5 5.8 17.8 26.7 56.3 55.6
Taxes 104 151.2 132.8 151.2 152 4.7 192 340.8 340.8 408 456 520 835.2 2209.6 2882.5 3044.8
Total cash outflow 1219.6 1312.6 1298.4 1340.1 1366.1 3 1466.1 1683.5 1683.5 1776.5 1854.7 1966.4 7975.1 10360.1 17626.82 18335
Bal c/f 8393.4 3650.8 9981.9 10221.8 10455. 144 11021.8 11918. 13065.4 14548.9 16274.2 18317.8 496080. 851.7 30628.6 134827.7
7 9 7

33
5.3C CASHFLOW STATEMENT PROJECTION FOR YEAR 2026 IN KES ‘000
ITEM DESCRIPTION MONTHS ANNUAL TOTALS
CASH IN FLOW JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YEAR 20... YEAR 20... YEAR
20...
Balance b/f 18317.8 18458.2 18720.2 18878.5 19116.4 19339.5 19504.2 19843.6 20743.3 21884.6 23370.4 25093.7 22485.4 133413 243270.8
Cash sales 1250 1570 1460 1580 1600 1610 1800 2510 2830 3260 3580 4020 25550 27010 27070
Accounts receivables 15 10 10 5 10 15 25 20 15 15 15 15 180 151 170
Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Creditors 100 0 0 0 0 0 0 0 0 0 0 0 100 100 100
Sale of idle assets 10 10 10 10 10 10 10 10 10 10 10 10 120 120 120
Donations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash receipts 1360 1580 1470 1590 1610 1620 1810 2520 2840 3270 3590 4030 25770 36410 27290
Total cash available 19677.8 20038.2 20240.6 20468.5 20726.4 20959.4 21314.2 22363.6 23583.3 25154.6 26960.4 29123.7 48255.4 160643.9 270560.8
CASH OUTFLOW
Purchases(raw materials) 600 619 624 629 644 704 650 670 690 700 720 750 7697 7980 8000
Loan repayment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Creditors repayment 10 10 10 10 10 10 10 10 5 5 5 5 100 100 100
Salaries(administration) 120 122 122 122 125 126 126 128 128 130 130 133 1469 1505 1512
Wages(support staff) 225 225 226 226 228 228 235 235 240 240 240 250 2731 2745 2798
Rent of premises 32 36 37 39 39 40 45 51 55.5 56.5 58.5 60.5 500.1 548.5 550
Water bill 22.5 24.5 24.6 27.5 30.5 32.5 35.5 37.5 40.5 41 42 42 415 396.6 400.6
Telephone bill 3 3.5 3.4 3.5 3.7 3.6 3.6 4 3.5 3.4 4.5 4.5 36.9 42.2 44.2
Internet service bill 2 2.7 2.8 2.5 2.6 2.7 2.9 3 3.1 3.3 4 4.3 34 35.3 35.9
Electricity bill 30 40 39 49 51.1 57 68 70 71 72 74 75 534.5 694.6 696.1
Transportation bill 50 55 56.5 58 64 69 70 74 76 78 82 82 557 813 814.5
Stationery bill 2 2 2.9 3 3.1 3.1 3.6 4.3 4.5 4.6 4.9 5 37.2 42.4 43.5
Postage bill 2 2.5 2.1 2.5 2.8 3 3.5 3.7 3.7 3.8 3.9 4.5 26.7 36.3 37.5
Trade license fees 1 2 1.5 1.4 1.7 1.7 1.8 2 2 2 2.1 2.2 32.9 20.8 21
Trade permit fees 1 1.5 2.1 1.6 1.8 2.2 2.3 2.9 3 4 4 5 32.8 31.7 31.9
Advertisement bill 0.1 2 2.5 2.9 2.7 3.5 2.6 3.5 3.5 3.6 3.7 3.9 18.54 27.6 34.2
Life assurance premiums 2 0.65 2 2 2 2 2 2 2 2 3 3 24 24 26
Insurance premiums 2 2 2 2 2 2 2 2 2 2 3 3 24 24 26
Premises maintenance 1 2 4.2 4.1 4.1 3.8 4.7 5 4.7 4.7 4.8 4.8 32.1 49.7 49.9
Furniture maintenance 2 4 2.6 2.8 3.5 3.5 3.5 4 4.1 4.4 4.5 5.1 41.2 31.2 42.5
Equipment maintenance 2 2.5 3 3 3.5 4.2 3.7 4 4.1 4.1 4.6 4.7 38.9 40.9 42.2
Machines maintenance 3 2 3.6 3.6 4.2 5 4.4 4.5 4.7 4.5 5.1 5.3 41.2 49.7 50.1
Vehicles maintenance 3 3 4.5 4.5 4.6 5.5 5.5 5.5 5.4 5.3 5.5 6 41.4 55.6 58.4
Taxes 104 3.5 133.8 152.2 153.0 1450 184 294.4 342.4 410 457.6 523.2 2882.5 3044.8 3051.8
Total cash outflow 1219.6 152.4 1312.1 1352.1 1386.9 1455.3 1470.6 1620.3 1698.7 1784.2 1866.7 1982 17626.82 18335.2 18466.1
Bal c/f 18458.2 1378.8 18378.5 19116.4 19339.5 19504.2 19843.6 20743.3 21884.6 23370.4 25093.7 27141.7 30628.6 134827.7 252094.7

34
APPENDIX A: BUSINESS LOCATION MAP

SEGA
ATDC Akinyi’s juice
restaurant

To Kisumu To Busia

Sega town Ardhi House

To Siaya Town

30
APPENDIX B: BUSINESS PLAN LAYOUT

A f
a C E

b a

a
b

B a a
f
b

e D

e f

e F

e M
d
e

KEY a chairs
A-Cashier office b tables
Security
B-Supervisor office c male latrine S
C-Managers office d female latrine
D- Factory e machines and equipment
Windows
E- Warehouse f shelves

Doors

31
APPENDIX C BUSINESS LOGO

32