SHARON’S M-PESA

P.O BOX 7820

ELDORET

CENTRE : KINGS COLLAGE OF ACCAOUNTANCY

PRESENTED BY : SHARON JERONO

INDEX NO : 5351030005

COURSE CODE : 1804

SUPERVISOR : MR. AYIMBA

PRESENTED TO : KENYA NATIONAL EXAMINATION

COUNCIL PARTIAL FULFILMENT FOR AWARD OF
CERTIFICATE IN ACCOUNTING/ACCOUNTANCY

DATE PRESENTED : JULY 2021

DECLARATION
This plan is my original work and has not been submitted for examination to any other college.

Signed ______________________ Date __________________________

SHARON JERONO

This plan has been submitted for examination with my approval as the College Supervisor.

Signed: ________________________ Date __________________________

MR. AYIMBA
DEDICATION
I dedicate this work to my parents for their financial and moral support. Great thanks to their
warm guidance and love throughout this work.
ACKNOWLEDGEMENT
First and foremost I want to thank God the almighty father who has enabled me to complete my
business plan and course as a whole.
I also want to thank my supervisor who helped, give enthusiastic support and advice throughout
my project. He also approved the script from the beginning to the end. Thanks also to my fellow
mates Sales and marketing for their support effort and advice that led to the successive publish
and writing of this project.
Finally special thanks to almighty God who provided me health to the end.

TABLE OF CONTENTS
DECLARATION.............................................................................................................................i
DECLARATION BY THE CANDIDATE....................................................................................i
DEDICATION.................................................................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
TABLE OF CONTENTS................................................................................................................iv
1.0 EXECUTIVE SUMMARY.......................................................................................................1
1.1 BUSINESS DESCRIPTION.....................................................................................................1
1.2 Marketing plan...........................................................................................................................1
1.3 Organization and Management Plan..........................................................................................1
1.4 Operational and Production Plan...............................................................................................1
1.5 Financial Plan............................................................................................................................2
CHAPTER TWO.........................................................................................................................................3
2.0 Business Description.................................................................................................................3
2.1 Business Name...........................................................................................................................3
2.2 Business Location and Control..................................................................................................3
2.2.1 Location Map..........................................................................................................................4
2.3Ownership of the business.........................................................................................................1
2.4 Type of business.........................................................................................................................1
2.5 Products and services.................................................................................................................1
2.6 Industry......................................................................................................................................1
2.7 Justification of opportunity........................................................................................................1
2.8 Business Goals...........................................................................................................................2
2.8.1 Mission...................................................................................................................................2
2.8.2 Objectives...............................................................................................................................2
2.9 ENTRY AND GROWTH STRAGEGIES.................................................................................3
2.9.1 Entry plan................................................................................................................................3
2.9.2 Growth strategy......................................................................................................................3
CHAPTER THREE.......................................................................................................................................4
3.0 MARKETING PLAN................................................................................................................4
3.1 MARKETING OBJECTIVES...................................................................................................4
3.1 CUSTOMERS...........................................................................................................................4
3.1.1 Learning Institutions...............................................................................................................4
3.1.2 Residence of Eldoret Town and its Environs..........................................................................4
3.1.3 Hotels and Restaurants...........................................................................................................5
3.2 Market Share..............................................................................................................................5
3.3 Competition...............................................................................................................................5
3.4 Advertisingand Promotion....................................................................................................6
3.4.1 Advertisement.........................................................................................................................6
3.4.2 Promotional.............................................................................................................................6
3.5 Pricing Strategy.........................................................................................................................7
3.6 Sales Tactics...............................................................................................................................7
3.7 Distribution Strategy..................................................................................................................8
CHAPTER FOUR...........................................................................................................................9
ORGANIZATIONAL / MANAGEMENT PLAN...........................................................................9
4.1 ORGANIZATION STRUCTURE.............................................................................................9
4.2 KEY MANAGEMENT PERSONNEL / BUSINESS MANAGERS........................................9
4.3 OTHER BUSINESS PERSONNEL........................................................................................11
4.4 RECRUITMENT, TRAINING AND PROMOTION OF PERSONNEL...............................12
4.4.1 RECRUITMENT..................................................................................................................12
4.4.2 TRAINING...........................................................................................................................12
4.4.3 EMPLOYEE PERFORMANCE APPRAISAL....................................................................12
4.4.4 PROMOTION.......................................................................................................................12
4.4.5 EMPLOYEE SEPARATION................................................................................................13
4.5 REMUNERATION AND INCENTIVE FOR PERSONNEL.................................................13
4.5.1 REMUNERATION...............................................................................................................13
TABLE SHOWING SALARIES OF STAFF................................................................................13
4.5.2 INCENTIVES.......................................................................................................................13
4.6 LICENSE, PERMITS AND BY LAWS..................................................................................14
4.7 OTHER SUPPORT SERVICES..............................................................................................14
5.0 PRODUCTION/ OPERATIONAL PLAN...............................................................................16
5.1 PLANT FACILITIES AND EQUIPMENT.............................................................................16
5.1.1 REPAIR AND MAINTENANCE.........................................................................................20
5.1.2 FIRM LAYOUT...................................................................................................................20
5.2 PRODUCTION STRATEGY..................................................................................................21
5.3 PRODUCTION PROCESS.....................................................................................................21
5.3.1 PRODUCTION LAYOUT..................................................................................................................23
5.4 REGULATIONS AFFECTING OPERATIONS......................................................................23
5.4.1 RULES AND REGULATIONS............................................................................................24
CHAPTER SIX..............................................................................................................................25
6.0 FINANCIAL PLAN................................................................................................................25
6.1 PRE-OPERATIONAL COST..................................................................................................25
6.2 WORKING CAPITAL.............................................................................................................25
BAHATI M-PESA SERVICES PROJECTED CASHFLOW STATEMENT FOR THE YEAR
2022...............................................................................................................................................27
BAHATI M-PESA SERVICES PROJECTED CASHFLOW STATEMENT FOR THE YEAR
2023...............................................................................................................................................28
6.4 PRO-FORMA INCOME STATEMENT..................................................................................29
6.5 PRO-FORMA BALANCE SHEET.........................................................................................30
6.6 BREAK EVEN ANALYSIS....................................................................................................31
TABLE SHOWING VARIABLE COST PER YEAR...................................................................31
6.7 EXPECTED PROFITABILITY RATIOS................................................................................32
6.9 PROPOSED CAPITALIZATION............................................................................................33
 CHAPTER ONE

1.0 EXECUTIVE SUMMARY

1.1 BUSINESS DESCRIPTION
The Business will bear the name Sharon M-Pesa Services derive from the owners first name
Sharon jerono. It will be located in Eldoret, Uasin Gishu county sogomo market around
university of eldoret. . It will be a sole proprietorship kind of business with the owner being
Sharon jerono. The business is a trade type of business and would therefore deal in of sharon M-
Pesa Services product such as airtime and meet. The business intends to grow to grow
progressively and reach its goals of raising the living standards of the community within its
locality .The amount required to start this business is Ksh.300,000
1.2 Marketing plan
The business potential customers will be the people of the local community, learning institutions
within the town. The target market share is expensive and covers population of the Eldoret CBD
and the neighboring estates i.e. The Business has a few competitors all of which it would be
advantageous ahead because of its highly and excellent service as well as affordable rates.
Effective methods of promotion and advertising are to be used by the business to market its
products as well as to capture a larger market population.
1.3 Organization and Management Plan
Sharon M-Pesa Services will be managed by sharon jerono who is the owner of the Business.
The business will require a start up staff members and every employee is expected to carry out
his or his duties diligently and promote the name and goals of the business.
Recruitment, training and promotion of personnel shall be done in a free and fair manner so as to
get best employees into the firm.
Remuneration and incentives for personal shall be awarded as stipulated without failure or delay
as this boosts the morale of workers to keep them working hard for the firms success for the first
year and finally 25, 000,27,000 in second year and finally 30,000 in the third year.
Licenses, permits and by laws shall be obeyed and paid for avoid service like banking insurance,
consultancy, postal and telephone shall be provided as planned.
1.4 Operational and Production Plan
All the business equipment e.g premises, mobile phones, furniture and other equipment will be
provided before the commencement period .Maintenance and repair of equipment shall be done
after a specialized duration of time to improve their efficiency this avoiding breakdown. The
production process i.e the process of obtaining goods from suppliers and selling them to
customers will be made faster and less cumbersome to avoid the situations of less float .The start
up float will cost Ksh.150, 000.

Regulation affecting the operations of the business e.g health regulations, trademark, patents and
copy rights shall be strictly adhered to lastly environmental regulations and compliances and
approvals before business commencement shall be taken into consideration.
1.5 Financial Plan
The business requires Ksh 450,000 to start off. The owner will contribute owner’s equity worth
Ksh 100,000. 150,000 and 200000 from well wishers will be loan from the youth fund. The
remaining amount would be borrowed from family and friends contribution. The financial
information of the business is contained in pro-foma income statements, Balance sheet and the
projected cash flows. The profit earned from the business will be used for business expansion
purposes. This is the break-even point analysis for the first year of operation. It is approximated
to be;
Source Amount
Loan 150000
Well wishers 200000
Personal 100000
 CHAPTER TWO
2.0 Business Description
The proposed business will be falling under trade commerce industry. It will be a sole
proprietorship venture engaged in the provision of high quality M-Pesa services.
2.1 Business Name
The name of the business will be sharon M-Pesa Services. The logo for sharon M-Pesa Services
will be as follows;

2.2 Business Location and Control

The proposed business will be located in Eldoret town. It will be situated along Eldoret-iten road
3KM off the main road through iten stage junction. It will be vertically opposite university of
eldoret. This place is a vital and strategic point for sharon M-Pesa Services since many most of
the residents are averagely well off
The proposed business address will appear as follows
sharon M-Pesa Services
P.O BOX 1728-30100
Eldoret
CELL:0708819719
2.2.1 Location Map

Sharon m-pesa

Kogo Flats
University of Eldoret

Iten stage junction

To CBD Eldoret to Nakuru

West market
2.3Ownership of the business
The proposed business is to be a sole proprietorship. This form of ownership was favored
because of the following reasons;
 The owner will manage and maintain the business by herself
 The secrets of the business will be kept secret
 The owner will enjoy all the profits earned from the business
 Decision making will be easier and faster
 Few legal formalities will be required in order to start off the business
2.4 Type of business
Sharon M-Pesa Services will be a retail business. It will be dealing with the offering of M-Pesa
services. The business will strategically be located so as to serve a wide range of customers.
Items floated will be of high quality and prices are to be affordable
2.5 Products and services
Sharon M-Pesa Services shall produce fast and efficient M-pesa services; whole dressed
financial and M-pesa services of high quality standards to satisfy the satisfaction of our beloved
costumers. The business shall be ensuring that premises are spacious enough for easy access for
marketing agents and customers.
2.6 Industry
The proposed business will fall under trade and commerce industry.
 Basically, involved in providing M-pesa services. These services include depositing and
withdrawing money as well as financial assistance

2.7 Justification of opportunity

 The proposed business will be a successful story because of the vital and strategic
location where institutions trading centers and estates will be target of the business.
 The proposed business is like a hobby to the owner hence She will do her work with
enthusiasm
 Herexperience is added advantage as it will do her work with enthusiasm.
 Herexperience is added advantage as it will account for the business success.
 Indeed the Eldoret Town is endowed with good infrastructure which will turn favour
transportation of goods.
 The business intends to employ qualified transportation of goods and to employ qualified
 personnel, and laborers who will ensure that the products are in good quality and at the
same time offer best service to the potential customers. The business also aims at
promoting employment opportunities and uplifting the living standards of the locals.
 M-pesa services do not require a big space unless when it is carried out in large
commercial basis.
 In addition, it is preferred due to its high return over a short period of time. Many
business people deposit and withdraw cash via M-pesa
 Another advantage is less legal requirements when starting this kind of farming.
Depending on the area, one may be required to obtain a license from the relevant
authority to start Sharon M-Pesa Services. However, in most cases, no license will be
required.
 M-pesa services are one of the activities known to have immense benefits. It has fewer
impacts on the environment. This kind of business does not pollute the environment.

2.8 Business Goals

The proposed business has both short term and long term goals.
The short -term goals include
 The business will focus on providing fast and efficient M-pesa services in order to win its
customers trust.
 The business intends to make profit of Ksh. 20,000 per month within the first five months
within the first five months of operation.
The long term goals of the business will include the following.
The long term goal of business will include the following.
 Opening a new branch in Kitale and Kapenguria at the end of the first two years of
operation.
 To increase the number of staff from eight to twelve by the end of the third year of
operation.
2.8.1 Mission
 Sharon M-Pesa Services owner will make its best effort to live up to the consumer’s
expectations by delivering the best of its product to the target customers. The M-pesa
operations would always be the first choice of our customers.
2.8.2 Objectives
Sharon M-Pesa Services producer will measure its success by its ability to achieve the following
objectives:
 Becoming the "Best and most efficient M-pesa shop" complying by the national standards for
M-pesa services.

 Winning the hearts and tastes of our beloved customers and establishing a brand image of
the company through heavy marketing campaigns in the first one year
2.9 ENTRY AND GROWTH STRAGEGIES
2.9.1 Entry plan
The strategies to be used by proposed business enter, penetrate and gain acceptance in the market
include.
-Displaying high styled posters in the towns to attract potential customers .The business will also
use the local media a for example citizen FM, Sayare Fm, Fish and West FM to ensure that the
people are well informed about the business .A sign post will be written at a strategic position
along the Eldoret-iten highway specifically at iten stage junction directing the potential
customers.
2.9.2 Growth strategy
The proposed business is bound to grow due to large and available market demand .The owner is
to offer quantity discount this fact will lead to increased sales .The proposed business also plans
to grow and expand beyond he entry offered services by ploughing back the benefits accrue into
the business yearly .This will be achieved due to the demand of our services.
 CHAPTER THREE
3.0 MARKETING PLAN
3.1 MARKETING OBJECTIVES
The main objectives of Sharon M-Pesa Services will be
i) To provide the customers with the very best in terms of quality services and
affordable transaction rates.
ii) To compete favorably with the existing businesses of similar nature in the locality by
keeping abreast with the dynamic forces in customer needs.
iii) To create expansion of the business when opportunity occurs marketing will play the
following roles.
iv) Educating customers about the services offered by the business and updating them
about the goods available at the premises.
v) Ensure that services offered to the customers are of the best quality and equivalent
quality.
3.1 CUSTOMERS.
Sharon M-Pesa Services is to provide the M-Pesa services to the inhabitant of Eldoret. The
potential customers are to be local people who will purchase credit airtime and Sharon M-Pesa
Services meat materials. The potential customers will include the following.
3.1.1 Learning Institutions
These include schools and colleges that are located within the town centre .They mainly include.
 kimumu high school
 kimumu Primary school
 Moi University
 Nehema Institute
These institutions will need M-pesa transaction services and mostly on termly basis.
The services on demand will include, credit cards, withdrawal and deposit of cash via phone
.They also look for economy and convenience as they get fast and convenient M-pesa services
within the organization will be offered by the business to those within the town the town center.
3.1.2 Residence of Eldoret Town and its Environs.
The residents of Eldoret are the targeted potential customer’s .In particular; they will need
airtime for calls and SMS. The residents also look for variety and convenience in product
services which will be provided by sharon M-Pesa Services producers
3.1.3 Hotels and Restaurants
This is another major potential market a lot of hotels and restaurants are opening in Eldoret town
creating an ever increasing market for our M-pesa services among the newly opened hotels
which are targeted by the business include:
 Motana hotel
 Hotel horizon
 Belasco lounge
 Cicada hotel
 Asis hotel

3.2 Market Share

The target market population with the area is estimated to be 140,000 people of whom the
proposed business is expected to serve about 30% of the total population.
Currently most of the M-Pesa services especially airtime and meat are supply by farmers off the
town and only few supply chicks. The proposed business intend to capture 60% of entire
population in a period of two years of operation .The market share percentage varies from
schools hotels and the resident
3.2.1 The percentage ratios are as show in the Pie-chart below.

Market share
schools 10%
hotels residents
30%

60%

3.3 Competition
The Key competitors to Bahati M-Pesa Services are Prime M-Pesa services and Ndalat M-Pesa
services. The competitor’s enterprises are located 2km and 21 km away from Bahati M-Pesa
Services respectively .The two businesses are already tried to capture potential customers.
However, they have a limited variety and do not offer sale services to their customers like
transportation .They also do not conduct door to door selling and advertisement to promote their
goods .The strengths and weaknesses of competitors including the ventured business are
illustrated in the table below

BUSINESS NAME STRENGTH WEAKNESSES

Prime M-Pesa services
Ndalat M-Pesa services
Sharon M-Pesa Services
It has been in operation for 3years
Has many workers i.e 10
Is located at a vital place.
It has qualified personnel
It has been in operation for 5years
Has many employees 15
It offers goods both in smaller and
medium quantities.
It will ensure good management
There will be advertisement and
promotion for the goods.
It intended to employee qualified
staff.

3.4 Advertising and Promotion

3.4.1 Advertisement
The Business need to popularize itself through advertisement and promotions .Advertisements
will be done will be done by the use of various media like social media like face book and twitter
use of posters at strategic points ,use of radio station like west Sayare and Fish Fm .Also by the
circulation of leaflets containing the M-Pesa services offered .The enterprise wishes to offer an
alternative in the provision of M-Pesa services .The business venture is to advertise its products
as frequently as possible and it is approximated to cost Ksh. 6,000 per year .The effectiveness of
advertising efforts shall be valued on the increase of sales outcome. The business is to offer raffle
tickets to customers who purchase credit in Bulk .Transportation services will also be offered to
those who purchase credit items in large quantities and are located within the town centre.
3.4.2 Promotional
 The plans for initial promotional campaigns will include credit extensions and after sale
service.
 The promotional and advertising campaign events is expected to the potential customers
and for regular promotional campaigns will include credit extensions and after sale
service.
 The promotional and advertising campaign event is expected to cost about 5% of the
profit share.
  The effectiveness of the promotional and advertising campaigns will be determined by
positive changes in sales outcome
3.5 Pricing Strategy
The pricing strategy for sharon M-Pesa Services is going to be based on the following factors.
The cost of purchase credit
Since the business should not run at a loss it implies that the cost of the goods would be
calculated as follows; purchase credit cost=profit =selling price.
Labour cost
Labor cost involved in making items available to the customers would be involved in
determining the prices and also the salaries to employees.
Demand and supply
When demand is high supply slightly lower, then prices will elevate a bit to suit the market
demand.
Competitor’s price
Proprietor takes account the selling price of the competitors to know when to set the price which
at the end of the day will at least potential customers and at the same time maximize the profit.
3.6 Sales Tactics
Personal selling techniques will be used by Sharon M-Pesa Services. These tactics are going to
enable the business increase levels. This will include offering cash and trade discount to the
customers. Salesman shall be recruited and selected on the basis of qualification i.e the owner
wishes to recruit holder in sales and marketing .This will enable the selling of products to be
effective. They will be motivated and retained in the business by providing financial incentives,
work leaf and medical and housing allowances.
The business venture also intends to conduct door-to door selling to customers who cannot reach
the premises .Distributors and agents shall be selected from selected from recognized industries
and shall be motivated by increasing their salaries. The geographical area to be covered will
include the town centre and its environs. Some customers will come from upcountry.
3.7 Distribution Strategy
Most of the selling will be done at the business premise ,whereby customers will come from all
corners to purchase credit what they need .In addition to this business intends to supply business
hotels or individuals that make substantial orders as long as they meet the additional economical
cost. Moreover, for customers to be supplied with the requirements, they will have to be located
within radius of six kilometers in Eldoret CBD.
The anticipated distribution problem include,
 Transporting goods to those outside the town because it will need the company to hire a
car
 There could also be storage problems as the business intends to purchase credit in bulk.
 CHAPTER FOUR
4.0 ORGANIZATIONAL / MANAGEMENT PLAN
An organization is a framework of responsibility, authority and duties through which all
resources are co-ordinated together for the achievement of common management objectives.
sharon M-pesa services will have the following objectives in the management plan.
 To establish effective communication channels amongst staff in order to enhance team
work in the employees.
 To motivate staff effectiveness as a strategic measure to retain performing staff.
 To observe the respective labour laws in the management of staff in order to avoid
unnecessary confrontations with the employees with the employees as well as the authorities.
4.1 ORGANIZATION STRUCTURE

MANAGER

PRODUCTION SALES PERSON ACCOUNTANT

SUPERVISOR
DRIVER

WATCHMAN

CASUAL WORKER

4.2 KEY MANAGEMENT PERSONNEL / BUSINESS MANAGERS

Personnel management is a specialist function of management with the following
responsibilities:
Proposing and formulating plans and policies of the business.
Advising and giving the business employees duties to perform
Ensuring the well-being (welfare) of the employees in relation to promotion, merit rating and
staff records.
4.2.1 MANAGER
The general manager of the business will be the owner of the firm.
QUALIFICATION
Certificate in Sales and marketing
Computer literate
DUTIES AND RESPONSIBILITIES
She will be the final decision maker
To coordinate the whole production process
To finance the business and implement ideas
To sign contract with customers
To recruit and promote employees
4.2.2 PRODUCTION SUPERVISOR
QUALIFICATION
Should have certificate in building and construction or catering
One year work experience in relevant field
DUTIES AND RESPONSIBILITIES
To supervise employees
Coordinating the M-Pesa process
To present employees problems to the manager
Maintenance of machine and equipment
Determining the production level after coordinating with the sales person
4.2.3 ACCOUNTANT
QUALIFICATION
Should have attained certificate in accountancy or related field
Must have worked in a busy firm
Must be computer literate
DUTIES AND RESPONSIBILITIES
To prepare and balance books of account
Carrying out banking activities
Process employees’ wages and salaries
Availing funds to pay suppliers and creditors
4.2.4 SALES PERSON
QUALIFICATION
Holder of certificate in sales and marketing or supplies
One year work experience in a busy firm
Good command of National and business languages
DUTIES AND RESPONSIBILITIES
To market the business products
Carrying out sales promotion and publicity
Carrying out market research and advising on pricing decisions
Ensuring delivery of business products at the right time
4.3 OTHER BUSINESS PERSONNEL.
4.3.1 DRIVER
QUALIFICATION
Must posses a valid driving license and certificate of good conduct
Two years driving experience
DUTIES AND RESPONSIBILITIES
To transport raw material to the business premise
To transport finished products from the firm to the market
4.3.2 SHOP ATTENDANT
QUALIFICATION
Must have c- mean grade in K.C.S.E
Certificate in any management course will be of an added advantage
DUTIES AND RESPONSIBILITIES
To attend to the customers within the business premise
4.3.3 WATCHMAN
QUALIFICATION
Must be healthy and physically fit
Able to communicate well in both English and Swahili
DUTIES AND RESPONSIBILITIES
To provide security to the business premise
To direct customers and visitors
To keep away idlers
4.3.4 CASUAL WORKER
QUALIFICATION
Must be active and physically fit
Able to communicate well in both English and Swahili
DUTIES AND RESPONSIBILITIES
To clean the equipment used in the business premise
Loading and off-loading raw material and finished products
To clear the surrounding of the business premise
4.4 RECRUITMENT, TRAINING AND PROMOTION OF PERSONNEL
4.4.1 RECRUITMENT
This is done to ensure that the business demands for employees are met by attracting
potential employees who have attained the required qualification. The methods that will be used
in recruitment include;
Direct method: A representative from the firm will be sent to educational and training
institutions to identify and interview students and shortlist their names to the manager
Indirect method: Advertisements in posters, newspapers and website will be used to
publicize the vacancies. After application, candidates will be contacted for interview, successful
ones will be selected and placed in their areas of specialization.
4.4.2 TRAINING
After recruitment of employees, there will be induction and orientation of the new
employees towards the basic duties, responsibilities and general organization
The firm will also organize for internal seminars, workshops and refresher courses once
in a while to update the skills of the employees so as to meet the changing job requirement,
technology and customer needs.
All these will be done with the ultimate goal of enabling employees produce high quality
products and increase productivity, efficiency and effectiveness.
4.4.3 EMPLOYEE PERFORMANCE APPRAISAL
Performance appraisal is concerned with determining with determining how well
employees are doing their jobs, communicating that information to the employees and
establishing a plan for performance improvement.
Performance appraisal will be done so as to improve productivity, promote internal
control through timely detection and feedback on actual performance, furnish information for
other human resource sub-systems, provide objective measures of performance as well as
stimulate, recognize and reward achievement.
4.4.4 PROMOTION
At Sharon M-Pesa Services, promotion will be on merit. This will help to retain talented
and ambitious employees thereby reducing turnover. It will also promote loyalty and
commitment among employees.
Nevertheless, other considerations during promotion will include; seniority, work
experience, qualification, punctuality, dedication and hard work.
4.4.5 EMPLOYEE SEPARATION
This is the cessation of service of agreement between an employee and the organization.
May occur because of resignation, discharge, dismissal, suspension, retirement or lay-off of the
workers.
Upon separation, Sharon jerono will request for and conduct exit interview with the
leaving employee so as to establish the underlying reasons for departure with the aim of
rectifying and finding solutions for the remaining workers.
4.5 REMUNERATION AND INCENTIVE FOR PERSONNEL
4.5.1 REMUNERATION
These are the payments given to employees for the services they offer. This depends on
the agreement between employees and the owner of the business.
TABLE SHOWING SALARIES OF STAFF
TITLE NUMBER OF MONTHLY HOUSE MEDICAL TOTAL
EMPLOYEES SALARY ALLOWANCE ALLOWANCE AMOUNT
Manager 1 9,000 1,500 500 11,000
Accountan 1 6,500 1,000 500 8,000
t
Production 1 6,500 1,000 500 8,000
supervisor
Salesmen 2 3,000 500 500 8,000
Shop 1 4,000 1,000 500 5,500
attendant
Driver 1 5,000 1,000 500 6,500
Watchman 1 4,000 - 500 4,500
Casual 2 3,000 - - 6,000
workers
TOTAL 10 41,000 6,000 3,500 57,500
4.5.2 INCENTIVES
Some of the incentives that the firm will give to motivate the employees include;
Providing them with the off days and annual leaves
Protection program like insurance cover to ensure safety and security at the work place
Premium pay for overtime work
Bonus, pension and soft loans
Allowances such as medical and house allowance
These incentives will boost the morale of the employees and increase efficiency hence
increase production.
4.6 LICENSE, PERMITS AND BY LAWS
The M-Pesa will be registered under the ministry of industrialization and shall acquire the license
from the county council of uasin gishu . It will also obtain permit from the offices of public
health and sanitation. The business license and permit will cost Kshs. 6,000 and will be renewed
annually upon expiry.
4.7 OTHER SUPPORT SERVICES
These are the services that are necessary to enable the business enterprise achieve the desired
goals and objectives. They include
BANKING SERVICES
The M-Pesa will have an account with co-operative bank, eldoret branch. The manager who is
the owner of the business is to be the sole signatory to all the financial transactions of the
business with the bank.
LEGAL SERVICES
The firm will seek the legal services of a renowned law firm dealing with commercial law within
uasin gishu and this will be jackson CO-Advocates located in Reinsurance plaza, 2 nd floor in
Kisumu central business District
POSTAL SERVICES
These services will be offered by the Kenya postal and telecommunication, eldoret branch. The
postal address will be: P.O Box 9311-40100, eldoret
ELECTRICITY SERVICES
The newly branded `Kenya power’ will offer the electric power services to the business premise.
WATER SERVICES
The proposed firm will receive clean, treated piped water from eldoret water and
Sewerage Company popularly known as “KIWASCO”.
INSURANCE SERVICES
This will include insurance cover for the staff and for the M-Pesa premise including all
assets. As such, in case of risks and uncertainties like injury, accidents, death at work, fire
outbreak and theft, there shall be compensation against such calamities.
INTERNET SERVICES
To cope with the advancement of technology, the firm will seek internet services. The
firm will install fibre optic cable that will enable quick access to the internet, E-mail and website.
The service will be provided by Jamii Telkom.

CHAPTER FIVE
5.0 PRODUCTION/ OPERATIONAL PLAN
Bahati M-Pesa Services will offer satisfactory quality products under the supervision of
the manager. It will design it products slightly different from those of the competitors
incorporating some additives. For instance the shape of bread will be blocky and golden brown
in color, the queen cake deep brown while scones, swiss roll and sweet buns to have the egg yolk
color.
The packaging is to be in beautifully printed polythene bags and with time, the M-Pesa
will keep on changing the designs and packaging as per the competition and the customer needs
and tastes. The face of the packaging bag will bear the name, the address and the logo.
5.1 PLANT FACILITIES AND EQUIPMENT
Since the M-Pesa is to start up, working facilities are highly needed to facilitate the
smooth running of the business.
TABLE SHOWING EQUIPMENT FOR PRODUCTION AND THEIR COST.
EQUIPMENT AMOUNT TOTAL (Kshs)
(Kshs)
Deposit and withdraw money. 120*100 12,000
Transfer money to other users. 100*30 3,000
Pay bills. 10*200 2,000
Purchase airtime. 2*10,000 20,000
Save money in a virtual account (Mshwari) 2*20,000 40,000
Transfer money between the service and, in some markets 1*4,000 4,000
like Kenya, a bank account.
Borrow money to complete transaction when you have 3*2,000 6,000
insufficient cash (Fuliza)
Deposit and withdraw money. 1*2,000 2,000
Transfer money to other users. 1*3,000 3,000
TOTAL 92,000

Withdrawal from M-PESA Agent

Min(KSHs.) Max(KSHs.) M-PESA Charges

1 49 N/A

50 100 10
 Min(KSHs.) Max(KSHs.) M-PESA Charges

101 500 27

501 1,000 28

1,001 1,500 28

1,501 2,500 28

2,501 3,500 50

3,501 5,000 67

5,001 7,500 84

7,501 10,000 112

10,001 15,000 162

15,001 20,000 180

20,001 35,000 191

35,001 50,000 270

50,001 150,000 300

Transfer to Unregistered Users

Min(KSHs.) Max(KSHs.) M-PESA Charges

1 49 N/A

50 100 N/A
 Min(KSHs.) Max(KSHs.) M-PESA Charges

101 500 45

501 1,000 49

1,001 1,500 59

1,501 2,500 74

2,501 3,500 112

3,501 5,000 135

5,001 7,500 166

7,501 10,000 205

10,001 15,000 265

15,001 20,000 288

20,001 35,000 309

35,001 50,000 N/A

50,001 150,000 N/A

Transfer to other M-PESA Users, Pochi La Biashara and Business Till To customer
 Min(KSHs.) Max(KSHs.) M-PESA Charges

1 49 FREE

50 100 FREE

101 500 6

501 1,000 12

1,001 1,500 22

1,501 2,500 32

2,501 3,500 51

3,501 5,000 55

5,001 7,500 75

7,501 10,000 87

10,001 15,000 97

15,001 20,000 102

20,001 35,000 105

35,001 50,000 105

50,001 150,000 105

Other Transactions

Other Transactions Kshs.

 All Desposits FREE

M-PESA Registration FREE

Buying Airtime through M-PESA FREE

M-PESA balance Enquiry FREE

Change M-PESA PIN FREE

5.1.1 REPAIR AND MAINTENANCE.

The machines and equipment are to be regularly cleaned and greased on their movable parts to
avoid wearing out and there save on cost of repair and in turn enhance smooth running of the
business.
5.1.2 FIRM LAYOUT
The M-Pesa will be well arranged and enough space created at the center of the room to allow
the spread of basin tins and bags. Ovens will be put in one of the corners opposite each other.
The second room contains very neat shelves for cooling purposes and adequate for storage of
crates. The third room will be a dispatch room where all products from production area are stored
temporarily awaiting transport and distribution. Bahati M-Pesa Services will use bicycles for
transportation of the finished products and raw materials at the start of the business and as it
expands, it will require a pick-up for smooth, easy and quick transportation to customers.
5.2 PRODUCTION STRATEGY
TABLE SHOWING MATERIAL REQUIRED
The monthly production expense will be;
ATM Withdrawal

Min(KSHs.) Max(KSHs.) M-PESA Charges

200 2,500 34

2,501 5,000 67
 Min(KSHs.) Max(KSHs.) M-PESA Charges

5,001 10,000 112

10,001 20,000 197

TABLE SHOWING MONTHLY PRODUCTION EXPENSES

ITEM COST (Kshs.)
Raw material 270,000
Production labour 10,000
water 500
Electricity 5,000
Rent 5,000
TOTAL 290,500
5.3 PRODUCTION PROCESS.
 Transfer to other Mobile Money Users

Min(KSHs.) Max(KSHs.) M-PESA Charges

1 49 FREE

50 100 FREE

101 500 6

501 1,000 12

1,001 1,500 22

1,501 2,500 32

2,501 3,500 51

3,501 5,000 55

5,001 7,500 75
 Min(KSHs.) Max(KSHs.) M-PESA Charges

7,501 10,000 87

10,001 15,000 97

15,001 20,000 102

20,001 35,000 105

35,001 50,000 105

50,001 150,000 105

 5.3.1 PRODUCTION LAYOUT

Purchase or raw material Baking of products

Cooling Packaging

Transport/distribution/selling

5.4 REGULATIONS AFFECTING OPERATIONS

The business will be registered under the Act with the registrar of companies under
registration of business name at a fee of Kshs. 2,000 for it to be allowed to operate legally.
HEALTH REGULATIONS
The proposed firm intends to employ people who have their medical certificate from certified
doctors from the ministry of health. The business will be bound to maintain regular cleaning of
the working place and conditions for employees and customers’ health purposes. Its members are
to be enrolled as members of National Hospital Insurance Fund (N.H.I.F) and ensure that the
employees are both physically and mentally fit to carry out their duties well.
LICENCE
The proposed business enterprise is required to obtain a licence and pay for its fee. It’s also
required to be renewed on a yearly basis upon expiry.
SAFETY REGULATIONS
The M-Pesa proposes to set safety regulations for the employees to follow so as to avoid
accidents at the work place. The proposed firm intends to provide protective attires like aprons,
helmet, boots, dust coat and gloves to protect the employees from injury. Fire extinguishers are
to be put in strategic positions within the premise and workers trained on how to operate and
conduct themselves in case of emergency.
5.4.1 RULES AND REGULATIONS
The proposed business will be governed by the following rules and regulations.
Smoking is prohibited within the business premise. The area is a drug free zone and use of any
addictive substances shall not be allowed. Proper dressing code must be observed. Employees
should be clean and dressed well while at work. Channels of communication should be followed
from top management level to lower management level. There should be mutual respect among
employees in the firm. Respect is paramount. Employees should be faithful and loyal to each
other and the management of the enterprise. Customers must be treated well and given the first
priority and served to their satisfaction. All employees must observe punctuality. Absenteeism
and lateness is punishable unless prior permission is sought.
Stealing of any kind is strictly prohibited.
 CHAPTER SIX
6.0 FINANCIAL PLAN
6.1 PRE-OPERATIONAL COST
ITEMS AMOUNT (Kshs)
Machinery and equipment 180,000
Furniture and fittings 40,000
License and permits 6,000
Insurance 4,000
Rent 6,000
Stock of raw materials 50,000
Bicycles (3) 15,000
Advertisement 10,000
Other expenses 20,000
TOTAL 331,000
6.2 WORKING CAPITAL.
A table showing current assets
CURRENT ASSETS AMOUNT (Kshs)
Stock of goods 100,000
Cash at bank 100,000
Cash in hand 150,000
Debtors 10,000
TOTAL 360,000
A table showing current liabilities
CURRENT LIABILITIES AMOUNT (Kshs)
Creditors 8,000
Bank loan 200,000
TOTAL 208,000
Working capital = current assets - current liabilities
= (360,000-208,000) kshs
=kshs. 152,000
 6.3 PROJECTED CASHFLOW STATEMENT
BAHATI M-PESA SERVICES PROJECTED CASHFLOW STATEMENT FOR THE YEAR 2021
ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Balance b/f 162,400 293,500 414,900 548,300 631,650 789,670 844,620 911,920 955,200 1,028,70 1,070,200 7,651,110
CASH INFLOW
Debtors 10,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1,500 47,500
Cash sales 250,000 300,000 280,000 270,000 240,000 300,000 210,000 250,000 220,000 240,500 200,500 200,000 2,961,000
Loan from bank 100,000 100,000
Total cash 350,000 462,400 583,500 692,900 795,300 937,650 1,004,670 1,098,620 1,134,920 1,197,700 1,230,250 1,271,700 10,759,610
inflow
CASH OUTFLOW
Cash purchases 100,000 90,000 80,000 75,000 95,000 70,000 85,000 105,000 110,000 98,000 92,000 120,000 1,120,000
Advertisement 10,000 9,000 8,000 7,000 5,000 6,000 7,000 52,000
Licence 5,000 5,000
Wages & 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000
salaries
Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
Electricity 5,000 4,500 4,000 3,500 5,500 5,000 4,800 7,500 5,600 4,800 3,900 4,200 58,300
water 1,000 900 800 950 1,050 980 750 800 920 850 750 770 10,620
Transport cost 10,000 8,000 7,500 6,000 5,500 9,500 8,000 8,700 6,500 7,500 6,500 9,500 93,200
Repair and 4,500 6,000 3,000 6,500 7,000 27,000
maintenance
Loan repayment 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Less 20,000 20,000
depreciation
Miscellaneous 600 500 600 650 600 500 500 500 400 300 400 300 5,850
Total cash 187,600 168,900 168,600 144,600 163,650 147,980 160,050 186,700 199,720 168,950 159,550 224,770 2,061,070
outflow
Net profit bal 162,400 293,500 414,900 548,300 631,650 789,670 844,620 911,920 955,200 1,028,750 1,070,200 1,046,930 8,698,040
Accumulative 162,400 455,900 870,800 1,419,100 2,050,750 2,840,420 3,685,040 4,596,960 5,552,160 6,580,910 7,651,110 8,698,040 44,563,590
bal
BAHATI M-PESA SERVICES PROJECTED CASHFLOW STATEMENT FOR THE YEAR 2022
  JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
900,00 937,80 957,18 976,63 995,80 1,074, 1,173, 1,203, 1,229, 1,248, 1,255, 1,264, 13216
Balance b/f 0 0 0 0 0 910 990 230 380 750 240 050 960
530,00 50000 40000 45000 50000 52000 47030 44731 43000 42001 43200 45125 55508
Sales 0 0 0 0 0 0 0 0 0 0 0 0 70
1,430, 1,437, 1,357, 1,426, 1,495, 1,594, 1,644, 1,650, 1,659, 1,668, 1,687, 1,715, 18767
Total inflows 000 800 180 630 800 910 290 540 380 760 240 300 830
Cash outflows                         0
45000 45020 35000 40000 38000 39000 41000 39000 37000 38300 39300 39746 47636
Purchases 0 0 0 0 0 0 0 0 0 0 0 0 60
28800
Salaries 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 0
Insurance 5000       5000       5000       15000
Licenses 5000       5000       5000       15000
Water 800 800 800 850 850 900 900 950 950 930 750 750 10230
Advertisement 500 500 550 500 600 600 650 700 500 450 400 400 6350
Telephone 800 800 850 850 900 900 930 820 820 700 700 700 9770
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Electricity 800 800 830 810 820 790 790 780 780 700 750 700 9350
Transport 1000 1120 1020 1120 1000 1000 990 980 880 1000 990 1050 12150
Taxation 1500                       1500
Repair and
maintenance 800 400 500 700 720 730 800 930 700 740 600 820 8440
49220 48062 38055 43083 42089 42092 44106 42116 41063 41352 42319 42788 51634
Total outflows 0 0 0 0 0 0 0 0 0 0 0 0 50
937,80 957,18 976,63 995,80 1,074, 1,173, 1,203, 1,229, 1,248, 1,255, 1,264, 1,287, 13604
net cashflow 0 0 0 0 910 990 230 380 750 240 050 420 380

BAHATI M-PESA SERVICES PROJECTED CASHFLOW STATEMENT FOR THE YEAR 2023
  JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
 1,676, 1,813, 1,968, 1,933, 1,897, 1,868, 1,830, 1,790, 1,757, 1,735, 1,718, 1,709, 21698
Balance b/f 320 170 070 170 070 420 020 670 820 020 720 870 340
Cash in hand 10,000 8,000                     18000
Cash at bank 30,000 20,000                     50000
Debtors 6,000 7,000 4,000 4,500 3,500 2,000 4,000 5,000 2,500 3,000 3,000 4,500 49000
10400
Loan repayment 50,000 54,000                     0
500,00 51000 44600 45200 45900 46200 46500 47000 48330 48900 49500 49900 57303
Sales 0 0 0 0 0 0 0 0 0 0 0 0 00
2,272, 2,412, 2,418, 2,389, 2,359, 2,332, 2,299, 2,265, 2,243, 2,227, 2,216, 2,213, 27649
Total inflows 320 170 070 670 570 420 020 670 620 020 720 370 640
Cash outflows                         0
42000 41000 45000 45900 45100 46500 47100 47000 46500 47100 46900 45200 54530
Purchases 0 0 0 0 0 0 0 0 0 0 0 0 00
28800
Salaries 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 0
Insurance 5000       5000       5000       15000
Licenses 5000       5000       5000       15000
Water 400 600 500 550 700 750 600 600 800 700 650 600 7450
Advertisement 800 650 800 750 900 800 750 800 650 800 750 800 9250
Telephone 700 600 550 500 450 700 650 600 750 500 600 700 7300
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Electricity 550 450 600 500 600 700 550 700 450 750 450 750 7050
Transport 1100 1200 1250 1250 1000 1500 2000 1500 1200 1100 1300 1450 15850
Taxation 1200         1500             2700
Repair and
maintenance 400 600 700 550 500 450 800 650 750 450 600 500 6950
46115 44010 48040 48910 49115 49740 50235 50085 50560 50130 49935 48280 58515
Total outflows 0 0 0 0 0 0 0 0 0 0 0 0 50
1,811, 1,972, 1,937, 1,900, 1,868, 1,835, 1,796, 1,764, 1,738, 1,725, 1,717, 1,730, 21798
net cashflow 170 070 670 570 420 020 670 820 020 720 370 570 090
 6.4 PRO-FORMA INCOME STATEMENT.
BAHATI M-PESA SERVICES PROFORMA INCOME STATEMENT FOR THE
YEAR 31ST DEC FOR THREE YEARS
ITEM YEAR 1 2021 YEAR 2 2022 YEAR 3 2023
Kshs. Kshs. Kshs. Kshs. Kshs. Kshs.
Sales 2,960,500 3,257,100 3,582,810
Cost of goods
Opening stock 224,770 1,364,353
Purchases 1,120,000 1,232,000 1,355,200
Less closing stock 1,046,930 73,000 1,364,353 92,417 2,435,643 283,910
Gross profit 2,887,430 3,164,683 3,298,900
EXPENSES
License 5,000 5,000 5,000
Wages & salary 540,000 594,000 653,400
Electricity 58,300 64,130 70,543
Rent 72,000 79,200 87,120
Water 10,620 11,682 12,850
Transport cost 93,200 102,520 112,772
Advertisement 52,000 57,200 62,920
Repair & 27,000 858,120 29,700 943,432 32,670 103,725.2
maintenance
Gross profit 2,029,310 2,221,251 2,261,624.8
Tax 10% 202,931 222,125.1 226,162.48
Net profit 1,826,379 1,999,125.9 2,035,462.3
TABLE SHOWING CAPITAL REQUIREMENT IN 3 YEARS
ITEM 1ST YEAR 2ND YEAR 3RD YEAR
Cash at bank 100,000 101,000 103,000
Cash in hand 150,000 151,000 152,000
Debtors - 10,000 12,000
TOTAL 250,000 262,000 267,000

6.5 PRO-FORMA BALANCE SHEET

BAHATI M-PESA SERVICES PRO-FORMA BALANCE SHEET AS AT 31ST DEC
EVERY YEAR
ITEM YEAR 1 2021 YEAR 2 2022 YEAR 3 2023
FIXED ASSETS Kshs. Kshs. Kshs. Kshs. Kshs. Kshs.
Machinery & 180,000 200,000 250,000
equipment
Furniture & 40,000 60,000 80,000
fittings
Less 20,000 22,000 24,000
depreciation
Total fixed assets 200,000 238,000 305,800
CURRENT
ASSETS
Stock 1,046,93 1,364,353 2,243,564.
0 3
Cash at bank 1,000,00 1,000,000 2,000,000
0
Cash in hand 826,379 2,873,30 999,128.6 3,363,481. 36,542.32 4,280,106.6
9 6 2
Total current 3,073,30 3,363,481. 4,585,906.6
assets 9 6 2

LIABILITIES
Long term
Bank loan 100,000
Short term
Capital 360,000 460,000 300,000 300,000 350,000 350,000
Net profit 2,613,30 3,063,481. 4,235,906.6
9 6 2
Total liabilities 3,073,30 3,363,481. 4,585,906.6
9 6 2
6.6 BREAK EVEN ANALYSIS.
BAHATI M-PESA SERVICES BREAK-EVEN POINT ANALYSIS
FIXED COST PER YEAR YEAR 1 2021 YEAR 2 2022 YEAR 3 2023
License 5,000 5,000 5,000
Wages & salary 540,000 594,000 653,400
Rent 72,000 79,200 87,120
Loan repayment 60,000 66,000 72,600
TOTAL FIXED COST 677,000 744,200 818,120
TABLE SHOWING VARIABLE COST PER YEAR
VARIABLE COST YEAR 1 2021 YEAR 2 2022 YEAR 3 2023
Advertisement 52,000 57,200 62,920
Electricity 58,300 64,130 70,543
Water 10,620 11,682 12,850.2
Repair & maintenance 27,000 29,700 32,670
Transport cost 93,200 102,520 112,772
TOTAL VARIABLE 241,120 256,232 291,755.2
 COST
BREAK EVEN POINT (B.E.P): this is the point when the business enterprise is neither
making profit nor loss. At this point, the revenue is just enough to cover both fixed and
variable cost.
B.E.P = fixed cost
Sales – variable cost
YEAR 1 2021
B.E.P = 677,000
2,960,500 – 241,120
=0.249
YEAR 2 2021
B.E.P = 744,200
32,570,100 – 265,232
=0.023
YEAR 3 2022
B.E.P = 818,120
3,582,810 – 291,755.2
=0.249
6.7 EXPECTED PROFITABILITY RATIOS
CALCULATION OF PROFITABILITY RATIO FOR THE THREE YEARS
1ST YEAR 2021
Gross profit ratio = gross profit × 100
Total sales
= 2,887,430 × 100
3,960,500
=72.91%
2ND YEAR 2022
Gross profit ratio = gross profit × 100
Total sales
= 3,164,686 × 100
3,257,100
 =97.16%
3RD YEAR 2023
Gross profit ratio = gross profit × 100
Total sales
= 3,298,900 × 100
3,582,810
=92.08%

6.9 PROPOSED CAPITALIZATION

A TABLE SHOWING PROPOSED CAPITALIZATION
SOURCE AMOUNT (Khs.)
Owner’s contribution 100,000
Contribution from parents 120,000
Loan from co-operative bank 140,000
TOTAL AMOUNT 360,000