BUSINESS NAME : TAMTAM GLOCERY

PRESESTED BY : SUSAN WANGECI MUIGAI

INDEX NUMBER : 2052010013

CENTER : KIAMBU INSTITUTE OF SCIENCE AND TECHNOLOGY

COURSE : CERTIFICATE IN SUPPLY CHAIN MANAGEMENT

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL

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DECLARATION
I hereby declare that this business plan is my original task to the best of my knowledge and diligence

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DEDICATION
I dedicate this business plan to my parents who gave me the financial support, motivation and moral
support

3
ACKNOWLEDGEMENT
I acknowledge the highest God, who provided the strength which kept me going throughout the
business planning period .also appreciate my parents for the support, my friends for giving me right
advice during the business planning.

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TABLE OF CONTENTS
DECLARATION..............................................................................................................................................2
DEDICATION................................................................................................................................................3
ACKNOWLEDGEMENT.................................................................................................................................4
CHAPTER ONE..............................................................................................................................................7
BUSINESS DESCRIPTION...........................................................................................................................7
1.0THE SPONSER..................................................................................................................................7
1.1BUSINESS NAME.............................................................................................................................7
1.2LOCATION.......................................................................................................................................7
1.3SOURCE OF CAPITAL.......................................................................................................................7
1.4FORM OF OWNERSHIP....................................................................................................................7
1.5PRODUCTS AND SERVICES..............................................................................................................7
1.6JUSTIFICATION................................................................................................................................7
1.7INDUSTRY.......................................................................................................................................7
1.8BUSINESS GOALS AND OBJECTIVES.................................................................................................7
1.9ENTRY AND GROWTH STRATEGY....................................................................................................7
2.0SWOT ANALYSIS..............................................................................................................................8
CHAPTER TWO.............................................................................................................................................9
2.0MARKETING PLAN...........................................................................................................................9
2.5PRICE STRATEGIES........................................................................................................................10
2.6 ADVERTISEMENT AND PROMOTION............................................................................................10
2.7DISTRIBUTION STRATEGY.............................................................................................................10
2.8 SALE TACTICS...............................................................................................................................10
2.9 CUSTOMER SERVICES...................................................................................................................10
CHAPTER THREE........................................................................................................................................11
3.1ORGANISATION STRUCTURE.........................................................................................................11
3.2QUALIFICATIONS AND RESPONSIBILITIES OF A MANAGER...........................................................11
3.2.3PRODUCTION MANAGER...........................................................................................................12
3.3OTHER PERSONELL........................................................................................................................12
3.4RECRITMENT AND TRAINING........................................................................................................12

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 3.5RECRUITMENT AND AGENCIES.....................................................................................................13
3.6LEGAL RECRUITMENT...................................................................................................................13
3.7SUPPORT SERVICES.......................................................................................................................13
CHAPTER FOUR..........................................................................................................................................14
4.1 PRODUCTION FACILITIES AND CAPACITIES......................................................................................14
4.2PRODUCTION OPERATION \STRATEGY.........................................................................................14
4.4REGULATION PRODUCTION AFFECTING OPERATIONS..................................................................14
CHAPTER FIVE............................................................................................................................................15
5.1PRE-OPERATINAL COST.....................................................................................................................15
5.2WORKING CAPITAL.......................................................................................................................15
5.3TAMTAN GLOCERY SUPPLY...........................................................................................................16
5.4PROFORM INCOME FOR THE EXPED.31st DEC 2021......................................................................17
6.5PROFORMA BALANCE SHEET........................................................................................................18
5.6PROFITABILITY RATIOS..................................................................................................................19
CHAPTER SIX..............................................................................................................................................20
APPENDIX..............................................................................................................................................20

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CHAPTER ONE
BUSINESS DESCRIPTION
1.0THE SPONSER
The owner of the business is Susan Wangeci Muigai and is 19yrs of age from Gatundu in Kiambu County.
I am a student at Kiambu Institute of Science and technology studying supply in chain management.

1.1BUSINESS NAME
The name of the business will be TAMTAM GLOCERY SUPPLY. The name means sweet things and the
business will include fruits and vegetables.

1.2LOCATION
The business will be located along Gatundu town near Gatundu hospital where it is easy and the
purpose I chose the location is because many patients and residents travel far to fetch fruits.

1.3SOURCE OF CAPITAL
The owner will start the business in August 2020 and the capital to start the business will be 100,000ksh
and contributed by the owner Susan Wangeci and amount borrowed from family and friends.

1.4FORM OF OWNERSHIP
The business is a sole proprietorship, the business will be owned by a sole that benefits of sole
proprietorship: the owner will benefit alone and when there is loss there will be no misunderstanding
from others.

1.5PRODUCTS AND SERVICES

The business will offer both products and services which are; selling of fruits like watermelons, mangoes,
oranges and bananas. Vegetables like sukumawikis, tomatoes and carrots.

1.6JUSTIFICATION
The business looks to save time for people who walk for long distances to access the groceries.

1.7INDUSTRY
The business is under Agricultural industry since its dealing with selling and buying of products and
services of fruits and vegetables.

1.8BUSINESS GOALS AND OBJECTIVES

The business looks to create customers relations and objectives to provide goods at affordable prices
and also create employment.

1.9ENTRY AND GROWTH STRATEGY

The business expects to expand and grow many other fruits and vegetables e.g. avocadoes and spinach

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2.0SWOT ANALYSIS
STRENGTH

The location will help the people in the area to reduce time wastage while travelling to search for fruits
and vegetables

WEAKNESSES

The business requires large capital to start due to high demand by the customers.

OPPORTUNITY

The business will produce more fruits which is better since its advice to consume more fruits which
enriches the body with vitamins. The job can also create employment to others in a few years.

THREATS

There is a lot of theft and insecurity of products to be stolen in the business and it will be a loss.

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 CHAPTER TWO
2.0MARKETING PLAN
This chapter describes how the business firm attends to sell its products or offer its services. It identifies
and competitors. Also outlines prices of selling products.

2.1CUSTOMERS IDENTIFICATION
The potential customers are of various classes namely general public.

General public includes individual. These are people who came to buy products and services of the
highest quality.

2.2COMPETITION
Due to existence of the competitors, the business will offer products and services of the highest quality.

The main competitors are;

Name of the business Strengths weakness

Tamtam Grocery the business has many customers products offered are of

Medium standard

Shantel Grocery offers products and services inadequate capital

Matunda Grocery Operate for long hour’s inadequate capital

2.4MARKET SHARE
This describe the number of competitors and some of the derived strategies formulated to put down
this competitions over the firms

The business is expecting about 50 people to buy the goods per day. This is represented in a pie chart.
The percentage expectation is 64%,18% and 18% representing Tamtam glocery,Shantel, Matunda
grocery.

The chart below shows the market share;

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 tamtam glocer shantel glocery matuda glocery

2.5PRICE STRATEGIES
The price strategies for the business be of good price plus a discount on top of it. 2 vegetables , a
discount of 2 carrier bags and one fruit to attract more customers .

2.6 ADVERTISEMENT AND PROMOTION.

The method of advertising will be writing on posters and banners.

MEDIA COST FREQUENCY TOTAL

Posters 50 30 1500

Banners 500 3 1500

2.7DISTRIBUTION STRATEGY
The enterprise will be using roads as a mean of transport. This will be done in and outside the market.

2.8 SALE TACTICS

Personal selling will be done by giving customers a chance for negotiation and building a wide area for
public relation.

2.9 CUSTOMER SERVICES

The business will be producing good s of high quality for customers and by giving them a discount after
buying the products.

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 CHAPTER THREE
3.1ORGANISATION STRUCTURE
CEO

D. MANAGER FINANCE MANAGER PRODUCTION MANAGER

CLEANERS DRIVER WATCHMEN

3.2QUALIFICATIONS AND RESPONSIBILITIES OF A MANAGER

3.2.1C.E.O
Qualifications;

Diploma in business

2 years of working

26 years of age

RESPONSIBILITIES

Ensure all activities run well

Ensure attendance of all employees

3.2.2FINANCE MANAGER

QUALIFICATIONS

Diploma in accounts

2 years of experience

25 years of age

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RESPONSIBIBLITIES

Ensure all funds are used well

Record all transactions

3.2.3PRODUCTION MANAGER
QUALIFICATION

Diploma in business

25 years of age

2 years of experience

RESPONSIBILITIES

Ensure products are bought and are in good condition

3.3OTHER PERSONELL
CLEANER

25 years of age

Ensure all places are clean

DRIVER

2years of experience

Ensure al deliveries are made in time

WATCHMAN

1 year of experience

Ensure security of the goods

3.4RECRITMENT AND TRAINING

All recruits will be vet by the manager and placed to their respective areas

TRAINING

The business will provide training in all areas as expected.

PROMOTION

The employees’ salaries will be increased according to their performance.

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3.5RECRUITMENT AND AGENCIES
Position salary (ksh) no. of staff allowance

C.E.O 30,000 1 house, medical, transport

D.MANAGER 25,000 2 house, medical, transport

ACCOUNTANCY 26,000 1 house, medical, transport

CLEANERS 15,000 2 house, medical, transport

DRIVER 10,000 1 house, medical, transport

WATCHMAN 10,000 1 house, medical, transport

TOTAL 105,000

3.6LEGAL RECRUITMENT
The Tamtam grocery will be registered with county government of Kiambu. Acquire a permit and a
personnel pin number from the Kenya Revenue Authority.

3.7SUPPORT SERVICES
Banking services

The service will be offered by the Equity bank for easy running of the business

Power service

This will be provided by the Kenya Power according to the consumption.

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 CHAPTER FOUR
4.1 PRODUCTION FACILITIES AND CAPACITIES
The business will have different facilities to facilitate its work

4.2PRODUCTION OPERATION \STRATEGY

Manager C.E.O
stock officer

Entrance
Accounts
office Store

4.4REGULATION PRODUCTION AFFECTING OPERATIONS

The owner will acquire a trading license from the local authorities at a cost of 2,000 ksh per year

Government policy

The government may bring changes in the goods prices, high taxes that can affect business operations.

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 CHAPTER FIVE
5.1PRE-OPERATINAL COST
Table 1

PARTICULARS AMOUNT (ksh)

Licenses 3000
Deposits ; water, rent, electricity 15000
Furniture 12000
Advertisement/promotion 1500
Stock 50000
Transport 2000
Market survey 1000
TOTAL 63000

5.2WORKING CAPITAL
Table 2

PARTICULARS YEAR 1 YEAR 2 YEAR 3

Current assets
Stock 50000 50000 49000 3000
Debtor’s 10000 14000 15000 14000
Bank 14000 16000 17000 15000
Personal 10000 10000 11000 4000
TOTAL 84000 90000 92000 100000
Current liabilities
Creditors 4000 3000 2000 200
Insurance 6000 4000 4000 4000
Bank 10000 9000 8000 4000
Wages 4000 3000 4000 4000
Total 24000 19000 18000 40000
Recruitment 71000 74000 60000

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5.3TAMTAN GLOCERY SUPPLY
Table 3

particulars JAN FEB MAR APR JUN JLY AUG SEPT OTC NOV DEC TOTA
CH L E L
Beginning 200 150 1600 200 160 250 2600 400 500 300 400 5200
cash 00 00 0 00 00 00 00 00 00 00 00 00
sales 500 400 5000 600 400 500 5000 500 500 100 200 4000
0 0 0 0 0 0 00 00 00
Total flow 250 190 2100 260 200 300 3100 450 550 400 600 5500
00 00 0 00 00 00 0 00 00 00 00 00
Preparatio 400 300 4000 400 400 600 800 600 400 600 600 9000
n expenses 0 0 0
Cash 100 100 1000 500 500 600 600 700 600 800 400 1400
purchase 0 0
Rent(mont 100 400 3000 400 400 800 400 500 600 400 700 4000
hly) 0 0 0
wages 500 500 400 300 600 600 400 800 800 800 600 7000
electricity 500 400 500 400 800 800 500 400 200 100 150 7000
water 500 300 400 200 600 100 400 400 600 800 400 8000
transport 100 100 1000 500 500 500 1000 500 500 500 500 1000
0 0 0 0
Loan 100 200 3000 400 500 300 4000 600 600 400 400 1000
payment 00 00 0 0 0 0 0 0 0
Interest 100 500 4000 400 400 400 5000 400 400 600 600 1000
loan 00 0 0 0 0
Total cash 150 150 1900 140 600 600 600 150 200 100 480 1000
flow 00 00 0 00 0 0 00 0 0 0 0
Net cash 300 400 3000 220 140 240 2400 300 350 200 200 1100
flow 00 0 0 00 00 00 00 00 00 00 0

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5.4PROFORM INCOME FOR THE EXPED.31st DEC 2021
Table 5

Particula JAN FEB MARC APRL MAY JUNE JLY AUG SEP OCT NOV DEC
r H
Sales 1000 1000 20000 4000 5000 6000 4000 5000 6000 5000 5000 600
0 0 0 0 0 0 0 0 0
Cost 5000 4000 10000 1000 3000 4000 1000 1000 1000 4000 1000 200
0 0 0 0 0 0 0 0
Gross 5000 6000 10000 3000 2000 2000 6000 4000 5000 1000 4000 100
profit 0 0 0 0 0 0 0 0 0
Transpo 5000 4000 4000 1000 3000 2000 1000 1000 1000 500 500 400
rt 0
Rent 4000 3000 5000 4000 1000 1500 6000 2000 500 400 400 500
Wages 6000 2000 3000 4000 2000 400 1000 1000 1000 600 1000 400
Water 4000 500 400 900 400 400 600 400 400 400 400 400
bill
Electricit 500 500 600 4000 800 600 400 400 600 600 600 600
y
Total 9000 8000 7500 9000 6000 1500 2000 900 1000 1500 1600 500
expense
s
Net 4900 2000 4000 2000 400 4000 400 400 600 800 800 800
profit 0
tax 5000 4000 600 400 500 400 600 600 800 900 900 900
Net 4000 6000 400 700 1000 1000 400 800 900 100 700 800
profit

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6.5PROFORMA BALANCE SHEET
Table 6

ASSETS YEAR 1 YEAR 2

Cash 40000 40000
Bank 30000 9000
Debtor’s 15000 16000
stock 5000 6000
Total current assets 95000 98000
Furniture 40000 4000
Vehicle 50000 6000
Building 40000 50000
land 10000 14000
Total assets 250000 300000
Creditors 4000 5000
B. overdraft 4000 4000
Long term liabilities 6000 9000
Ltkcb loan 4000 40000
Owners’ equity 60000 6000

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5.6PROFITABILITY RATIOS
Gross profit

5000-40000/50000*100=20

Net profit

30000/6000*100=50

Return of capital employed

30000/90000*100=30

Capital=fixed assets +current assets –liability

95000+100000_60000=135000

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 CHAPTER SIX
APPENDIX

GATUNDU ROAD

TAMTAM GLOCERY

GATUNDUHOSPITAL

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