WANANCHI WHOLESALE BUSINESS MANUAL

P.O BOX 324 MOMBASA

TEL: +254708475949

COMPILED BY: ALI HASSAN

REG NO: CB13/10230/14

WANANCHI WHOLESALE
WE VALUE CUSTOMER SATISFACTION!!!

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 TABLE OF CONTENTS
EXECUTIVE SUMMARY...................................................................................................................v

CHAPTER ONE....................................................................................................................................1

BUSINESS DESCRIPTION.................................................................................................................1

1.1. Business Name...........................................................................................................................1

1.2 Business Location........................................................................................................................1
1.3. Business Outlook........................................................................................................................1
1.4. Type of Business........................................................................................................................2
1.5. Business Ownership....................................................................................................................2
1.6. Business Registration..................................................................................................................2
1.7 Insurance.....................................................................................................................................3
1.8 Commencement of the Business..................................................................................................3
1.9 Business Operation......................................................................................................................3
1.10 Business Objectives...................................................................................................................4
1.11 Business Vision.........................................................................................................................4
1.12 Business Mission.......................................................................................................................4
1.13 Business Motto..........................................................................................................................4
1.14 Core Values...............................................................................................................................4
1.15 Business Policy..........................................................................................................................4
1.16 Healthy and Emergency Measure..............................................................................................5
1.17. Justification of the Opportunity................................................................................................5
1.18. Industry.....................................................................................................................................5
CHAPTER TWO...................................................................................................................................6

2.0 PRODUCTION PLAN....................................................................................................................6

2.1 Operating Procedure for Inventory Control.................................................................................6

2.2 Receiving Goods and Supplies....................................................................................................6
2.3. Storage and Control....................................................................................................................6
2.4 Scheduling And Rotation.............................................................................................................6
2.5 Security........................................................................................................................................6
2.5 Procedure for Products Shipping.................................................................................................7
2.6 Business Unique Features............................................................................................................7
2.7 SWOT Analysis...........................................................................................................................7
2.8 Facilities Used in the Business....................................................................................................8

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 3.9 Operational Requirement.............................................................................................................9
CHAPTER THREE.............................................................................................................................10

MARKETING PLAN..........................................................................................................................10

3.0 Sales And Marketing Procedure................................................................................................10

3.1 Customer Analysis.....................................................................................................................10
3.2 Market Size and Trend...............................................................................................................10
3.3 Competition and Competitive Edge...........................................................................................10
3.4 Distribution................................................................................................................................11
3.5 Sales Tactics..............................................................................................................................11
3.6 Advertising and Sales Promotion...............................................................................................11
3.7 Pricing Strategy.........................................................................................................................13
3.8 Credit Policy..............................................................................................................................13
CHAPTER FOUR...............................................................................................................................14

4.0 Organizational Management Plan..............................................................................................14

4.1 Managing Director.....................................................................................................................14
4.2 Human Resource Manager.........................................................................................................14
4.3 Finance Manager.......................................................................................................................15
4.4 Procurement Manager................................................................................................................15
4.5 Sales Manager...........................................................................................................................15
4.6 Employees Promotion................................................................................................................16
4.7 Recruitment Procedure Selection...............................................................................................16
4.8 Measure of Performance............................................................................................................17
4.9 Remuneration of Employees......................................................................................................17
4.9 Support Services........................................................................................................................17
4.10 Organisational Chart................................................................................................................18
CHAPTER FIVE.................................................................................................................................19

5.0. FINANCIAL PLAN.....................................................................................................................19

5.1. Pre-operational costs.................................................................................................................19

5.2. Pro –forma balance sheet..........................................................................................................19
5.3. Working capital........................................................................................................................20
5.4. Projection cash flow ‘000’........................................................................................................20
5.5. Pro-forma income statement (Trading profit and loss A/C)......................................................21
5.7. Desired Financing.....................................................................................................................21
5.8. Capitalization............................................................................................................................21

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 5.9. Profitability ratio.......................................................................................................................22
APPENDICES.....................................................................................................................................23

Appendix I: Application for Trade Licence.....................................................................................23

Appendix II: Curriculum Vitae........................................................................................................24
Appendix III: Sample Poster for Marketing.....................................................................................26
Appendix IV: Insurance cover form................................................................................................27
Appendix V: Loan Application form...............................................................................................29

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 EXECUTIVE SUMMARY
The business name will be’ WANANCHI WHOLESALE SHOP’ and this business will be
located in Mombasa county, Ujumaa town along Likoni-Ukunda road. The business will be
operating at a wholesale type of business because it falls in a service sector industry. This
industry sector has high demand as a result of high population and high demand for the
product which lead to high income. The business will be selling foodstuff in a wholesale
trade. Due to high competition of this type of business I have put measures in place to ensure
the objectives of the business are attained. The business is aimed at maximizing profit which
will increase income and also giving back to the community in terms of employment etc.
The business will be maximizing marketing objectives to maintain and attract more
customers. Due to sales increment at the end of three years, the business would have to
increase the stock or turnover to ensure more sales are made to the consumers which are
targeted that include the community members, the county government at large. Due to the
competitive environment the business will be focussing on what is being consumed highly
with the customers to that it can order it in high quantity. The business will look upon better
means of pricing, sales tactics, distribution in order to retain the customers.
The management of the business will be the business owner as a managing director the
Human Resource manager, Marketing manager, Finance manager and Sales manager. Each
member will have his own responsibility. They will be recruited according to their
qualification and requirements of the business. Induction training will be given to the newly
employed staff. Advertisement shall be used to get the employees. The business will have a
total of fifteen workers and there will be motivation for the workers to recognise their effort.
The business will also consider legal requirement concerning employees.
The business will be under its operation and offering services from 7.00 am to 9.00pm which
will be from Monday to Saturday. The ordering of the stock will be depend on the inventory
controlling procedure , that is the maximum stock level the business will be maintaining and
the minimum stock level the business will supposed to have. There will be a quick service
rendering to the customers to avoid delays and also will help the business to retain the
customers. The business will ensure good public relations with its customers which will
attract other customers.Pre- operation amount for the business will take over ksh 15,400. The
working capital will be ksh 250,000, the cash flow for the two years will generally be a
surplus. The income for 2020 will be ksh 802,000. The balance sheet amount for 2020 will be
ksh 472,000.

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 CHAPTER ONE

BUSINESS DESCRIPTION

1.1. Business Name

The name of the business will be Wananchi Wholesale Shop. I chose the name ‘Wananchi’
because the name is simple and easy to pronounce, the name of the business also portray a
given meaning that is it doesn’t discriminate its customers, it sales its products to all
communities regardless of where they come from. I found the name to be too attractive too, it
can capture the attention of the customers and also attract them to come and see what is being
offered, this may enhance potential customers for the products.

1.2 Business Location

Wananchi Wholesale will be located at Mombasa County in Ujamaa town along Likoni-
Ukunda Road in South Coast. The business will be 300m away from the Ujamaa town. The
choice of the business site is motivated by high level of security, high population, proximity
to the town, good infrastructure and the major thing is high demand for the products in the
area. The area is good considering the environment and also housing facilities. Its good place
whereby rental fees are somehow pocket friendly and it’s not interior. The business premises
has adequate space enough to fit its intended purposes.

1.3. Business Outlook

The business will be painted orange and green colour, I chose these colour because they are
attractive and also can reflect at a very far end. It’s also a unique combination of colour
which will make the business outstanding.

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MAP OF THE BUSNESS LOCATION

Likoni-Ukunda Highway Ujamaa town

WANANCH
WHOLESALE

Kona Mpya Mtongwe

1.4. Type of Business

Wananchi Wholesale is a wholesale type of business which deals with selling foodstuffs that
is; serials, maize meal and baking flour, cooking oil, spices, snacks and juice initially with an
aim of expanding within for years’ time. The business will be selling the products in a
wholesale manner to its customer. The products are highly consumed on daily basis so the
products are for the whole society.

1.5. Business Ownership

Wananchi wholesale is a sole proprietorship form of a business it’s being managed by a
single person. I chose to be a sole trader because I will be the manager of my own business,
its saves time in decision making also it enhance a sense of privacy and you be the boss you
can be able to control and monitor all the business activities. Sole proprietorship engages less
formalities to start so it take less time to execute. Being your own boss you can decide to take
the business in the direction you desire.

1.6. Business Registration

The business is supposed to be registered by the county government so that it can operate
legally under the law of the state. I enquire from the legal authority to secure a permit for the
business which incurred a cost of ksh 2000 from Mombasa County as registration fees.
According to the la of the state there are rules and regulation which guide the business
operation activities, there are a number of rules involved when doing business in the country,

2
this rules include; the business should be registered by the legal authority, the business should
be legal, business should pay tax, quality and standard operations to safeguard the
environment and many more. Wananchi Wholesale met all the requirement by the law of
Kenya hence the business has to acquire the document below;

Trade licence; this document is issued to legalise the operation of the business under the law
of Kenya.

Certificate of registration; this certificate is issued to the business owner to protect the name
of the business, it’s the registration of the business name, copyright.

Business permit; this is given by the county government of Mombasa county count council in
order of the business to operate Ujamaa town. This permit is to be renewed on annual basis at
a fee of sh 650.

1.7 Insurance
Wananchi Wholesale has to take insurance cover against the risk of theft and burlglary and
risk against From Amaco Insurance Company. The insurance is done to protect the business
and boost confidence of the business in its operation. The main aim of the insurance is to
restore back the financial position of the business in case of risk occurred. The business will
be able to be compensated by the insurance company so that it can be able to pick its normal
operations. The business will be paying a monthly premium of sh.500 against the risk
insured.

1.8 Commencement of the Business

The business is supposed to start running 12 th January 2019. I think this will be appropriate
time for me because I would have settled and concentrate to my business. I would also have
completed my university level. I also feel that at that particular time I will be ready enough to
run my own business as I would have assembled all the resources required to start and run the
business.

1.9 Business Operation

Wananchi Wholesale will be offering bulky foodstuff the customers around and across the
county. There shall be abundant products to satisfy all the needs of the customers. Their shall
be after sales services that is ample parking, transportation, packaging etc. all this to create
good image of the business and attract more customers to the business. The business shall be
aiming at maximising customer satisfaction. The products will be of different size and

3
measurement with different prices. There will be also a discount rate for those customers
purchasing in large quantity.

1.10 Business Objectives

Objectives guide the business and give the business a direction on what is to be achieved at
the long run. They are set of target which any business must have so that to be able to work
and operate towards the future goals. Wananchi Wholesale has several objectives to attain in
future, these objectives are;

 Maximize customer satisfaction.

 Leading distributor of quality products.
 Market penetration and expansion.

1.11 Business Vision

To be the leader in provision of quality products and new value.

1.12 Business Mission

Build the best products, causing no necessary harm, use business to inspire and provide
solution to the society.

1.13 Business Motto

Forward ever backward never

1.14 Core Values

 Integrity
 Team work
 Transparency
 2Efficiency
 Commitment
 Reliability
 Loyalty
 Consistence

1.15 Business Policy

Wananchi Wholesale provides equal opportunities at all level of management

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1.16 Healthy and Emergency Measure
Any business is operating under uncertainty, in case there is any emergencies in the business,
there is an exit plan in the business premises, if its fire breakdown there is fire assembly
where all employees will assemble for safety purposes. The courageous employees will use
the fire extinguisher hanged around the business premise to put off the fire where possibly.
There I also an emergency number to call for help from the respective authority. These
emergency numbers are; 999

+254714141515

1.17. Justification of the Opportunity

The reason for choosing this kind of business is due to the unmet demand of the individuals
in the community. High population and high demand in the area but less supply of products
and services

1.18. Industry
The business belongs to a service industry because it will be offering goods to its consumers.
There is high competition in this industry and its growing very first due to daily needs and
demand. There is new technology involved in this industry whereby people open website and
do internet marketing and selling. Some have internet stores where various products are
displayed.

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 CHAPTER TWO

2.0 PRODUCTION PLAN

2.1 Operating Procedure for Inventory Control

2.2 Receiving Goods and Supplies

When goods and other supply get into the business there will be a serious thorough check up
and inspection of the goods from the receiving department. This is done to ensure the goods
brought in are safe and of quality, also to check if the goods are of right quantity according
the order, inspection help to see if there is damage on various commodities. Wananchi
Wholesale shall return unfit commodities, this helps to reduces business loses, so any
damaged products shall be taken back to the suppliers.

2.3. Storage and Control

Wananchi Wholesale will be having its own storage facilities which is partitioned according
for the storage of the different commodities sold by the business. The goods received will be
carefully put in respective storage place. There is some products which will be kept on the
business shelves for display and for sale. There shall be a monitoring and inspection of the
products from the store. The manager will be responsible and in charge for the store for a
number of years, like two years until when the business does well then hiring of store
manager will be done.

2.4 Scheduling And Rotation

There shall be inspection of the products in two days’ time that is Monday and Friday, this is
done for easy monitoring of the goods in the stores. The person in charge will be required to
carry out physical inspection of the goods in case there is any damages shall be recorded and
documented as loss to the business. There shall be controlling system for the inventory that
is, ‘last in first out’ .This system entails whatever inventory came last it should be the first to
be sold, this can help to avoiding expiring of the goods in the storage.

2.5 Security
Normally employees are the first suspects and responsible for any loss of business items.
There will be a strict rules and regulations in business that will help to minimise the loss of
the business properties. Every employee shall be responsible to its assigned department, there

6
shall be restriction of unnecessary movements from one department to another unless when
there is need, any employee caught stealing business property shall be responsible for the
consequences, there shall heavy penalty for those employees caught stealing, they will get
sucked and repay the product with double cost.

2.5 Procedure for Products Shipping

STEP I; Products identification, the customer identifies products interest to purchase

STEP II: Bargaining, the negotiation of the prices between the customer and the salesperson
to come at favourable price agreement.

STEP III: Payment, customer makes payment for the goods and issued with receipt from the
cashier.

STEP IV: Issuing of the products, customer shall be given the amount of products he paid for.

STEP V: Transportation; if necessary the goods shall be carried to the customers premises
with the business motor vehicle with little payment.

2.6 Business Unique Features

Wananchi wholesale will be having an outstanding outlook different from the others in terms
of colour and design. The be business will be offering high quality and quantity products to
its customer, high quality products help to build customer trust to the business, this will help
in attractive large number of customer hence increase in market share for the business.
Unique packaging of the products and display also helps to capture attention of the customers
in the business. Unique operations from the business, first come first serve no gender bias.
Good communication by use of good and persuasive terms when communicating with the
customers in convincing them to purchase the products. Pricing will be a bit lower than for
the competitors, this will help gaining competitive advantage in the market. This uniqueness
will enable the business survive in the market.

2.7 SWOT Analysis

Strength of the business

 The business offer products at affordable prices

 Offering high quality and quantity products
 Business offering after sales services to its customers
 Qualified employees with correct skills and experience

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  The business owner hold a bachelor degree of entrepreneurship and small business
management, it’s an added advantage to the business.

Weakness of the business

 Inadequate facilities in the business

 Inadequate space

From the above weakness am working out to see if I can get more space so that
customer to be served comfortable

Opportunities of the business

 Presence of holidays such as Christmas day whereby the demand of the products
increased tremendously
 Unmet demand for the customers, I will be providing adequate and bulky goods to
customers.
 High level of population growth in the region which enhance increase in demand for
goods and services

Threats for the business

There is a number of threats facing the business which may affect the business operations.
Some of these threats are as follows:

 Political instability in the country which cause war breakdown hence cause the closer
of business
 High competition in the market; Wananchi Wholesale face a number of competition
in market from, Zamoyoni Wholesale, Baraka Wholesale and Vibandani Wholesale.
 Tax regulations by the county government

2.8 Facilities Used in the Business

Item Quantity Cost ksh per Total ksh
item
Files 8 800 6400
Pick up 1 200,000 200,000
Tables 5 2,500 12,500
Chairs 5 1000 5,000
Computers 3 15,000 45,000

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3.9 Operational Requirement
Type of requirement Source Cost
License County government 3000
Insurance cover Insurance company 2000
Environmental certificate Sanitation and hygiene 2000
authority
Business permit Trading authority 1500
TOTAL 8500

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 CHAPTER THREE

MARKETING PLAN

3.0 Sales And Marketing Procedure

3.1 Customer Analysis

Wananchi wholesale target all the people in the market field. Majority of the customer will be
from Ujamaa town other expected customers will be from neighbouring town around and also
the learning institution located in ujamaa town. The customers are readily and can be easily
reached to purchase the products. The products will be able to meet customers’ needs on
daily basis and the business will ensure customer satisfaction.

3.2 Market Size and Trend

For the start up the market share will be medium as the business will be new into the market
environment. Probably an approximation number of customers expected on daily basis is
eighty, am expecting that the number will increase at a high rate with time due to increase in
demand and population growth. There is a projection for the business growth in annual basis
this will be due to expansion of the business caused by economic development of the town
and the county at large.

3.3 Competition and Competitive Edge

Wananchi wholesale shall face a number of competitions from other business offering the
same product. Normally competitors are threats to your business. They have been in the
market field for so long but Wanachi wholesales will use all the competitive strategies in
order to compete favourably in the market. The competitors of Wananchi wholesale are:
Zamoyoni wholesale, Baraka wholesale and vibandani wholesale. I did a survey and found
that there are still gaps to be filled in the market. Some of the competitors don’t offer quality
products and they work on selected days of the week. I decided that my business will run up
to Saturday to services.

I also found that there is scarcity of goods the available wholesale they don’t provide enough
products to the customers. Wananch will avail abundant of products enough for all customers
around and offering after sales services which competitors don’t have.

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3.4 Distribution
The business shall have its own means of transport to avail products to the customers’
premises. This will be one of the after sales services to the customers, when customer
purchase high quantity of the products will offered transport service. I will be the driver of
my own vehicle because the business is a start-up but after one and a half year the business
will be forced to hire a driver who will be carrying out distribution task for the customers.
The driver will be paid monthly with agreed amount of money.

3.5 Sales Tactics

Expansion of any business majorly dependent on the marketing strategy employed by the
business. Wananchi wholesale will use direct selling of the products, this enables physical
contact with the potential customers, it all enhance customers’ relation and also you will get
to know more on the customer’s needs. The manager will be the leader of the sales team this
will facilitates in getting in touch with your customers.

3.6 Advertising and Sales Promotion

The purpose of advertising is to remind the customers about the existing products in the
market and new products which has entered in the market, it create awareness of the business
products and persuade the customers to purchase your products. The advert should be
impressive, precise and should communicate directly to your customers. Advertisement will
enhance Wananchi wholesale to attract more customers and enhance survival of the business.

Wananchi wholesale will use the following advertising strategies in order to increase its
market share:

 Use of business posters; POSTERS will be displayed across the town. The posters
will contain picture of the market, location and products offer.
 Verbal whereby I will be talking to customers who come to purchase products to
inform others to come.
 Business contact also will be available to keep in touch with the customers and other
people.
 Use of friends to spread the information about the business, to influence other to
come and buy products from the business

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 SAMPLE POSTER OF WANANCHI WHOLESALE

HHHHHHHHHHHHHHWWANANCHI WHOLESALE
WW

 OPERATE FROM MONDAY-SATURDAY

 GOODS AVAILABLE AT AFFORDABLE PRICES
 SAVE YOUR MONEY FOR QUALITY PRODUCTS
 BUSINESS LOCATED AT UJAMAA TOWN ALONG
LIKONI –UKUNDA ROAD

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3.7 Pricing Strategy
The business will use skimming pricing, which the business will enter the market with bit
lower prices than its competitors and will increase the prices accordingly with growth of the
business. The lower prices will be set after considering all the cost involved in availing the
products. The prices will be favourable on the business side and to the customers, to avoid
operating and selling at a loss. This pricing strategy will enable the business to penetrate the
market by attracting more customers.

3.8 Credit Policy

At earlier stage Wananchi wholesale will not be offering products on credit terms, at this
stage the business needs more finance to facilitate its expansion. The credit will be offered
after sometimes when the business has large market share and when the business is stable in
the market. The credit will be considered after like one and a half year when the business
could be performing better.

There shall be condition for the credit to be offered to the customers these are:

 Should be a regular customer

 Should a trusted customer
 Ability of the customer to repay on time
 Assigned document showing the amount of credit offered and repayment date

When any customer will try to disappear with our money will going to face the arm of law,
and will be charged as theft case.

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 CHAPTER FOUR

4.0 Organizational Management Plan

The management team of Wananchi Wholesale will include General Manager, Human
Resource Manager, Finance manager, Purchasing manager and Sales manager. The business
owner will be the managing director of the business. Every personnel will be having his
responsibilities in the organisation.

4.1 Managing Director

Duties and responsibilities

 Evaluate data and employees performance

 Enforcing business policies and create an environment that employees hold one
another accountable for their actions.
 Delegate duties according to the departments needs
 Carry out staffing activity in the business
 Ensure daily functioning of the departments
 Offer training to the new employees
 Motivate staff to ensure they give out their best

QUALIFICATION

The manager of Wananchi wholesale will be the business owner holding a bachelor degree of
Entrepreneurship and Small Business Management. Has also undertaken training on field of
sales under Kisii Bottlers LTD. Has also attended Entrepreneurship Summit meetings and
acquire more knowledge on business start-up and management for growth.

4.2 Human Resource Manager

Duties and responsibilities

 Supervising the employees

 Giving updates on hiring and recruitment issues
 Addressing issues pertaining the employees complaints and harassment
 Informing Job application

QUALIFICATION

 Age 25-30

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  Working experience of 2years
 Holding Bachelor Degree in HRM
 Good communication skills

4.3 Finance Manager

Financial manager will carry out the following duties and responsibilities in the business

 Auditing of books of accounts

 Prepare payroll
 Assist in placing order for goods
 Assist in sales record keeping
 Prepare budget for the entire business

QUALIFICATION FOR FINANCIAL MANAGER

 Age 24-28
 CPA 3 holder
 Hold a bachelor degree in Financial management
 Woking experience of minimum 2 years
 Good communication skills

4.4 Procurement Manager

Duties and responsibilities

 Order taking
 Inventory control
 In charge of the business logistic
 Purchasing of the business stock
 Provide information about the stock flow

QUALIFICATION OF PROCUREMENT MANAGER

 Hold a degree in procurement

 CPA holder
 Working experience of at least 3 years
 Should have management skills
 Age between 25-30

15
4.5 Sales Manager
Sales manager will carry out the following duties and responsibilities for the business:

 Selling goods to customers

 Carry out marketing activities for business products
 Sales record keeping
 Provide information about the sales flow of the business

QUALIFICATION OF SALES MANAGER

 Hold a degree in Sales and Marketing

 Working experience of 2 tears
 Hold a CPA
 Good communication skills

For the start period the business owner of Wananchi Wholesale will carry out some of the
above stated duties and responsibilities by himself, this will go up to a period of 2 years when
the business will be stable and could have grown. This is done in order to avoid unnecessary
cost for the business. Recruitment for some post will be done later on for the above business
posts.

4.6 Employees Promotion

There will be a promotion to employees who have an outstanding performance in the
business. The employee who perform better than the others will be rewarded promoted to
another level of duties. Promotion act as a motivation to the employees in the business and
will enhance those lazy workers to put more effort in carrying out their duties so as to emerge
winner. It encourages employees to carry out their duties perfectly will boost quality services
in business.

4.7 Recruitment Procedure Selection

People will get information from the business posters about the employment opportunities
available, then they will sending application to Wananchi Wholesale, according to the
advertised post, after that selected personnel will be called upon for an interview by the
business management, what will follow is that the qualified individual will be selected and be
part of the business employees. Then they will be required to report for work on the indicated
date strictly.

16
The following will be guideline for recruitment and selection procedure:

Step I: advertised business post across the area

Step II: Application for the advertised post
Step III: Successful applicants called upon for an interview
Step IV: Job offered to the qualified individual

4.8 Measure of Performance

Performance of the business will be evaluated on the business output, income of the business,
customer satisfaction and goals achieved by the business. This will enable to knowing where
the business is, where it was before and where the business is be in future.

4.9 Remuneration of Employees

Employee will be paid on monthly basis; each employee will be paid according to the task
given by the business. The remuneration will be as follow:

Human Resource Manager Sh. 20000

Financial Manager SH. 15000

Procurement Management Sh. 15000

Sales Manager Sh. 10000

Security Sh. 9000

Clean Sh. 7000

4.9 Support Services

Wananchi Wholesale will work hand in hand with A-ONE Super market in provision of
products; A-ONE supermarket will be our support in the market field. Our financer will be
KCB bank because it’s one of my banker so it will be easy for me to present my documents

17
 and convince them to get financial assistance. Wananchi whole will also acquire incentive
from the county government which support entrepreneurs in the region.

4.10 Organisational Chart

The chart below presents the management team of Wananchi Wholesale, It comprise of
General manager as the senior most person in the business, followed be human resource
manager, then financial manager, procurement manager and sales manager. This team form
the pillar of the Wananchi wholesale.

WANANCHI WHOLESALE ORGANISATIONAL CHART

General Manager

Human Resource
Manager

Procurement Financial Sales Manager

Manager Manager

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 CHAPTER FIVE

5.0. FINANCIAL PLAN

5.1. Pre-operational costs

ITEMS COST
Installation 10,000
Marker research 2,000
Transport 1,000
Photocopying 700
License 2,000
Design 6,000
TOTAL 21,000

5.2. Pro –forma balance sheet

Balance sheet as at 31st Dec 2019

Fixed asset Ksh

Land 150,000
Motor vehicle 200,000
Less depreciation 5 % 15,000
190,000
Furniture 175,000
186,000
Current asset
Stock 40,000
Debtors 20,000
Cash at hand 40,000
100,000
Total asssts 286,500
Capital 206500
Current liabilities
Five year loan 50,000
Current liabilities

19
 Creditors 30,000
80,000
Total liabilities 286,500

5.3. Working capital

Working capital=current asset-current liabilities

CURRENT ASSETS KSH

Stock 40,000
Debtors 20,000
Cash at hand 40,000
100,000
CURRENT LIABILITIES
Creditors 30,000
Working capital 70,000

5.4. Projection cash flow ‘000’

Receipts Jan Feb March April May June July Aug Sept Oct Nov Dec
Loan 30 - - - - - - - - - - -
Sales 105 125 15 165 155 130 104 140 120 150 130 155
Debtors 30 25 20 60 35 30 20 - - 10 25 40
Disc 10 9 10 - 6 7 8 11 10 - - 9
received
175 1 180 225 196 167 132 157 130 160 155 204
59
Payments
Purchase - 5 6 90 55 40 25 52 50 40 50 70
Salaries 76 76 76 76 76 76 76 76 76 76 76 76
Creditors 10 5 - - - 9 - - - - - 73
Dis 3 1 1 - 1.5 - - - - - 1 0.5
allowed
89 132 137 166 132. 125 101 128 126 116 127 153.5
5

20
Cash flow 86 27 43 59 63.5 42 31 23 4 44 28 51
Bal c/d - 86 113 156 215 278.5 320.5 351.5 374. 378.5 422 450.5
5
Bal b/d 86 113 156 215 278. 320.5 351.5 374.5 378. 422.5 450.5 501.5
5 5

5.5. Pro-forma income statement (Trading profit and loss A/C)

ITEM YEAR 1 YEAR 2 YEAR 3
Sales 1,619,000 1609000 165,9000
Cost of sales 582,000 552,000 607,000
G.P 103,7000 1,057,000 1,052,000
G.P c/d 1,037,000 1,057,000 1,052,000
Disc received 80,000 70,000 65,000
Total 1,117,000 1,127,000 1,117,000
Expenses
Salaries 912,000 912,000 912,000
Electricity 12,000 12,000 12,000
Water 6000 5000 5500
Telephone 8000 8000 7500
Repairs 20,000 20,000 20,000
Transport fuel 50,000 45,000 45,000
Disc allowed 7,000 5,000 5,000
Total 1,015,000 1,007,000 1,007,000
Net profit before tax 102,000 120,000 110,000
Net profit after tax 89760 105,600 96,800

5.7. Desired Financing

Item Amount
Pre-operational cost 2,7000
Working capital 70,000
Fixed assets 186,000
Total 277,700

21
5.8. Capitalization
Item Amount
Owners contribution 600,000
Borrowed funds 320,000
Total investment

5.9. Profitability ratio

G.P ratio = G.P *1OO

Sales

1037000*100

1619000

64.05%

N.P ratio = N.P *100

Sales

102,000 * 100

1619000

=6.3%

Return on investment = N.P *100

Owners equity

Owners equity = ( open capital + N.P) - drawings

O.E = (206500 + 102000) -50,000

= 258,500

102000 *100

258, 500

= 3.9%

Asset turnover = sales revenue

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 Assets

1619000

286500

= 5.7%

APPENDICES

Appendix I: Application for Trade Licence

ALI HASSAN

P.O. BOX 234

MOMBASA

29 MAY, 2018.

TO

THE INCHARGE

MOMBASA TRADE LICENCE OFFICE

P.O BOX 324

MOMBASA

Dear Sir/Madam

RE: APPLICATION FOR TRADE LICENCE

I am hereby applying for a trade licence for the Wananchi Wholesale Shop which will be
located at Ujamaa town. The essence of this application is to fulfil the legal requirements for
running a business in Kenya.

Am looking forward for your quick positive response. Thank you.

Yours faithfully,

23
Ali Hassan.

0708475949

24
Appendix II: Curriculum Vitae

PERSONAL DETAILS

NAME: ALI HASSAN KATANA

DATE OF BIRTH: 3RD JULY, 1993

SEX: MALE

MARITAL STATUS: SINGLE

NATIONALITY: KENYAN

EMAIL: bablihassang@gmail.com

TELEPHONE: 0708475949

OBJECTIVES

I would like to work in an organization whereby I can exploit all my skills and capabilities.

I am innovative and great at team building ready to cooperate, and work under pressure.

EDUCATION BACKGROUND

2014 -2017: Kisii University College (Bachelor’s degree, Entrepreneurship and

Management), continuing student.

2010 – 2013: Shimba Hills High school (Secondary Education)

KCSE Grade B-

2002 – 2009: Mkokoni Pri.school (Primary Education)

KCPE; 296 marks

COMPUTER PROFFECIENCY SKILLS

Microsoft Office suite

25
Ms Word

Ms Excel

WORK EXPERIEMNCE

2015 -2016: Teacher (Kombani Secondary School)

Duties

Business studies and mathematics teacher.

Football games coach.

2014: Clerical work (Mama Amina Junior School)

Duties:

School fee collection.

Record keeping of school properties.

HOBBIES

Playing football

Swimming

Watching documentaries

REFEREES

Mr. Salim Kitauro Mr.Gichui

Principal, Shimba Hills High School Principal Kombani Secondary School
Phone: 0722674465 Phone: 0714844226

Mr. Juma
Director Mama Amina Junior Sch.
Phone: 0713464303

26
Appendix III: Sample Poster for Marketing

WANANCHI WHOLESALE
WANANCHI WHOLESALE

 OPERATE FROM MONDAY-SATURDAY

 OPERATE FROM MONDAY-SATURDAY
 GOODS AVAILABLE AT AFFORDABLE PRICES
 GOODS AVAILABLE AT AFFORDABLE PRICES
 SAVE YOUR MONEY FOR QUALITY PRODUCTS
 SAVE YOUR MONEY FOR QUALITY PRODUCTS
  BUSINESS LOCATED
BUSINESS LOCATED AT UJAMAA TOWN ALONG
AT UJAMAA TOWN LIKONI
ALONG–UKUNDA ROAD
LIKONI
–UKUNDA ROAD

27
28
Appendix IV: Insurance cover form

29
30
Appendix V: Loan Application form

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