UPHIGH CAMPING TENTS

ADDRESS: P.O BOX 34-4101, NAKURU

EMAIL: uphighcampingtents@gmail.com
WEBSITE: www.uphighcampingtents.co.ke
TELEPHONE NUMBER: +254706504510
TITLE: UPHIGH CAMPING TENTS BUSINESS PLAN
NAME OF CANDIDATE: BEATRICE WANJIKU NDERITU
INDEX NUMBER: 5111150159
CENTER CODE: 51115
CENTRE NAME: RIFT VALLEY INSTITUTE OF BUSINESS STUDIES
COURSE CODE: 1819
COURSE NAME: CERTIFICATE IN CATERING AND ACCOMODATION
MODULE 2
PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL IN
PARTIAL FULFILLMENT FOR THE AWARD OF
CERTIFICATE IN CATERING AND ACCOMODATION
MODULE 2
SUPERVISOR: MR. J. OBWANA
EXAMINATION SERIES: NOVEMBER 2022
 DECLARATION
This Business Plan assignment is the candidate’s original work and has not been presented for
any award in any other institution. No part of this business plan may be reproduced without
prior authority of the Candidate.
Beatrice Wanjiku Nderitu
REG NO:
Signature………………………………. Date ……………………………
I certify that the above mentioned students carried out the work detailed in this report under my
supervision.
Signature……………………………… Date…………………………….
Supervisor’s Name:……………………………………………………….

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 DEDICATION
I dedicate this business plan work to my parents, my friends and the entire family. They have
been a great source of inspiration all through.

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 ACKNOWLEDGEMENTS
First I would love to acknowledge the Almighty God for enabling me to come this far
with my education and for granting me knowledge and understanding to draft this business
plan. Secondly, I acknowledge the effort of my loving parents for supporting me in all my
basic needs and more specifically my education. I also acknowledge my tutors for
mentoring me and guiding me through my studies.

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 EXECUTIVE SUMMARY
The business name is Uphigh Camping Tent that will be a partnership owned by Beatrice and a
few friends. Uphigh camping tents was initiated in June 2020 as a friendship income generating
venture. The main activity of the partnership proposed business plan is to supply camping tents.
Uphigh Camping Tents will be located in Nakuru City and its environs. The proposed form of
ownership of Uphigh Camping Tents is partnership. The main reason why partnership was chose
is because it has simple operating structures, easy to acquire loan, taxes and loses are shared
equally by partners unlike in sole proprietorship where only one person is involved. The
organization will be operating from Monday to Sunday, 0800 hours to 20hours. The company
will be characterized by high quality products, highest standards of service and also competition.
Some of the goals and objectives the business is aiming to achieve includes; to improve customer
service, increase overall brand awareness and expand the business by putting up more offices.
The pricing strategy will involve considering the demand curve, cost associated with products
and services, environmental factors and prevailing market prices. The promotional methods to be
use will be advertising, online marketing, social media marketing, and sales promotion. The
owners of the business will be the CEOs of organization. They will be assisted by other
supporting and subordinate staffs to ensure that the operations of the business run smoothly. The
business operations will be carried out smartly and in an orderly manner in order to meet the set
goals. The business also has a financial plan that shows the financial status of the Uphigh
Camping Tents for the next two years. It also takes into account the profit margin establishing
the losses and smoothness of the flow of cash in the transaction of the business. The break-even
point of the business is also calculated there in.

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 Table of Contents
CHAPTER ONE: BUSINESS DESCRIPTION..............................................................................1
1.1 Business Name and Address..............................................................................................................1
1.2 Location and Address.........................................................................................................................1
1.3 Form of Ownership............................................................................................................................2
1.4 Type of Business................................................................................................................................2
1.5 Product and Service...........................................................................................................................2
1.6 Justification of Opportunity...............................................................................................................2
1.7 Industry.............................................................................................................................................2
1.8 Business Goals and Objectives...........................................................................................................2
1.8.1 Short Term Goals........................................................................................................................2
1.8.2 Long Term Goals.........................................................................................................................2
1.9 Entry and Growth and Objectives......................................................................................................3
1.9.1 Swot Analysis..............................................................................................................................3
CHAPTER 2: MARKETING PLAN...............................................................................................7
2.1 Customers..........................................................................................................................................7
2.2 Market Share/ Market Size................................................................................................................7
2.2.1 The Following Pie Chart Shows the Market Share......................................................................7
2.3 Competition Analysis.........................................................................................................................7
2.4 Promotion Strategy..........................................................................................................................10
2.5 Pricing Strategy................................................................................................................................10
2.6 Sales Strategy..................................................................................................................................10
2.7 Distribution Strategy........................................................................................................................11
CHAPTER THREE: ORGANIZATIONAL PLAN......................................................................12
3.1 Organizational Structure..................................................................................................................12
3.2 Managers and Qualifications...........................................................................................................12
3.3 Personnel; Number and Duties........................................................................................................14
3.4 Recruitment, Training and Promotion.............................................................................................14
3.5 Remuneration and Incentives..........................................................................................................15
3.6 Licenses, Permits and By-laws.........................................................................................................16
3.7 Support Services..............................................................................................................................16
CHAPTER FOUR: PRODUCTION/OPERATION PLAN..........................................................18
4.1 Production or Operational Facilities and Capacity...........................................................................18

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 4.1.1 Facility and Capacity.................................................................................................................18
4.1.2 Office Layout.............................................................................................................................19
4.2 Production or Service Strategy........................................................................................................19
4.3 Production Process..........................................................................................................................19
4.4 Regulations Affecting Operations....................................................................................................19
CHAPTER FIVE: FINANCIAL PLAN........................................................................................20
5.1 Pre-operational Costs......................................................................................................................20
5.2 Estimation of Working Capital.........................................................................................................20
5.3 Preparation of Cash Flow Projections..............................................................................................21
5.4 Preparation of Proforma Income Statements and Balance Sheet...................................................22
5.5 Calculation of Break-Even Point/Analysis........................................................................................23
5.6 Calculation of Profitability Ratios.....................................................................................................24
5.7 Desired Financing............................................................................................................................24
5.8 Proposed Capitalization...................................................................................................................24
References......................................................................................................................................25
Appendices....................................................................................................................................28

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 LIST OF TABLES
Table 2.1: Competition Analysis
Table 3.2: Remuneration and Incentives
Table 4.1: Facility and Capacity
Table 5.1: Pre-operational Costs
Table 5.2: Income Statements
Table 5.3: Proposed Capitalization
Table 5.4: Cash Flow Projections

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 LISTS OF FIGURES
Figure 1: Location and Address
Figure 2: Market Share
Figure 3: Organizational Chart

ix
 ABBREVIATIONS
RoC Return on Capital
RoA Return on Assets
GP Gross Profit
NP Net Profit
BEP Break Even Point

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 CHAPTER ONE: BUSINESS DESCRIPTION
1.1 Business Name and Address
The business is to be registered under the name Uphigh Camping tents. The name Uphigh
means being on top or aiming high making us to aim high in our business. Uphigh camping
tents was initiated in June 2020 as a friendship income generating venture. The main activity
of the partnership proposed business plan is to supply camping tents.

1.2 Location and Address

KIONDO-
LANET BARNABUS
STATE HOUSE NAIVAS SHELL KUNSTE
STAGE
ROAD

NAKURU-NAIROBI HIGHWAY

KANU 100
HOUSE FREE TOTAL PETROL
AREAME STATION

SIDUI
BUILDING

Figure 1: Location and Address

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1.3 Form of Ownership
The form of ownership falls under partnership. The business is to be financed by equal
contributions from the partners involved. Whereby, each partner will equally contribute Ksh
300,000 each plus a loan of Ksh 100,000. These entrepreneurs chose partnership due to its
simplicity and lack of a formal filling requirements.
It is easy to dissolve a partnership. It has a simple operating structure. Taxes are shared between
the partners, partners can easily get capital and also easy to get loans unlike sole proprietorship.
1.4 Type of Business
The business is a startup business and therefore targets retail and individual persons since it will
be for renting and also selling tents. At some point the business may require to import some tents
and others may be acquired locally.
1.5 Product and Service
The main product the business intends to sell and offer are camping tents. They will be provided
in different shapes, sizes and color according to the customer request.
We will provide high quality tents. The delivery cost around Nakuru will be catered for and also
putting up of the tent will be done by the business. Customers will enjoy our products since we
will offer them at affordable prices.
1.6 Justification of Opportunity
The business idea is to help solve the problem of accommodation when people go camping,
we offer accommodation at lower prices and there is comfortability in our tents. The
camping tents are not a thing many people are into as a business that is why I saw the
business gap and decided to take it and fill it. I want to make sure I have exploited all the
available resources.
1.7 Industry
The business is centered on the accommodation industry. The technology to be used ranges
from simple to modern methods. The business will use simple but modern methods to ensure
our customers have a great and luxurious feelings. Helps to create a feeling on customers of
being home away from home.
Like any other business we will have to keep up with the technology advancements. This
business will require around 2-5 employees depending on the event being handled.
1.8 Business Goals and Objectives
1.8.1 Short Term Goals
i. To learnt about the market trends and improve the customer service.
ii. To create a website and also have an online store operation to be able to cover a wide
range of customers to improve profitability.
1.8.2 Long Term Goals
o Increase overall brand awareness.
o Increase the total income of the business by 10% over the next two years.

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 o Open two more offices in different towns.

Our mission is to promote the values and ideas of the quality nature and eco-tourism in the
country.
Our vision is to offer unique moments of leisure in full contract with nature through a wide range
of outdoor activities.
1.9 Entry and Growth and Objectives
One month prior to the operation our services will be advertised and customers will be well
informed of the intended launch of the product into the market. Posters will be placed on
signboards in town centers and pathways. Once the business is in operation we will give
discounts to attract customers then the customers will help spread the word and with time we will
expand our business.
1.9.1 Swot Analysis
A technique that enables organizations or individual to move from everyday problems and
traditional strategies to a fresh prospective.

SWOT analysis looks at your strengths and weaknesses, and the opportunities and threats your
business faces. SWOT can help your company face its greatest challenges and find its most
promising new markets.

In SWOT analysis, strengths and weaknesses fall under internal environment while opportunities
and threats fall under external environment.

The SWOT Analysis framework is a very important and useful tool to use in marketing
Management and other business applications.

A clear understanding of SWOT is required for Uphigh Camping Tents business.

Strengths (internal, positive factors)

Characteristics of the business or individual that give it an advantage over others in the industry.

Positive tangible and intangible attributes, internal to an organization or individual.

Beneficial aspects of the organization or the capabilities of an organization, process capabilities,

financial resources, products and services, customer goodwill and brand loyalty.

Examples;

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 i. Abundant financial resources
ii. Well-known brand name
iii. Lower costs [raw materials or processes]
iv. Superior management talent
v. Better marketing skills
vi. Good distribution skills
vii. Committed employees
viii. Well equipped.
ix. Good customer service.
x. Good management.
xi. Good location of the business.

Weakness (internal, negative factors)

Characteristics that place the firm or individual at a disadvantage relative to others.

Detract the organization from its ability to attain the core goal and influence its growth.

Weaknesses are the factors which do not meet the standards we feel they should meet. However,
weaknesses are controllable. They must be minimized and eliminated.

Examples;

i. Limited financial resources

ii. Very narrow product line
iii. Limited distribution
iv. Higher costs
v. Weak market image
vi. Poor marketing skills
vii. Limited management skills
viii. Under-trained employees.
ix. Noise.
x. Competition from other businesses.
xi. Lack of own premises.
xii. Lack of own raw materials.

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Opportunities

Are external attractive factors that represent reasons your business is likely to prosper.

Chances to make greater profits in the environment - External attractive factors that represent the
reason for an organization to exist & develop.

Arise when an organization can take benefit of conditions in its environment to plan and execute
strategies that enable it to become more profitable.

Organization should be careful and recognize the opportunities and grasp them whenever they
arise.

Examples;

i. Rapid market growth

ii. Rival firms are complacent
iii. Changing customer needs/tastes
iv. New uses for product discovered
v. Economic boom
vi. Government deregulation
vii. Sales decline for a substitute product.

Threats (external, negative factors)

External elements in the environment that could cause trouble for the business - External factors,
beyond an organization’s control.

Arise when conditions in external environment jeopardize the reliability and profitability of the
organization’s business.

Examples;

i. Entry of foreign competitors

ii. Introduction of new substitute products
iii. Product life cycle in decline
iv. Changing customer needs/tastes
v. Rival firms adopt new strategies

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vi. Increased government regulation
vii. Economic downturn.

Aim of SWOT analysis

a) To help decision makers share and compare ideas.

b) To bring a clearer common purpose and understanding of factors for success.
c) To organize the important factors linked to success and failure in the business world.
d) To help individual or organization to understand their strengths and weaknesses.
e) It promotes strategic thinking.

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 CHAPTER 2: MARKETING PLAN
2.1 Customers
The business customers will include the residents of Barnabus area, pipeline, kikopey, kiondo
area, Free-area, section 58, Nakuru city, Shiners boys and girls.
2.2 Market Share/ Market Size
According to the test that was conducted by an entrepreneur the size of the product exceeds
20,000 customers. The customers will be served among four complying in the following
proportions. Reil tents 5000 customers, Ababa camping tents 4000 customers, Kimbilio tents
3000 customers and Uphigh camping tents 8000 customers.
2.2.1 The Following Pie Chart Shows the Market Share

9%
10%

UPHIGH CAMPING TENTS

REIL TENTS
ABABA CAMPING TENTS
23% 59% KIMBILIO TENTS

Figure 2: Market Share

2.3 Competition
A search through the most recent camping and tour guide in addition to several days spent
browsing Google provided a somewhat surprisingly short list of competing camping options. In
Nakuru, there are virtually no formal campsites and none of those available offer our proposed
service of providing visitors with camping gear. We expanded our competitor search outside of
Nakuru into surrounding counties in order to be able to educate ourselves on our entire
competitive market. This section will detail the campsites that we felt were most related to the

7
camping options we are offering and/or receive a large portion of backpacker traffic that comes
through Nakuru. By no means is this an exhaustive list and we do not feel that any of the
competitors listed below are direct competition. However, the list does provide a sample of the
existing camping and tour options in and around Nakuru that we may find ourselves competing
against.

Reil Tents

A camping and tour company located 15 kilometers away from Nakuru City that builds
completely customizable wilderness and cultural experiences for guest. Their trips are a
minimum of 7 days and a maximum of 14 days long and are only available to small groups. They
employ tour guides with 10+ years of experience, and have received very high ratings on
TripAdvisor. This company does not offer independent camping options.

Ababa Camping Tents

Its located 20 kilometers away from our business. Their website homepage boasts, “Ababa
Camping Tents is set within a 10 hectare reforestation project. With a choice of low impact
accommodations to suit every guest’s needs, Ababa Camping Tents promises the luxury traveler,
eco tourist or surfer a wonderful experience.” They offer camping for as little as Ksh. 700/night,
dorm beds for Ksh. 1200/night, or house rental options for up to Ksh. 30000/night. Camping is
only offered between December and May with a 2 night minimum stay. A portion of the money
that travelers spend here goes to reforestation projects in their area. Activities include surf, yoga,
festivals, horseback riding, game room, volleyball court, snorkeling, and meditation.

Kimbilio Tents

A lodging destination in Gilgil that offers motel rooms and a RV and camping site. They do not
provide gear to campers, but camping guests do have access to their communal rancho space,
pool, bathroom, washing area, and shower. Overall, they have received decent reviews, but are
continuously criticized for being outdated and “dirty”.

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Competition Analysis Summary

The Uphigh Camping Tents faces a variety of indirect competitors ranging from hostels, tour
providers, and other campsite options. Many of these competitors offer ecotourism destinations
and tours, but at a wide range of prices and without much variety in locations. The Camp is in a
unique position to offer a jungle experience complete with onsite activities at affordable pricing
with tour guides that have garnered specialized knowledge of the area by being residents. It is
also a one of a kind campsite complete with all necessary gear at a price that is competitive with
normal hostel lodging. All of these competitive destinations do offer lodging in an atmosphere
with great communal spaces full of young travelers which allows for visitors to have an
enjoyable trip even if the backpacker does not choose to participate in the day tours or activities.
This type of atmosphere should be nursed in collaboration with our Internships to offer a
competitive experience.

Currently there are three competing businesses in the area:

 Reil tents is 15 kilometers away from the business location.
 Ababa camping tents is 20 kilometers away from the business.
 Kimbilio tents is 28 kilometers away from the business.

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 Table 2.1: Competition Analysis
COMPETITOR STRENGTH WEAKNESS
Reil tents. Good customer service. High prices.
Reliable labour. Poor transport.

Ababa camping tents. Good experience. High prices.

Good marketing strategy. Poor service.

Kimbilio tents. Large capital base. Inadequate products.

Relevant experience. Poor customer service.

2.4 Promotion Strategy

I. Through Exhibitions
The business intends to visit three exhibition shows around the area and outskirts in a
span of one year, the cost incurred is estimated to be Ksh 35,000
II. Offering discounts to our customers in-order to encourage more customers to have the
urge for more products and services offered by our business.
III. Offering transportation.
Making it easy for the tent to be availed where needed.
IV. Offering our tents at variety of colors to be able to satisfy all our customers’ needs.
V. Putting up posters and signs to be able to spread the word and for the company to be
known.
2.5 Pricing Strategy
The selling price of the product is to be fixed with discounts offered on large scale buying.
The selling price of one tent will be 15,000 is 500 less than other companies.
Renting of tents will be 10,000 which is 500 less than other companies.
We will offer credit facilities to worthy customers.
Cash discounts will also be offered to customers who settle payments on the spot.
2.6 Sales Strategy
i. Offer additional special services like.
ii. Putting up of the tents
iii. Improve online presence
iv. High quality pictures

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 v. Create a beautiful space
vi. Invest in new tents and technology
2.7 Distribution Strategy
The distribution strategy of the tents will be entirely the company responsibility. It’s upon the
entrepreneur to have representatives who will ensure the tents are distributed to their respective
areas.
The cost of transport should not exceed 3000sh per month.

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 CHAPTER THREE: ORGANIZATIONAL PLAN
3.1 Organizational Structure
In the beginning, the organizational structure of Uphigh Camping tents is small. The business
will comprise of several founders who will be the key stakeholders and main shareholders of the
organization. Founders will be in charge of operations such as planning, organizing, staffing,
leading, coordinating, budgeting and controlling. They will also own and manage the business
and be responsible for all the business transactions. The company will hire a few number of
employees who are able to work together with the founders to materialize the company’s vision.
Therefore, the business structure is to be made up of;
 Chief Executive Officer
 Store manager
 Financial manager
 Marketing and sales executive
 Subordinate staff such as receptionists, cleaners, transporters
Chief Executive
Officer (CEO)

Financial Manager Store Manager Marketing and

sales executive

Transporters Cleaners Receptionists and

agents

Figure 3: Organizational Chart

3.2 Managers and Qualifications
Chief Executive Officer
Responsibilities
 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,
counselling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions; providing educational
opportunities.
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.

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 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
Store Manager
 Ensures that all tents are in good order
 Ensures that clients get tents when requested and delivered to them in the right time
 Ensures that tents are returned within the stipulated time and are in good order
 Ensures that the store is neat and well organized.
Administration and Human Resource Manager
 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Maintains office supplies by checking stocks; placing and expediting orders; evaluating new
products.
 Ensures operation of equipment by completing preventive maintenance requirements; calling
for repairs.
 Updates job knowledge by participating in educational opportunities; reading professional
publications; maintaining personal networks; participating in professional organizations.
 Enhances department and organization reputation by accepting ownership for accomplishing
new and different requests; exploring opportunities to add value to job accomplishments
Duties
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversees the smooth running of the daily office activities

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3.3 Personnel; Number and Duties
Receptionist
Responsibilities
 Welcomes guests and clients by greeting them in person or on the telephone; answering or
directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client
with a personalized customer service experience of the highest level
 Through interaction with clients on the phone, uses every opportunity to build client’s interest
in the company’s products and services
 Manages administrative duties assigned by the manager in an effective and timely manner
 Consistently stays abreast of any new information on the company’s products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to clients when they make
enquiries.
Marketing and Sales Executive Responsibilities
 Identifies, prioritizes, and reaches out to new partners, and business opportunities.
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of development
projects.
 Writes winning proposal documents, negotiate fees and rates in line with company policy
 Responsible for handling business research, marker surveys and feasibility studies for clients
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company
3.4 Recruitment, Training and Promotion
The recruitment of the employees will follow the modern channel of advertising through both the
social media and the mainstream media. The available vacancies and the respective
qualifications will be posted through various job sites i.e. LinkedIn, the advertisement will also
be aired on Radio which has a vast audience in Nakuru and the Great Rift Valley. Successful
applicants will be taken through a three stage interview in order to get the most suited. The first
stage will involve the applicants doing an aptitude test, successful applicants will proceed to the

14
second stage, which involves group work where applicants will be grouped and the most active
participants from each group picked by our hiring officer. The final stage will be the oral in
depth interview where the applicants will be vetted based on their experience, personality and
understanding of the job. The training process will take place within the farm where the new
employees will be able to the taken through the entire farm’s operations and the general
orientation process. The process of training and education will be continual through various
agricultural shows and exhibitions. Promotion of the employees will be performance-based as
measured by the key performance indicators on the particular job description.
3.5 Remuneration and Incentives
The breakdown of the monthly salaries of the workers for the first year of operation will be as
indicated in table 3.2 in the appendices section.
In addition to their remuneration the employees will be registered under a medical scheme, given
annual leaves and sick offs. There will be 11 O’clock and 3 P.m. tea for all employees. The
security officers and the cleaners will also be provided with gumboots, raincoats, torch and
clubs. The salespersons will earn an additional commission for surpassed sales targets. The
managers will occasionally offer shopping vouchers to employees who are disciplined and hard
workers.

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3.6 Licenses, Permits and By-laws
Uphigh Camping Tents will obtain an operational license from the County government of
Nakuru. This would give the business permission to carry out its day-to-day activities. This
license will be renewed annually at a cost of Kshs. 3000.
The organization will also obtain a certificate from the relevant agencies located in Nakuru City.
The business will go by the laws of Kenya according to the Constitution and the Labour Act. The
Occupational Health and Safety of the workers will also be put in check through the provision of
the protective gears.
3.7 Support Services
Accountant / Cashier
Responsibilities
 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides management with financial analyses, development budgets, and accounting reports;
analyses financial feasibility for the most complex proposed projects.
 Conducts market research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Responsible for administering payrolls
Duties of the Accountant
 Responsible for developing and managing financial systems and policies
 Ensures compliance with taxation legislation
 Performs cash management, general ledger accounting, and financial reporting
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization
Sales Agents
 Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client
with a personalized customer service experience of the highest level
 Through interaction with customers on the phone, uses every opportunity to build client’s
interest in the company’s products and services
 Manages administrative duties assigned by the human resources and admin manager in an
effective and timely manner

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  Consistently stays abreast of any new information on the organizations’ products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to customers when they
make enquiries (answer customer queries regarding the store and the merchandise)
 Finds out the customer’s needs, recommend, select and help locate the right merchandise,
describe a product’s features and benefits.
 Make suggestions and encourage purchase of products
 Provides information about warranties, manufacturing specifications, care and maintenance of
merchandise and delivery options
 Bags or packages purchases and gift wrap merchandise
Cleaners
 Responsible for cleaning the shop facility at all times
 Ensures that toiletries and supplies don’t run out of stock
 Cleans both the interior and exterior of the store facility
 Handles any other duty as assigned by the shop manager

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 CHAPTER FOUR: PRODUCTION/OPERATION PLAN
4.1 Production or Operational Facilities and Capacity
4.1.1 Facility and Capacity
Table 4.1: Facility and Capacity
Item Quantity Unit Cost Total Cost Capacity
(Ksh) (Ksh)
Tents 10 200000 2000000 20 people
Store fee 1 10000 10000 100 tents
Office 2 12500 25000 4 units
Vehicle (Pick-up) 1 1500000 1500000 -
Hiking pole 50 1000 50000 -
Hiking boots 100 1000 100000 -
Sleeping bags 100 2700 270000 100 people
Mountain climbing 100 1500 150000 100 people
kit
Total 4105000

The business does not require a lot of machinery. Being a service sector most of the transactions
are consumption of services such as hire or sell of camping tents, hire of hiking equipment and
hire of mountain climbing kit. However, machinery like vehicles are used to transport guests,
staff and equipment to and from the camping or hiking site. The business has one special car
used for the transport.
The business offer equipment for hire for such events as mountain climbing, rock climbing,
camping, and biking equipment. The equipment under each category is as follows; for camping
the business rents out tents, sleeping bags, mattresses, lanterns, chairs and tables, camping
utensils, coolers, stoves and Jiko, and camping cots. For hiking, the business offers hiking poles,
ruck sacks, gators and hiking boots. For biking the business offers shock pump, helmets,
hydration pack, gloves, park tool and bicycle.

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4.1.2 Office Layout

4.2 Production or Service Strategy

For Uphigh Camping tents to succeed, it must offer products and services that provide superior
benefits when clients compare them side-by-side to the benefits provided by competitor’s
products or services. The role of the strategy element is to describe how the products or services
will be sold, the target markets one will sell to, the marketing message one intends to apply to
convince customers to purchase from you, and the methods one will use to deliver this message.
Uphigh Camping tents will establish proper distribution channels that will ensure products or
services get in front of the targeted customers. The organization will also expand the target
markets and emphasis on positioning versus competitors. Media platforms such as radio, TV,
twitter, Facebook, and Instagram will be used to market our products or services to the targeted
groups.
4.3 Production Process
The following are the stages used for developing and planning a tour package: Market and
destination research, tour itinerary development, negotiations with tourism vendors, cost of a
package tour, and financial evaluation and pricing.
4.4 Regulations Affecting Operations
The largest source of revenue for many world destinations is tourism. Travel and tourism
marketing is used by destinations, suppliers and travel companies to spread the word out and
encourage people to go and visit a desired place. Travel and tourism is driven primarily by
economics, which, in turn, is driven by several factors ranging from the man made to natural.
These factors include; seasons, events, development, currency rate, travel trends, and
government support.

19
 CHAPTER FIVE: FINANCIAL PLAN
5.1 Pre-operational Costs

Table 5.1: Pre-operational Costs

Item Cost
Business registration 6000
Rent 30000
Research 30000
Permits 4000
License 15000
Purchase of insurance 13000
Marketing promotions 35000
Marketing brochures 10000
Legal fee 20000
Consultation fee 12000
Advertisements 10000
Water 2000
Electricity 1500
Operational costs 50000
Wi-Fi 2500
Telephone 10000
Total preoperational 251000
costs

5.2 Estimation of Working Capital

Working capital for Uphigh Camping Tent as at June 2021 and 2022.
WORKING CAPITAL 2021
CURRENT ASSET Ksh
Inventory 200000
Bank Account 250000
Cash at Hand 100000
Marketable Securities 240000
Accounts Receivables 110000
TOTAL CURRENT ASSETS 900000

CURRENT LIABILITIES
Creditors 45000

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Long term loan 50000
Accrued liabilities 20000
TOTAL LIABILITIES 115000
WORKING CAPITAL 785000
Assumptions
Inventory increased by 3% in the second year.
WORKING CAPITAL 2022
CURRENT ASSET Ksh
Inventory 290000
Bank Account 300000
Cash at Hand 140000
Marketable Securities 240000
Accounts Receivables 100000
TOTAL CURRENT ASSETS 1070000

CURRENT LIABILITIES
Creditors 50000
Long term loan 60000
Accrued liabilities 25000
TOTAL LIABILITIES 135000
WORKING CAPITAL 935000
Assumptions
Inventory increased by 3% in the third year.
5.3 Preparation of Cash Flow Projections
Assumptions
 Develop a cash flow for the 2 years.
 Annual depreciation is 10% of the investment cost.
 Salvage value is 10% of the investment cost.
 Loan was acquired at year zero.
 Annual repairs and maintenance is estimated at 1% of the investment costs.

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  Loan interest rate is at 5% on a reducing balance.
5.4 Preparation of Proforma Income Statements and Balance Sheet
Proforma Income Statements

Table 5.2: Income Statements

Year 1
Sales 5000000
Cost of products or services 1000000
A. Gross Margin 4000000

Operating expenses
Utility 500000
Salaries 2400000
Supplier expenses 100000
B. Total Operating Expenses 3000000
C. Non-operating expenses 50000
D. Income before tax (A- (B+C) 950000
E. Tax (30% of income) 285000
Net Income 665000

Balance Sheet of start-up (2020) and second (2021)

Balance for the year ended as of 30th June 2021
Current assets Current Liabilities
Cash at hand 200000 Account payable 200000
Bank account 700000 Total current liabilities 200000
Accounts receivable 300000
Inventory 100000
Total current assets 1300000 Non-current liabilities
Bank loans 650000
Bonds payable 250000
Fixed assets Total non-current liabilities 900000
Vehicle 550000 Total liabilities 1100000
Tents 300000 Capital 600000
Equipment 250000 Profits 700000
Total Fixed Assets 1100000 Total capital 1300000

22
Total Assets 2400000 Total liabilities and capital 2400000
Balance for the year ended as of 30th June 2022
Current assets Current Liabilities
Cash at hand 300000 Account payable 300000
Bank account 800000 Total current liabilities 300000
Accounts receivable 400000
Inventory 200000
Total current assets 1700000 Non-current liabilities
Bank loans 500000
Bonds payable 300000
Fixed assets Total non-current liabilities 800000
Vehicle 500000 Total liabilities 1100000
Tents 250000 Capital 750000
Equipment 250000 Profits 850000
Total Fixed Assets 1000000 Total capital 1600000
Total Assets 2700000 Total liabilities and capital 2700000
General assumptions
1 The value of the vehicle depreciated by 10% rate annually.
2 The investor continued to purchase equipment annually to meet the rising demand.
3 The current interest does not change from the start-up to the second year and will remain at
10%.
4 The long term interests also remain constant from start-up to the end of the second year at
10%.
5 Tax rate however, varies at start up 15% and second year 17%.
5.5 Calculation of Break-Even Point/Analysis
BEP units/value = Fixed Cost/ Contribution per unit

Fixed cost = Ksh. 4105000

Contribution per unit = Selling price per unit – variable cost per unit

= Ksh. 5000000/364 – 4060000/364

23
Hence, BEP = 4105000/ (13736.26 – 11153.85)
= 1590
5.6 Calculation of Profitability Ratios
Profitability ratios help determine the performance of company that is, how profitable a company
is. They also showcase how profitable owner’s money have been utilized in the organization.
Some of the profitability ratios i.e. return on capital employed, return on assets, gross profit, and
net profit have been calculated as shown in the appendices.
5.7 Desired Financing
The proposed business will require Kshs 6000000 at the start up. The funds will cater for the pre-
operation costs and other costs. The table in appendices shows the breakdown of the desired
financing.
5.8 Proposed Capitalization

Table 5.3: Proposed Capitalization

Funding Kshs Percentage
Savings account 35000 19.23
Bank loan 100000 54.95
Father support 25000 13.74
Mother and siblings 7000 3.85
Friends 15000 8.24
Total Investment 182000 100

24
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27
Appendices
Preparation of Cash Flow Projections

Table 5.4: Cash Flow Projections

Years
A. INFLOW 0 1 2
Loan 6000000 - -
Sales - 5000000 5150000
A. TOTAL INFLOW 6000000 5000000 5150000

OUTFLOWS
Investment cost 6000000 - -
Labour cost - 2400000 2400000
Fuel - 100000 100000
Repair and maintenance - 60000 60000
Loan principal - 1200000 1200000
Interest on Loan - 300000 240000
B. TOTAL OUTFLOWS 6000000 4060000 4000000

C. NET FLOW(A-B) 0 940000 1150000

Depreciation (Subtraction) - 600000 600000
D. Profit before tax - 340000 550000
E. Profit after tax - 306000 495000
Add depreciation - 906000 1095000
Add Salvage Value - - 600000
F. Final Cash Flow - 906000 1695000

Recruitment, Training and Promotion

Recruitment and training are still ongoing and therefore people interested in working with us are
advised to forward their resume via the email. The shortlisted ones will be contacted and told the
way forward.
Assets
The organization assets are in good conditions although depreciation occurs at a rate of 10 – 20%
annually. Proper maintenance and repair services should be done quarterly a year to keep the
assets in good working conditions.
Probability Ratios (PR)
Return on capital employed (RoC)
RoC = Net Operating Profit/ Capital Employed * 100%
RoC = 700000/1300000 * 100 = 53.85 %

28
Return on assets (RoA)
RoA = Net Profit/Total Assets
RoA = 700000/2400000 = 0.29 or 1:3.4
Gross profit (GP)
GP = Gross profit/ Sales * 100
Where, Gross profit = Sales + Closing Stock – Op stock – Purchases – Direct Expenses
Net profit (NP)
NP = Net Profit/Sales * 100
Where, Net profit = Gross profit + Indirect income – Indirect Expenses

29
30