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DIANA WACHUKA MWANGI

BUSINESS PLAN.

BUSINESS NAME : NUTRIVITALITY INSTITUTE

NAME : DIANA WACHUKA MWANGI

ADMISSION : CND-J/0003/THI//21

COURSE NAME : CERTIFICATE IN NUTRITION AND DIETETICS

SUPERVISOR : MR. BOBBY

INSTITUTE NAME : THIKA SCHOOL OF MEDICAL AND HEALTH

SCIENCES

PRESENTED TO : KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILLMENT

FOR THE AWARD OF CERTIFICATE IN

NUTRITION AND DIETETICS

EXAM SERIES : SEPTEMBER 2023

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DECLARATION

I Diana Wachuka Mwangithis is my original work and has never been submitted to any
examination body for the award of certificate.

NAME : DIANA WACHUKA MWANGI

ADMISSION :CND/J-0003/THI/21

Signature: _______F.A.O_______________________
Date:__20/09/2023______________________

SUPERVISOR: MR. BOBBY

Signature: ______________________________ Date:________________________

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DEDICATION
I dedicate my work to my lovely parents and siblings who have supported me greatly
throughout my academic life.

My God bless you all abundantly.

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ACKNOWLEDGMENT

I am indebted to my almighty God who has been with me throughout the whole preparation
of the project. I also wish to pass my heartfelt gratitude and my valued support to all those
who participate in the completion of this work.

To my parents especially for their unconditional and unlimited moral,social and financial
support that I needed ,the most of your effort only God can reward you best.

To my classmates,I also salute them for their effort and cooperation in making it successful.
Not forgetting my lectures who helped planning ,preparing,researching,teaching and
encouraging me for personal development via tutorial and pastoral work.

Thank you so much.

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Table of Contents
DECLARATION i

DEDICATION ii

ACKNOWLEDGMENT iii

CHAPTER ONE 1

BUSINESS PLAN 1

1.1 BUSINESS NAME. 1

1.2 BUSINESS LOCATION AND ADDRESS 1

1.3 FORM OF OWNERSHIP. 2

1.4 TYPE OF BUSINESS 2

1.5 PRODUCT AND SERVICES 2

1.6 ENTRY TO BUSINESS AND GROWTH 2

1.7 GOALS OF THE BUSINESS 2

CHAPTER TWO 3

2.0 MARKETING PLAN 4

2.1 POTENTIAL CUSTOMERS 4

2.2 MARKET SIZE 5

2.3 COMPETITORS 5

2.4 METHODS OF PROMOTION AND ADVERTISEMENTS 8

2.5 PRICING STRATEGIES 8

CHAPTER THREE 9

3.0 ORGANIZATIONAL PLAN 9

THE ORGANIZATION CHART: 12

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3.1 RECRUITMENT S TRAINING AND PROMOTION 12

3.2 Remuneration and Incentives 13

3.3 PERMITS LENIENCE AND BY-LAWS 13

CHAPTER FOUR 15

4.0 OPERATIONAL PLAN 15

4.1 OPERATION FACILITIES AND CAPACITIES 15

4.2 Production Strategy 16

Monthly material requirement Error! Bookmark not defined.

Monthly Cost of Transportation Error! Bookmark not defined.

Monthly Labor Requirement Error! Bookmark not defined.

4.3 Monthly Production Expenses 18

4.4 Cost of production 18

4.5 Production process Error! Bookmark not defined.

4.6 Regulation affecting operation Error! Bookmark not defined.

CHAPTER FIVE 20

5.0 FINANCIAL PLAN 20

5.1 PER-OPERATION EXPENSES 20

5.2 WORKING CAPITAL. 21

Assumptions 22

5.3 PROFORMA INCOME STATEMENT 23

5.4 PROFORMA BALANCE SHEET 24

Proforma balance sheet 25

5.6 Break Even Analysis 33

5.7 Financing 33

5.8 Source of Finance 34

5.9 Security 34

5.10 Return on Equity 35

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CHAPTER ONE

BUSINESS PLAN

1.1 BUSINESS NAME.

The investment I intend to start shall operate under the name NutriVitality Institute and is
derived from my interests in Nutrition and dietetics . The name shall create an impression of
a relaxed atmosphere favorable to most students who will be coming to have their nutrition
testing Fan yang service lab .

1.2 BUSINESS LOCATION AND ADDRESS

The location shall be Garden City Business Park in Rosters. Garden city is about 3
kilometers from the Central Business District. Operation shall be in a rented premise in a
building called MiViDa Its a single floor building. Its size is about 20m by 15m.
Alsops-Roysambu junction road area is a medium populated area which has both residential
and commercial buildings. Businesses operating in the area are mainly stores for both
industrial and household commodities petrol stations and residential places like pubs. People
living in this area are middle class income earners.

The location is strategic because the area is near many colleges and schools. Also it is near
Nairobi central business district hence ease of transport. The area is also well supplied with
water and electricity that shall be necessary for the operation of the business. The security in
the area is also adequate as Alsops station is about 500M from NutriVitality Institute.
The Business shall operate using the address below:

NutriVitality Institute,

PO BOX 3810,

Rosters, Nairobi

MOBILE PHONE NO: …….……………………..

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1.3 FORM OF OWNERSHIP.

The business shall be solely owned at the time of its inception hence it shall be sole
proprietorship form of ownership. I shall be the owner as well as the manager.

The reasons for operating as a sole proprietor shall be as follows:-

- I shall be the only decision maker thus has the freedom of implementing my decisions
and ideas.
- I shall enjoy all the profit from the business since no money shall be spent on salaries
for workers.
- I shall have close supervision therefore establish a good relationship with my
customers.
- I shall be accountable to myself
- I shall require just a few legal procedures to set up my business

1.4 TYPE OF BUSINESS

The business shall be a service type of business which offers nutrition services.

1.5 PRODUCT AND SERVICES

The business shall be offering nutrition services to students. The product shall be laboratory
equipment , laboratory chemicals and reagents and a prepared room for special test and
other experiments services. The student shall be at liberty to express their views on the
services offered which shall be considered.

1.6 ENTRY TO BUSINESS AND GROWTH

There is a growing need for service lab services for students in Rosters. This is because:
There are many colleges and secondary schools in Rosters that do not offer Nutrition
services to the students due to lack of requirements and well trained personnels.

1.7 GOALS OF THE BUSINESS

The business shall be visionary oriented having specific goals which shall be targeted. The
long team goals of the business shall be:

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The business shall be intending to transform into a learning institution. The short team goals
shall be offering other services including library services, guidance and counseling services
and internet services to the students in the first two years of operation.

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CHAPTER TWO

2.0 MARKETING PLAN

2.1 POTENTIAL CUSTOMERS

The potential customers shall be students in colleges , universities and secondary schools.

The students colleges shall be expected to come from the following colleges:

1.KENYATTA UNIVERSITY

PO BOX, 52428

RUIRU.

2.KASARANI HIGHSCHOOL

PO BOX 4691

KASARANI

3. ZETECH UNIVERSITY

PO BOX 4631

NAIROBI

4. KCA UNIVERSITY

PO BOX 88951

NAIROBI.

5. UTALII COLLEGE

PO BOX 6348

NAIROBI.

Laboratory shall only be for students. As most of these institutions shall be operating at
different seasons Nutrition services shall be offered at all times and seasons. The payments
shall be made by bankers’ cheques or cash at the beginning of every month however
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agreements between the management and the students shall be made for those who shall not
be in a position to pay all amounts at the stated time.

2.2 MARKET SIZE

Of the students attending these institutions. About 30% need Nutrition services . Taking the
market to be about 100% the competitor has been able to exploit 80% of the total market the
remaining 20% is left for business exploitation.

Since more students are enrolling in this learning institution the demand for nutrition
services is increasing and this ensures growth potential of the proposed business

The business increases the market share by engaging in various advertisements and
promotions strategies and its maintenance strategy shall include provision of quality and
reliable services.

2.3 COMPETITORS

All competitors shall be direct competitors in that they shall be offering similar services to
those of the proposed business.

They shall be:

GOODLIFE NUTRITION

PO BOX 2468

NAIROBI

It is located at park road about 800m from the proposed location of the business. Being nearer
to the road than the proposed business location it shall have an advantage over the proposed
business. However the noise of the passing vehicles and the nightclubs nearby shah pose a
disadvantage to the business.

TELENUTRITS

PO BOX 6348

NAIROBI
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It is located off park road and about 1km from the proposed business location .Being just a
few meters from the road it has similar advantages and disadvantages as Goodlife to the
proposed business.

SAM-CO NUTRITION

PO BOX 28365

NAIROBI

Its located off Bondo road about 200m from the road. It is about 1.5km from the proposed
business location. Its location near the central business district makes it an advantage over
the proposed business.

THE SIZE OF THE COMPETITORS COMPARED TO THE PROPOSED BUSINESS.

VARIABLES SAM-CO TELENUTRIT GOODLIFE FAN YANG

NUTRTION S NUTRITION SERVICE LAB
S

ASSETS WORTH WORTH WORTH WORTH

5,000,000.00
6,000,000.00 4,000,000.00 4,254,116.00

NO OF
EMPLOYEES
10 15 8 10

SALES 450,000.00 400,000.00 300,000.00 300,000.00

VOLUME

NO.OF 1 1 1 1
BRANCHES

COMPARISON OF THE PROPOSED BUSINESS PRODUCT AND SERVICE TO

THOSE OF THE COMPETITORS.

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VARIABLES SAM-CO TELENUTRIT GOODLIFE FAN YANG

NUTRITION S NUTRITION SERVICE LAB

QUALITY FAIR FAIR FAIR HIGH

REPUTATION GOOD FAIR GOOD BEST

The quality of the service offered by the proposed business shall be better than those of the
competitors due to the skilled staff employed and adequate materials . The business shall be
allowing flexible payments. Whereby customers shall pay in installments’ unlike the
competitors. The staff shall also be trained on customer relationships which is a challenge
facing the competitors.

STRENGTHS AND WEAKNESS OF THE COMPETITORS

TELENUTRITS

STRENGTHS WEAKNESS

Better facilities Insecurity

Stylish appearance Congestion

SAM-CO NUTRITION

Strengths Weakness

Punctuality of the services offered e.g. Shortage of water poor hygiene

meal

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GOODLIFE NUTRITION

Strengths Weakness

Better facilities Lack of entertainment. Congestion

2.4 METHODS OF PROMOTION AND ADVERTISEMENTS

ADVERTISEMENTS

The business shall use posters and mass to advertise its operation the posters shall be placed
in the learning institution where the customers shall be expected to attend. The mass media
shall be through local radio stations including ,Lolwe TV, Mikai Fm and Radio Ramogi.

The cost of advertisement is expected to be approximately 50,000 per year.

PROMOTION.

The business shall use promotion techniques to make it popular they shall include the
following. The business shall engage itself in looking for job opportunities to graduating
students staying in the institution. The business shall provide adequate information to the
secondary students and the various colleges and universities in Nairobi. Discount on
payment shall be given to those customers who will have stayed in the service lab for a long
period Free computer packages courses shall be offered to those students who will have
stayed in the institution for a long period of time

2.5 PRICING STRATEGIES

The objective of the pricing strategy shall be to offer the services at affordable prices .
business shall use the total cost of producing the percentage profit shall be calculated to get
the prices of the product. The monthly charges of the institution shall be cash 8000.00 per
person ,the business will also offer credit services to the customers .

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CHAPTER THREE

3.0 ORGANIZATIONAL PLAN

The business shall be a small enterprise and the personnel shall be quite minimal. The owner
shall manage it with assistance from both skilled and unskilled personnel.

BUSINESS MANAGER AND QUALIFICATIONS

NAME: SIMON KANGANGI

NATIONALITY: KENYAN

ACADEMIC QUALIFICATION: DIPLOMA HOLDER IN BUILDING TECHNOLOGY

Duties and responsibilities

- Formulating policies such as long term objective of the business

- Recruiting and training staff required for running the business
- Enhancing good relationship between the staff and the students
- Rewarding and paying salaries to the staff
- Dealing with disciplinary matters
- Performing interviews during employees recruitment s

SALARY

The manager shall be entitled to a monthly salary of 35,000 cash per month.

ASSISTANT MANAGER

NAME, NATIONALITY, AGE, POSITION, SALARY PER

MONTH,K/SH.25,0
KENNY KENYAN 28 Ass MANAGER
00.00
MUGO

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Duties and responsibilities

Accountant

- Preparing books of accounts and statements

- Making all payments approved by the manager
- Issuing receipts
- Collecting all the money from the customers
- Preparing the budget in conjunction with the manager

MATRON

- Supervising the preparation of meal

- Supervising the cleaning activities
- Ensuring that the client are comfortable in the Institution
- Considering the welfare of the customers and reporting their worries to the manager
- Supervising the work of the guards

OTHER PERSONNEL AND THEIR DUTIES

The enterprise shall have three guard, two cleaners and four lab-technician

GUARDS

Qualifications

AGE: 30 YRS EXPERIENCE AS A WOMAN

EDUCATION: ANY TRAINING AS A GUARD

DUTIES

i Keeping all intrude from the premises

ii Ensuring adequate security to both the customer and the properties within the
premises
iii Reporting all criminal cases to the matron or the relevant authority

CLEANERS
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Qualifications

Age: about 18yrs

Duties

i Carrying out all the cleaning activities within the premises

ii Taking care of the flower bed
iii Watering the flowers surrounding the premises

LAB-TECHNICIAN

Qualifications

Age: about 20 years

Education: certificate in food and beverage/craft in catering.

Experience: not less than 20 yrs experience as a caterer in a similar premises.

Duties

i Preparing experiments
ii Serving their customer
iii Performing all lab cleaning duties

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THE ORGANIZATION CHART:

The above structure of organization shall help run fan yang service lab

3.1 RECRUITMENT S TRAINING AND PROMOTION

A Requirements

After advertising for the vacant positions, recruitment shall be strictly on merit. The factors to
be considered shall be:

i Academic qualification
ii Job experience
iii Working experience etc

They shall be done through interviews conducted by the manager.

B Training

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The training shall be conducted by the manager assisted by the existing experienced ones like
cleaners guards etc .the staff shall also be trained through seminars and workshops that shall
be carried out by the managements. These shall be the matron accountants and lab
technicians .

C Promotion

Promotion shall be done with an expansion of the business. It shall be done through appraisal.
Interviews performed by the manager where the excellence staff shall be promoted in
advance. Their rewards shall be in the form of increased salaries and power.

3.2 Remuneration and Incentives

The employees shall be rewarded by monthly salary

The table below illustrates the proposed salary for various employees.

TITLE SALARY PER MONTH (IN KSH)

GUARDS 7,000.00 PER PERSON

CLEANERS 4500.00 PER PERSON

LAB-TECHNICIAN 10 000.00 PER PERSON

The employees shall be receiving soft loans which shall not be more than their annual pay
while repayment shall be on a monthly basis at interest.

Allowances shall be given to the staff in case where the sales rise as an incentive to the staff
for their good performance. The staff shall be provided with experiments while on duty.

3.3 PERMITS LENIENCE AND BY-LAWS

LICENSE

The business shall acquire a license before it commences its operation. Trading license shall
be obtained under the trade license ACT CAP 496.These shall be granted by local authority.

Public health

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Before starting operation, the business shall obtain a health certificate from the public health
officer which shall be renewed annually. It shall ensure good working conditions for the
workers and hygiene and all testing places for the customers.

Support services

The following are the organizations that will offer professional supporting services to the
business.

i Legal services

For legal counseling the business shall engage the service advocates company to represent
and give legal advice.

ii Banking services

The business money shall be deposited in CENTRAL BANK OF KENYA ,KCB)The bank
shall offer finance in terms of loan and overdraft. The Kenya chamber of commerce and
industry shall also be visited from time to time for advice regarding the business success and
for making and maintaining contact in the business community.

iii Insurance services

iv NUTRIVITALITY INSTITUTE shall be insured against fire burglary and fidelity

risks. The blue shield insurance company shall offer insurance services.

v Auditing services

For auditing services the business shall have its books audited by MANAGER AUDITING
COMPANY to ensure that all the books of accounts are prepared as per statutory requirement
i.e. ACT CAP 486

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CHAPTER FOUR

4.0 OPERATIONAL PLAN

4.1 OPERATION FACILITIES AND CAPACITIES

The equipment and facilities to be used for production are as shown below.

Item Cost per unit(K

SH)

1 Alcohol lamps 19,300

2 Ph meters 7,000

3 Safety gear 5,000

4 Pipette 260

5 Test tubes 80

Cups 250

Beakers 100

mi 100

Kettles 1100

Sieves 50

Knives 100

Kits 4300

Glassware 800

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Hectometers 14000

Incubators 7500

Brooms 3000

Basin 100

Tables 1000

Stools (timber 500

made)

Chairs 25000

Total 323,740

Installation costsKSH

Item Cost( KSH)

Assembling double Decker beds 31 units 3000.00

Total 3000.00

All their equipment and their spare parts are locally available. The equipment and facilities
shall be purchased prior to the starting of the business the supplier of the double Decker and
furniture shall provide the maintenance and repair services when needed.

4.2 Production Strategy

NutriVitality Institute shall offer laboratory services, equipment , chemicals and other
reagents experiments. Hygiene preparation for the experiment shall be highly deserved; these
shall be done under the supervision of the lab technician and tidiness shall be maintained in
the premises and its surroundings still under the supervision of the matron. Noise and other
interruptions shall be discouraged for a good studying environment .

Direct workers are:

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i The matron
ii The guards
iii The cleaners
iv The lab-technician

Indirect workers are:

i Accountant
ii The manager

The levels of skills that shall be required are stated below.

MANAGER HE/SHE

​ Must have a level 0-level education

MATRON HE/SHE

Must have 0-level education

Must have a certificate in catering services from recognized institution

ACCOUNTANT HE/SHE

Must have 0-level education

Must have at least C.P.A level 2 certificate

The monthly cost of labor shall be as below:

Indirect workers Number Cost per NO. of hours Total (in KHS)
hours(KSH)

Manager 1 81 248 35000.00

accountant 1 41 248 20000.00

Direct workers

Matron 1 60 248 15000.00

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Lab-technician 4 20 248 20000.00

Guards 3 28 248 21000.00

Cleaners 2 18 248 9000.00

total 120000.00

4.3 Monthly Production Expenses

The preliminary production expenses that shall be incurred are as follows:

Expenses Amount (KSH)

Renovation of the building 50,000.00

total 50000.00

THE MONTHLY PRODUCTION OVERHEAD SHALL BE AS STATED BELOW:

Overheads Amount(KSH)

Rent 35000.00

Electricity 8000.00

Phone charge 5000.00

Water 5000.00

total 53000.00

4.4 Cost of production

At any particular time the service lab shall be offering services to at least one hundred
people per day.The total cost of production per month shall be approximately 300,448.00

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Below is a table of licenses to be obtained:

license source Cost

Local trade authority license Nairobi city council 20000.00

Health license Ministry of health 10,000.00

Total 30,000.00

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CHAPTER FIVE

5.0 FINANCIAL PLAN

The chapter analyzes all the major aspects of finance in the whole business plan .

5.1 PER-OPERATION EXPENSES

Below is a table of the cost that shall be incurred before the business is put in operation.

Item Amount(KHS)

Water(deposit) 35000.00

Electricity installation 15000.00

Mobile phone 5000.00

Licensing and registration 10000.00

Renovation(building) 50000.00

Tools and equipment 323740.00

Advertising 15000.00

Miscellaneous 5000.00

Equipment installation 3000.00

Total cost 496740.00

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Below is a table of the asset that shall be required to start the business.

Fixed asset Amount (KHS)

Table and chairs 475000.00

Beds and mattresses 182900.00

Cooker 19300.00

Fridge 25000.00

Television and radio 21500.00

Cutlery 26890.00

Tanks and basins 500.00

Current assets

Gas cylinder 2000.00

total 325590.00

5.2 WORKING CAPITAL.

Below is a table of the estimated amount of capital needed for running of the business and in
this case for the first 3yrs of operation?

1st year 2nd year 3rd year

Salaries and wages 1440000.00 1454000.00 1464000

Water 60000.00 60000.00 60000

Electricity 96000.00 96000.00 96000

Mobile phone 60000.00 70000.00 80000

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Prepaid services

Rent 420000.00 420000 420000

Advertisement 50000.00 66000 30000

Transport 67800.00 100000 68000

Maintenance 50000.00 100000 100000

Insurance 100000.00 100000 100000

Raw materials 1905576.00 1900000 1900000

Stationery 12000.00 12000 12000

total 4261376.00 4318000 4300000

Assumptions

I The salaries and wages shall be increased with time according to their output
II Maintenance cost shall be expected to increase with time due to depreciation of the
tools and equipment
III Rent electricity and water bills shall be expected to vary over the period
IV The cost of raw materials shall be expected to vary over the period

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5.3 PRO-FORMA INCOME STATEMENT

NutriVitality Institute

TRADING PROFIT AND LOSS ACCOUNT

FOR THE YEAR FOR THE YEAR FOR THE YEAR

ENDING 31ST DEC ENDING 31ST DEC ENDING 31ST DEC
2023 2024 2025
Sales 5040000.00 5040000.00 5040000.00
Direct cost
Raw materials 1905576.00 1900000.00 1900000.00
Labor cost 576000.00 590000.00 600000.00
Total direct cost 2481576.00 2490000.00 2500000.00
Gross profit 2558424.00 2550000.00 2539500.00
O/H expenses
Salaries (ADM) 660000.00 660000.00 660000.00
Rent 420000.00 420000.00 420000.00
Water 60000.00 60000.00 60000.00
Prepaid services 60000.00 60000.00 60000.00
Electricity 96000.00 96000.00 90000.00
Advertisement 50000.00 40000.00 30000.00
Stationary 12000.00 10000.00 12000.00
Transport 67800.00 66000.00 68000.00
Maintenance and 50000.00 50000.00 70000.00
repair 100000.00 100000.00 100000.00
Insurance 20000.00 20000.00 20000.00
License 12000.00 12000.00 12000.00
Bank charges 330000.00 379500.00 436000.00
Loan interest
TOTAL O/N 1937800.00 1973500.00 2044425.00
EXPENSES

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Trading profit 921424.00 866500.00 775075.00

Less depreciation 905237.00 843266.00 726514.00

Net profit /tax 905237.00 843266.00 726514.00

Net profit and loss 905237.00 1748463.00

a/c
905237.00 1748463.00 2474977.00

Net profit and loss

a/c/c f

5.4 PRO-FORMA BALANCE SHEET

NutriVitality Institute

BALANCE SHEET AS AT 1ST JAN 2023

Fixed assets Amount (KSH)

Tools and equipment 276240.00

Furniture and fittings 47500.00

Current assets

Stock of raw materials 158798.00

Cash at hands 100000.00

Cash at bank 3571578.00

Debtors 100000.00

Current liability

Tax and insurance 100000.00

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Long team bank loan 2242000.00

Net current assets 4296116.00

Liabilities 2800000.00

Total assets 1996116.00

Capital 2096116.00

Introduced profit -

Long team borrowing 2242000.00

Less repayment -

Total 4296116.00

Pro-forma balance sheet

NutriVitality Institute

BALANCE SHEET AS AT 1st JAN 2024

FIXED ASSETS AMOUNT (KSH)

Tools and equipment 276,240.00

Furniture and fittings 47500.00

(Less depreciation) (307553.00)

CURRENT ASSETS

Stock of raw material 170000.00

Cash at hands 150000.00

Cash at bank debtors 400300.00

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CURRENT LIABILITIES

Tax and insurance 100000.00

Long term bank loan 1912000.00

NET CURRENT ASSETS

4901353.00

(LIABILITIES)
2012000.00

TOTAL ASSETS
2901253.00

CAPITAL 2096116.00

Introduced profit 905237.00

Long term banking 2242000.00

Less repayment (330000) 1870000.00

4901533.00

PRO-FORMA BALANCE SHEET

NutriVitality Institute

BALANCE SHEET AS AT 1ST JAN 2024

FIXED ASSETS AMOUNT (KSH)

Tools and equipment 276,240.00

Furniture and fittings 47500.00

(Depreciation 295785.00

CURRENT ASSETS

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Stock of raw material 180000.00

Cash at hand 100000.00

Cash at bank 4755079.00

Debtors 300000.00

CURRENT LIABILITIES

Tax and insurance 100000.00

Long term bank loan 1532500.00

NET CURRENT ASSETS 5335079.00

(LIABILITIES) 1632500.00

TOTAL ASSETS 3702579.00

CAPITAL 2096116.00

Introduced profit 1748463.00

Long term borrowing 1912000.00

Less repayment (379500.00) 1532500.00

5377079.00

5.5 CASH FLOW STATEMENT FOR NutriVitality Institute FOR THE YEAR 2023
Month JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEP OCT
Opening cash 73765 686875 678725 689725 744025 724875 636975 629525 631275 638775
Cash sales 170000 140000 146000 160000 1515000 175000 186000 165500 1550000 160000
Debtors 12000 27000 4500 10000 1200 6500

Loan received 2242000

Total cash
flow
Cash overflow 919675 826875 833725 876725 903526 909875 823175 795025 786275 805275
Purchase 60000 70000 45000 30000 65200 18500 90000 75000 55000 700000

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Creditors 2500 300 9750 1200 1800

Salaries 120000 120000 120000 12000 120000 120000 120000 120000 120000 120000
Electricity 2500 3000 2000 4500 5000
Tools & 300000 7000 6000 2500 4500 9500
equipment
Transport 13500 200 7000 4800 3500 2500 1200 8000 4000 8500
Loan 28025 28025 28025 28025 28025 28025 28025 28025 28025 28025
repayment
Water bill 7000 9000 600 500 10000 450 1200 600 1400 1000
Advertisement 45000 6000 2000 4000 3000
Rent 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000
License 4600
Repair and 7500 2500 1500 700 700 3000
maintenance
Stationery 1800 750 4300 2000 1300 1200 1000
Insurance 2000
Total cash 232800 128150 134000 132700 178650 272900 193650 163750 147500 163450
inflow
Bal c/d 686875 678725 688752 744025 724875 636975 629225 631247 638975 641825

PROJECT CASH FLOW STATEMENT FOR NutriVitality Institute FOR THE YEAR
2024
MONTH JAN FEB MARCH APRIL MAY JUNE JULY AUGUS SEP OCT
T
opening cash 73865 68697 678825 689825 744125 784975 637075 629625 631375 638875
5
Cash sales 170100 14200 146400 160200 156000 176500 187000 16800 157000 170000
0
Debtors 1300 1200 100 25000 2400
Loan 22083700
received
Cash 92962 82409 833010 831010 31001 80031 81040 89090 90000 21060
outflow 0
Purchases 60000 20000 34000 28000 30000 18000 24000 27000 18000 4000

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Creditors 2800 1300 2000 2400

Salaries 120000 12000 120000 120000 120000 120000 120000 120000 120000 120000
0
Electricity 2000 4000 6000 3000 1200 1000 1822 2400 3400 1600
Tools & 400000 2000 3000 1200 4000
equipment
Transport 15000 1200 3100 2000 1000 300
Loan 27605 27605 27605 27605 27605 27605 27605 27605 27605 27605
repayment
Water bill 3000 4000 2200 3000 1200 1340 2600 1100 2000 4500
Advertiseme 3800 5000 2400 1800 3400
nt
Rent 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000
License 4600
Repair 2800 3600 2400
maintenance
Stationery 350 280 400 3000 680 2400
Insurance 201000
Total cash 44628 33602 124060 340030 182060 189040 110200 220400 380090 148031
flow 5
Bal c/d 686975 67882 689825 744125 724975 637075 629625 631375 638875 641625
5

PROJECT CASH FLOW STATEMENTS FOR NutriVitality Institute FOR YEAR

2025
MONTH JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NO
Opening cash 823603 810804 308058 410603 980905 970509 580338 798806 9000095 800904 980
Cash sales 280000 340000 830000 208600 338000 273000 481000 360000 481000 460000 30
Debtors 1200 1800 3600 2000 400
Loans 21752440
received
Cash outflow 934060 837660 408090 280940 201060 90240 823010 81090 210610 214070 312

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Purchases 600000 300000 400000 800000 400000 200000 300000 900000 20000 30000 200
Creditors 3800 400 500 600 280
Salaries 120000 120000 12000 120000 120000 120000 120000 120000 120000 120000 120
Electricity 4000 8000 3000 6000 4000 2500 1700 700 800 3000 350
Tools 500000 20000 3000 8000 4500 7000 3600 400
equipment
Transport 8010 6000 400 300 8000 7000 36000 4800 1400 300 600
Loan 271906 271906 271906 271906 271906 271906 271906 271906 271906 271906 27
repayment
Water bill 4560 400 300 200 100 300 6000 800 600 360 400
advertisement 3000 4000 1200 4000
Rent 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 900
license 4600
Repair 4000 3000 600 3000 6000 450
maintenance
Stationery 500 650 380 400 6000 300
Insurance 20000
Total cash 234030 608040 338190 281090 342090 198090 168080 132040 262040 189030 33
inflow
Bal c/d 810804 308058 410603 980905 970509 580805 798806 906095 800904 980861 989

5.6 Break Even Analysis

The expected break even analysis of the business shall be as below.

Gross profit =sales (5040000)total direct costs(2481576.00)

=KSH 2558424.00

Gross profit margin= 2558424 * 10

50400000

=50.76%

TOTAL OVERHEAD=KSH 1937800

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BREAK EVEN LEVEL =1937800 =3,817,572.89

5.7 Financing

The total amount of money that shall be required to start the business shall be as indicated
below.

Item amount

Pr-operational cost 173,000.00

Working capital 3799376.00

Fixed assets 323740.00

Total 4296116.00

Proposed capitalization

The total investment in the business shall be KSH 4296116.00

5.8 Source of Finance

Owner’s contribution 1054116.00

Family and friends 100000.00

Bank loan 2242000.00

Total 4296116.00

5.9 Security

The loan shall be obtained from Kenya Commercial bank (KCB)

The loan shall be KSH 2,242,000 payable at a rate of 15% per annum over a period of 10
years the calculated security of the loan shall be 10 hectares title dead of my father land.
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Expected profitability ratios

Gross profit margin for the first 3 years (%)

Year 1

2558424 *100 =50.76%

5040000

Year 2

2540000 *100 =50.4%

5040000

Year 3

2540000 *100

5040000

5.10 Return on Equity

Owners’ equity = KSH 1054116.00

TAX = KSH 60,000

YEAR 1

845237 *100 =80.18%

1054116

YEAR 2

783226 * 100 =74.30%

1054116

YEAR 3

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665514 * 100 =63.23

1054116

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