THIKA SCHOOL OF MEDICAL AND HEALTH SCIENCES

MAHADI GROCERIES
NAME: FATMA MAHADI
ADM NO: CCHH/J-0002/MOM/23
SCHOOL: THIKA SCHOOL OF MEDICAL AND HEALTH
SCIENCES

1
 Declaration

I, FATMA MAHADI, hereby declare that this business plan is my original work and can be
only be used for scholarly purpose

FATMA MAHADI CCHH/J-0002/MOM/23

Signature…………………………………. Dates ………………………….

This business plan has been submitted with the approval of the undersigned to Thika
School of Medical and Health Sciences.

Supervisor

Supervisor

Signature……………………………………… Date……………………………………

2
 Acknowledgement
Special thanks to my beloved family for their tireless efforts in providing me with moral,
financial and general support throughout the course. Also, acknowledge my fellow classmates
and friends for their moral support. And above all I thank Almighty for everything.

Contents
Declaration..................................................................................................................................................2

3
Acknowledgement......................................................................................................................................3
Executive Summary...................................................................................................................................6
CHAPTER ONE.............................................................................................................................................8
1.0 BUSINESS DESCRIPTION........................................................................................................................8
1.1 BUSINESS NAME..........................................................................................................................8
1.2 LOCATION OF THE BUSINESS............................................................................................................8
1.3 FORM OF BUSINESS OWNERSHIP.....................................................................................................9
1.4 PRODUCT AND SERVICES..................................................................................................................9
1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY...................................................................................9
1.6 INDUSTRY........................................................................................................................................10
1.7GOAL OF THE BUSINESS...................................................................................................................10
1.8 ENTRY AND GROWTH.....................................................................................................................10
CHAPTER TWO......................................................................................................................................11
2.0 MARKETING PLAN...........................................................................................................................11
2.1 POTENTIAL CUSTOMERS.................................................................................................................11
2.2 MARKET SHARE...............................................................................................................................11
2.3 COMPETITION.................................................................................................................................12
2.4 PROMOTION AND ADVERTISING....................................................................................................13
2.5 PRICING STRATEGY.........................................................................................................................13
2.6 SALES TACTICS.................................................................................................................................15
2.7 DISTRIBUTION.................................................................................................................................15
CHAPTER THREE....................................................................................................................................16
3.0 ORGANISATIONAL CHART...............................................................................................................16
3.1 MANAGER.......................................................................................................................................16
3.2 PERSONNEL.....................................................................................................................................17
3.3 OTHER PERSONENEL.......................................................................................................................18
3.4 RECRUITMENT, TRAINING AND PROMOTION................................................................................19
3.5 REMUNERATION AND INCENTIVES.................................................................................................19
3.6 SUPPORT SERVICES.........................................................................................................................19
CHAPTER FOUR.....................................................................................................................................20
4.0 PRODUCTION PLAN.........................................................................................................................20
4.1 PRODUCTION DESIGN AND DEVELOPMENT...................................................................................20

4
 4.3 PRODUCION MATERIALS.................................................................................................................21
4.5 BUSSINESS PREMISES......................................................................................................................23
4.6 GOVERNMENT REGULATIONS AFFECTING OPERATIONS...............................................................24
CHAPTER FIVE.......................................................................................................................................25
5.0 FINANCIAL PLAN.............................................................................................................................25
5.1 PRE-0PERATIONAL COST.................................................................................................................25
5.2 WORKING CAPITAL REQUIREMENT................................................................................................26
5.4 PROFORMA BALANCE SHEET..............................................................................................................28
5.5 BREAK EVEN ANALYSIS..........................................................................................................30

Executive Summary

BUSINESS DESCRIPTION

5
MAHADI GROCERY will be located at Bamburi town in Mombasa. The business will be
dealing with selling to its customers vegetables, fruits and other grocery things.

Bamburi is a place fancied by many as a residential thus the ideal location for this business. We
will also target visitors and tourists in the area since Mombasa is also a tourist attraction in the
country.

MARKETING PLAN

The potential customers are the residents of Bamburi town and those visiting the town. The mode
of promoting the grocery store will be done by advertising through posters.

Opening time will be as from 8.00am during weekdays on Saturday it will be opened from
7.00am and closed at 4.00pm and will be closed throughout on Sunday and even public holidays.

ORGANISATION PLAN

The owner of the business will remain the manager of the business and will employ other
employees who will be paid on monthly basis.

The workers employed will include. Cashier, accountant and supplier.

The business will get its supporting services from commercial bank which will offer loan. There
will be also auxiliary such as electricity and water which of will get from Kenya power and
lighting company and Bamburi water and sewage company respectively.

OPERATIONAL PLANS

The business will deal with goods such as vegetables and fruits. The business shall be operating
as from 8:00am to 6.00pm as from Monday to Friday and on Saturday as from 8.00am to 1.00pm
and shall remain closed on Sunday and on public holidays.

6
 CHAPTER ONE
1.0 BUSINESS DESCRIPTION
The business will operate under the name Mahadi Groceries. It is startup business and will
operate as one branch but as time continues more branches will be established.

1.1 BUSINESS NAME

The name of the intended business will be Mahadi GROCERY, the name Mahadi is derived from
my second name. The business will be named after me. The name Mahadi GROCERY will be a
good marketing strategy as it will be the five green grocery in the shopping center at the
Bamburi town. This is because Bamburi town is a developing town and the next available market

7
where they can obtain their products is at Kongowea Market. It intends to provide fresh
vegetables and fruits at an affordable price.

1.2 LOCATION OF THE BUSINESS

The intended business will be located in an urban shopping/trading center in Bamburi town
which is in Mombasa County in the Coast region. Bamburi Is located near estates and along the
highway. This strategic positioning will make the business to attract a high number of customers.

The postal address will be

MAHADI GROCERY

P.O BOX 4829 – 01000 MOMBASA

Telephone number: 0742270310

1.3 FORM OF BUSINESS OWNERSHIP

The potential business owner intends to run a sole proprietor form of business.

The finance to run the intended business will come from owner’s savings covering 80% of the
total finances required and the 20% from the family. The potential business owner intends to
employ one attendant preferably a lousy assist when the business is busy.

The reasons why the potential business owner prefer the sole proprietor type of business is; the
decision making is easy because there is only one person involved hence no consultation.

8
The business owner will have all the contacts of all her customers. There will be minimal legal
cost as a sole proprietor business. She will be accountable to herself. The potential owner will be
directly entitled to control over the intended business.

1.4 PRODUCT AND SERVICES

The potential owner intends build slitted shaves that will help to display the products and allow
the customer to select products without difficulties. The intended business will be dealing with
products like;

carrots Spinach -mangoes Passion Bananas Melons Oranges

1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY

The Mahadi Grocery owner did research and found out the customers around the area were not
satisfied with the services offered the Kongowea market in the area dealing in the same field of
the interest. The owner also, found that the residents are affected by the food poisoning brought
about by the dirty fruits and vegetables sold at the market.

The availability of goods roads along which the grocery is situated. This motivates the customers
due to its availability and accessibility. Other essential activities such as banking, hotel, M-pesa
etc. are also playing a vital sole in encouraging them to come.

.
1.6 INDUSTRY
The intended business owner will provide free preparations like for kales, blending juices,
providing fresh vegetables. This will be a good strategy to cope up with the competitors.

The intended business owner will be replacing the seasonal fruits as they replace the off-season
ones, e.g., avocados. The potential business owner will be providing fresh vegetables as it will
have fridge to keep them fresh always\. It will have a modern blender which will be fast hence
time saving. Due to the economy fluctuation, the business will be charging affordable price to
cope up with the competition.

9
1.7GOAL OF THE BUSINESS
The potential business owner intends to achieve some of the goals like making profit, to be a
leading provider of product within the trade center, to increase customers base, to create
employment, to be a role model to youths, to make profits and to meet the customers’ demands.
Also being a leading provider of products within the area. Providing jobs to the residents in the
area and helping the community to diseases like Cholera.

1.8 ENTRY AND GROWTH

The potential owner will have filcher circulating to advertise the business and make it known.
The intended business owner also intends to bring traditional vegetables and fruits to the shop to
meet the need of the customers.

The potential business owner will offer free services to cope up with the business competitors.
Also, it will sell online markets, where the seller meets the needs of the buyer online sites like
M- soko etc.

CHAPTER TWO
2.0 MARKETING PLAN
The bakery expects to use a variety of marketing tools including web advertising, affiliate
programs, public relations and key strategic alliances to drive traffic. The owner believes
that it is extremely important to use word of mouth marketing campaigns especially in the
early phases of the launch. The owner will also be placing banner ads with major portal sites
to increase awareness whereby it automatically serves when someone any keyword during a
web search. This effort will focus on both online as well as print media in many towns.

2.1 POTENTIAL CUSTOMERS

10
The potential customers of the intended business will constitute of individuals who are interested in
readily available and fresh products from the farm.

The potential business targets individuals’ customers, institutions like schools, hospitals and hotels which
will help to achieve the desired goals. The potential institution eust6omers value fresh products and
purchase through tenders. They understand when a product is scarce and seek for the available alternative.

The intended business will be open to all ages as it will; be providing basic commodities to everyone. The
intended business will open or will target all classes of income comers. This will help to attract more
customers without limiting anyone. The purchasing pattern goes along with the economy which means
that a very high the purchase power is higher and vice versa.

2.2 MARKET SHARE

The potential business aims to serve 40% of the population in total. The rest will be distributed
among the potential competitors in the area. This will help to know the kind of competitors the
intended business will be dealing with.

TABLE SHOWING MARKET SHARE IN RELATIONSHIP WITH COMPETITORS.

BUSINESS NAME POPULATION POPULATION SIZE

SIZE IN %

MAMA SHIRO’S GROCERY

20,000 20%

PALAKI GROCERR 10,000 10%

11
SALAMA GREEN GROCERY 30,000 30%

MAHADI GROCERY 40,000 40%

TOTALS 100,000 100%

2.3 COMPETITION
The name of the key competitors is mama Shiro’s green grocery, palaki grocery and Salama
green grocery business. They will be located within the trading center but different buildings.
The furthest competitor being located approximately 300 meters away from the next building.

The competitors have small scale business offer unique products e.g., traditional vegetables and
fruits like mangoes etc. which will be always fresh because of the availability of deep freezer
that will help in maintaining the freshness for longer. The intended business will also offer
blending services unlike the competitors who only offer fresh fruits.

The strength of the competitors is their location which is near to potential customers. T he
intended business intends to offer better services that will attract those customers near the
competitors. The weakness of the business will be lack of modern weighing scale which is
convenient for any business for the purpose of accurate weighing. The intended business intends
to save money to buy the modern one so as to keep up with the competition

2.4 PROMOTION AND ADVERTISING

.

The intended business will make their products known to the potential customers by use of
leaflets and the sign board that will be placed outside the shop. It will also, use pamphlets which
will contain the products and services of the blended business.

The leaflets will cost sh1,030, for the 500 pieces copies of leaflets and 500 pamphlets which will
cost sh 1,050. They will be distributed by 2 sales person who will be paid sh300 per day for one
day. These leaflets and pamphlets will be used after every 3 months. This will help attract the
new customers.
12
The sign board will cost sh4,500 inclusive of the lab our for installing it. The sign board will be
seen by every eutomer passing by the stall. The mode of promotion will be offering free services,
discounts depending on seasons like festive seasons and when a customer buys in bulk the
intended business owner will offer 10% discounts and free delivery services

2.5 PRICING STRATEGY

The business aims at selling its products at a reasonable and affordable price, which will help to
achieve targeted sale per day. The price of the products will be gotten from adding intended
profit to the buying price hence, the selling price.

The factors that will influence the price selling of the products are seasonality of the product and
the economic status of the country.

COST

ITEMS

Potatoes 60 00

Tomatoes 50 00

Onions 120 00

Carrots 100 00

Cabbages 30 00

Cogent 50 00

13
Kales 5 00

Spinach 5 00

Traditional vegetables 5 00

Mango 20 00

Orange 20 00

bananas 10 00

Melon 20 00

Pawpaw 40 00

Passion fruit 10 00

Avocados 10 00

Three tomatoes 20 00

2.6 SALES TACTICS

The business will be selling its products to its potential customers through direct and indirect
selling technologies. Through direct or personal selling where, the potential customer finds the
seller in the intended business premises.

This method only covers a small geographical area of about 500 people per square kilometer.
This will be a good method because the seller will have a convening power for the customer to
buy.

The intended business owner also, intends to use indirect selling technique to reach to customers
who are not living near the intended business premises. This will be through, M-soko where the
owner will take a picture of the products she intends to sell and post them on the website with
their prices and the buyer gets to choose which product to buy and offer delivery for free to them.
This will be advantageous as the prices are fixed and the services are fast.

14
The intended business owner will offer free transport using motorbike belonging to the business
for the transport purpose.

2.7 DISTRIBUTION.
The intended business will use the farmer to retailer/seller to customer as the channel best suited
for the business. The potential business owner will provide free transport by use of motorcycle
which is fast and easy to maintain, hence convenient. Since, the transport is through road some
of them maybe impossible posing a challenge to the intended business. The use of motorcycle
will be convenient, as it will try to penetrate through the impossible roads. In future the business
intends to grow and offer transport through road transport by use of a pick-up.

CHAPTER THREE

15
3.0 ORGANISATIONAL CHART

3.1 MANAGER
The name of the manager of the intended business will be Fatma Mahadi.

DUTIES AND RESPONSIBLITIES

The manager will be responsible of managing daily operations of the grocery in order to meet
stores goals. She will provide direction and guidance to the grocery staffs in their assigned job
duties. She will be in charge of following and enforcing store business policy, security measures
and customers service standards. She will provide excellent customer service for sales growth,
develop positive shopping experience and ensure customer satisfaction. She will be responsible
of evaluating performance of each staff, provide appropriate feedback and also perform
inventory control to avoid over stock and low stock.

3.2 PERSONNEL
The business structure is as shown below together with the business’s overall personnel.

16
Cashier

The job descriptions of the cashier, welcome customers as they arrive at the shop and guide them
regarding different sections. He/she, will provide customers with detailed information on
different products. He/she, will also be responsible of reserving items for customers and make
follow up calls to ensure that reserved items are also determined, the total price of items sold,
provide customers with a figure and, to weigh and tag produce e.g., vegetable and traits.

They will be responsible for wrapping the sold items according to customers’ choices and to
operate cash register. He/she, will also process returns and exchanges of goods and issue receipts
and change top customers and to record total daily sales and balances, offer customers early out
services for large purchases and to resolve eutomer’s complaints and problems. He/she, will also
be responsible of making sure that the business premises are clean always. The skills and
qualifications of a cashier will be that he/she should be well-versed in

Suppliers/motorist:

The supplier/motorist will be required to have driving skill, a driving license and have
experience of 2years riding a motorcycle. This is because he/she will supply goods using a
motorcycle. He/she, will be also required to plan delivery timetable to avoid missing delivery on
some customers, to ensure that the store does not delivery to some customers, to ensure that the
store has enough stock, make sure that he/she supplies enough stock to meet the demand of the
customers, overseeing the ordering and packaging process of the products, he/she is also
responsible of monitoring the stock level of the products and making sure the products they
arrive at their destination timely and overseeing arrival of the products.

The skills and qualifications of the supplier will be competence; he should make a thorough
assessment of the other suppliers’ capabilities measured against theirs and look for customers
whose needs and values are similar to your needs.

17
3.3 OTHER PERSONENEL

CLEANERS

Qualifications

Should be able to keep premises and it’s environed clean at all times

Should be able to speak Swahili

Duties and responsibilities

The cleaners will also act as the managers

Clean service area e.g., floors, windows, walls etc.

Storing all raw materials once received.

SECURITY
Qualifications

 KCSE mean grade of D

 Good knowledge of English and Kiswahili

Duties

 Maintain security in business environment

18
3.4 RECRUITMENT, TRAINING AND PROMOTION

The potential business owner intends to use external recruitment method for the intended
business. This is by use of family friends and posters to look for personnel. This will help to
promote now ideas and it cheap since no training is needed.

The manager will be needed to have at least have done a management course and experience of
at least one year. The potential accountant will be required to have done diploma in accountancy
and CPA section 6. A little training will be needed for the cashier to avoid petty mistakes.

3.5 REMUNERATION AND INCENTIVES

The intended business will have four personnel; the manager, accountant, cashier and supplier.
The potential manager will be paid an amount of salary inclusive of medical and retirement
benefits. The intended business will pay the manager ksh40,000, the potential accountant will be
earning ksh30,000, the potential cashier will be earning ksh10,000 and the potential supplier will
also earn ksh10,000.

The potential business owner will ensure that his/her personnel have NHIF and NSSF covers. At
the end of year, the potential business will award the potential business workers with a ksh5,000
shopping voucher to thank them for work well done and to motivate them.

3.6 SUPPORT SERVICES

The potential business intends to open a banking service with Kenya commercial bank, for it is
where the business will have a business account. It will be the responsibility of the manager to
bank. The potential business will also, require postal through hence always to date.

Since the potential business intends to advertise through the M-soko, the manager will ensure
that the products are updated always.

19
 CHAPTER FOUR
4.0 PRODUCTION PLAN

4.1 PRODUCTION DESIGN AND DEVELOPMENT

The type of facilities required to run the intended business will be fridge. The fridge will be
designed as a deep freezer that will cost ksh40,000 from Samsung company. It will be a new one
hence minimizing the maintenance cost. The deep freezer will be essential for storage purpose
as; it will help the vegetables preservation. The intended business will also have a circular
spring balance, which will help in weighing products for the customers. The weighing balance
will be maintained and approved to ensure the weighs are accurate. It will cost about ksh1,500.

The intended business will also have, a computer that will be used for record keeping, cash
calculators, advertisement through online selling and updating products on the marketing online.
It will cost the business Ksh 35,000; an HP model. The business will also purchase a ksh4,500
blender, to make juices for the customers. It will be a ram tons model; it will last longer. For the
supplier to be able to supply products to the customers that are operating far, a motorcycle is
needed. This is important because the spare parts are readily available and services will cost
ksh80,00 Honda model

The potential business will need some utensils like knifes, glasses, jugs, small basins, small
towels that will ensure the working area is always clean. They will cost at ksh2,000. The knives
will be sharpened after two weeks to enhance services. The potential business will provide free
carrying bags and small polythene bags to pack some vegetables. The potential business will
require wood to make shelves which will cost at ksh50,000.

20
4.2PRODUCTION OR OPERATIONAL PROCESS.
The main objective of the intended business will be; to sell affordable and fresh products to
customers. The intended business will also ensure to provide fresh fruits juice to the customers.
The manager will be responsible of buying vegetables from the market and the supplier will
provide transport to bring from the market to the work place.

The cashier and accountant will be responsible of offloading the products cleaning by the cashier
and pricing by the accountant, The cashier will place the product into shelves in order to attract
customers.

Mahadi Grocery, will be faced by both internal and external factors in the operation process.
Some of the external factors will be like internal conflict

4.3 PRODUCION MATERIALS

MAHADI GROCERY will sell vegetable products in small and large quantities. The following
is a table showing the list of monthly products required and their costs and source.

ITEM QUANTITY AMOUNT PER TOTAL SUPPLIER

ITEM

Potatoes 2sacks 1,200 2,400 Madaraka market

Tomatoes 2crates 600 1,200 Madaraka market

onions 1 sack 900 1,800 Madaraka market

Cabbages 2sacks 1,000 2,000 Madaraka market

Carrots 3 sacks 1,100 2,200 Madaraka market

Kales 4saeks 900 1,800 Madaraka market

Cogent 20 kgs 50 1,000 Madaraka market

Spinach 2 sacks 800 1,600 Madaraka market

Traditional kales 1 sack 1,000 1,000 Madaraka market

mangoes 1 sack 800 800 Madaraka market

21
Oranges 1sack 1,200 1,200 Madaraka market

Bananas 100 pieces 500 500 Madaraka market

Melons 50kgs 1kg @40 2,000 Madaraka market

Papaws 10 pieces 1 piece @30 300 Madaraka market

Passion fruits 10kgs 1kg @ 80 800 Madaraka market

avocados 150pieees 1 piece@ 5 750 Madaraka market

Tree tomatoes 10kgs 1 kg @ 80 800 Madaraka market

22,150

4.4 EQUIPMENT OR MATERIALS.

The type of facilities required to run the intended business will be fridge. The fridge will be
designed as a deep freezer that will cost ksh40,000 from Samsung company. It will be a new one
hence minimizing the maintenance cost. The deep freezer will be essential for storage purpose
as; it will help the vegetables preservation. The intended business will also have a circular
spring balance, which will help in weighing products for the customers. The weighing balance
will be maintained and approved to ensure the weighs are accurate. It will cost about ksh1,500.
The business will also purchase a ksh4,500 blender, to make juices for the customers. It will be a
ram tons model
The potential business will need some utensils like knifes, glasses, jugs, small basins, small
towels that will ensure the working area is always clean

22
4.5 BUSSINESS PREMISES.

OFFICE
MANAGER
ACCOUNTANT STORE

A LAID DOWN FLAT TABLE TO PUT

ON VEGETABLES

23
4.6 GOVERNMENT REGULATIONS AFFECTING OPERATIONS
The intended business will be required to have a single business permit and license which shall
be visibly placed in the business premises, which will allow the business to operate well. The
intended business should be in a clean environment and conducive for conducting business.
Identification card and a well located for the potential owner to pay for the license and business
permit for ksh5,000 per year. And should be renewed yearly.

24
 CHAPTER FIVE

5.0 FINANCIAL PLAN

This involves determining the course of actions to achieve desired results. In ensures economic
operations.

Improve motivation and facilitates control by reducing uncertainties

5.1 PRE-0PERATIONAL COST

ITEMS AMOUNT (KSHS)

Rent and rent deposit 20,000

Water 1,000

Electricity 1,000

Installation 10,000

Motorcycle 80,000

Stock (opening) 22,150

Furniture 10,000

Computer 35,000

Weighing balance 1,500

Fridge 40,000

Blender 4,500

Permits and licenses 5,000

Calculators 1,000

25
5.2 WORKING CAPITAL REQUIREMENT

DETAILS
CURRENT ASSETS 202 2024 2025
3
CASH AT HAND 500,000 700,000
420,000
CASH SALES 200,000 250,000 500,000

DEBTORS 10,000 20,000

TOTAL 620,000 760,000 1,220,000

CURRENT LIABILITIES

CREDITORS 100,00 95,000 100,000

0
SALARIES AND 90,000 90,000 90,000
WAGES
SHORT TERM 30,000 100,000
LOAN

26
5.3 ORGANIZATION AND MANAGEMENT PLAN COSTS

Type of Document Fees Transport/Other Total

Expenses

Business Name 230.00 20.00 250.00

Registration

Business Permits 5,000.00 20.00 5,020.00

Fire Protection Permit 900.00 900.00

Sanitary Permit 1000.00 1,000.00

TOTAL 7,170.00

27
5.4 PROFORMA BALANCE SHEET

ASSETS KSH KSH

Fixed assets Capital 650,000

Owners’ equity 865,100

Equipments 300,000

Furniture 50,000 Total 1,515,100

Liabilities

Current assets Loan 1,080,000

Advertisements 6,000

Stock 30,000 Insurance 6,000

Cash in hand 31,000 Maintenance 25,000

Cash in bank 2,180,000 Licenses 5,000

Salaries 528,000

TOTAL 2,711,500 Transport

49,900

Rent

91,000

other expenses 618,500

tax

108,400

total expenses

28
 1,546,400

TOTAL ASSETS 3,016,500 3,016,500

29
5.5 BREAK EVEN ANALYSIS

FIXED COST YEAR 1 YEAR 2 YEAR 3

license 5,000 5,000 5,000

Insurance 6,000 15,000 20,000

Rent 91,000 84,000 84,000

Salaries 528,000 735,000 800,000

Total 630,000 840,000 909,000

Variable expenses
Transport

49,900 55,500 57,300

Advertisement 6,000 80,000 8,800

Maintenance 25,500 32,7000 37,000

Other expenses 25,500 623,700 6,231,000

Total 699,900 719,900 726,200

30