BUSINESS PLAN

FOR

BABY WIPES BUSINESS

Telephone: 0759610808 | 0770497343
Email: ssekanaboyasin@gmail.com

September 2023
Table of Contents
List of Tables iv
List of Figures v
Executive Summary 1
Ownership of the Enterprise 1
Business Location 1
Services offered 1
Business Start-up Summary 2
Financial Projections 2
Economic Benefits 3
Chapter One: Introduction 4
1.1 Justification 4
1.2 Company Objectives 4
1.3 Mission Statement 4
1.4 Development of Financial Roadmap 5
1.5 Business Risks 5
Chapter Two: Market Analysis 6
2.1 Scope and Potential (Industry Analysis) 6
2.2 Customer analysis 6
2.3 Competition 6
2.4 Market Trends 7
2.5 Marketing Strategy 7
2.5.1 Promotion Strategy 7
2.5.2 Customer Retention 7
2.5.3 Partnerships 7
2.5.4 Technology Upgrade 8
2.6 Services/products 8
2.6.1 Service Description 8
2.6.2 Pricing Strategy 8
Chapter Three: Management 10
3.1 Board of Directors 10
3.2 Personnel Plan 10
3.2.1 Employee Roles 10
Chapter Four: Financial Plan 13
4.1 Sources and uses of Funds 13
4.2 Planned use of funds 13
4.3 Loan Terms and Repayment Schedule 13
4.4 Financial Projections 14
List of Tables
Table 1 Business owners’ shares..................................................................................................1
Table 2 Annual market growth rate in mubende..........................................................................6
Table 3 Board of Directors.........................................................................................................10
Table 4 Employee payroll..........................................................................................................10
Table 5 Sources and uses of Funds............................................................................................13
Table 6 Planned use of funds.....................................................................................................13
Table 7 Loan Repayment Schedule............................................................................................14
Table 8 Projected Sales Per Annum (60% Occupancy).............................................................14
Table 9 Projected Sales (100% Occupancy)..............................................................................15
Table 10 Projected Costs (60% Occupancy)..............................................................................15
Table 11 Projected Income Statement........................................................................................16
Table 12 Projected Cash Flow Statement..................................................................................16
Table 13 NET PRESENT VALUE............................................................................................17
List of Figures
Figure 1 The organization structure for the company..............................................................................12
Business Overview
My business was established in December, 2022 and has since gained momentum as a
reputable provider of high-quality wipes in Kikuubo business centre, Kampala. Our mission is
to provide our clients with affordable, safe, and effective wipes (see Figure 1) that meet the
highest quality standards. We have consistently exceeded customer expectations and have built
a loyal customer base.

Ownership of the Enterprise

Names of Shareholders Shares (%)
MUKIIBI .K. STEVEN 60
Table 1 Business owners’ shares

Business Location
A location area along Rubanga Road in Mubende Municipality was chosen for the following
reasons:
 Nearness to the close-by residents.
 Easy access to security and financial institutions
 High visibility
 Strategic Location.
 Market potentiality
Services offered
Some of the services available to ASRO Internet Café’s customers are listed below:
 Internet surfing
 Computer training
 Software installation
 Printing, scanning and photocopying
 Secretarial services

Business Start-up Summary

ASRO Internet Café will need about Shs 51,250,000/= to cater for renovations, furniture,
computers, printers, running capital and cover expenses in the first year so as to be able to
launch operations. Of that, the promoters will contribute Shs 11 million and will seek a loan of
Shs 40 million from a bank. The loan will attract a loan of 14% p.a. and be payable over 5
years with one year of grace on principal payments.

The financing required is broken down as follows:

Start-up Item Cost (Ugx)
Generator (2.5kVA) 1,400,000
Business poster 250,000
Tableware 1,000,000
25 computer sets 20,000,000
Internet network antenna and router 2,500,000
Computer Software 100,000
Internet Lines 1,000,000
Projector 2,500,000
1 printer 2,500,000
1 scanner 1,500,000
1 photocopier 1,000,000
27 chairs 3,000,000
Total Start Up Fixed Assets 11600000

Working capital 14,500,000

TOTAL FUNDING REQUIRED 51,250,000

The business shareholders can raise Shs 11,250,000 so that the actual loan amount required is
shs 40,000,000.

Financial Projections

a) Projected Revenue at 60% occupancy = Shs 238,516,800 p.a.

b) Project Revenue at 100% occupancy = Shs 393,640,800 p.a.
c) Profitability: Year 1: (50% occupancy) = Shs 55,617,300
: Year 5: (70% occupancy) = Shs 82,749,720
d) Payback Period: 3 years
e) NPV = Shs 195,411,916
f) IRR = 26.8% (greater than the borrowing rate of 14% p.a.)

Economic Benefits

 The business will generate income for the government by paying 30% its gross profits
as taxes.
  Creation of 12 direct employment opportunities
 Contribute to poverty alleviation through fund raising and cooperate social
responsibility.

In order to achieve a positive cash flow position in the business financial performance, the
company will require the following:

 Enhancing sales revenue through aggressive marketing and continuous improvement of

the quality of service.
 Minimizing and control of operation costs by developing value for money tools.
 Strict budget control for general and administrative expenses to prevent overruns. The
budgetary measures will be flexible to respond to demand and inflationary pressures.
 Accounting measures would be undertaken.

The above factors combined will ensure profitability for the company and easy pay back of the
facility.
Chapter One: Introduction
1.1 Justification for the investment

Industry experts say affordability and speed have revolutionized Internet use in Uganda. It's
been a revolution in the sector over the past few years, and the change has really been radical.
With cheaper technology flooding the market and the cost of going online tumbling, Internet
access has boomed, especially among the country's growing middle class. Therefore, the
growing market is there and it has the potential to be a real success.
1.2 Financial structure of the business

The business owners have already raised Shs. 11,250,000 of the total financing required for the
establishment of the business. However, there is Shs. 40,000,000 more capital required for the
business to launch operations. This will be obtained from financial institutions inform of a loan
payable with interest.
The financing will be split into;
Fixed assets 71.7% shs 36,750,000
Working capital 28.3% shs 14,500,000

Therefore, the company will require some loan to operationalize its activities. The loan will be
obtained from financing institutions such as banks among others.
1.2 Company Objectives

The company seeks to achieve the following objectives during its period of existence
 Providing a high-speed internet service to “all”.
 Offering short computer packages to social-economically empower and impact fellow
youth through Information Technology.
 Creation of a comfortable leisure and learning environment that will bring people with
different interests and backgrounds together for socialization and education.
 Building communication networks for life.
 Offering Online and computer training services.

1.3 Mission Statement

Social-economic development among the youth through Information Technology. As Internet
has become more popular and grown at an expeditious pace, easy access has become a part of
life. ASRO Internet Café provides the public access to the Internet, and online services in a
comfortable environment and people from different backgrounds will come to enjoy the
exclusive and innovative environment that ASRO Internet Café offers.
1.4 Development of the Financial Roadmap

This will be essential during and after the period of debt financing of its assets to ensure
profitability.
1.5 Business Risks

The risks involved with ASRO Internet Café’s business are:

 Insufficient demand for the services provided in Mubende
 The popularity of the Internet stops to grow.
 The opening of new cafés in the same area which offers the exact services that ASRO
Internet Café provides. Smartphone era, as one accesses almost all services he would
have got from the café on his mobile phone.
 Slow penetration rate due to conservativeness and nature of the people around.
Chapter Two: Market Analysis
ASRO Internet Café is facing the opportunity of being the among pioneers in the Mubende
internet café market. The consistent popularity of computer training combined with the
growing interest in the Internet, has been proven to be a winning concept in other markets and
will produce the same results in Mubende.
2.1 Scope and Potential (Industry Analysis)

The popularity of the Internet is growing exponentially. Those who are familiar with the
Internet are well aware of how fun and addictive going online can be. Those who have not yet
experienced with the Internet need a convenient, relaxed atmosphere where they can feel
comfortable learning about and utilizing the current technologies. ASRO Internet Café seeks to
provide its customers with affordable Internet access in an innovative and supportive
environment.
2.2 Customer analysis

ASRO Internet Café’s customers can be divided into two groups. The first group is familiar
with the Internet and desires a progressive and inviting atmosphere of practicing various
computer skills and online games. The second group is not familiar with the Internet, yet, and
is just waiting for the right opportunity to enter the online community i.e. are willing to learn
how to access and effectively use the internet products such as social media platforms like
Facebook. ASRO Internet Café’s target customer groups anywhere between the ages of 11 and
55. This extremely wide range of ages is due to the fact that internet usage appeals to a variety
of people.
In addition to these two broad categories, ASRO Internet Café’s target market can be divided
into more specific market segments. The majority of these individuals are students and
business people. There’s a strong annual growth in the number of internet users in the area as
shown in the Market Analysis table below.
Potential Customers Growth Rate/yr
University Students 4%
Office Workers 3%
Seniors 5%
Teenagers 2%
Others 0%
Table 2 Annual market growth rate in Mubende

2.3 Competition

The main competitors in the internet café business segment within the same location are 6-
Good Times cyber cafe and Kin internet cafe Mubende branch. These businesses target a
similar segment to ASRO Internet Café’s (i.e. educated upwardly-mobile students and
business people). However, ASRO Internet Café will offer substantial computing services like
printing, scanning, photocopying and computer training to its customers which these
competitors are not providing at the moment.
2.4 Market Trends

A market survey was conducted recently with key questions asked to fifty potential customers
in Mubende. Some key findings include:
 40 people said they enjoyed free access to the Internet.
 44 subjects use the Internet to communicate with others on a daily basis.

2.5 Marketing Strategy

ASRO Internet Café will position itself as a stylish Internet service provider and reliable
computer trainer. It will serve high speed internet packages at competitive prices. Due to the
number of cafés in Mubende, it is important that ASRO Internet Café sets fair prices for its
products. ASRO Internet Café will use advertising as its main source of promotion. Ads placed
in food and school magazines will help build customer awareness. Accompanying the ad will
be a coupon for discounted coffee and nice bakeries.
2.5.1 Promotion Strategy

ASRO Internet Café will implement a pull strategy in order to build consumer awareness and
demand. Initially, ASRO Internet Café has budgeted UGX 2,500,000/= for promotional efforts
which will include advertising with radio station, magazines and in-house promotions such as
offering customers free drinks. ASRO Internet Café realizes that in the future, when
competition enters the market, additional revenues must be allocated for promotion and
discounts in order to maintain market share.
2.5.2 Customer Retention

ASRO Internet Café management will develop long term revenue generating relationships
with customers as a customer retention initiative through the following customer relationship
management tools:
 High service level ensures customer satisfaction
 Customer questionnaires identify areas of improvement
 Good hospitality guarantees customer return
 Good public relations attract recommendations
 Close collaboration with competitors is healthy business ethics.
2.5.3 Partnerships

ASRO Internet Café seeks to establish a good relationship with financial Institutions for
raising capital if the need arises. This will be through opening up fixed deposit and saving
accounts for the business and also carrying out other financial transactions like forex
transactions with potential banks.
2.5.4 Technology Upgrade

ASRO Internet Café will invest in high-speed computers and modern wireless technologies to
provide its customers with a fast and efficient connection to the Internet. The computers will
be reliable and fun to work with. ASRO Internet Café will continue to upgrade and modify the
systems to stay with current communications technologies.
2.6 Services/products

ASRO Internet Café provides access to the Internet and computer services such as printing,
scanning to customers. It also provides customers with a unique and innovative environment
for enjoying top quality knowledge in short computer application training packages and interns
for university students.
2.6.1 Service Description

ASRO Internet Café will provide its customer’s access to the Internet and common computer
software and hardware. Some of the Internet and computing services available to ASRO
Internet Café’s customers are listed below:
 Short computer application training packages and interns.
 Internet browsers.
 Networking and telecommunications.
 Laser color printing, photocopying and scanning.
 Popular software applications.
 Architecture drawing and planning.
 Access to external POP3 email accounts.
 FTP, Telnet, Gopher, and other popular Internet utilities will be available.
 Access to Internet Explorer browser or other browsers.
 Access to popular software applications like Microsoft Word and other often used
applications.
2.6.2 Pricing Strategy

The following pricing structure is proposed:

Internet Packages
Internet Time Usage Price (Ugx)
30 minutes 1000
60 minutes 2000

WiFi Packages
WiFi Time Usage Price (Ugx)
30 minutes 500
60 minutes 1000

Computer Training services

Program Period Price (Ugx)
Basic computer training 1 months 280,000
Secretarial training 3 months 700,000
Computer software 6 months 1,500,000
Programming

Other services Price (Ugx)

Printing 500 per page
Scanning 1000 per page
Photocopying 200 per page

OPERATIONS PLAN
The key strategy is to transform the business plan from concept to reality through:
 Meeting the product/service targets as set out in the business plan as short-term
objective.
 Recruiting a knowledgeable and synchronized management team capable of achieving
low service costs, high turnover and high customer satisfaction as a long-term
objective.
 Continuous improvement of the service offer, staff, productivity and profitability as a
long-term objective.
Operating Policies
ASRO Internet Café will develop operating guidelines and policies that not only bind every
employee to work within but also to achieve stated objectives through team work. Such
policies would include human resources, purchasing, inventory control, sales management of
assets, Internet best practices, accounting and audits.
Chapter Three: Management Plan
An internet-café itself does not require a lot of employees and therefore its organizational
structure is not that complicated. In this section the intended future organizational structure is
further explained.
3.1 Board of Directors
The company, being small in nature, requires a simple organizational structure.
Implementation of this organizational form calls for the Managing Director, to make all of the
major management decisions in addition to monitoring all other business activities.
No. Name Age Profile
1 MUKIIBI DUNCAN 25 Pursuing a bachelor’s of science degree in
(Director) mechanical engineering at Makerere University.
2 ASIIMWE ROSE 47 Secretary, St. Peter’s Secondary school,
(Director) Nsambya
3 MUKIIBI.K. STEVEN 50 Owner of MUKIIBI & SONS SPARE PARTS
(Managing Director) SHOP.
Table 3 Board of Directors

3.2 Personnel Plan

The staff will consist of 12 employees working for monthly salaries as illustrated in table 5
below.
Position Number Proposed Salary for Total Proposed
required 1 employee p.m. Salary p.m. (Ugx)
(Ugx)
Cleaners 1 200,000 200,000
Security guard 1 350,000 350,000
Computer trainer 4 450,000 1,800,000
Internet attendant 2 380,000 760,000
Cashier 1 500,000 500,000
Technician 2 750,000 1,500,000
Manager 1 1,500,000 1,500,000
Total Payroll 12 4260000
Table 4 Employee payroll

3.2.1 Employee Roles

1. Manager
The manger shall be responsible for carrying the following activities
 Sales and marketing
 Ensuring customer satisfaction in as far as services such as repairs, installations,
maintenance of refrigeration and air conditioning services of the clients are
concerned.
 The manager shall also be responsible for scheduling planned maintenance
schedules for contractual clients.
 The manager should have at least a bachelor’s degree in Business management with 4
years working experience in the sales and marketing field.

2. Technicians
The technical department will have 1 computer technician and 1 electrical technician.
 Computer technician: shall be responsible for repairs, installations and all
information technology work assigned to him by the operations manager. This
should have at least a diploma in Computer maintenance and repair.
 Electrical technician: shall be responsible for all the electrical repairs and
maintenance work assigned to him/her by the operations manager. This should
at least hold a diploma in electrical engineering.

3. Cashier
The cashier shall be responsible for keeping the book of accounts of the company
documenting all the business transactions among other business functions. This should
be a degree holder in any accounting discipline.

4. Internet attendant
The attendant will be responsible for serving internet time to customers, responding to
customer issues related to internet speed and providing wireless free internet (WiFi)
passwords to smart phone users. This will also be responsible for providing printing,
photocopying and scanning services to customers. This should have a minimum
requirement of an A’ level certificate with subsidiary computer knowledge.

5. Computer Trainer
All customer needs related to computer literacy shall be handled by the trainers. This
includes short basic computer training courses and computer programming skills
tutorials. This should have at least a bachelor’s degree in software engineering or
Information Technology.
3.3 ORGANIZATION STRUCTURE

Figure 1: Organizational structure for the company

Chapter Four: Financial Plan
4.1 Sources and uses of Funds
Sources Amount (Shs)
Promoters Savings 10,000,000
Bank Loan 40,000,000
Total Capital 50,400,000
Table 5 Sources and uses of Funds

4.2 Planned use of funds

Start-up Item Cost (Ugx)

Generator 1,400,000
Business poster 250,000
Tableware 1,000,000
25 computer sets 20,000,000
Internet network antenna and router 2,500,000
Computer Software 100,000
Internet Lines 1,000,000
Projector 2,500,000
1 printer 2,500,000
1 scanner 1,500,000
1 photocopier 1,000,000
27 chairs 3,000,000
Total Start Up Fixed Assets 11600000

Working capital 14,500,000

TOTAL FUNDING REQUIRED 51,250,000

Table 6 Planned use of funds

4.3 Loan Terms and Repayment Schedule

Assumptions
Loan Amount 40,000,000
Interest 14% p.a. reducing balance
Grace Period 1 Year
Loan Period 5 Years
Repayment Quarterly.
Loan Repayment Schedule (‘000 Shs)
Year Principal Principal Interest Paid Total Paid
Balance Paid
1 Q1 40,000 0 1,400.0 1,400.0
Q2 40,000 0 1,400.0 1,400.0
Q3 40,000 0 1,400.0 1,400.0
Q4 40,000 0 1,400.0 1,400.0
2 Q1 37,500 2,500 1,400.0 3,900.0
Q2 35,000 2,500 1,312.5 3,812.5
Q3 32,500 2,500 1,225.0 3,725.0
Q4 30,000 2,500 1,137.5 3,637.5
3 Q1 27,500 2,500 1,050.0 3,550.0
Q2 25,000 2,500 962.5 3,462.5
Q3 22,500 2,500 875.0 3,375.0
Q4 20,000 2,500 787.5 3,287.5
4 Q1 17,500 2,500 700.0 3,200.0
Q2 15,000 2,500 612.5 3,112.5
Q3 12,500 2,500 525.0 3,025.0
Q4 10,000 2,500 437.5 2,937.5
5 Q1 7,500 2,500 350.0 2,850.0
Q2 5,000 2,500 262.5 2,762.5
Q3 2,500 2,500 175.0 2,675.0
Q4 0 2,500 87.5 2,587.5
Total 40,000 17,500 57,500
Table 7 Loan Repayment Schedule

4.4 Financial Projections

Projected Sales Per Annum (60% Occupancy)

Item No/Day No/Month No/Year Rate Total

Internet service Time to
500 15500 186000 1000 186000000
Customers
WiFi service Time to Customers 200 6200 74400 500 37200000
Basic Computer Training
_ 2 14 280,000 3920000
Customers
Secretariat Computer Training
_ _ 7 700,000 4900000
Customers
Computer software Customers _ _ 2 1,500,000 3000000
Printing service customers 6 186 2232 500 1116000
Scanning service customers 5 155 1860 1,000 1860000
Photocopying service customers 7 217 2604 200 520800
Total 238,516,800
Table 8 Projected Sales Per Annum (60% Occupancy)
Projected Sales (100% Occupancy)
No/
Item No/Day No/Month Rate Total
Year
Internet service Time to
850 26350 316200 1000 316200000
Customers
WiFi service Time to Customers 250 7750 93000 500 46500000
Basic Computer Training
_ 4 48 280,000 13440000
Customers
Secretariat Computer Training
_ _ 12 700,000 8400000
Customers
Computer software Customers _ _ 2 1,500,000 3000000
Printing service customers 10 310 3720 500 1860000
Scanning service customers 9 279 3348 1,000 3348000
Photocopying service customers 12 372 4464 200 892800
Total 393,640,800
Table 9 Projected Sales (100% Occupancy)

Projected Costs (60% Occupancy)

Per
Item Per Month Per Year Total
Day
Rent 250,000 3,000,000
Network provider 250,000 3,000,000
Transport 10,740,000 10,740,000
staff meals 40,000 1,240,000 14,880,000
Airtime 18,000 558,000 6,696,000
electricity bill 3,800,000
wages/salaries 6,610,000 79,320,000
NSSF contribution (10%) 7,932,000
Trading License 450,000
Cleaning Materials 1,860,000
Water Bill 12,400 148,800
Fuel (Generator) 583,200
Audit/Accounting Costs 1,500,000
Advertising 2,500,000
Total 136,410,000
Table 10 Projected Costs (60% Occupancy)

Projected Income Statement (‘000 Shs)

Year 1 2 3 4 5
Occupancy (%) 50 60 70 70 70
Sales 198,764.0 238,516.8 278,269.6 278,269.6 278,269.6
Costs 113,675.0 136,410.0 159,145.0 159,145.0 159,145.0
Gross Profit 85,089.0 102,106.8 119,124.6 119,124.6 119,124.6
Interest Paid 5,600 5,075 3,675 2,275 875
Net Profit 79,489.0 97,031.8 115,449.6 116,849.6 118,249.6
Tax 23,871.70 29,134.54 34,659.88 35,079.88 35,499.88
Net Cash 55,617.30 67,897.26 80,789.72 81,769.72 82,749.72
Table 11: Projected Income Statement

Conclusion
 The project at 50 – 70% occupancy (within 2-3 years) will be able to make profit and
repay the loan.
 The investors will be able to recover their investment through the retained profits
The investment will be able to contribute about Shs 90 million to the treasury over 5 years.

Projected Cash Flow Statement (‘000 Shs)

Year 1 2 3 4 5
Occupancy (%) 50 60 70 70 70
Balance B/F 0 105,967 162,964 232,854 232,466
Loan 40,000
Equity 11,250
Sales 198,764.0 238,516.8 278,269.6 278,269.6 278,269.6
Total Inflows 250,014 344,484 441,234 511,124 510,736
Operational Costs 113,675 136,410 159,145 159,145 159,145
Loan Paid 0 10,000 10,000 10,000 10,000
Interest Paid 5,600 5,075 3,675 2,275 875
Tax 23,872 29,135 34,660 35,080 35,500
Other Payments 900 900 900 900 900
Total Out Flows 144,047 181,520 208,380 207,400 206,420
Cash Balance 105,967 162,964 232,854 303,724 304,316
Table 12: Projected Cash Flow Statement

Note:
1. Other Payments in form of dividends
NET PRESENT VALUE AND IRR
Year 1 2 3 4 5
Occupancy (%) 50 60 70 70 70
NCF (‘000 Shs) 55,617.30 67,617.30 80,789.72 81,769.72 82,749.72
Discount Factor @ 14% 0.877 0.769 0.675 0.592 0.519
Present Value of NCF 48,776.372 51,997.704 54,533.061 48,407.674 42,947.105
(‘000 Shs)
Table 13 NET PRESENT VALUE

Net Present Value = Total Present Value of NCF - Investment

= 246,661,916 – 51,250,000 = 195,411,916
Profitability Index = 246,661,916/51,250,000 = 4.823

NPV (20%) = 161,461,260

NPV (25%) = 138,550,740

IRR = 20% + {161,461,260 / [(161,461,260+ 138,550,740) x 5]}

= 20.11%

Since the financial projections of NPV >0, PI>1 and IRR>14% the investment is viable.
REFERENCES
1. https://www.ura.go.ug/Resources/webuploads/INLB/PAYE%20New%20Rates.compressed.pdf
2.