BUSINESS PLAN

NAME OF THE BUSINESS: ABIGAEL’S ONLINE MARKETING AND

ADVERTISEMENT

POSTAL ADDRESS: P.O BOX 331-4040

MIGORI

ABIGAEL’S

PRESENTER: ABIGAEL ANYANGO SEJE

INDEX NUMBER 7360020025

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL FOR THE AWARD

OF DIPLOMA CERTIFICATE IN INFORMATION COMMUNICATION TECHNOLOGY IN
URIRI TECHNICAL AND VOCATIONAL COLLEGE

P.O BOX 1255-40400

COURSE CODE: 2920

DATE OF PRESENTATION: JULY SERIES 2023

 DECLARATION

This document declare that the work I have presented is my original work and not copied . I
present it or an award of certification in diploma in information and communication technology.

Candidates signature supervisors signature

………………………………………
………………………………………….
 DEDICATION

I thank the school together with my teacher for the help towards the plan .the teacher was
concerned and helped up to the submission day
 ACKNOWLEDGEMENT

I thank my father who supported me financially so as to have the plan ready before the
submission day. I also thank my best friend Clinton who encouraged me to stay focused always.
my friends also allowed me to access their data through Wi-Fi connection thanks to them
always .
 EXECUTIVE SUMMARY

Abigael’s online marketing and advertisement will be initiated by Abigael by the beginning of
the year 2026. the business will be dealing with marketing of products and advertisement of
products . There will be minor activities like printing and selling of posters . it will be computer
oriented type

The business will target the customers around Migori stage and the surrounding area. The
business will expand and this will enable this business to serve more customers even from far
areas .the customers will be individual and later be those buying in wholesale.

The business will be headed by the owner Abigael there will be employers and all of them will
be headed . the business will offer the best services in the area to all the customers . the
manager will also allocate different duties to different employers so that the customers to be
helped without fear or favor but fairness’ to all

The financial planning in Abigael’s online marketing and advertisement will help the manager
to know the growing trend of the business to know whether its making profits or loses. Incase
of any financial support the manager will know what to do.

The opening capital of the business will be 200,000/=

Bank loan………………………………………… 100,000/=

Willing friends………………………………….100,000/=
 CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1 BUSINESS NAME

The business will take a unique name of Abigael’s Online Marketing and Advertisement. It will
deal with advertisement of goods and online marketing of the goods .it will be for the online
marketing mostly since the world is much digitalized.

1.2 BUSINESS LOCATION AND ADDRESS

Abigael’s online marketing and advertisement shop will be located in Migori town , next to the
bus stop area .

Email address: abiseje@gmail.com

P.O BOX 331.40400
MIGORI
This location is appraise because of the following reasons
Availability of customers e.g. business individuals that offers ready market to the
business
Nearness to many sources of materials e.g. electronics
 1.3 FORM OF BUSINESS OWNERSHIP

Abigael’s online marketing and advertisement shop will be a solely owned business by Abigael’s
seje and therefore takes the form sole proprietship form of business. It is considerably the best
due to the following reasons; it requires small capital to start operation

Sole proprietship enjoys better knowledge of the market by the owner

It will be under full control of one person

The business will have a starting capital raise as follows

Bank loan……………………..100,000/=
Willing friends ……………..100,000/=

Total capital……………….200,000/=

1.4 TYPE OF BUSINESS

The business will be purely computer oriented type. Marketing and advertisement will be therefore be
the care objective of the business
It includes advertising of products from different companies
The status of the business is at a startup level and it will be starting to operate in January 2026
The reason for starting the operations of the business in January 2026 is to ensure that between now
and 2026 all other arrangements which include raw materials, capital and the avenue is readily
prepared
 1.5 TYPE AND SERVICES PRODUCTS

The table below gives the details of all the products and services that Abigael’s Online Marketing
and Advertisement will operate in it

Product form Product type Product lines Targeted amount

Online marketing Goods and Products from Companies
products companies/industry
advertisement Printers Posters,notices,fliers,books Individual ,
institutions
urgencies

1.6 JUSTIFICATION OF OPPORTUNITY

There are several social and economic development in the area that have readily expressed a need
for this particular business
The following are the major developments within the area that; many organizations realizes that,
advertisements are the key aspects to the growth of any organization therefore Abigael’s online
marketing and advertisement shop gives option of advertisement for such enterprises which are
growing this includes posters, flyers, business cards.
With the growth of many organizations and now that the public will locate us easily that is
important for online marketing
The business will be encouraged by the following; starting capital is not a large amount therefore
can be raised easily
Government policies are friendly to the business such as taxation
There will be large investment since it will be dealing with diverse products.
 1.7 INDUSTRY

The industry to which the business belongs is termed as information and communication technology
(ICT) Kenya provides investment opportunity in the ICT sector ICT investor friendly factors that
include: strategic location
Access to region marked
Diversified experience

1.8 GOALS OF THE BUSINESS

Abigael’s online marketing and advertisement shop has the following goals that are required to be
achieved to market the business to all companies.
To market the business to other regions out of Migori
To expand the business and have a branch or two in selected location.
To employ a staff for easy operation and running of the organization

1.9 ENTRY AND GROWTH STRATEGY

1.9.1 Entry strategy

The business will seek to attract the public awareness on its existence in the market.

Promotion of the business is necessary to ensure that the business picks its desired direction quickly
and on the correct time

The following methods that will be adopted as an entry strategy of the business into the market;
Music strategy will be adopted to attract people especially the youth into the business

Penetration pricing strategy where the business will start with a low cost strategy to attract
customers in the business.

Advertisement strategy will also be essential and it will be done through various advertisement
Medias such as posters

1.9.2 Growth strategy

The following are the major areas that Abigael’s Online Marketing and Advertisement will
strategize to ensure that there is growth in the business

Branch strategy opening several branches to capture more customers.

Market development strategy the business shall be loaning its products& services to its customers to
ensure that they keep in touch with the business and growth.

Diversification strategy the business will market its product and advertise its product also.
 CHAPTER TWO

2.0 MARKETING PLAN

2.1 CUSTOMERS

The targeted customer will be whole sellers, institutions and agencies since the shop
will be around the place. The customers will be students since there is an institution
around the shop area. The customers are adults, children and young adults. The
customers have an average level of income; most of the people in that area are
educated. They believe in good service to all and no one is despised.

The customers in that area are Christians, some are Muslims. Services are offered both in the day
and night since the customers are available in the either of the time. The customers will benefit
from the shop since the products will arrive on time and the services will be offered well.

2.2 MARKET SHARE

The target population will be a hundred thousand people since the shop will be in a town area.
The business offers advertisements platform for the offline based companies, personal business
people, and service delivery. The business focuses on internet and online companies as their
main form of marketing.
 Market share in percentage

Online companies
Offline companies
Other companies

2.3 COMPETITION

There are competitors in the town like Onyango’s Advertisement shop which is just next to the
market entrance. The market share for the competitor is average since it’s just for
advertisements.

NO. Percentage Strengths Weakness Strategy to Location

share compete
1 25% Affordable Low quality Provide Opposite
prices goods goods with Abigael’s
high quality shop
2 10% Good Poor Provide Next to the
relations services high quality market
with human services
3 5% Affordable Late Get goods North side
prices opening of of
time affordable Abigael’s
 prices shop

2.4 METHODS OF PROMOTION AND ADVERTISEMENT

2.4.1 METHODS OF PROMOTION

The Abigael’s online, marketing and advertisement shop will always offer good services hence it
will entice many customers to come and get more services daily. The shop will offer extra
services like printing of books. A banner will be used so as to easily direct the customers to the
shop. There will be notices to make the customers to come and try the services, the notices will
be written “Good services to all, you are welcomed”.

The customers will be promoted monthly so as to make them come more frequently to the shop.
The customers will be offered free services at times for them to come even more frequent.

2.4,2 ADVERTISING METHODS

The Abigael’s online marketing and advertisement shop will be advertised through Google
accounts which will be abiseje@gmail.com and all products and services offered will be
displayed to the customers. There will be a message to the customers saying, “Good services
offered to all”.

There will be banners showing the products. The Abigael’s online marketing and advertisement
shop prefers the use of banners since it can be easily seen and the products which can entice the
customers easily.
 2.5 PRICING STRATEGY
The pricing will be according to the type of service that a customer will be in need of. Prices will vary
from different type of products according to also the demand, when the demand is high, then the business
will adjust its price in the market. The pricing will be put according to the income of the customers who
will be coming to get the services. The prices will be put viewing the other competitors’ prices first for
the customers to the Abigael’s online marketing and advertisement shop.

2.6 SALES AND TACTICS

There will be tactics that will help to increase the sales in the business as well as attracting more
customers to buy and use more products and services like;

Discounts – Customer who buy and acquire reasonable amounts and quality of products and
services will be appreciated by discounts.
Mobile services - The Abigael’s online marketing and advertisement shop will offer mobile
services where those customers who will not get time will call so that their plea to be heard and
adhered to.
Loans - Abigael’s online marketing and advertisement shop will allow customers to take products
and services on loan to make it easy for customers to enjoy them when there is no ready cash
from customers.

2.7 DISTRIBUTION STRATEGY

The Abigael’s online marketing and advertisement shop will show its products by advertising them to the
customers. The mode of transport that is reliable around the business location is “bodaboda” and at times
matatus. This mode of transport will serve all categories of customers’ i.e. the individual customers,
institutional customers
 CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 ORGANIZATIONAL STRUCTURE

The Abigael’s online marketing and advertisement shop will be organized by the manager
followed by the assistant manager followed by sales and production as in the diagram below
Manager

Assistant manager

Sales Productions

3.2 KEY MANAGEMENT PERSONNEL OR BUSINESS MANGERS

The business will be managed by the manager who is Madam Abigail. The manager will direct,
supervise and control all the activities that will take place. The manager is 26 years and will be
graduating 2025. She is pursuing a course in Information Communication Technology.
 3.3 OTHER PERSONNEL

The Abigael’s online marketing and advertisement shop will employ ten employees who will
help in the running of the business. The title will be online marketer and advertisements. Here’s
the summary;

No. PERSONNEL NUMBER QUALIFICATIONS DUTIES AND SALARY

RESPONSIBILITIE AND
S BENEFITS
1 Manager 2 Must be a graduate To control the Kshs.15,000
business per month
2 Supervisor 3 Must have C+ and To supervise well Kshs.10,000
above in KCSE per month
3 Technician 3 Must have C- in To handle and repair Kshs.9,000
KCSE when needed per month
Total 8 Kshs.34 000

3.4 RECRUITMENT, TRAINING AND PROMOTIONS

3.4.1 RECRUITMENT

The business will advertise the vacant position for those willing to join. The people will apply
for the job and will be required to have met all the qualifications needed.

3.4.2 TRAINING

Those who will be new will be trained by the trainers hence will enable them to familiar with the work.
The trainees will be trained only if they have all the required qualifications.
 3.4.3 PROMOTIONS

There will be promotions only to those employees who are always loyal and hardworking
throughout the work period. It will depend on how the employees will conduct their work and
with the customers also.

3.5 RENUMERATION AND INCENTIVES

In Abigael’s shop, the working hours will be 10 hours per day except on weekends which will
only be 4 hours only. The employees will have allowances due to the work that they do daily.
The employees will be allowed to go for trips and tours to explore more about the work they are
doing. They will also have leafs to go visit their beloved ones and families for a while.

3.6 LICENSE, PERMITS AND BY-LAWS

The business will require a license which will be obtained from the county government. The
license cost will be five thousand and will be renewed after every five months. The business will
be taxed just like the other businesses.

SUMMARY FOR LEGAL REQUIREMENTS

No. Requirements Registration Where Fee payable Remarks

obtained (Kshs)
1 Government registration Registrar 1500 Once
regulations office
2 Labor laws registration City council 200 Not
renewable
3 Insurance registration Government 2000 Renewable
office
4 Building registration National 500 Not
 regulation construction renewable
authority
5 Local registration Registrar of 1000 renewable
authority societies
regulations

3.7 OTHER SUPPORT SERVICES

Abigael’s online marketing and advertisement will work with the banking services as well as
opening bank accounts.
 CHAPTER FOUR

4.0 OPERATION/PRODUCTION PLAN

4.1 PRODUCTION FACILITIES AND CAPACITIES

4.1.1 PRODUCTION FACILITIES AND EQUIPMENT

Abigael’s online marketing and advertisement shop will need facilities like the chairs, tables,
laptops, computers which the employees will use in the running of the business. The laptops and
computers will be used to design posters, typing, printers which will be used when printing.
There will be fixtures such as internet server, telephones for calling the clients from different
places. The printers will be leased since printing will be done more often. The business will offer
transport cost for the leased equipment.

The business will employ a computer technician who will be repairing the broken computers and
maintain them. The tools will be according to their use. The equipment will be used for a longer
period according to the maintenance done to them.

4.1.2 BUSINESS PREMISES

The business will use two buildings which will be owned by the owner who will be Abigael. The
building will be an apartment house. There will be some facilities installed like power which will
be used regularly. The working space will be big since it will be able to accommodate all the
workers. The premise will require renovation like painting and repair. That will cost Kshs. 10
000. The shop will be renovated whenever the premise is not well looking. The business will be
located in Migori town next to Migori stage opposite Equity bank of Kenya.

4.2 PRODUCTION PROCESS OR STRATEGY

4.2.1 PRODUCTION PROCESS

The production process will be according to the services being offered daily in the shop. It will
offer services like printing, designing posters, advertisement and all the customers will be served
with fairness. The business will offer the best services so far which will make other customers to
also come to the premise for services. The cost of services will be according to the type of
service to be offered. There will be the use of technology since there will use computers which
need high technology for it to process well.

4.3 PRODUCTION PROCESS

For the services to be offered there will be use of computers and printers. For printing, printers
will be used while for advertisement and online browsing computers will be used. The air
conditioners will be used so that there will be fresh air always in the premise. The production
will be according to the customers served daily.
 4.4 REGULATION AFFECTING OPERATION/PRODUCTION

Building regulations may affect the production since money is spent on it hence it may affect the
production of services monthly. Whenever the roofs are damaged in any way the expenses that
will be used hence will affect the production. In case of any emergency like fire, so the fire
extinguishers will be used and that also must be brought and money will be used and that also
must be brought and money will be used affecting the production of services.

Security must be available and it must be high security. Health issues must be considered e.g.
having toilets for workers and safe drinking where there will be expenses used which may affect
the production. The products will be delivered on time to prevent being damaged.
 CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 PRE - OPERATIONAL COST

The Abigael’s online marketing and advertisement shop pre operational cost will as summarized
in the table below:

ITEM AMOUNT (KSHS)

Labor 342 657
Six months rent 420 000
Machines 836 000
Tools and equipment 400 000
Furniture and fitings 34 567
Licenses, permits and by-laws 20 580
Electricity 17 000
Internet 10 000
TOTAL PRE-OPERATIONAL COST 2 345 764

5.2 WORKING CAPITAL ESTIMATION

The Abigael’s online marketing and advertisement shop will require some amounts for its
operation. Working capital is difference between the some of the total current asset minus the
sum of the total current liability

WC = CA-CL
Working capital for the first three years;

ITEM YEAR 2026 YEAR 2027 YEAR 2028

AMOUNT (KSHS) AMOUNT (KSHS) AMOUNT (KSHS)
Current assets
Cash at bank 300 000 850 000 1 500 000
Cash in hand 200 000 350 000 700 000
Stock 100 000 120 000 130 000
Debtors 50 000 60 000 70 000
Total current assets 650 000 1 380 000 2 400 000
Fixed assets
Machines 580 687 474 670 500 520
Tools and equipment 345 500 254 890 375 890
Furniture and fittings 200 000 197 200 190 500
Total fixed assets 1 126 187 926 760 1 066 910
Total assets 1 776 187 2 306 760 3 466 910
Liabilities
Current liabilities
Creditors 50 000 20 000 40 000
7 months bank loan 15 000 15 000 15 000
Friends contribution 7 500 7 500 7 500
Long-term liability
2 year loan 670 000 500 000 480 000
Premise 78 000 78 000 78 000
Owners’ equity

Total liabilities

WC = Year 2026 – CA – CL

926 760 – 72 500

= 854 260

WC = Year 2027

CA – CL

580 687– 42 500

= 538 187

WC = Year 2028

= CA – CL

= 3 466 910– 62 500

= 3 404 410
 5.3 PROJECT CASH FLOW STATEMENT

The Abigael’s online marketing and advertisement shop started by acquiring loan as a method of
raising capital to start the business which will be paid monthly installments of Kshs. 25 000 for
36 months. The table below shows the projected cash flow statement for the year 2006 at which
loan repayment and interest on loan is proceeding and will take 24 months up to 2028

Project cash flow for the year 2026

Particula Jan Feb Mar Apri May June July Aug Sep Oct Nov Dec
rs l
Bal B/D 1000 1900 2760 3180 3430 3520 3520 3460 3300 3130 2810 2510
00 00 00 00 00 00 00 00 00 00 00 00
Cash sales 1000 1200 1000 1000 9000 7500 7000 6000 6000 5000 5000 6000
00 00 00 00 0 0 0 0 0 0 0 0
Debtors 5000 4000 2000 1000 5000 2000 2000 2000 2000 2000 2000 2000
0 0 0 0 0 0 0 0 0 0
Total 2500 3500 3960 4280 4380 4470 4420 4260 4100 3830 3510 3310
cash 00 00 00 00 00 00 00 00 00 00 00 00
inflow

Cash out
flow
Creditors 5000 7000 1000 1000 1000 2000 2000 2000 2000 2500 2500 2000
0 0 0 0 0 0 0 0 00 0
Salaries 5000 6000 6000 7000 7000 7000 7000 7000 7000 7000 7000 7000
0 0 0 0 0 0 0 0 0 0 0 0
Advertise 5000 7000 8000 5000 6000 5000 6000 6000 7000 7000 5000 5000
ment
Total 6000 7400 7800 8500 8600 9500 9600 9600 9700 1020 1000 9500
cash out 0 0 0 0 0 0 0 0 0 00 00 0
 flow
Net cash 1900 3180 3430 3520 3520 3460 3300 3130 2810 2510 2360
for the 00 2760 00 00 00 00 00 00 00 00 00 00
00
month
CASH IN
FLOW

Opening 42 41 396 392 372 387 383 378 37405 1258 12050 1160 3882
56
balance 01 550 050 930 550 050 550 00 000 00 000 8700
70
70 0 0 0 0 0 0 0
0
Cash sales 80 76 900 300 100 200 300 100 40000 3000 85000 6300 5640
00 00 00 00 00 00 00 00 0 0 00
0 0
Debtors 30 20 250 400 210 150 100 200 5000 1000 20000 1500 2310
00 00 00 00 00 00 00 00 0 0 00
0 0
TOTAL 43 42 408 399 376 391 387 381 37855 1298 13100 1238 3962
CASH IN 11 52 050 050 030 050 050 550 00 000 00 000 3700
70 70 0 0 0 0 0 0
0 0

CASH OUT
FLOW

Pre- 15 15 150 150 150 150 150 150 15000 1500 15000 1500 1800
operational 00 00 00 00 00 00 00 00 0 0 00
costs 0 0
Purchases 35 21 180 600 500 800 700 - - - - - 1000
00 00 00 0 0 0 0 00
0 0
Salaries 91 91 910 910 910 910 910 910 91000 9100 91000 9100 1092
00 00 00 00 00 00 00 00 0 0 000
0 0
Rent 20 20 200 200 200 200 200 200 20000 2000 20000 2000 2400
00 00 00 00 00 00 00 00 0 0 00
0 0
Electricity 20 10 200 100 200 200 100 200 1000 1000 1000 2000 1800
00 00 0 0 0 0 0 0 0
Telephone 10 15 150 100 100 200 150 150 1000 1000 1500 1500 1600
00 00 0 0 0 0 0 0 0
Insurance 30 30 300 300 300 300 300 300 3000 3000 3000 3000 3600
00 00 0 0 0 0 0 0 0
Taxes 50 50 500 500 500 500 500 500 5000 5000 5000 5000 6000
00 00 0 0 0 0 0 0 0
TOTAL 30 29 290 270 277 146 143 137 13600 1360 13650 1375 1742
CASH OUT 70 25 500 00 00 00 500 500 0 00 0 00 000
00 00

NET CASH 40 39 379 396 348 389 372 367 36495 1162 11735 1100 3788
04 60 000 350 330 590 700 800 00 000 00 500 1700
70 20 0 0 0 0 0 0
0 0
Above table shows projected cash flow for the year 2027
 Projected cash flow for the year 2028

Particula January Februar March April May June July August Septe
rs cash y mber
flow
Opening 700 000 734 000 790 200 800 820 200 850 830 900 432 910
balance 000 740 496 874
Owner 780 800 780 800 780 800 780 780 800 780 780 800 780 800 780 800
800 800
equity
- 2 000 8 000 6 500
Cash sales 400 000 455 700 477 000 452 598 678 703 690 710 800 800
500 854 511 000
Total 450 000 455 700 409 000 359 503 420 474 425 450 893 628
cash in 400 200 700 000
flow
Cash out
flow
Pre 494 183 372 000 198 265 200 189 900 256 360 322 200 400
operationa 000 345 742 000
l cost
Purchases 44 500 226 200 425 409 500 532 288 522 437 290 900 283
000 435 890 567
Payment 10 000.67 10 000.67 10 000.67 10 10 000.67 10 10 10 10
000.6 000.67 000.67 000.67 000.67
to 7
creditors
10%
Rent 78 000 78 000 78 000 78 78 000 78 000 78 000 78 000 78 000
000
Electricity 3 000 3 000 3 000 3 000 3 000 3 000 3 000 3 000 3 000
Internet 15 000 15 000 15 000 15 15 000 15 000 15 000 15 000 15 000
000
Water 17 000 17 000 17 000 17 17 000 17 000 17 000 17 000 17 000
000
Telephone 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000
Transport 7 500 7 500 7 500 - 7 500 - 7 500 7 500 -
Advertisin 5 000 -- --- 5 000 5 000 5 000 5 000 - -
g
Insurance 21 000 21 000 21 000 21 21 000 21 000 21 000 21 000 21 000
000
Loan 13 500 13 500 13 500 13 13 500 13 500 13 500 13 500 13 500
500
payment
Interest 6 000 6 000 6 000 6 000 6 000 6 000 6 000 6 000 6 000
on loan
Taxes 12 500 12 500 12 500 12 12 500 12 500 12 500 12 500 12 500
500
Machine 100 000 116 000 1162000 1162 1162000 11620 116200 1162000 116200
and 000 00 0 0
equipment
Total 192 00 191 695 191 750 192 191 900 193 200 198 566 193
cash out 00 300 000 600
Net cash 423 60 342 344 455 000 390 395 987 455 325 425 674 323
for the 700 267 600 600
month
5.4 PRO-FOMA INCOME STATEMENT

The Abigael’s online marketing and advertisement shop is a proposed business that is not an
existing business therefore, the income statements is pro-foma and not real profit and loss
account. Pro-foma income statements for Abigael’s shop for their years ending 30 TH Dec 2026,
30th Dec 2027, 30th Dec 2028

PARTICULARS 30TH DEC 2026(Ksh) 30 DEC 2027(Ksh) 30 DEC 2028(Ksh)

Sales 9098700 39623700 351981200
Less cost of sales 4897000 1742000 2372050
Gross profit 4201700 37881700 349609150

EXPENSES
Purchases 254000 100000 425150
Salaries 1092000 1092000 1092000
Rent 240000 240000 240000
Electricity 18000 18000 24000
Telephone - 16000 15500
Transport - - 47000
Advertising 57000 - -
Insurance 36000 36000 36000
Loan repayment 200000 - -
Taxes 60000 60000 60000

Total expenses 1957000 1562000 1939650

Net profit before tax 2244700 36319700 347669500
Net profit after tax 287700 34757700 345729850
The assumption made is that the taxation rate is at 25% of the total income, the loan repayment is
Kshs. 25 000 each month for 24 months and the interest on loans 2% of the total amount
equivalent to Kshs every month for 24 months.

5.5 PRO-FOMA STATEMENTS OF FINANCIAL POSITION

The Abigael’s online marketing and advertisement shop is a proposed business therefore the
balance sheet is termed as pro-foma.

Statement of financial position as at the beginning of year 1 to the end of year 2

ASSETS END OF YEAR 1 END OF YEAR 2

CURRENT
ASSETS
Cash in bank 200000 349609150
Cash at hand 800000 200000
Stock 60000 50000
Debtors 0 5000
TOTAL CURRENT 1060000 349864150
ASSETS

FIXED ASSETS
Machines 135000 50000
Tools and equipment 105000 30000
Furniture and fittings 200000 20000
TOTAL FIXED 440000 100000
ASSETS

TOTAL ASSETS 1500000 349964150

LIABILITIES
CURRENT
LIABILITIES
Creditors 30000 70000
Friends contribution 400000 100000
TOTAL CURRENT 430000 170000
LIABILITIES

LONG-TERM
LIABILITIES
Owners equity 400000 500000
Bank loan 200000 0
TOTAL LONG- 600000 500000
TERM
LIABILITIES

TOTAL 1030000 670000

LIABILITIES
Assumption made is that the depreciation rate of machine is (25%) for tools and equipments
(20%) and that furniture and fittings is (20%)

5.6 BRAKE EVEN POINT CALCULATION

Brake even point is a point where total cost ( expenses) and total sales (revenue) are equal.

Break-even point, BED = Contribution margin%

Fixed assets

CM% = Contribution margins/sales *100

Variable cost

Item Amount (kshs)

Pre operational costs 16000
Purchases 18000
Payment to creditors 24000
Electricity 15500
Water 47000
Telephone 36000
Internet 36000
Transport 57000
Advertisement 60000
Interest on loan 7 500
Loan repayment 2877
Total variable cost 5000
Fixed costs 30000
Item Amount (kshs)
Salaries/wages 325 000
Rent 70 000
Insurance 10 080
Taxes 10 500
Total fixed costs 415 580
 5.9 PROFITABLE RATIO

Having the net profit, gross profit, return on investment and return on equity, their ratio has been
expressed in the Abigael’s online marketing and advertisement shop

Gross profit ratio

GP ratio = Gross profit/sales * 100

Year 2026 Gp = 4201700/9098700*100 =46.17%

Year 2027 Gp = 37881700/39623700*100 =95.60%

Year 2028 Gp = 349609150/351981200*100 =99.32%

Net profit ratio

NP ratio = Net profit before tax/sales * 100

Year 2026 Np =2244700/1957000*100 = 11.47%

Year 2027 Np = 36319700/1562000*100 = 24.2%

Year 2028 Np =347669500/1939650*100 = 17.9%

Return on equity
Return on equity = Net profit after tax/owners’ equity * 100

Year 2026 ROE = 287700/254000*100= 11.32%

Year 2027 ROE = 34757700/100000*100= 34.75%

Year 2028 ROE =345729850/425150*100= 19.12%

 5.8 DESIRED FINANCING

Desired financing shows the amount that the business should process for investing, if everything
worked as planned.

Desired finance

Item Amount (Kshs)

Pre-operational costs 456 768
Working capital 350 000
Contingency funds 283 450
Total desired financing 500 000
5.9 BREAK-EVEN ANALYSIS

Gross profit of the business is collected as follows

GP = Sales – Total direct costs

GP = 287700-19234

= 268466

GROSS PROFIT MARGIN

Gross profit margin = Gross Profit * 100

Sales

= =268466/287700*100

= 12.5%

Total expenses = 23 500

Break-even level
Break-even level = Overhead/ expenses * 100

Gross profit margin

MONTH JAN FEB MAR APR MAY JUN

JULY AUG SEP OCT NOV DEC TOTAL
Cash sales 400,000 453,700 477,000 488,800
499,900 507,500 536,600 555,800 567,000
585,000 614,500 635,000 6,320,800
Debtor’s paid - 2,000 8,000 5,000 - 10,000
10,000 15,000 - 5,000 10,000 10,000 70,000
Total in cash flow 450,000 455,700 469,000
483,800 499,900 497,500 524,600 540,800
567,000 579,000 605,500 623,000 6,284,000
Cash outflow - - - - - - - - - - - - -
Purchases 100,000 20,500 15,200 16,000
17,200 15,700 18,800 17,600 17,900 18,900
18,000 18,200 294,000
Loan payment
10%
10,000.67 10,000.67 10,000.67 10,000.67
10,000.67 10,000.67 10,000.67 10,000.67
10,000.67 10,000.67 10,000.67 10,000.67
120,008
Rent 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
15,000 180,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000
3,000 3,000 3,000 3,000 3,000 3,000 36,000
Repair and
maintenance
3,500 3,800 4,000 4,200 4,250 4,500 4,800
4,050 4,200 4,250 4,450 4,500 50,000
License and
permits
30,000 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
195,000/=
Salaries and
wages
173,000 173,000 173,000 173,000 173,000
173,000 173,000 173,000 173,000 173,000
173,000 173,000 2,076,000/=
Post 1,000 - 1,000 1,000 1,000 - 1,000 1,000
1,000 - 1,000 1,000 9,000
Taxes 17,500 18,000 20,300 17,900 23,500
19,180 19,000 23,000 16,700 17,000 19,900
18,180 230,160
Telephone
services
1,000 1,000 1,000 1,000 1,000 1,000 1,000
1,000 1,000 1,000 1,000 1,000 12,000/=
Stationary 1,000 1,000 500 1,000 750 800 450
700 700 750 750 800 9,200/=
Advertisement 5,000 1,500 1,000 800 1,000 750
900 1,000 800 700 500 2,000 15,950/=
Miscellaneous 10,500 4,000 3,290 3,700 3,900
3,700 4,200 3,250 2,850 3,700 3,050 3,860
50,000
Total cash outflow 389,316.67 270,115.67
270,056.67 268,465.67 280,096.67 269,126.67
224,436.67 255,300.67 268,909.67 259,016.67
272,006.67 253,366.67 3,581,663.04
Cash surplus 49,183.33 172,003.33 198,237.33
210,123.33 223,708.33 228,233.33 250,163.33
245,463.33 298,370.33 309,563.33 333,453.33
339,983.33 2,889,185
Accumulated cash
flow
49,883.33 226,466.66 425,409.33 640,733.32
709,486.65 1,092,719.98 1,209,883,31
1,108,346.64 1,706,700.97 2,211,240.3
2,939,703.63 2,659,016.96 7,960,972
MONTH JAN FEB MAR APR MAY JUN
JULY AUG SEP OCT NOV DEC TOTAL
Cash sales 400,000 453,700 477,000 488,800
499,900 507,500 536,600 555,800 567,000
585,000 614,500 635,000 6,320,800
Debtor’s paid - 2,000 8,000 5,000 - 10,000
10,000 15,000 - 5,000 10,000 10,000 70,000
Total in cash flow 450,000 455,700 469,000
483,800 499,900 497,500 524,600 540,800
567,000 579,000 605,500 623,000 6,284,000
Cash outflow - - - - - - - - - - - - -
Purchases 100,000 20,500 15,200 16,000
17,200 15,700 18,800 17,600 17,900 18,900
18,000 18,200 294,000
Loan payment
10%
10,000.67 10,000.67 10,000.67 10,000.67
10,000.67 10,000.67 10,000.67 10,000.67
10,000.67 10,000.67 10,000.67 10,000.67
120,008
Rent 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
15,000 180,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000
3,000 3,000 3,000 3,000 3,000 3,000 36,000
Repair and
maintenance
3,500 3,800 4,000 4,200 4,250 4,500 4,800
4,050 4,200 4,250 4,450 4,500 50,000
License and
permits
30,000 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
195,000/=
Salaries and
wages
173,000 173,000 173,000 173,000 173,000
173,000 173,000 173,000 173,000 173,000
173,000 173,000 2,076,000/=
Post 1,000 - 1,000 1,000 1,000 - 1,000 1,000
1,000 - 1,000 1,000 9,000
Taxes 17,500 18,000 20,300 17,900 23,500
19,180 19,000 23,000 16,700 17,000 19,900
18,180 230,160
Telephone
services
1,000 1,000 1,000 1,000 1,000 1,000 1,000
1,000 1,000 1,000 1,000 1,000 12,000/=
Stationary 1,000 1,000 500 1,000 750 800 450
700 700 750 750 800 9,200/=
Advertisement 5,000 1,500 1,000 800 1,000 750
900 1,000 800 700 500 2,000 15,950/=
Miscellaneous 10,500 4,000 3,290 3,700 3,900
3,700 4,200 3,250 2,850 3,700 3,050 3,860
50,000
Total cash outflow 389,316.67 270,115.67
270,056.67 268,465.67 280,096.67 269,126.67
224,436.67 255,300.67 268,909.67 259,016.67
272,006.67 253,366.67 3,581,663.04
Cash surplus 49,183.33 172,003.33 198,237.33
210,123.33 223,708.33 228,233.33 250,163.33
245,463.33 298,370.33 309,563.33 333,453.33
339,983.33 2,889,185
Accumulated cash
flow
49,883.33 226,466.66 425,409.33 640,733.32
709,486.65 1,092,719.98 1,209,883,31
1,108,346.64 1,706,700.97 2,211,240.3
2,939,703.63 2,659,016.96 7,960,97
MONTH JAN FEB MAR APR MAY JUN
JULY AUG SEP OCT NOV DEC TOTAL
Cash sales 400,000 453,700 477,000 488,800
499,900 507,500 536,600 555,800 567,000
585,000 614,500 635,000 6,320,800
Debtor’s paid - 2,000 8,000 5,000 - 10,000
10,000 15,000 - 5,000 10,000 10,000 70,000
Total in cash flow 450,000 455,700 469,000
483,800 499,900 497,500 524,600 540,800
567,000 579,000 605,500 623,000 6,284,000
Cash outflow - - - - - - - - - - - - -
Purchases 100,000 20,500 15,200 16,000
17,200 15,700 18,800 17,600 17,900 18,900
18,000 18,200 294,000
Loan payment
10%
10,000.67 10,000.67 10,000.67 10,000.67
10,000.67 10,000.67 10,000.67 10,000.67
10,000.67 10,000.67 10,000.67 10,000.67
120,008
Rent 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
15,000 180,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000
3,000 3,000 3,000 3,000 3,000 3,000 36,000
Repair and
maintenance
3,500 3,800 4,000 4,200 4,250 4,500 4,800
4,050 4,200 4,250 4,450 4,500 50,000
License and
permits
30,000 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
195,000/=
Salaries and
wages
173,000 173,000 173,000 173,000 173,000
173,000 173,000 173,000 173,000 173,000
173,000 173,000 2,076,000/=
Post 1,000 - 1,000 1,000 1,000 - 1,000 1,000
1,000 - 1,000 1,000 9,000
Taxes 17,500 18,000 20,300 17,900 23,500
19,180 19,000 23,000 16,700 17,000 19,900
18,180 230,160
Telephone
services
1,000 1,000 1,000 1,000 1,000 1,000 1,000
1,000 1,000 1,000 1,000 1,000 12,000/=
Stationary 1,000 1,000 500 1,000 750 800 450
700 700 750 750 800 9,200/=
Advertisement 5,000 1,500 1,000 800 1,000 750
900 1,000 800 700 500 2,000 15,950/=
Miscellaneous 10,500 4,000 3,290 3,700 3,900
3,700 4,200 3,250 2,850 3,700 3,050 3,860
50,000
Total cash outflow 389,316.67 270,115.67
270,056.67 268,465.67 280,096.67 269,126.67
224,436.67 255,300.67 268,909.67 259,016.67
272,006.67 253,366.67 3,581,663.04
Cash surplus 49,183.33 172,003.33 198,237.33
210,123.33 223,708.33 228,233.33 250,163.33
245,463.33 298,370.33 309,563.33 333,453.33
339,983.33 2,889,185
Accumulated cash
flow
49,883.33 226,466.66 425,409.33 640,733.32
709,486.65 1,092,719.98 1,209,883,31
1,108,346.64 1,706,700.97 2,211,240.3
2,939,703.63 2,659,016.96 7,960,972
= 23500/268466*100

= 12.4%
 REFERENCE

Business plan guide by T.Kemunto

Entrepreneurship training manual by Mburu Thiongo

 MIGORI TOWN

SWEET TASTE
MIGORI BAKERY
HOSPITAL

MAP

MIGORI
STADIUM

FROM
URIRI

ABIGAEL’S
BANSI
COMPANY
SUPERMARKET

EMADS
COMPANY