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Wanjala N. Sylvia Bplan
Wanjala N. Sylvia Bplan
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DECLARATION
I hereby truthfully declare that this business plan is my original work and it has never been
presented anywhere to any examination board.
SIGNATURE : ………………………………
DATE : ………………………………
SUPERVISOR: MR KIRUI
SIGNATURE ………………………………..
DATE: ………………………………..
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DEDICATION
I kindly dedicate this business plan to my family for their moral and financial support during the
entire project section.
Special dedication to ETTI for academic guidance and entrepreneurial skills they imparted on
me.
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ACKNOWLEDGEMENT
My special thanks and gratitude for assistance and preparation and presentation of the business
plan goes to my lecturer Mr. I wish to extend my appreciation to my supervisor for his
professional guidance and advice on preparation of the business plan.
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1.0 EXECUTIVE SUMMARY
It briefly describes the business nature in respect to business description, marketing plan,
organization and management plan and financial plan of the business.
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CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 BUSSINESS NAME
The name of the proposed business will be TUPANDE AGROVET SHOP; the name is derived
from the Kiswahili word ‘Kupanda’ which means cultivate.. The name of the business is also
easy to read and remember. The business name will be registered as TUPANDE AGROVET
SHOP after making a lot inquires from the registrar of the business. This will ensure no other
business portrays the same name as identified by business owner. The business owner will
acquire a certificate of registration from the Regional office within Kericho town.
TUPANDE AGROVET SHOP is a business owned under sole proprietorship. The business
will sell farm products and services such as agrochemical, animal feeds and seed crops. It will
also provide vetenary services such as deworming, cleaning and vaccination of livestock and
animals like cows, horses, chickens, pigs, dogs and cats.
The business will be financed by owner`s and friend`s contribution which after sale will use the
profit and return to venture by opening other branches.
It`s main objective is to ensure effective supply and availability of farm products and services to
its customers.
1.2 BUSINESS LOCATION AND ADDRESS
The business will be located within Kericho town in Kericho county. It will be situated on Koin
eel Plaza building ground floor door number three next to agha khan hospital. The business will
be directly opposite mishkam Krishna on your way to Kericho district hospital
The business address will be:
TUPANDE AGROVET SHOP
P.O. BOX 64, KERICHO.
TEL:022-000054678
MOBILE:
EMAIL:tupandeagrovet@gmail.com
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SHELL PTRLM
TO NAKURU EMMANUEL MWANAINCHI HTL AIRADS
TO KISUMU
TUPANDE AGROVET
→→COUNTY OFFICES ARDHI HOUSESHOP
GURU NANAK
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1.3 FORM OF OWNERSHIP
The business will be sole proprietorship type of business .There are many factors and
reasons why the business is preferred as a sole proprietorship form of ownership:
The business is easy to form and dissolve it does not require many people to start and
maintain is the owner himself.
There is freedom in decision making and implementation of policies, strategies of how
the business is supposed to be run and the activities involved.
The business owner enjoys all the benefits that is occurred in the business alone since is
the person to integrates and co-ordinate the business and account for the loss incurred and
the profit gained.
It fosters creativity and innovation enabling the proprietor to exploit his talents, abilities
without limitation or from wherever source. He/she is the one to see how well he can
venture and get market for the business sustainability.
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few competitors is one of the factors that favor my choice of business that is agro vet business.
Kericho town so far has few agrovets, they are less than eight in number and so am sure of
getting customers
Raise living standards
The is need to cut cost of repairing infrastructure due to rise in living standards, the need for
good quality materials for building permanent infrastructure will provide a ready market to
venture.
Self employment
Due to high population which leads to unemployment in the country, the business will create self
employment and will enable to earn a living to sustain my life for other people in the area.
Population
Being an urban area, there are higher possibilities of being putting up a new infrastructure which
might create a high demand of the product services.
Infrastructure
The availability of roads, electricity will enable the business to transport the products without
any problem..
Industrialization
The town and the surroundings industries which might require the products and services in
putting up their neat structure, local authority to ensure production of quality products and proper
disposal of waste that are harmful to the environment.
In today’s world especially in Kenya there are cases of unemployment. The High Tech
computer Service shall provide employment.
The business also shall bring services near people hence the customers taste is satisfied.
Salary increment
By the end of 3rd year the business aims to increase employees’ salary and this will be a
great favors to the employees.
1.8.2SHORT TERM GOALS
Improve customer relationship
By the end of the five months, the business aims at improving and main customer`s
relationship.
The businesses will create more jobs opportunities by increase of 20%
1.9 THE ENTRY AND GROWTH STRATEGY
For the entry strategy the TUPANDE AGROVET SHOP is planning to use very competitive
ways of advertising its products and services. For the penetration and gaining of market of the
newly established business Agro farm is planning to use some competitive advantage e.g.
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advertising of the business and it`s products through media, posters, sign posts it wil use local
stations like chamgee fm, kitwek fm and milele fm.
The business will offer transport facilities to customers who buy in bulk and also discount to
those customers.
The business will straightly observe on good customers relationship with the employing skilled
workers and holding seminars and training of employees on good relationship with customers.
Employees will be provided with protective gumboots, helmet, aprons e.t.c for identification and
hygiene purpose.
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CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMERS
The environment where the business will be located has different classes of people who
contribute positively to the development and growth of the business. They include:
Individual customers
These are small scale farmers and the general public, who are destined to buy agro farm products
who have high purchasing powers act like occasional customers who will enjoy economic of
scale, this will allow them to make a profit .Their mode of payment will be mostly cash.
Institutional customers
These are factories such as Kericho Factory, James Finlay limited. It will also be adjacent to
kericho office of agriculture. The business will have business personnel and agents within the
institutions
Commercial customers
These are customers who will purchase the products for selling in their businesses. These
customers will be mostly be sold goods at wholesale price.
2.2 MARKET SHARE
The business location is in densely populated area surrounded by offices, banks, schools and
agro-vets. The population is approximated to be 30,000 people with potential customers.
Approximately 14,000 people are TUPANDE AGROVET SHOP customers with the 1 7,000
units to its competitors.
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TUPANDE AGROVET SHOP
8000 X 100% = 53.33% (360 degrees) = 190 degrees
15,000
.The competitors will share the following part of the potential customers as follows;
POTENTIAL COMPETITORS
The business has the following competitors
Mashambani agrovet stores
Wakulima animal feeds and poultry layers B
Size of the competitors
They are in small size expect
They lack customer satisfaction..
2.3.1 EFFECTS OF THE COMPETITORS ON THE BUSINESS
All are located within the town centre.
Changes in price of product as per the business.
2.3.2 GEOGRAPHICAL LOCATION OF COMPETITORS
MASHAMBANI AGROVET STORES is located not far from the business premises and has
good return of customers but poor equipment.
HOW TO OVERCOME THE COMPETITORS
Use of modern technology such as refrigerators for storage of vaccines.
Ensure effective products advertisement and fair pricing with quality products and services.
2.4 METHODS OF PROMOTION AND ADVERTISING
2.4.1 PROMOTION
Used to encourage sales of commodity in a targeted marketed mix.
Commonly used during introduction of a new product in the market. It includes the following
elements, public relation, publicity and personal selling sales promotion.
The business shall use the following promotion method.
Good public image
The business will relate well with its customers and competition through use of communication
skills this improves image of the business.
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Calendar and other publications such as free booklets and note book with the business products
services on the margin. Use of T-shirts which bears the business name and logo.
Operation hours
It will operate on long hours from 6.00am to 8.00pm.
2.4.2 ADVERTISEMENT
The aim of advertising is to attract more customers and orientation of the business to the world at
large. The business will put in use the following forms of advertisement.
The media
The business will advertise its product through television and radio programmes.
Billboards and posters
Will be put in different places roadside, round about and junctions.
Building of interpersonal relationship with neigbouring school, factories, and general public for
example issue time table free after sale or inquiry of the farm products and services.
Cost
The business will try its best to minimize the cost of advertisement to reduce the expenses; the
business therefore will advertise some of its products through the use of employees.
Frequency of advertisement
The business will do advertisement once a day through radio jambo and chamgee fm.
Discounting prices
Mainly to potential customers who buy in bulk
Prestige pricing
Will be administered to farmers who prefer high based breed seeds and vetenary pricing of
hybrid cows.
Market pricing
Pricing according to prevailing in the market .
Cost –plus pricing
Is pricing according to production cost incurred.
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CHAPTER THREE
3.0 ORGANIZATION/ MANAGEMENT PLAN
The proposed business will be managed by the owner who is also responsible of formulating
rules and regulations governing the firm. The management team includes the manager who is
also a purchasing manager, accounts supervisor, inventory and sales supervisor. The non-
management team will include general workers, security personnel and the drivers.
MANAGER
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3.2 KEY MANAGEMENT PERSONNEL /BUSINESS MANAGERS
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Should be of age 20-45
years
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3.4 RECRUITMENT, TRAINING AND PROMOTION
3.4.1 RECRUITMENT
TUPANDE AGROVET SHOP intends to recruit employees basing on their educational levels
and experiences, recruitment will be done advertisement through posters and employees
educational
institute and through chief Barazas. The business intends to liaise with many training institutions
purposely for graduates who are above average performance.
This will really enable the business enterprise to improve its handling of differed tasks for
effectively. Nevertheless any recruitment exercise that will require advertisement will be done
through appropriate advertisement media.
3.4.2TRAINING
The business intends to train employees in future on necessary skills required in business. This
will also be done when the business had grown and had generated more profits. Employees will
be taken for workshops and seminars, exchange programmes and inviting experts to advise
installation of computer in the business to cope with changing technology and to increase the
competitiveness of the business.
3.4.3PROMOTIION METHOD
This is an act of promotional employees as matter of motivating than in their various field of
operations. Employees promotion will be based on.
Their efficiency
The proprietor intends to promote hardworking workers who work efficiently with the aim of
increasing productivity to the firm.
Academic qualifications
Employees who possess high education level will be promoted accordingly. This is due to the
experience and skills they possess.
Hardworking and honest
The proprietor intends to promote hardworking and honest employees. This is done through their
measurable performance.
Incase of high future returns
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The business intends to promote their employees in future when the have experienced high profit
margin.
3.5.2 INCENTIVES
These are reward offered to the employees. They are meant to motivate them in undertaking the
activities effectively.
Presents and rewards
Efficient and effective employees will be rewarded with presents in order to motivate them.
Organizations trips
The business after a reasonable time will arrange to take their employees for a trip. This act will
motivate them.
Writing letters and materials
Management will ensure that whenever an employee does well in certain areas in the business
they are given a recommendation letter of appreciation with relevant signature and business logo.
This will help them during employees promotions.
Medical Services
KERICHO DISTRICT HOSPITAL
P.O.BOX 11
KERICHO
Postal Services
KERICHO POST OFFICE
P.O.BOX 0400
KERICHO
TEL: 050-0126175
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CHAPTER FOUR
4.0 OPERATIONAL / PRODUCTION PLAN
Production and operational plan deals with how the business will provide its product and the
facilities that will be used in production
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Electrical socket Purchased 5 3/2/2015 1,000 laptek
electronics
Cello tape purchased 12 3/2/2015 120 Ianoz stationery
Vaccinator purchased 12 3/2/2015 1,200 Paksons
syringe vetenary shop
Drenching guns purchased 10 6/2/2015 5,000 Pakson
vetenary shop
Drum pumps purchased 3 4/2/2015 4,500 All Farmers
vetenary
TOTAL 167320
Machines and equipment will be locally obtained with agreement for transfer to the owners
premises.
GENERAL PERSONNEL
MANAGER MANAGER
ENTRANCE
CCCU
PRODUCTION
ASSISTANCE
SALES CLERK
MANAGER
ACCOUNTANT TRANSPORTATION
OFFICE
EXIT DOOR
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GUARD
4.3 PRODUCTION STRATEGY
The business will incur monthly expenses for the production on the following.
4.2 PRODUCTION STRATEGY
Labor cost
Raw material cost
Production overhead cost
4.2.1THE COST OF LABOUR
It involves employees’ salary and allowances
TITLE NO. OF WORKERS AMOUNT (SHS)
Manager 1 20,000
Personnel manager 1 15,750
Accountant 1 14,450
Sales clerk 2 7,250
Production assistant manager 3 10,150
Veterinary doctor 4 2,100
Driver 2 7,250
5 2,175
Total 19 79,175
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4.2.3 PRODUCTION OVERHEAD COST PER MONTH
ITEM AMOUNT (SHS)
Electricity 1,200
Water bill 25,000
Insurance 200
Provision for advertisement 1500
Telephone 700
Postage 500
Stationery 2000
Provision for depreciation 1500
Provision for debts 800
Provision for maintenance repair 3500
Transport cost 1000
Committee meeting 1000
Municipal charges 600
Total 39500
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The firm will ensure its environment is well cleared. This will be done by ensuring that bins are
placed every place needed. Also the firm will recycle water product like firm chemicals used for
making fertilizers etc.
Safety regulations
All employees in the firm are expected to observe safety rules and regulations in their disposal.
Also the firm will establish a weekly safety talk where workers will spend 30 minutes every
Friday morning before work. These talk will help employees pin point possible accidents and the
immediate first aid boxes full with the required items for first exercise all over the business
premises.
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CHAPTER FIVE
5.0 FINANCIAL PLAN
This chapter deals with financial analysis of the business. It shows what should be invested
financial operation on what is expected from the business.
5.1 PRE-OPERATIONAL COSTS
ITEM AMOUNT (KSH.)
Trading license and legal fees 1,800
Advertisement cost 5,000
Electricity cost 5,000
Water installation 5,000
Insurance 500
Bank account opening fee 500
Loan processing fee 2,000
Telephone and Addresses 5,000
TOTAL 33,800
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TUPANDE AGROVET SHOP
5.2.1 PROJECTED CASH FLOW STATEMENT FOR YEAR ENDING 2023
MONTH JAN FEB MARCH APR MAY JUNE JULY AUG SEP OCT NOV DEC
Amount (shs)
CASH IN FLOW
A
Opening bal b/f - 260800 302350 340700 404000 496200 638200 730300 822550 845850 868150 865350
Cash sales 200000 150000 100000 100000 150000 200000 150000 200000 100000 80000 50000 20000
Debtors 5000 5000 5000 5000 5000 5000 50000 5000 5000 5000 5000 5000
Loan 120000 - - - - - - - - - - -
Owners equity 100000 - - - - - - - - - - -
Total ash inflow 425000 415800 402850 445700 559000 701200 793200 935300 927550 930850 923150 890350
CASH
OUTFLOW B
Cash purchases 150000 100000 50000 30000 50000 50000 50000 100000 7000 50000 45000 15000
Creditors 500 500 500 500 500 500 500 500 500 500 500 500
Advertisement 1000 500 500 - 1000 1200 1200 1000 - 1000 500 1000
Trading license 500 - - - - - - - - - - -
Miscellaneous 500 400 200 200 250 200 100 150 100 100 200 200
Drawings 1000 1500 500 500 500 500 500 500 500 500 1000 1000
Interest on loan 200 200 200 200 200 200 200 200 200 200 200 200
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Transport 500 500 500 500 500 500 550 550 550 600 600 600
Salaries & wages 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500
Electricity bill 1000 800 700 700 750 750 750 700 750 750 800 1500
Water bill 1500 1550 1550 1600 1600 1650 1650 1650 1600 1550 1500 2000
Total cash flow 164200 113450 62150 41700 62800 63000 62900 112750 81700 62700 57800 29500
Net cash c/d 260800 302350 346700 404000 496200 63820 730300 8225550 845850 868150 865350 719300
Accumulative 260800 563150 909850 1313850 1810050 2448250 3178550 4001100 4846950 5715100 6580450 7299750
cash
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5.2.2 AGROVET
INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2023
SHS. SHS.
PARTICULARS
Sales 1,500,000
Less : Cost of sales
Purchases 900,000
Less: Closing stock 860,850 39,150
Gross profit 1,460,850
Less: Operational expenses
Salaries and wages 90,000
Water bills 19,400
Electricity bills 9,950
Transport 6,450
Transport 2,400
Miscellaneous 2,600
Advertisement 8,900 139,700
Net profit before tax 1,321,150
Less: Provision for tax 10%
10% 1,321,150 (132,115)
Net profit after tax 1,189,035
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5.5 PRO –FORMA BALANCE SHEET
TUPANDE AGROVET SHOP Pro-forma opening balance sheet as at 31st December 2023
SHS SHS
FIXED ASSETS Capital 500,000
Computer 200,000 Owners equity 100,000
Furniture 200,000 600,000
Equipment 104,320 Add: Net profit 1,189,035
Total fixed assets 504,320 1,789,535
CURRENT ASSETS Less: Drawings 8,500
Stock 29,500 1,780,535
Debtors 100,000 LONG TERM LIABILITY
Cash at hand 860,850 Bank loan 120,000
Cash at bank 505,330 SHORT TERM LIABILITY
Creditors 99,465
2,000,000 2,000,000
Total 2,033,800
APPENDICES
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