ENTERPRENEURSHIP PROJECT

BRENDA FISH FARMING ENTERPRISE

NAME: BRENDA CHEPKEMOI

INDEX: 5831020647

COURSE CODE; 1805

CENTRE CODE: 583102

CENTRE NAME: SOT TECHNICAL TRAINING INSTITUTE

DEPARTMENT: BUSINESS

SUPERVISOR: MR. TOWETT

PRESENTED TO: THE KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILMENT FOR THE AWARD OF
CERTIFICATE IN SOCIAL WORK AND COMMUNITY
DEVELOPMENT

SERIES: JULY 2024

 DECLARATION
I hereby declare that this business proposal is original piece of work and has never been
submitted to Kenya national examination council for the award of certificate in social work
and community development

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 DEDICATION
I dedicate this business plan to my dear sister and brothers for their financial and moral
support that they gave while writing this project. I appreciate your support and constant
encouragement.

Thank you and may God bless you.

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 ACKNOWLEDGEMENT

I would like to acknowledge everyone who contributed to the success of this project. . I
would also like to acknowledge most sincerely to the principal Sot technical training college
Mr. Cheres, staffs and my friends who aided me in writing this business plan

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EXACUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION

The proposed business name Brenda fish farming whose proprietor will be Brenda
Chepkemoi, the business will be located at Bomet County.

The business is to be invest by ksh 500000 where by ksh 300000 is from personal savings,
ksh 100000 is from financial institution family bank, and the rest is from relatives and
friends.
The business is unique in the area and the owner will use skilled labour and advanced
technology to produce the best fish in the market. The business will create job opportunity to
people in the local area and this will improve their living standards.

2.0 MARKETING PLAN

The targeted customer for the Brenda fish farming limited will be resident in Bomet Town,
Bomet high school, special occasions and in institutions and hospitals.

The firm intends to capture 60%of the market share; the share is expected to increase to
85%due to the poor marketing strategy use by the other relatives. Our aim is to provide the
best quality to customers. The prize will depend on the season, government policy, and cost
of production, demand and price charged by the competitors.

3.0 ORGANIZATIONAL AND MANAGEMENT PLAN

The business will begin with a total of six workers, general manager who is the owner, supply
manager, sales man, accountant, security and supervisor. The proprietor will be in charge of
the business and she will arrange for all employees to be trained in all fields concerning the
business (fish selling and rearing)

She will ensure employee receives incentives and well-motivated.

4.0 OPERATIONAL/PRODUCTION PLAN

Miriam fish farming will be dealing with selling and rearing of fish that will require facilities
and equipment to facilitate the production process .Some of the equipment’s that will be
required will be: furniture, cooling system, scratches, refrigerator, weighing machine,
printing machine, and installation air condition, buckets, packing machine, computer . The

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rearing and distribution will be broken to stages to facilitate the production of high quality
fish.

5.0 FINANCIAL PLAN

It’s the financial courses of action that an entrepreneur analysis in order to achieve objectives
of the firm and also estimates the future operation of the firm in a quantitative term. Brenda
fish farming will require a total amount of kshs 500000 as its starting capital. Its pre
operation annual cost will be kshs 315450.the money will be used to purchase product
facilities, commission payment and other expense

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Table of Contents
DECLARATION.................................................................................................................................ii
DEDICATION....................................................................................................................................iii
ACKNOWLEDGEMENT..................................................................................................................iv
EXACUTIVE SUMMARY..................................................................................................................iii
CHAPTER ONE.......................................................................................................................................2
1.0 Business Description...................................................................................................................2
1.1 Business Name............................................................................................................................2
1.2BUSINESS LOCATION AND ADRESS.....................................................................................2
1.3 FORMS OF OWNERSHIP.........................................................................................................2
1.4 TYPE OF BUSINESS OWNERSHIP.........................................................................................3
1.5 PRODUCT / SERVICES.............................................................................................................3
1.6 JUSTIFICATION OF THE OPPORTUNITY.............................................................................3
1.7 INDUSTRY.................................................................................................................................3
1.8 GOALS OF THE BUSINESS.....................................................................................................4
1.8.1 ENTRY AND GROWTH STRATEGY...................................................................................4
CHAPTE TWO.................................................................................................................................5
2.0 MARKETING PLAN..................................................................................................................5
2.1 CUSTOMER...............................................................................................................................5
2.2 MARKET SHARE....................................................................................................................5
2.3 COMPETITION........................................................................................................................5
2.4 METHOD OF ADVERTISEMENT AND PROMOTION.....................................................6
2.5 PRICING STRATEGY.............................................................................................................7
2.6 SALES TACTICS......................................................................................................................7
2.7 DISTRIBUTION STRATEGY.................................................................................................8
CHAPTER THREE.........................................................................................................................9
3.0 ORGANNIZATIONAL AND MANAGEMENT PLAN.........................................................9
3.1 BUSINESS MANAGER AND QUALIFICATION.................................................................9
3.2 PERSONNEL NUMBER AND DUTIES...............................................................................10
3.3 RECRUITING, TRAINING AND PROMOTION....................................................................12
3.5 LICENSE, PERMIT AND BY LAWS...................................................................................13
3.6 SUPPORTIVE SERVICE.......................................................................................................13
CHAPTER FOUR.............................................................................................................................15
4.0 OPERATIONAL/PRODUCTION PLAN..............................................................................15

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 4.1 PRODUCTION FACILITIES AND CAPACITY.................................................................15
4.2 PRODUCTION STRATEGY.................................................................................................16
4.2.1 Raw Materials.........................................................................................................................17
4.3 PRODUCTION PROCESS.....................................................................................................17
4.4 REGULATION AFFECTING OPERATION.......................................................................18
CHAPTER FIVE...............................................................................................................................20
5.0 FINANCIAL PLAN.................................................................................................................20
5.1 PRE-OPERATIONAL COSTS..............................................................................................20
5.2. WORKING CAPITAL REQUIREMENT............................................................................21
5.2.1EXPENSES FOR FIRST MONTH......................................................................................21
5.2.2 TOTAL EXPENDITURE....................................................................................................21
5.3.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DEC 2025......23
5.3.2PROJECTED INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC 2026..............24
5.3.3 PROJECTED INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC 2027.............25
5.4 PROJECTED CASH FLOW FOR THE FIRST THREE YEARS.............................................27
5.4.1. PROJECTED INCOME STATEMENT FOR THE FIRST 3 YEARS..................................28
5.5 Performances.............................................................................................................................29
5.5.1 Proforma.................................................................................................................................29
5.6 BREAKEVEN LEVEL..............................................................................................................30
5.6.1 Total Variable Cost.................................................................................................................30
5.7 PROFITABILITY RATIO.....................................................................................................31
5.7 PROPOSED CAPITALIZATION..........................................................................................32
APPENDIX: BUDGET.....................................................................................................................32

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 CHAPTER ONE
1.0 Business Description
1.1 Business Name
Brenda Fish Farming enterprise will be the name of the business. The reason for using this
name of the business is because it is from my name. The business is proposed to commence
in January 2023 and will be a sole proprietorship with the owner as the manager of the
business. The major activity of fish farming is to offer quality fish to customers. The other
activity of the business is to create tourist attraction sites in the fish farms.

1.2BUSINESS LOCATION AND ADRESS

The business will be located at Bomet town on Koma plaza opposite KCB bank near Bomet –
Kericho Highway .The business location is well served with piped water, good road, network,
electricity and ready market.

Nearness to supply

The intended supplier will be the new marks enterprise which is situated just opposite tea
estate.

This will ensure that there is no shortage of fish in the business.

The address of the business will be

BRENDA FISH FARMING ENTERPRISE

P.O BOX 70 BOMET

MOBILE; 0708921200

1.3 FORMS OF OWNERSHIP

The business will be sole proprietorship type as a form of ownership. The owner will be the
manager of the business who will be heading the management transaction and at least 6
workers will be employed to assist the owner in running the business .The owner will enjoy
all profit made by the business and will be responsible for all the expenses and debt incurred

9
by the owner The manager will be residing at Bomet town after completing her diploma in
social work community development which she is undertaking in sot technical training
institution.

1.4 TYPE OF BUSINESS OWNERSHIP

The business will operate as a sole proprietorship. The owner of the business will be the
manager. The business intends to open its door to the public in January 2023. The business
will need the 500,000 to start. The owner will contribute kshs 300,000 to start the business
and rest from financial institution and from relatives and friends.

1.5 PRODUCT / SERVICES

Brenda fish farming enterprise falls under fish farming industries. The owner expect it to be
stable and grow at a high rate and meet customer satisfaction due to high competition in the
modernized environment .The owner intend to adopt current technology in order to increase
the demand.

The business will major produce quality fish and supply them to the nearby market.

Services

The main service of the business will be transport service.

Transport service

The manager of the business will organize for the transport of fish to customers in time.

1.6 JUSTIFICATION OF THE OPPORTUNITY

Due to increased demand of fish to people in Bomet and the fact that there are few
entrepreneurs in the sector, this has promoted the owner of brenda fish. Farming limited to
venture into the business.

There are also uncertified needs due to bad services offered to them by local people e.g. The
hawkers who walk with fish from one door to another. The owner intends to take this as an
advantage since they will sell its fresh fish to hawker’s customer in addition to their
customers. The business will also provide job opportunities to the local people

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1.7 INDUSTRY
Brenda fish farming enterprise will be entailed to offer better services to its customers. The
Brenda fish industry is not exploited by business people. The firm operates under Kenya fish
board (KFB) in Brenda are only three and there services are very poor. They use poor
technology in their operation which result in poor production

1.8 GOALS OF THE BUSINESS

The major goals of the business will be to:

 maximize its profit: the business will strive to make maximum profit and expand at
later date

 To create employment: the business intends to create employment opportunity by

employing workers to assist in the running of the business. This will raise the living
standard of people in Bomet.

 To meet customers demand, this will enable business to run faster

 To expand the business operation

1.8.1 ENTRY AND GROWTH STRATEGY

The business expects to earn more in the process, obtain large market. The business will
make sure that its production cost is law so that it is able to sell its product at affordable
prices to customer. This will lead to high competitive advantage in the market.

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 CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMER
The targeted customer will be of different categories some will be buying from the pond and
other from commercial. The main targeted customer include:-

 Domestic customer

 Institution customers

 Restaurant customer

The domestic customer will buy fish ready for consumption, some of them will buy for home
use they would mainly consist of both small fish (omena) and big fish

Institution customers

In some special occasion fish will be taken to institution, some institution offer only one type
of meal some student will buy some already mad fish to change their diet and even during
closing some student will carry fish home to their parents

Restaurant Customers

The business will be located where there are restaurant, hotels and clubs who will buy fish for
their customers

2.2 MARKET SHARE

The market is big in size and community centre has population of about 50,0000people most
of them are farmers, civil servants, office clients who offer variety of product to enable
customer to have wider choice

Advertisement of the business will be through posters, word of mouth, lecturers to student
business cards radio media, pamphlets, paper printing, press advertising.

2.3 COMPETITION
It’s so evident that the business will face competition from this competition

 Kericho fish farming

 Kisumu Ndogo fish farming

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  Londiani fish farming

The farm is located within Bomet estate and is known to be residents and so will be major
threat to the business

The second category of competition will include

Small scale business

This will include street dealers who buy from the farm directly transport it in small quantity
and sell from one place to another.

The farm intends to follow carefully the points which are the weakness of the competitors
and use them to be the advantage and overcame its competition. .It will do so by:-

 Selling high quality of fish

 Well packed fish

 Better prizing

 Offer credit facilities

 Operate from 8.000am to 5.000pm

 Sell different type of fish

2.4 METHOD OF ADVERTISEMENT AND PROMOTION

To acquire many potential customers the firms intend to use more effective advertisement,
which will include postures, and stickers the posture will be hanged on the wall of the
electricity post at strategic position in the market centre, near schools and busses
premises .this will attract the attention of passers by

Business cards, paper prints, pamphlets, will be issued to the public

The business will also employ people who will advertise though word of mouth, lecturers,
and convince them to buy from the farm

The radio and TV media advertisement will be done twice week, this will be Saturday night
and Sunday morning .this is the time when many people are in the house

The cost that will be incurred in advertising will be as follows:

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Methods cost per month

Posters……………………………….1000

Word of mouth……………………….60

Business cards………………………. 1000

Radio media…………………………..500

Pamphlets…………………………….2000

Paper printing………………………...500

Press advertising……………………..400

TOTAL……………………………… 6100

The trade show will be curried every weekend which will be convenient since many residents
are always available on weekend

The trade show will cost Kshs 2000 to 30000 per weekend while the free sampler, which will
be given to any interested customer, will cost around Kshs 500 per day

2.5 PRICING STRATEGY

The price will be variable according to the season e.g. moony day most of the fish escape and
this will lead to high price of fish .the expense which include transport, lab our, cost of raw
material and adding mark up to the profit

Competitor price will also determine the price they will sell their product and services.
Brenda fish farming intend to sell its product at lower price compared to its competitors.

The price will also be set considering then government policy and consumer income. Credit
facilities will only be given to credit worthy customer who will expected to pay at the end of
the month while discount will be allowed to customers who will buy in large quantity

2.6 SALES TACTICS

Brenda fish farming will distribute through various ways .it will use sales men to distributes
to customers in the institution ,the business will buy a second hand vehicle which will be

14
used for distribution the van will bear the business name ,the business will still use business
cards which will give full information on the sales problem to be encounter

 Delay in delivery due to traffic jam

 Competition from other farm

Brenda fish farming will overcome the problem by ensuring vehicle is on the road early
enough to avoid traffic jam. The farm will also consider the time of delivery of fish to
customers so that it does not meet the competitors. The van should be well maintained and
repair to avoid mechanical hitch

2.7 DISTRIBUTION STRATEGY

The main reason for trader to charge high prices is because of many trade links in between
the producer and the consumer. Therefore the business will sell its product directly to the
consumers and not through chain of distribution. .The attendants will ensure that product and
services are delivered appropriate to ensure appropriate selling and profit making.

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 CHAPTER THREE
3.0 ORGANNIZATIONAL AND MANAGEMENT PLAN
For smooth running of the business the farm has the following categories of personnel to
assist the farm management

 owner

 supply chain manager

 sales man

 accountant

 security

 Supervisor
Manager/Supervisor

Salesman 1 Salesman 2

Salesman 3

Security Officer

The businesses vehicle will be driven by the owner of the business to avoid the driver
expenses

3.1 BUSINESS MANAGER AND QUALIFICATION

The manager/owner

Qualification

 Diploma in supply chain management

 Basic knowledge in financial accounting

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  Good leadership qualities

 Fluent in Kiswahili and English language

 Have a good public and human relation

The duty of the general manager wills includes the following:

 Making the organization policies

 Supervising and delegating duties

 Retrenching and recruiting workers

 Preparing the budget and monitoring business system

 Supervising the day to day operational the business

 The manager will pay herself from the profit made by the business every month

3.2 PERSONNEL NUMBER AND DUTIES

The following employee will be required for the running of the business

Supply chain manager

 Diploma holder in supply chain management

 Able to carry out research

 Good management knowledge

 Good command in English and Kiswahili language

 Good public and human relation

Accountant

She will be responsible for all cash and credit transaction of the business

 Academic qualification

 Certificate in CPA IV

 Diploma holder in business management

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  Computer literate

Duties

 Handling cash transaction

 Preparing account records

 Paying all the workers

Security officer

Qualification

 Holder of at least K.C.P.E certificate

 Good communication

 Have attended a security course

Duties

 Ensure security in the farm

 Ensure peace in the business

Sales man

Qualification

 Holder of K.C.S.E certificate

 Good communicating skills

 Fluent both in English and Kiswahili

 Discipline

Supervisor

Qualification

 Knowledge in fish farming

 Above 27 years

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Duties

Control daily activity of the farm

The owner manager will be paying herself from the profit he will make

Salaries to be paid every month

Per month

Accountant…………………………………………....20000

Supervisor…………………………………………….17000

Security……………………………………………….14000

Sales man……………………………………………..1800

Manager………………………………………………27700

Total………………………………………………….37000

3.3 RECRUITING, TRAINING AND PROMOTION

Brenda fish farming will recruit its people from private sectors, training sectors and
institution... Others will be through friends and relatives. The short listed personnel will then
have to attend an interview where the successful personnel should have the ability to work
general knowledge, physical fitness and experience in smaller jobs. Their personalities will
be assessed

The successful candidate will undergo induction course and will be given information in
organization. Its product structure, services policies and rules,

job training programmers will be given to new members of staff who will be trained by other
trained people in the house or external training which will also be given to the
members .Training will be conducted through workshops ,seminars and meetings

Visit to other bigger distribution farms in Bomet and other places will be arranged for the
workers to learn more on how to improve on the farm.

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Promotion simply means rising to higher ranks or post. The business is expected to grow in
future and expand in size; more employees will be needed to assist in it. The existing staff
will be promoted depending on one’s qualification, discipline and hard work3.4
REMUNERATION AND INCENTIVES

The salary will be given depending on the group, duties and responsibilities that one does.
Salary scheme will vary from the top manager to the lower management. Salary will be paid
latest first week of the month and incase of any need of advance arrangement will be made.
Incentives like salary increment, house allowance, and free fish to each worker every evening
will be given to promote the workers morale.

3.5 LICENSE, PERMIT AND BY LAWS

The business will require trading license, registration certificate to start. It intends to obtain
license from Bomet County Government for 1 month, which is to cost Kshs. 1000 and be
registered as legal form offering fish farming. They will also register for license from the
ministry of local government and register with Kenya fish board.

The laws

The business will have laws, which must be followed by every worker.

Employees should be disciplined and ready to work.

Every employee should report to work on time.

If an employee is found corrupt, she/he will be disciplined accordingly

3.6 SUPPORTIVE SERVICE

Bank

The farm will engage all its commercial services with equity bank Bomet branch

Kenya equity bank

P.o Box 54

BOMET

Post office

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For all communication services, Kenya post bank and telecommunication cooperation will
help in the delivery, receiving of letters and telephone calls.

The Bomet branch will be used to affect the communication.

The business address will be

Brenda fish farming limited,

P.O box 70

Bomet

Insurance

The farm will take a life and asset insurance; risk coverage will be fire, theft and dishonesty
of workers. It will engage to Pan Africa insurance company Bomet branch.

Pan Africa insurance company,

P.o box 70 BOMET

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 CHAPTER FOUR
4.0 OPERATIONAL/PRODUCTION PLAN
For any business to start; it requires materials, equipment’s and facilities for the successful
running and production purposes; therefore, Brenda fish farming will need the following for
its commencement:

4.1 PRODUCTION FACILITIES AND CAPACITY

Table of equipment’s

Assets Quantity suppliers Activity Unit cost ksh Total cost ksh
Cooling 3 Kim traders Cooling fish 6000 18000
system
scratches 4 Kim’s Remove scales 500 2000
retailers
refrigerator 6 Kim dealers Keeping fish 13000 78000
fresh
Weighing 4 Kim dealers Weighing fish 300 1200
machine
Printing 1 Kim Printing 10,000 10,000
machine investment documents
Office chair 19 Tirop Sitting on 300 5700
investment
Installation 4 Win Fresh air 2000 8000
air investment
conditioner
Currying 20 Hosea Currying fish 50 1000
buckets enterprise
Packaging 1 Oywer Packing fish 1000 1000
machine investment
computer 1 Mambeya Record keeping 8000 8000
wholesaler
Polythine Many Bema shop Currying/ 1000 1000
bags packing fish
TOTAL 133,900

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Repair and maintenance

The owner of Miriam fish farming will ensure that the machines and equipment’s are served
on monthly basis by Kirwa repair limited on agreed payment. However, the workers are
advised to handle the machine and equipment with a lot of care.

4.2 PRODUCTION STRATEGY

The business will be dealing with the fish farming and selling. This will be fresh fish of
different sizes and quality. The business will require various raw materials e.g., scratches, ,
refrigerators etc. The manager expenses the raw materials since the new K.F.B supplies fish
throughout the year and in case of shortage in supply of fish, the business intends to get fish
from Sagana Fish farm.

The raw materials will be transported from local suppliers to the business via road transport
by use of van. Most of the materials will be fresh fish, which will be collected from the new
KFB.

The workers will be skilled in their various duties. For a period of one month the overhead
production expenses will be as follows

Expenses Amount (KSHs)

Salaries 37000

Electricity 3200

Water 500

Telephone 1700

Maintenance 2200

Advertisement 1500

Service charge 1050

Transport 3000

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Mislenious items 3400

Loan repayment 1500

TOTAL 55550

4.2.1 Raw Materials

ITEMS Amount (KSHs)

fingerlings 21,000

fish meal 12,000

buckets 10,000

cement for fish pond 10,800

land for construction of business lay out 18,000

TOTAL 73,000

4.3 PRODUCTION PROCESS

The following process will be followed out:

 Buying of finger lets from Kenya fish supply new branch. They will be
bought from new Kenya fish supply Sagana branch directly at 8.00 am

 Receiving- finger lets are supposed to reach latest 9.00 am and they will be
put in the pond immediately

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  Selling- the sales men will continue with selling after helping in cleaning
of stores ,receiving fish from the ponds and rearing the received ones

The manager will be driving a farm vehicle to minimize the expenses of driver. The
production of the fish will be done by sales men.

N/B The sales men will receive training on how to go on with production

Factors which may affect the production process

 Late delivery due to traffic jam. the manager will ensure that the fish reach the
premises at the right time to avoid delay of production process

 Fish storage- in case of fish shortage. the owner will ensure that fish is brought from
Victoria fish farming

 security-the business intends to employ security guard to ensure enough security

4.4 REGULATION AFFECTING OPERATION

In order to operate effectively there must be rules and order to be followed in the business.
Operation which will include:

Health regulation

The expected health condition will be followed inside the business premises. The ministry of
health requires cleanliness when one is handling food or drinks, the workers will be wearing
clean overall, hand gloves and gumboots. The business will contain proper drainage facilities
and waste dispersal. In case of sickness of workers, the business will cater for their
immediate treatment. The business will maintain high standard of cleanliness.

Safety regulation act and business rules

There will be safety rules and regulation for every worker to follow while still in the business
premises. The rule will govern a friendly atmosphere between the workers and the employer.
Every employee will know his/her line of authority.

Trademarks

A trade mark will be used to differentiate the business from other type of business.

Trade license

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For the business legality to be recognized by the government, it will have a trading license
from Bomet County Government The license will be renewed yearly.

Value added tax

This is the tax added to accommodate the business to the government... The business will
adhere to this rule by being taxed by the government.

Insurance

Each worker will be insured in case of accident while still in the business premises. The
business will also insure against damage like fire and theft.

Employment.

An agreement will be signed between the employer and the employee. The worker should be
able to know whether his terms are through a contract or permanent. In case of termination,
the employee will be given an early notice and will be told the condition under which he/she
will be sacked.

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 CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1 PRE-OPERATIONAL COSTS
The proposed manager has Kshs 500,000 which to start the business with, from this amount
Kshs 250,000 was got from selling piece of land ,Kshs 108,000 was got inform of loan from
equity bank and Kshs 142,000 was got from relatives and friends.

ITEM TOAL COST

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raw materials 73,000

small van 183,000

service charge 2,000

rent 12,000

water bill 500

banking 500

insurance 500

electricity 700

license 250

advertisement 1000

transport 2000

maintenance 1,000

telephone 1,000

salaries 37,000

TOTAL 315,450

5.2. WORKING CAPITAL REQUIREMENT

5.2.1EXPENSES FOR FIRST MONTH
Materials Cost (KSHs)

Fingerlings 21,000

Fish meal 12,000

Buckets 10,000

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 Cement for fish pond 10,800

Land for business enterprises 18,000

TOTAL 71,800

5.2.2 TOTAL EXPENDITURE

ITEM TOTAL COST

small van 183,000

services charged 2,000

rent 12,000

water bill 1500

banking 500

insurance 500

electricity 700

advertisement 1,000

transport 2,000

maintenance expenses 1,000

telephone 1,000

salaries 37,000

license 45000

250

TOTAL

272450

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30
 5.3.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DEC 2025
DETAIL JAN FEB MARC APRIL MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
H
OPENING CASH 184550 249150 329150 409050 475150 552750 629750 694850 772150 845050 907050 980450 7029100
SALES 200,000 200500 201000 201500 202500 202500 203000 203500 204000 04500 205000 205500 2248500
TOTAL CASH FLOW 384,550 449650 530150 610550 677150 755250 832750 898350 976150 1059550 1112050 1185950 9277600
SALARIES 37,000 37000 37000 37000 37000 3700 37000 37000 37000 37000 37000 37000 444000
MATERIALS 73,000 74000 75000 76000 77000 78000 79000 80000 82000 84000 85000 87000 950000
SERVICE CHARGE 2,000 1500 1000 1300 1000 500 800 1000 800 700 1000 12600
RENT 12,000 12000 1000 12000 12000 48000
WATER BILL 500 500 600 700 800 700 700 3000 1000 800 700 700 8600
LOAN 3,000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
REPAYMENT
INSURANCE 600 600 600 600 2400
ELECTRICITY 700 500 500 700 800 800 800 1000 800 1000 800 800 9200
LICENSE 600 600 600 600 2400
ADVERTISEMENT 2,000 1000 500 1000 12000 1000 500 1000 800 700 800 700 11200
MAINTANANCE 1,000 1000 1000 500 800 1000 600 800 1500 500 800 700 10200
TRANSPORT 2,000 1000 1000 500 800 1000 600 800 1500 500 800 700 11200
TELEPHONE 1,000 1000 1500 1500 2000 2000 2000 1000 2500 1000 2000 1500 19000
TOTAL CASH 135,400 120,500 121100 135400 124400 125500 137900 126200 131100 145500 131600 133200 1564800
FLOW
NET CASH 249,150 329150 409,050 475150 552,750 629750 694,850 772150 845,050 907050 980,450 1052750 7,712,800

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 5.3.2PROJECTED INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC 2026.
DETAILS JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEPT OCT NOV DEC TOTAL
Sales 200000 200500 201000 201500 202500 202500 203000 203500 204000 204500 205000 205500 2433000
cost of goods sold 73000 74000 75000 76000 77000 78000 79000 80000 84000 84000 85000 87000 950000
gross profit 127000 126000 126000 125000 124000 124000 124000 123500 120000 120500 120000 118500 1483000
expenses
salaries 37000 37000 37000 37000 37000 37000 37000 37000 37000 37000 37000 37000 444000
service charge 2000 15000 1000 1300 1000 1000 500 800 1000 8000 700 800 19800
Rent 12000 12000 12000 12000 48000
telephone 1000 1000 15000 1500 2000 2000 1000 2500 1000 2000 1000 1000 18500
water bill 500 500 600 700 800 700 700 800 1000 800 7000 800 8600
insurance 600 600 600 600 2400
electricity 700 500 500 700 800 800 800 1000 800 1000 800 1000 9200
licenses 600 600 600 600 2400
advertisement 2000 1000 500 1000 1200 1000 500 1000 800 700 800 700 11200
maintenance 1000 1000 1000 500 800 1000 600 800 1500 500 800 700 10200
transport 2000 1000 1000 500 800 1000 600 800 1500 500 800 700 11200
total expenses 59400 43500 43100 56400 44400 44500 43100 44700 44600 63700 42600 42900 578800
Net profit 67600 82500 82900 68600 79600 80000 80900 78800 75400 56800 77400 75600 904200

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 5.3.3 PROJECTED INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC 2027.
DETAILS JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEPT OCT NOV DEC TOTAL
Sales 200000 200500 201000 201500 202500 202500 203000 203500 204000 204500 205000 205500 2433000
cost of goods sold 73000 74000 75000 76000 77000 78000 79000 80000 84000 84000 85000 87000 950000
gross profit 127000 126000 126000 125000 124000 124000 124000 123500 120000 120500 120000 118500 1483000
expenses
salaries 37000 37000 37000 37000 37000 37000 37000 37000 37000 37000 37000 37000 444000
service charge 2000 15000 1000 1300 1000 1000 500 800 1000 8000 700 800 19800
Rent 12000 12000 12000 12000 48000
telephone 1000 1000 15000 1500 2000 2000 1000 2500 1000 2000 1000 1000 18500
water bill 500 500 600 700 800 700 700 800 1000 800 7000 800 8600
insurance 600 600 600 600 2400
electricity 700 500 500 700 800 800 800 1000 800 1000 800 1000 9200
licenses 600 600 600 600 2400
advertisement 2000 1000 500 1000 1200 1000 500 1000 800 700 800 700 11200
maintenance 1000 1000 1000 500 800 1000 600 800 1500 500 800 700 10200
transport 2000 1000 1000 500 800 1000 600 800 1500 500 800 700 11200
total expenses 59400 43500 43100 56400 44400 44500 43100 44700 44600 63700 42600 42900 578800
Net profit 67600 82500 82900 68600 79600 80000 80900 78800 75400 56800 77400 75600 904200

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5.4 PROJECTED CASH FLOW FOR THE FIRST THREE YEARS
DETAILS 2025 2026 2027

Beginning cash 184,550 868,250 1,819,450

Sales 2,248,500 2533000 2633000

Total cash outflow 2433050 3401250 4452450

EXPENSES

Materials 950000 960000 970000

Salaries 444000 444000 444000

Services charges 12600 17000 18000

Rent 48000 48000 48000

Water bill 8600 9000 7000

Loan repayment 36000 36000 36000

Insurance 2400 3000 3000

Electricity 9200 9500 6000

Licenses 2400 2600 2600

Advertisement 11200 12000 10000

Maintenance 10200 9000 9000

Transport 11200 11700 10000

Telephone 19000 20000 20000

TOTAL 1564800 1581800 1583600

EXPENSES

Net cash
868250 1819450 2868850

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5.4.1. PROJECTED INCOME STATEMENT FOR THE FIRST 3 YEARS

ITEM 2025 2026 2027

Sales 2433000 2676300 2943930

Purchases 950000 1045000 1149500

Gross profit 1383000 1631300 1794430

EXPENSES

Salaries 444000 444000 444000

Services 12600 18000 18000

Electricity 9200 8200 6000

Water bill 8600 9200 7000

Insurance 2400 3000 3000

Rent 48000 48000 48000

Telephone 19000 20000 20000

An advertisement 11200 9000 10000

Transport 11200 11700 10000

Licenses 2400 2600 2600

Maintenances 10200 9200 9000

TOTAL 578800 582900 577600

EXPENSES

NET PROFIT
904200 1048400 1216830

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5.5 Performances
Balance Sheet At The Beginning Of The Year

Ksh ksh

Preoperational cost 315450 owner equity 250000

Working capital 134550 loan 108000

Friends and relatives 142000

500000 500000

5.5.1 Proforma
Balance Sheet at the End of the Year Ended 31st Dec 2025

FIXED ASSETS

Machines and equipment 183000 owners’ equity 250000

Friends and relatives 142000

Current assets long term liability

Stock 950000 loan 360000

Cash at hand 184550

Total 1190200 119020

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5.6 BREAKEVEN LEVEL
5.6.1 Total Variable Cost
Service charge 2600

Telephone 19000

Water bill 8600

Electricity 9200

Advertisement 11200

Maintenance 10200

Transport 11200

Total 72000

5.6.2 Fixed Cost

Salaries 444000

Insurance 2400

Loan repayment 36000

Materials 950000

License 2400

Total 1434800

Total contribution

30
Contribution = sales –total valuable cost

=2433000-72000

= KS 2361000

Contribution margin percentage =contribution margin X100

Sales

=2361000X100

243300

=96.6%

Break area point = total fixed costX100

Contribution margin

=1434800x100

2361000

= 60.77%

5.7 PROFITABILITY RATIO

= Gross profit X 100

Sales margin

=1483000 X100

2361000

= 62.8%

Return on sales

31
 = Net profit X 100

Sales

=904200X100

2361000 =61.55%

5.7 PROPOSED CAPITALIZATION

ITEMS AMOUNT

Owner equity 250,000

Bank loan 108,000

Friends and relatives 142,000

TOTAL 500,000

TYPING 400 400

PRINTNG 400 400

BINDING 50 50

TOTAL 1870 1870

APPENDIX: BUDGET

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