NAME OF BUSINESS : WAMBO’S GROCERY

TITLE OF THE DOCUMENT : BUSINESS PLAN

CANDIDATES NAME : KUNG’U WAMBUI
MARY
COURSE TITLE : DIPLOMA IN CATERING
AND ACCOMMODATION
MANAGEMENT
INDEX NUMBER : 2371010504
NAME OF INSTITUTION : MATHENGE
TECHNICAL INSTITUTE
PRESENTED TO : THE KENYA NATIONAL
EXAMINATION
COUNCIL.
SUPERVISOR : MADAM ELIZABETH.
PRESENTATION DATE : 21ST SEPTEMBER 2021.
TABLE OF CONTENTS
Declaration
Acknowledgement
Dedication
Executive summary
1. Chapter one
1.1. Business description
1.2. Name of the business
1.3. Business location
1.4. Form of business ownership
1.5. Type of business
1.6. Product or service
1.7. Justification of business opportunity
1.8. Industry
1.9. Business goals
1.10. Entry and growth strategy
2. Chapter two
2.1. Marketing plan
2.2. Potential customer
2.3. Market share
2.4. Completion
2.5. Advertising and promotion
2.6. Pricing strategy
2.7. Sales tactics
2.8. Distribution
3. Chapter three
3.1. Organizing and marketing plan
3.2. Management team
3.3. Other personnel
3.4. Recruitment, training and promotion
3.5. Remuneration and incentives
3.6. Licenses and permits
3.7. Supportive services
4. Chapter four
4.1. Production plan
4.2. Production facilities and capacities
4.3. Production strategy
4.4. Production process
4.5. Regulation affecting the business
5. Chapter five
5.1. Financial plan
5.2. Pre-operational cost
5.3. Pre-form A balance sheet
5.4. Working capital
DECLARATION

I declare that this project is my original idea. It has never been presented to the Kenya national
examination council as the award there before.

Candidate name: ____________________ Date: ___________________

Index: _____________________________

Signature: __________________________

Name of supervisor: __________________

Signature: ____________________

OBJECTIVES

a) To make profit.
b) To meet customers satisfaction.
c) To create job opportunities.
ACKNOWLEDGEMENT

I would like to take this opportunity to give a vote of thanks to all those who assisted in the
project to make it successful. First I give thanks to Madam Elizabeth who worked hard to ensure
that is well written and also by giving me ideas.
DEDICATION

I dedicate this plan to my beloved parents; Mr. & Mrs. Kung’u, my sibling, my best friend John
and my fellow classmates who enabled and assisted me in the completion of this diploma course.

Many thanks and I really appreciate the support.

 EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION.

The proposed name of the business will be WAMBO’S GREEN GROCERIES. The business
aims at giving quality products in the local industry. The business is a solo proprietorship form
of a business owned by Mary Kungu and hoping to be a pioneer in production in quality and
standard products and it’s located in Nyandarua County.

2.0 MARKETING PLAN.

the proposed business marketing plans involves of the modern techniques in the market to ensure
it encounters all the hindrances in the business the market involves four main competitors in the
market to the proposed business.

3.0 ORGANIZATION AND MANAGEMENT.

The business will be managed by a manager helped by an assistant manager who will be
appointed by the owner of the business. The business will acquire the relevant documents to
ensure that the business runs smoothly.

4.0 OPERATION PRODUCTION PLAN.

The expenses incurred will be funded by the owner of the business. All the problems involved in
the production sector will be solved to ensure that it does not persist.

5.0 FINANCIAL PLAN.

All the expenses and income will be filled to ensure that information will be used in future to
determine whether the business is making profit.

TITLE: WAMBO’S GREEN GROCERIES

Objectives;

a) To make profit.
b) To meet customers satisfaction.
c) To create job opportunities.
1.0 BUSINESS DESCRIPTION

The proposed business enterprise will be called Wambo’s green grocery.it will be situated
adjacent to main stage about 200 meters off Nyahururu-Nairobi highway in Nyahururu town in
Laikipia county.Wambo’s green grocery will commence its operation on 30th august 2022 as a
sole proprietorship,business owened by Mary Wambui. The enterprise will offer shop services
to customers at fair justified and profitable profits. The business aim at utilization of resources
and creation of employment.
1.1 NAME OF THE BUSINESS.

The prepared business will be shop kind of an outlet in Nyahururu. The name was derived from
kikutu word which means working other excellent character where generous is pronounced. The
business will be as unique of its own kind and fairness in provision of services that enhance
impressive in size and appearance and standardized services will bring new impressing
perception of good experience to the public.

The addresses of the business are:

Telephone No.: 0702745402

Email: marywkungu98@gmail.com.

1.2 BUSINESS LOCATION

Wambo’s green grocery will be in Nyahururu town it’s also known that Nyahururu is one of the
most growing towns that is doing well in business. The shop is situated along Nyahururu-nairobi
highway, Ngilu Street, Imenti house second floor room 187.
Nairobi road ↑ Ol Kalou road
→ →
↓ ↓
Wa D Grocery Nyahururu town
Nakuru Wambo’s Green Grocery
road Shop
Equity bank

1.3 FORM OF BUSINESS OWNERSHIP

The business will be registered as a sole proprietorship enterprise owned by Mary Wambui who
will be working as a business operator manager to proprietor who will handle the managerial
responsibilities herself and will be the final decision maker. The manager will employ a team
who will be well skilled and well-motivated staff to help in execution of duties for a proper
accomplishment of laid down strategies.

1.4 TYPE OF BUSINESS

The proposed enterprise will fall under the whole selling. The majority will be involved and
hygienically processing raw materials from the distributor. The types of goods include; carrots,
cucumbers, onions, dhania ,ginger, green pepper, shallots, potatoes, tomatoes, cabbage, kales,
spinach, red pepper, yellow pepper, courgettes, garlic, green maize, kunde leaves, passion fruits,
avocados, apples, French beans, grapes, pumpkins, lemons, raw bananas, peas, water lemon, ripe
bananas, sweet potatoes and many others will be available.
The proprietors decided to choose the above type of business and not others due to modern
methods of food preservation and its an easy technique of food preservation.

1.5 PRODUCTS AND SERVICES

1.5.1 PRODUCTS

The business will have to give fresh goods to the customer which has unique features from the
product. The goods are expected to be ever fresh and clean. The goods are expected to be of
good level of maturity. The package to customers with no rotten smell or any bite mark by
insects.

1.5.2 SERVICES

The manager being of goods production, sale control certificate and ensure a high standard of
hygiene and satisfaction will be observed and accuracy services to the customer is maintained.
Well trained personnel will ensure that all customers expected have achieved their satisfaction
are expected.

1.6 JUSTIFICATION OF BUSINESS OPPORTUNITY

Wambo’s green grocery will be able to monopolize the market due to other competitors. The
proprietor research identified a trend that no similar employments are either located by the
business. The fact that the business will be offering some new products in the shop whose need
have been there but not satisfied will boost the survival of enterprise creation and awareness to
other. Prospective customers whose needs are catered by provision of fairly priced items.
Availability of banking will offer financial security to the enterprise hence survival of Wambo’s
green grocery.

1.7INDUSTRY
the proposed business belongs to hospitality industry the main purpose of business enterprise
will be good processing outlet under this industry to play another in the provision of excellently
and hygienically good products. Advanced of technology it has improved storage of goods that
are required in the industry in high rate. They cannot be imported due to shortage of lifespan of
the goods which cannot be kept for a long period. The competition sector of goods to the
customers will be low due to interacting with new enrolment and meeting new customers in the
business.

1.8 BUSINESS GOALS

1.8.1 SHORT TERM GOAL

Among the intentions of Wambo’s green grocery is to be used the entire proprietor financial and
non-financial resource to be able to provide service that will satisfy our customers making profits
and open other branches. It also aims at adding more customers, make profits, add more stock for
business. It entails also to train and develop a well-motivated work force that will offer high
quality service in order to attract and retain customer hence maximization of profit.
1.8.2 LONG TERM GOAL

It aims at creating employment for proprietor and other member of all public according to work
force demanding of the business as well as improving their economic states.

1.9 ENTRY AND GROWTH STRATEGY

1.9.1 ENTRY STRATEGY

The business will have to use the unique products and service to attract more and new customers
to the business by providing the customer with the transportation and package of their goods
after buying and help them reach their goods at their work place or home safely.

1.9.2 GROWTH STRATEGY

The business owner is optimistic about making profit hence generating more funds for the
diversification of the business enterprise. The entrepreneur intends to initiate a chain of good
outlet along Olkalou, Subukia, Nakuru and through Nyahururu town. The manager’s vision is to
establish the first growing town like Ol Kalou town, and intends to advance his skills by taking
different graduates like in business management and ICT in order to meet the challenging
demands of the business.
 CHAPTER TWO
2.0 MARKETING PLAN

2.1 POTENTIAL CUSTOMERS

Recognition of Nyahururu town as the most resting or stopping point for passenger buses,
business men, and personal vehicle will guarantee ready market for business service. The
business will offer services to institutional and domestic customers who reside in vanity of town.
The business will consider the values and the benefits of the customers and also give the
customers the freedom to be served every day and every time.

2.2 MARKET SHARE

The population that will be targeted by the business will be 70% the overall population of the
business location is about 35,000/= where the business takes the largest share due to its potential
of serving customer with best product and services.

Competitor No. of customers Market share%

Wambo’s green grocery 190,000 26.7%
Wa D’S green grocery 150,000 8.14%
Mwangi’s green grocery 100,000 24.84%
Kens green grocery 70,000 15.00%
Total 510,000 75.00%

2.3 COMPETITION

The advantage that my business is having is that my products are a high quality and quantity and
the green grocery is at the center of the town and Nyahururu town is densely populated I allow
customers to take goods on discount. The overall strength of the business has a qualified staff
that opens the premise early for customers. The weakness is that doe to large load of work they
receive, the firm never makes to deliver its products in good time.

STRENGTH AND WEAKNESS OF COMPETITORS

COMPETITORS STRENGH WEAKNESS

Wa D’s green grocery Sells variety of goods Poor customer relations.
Large capital base. Poor means of advertising.
Ken’s green grocery Good skill of management. High price.
Large number of employees. Low quality products.

Mwangi’s green grocery Sells variety of goods. Have financial challenges.

Good customer services. Few workings hours.
The business will take advantage of the competitors, weakness and make them its strength by;

a) Ensuring proper control of its products and workers.

b) Employing the high skilled workers.
c) Ensuring good management.

2.4 ADVERTISING AND PROMOTION

2.4.1 ADVERTISING

Wambo’s green grocery will advertise its goods through posters, online advertisement,
newspapers and billboard will be displayed in strategic location to portray different kind of
services that will be offered. The business will use 15% of its profit to make advertisement it
requires the easy language that will be understood by customers.

2.4.2 PROMOTION

The promotion strategy will be giving free samples to the customers in order for them to taste
our products and this will make them decide whether to do business with Wambo’s green
grocery it will entail buying and selling of goods .if the customers will have bought large amount
of product the business will offer free transportation to their respective places.

2.5 PRICING STRATEGY

There are dozens of pricing models that can help to set a right price for customers and revenue
goals and the maximum profit and shareholder value while considering customers and market
demand. Price of the services that the business will not be constant due to various circumstances
.availability of the products how often a buyer buys from a hotel and also payment duration.

2.6 SALES TACTICS

The goods will be displayed in bill board where customers will be choosing from salesmanship
method on sale of the product to the customers .the person will be trained to be able to enhance
their abilities in getting more sales. They will be motivating them by increasing their salaries.

2.7 DISTRIBUTION

Wambo’s green grocery will distribute goods and products from wholesalers to customers and
retailers.

Producer →customer

Producer →retailer

Those where customers come directly to the premise and carry their order, customer who carry
their purchase in bulk in offered offer sales service e.g. free delivery the enterprise has a plan to
expand its distribution channel in future as it grows.
 CHAPTER THREE
3.0 ORGANISING AND MARKETING PLAN

MANAGEMENT TEAM

My proposed business( Wambo’s green grocery) will require eight[8] staff who will assist in
smooth running and represents the business .the staff include human resource manager,
managing director, cashier, finance manager and two sales representatives.

3.1.1 DUTIES AND RESPONSIBILITIES OF A MANAGER

Wambo’s green grocery will be a sole proprietorship. I will be the supervisor in charge of overall
activities in the Wambo’s green grocery.

Qualifications of a manager

Having a diploma in food and beverage. This makes me to qualify as a sole proprietorship to my
business in addition to that I have three years’ experience in the market/business where I worked
and gained more experience on how to run and organization and to work towards achieving and
producing good products.

3.1.2 DUTIES AND RESPONSIBILITIES OF A CASHIER

Is in charge of keeping money and preparing financial statement for business account.

Qualification of a finance manager

Must have the knowledge of using computer, must be a Kenyan citizen aged above 25 years
he/she should be a person who can work without supervision and should have a 3 year
experience.

3.1.3 DUTIES AND RESPONSIBILITIES OF A MARKETING MANAGER

The marketing manager is in charge of advertising and identifying new products in market.

Qualifications of a marketing manager

Must have a diploma in sales and marketing from certified institution must have a work
experience with similar organization for a period not less than 3years.
3.2 OTHER PERSONEL

These are employees who are in my business but not included in the management team.

Position No. of Personnel Qualifications Duties

Cleaners Should be responsible Should be responsible The cleaners role will be

cleaning the premises.

Watchmen Should be above 30 Should be above 30 To ensure the premises

years years are safe and free from
thieves.

Sales Should be literate Should be literate To represent the business

representatives in business meeting and
business occasion.

ORGANISATION CHART

MANAGER

ASSISTANT
MANAGER

FINANCE
MANAGER

SALES
MANAGER

SECURITY
CASHIER CLEANERS
OFFICERS

3.3 RECRUITMENT, TRAINING AND PROMOTION.

3.3.1 RECRUITMENT

The process of searching prospective employer stimulating them to apply for jobs at Wambo’s
green grocery shop will be done through interviews. The post will be through posters and
regional newspapers [TAIFA LEO], and interested candidate will be required to apply in their
own handwriting and enclose copies of detailed curriculum vitae.
3.3.2 TRAINING

The induction will be given to the few employed and those few non-staff; the main purpose of
training is to make staff gain more knowledge according to their work and also motivates the
staff of working on their duties.

3.3.3 PROMOTIONS

Promotions of employees will be academic merit, experience and competence of diversification

of operation to new opened branches .promotion will be guaranteed to employees with good
performance record accompanied by increment in salaries and benefits will motivate to increase
commitment to the employee in the business for the hard workers employee they will also be
considered during the promotion.

3.4 RENUMERATION AND INCENTIVES

3.4.1 RENUMERATION

The business will intend to adopt fairest method in order to motivate the employees and increase
productivity and efficiency. The basic salaries to be paid will be determined by salaries
formulated by the establishment this also varies according to job group which will be determined
by professional and experience of the employee current labor market rate.

Personnel No. of employees Monthly Allowances Salary per year

required salary[Ksh.] House allowances

Accountant 2 12,500 2000 174,000

Cleaner 3 10,200 2000 48,800

Watchmen 1 13,100 2000 52,400

3.4 INCENTIVES

Wambo’s green grocery will have to motivate its personnel by sufficient more benefit other basic
salary to be offered to start. The offering criteria benefits package will be depending on the level
of employee in the organization. Apart from basic salary other benefits will include payment of
any overtime. House allowance payment of commission, allowance and meals of subsidized rate,
transport allowance and holding of occasions and training her employees.

3.5 LICENSE AND PERMITS

3.5.1 LICENCES

In order the business enterprise to get authority to operate it will obtain trade license from the
ministry of county government of Nyandarua it will be an indicator that the business is permitted
to carry on with all activities
3.5.2 PERMITS

The business will acquire permits are required by the county government, the permit will be
approval of trade name and give authority to run the business by the minister of health.

3.5.3 BY-LAWS

For the business will operate its premises it will have to meet the entire health requirement
according to the public act cap 208 By law of Kenya will also require the business to meet safety
and building regulation allowing sufficient space for workers in working areas .selling goods of
good health having fire exit doors and extinguishing in the business rooms and corridors.

3.6 SUPPORTIVE SERVICES

The business shall require support service such as bank, insurance services, legal service and
consulting services for proper running of business activities

3.6.1 BANKING SERVICES

The manager will open a saving account with the equity bank, Nyahururu branch where the daily
sales will be deposited by the accountant clerk, recently installed pesa point unit in the town will
also include withdrawal of cash whenever needs arise.

3.6.2 INSURANCE SERVICES.

For the business to be brought back to its original operational state in case of any loss. The
manager will ensure the hotel against fire, theft and terrorism.

3.6.3 CONSULTING SERVICES

Seeking advice from fellow green grower’s owners and the food and beverage managers to
enable production of quality products leading to frequent customer turnover.

3.6.4 LEGAL SERVICES

Legal services will be required when drafting contracts, legal letters, interpreting labor, laws and
employment. The firm that will offer those services will be John Nehaus and co-advocates.
 CHAPTER FOUR
4.0 PRODUCTION PLAN

4.1 PRODUCTION FACILITIES AND CAPACITIES

4.1.1 EQUIPMENT AND MACHINES

The business will open depending on the daily operation .the business will need to have all
equipment that will help in business growth, like refrigerator, weighing scale and much other
equipment needed in business, some machine will require repair and maintenance like pick up it
will be taken to Nyahururu Mteja garage. The Shell petrol for services.

Item (Equipment Quantity Cost per item Total cost

description) required

Weighing scale 3 1500 80kg

Refrigerator 2 3000 Medium

Store 1 70,000 Medium

Pick up 1 190,000 3000 tones

Knives 5 150 assorted

GRAND TOTAL

The refrigerator will be repaired by the electrician and the blenders.

4.1.2 WORKSHOP LAYOUT

The business will be on the 2nd floor of the Imenti house.

PLANNING

PURCHASING

RECEIVING

STORING AND ISSUING

SELLING

ACCOUNTANT

CONTROLLING

4.1.3 OTHER FIXED ASSETS

Serial No. Fixed Asset Cost

Tables 20 120,000

Chairs 150 125,000

Computers 4 100,000

Vehicles 2 600,000

Mixers 2 30,000

fridge 4 80,000
4.2 PRODUCTION STRATEGY

4.2.1 PRODUCTION DESIGN

The enterprise entails to provide goods, services and products to the customers, providing packed
goods to customer for easy transportation. The enterprise will have modern technology like
preserving goods using refrigerators, using skilled workers to the business. The manager will
gather information from other enterprises and customers taste and preferences and products that
are of high quality and quantity.

4.2.2 TACTICS TO BE USED IN PRODUCTION.

For the business to make its production successful, it will require skilled workers who will have
the skills in all departments. The storekeeper should be able to maintain store and keep it clean
and well-arranged and well labeled to avoid confusion. The duty roster should be in the
enterprise for it to manage every worker in their respective departments and they have to
minimize wastage in the enterprise.

4.2.3 MONTHLY MATERIAL REQUIREMENT

QUANTITY REQUIRED
MATERIAL (1week×4weeks) UNIT COST TOTAL COST

Potatoes 5sacks per week 800 120,000

Kales 7weeks per week 500 10,000

Cabbage 100kg per week ×3 150 15,000

Onions 10kg per week ×3 70 2,100

Shallots 90kg per week ×3 60 16,000

Spinach 50kg per week ×3 50 7,500

Raw banana 10 bun per week ×3 300 9,000

Mangoes 90kg per week ×3 900 900

Cucumbers 100kg per week ×3 40 12,000

Grand total

The total above contains the material required in each month. The goods will not be expected to
be through the year.
The business will be expecting the seasonal goods and the customers are expected to be informed
about the seasonal goods and will be in storage because the manager will be expected to go for a
long distance for the small portion available to the customer.

4.2.4 MONTHLY LABOUR COST

Description Level of skill No. of personnel Salary per head Total

Manager Diploma 1 20,000 20,000

Supervisor Diploma 2 15,000 30,000

Account clerk Diploma 1 10,000 10,000

Cleaner Certificate 4 5,000 5,000

Security Certificate 2 1,000 1,000

Grand total 46,000

4.2.5 MONTHLY TOTAL OVERHEADS

Expenses(Overhead) Total

Electricity 20,000

Water bills 10,000

License & permits 5,000

Fuel 5,000

total 40,000
4.2.6 MONTHLY PRODUCTION COST

Production cost Total (Ksh)

Monthly material cost 80,000

Monthly labor cost 100,000

Monthly total overhead 400,000

total 580,000

4.3 PRODUCTION PROCESS

The business will ensure goods received will be of good quality and quantity. The enterprise will
ensure that the production tasting yield purchase specification method of buying to enhance
smooth operation of the business and minimize the chance of low production due to poor quality
goods. The receiving process of goods will also include counting, weighing and checking on size
and the quality of goods. This process will be done by the accounts clerk. The business manager
will manage the medium size storing units that will be kept at the required standard regarding
hygiene and organization in order to ensure goods received are kept safe thus keeping control of
material cost.

4.4 REGULATIONS AFFECTING THE BUSINESS

4.4.1 HEALTH REGULATIONS

The business should be able to provide the workers with good working area with a good
ventilation for their safety. The sanitation and waste disposal area should be able to be in good
condition to ensure clean environment for hygiene.

4.4.2 SAFETY REGULATIONS

The business will have to provide safety signs all-round the establishment concerning the
workers against dangerous point the aid kits will be allocated and fire extinguishers in case of
any fire or any accident occurred. The first aid kit will be used. The business will also ensure
regular services and maintenance of its equipment to reduce the chances of being in risk.

4.4.3 BY-LAWS

These are the laws for the business green grocery to operate its premise. It has to meet the entire
health requirement according to public act cap 209. The workers will require meeting safety and
building regulation by having fire exit doors and allow sufficient space for workers.
4.4.4 TAXES

The percentage of total income which will include VAT on yearly basis.

15% of the total income

⁄ ×20,000=3,000
 CHAPTER FIVE
5.0 FINANCIAL PLAN

The manager of the business will make sure that capital have been maintained and also expenses
will be controlled correctly. The business will also ensure effective accounting system so that it
will be able to know the losses and gaining.

OBJECTIVES OF FINANCIAL

i. Maintain and control expenses.

ii. Maintain an effective accosting system.
iii. Realize steady growth on income throughout the period.
iv. Maintain a healthy liquidity position through the trading period.

5.1 PRE-OPERATIONAL COST

ITEMS COST

Opening stock 900,000

Machine and equipment 200,000

Rent deposit 40,000

Machine installation 85,000

Licenses 20,000

Furniture and tiltings 70,000

Transport 100,000

Computers 35000

Grand total 1,450,000

5.2 PRE-FORMA BALANCE SHEET

Balance sheet as at 31st December 2021

Asset(Fixed) Ksh

Building 20,000

Land 10,000

Vehicle 300,000

Less depreciation 30,000

Furniture and fittings 5,000

Less depreciation 50,000

TOTAL 315,000

CURRENT ASSET

Stock 300,000

Cash at bank 30,000

Cash at hand 10,000

Debtors 5,000

Pre-payment 200

total 345,200

LESS CURRENT LIABILIY

Creditors 30,000

Accruals 10,000

Working capital 305,200

Financed by;

Opening capital 300,000

Add net profit 10,000

Less drawing 50,000

Closing capital 20,000

Loans 10,000

TOTAL 595,200

WORKING CAPITAL

Current assets – current liabilities

CURRENT ASSETS

Cash at hand 300,000

Cash at bank 400,000

Debtors 500,000

Stock 600,000

total 1,800,000

LESS CURRENT LIABILITY

Creditors 10,000

Bank overdraft 20,000

Accruals 50,000

total 80,000

Working capital=current assets - current liabilities

=1,800,000 -80,000

1,720,000/=