BUSINESS PLAN

TITLE : POKI CONCRETE LIMITED COMPANY

PRESENTED BY : PAUL OMONDI ODHIAMBO

COURSE CODE : 2705

INDEX : 7141020

SUPERVISOR : MR. BRUCE

INSITUTION. : SEME TECHNICAL AND VOCATIONAL COLLEGE

PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL

FOR AWARD OF DIPLOMA IN BUILDING TECHNOLOGY.

EXAM SERIES: JULY 2025

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 DECLARATION

I declare that this is my original work from my own research and studies and that it has never been
submitted in any institution for any examination purposes.

NAME: PAUL OMONDI ODHIAMBO

SIGNATURE: ________________________.

DATE: _______________________________

SUPERVISOR:

NAME: MR. BRUCE

SIGNATURE …………………………………………

DATE …………………………………………………..

DEDICATION

I dedicate this work to my mother MRS PAMELA OMONDI for her support and my friends for moral,
financial and material support throughout my entire education and especially during the time I was
carrying out this project, May God bless you all.

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 ACKNOWLEDGEMENT

I would like to acknowledge my supervisor, MR. BRUCE who guided me throughout this project. I
would also like to acknowledge my entire family for their love. Above all I would like to acknowledge
God Almighty for the gift of life and sustainability without which I would have been nothing, glory be
to His name.

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 TABLE OF CONTENTS

DECLARATION........................................................................................................................i

DEDICATION...........................................................................................................................ii

ACKNOWLEDGEMENT........................................................................................................iii

TABLE OF CONTENTS..........................................................................................................iv

CHAPTER ONE........................................................................................................................1

EXECUTIVE SUMMARY........................................................................................................1

CHAPTER TWO.......................................................................................................................3

BUSINESS DESCRIPTION......................................................................................................3

2.1 Background of the Owner................................................................................................3

2.2 Business Name.................................................................................................................3

2.3 Business Location and Address........................................................................................3

2.4 Form of Business Ownership...........................................................................................4

2.5 Type of Business..............................................................................................................4

2.6 Product and Services........................................................................................................5

2.7 Justification of Opportunity..............................................................................................6

2.8 Industry.............................................................................................................................6

2.9 Goals for the Business......................................................................................................6

2.10 Entry and Growth...........................................................................................................6

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CHAPTER THREE....................................................................................................................7

MARKETING PLAN................................................................................................................7

3.1 Customers.........................................................................................................................7

3.2 Market Share....................................................................................................................7

3.3 Competition......................................................................................................................8

3.4 Pricing Strategy................................................................................................................9

3.5 Sale Tactics...................................................................................................................9

3.6 Promotion and Advertisement..........................................................................................9

3.7 Distribution Strategy...................................................................................................10

CHAPTER FOUR....................................................................................................................10

OPERATION PLAN................................................................................................................10

4.1 Production Facilities and Capacities..............................................................................10

4.2 Repair and Maintenance.................................................................................................11

4.3 Spare parts Supplier of Ferdy Survey.............................................................................11

4.4 Production Input.............................................................................................................11

4.5 Production Strategies......................................................................................................12

4.6 Labour requirement........................................................................................................12

4.7 Regulation Affecting Production....................................................................................12

CHAPTER FIVE......................................................................................................................13

ORGANIZATION PLAN........................................................................................................13

5.1 Organizational Structure.................................................................................................13

5.3 Recruitment, Training and Promotion............................................................................14

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 5.4 Remuneration and Incentives.........................................................................................15

5.5 Licenses, Permits and By-Laws.....................................................................................15

CHAPTER SIX........................................................................................................................16

FINANCIAL PLAN.................................................................................................................16

6.1 Pre-Operational...............................................................................................................16

6.2 Projected Cash Flow Statement for Nasije Surveys and Consultant Limited................17

6.3 Profoma Income Statement............................................................................................18

6.4 Proforma Balance Sheet.................................................................................................19

6.6 Break-Even Point............................................................................................................21

6.5 Calculation of Break-Even Point....................................................................................21

6.6 Calculation of Profitability Ratios..................................................................................24

REFERENCES.........................................................................................................................26

APPENDIX..............................................................................................................................27

MILESTONE SCHEDULE.....................................................................................................27

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 EXECUTIVE SUMMARY

The business shall operate by the name PAUL general contracting Ltd meaning it will offer all
Construction related services, using modern construction techniques. It will be a sole proprietorship
form of business owned by PAUL Omondi currently pursuing a Diploma course in building and
construction at The Seme technical and vocational college . The business will be located in Kisian town.
The business will commence on 3rd April 2025. It will be intending to enter in the market to provide stiff
competition to the already existing construction firms by offering high quality construction services
using the most modern techniques of construction. The business is going to enter the market having
adopted the use of modern techniques to outdo the competitors and satisfy its customer’s needs... The
reason of venturing in this kind of business is due to existing settlement schemes such as Koru and
Obambo which requires sub-division, the proposed construction Makasembo phase 2 affordable
housing and the demand of Engineering services in the area which require the construction services The
times will take the above demand as its opportunity and work to improve in its areas of weakness such
as lack of enough man power and capital to start up construction firms in the area. Its customers will be
individual land owners, non-governmental organizations, government institutions and private
developers. It will face stiff competition from MONKS DEVELOPER concrete works and Arc-constructors
which are already in the market but still use convectional method of construction techniques.
The firm will be operated by PAUL Omondi as the Manager, Assistant Manager and other junior
surveyors. It will operate from Monday to Saturday starting from 0800– 1700hrs. The firm will be
registered as per government requirement and abide by Survey Regulation Acts of Kenya 2012. The
starting capital of the firm will be 1,500,000 only which will be from personal savings, loan and donation
from friends. It will raise capital from its services as it undergoes expansion.

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 CHAPTER ONE
1.0 BUSINESS DESCRIPTION

1.1 BUSINESS NAME

The business intends to start come the year 2025 will be named POKI CONCRETE
WORKS its simple and can be easily interpreted and also attractive, the name simply
translates to PAUL OMONDI KISIAN CONCRETE WORKS.

LOCATION AND ADDRESS

The business will be located in Kisian town along Kisian-Kisumu highway, opposite to Ushindi
Hardware
.
POKI CONCRETE WORKS,
KISIAN
TELEPHONE NO.0743749208
Email: paul2021omondi@gmail.com

VISSION AND MISSION

VISION
To become the customer’s most preferred choice by attaining excellence in quality.

MISSION
To create long-term shareholder value by providing safe and sustainable engineering,
construction and service skills to customers for whom quality, efficiency and reliability are
critical.

1.2 FORM OF BUSINESS OWNERSHIP

The business will be a sole proprietorship of which the owner will be the manager taking full
control in the operation of the business. This therefore gives the following merits to the business
in its operations;

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 There will be direct customers contact and public exposure which will be a prime
importance to the business.
 The owner will enjoy job security thus there’s continued income and profit.
 The owner will enjoy freedom and independence from the control of others in making final
decision.
 All profit from the business will be entirely under the owners control as well as the firm’s
management.

1.3 TYPE OF A BUSINESS
The firm will mainly deal with construction services they include precast pavements, bridges,
culverts, beams, wall panels.
1.4 PRODUCT AND SERVICE
The firm will be offering services that are related to construction work and in regard to the
clients.
1.5 TYPE OF A BUSINESS
The firm will deal mainly with provision of construction services.
1.6 PRODUCT AND SERVICES
The firm will be offering services that are related to work and in regard to the clients,
requirements and specification. The following construction services will be offered:
I. Billing cost and qualification: This will involve prediction and approximate cost
estimation for the design that the client will enquire.
II. Engineering surveys: This will involve surveys that consists of setting out buildings,
roads, railways and bridges that require accuracy of higher order to establish control
points to be used in construction.
III. Construction designing: This will involve the designing of the most suitable
structures that meets the NCA’s requirements and that also meet the client’s
specification.
IV. Auto CAD services: The firm will offer auto CAD services to the engineer’s
surveyors and planners who might require data that is in soft copy for either
manipulation of presentation in digital form.
V. Construction related consultations: The firm will offer advisory services regarding to
its customer at any affordable prices.
1.7 JUSTIFICATION OF OPPORTUNITY.
The reason for the firm to engage in construction business is due to research the owner
conducted and found that the current market in the area lack the latest construction technology
and the one that are available lack adequate designing skill and modern construction techniques.

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Private firms and district construction officers concentrate only in offering outdated construction
services since they only specialized in one type of construction designs. Thus it will be an
opportunity for POKI concreate workers to try expanding its construction services to outdo them.
The area has so many settlement areas e.g.: Kisian referral hospital, Kisian KMTC and Lung’a
settlement areas that requires subdivision to resettle people thus the need to open a construction
firm. Hostels under construction for KMTC students.
1.8 INDUSTRY
The business will fail under geo-informatics industry as it will offer surveying and mapping of
services under modern technology that is now developing and used in the current. The industry
will be boosted by engineers and physical planners who will rely on this industry for the services
that will assist them in their operation. The firm will adopt the use of surveying software such as
Auto CAD and Arch CAD to attracts its major customers within the outside industry.

GOALS FOR THE BUSINNESS

1.1 BUSINESS GOALS
1.1.1 Shortcomings
The business will employ workers from nearby community to assist in mixing
the cement, sand and ballast in proposed ration and assist in production by
operating machines.
To building and nature customers relationship hence increase sales
To collaborate with my team to brainstorm new ideas for development of the
business

1.1.2 Long Term objectives

There will be need to achieve long lasting goal tile marketing in areas such as
promotion processing and distribution and sales
Operations targets like automatic products line to reduce unit cost
To enhance technological, know how to increase specifications for increased
output and quality.

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ENTRY AND GROWTH
1.1.3 Entry Strategy
The existence of the enterprise will be brought to the customer’s attention
through:
I. Bill boards.
II. Online advertising.

1.1.4 Growth Strategy

To ensure business growth there will be the need to install and enhance
mechanization process in order to stimulate production of high quality products
as per the standard required.
There will be use of sophiscated machines to increase production like
 Modern tilting drum
 Fined finished molding material.

CHAPTER TWO

MARKETING PLAN
2.1 CUSTOMERS.
From the research carried out the firm is likely to attract many potential customers locally and
country wide.

2.2 Individuals Customers

Personal building construction within the area and areas around Kisian town will purchase the
products for their building purposes since I will be offering free delivery to customers within the
town.

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2.3 Institutional Customers
The nearby institution i.e. Kisian KMTC will come to order products for their ongoing hostel
construction and also benefits students from Kisian institute of science and Technology by
offering attachments to students taking building and civil engineering course.
2.2 COMPETITION
The business will face stiff competition from already stablished firms like Otundo brick, stone
industry and spring concrete ventures

NAME STRENGH WEAKNESS

OTUNDO BRICK Has a good location High pricing
STONE INDUSTRY Good management Lack of skilled labor
Purchase transport facilities
SPRING Frequent advertisement High pricing
CONCRETE Inadequate capital
VENTURES
POKICONCRETE Availability of man power Relative low profit margins
WORK Availability of materials Slow decision making
Availability of ready market

2.3 MARKET SHARE

POKI concrete works will operate in an area of larger population of about the two main
enterprise currently operating in the area.

NO. VENTURE TOTAL PERCENTAGE %

1 POKI 28,600 58
2 Otundo 13,800 28
3 Spring Concrete 10,400 1

My proposed venture will be recovering more customers unlike the other venture due to;
*Proper packaging and sorting.
*Transport services to customers.
The pie chart below represent the market share.

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Majengo concrete Work will be operating in an area of a larger population of
about 30,500 people. The two main enterprises currently operating in this
area are:

No. Ventures Total %

1. POKI 28600 55
2. SPRING CONCRETE 13800 23
3. OTUNDO 10400 19

Spring concrete company

Otundo Production Company
My proposed venture will be receiving more customers since unlike the other
ventures;
It will offer after sale services like:
 Transport services to its customers.
 Proper Packaging.
 Free loading and offloading.
The pie chart below gives a clearer picture of the market shares.

PAUL's Productions Plan

0.01; 1% Concrete Production

Brick Production
0.23; 29%
Dressed Stones

0.55; 70%

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2.4 Pricing Strategy.
The business will employ a demand oriented method while pricing its service whereby, when the
demand of a service goes up the business also tend to raise the prices and when the demand goes
down then the prices will also be reduced.
2.5 Sale Tactics.
The business will employ direct selling method.

2.6 Method of Promotion and Advertising.

Advertising: The business will do vigorous advertisement via local media such as radio and other
methods such as the use of posters, bill boards and direct marketing.
Promotional Program: The business will offer promotional services such as 5% discount on
every service offered in order to attract and maintain customers.

2.7 Distribution Strategy.

The business will employ a direct distribution method that is from the producer to the customer
hence, the customers will not incur transportation cost.

2.7.1 Problems associated with distribution channel.

 It can be easily affected by environmental factors like climate.

 Its disadvantageous too far away customers in that they will have incur
some transport cost

II.7.2 REMEDIES
The most appropriate solution to this distribution channel is opening up other
branches as this would help the customers in reducing their transportation cost and it
would also save time as they would be able to acquire the desire services without
travelling for a long distance.

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CHAPTER THREE
2.0 ORGANIZATIONAL AND MANAGEMENT PLAN

ORGANIZATIONAL STRUCTURE

The chart below depicts the structure that will run proposed venture smoothly.

Managing Director

Technician
Cashiers Sales Person Security Officer

3.2 KEY MANAGEMENT PERSONEL

TITLE QUALIFICATIN ATTRIBUTES DUTIES &
EXPERIENCE RESPONSIBILITIES
Manager  Diploma in B/S management  Decision making
 Two years’ experience  Overseeing the daily
management of the
b/s
 Recruiting Employees
Asst. Manager  Diploma in Marketing and  Market products
Management through promotions
 Two years’ experience and advertisements
Accountant  Diploma in accountancy  Manage all funds in

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 management the b/s
 Two years’ experience
Transport  Certificate in social workers  Ensure effectiveness
manager  Two years of experience means of transport
 Receives and delivers
goods to the business

3.3 SUPPORT STAFF

TITLE QUALIFICATIN ATTRIBUTES DUTIES &
EXPERIENCE RESPONSIBILITIES
Clear  Kenya Certificate of Secondary  Receive and keeps
Education records
 Two years of experience
Watchman  Kenya National Youth Service  Good b/s premises
trainee and in customers
 Three years of experience  Report any theft
attempt
 Provide order in b/s
premises
Cleaner  Kenya certificate of secondary  Maintain the hygiene
education of the b/s premises
 Two years of experience

3.4 RECRUITMENT, TRAINING AND PROMOTIOIN

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3.4.1 Recruitment Policy
The procedure below will be used by the proprietor to employ new members.
(i) Advertising vacant position.
(ii) Receiving application letter and short listing applications.
(iii) Interviewing the appliances to eliminate the incompetent ones.
(iv) Selecting the wanted candidates.

3.4.2 Training Policy

The worker will be trained if necessary, using different criteria. The business
will hire specialist from other related fields to offer training to staff members on
the global trend arising. Training will be offered through the face to face
communication

3.4.3 Promotion Policy

For the purpose of nurturing workers, the business will move them to higher
level as well as increasing their amount of salaries. This will be done at period
where the business profit will have gone up.
Interviews will be conducted by the proprietor to determine the success and
competency of workers before promotion.

3.5 REMUNERATION AND INCENTIVES

3.5.1 Remuneration Policy
Benard’s Concrete block enterprise will pay its workers based on the task the
worker pays in the company. While the proprietor will benefit from the profit
made.

Salaries and wages for key personnel

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 Title Salary per month Salary per year (Kshs)
(Kshs)
Manager 45000 540,000
Laboratory Analyst 32,000 384,000
Accountant 18,000 200,000
Clerk 7,000 84,000
Watchman 5,000 60,000
Grand Total 107,000 1,268,000

3.6 LEDGER RQUIREMENTS

3.6.1 Licensing/Permits requirements
The business will obtain its licenses from the Country Government officers. This
will enable it to secure the right to operate smoothly. The permit and licenses
will be obtained at varied costs

No. License/permit Costs

(Kshs)
1. Local authority permits 10,000
2. Trade license 5,000
3. Insurance 9,500
4. Copyright permit 2,000

3.6.2 Compliances
Following legal requirements will be adhered to
Trade license (Cap 417)

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 Income tax (Cap 460)
Insurance Act (Cap 310)

The above compliance will ensure the l/s is in line with all legal enforcement
hence security.

3.7 SUPPORT SERVICES

The b/s will seek some service from outsides to enable it to do the operations
efficiently. Among these will be;
(i) Electricity, (ii) Water Supply (iii) Banking (iv) Transport and
Communications

This service will be obtained and paid as follows:

No. Service Cost/month Cost/year
Electricity Kenya Power 10,000 120,000
Water KIWASCO 12,000 144,000
Advertisement Social media 5000 60,000

CHAPTER FOUR
3.0 OPERATION/PRODUCTION PLAN

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3.1 PRODUCTION FACILITY AND CAPACITY
4.1.1. Machinery, Tools and Equipment.
For efficient handling and maintenance of the product the b/s will use the
following tools and equipment with indicated details.
Toilet Entrance
Production area
ITEM DATE NUMBER COST UNIT TOTAL
REQD READ COST
Parking Store
Security
officers
CCTV 1.1.2021 4 5000 2000 22000
Security lights 3 3500 1000 11500
Cashiers
Mixing machine Concrete block 2store office 50000
200,000 450000
exit
Concrete block 3 100000 20000 320000
maker
Lorries 70000 1,270,000
Wheelbarrows 2 1500 3000

4.1.2. Repairs and maintenance

The tools mentioned above will be maintained repaired to ensure total
security
In case the machine has broken down the proprietor will hire the
mechanics to repair it and if the spare parts are not available the
proprietor will order for it

4.1.3. Layout of Business Premises

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 The layout above will enable customer to interact with products easily.
The business will use its own provision

4.1.4. Other equipment

The business will require to install supplementary equipment that will
help to run smoothly.
Item Quantity Date Cost
Office computers 5 90,000
Telephone 2 4,000
Calculator 2 1,000
Total 95,000

3.2 PRODUCT/SERVICE DESIGN AND DEVELOPMENT

Product design and development
Product will be of high quality and quantity, and also will depend on the
resources available
Service design and development.
Service design is the activity of planning organizing people infrastructure to
improve its quality of produce and services.

3.2.1 Quality Control

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 This quality product will be controlled according to its costs and the raw
materials required it maintain it, there will be better controlling, maintaining
the quality and enough place to maintain the product and repairing of the
mixture.

3.3 PRODUCTION/OPEATION STRATEGY

These are material required before b/s started operating e.g. pens, papers and
labor requirement are a number of direct and indirect workers and mostly
vehicle for transportation of the products

3.3.1 Material Requirements.

The business requires the following material for its operation

Item Frequency Source Quantity Unit Total

Required Cost (Kshs)
Chippings 8 lorries Quarry 1 8000 64,000
Cement 40 bags 1 650 26,500
Sand 5 lorries River 1 7000 35,000
Water 10,000 ltrs River and 1 12,000 12,000
KIWASCO
Total 137,500

3.3.2 Labor requirements

The b/s will require manager, an accountant, two security officers
and other workers that gender equality

Employee Skills Role Cost

Manager Meet quality in terms of Decision maker 20,000
proper work Controlling and planning all

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 operation of the b/s
Year of experience if Recruits employees
possible Promotes employees
Accountant Experience in Recording the books of 15,000
accounting accounts
Pursued an Gives out cash for purchase
accountancy from
recognized institution
Field workers Fluent in English and Cleaning of offices 8,000
Kiswahili Acts as receptionist
Must be of good
character
Male workers Must be willing to Loading and offloading of 9,000
work materials/goods
Store keeper Must know how to Record all gods that enters 8,500
read and write or leaves the store
Security Form four leaver and of Provide security to the 9,500
officer good character enterprise

3.3.3 Product Costs

The cost of the product will be according to their demand and
supply

Expenses Costs
Licenses and Permits 30,000
Electricity meter 4,500
Equipment and stationary 63,550

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 Total 98,000

Overheads
Airtime 30,000
Electricity 10,000
Miscellaneous 15,000
Total 55,000

4.4 PRODUCTION PROCESS

The proposed business will do its production at high quantities due to
demand in the market
The process will be as follows:
 Inspection at the production( laboratory tests)
 Keeping a product in the store
 Delivery of goods and customer who make orders while away

External factors such as government policy and imminent factor will at times
affect the business. The enterprise will therefore put measures as operations
abide by the loyal requirements and control any risk quickly so that remain
safe.

4.5 REGULATION AFFECTING PRODUCTION/OPERATION

Due to the above factors, the business will operate under strict control areas
namely;
 Record keeping
 Adherence to government policy
 Proper inspection of goods

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  Proper care of customers

CHAPTER FIVE
4.0 FINANCIAL PLAN
The main objective of Crown Concrete is to maximize profit out of the available
finance in order to achieve this enterprise shall:
(i) Adhere to proper book keeping. These book shall be accessed by the
manager alone and should be kept under a lock

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(ii) Commit itself to learn repayment of sure that it starts paying during the first
year of operation
(iii) Ensure that it observes the growth rate of b/s at various stages in order to
maintain it well
(iv) Evaluate the various projects available at the right time in order to maximize
the returns of the investments.

4.1 PRE-OPEARTIONAL COSTS

ITEM AMOUNT (KSHS) Cts
Electricity meter 45,000 00
Installation of telephone 8,000 00
ITEMline 2022 2023 2025
Deposit
Current assetsfor postKshs
office 3,000 Kshs 00
Kshs
Equipment 8,000 00
Cash in Hand 300400 700400 450000
Safety Gears 50,000 00
Cash Stock
at bank 300000 40,000 37000 45000
00
Service charge 10000
Debtors 15,800 12000 00
23000
Transport 9,000 00
Stocks
Office & furniture190000 5,000 10000 25000
00
TotalMiscellaneous
current 800400 2,000 759400 00
543000
Total Cost 185,800 00
assets
Current Liabilities
Loans 300000 27000 50000
Creditors 18000 12000 10500
Bank overdrafts 200000 10000 15000
Total current 518000 49000 75500
liabilities
Working capital 291410 710400 467250
requirements

4.2 Working Capital

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4.3 Cash Flow Projection (Attached) herein below

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 5.3.1 Crown Concrete Projected Cash Flow state for the year ended 31st December 2022
PARTICULARS MONTHS
RECEIPTS
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Beginning 2,500,000.00 2,580,550.00 2,191,300.00 2,191,200.00 1,990,900.00 1,676,200.00 1,475,400.00 1,374,600.00 1,146,300.00 1,039,500.00 1,041,300.00 917,500.00
balance
Cash in hand 30,000.00 30,200.00 31,500.00 32,200.00 33,300.00 30,200.00 30,200.00 35,700.00 36,200.00 30,000.00 31,700.00 48,800.00
Cash in sales 220,000.00 200,000.00 220,000.00 200,000.00 200,000.00 120,000.00 120,000.00 200,000.00 120,000.00 120,200.00 200,000.00 200,000.00
Debtors 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Total 2,900,000.00 2,960,750.00 2,592,800.00 2,573,400.00 2,374,200.00 1,976,400.00 1,775,600.00 1,760,300.00 1,452,500.00 1,339,700.00 1,423,000.00 1,316,300.00
CASH PAYMENT
Purchase 173,000.00 213,000.00 250,000.00 250,500.00 265,000.00 250,000.00 250,000.00 180,000.00 160,000.00 150,200.00 175,000.00 240,000.00
Creditors 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00
Salaries & 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Wages
Telephone 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Advertising 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Bank Charges 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Electricity 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Total Cash 256,800.00 296,800.00 333,800.00 334,300.00 348,800.00 333,800.00 333,800.00 263,800.00 243,800.00 234,000.00 258,800.00 323,800.00
Payment
Ending Cash 2,643,200.00 2,663,950.00 2,259,000.00 2,239,100.00 2,025,400.00 1,642,600.00 1,441,800.00 1,496,500.00 1,208,700.00 1,105,700.00 1,164,200.00 992,500.00
balance

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 5.3.2 Crown Concrete Production Projected Cash Flow state for the year ended 31st December 2023
PARTICULARS
RECEIPTS MONTH
JAN FEB MAR APRIL MAY JUN JUL AUG SEP OCT NOV DEC
Beginning 739,100.00 578,600.00 467,200.00 376,200.00 299,200.00 243,700.00 176,100.00 147,500.00 145,200.00 150,900.00 154,500.00 171,500.00
balance
Cash in 40,000.00 30,000.00 20,000.00 25,200.00 20,500.00 23,000.00 30,000.00 30,700.00 29,500.00 24,500.00 35,400.00 35,000.00
hand
Cash in 26,000.00 30,000.00 30,400.00 23,000.00 20,000.00 25,000.00 20,200.00 23,000.00 24,000.00 24,000.00 22,000.00 25,000.00
sales
Debtors 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Total 955,100.00 788,600.00 667,600.00 574,400.00 489,700.00 441,700.00 376,300.00 351,200.00 348,700.00 349,400.00 361,900.00 381,500.00
CASH PAYMENT
Purchase 220,000.00 170,000.00 145,200.00 130,500.00 110,000.00 90,000.00 87,200.00 65,000.00 57,200.00 52,400.00 50,200.00 47,800.00
Creditors 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00
Salaries & 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Wages
Telephone 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Advertisin 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
g
Bank 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Charges
Electricity 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Total Cash 303,800.00 253,800.00 229,000.00 214,300.00 193,800.00 173,800.00 171,000.00 148,800.00 141,000.00 136,200.00 134,000.00 131,600.00
Payment
Ending 651,300.00 534,800.00 438,600.00 360,100.00 295,900.00 267,900.00 205,300.00 202,400.00 207,700.00 213,200.00 227,900.00 249,900.00
Cash
balance

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 5.3.3 Crown Concrete Production Projected Cash Flow state for the year ended 31st December 2025
PARTICULARS
RECEIPTS MONTH
JAN FEB MAR APRIL MAY JUN JUL AUG SEP OCT NOV DEC
Beginning 193,700.00 219,500.00 249,200.00 268,050.00 290,700.00 327,670.00 353,920.00 376,820.00 401,820.00 428,320.00 447,720.00 470,170.00
balance
Cash in 40,000.00 40,700.00 28,000.00 31,050.00 31,270.00 30,200.00 30,500.00 33,700.00 32,700.00 24,000.00 27,850.00 33,030.00
hand
Cash in 21,000.00 21,000.00 22,000.00 21,000.00 21,000.00 20,400.00 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00 23,000.00
sales
Debtors 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Total 404,700.00 431,200.00 449,200.00 470,100.00 492,970.00 528,270.00 555,420.00 581,520.00 605,520.00 623,320.00 646,570.00 676,200.00
CASH PAYMENT
Purchase 45,200.00 42,300.00 41,900.00 40,200.00 36,700.00 35,200.00 34,800.00 33,200.00 30,700.00 30,200.00 30,000.00 31,500.00
Creditors 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00 32,800.00
Salaries & 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Wages
Telephone 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Advertisin 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
g
Bank 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Charges
Electricity 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Total Cash 129,000.00 126,100.00 125,700.00 124,000.00 120,500.00 119,000.00 118,600.00 117,000.00 114,500.00 114,000.00 113,800.00 115,300.00
Payment
Ending 275,700.00 305,100.00 323,500.00 346,100.00 372,470.00 409,270.00 436,820.00 464,520.00 491,020.00 509,320.00 532,770.00 560,900.00
Cash
balance

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 4.4 Project income Statement as from 2025 to 2026

Particulars 3rd Dec. 2025 3rd Dec. 2025 3rd Dec. 2026
Sales 549,500 73,200 795,100
Less purchase 1,138,300 20,300 214,810
Sold Gross profit 411,200 536,900 580,290
Less expenditures
Wages 5,220 5,340 5,640
Salaries 194,604 206,400 222,000
Advertising 2,120 2,140 2,190
Transport 8,000 8,300 8,500
Permit/license 2,350 2,400 2,450
Maintenance and 8,000 8,100 8,350
Repairs
Stationeries 1,824 2,000 2,100
Miscellaneous 2,200 2,300 2,400
Total Expenditure 222,198 236,980 253,630

Net Profit before tax 189,002 299920 326,660

Provision for Taxation 18,900.2 29,992 32,666
(10%VAT)

4.5 Projection Balance Sheet as at 31st December 2026

Particulars Year 2025 2025 2026
Cash asset
Cash in hand 80000 40000 20000
Cash at bank 200000 60000 50000
Debtors 250000 20000 30000
Stock 50000 30000 40000
Total Current Asset 580000 150000 140000

Non-Current Asset
Machinery equipment 72500 60000 45000
Accumulated 30000 20000 10000
Depreciation
Actual machinery 90000 80000 90000
Requirement Cost 10000 20000 20000
Total Non-Current 202500 180000 165000

Total Assets 782500 330000 305000

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 Liabilities
Current Liabilities
Creditors 50000 10000 40000
Accrued tax 15000 20000 30000
Total Current Liabilities 65000 30000 70000

Long Term liabilities

Bank loans 30000 20000 10000
Owners’ equity 72500 60000 45000
Capital 615000 220000 15000
Total liabilities 782500 330000 140000

4.6 Desired Financing

Item Amount
Pre operational costs 1,868,000
Working capital 219,410
Non-Current Asset 1,446,790
Total Desired Finance 3,606,200

4.7 Proposed Capitalization

Item Amount
Owners Contribution 200,000
Total borrowed funds from friends 600,000
and family
Bank loan 1,000,000
Total investment 1,800,000

The security used for borrowing money is the owners title deed; the preferred mode of
loan payment is total percentage interest which is 12.08% and the grace period is three
years (3)

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