TABLE OF COTENTS

Business plan title…………………………………………………………………………………

Declaration………………………………………………………………………………………………

Dedication……………………………………………………………………………………………..

Acknowledgement………………………………………………………………………………….

CHAPTER ONE

1.0 Executive summary………………………………………………………………………….12.0 Business description………………………………………………………………………….13.0 Marketing plan………………………………………………………………………………..14.0 Organizational Management……………………………………………………….15.0 Production plan………………………………………………………..16.0 Financial plan……………………………………………….2

CHAPTER TWO

2.0 Business description………………………………..3

2.1business name…………………………………..3

2.2Busines location…………………………………..4

2.3Forms of ownership,………………….5

2.4Types of Business…………………………………..6

2.5Product/services………….7

2.6Justification/opportunity………………………………..7

2.6 Industry…………………………………………………….8

2.7Goal of the business………………………………..9

2.8Entry growth/strategy……………………………….10

CHAPTER THREE

3.0 Marketing plan…………………………………………………………11

3.1Customers……………………………………………………..11

3.2Market share………………………………………………….11

3.3Competition……………………………………………….12

3.4Methods of promotion/Advertising…………………………13

3.5Pricing Strategy…………………………….14

3.6 Sale tactics………………………………………………16

3.7Distribution strategy………………………………17

CHAPTER FOUR

4.0Organizational Management……………………………….18

4.1Organizational structure…….18

4.2Key magnetic personel………………18

4.3 Other personnel……………….20

4.4Recruitment Training /promotion personnel…………………21

4.5Renumeration incentives for personnel……………………….21

4.6Licence…………………….22

4.7Otrher supportive Services…………………………………………22

CHAPTER FIVE

5.0 Operational /production………………….23

5.1Production facilities………………………………..23

5.2Production strategy………………………………..26

5.3 Production process……………………..29

5.4Regulation affecting operations………………………30

CHAPTER FIVE

6.0Financial plan……………..32

6.1Pre-Operational costs……………………………………..32

6.2Estimated working capital…………………..32

6.3Projected cash flow……………..33

6.4Profoma balance sheet……………………..36

6.5Proforma profit and loss account……………………………………………37

6.6Desired financing……………………………………………………..37

6.7Proposed Cappitalization…………………………………………..38

6.8 Break Even Level (B.E.L)…………………………………………….39

6.9 profitability ratios………………….40

5.1.6 Business Layout…………………..41

Work plan…………………………………………………………………………………..42

a) EXECUTIVE SUMMARY b) BUSINESS DESCRIPTION

The Business name is NANCLY BEAUTY SALON AND HAIRDRESSING.Its located at Kabarnet town ,Baringo District Headquater.The businessis a sole proprietor owned by Nancy jerotich marutim holder in Diploma in Supplies Management.The services to be offered in the salon will bein PHASE1 hair dressing Blow drying and body massage PHASE 2,will be selling the products in the salon and manicure /pedicure.PHASE3,Hair plaiting,weaving and chemical application and braiding.The business aims to offer the bet services to customers in the town at the fair prices affordable by the customers.

3.0 MARKET PLANNancly Beauty Salon and hair dressing target customers ranging from young to old,businessmen and professionals at affordable rates.The market share will accumulate at the rate of 42% after 6 months.The share is per the competition within the area.4.0Organizational and management planThe business plan is structured appropriately to accountfor daily operation duties recruitment and training renumeration and other operation functions are clearly indicated.5.0 Operational PlanFacilities/resources necessary for the smooth running of the business are in place,repairs /maintainance and products design and development compliance for the government rules/regulations will be adhered to accordingly.6.0Financial plan.It states the financial statements and summarises and follows ; Pre-operational costs 146,200 Working capital 210,000 Break even Level [B.E.L] 98665.40 Profitabilty ratios are as follows Gross Profit ratios 108.2% Return on investment 41.7% Return on equity 66.17%

Cash surplus is disclosed by year one-three as follows 240 390 470 050,660 940Net profit after tax according to years one to three 138 962.60,545 687.80,651 795.90

CHAPTERTWO

c) BUSINESS DESRIPTIONc.1 BUSINESS NAME

The business name will be NANCLY BEAUTY SALON AND HAIRDRESSING.

As the owner of the business I decided to use my name for identification purposes for my eteemed customers.Since there is no other similar name in the area due to my own research.

2.1.1BUSINESS LOGO

NANCLY BEAUTY SALON AND HAIRDRESSING

2.1.2 BUSINESS MISSION STATEMENT

The business intends to offer the best services to customers.To create friendly pricing this will attract more customers.The business also wishes to expand its services after two years and open up a kinyozi in the same firm and employ more workers this will lead the business perform excellently.

2.1.3CAPITAL CONTRIBUTION

Own savings 300,000

Bank loan 100,000

Loan from friends 100,000

TOTAL 500,000

Therefore the ratio will be 2.1.1 own saving,bank loan,loan from friendsrespectively.

BUSINESS LOCATION/ADDRESS

The services of the business will be carried out within the town of Kabarnet.Therefore the business will be located at Kabarnet town near Kabartonjo main stage,it intends to use Singore building 3rd floor,opposite Kabarnet municipal hall along the moi street.

The decision of locating the business in Singore bulding is that its near the road ,accessible to many customers operating within the town,schools,colleges and residents of the area both adults/children.

The busness will have its telephone booth and the owner will have her own mobile phone this will help the communication with customers easily.

NANCLY BEAUTY SALON AND HAIRDRESSER

P.O BOX 30

KABARNET

a.3 FORMS OF OWNERSHIP

The business will be a sole proprietorship business.It will only be operated by one person[the owner].The reason of choosing a sole trade business is;

a] The business requires little capital

b.The business owner enjoys all profit alone

c.The business enjoys top services

d The business will make decisions easy.

e.The owner of the business will be the own boss.

The owner of the business will be Nancy jerotich marutim .The proprietor is aged 21 of Baringo district,Torongo division,Tugumoi location.She was a student at Tugumoi primary School,later joined Kaptagat Girls High School and currently undergoing a Diploma course in supplies management at Eldoret polytechnic,she intends to join Elgon view school of Hairdressing and salon for improvement of her business.

a.4 TYPE OF BUSINESS

The business will be dealing with offering services to customers. The servces is as follows.

Braiding Hair dressing Pedicure/Manicure Blow dry Chemical application Plaiting Moistuiri zing of skins Selling and Buying of lotion

There are various rooms intended to use to operate the salon, one for hairdressing another for blow dry, lotion selling, manicure ,pedicure.The logic behind is to reduce commotion and avoid disturbances.

a.5 PRODUCTS/SERVICESThe service will be offered to customers varying from their age. There will be free service to the adults.

The main services are:-

Plaiting Hair dressing

Blow dry Applying chemicals Moisturizing skins Hair condition {selling} Hair treatment Weaving Pedicure/manicure Jewellary selling

a.6 JUSTIFICATION OF OPPORTUNITY.Aggy Beauty salon/hair dressing wil be profitable will be profitable if commerciated since few people engage with the business. About 50% of the people operating salons are not specialists’ therefore IHave decided to start such business and offer the best services to attract customers.The location of the business within Kabarnet town is because of the following reason :-

a) The popution of the people within Kabarnet town is approximately 10,000 this means there the business will have a lot customers.b) The area has institution,schools,colleges,people passing highway.c) The business will be easily accessible to the materials since it is near to the whole sale in the Kabarnet town. The business will get cheap

labour offered from the local community so as to avoid fee of highly expensive persons.The location is in town will help the business because of the provision of electricity,supplies,and potential customers .

a.7 INDUSTRYThe enterprise is a service industry because it offers services like plaiting,braiding,weaving,and hairdressing.The business will be medium in size.Its activities/services will be in phases as follows:-Phase I-Bliow drying/Hair DressingPhase II- Selling of ornaments,necklaces,Manicure ,pedicure.PhaseIII-The plating ,Braiding,Weaving, Chemical application.

The reason of locating a varied services within one firm issto allow customers to get all services they reguire in the salon disturbances.The business will hair labour intensive technology.The average number of employees the business intends to have six.

Manager Cashier Saloonist Hairdresser

Cleaner Watchman

The basic capital regurements will be minimum of 200,000this will be usedto start the business.The business to have high completition fro m the other firms but it will gather themarket customers. Therefore the firm wll be profitable if attracts the customer hence generating income.

2.8GOALS OF THE BUSINESS

Goals of the businessThe business develops strategic goals with a view to winning the market in the Baringo district in the span of 2 years.It will have returned the initial capital of 500,000.Plus interest the business also intends to improve its business transaction and storing the firm business information.B y the end of 2years the business will expand approximately ha ve branches in Kabartonjo,Kasisit,Tiriminion.

2.8.1SHORT ITEM GOALS

a]P rovide desired services

b]Maximizes it’s throung customer creator /maitainance

c]Satisfy market demand toit’s customers.

2.8.2 LONG TERM GOALS

-The business intends the open a kinyozi at the end of 2years.

-Intends to use computer in recording business training Transaction

-Have branches in Kabartonjo,Kasisit,Tiriminin mangat at.

2.9 ENTRY GROWTH[strategy]

2.9.1 Entry Strategy

The business will endeavors to attract/maintain as many customers as possible through giving out special services at reduced prices.The enter prices intends to use advertisement through radios,posters and calendars and place them in strategic points e.g. Mosop college,Kabartonjo stage,municipal hall entrance/ the moi street high way this will attract more customers.

2.9.2 ENTRY GROWTH

The best way of the business can grow/expand is providing the best services at avoidable prices this wil bring in more customers.The business will expand at end of 2years and open up a kinyozi when it is financial stable it is good that the business will have generated enough capital to open up a kinyozi.The number of employees will added up to ease the operation down.It will offer free services at the end of every six months.

Therefore the business will strive to maintain its market share in the run. At the end of the two years the business will offer a part time training to its employees this will help the business to have experienced staff e.g. developing good relations to the public.

CHAPTER THREE

d) Marketing PlanNancy Beauty Salon/Hairdressing intends to win the market share therefore they will plan their services to be offered.

d.1 CUSTOMERSThe business will be located in a strategic point. It intends to get its customers from school e.g. Kapropita Girls, Kituro High School,Pemwai Girls,Institutions e.g.Mosop Commercial College,Kabarnet Medical Training College,Bartek Institute,residence from the area, Both the young and the old and general public.These customers will reach the business without using large costs.

d.2 MARKET SHAREThe business will be located in an urban area of Kabarnet town therefore the approximate target the population is 10,000 inclusive of both adults and children.The business target to win 42%of the market share despite of completion in the area.

PIE CHART FOR COMPETITION

d.3 COMPETITIONThe business will have three competitors these are:-Best Lady Salon,Umoja Salon,and Small Sister Salon.The following will be the service,weakness/strength of the competing business.

Business Name Strength Weakness Over Coming the weaknessNancy Beauty Salon& Hair Dressing

-Have gualified/ competent Staff.-Many Customers-Good Services

-Insufficient Furniture-Lack of proper eguipment/items

-Hire some more furniture-Purchase more eguipment

Best Lady Salon -Flexible Pricing-Small Capital investement

-Poor services-Ungualified Staff.

Umoja Salon -Located at Centre of town-Win low earners customers.

Small Sisters Salon.

-Cheap Labour-Cheap Services.

-Low Capital Coverage-Less Customers.

d.4 METHODS OF PROMOTIONd.4.1 ADVERTISING

The business intends to advertise through the following:-

a) Posters and stickersThe business will write their vacant positions stating the reguirements according to the post/placing item in strategic points e.g.Marigat-Iten Highway,entrance of the institutions and schools for the applicant to know about the vacancy.

b] Though Radios citizen

Since radio citizen is heard by many people therefore the business will advertise its vacant positions severally.

C]Printing in calendars and journals.-the business will print calendars bearing the name of the business. Its vacant positions and the location of the business.

d]After Sale Service – The business intends to offer free services to custopmers during vocational holidays for one hour 4.00 -5.00P.M every weekends.

3.4.2PROMOTION

For the business to attract more customers and attain their set goals and objective it intends to use the follo wing promotion.

a]Salesmen – the business will use sales men in an open air market to promote their products.

3.5 PRICING STRATEGY

The services price will be intended to be as per the customers economic situation therefore they will have the prices fixed accordingly to the type of hair, plaiting, Weaving etc.Prices lists as bellow;-

Description Price

Curl Kit 500

Straight Kit 400

Blow Dry 100

Pony Yaya @300

Pony Tail @200

Pony Braid @150

Plaiting Lines[Piece Line] 80

Weaving 200

Sangita @350

Manicure/Pedicure 50

Hair dressing 50

Blow out 100

Nairobi style 400

Selling ornaments/Neck Laces @50

The business will not offer credits to services to customers since it wants after 2 years it will have met its initial capital plus interest.

3.5.1 METHOD OF CALCULATING SELLING PRICE

The selling price wil be calculated as per the mark –up of 25% meaning that mark-up as per accounting is [¼]

=Gross Profit *100

Cost of goods Sold

The business will accrue its profits based on costs that is to attain 25% profit.

3.5.2 Factors Affecting Selling Price Setting

a]The economic status of the customers both employed and self employed.

b]The cost of purchasing the products.

C]Competition from other competitors.

3.5.3 Actual Selling Price of Products

It is calculated by use of margin [1/5]

Margin=Gross Profit * 100

Sales

In this case the business will accrue 20% profit on sales.

3.5.4 Credit terms to be offered to customers

The business will offer credit facilities to those customers who will be oftenly come for the services since these customers are well known.

3.5.5 After Sales Services

The business will offer services like application of curtex,lipsticks,manicure and pedicure after a customer have been service.

The business will advertise its vacant positions severally.

Printing in Calendars and Journals

The business will print calendars bearing Nancy Beauty Salon and Hair Dressing,its vacant position and location of the business.Also journals will be used for schools and institutions.This advertisement costs will be 1500 per month in the business.

Those will supply /distribute to the market will be firm entire town [Kabarnet] they will therefore distribute and publise that the best products are found at Nancy beauty Salon /Hair dressing .

The business will select the distribution and agents through their preious performance and motivation will be done by rewarding those who will have good.Sales Services[performance4]

The are of the business will be within the Kabarnet town and entire residential places[reserve near to form]

d.5 SALES TACTICS

For the business to attain high sales and guality services itshould develop its sale tactics as follows:-

a] Use of employeesThe business will use their employed employee to sell the products available in the market e.g. in the firm of cosmetics the sales will sell the products to customers.b]Use of customers potential customers who will be coming for daily services will be selling products for the business.c] Public presentation by sales persons The business will select distribution and agents through previous performance and motivation will be done by rewarding those of good quality services the distributors and agents will sale their produces within Kabarnet town; residential places.

3.7 DISTRIBUTION STRATEGYThe distribution strategy will zero channel because it’s directly supplies from the supplies to the business without passing several cha nnels. The distribution is done advertising/promotion this enable the customers’ to be informed on the type of services products available in the market.Products/services to be offered should be of good quality.

CHAPTER FOUR4.0 ORGANIZATIONAL MANAGEMENT4.1 ORGANIZATIONAL STRUCTURE

Organizational chart

4.2 KEY MANAGEMENT PERSONNELThe business key personnel will be the manager and assistant manager .The manager will be the owner of the business NANCY JEROTICH MARUTIM.The assistant manager will be Solomon Tirop who is holder in Diploma in Beauty theraphy.Qualifications ,duties and responsibilities of the key management are as follows;MANAGERQualifications and experience-The managr is a holder in Diploma in supplies management-The experience is entrepreneurial skills of operating a business.-Has good public relations with the people and good communication skills.

Duties-Plan forecast for the expansion of the business-Analyze the performance of the employees.-Budget for the businesss.-The general manager of the business.-Recruit,retrench and select qualified staff.

Responsibilities

-Motivate employees.-Maintain good public relations-Control the overall persons in the business by making final decision.ASSISTANT MANAGERQualifications/Experience -He must be a holder in Diploma in physical theraphy/body massage.-Must have experience in the same field not less than one year.-Have good communications skills.

Duties-To ensure that the workers are under good working conditions.-To ensure that plans of business succeed.-To enable that products supplied to the business in time.OTHER PERSONELLCASHIERQualififications/Experience - Must be a holder of KATC final. - At least two years experience in relevant field. - Must be below 30 years.

Duties and responsibilities -Record the business transaction -Receive money from the payment made by the customers. -Authorized to pay employees. -Make purchases for the enterprise.

SUPERVISORQualifications/Experience-Must be a holder in certificate in business management-Must be experienced to have worked in a business management for approximately six months.

Duties / responsibilities-Supervise the work of the employees in management.-Ensure the services are offered in the Salon.SALOONISTQualifications/Experience-Must be a trained hair dresser/saloonist.-Have his/her performance analyzed.

RECRUITMENT TRAINING/PROMOTION PERSONNELThe business will inform potential employees of the vacancies in the business premises/advertise by the use of poster which will be placed in strategic points for the employees to apply for jobs.Therefore this will be applied through aletter ;will be called for interviews and those who will meet the requirements will be selected and oriented for the introduction of the business.The training of the workers will be introduced to increase the workers knowledge/skills for better performance of the business, this include how to handle customers,maintaining good relationship and how to work as a team.

4.5 RENUMERATION INCENTIVES FOR PERSONNELThe business will be paying employees at the end of every month as shown below.

Employee Monthly salary House allowance Total salary

Manager 8000 1000 9000Cashier 6000 800 68002 sales ladies,2 saloonists,1 Hairdresser

8000 800 8800

Watchman/cleaner/messenger 4,500 600 5,100TOTAL 26,500 3,200 29700

4.6 LICENSE PERMIT4.6.1 RegistrationThe business will be registered in the ministry of local government at baringo district this will cost the business shs.1500

4.6.2 LicenseThe business wil obtain trading license from municipal council of Kabarnet.This will cost the business Shs.3000.

4.7. OTHER SUPPORT SERVICESThe business require other supportive services for operations to succeed. These are banking ,insurance, postal services.

4.7.1 INSURANCE The business will make sure the premise of the business is insured against any risk e.g. theft,fire the blue sky Insurance Company is the best for the services.

4.7.2 Banking The purpose for the cash use in the business I, the business will open a branch at kennya commercial bank[K.C.B]at Kabarnet branch cheque /cash.

4.7.3. Postal Services.The business will a acquire a post office at Kabarnet for the accessible of postal services for the business Kshs. 6000 per month.

CHAPTER FIVE 5.0 OPERATION /PRODUCTION PLAN.5.1 Production facilities and capacity Machines /Equipments

ITEMS CAPACITY QUANTITY COST PER UNIT

TOTAL COST

Blow drier 1000watts 3 2000 6000Drier 240volts 3 3000 9000Combs medium 2 100 200

Sink Medium 3 300 900Basins small 6 200 1200Carpet 4.5 meters 3 2,000 6,000television 21” 2 20,000 40,000Radio medium 2 15,000 30,000Speakers Big 2 10,000 20,000Water container 100litres 5 1,000 5,000Brooms 5 300 1500Mopper 3 2,000

Towels Medium 5 400 2,000

FURNITURE /FITTINGS

Table Medium 6 500 3,000Seat forms medium 10 200 2,000Cupboard medium 3 1000 3,000Wall graphics Large 5 500 2,500Sofa sets Medium 3 3,000 9,000

TOTAL 139,800300,000

5.1.6 THE BUSINESS PREMISE LAYOUT

NANCY SALON AND HAIRDRESSER LAYOUT.

5.1.7 PLANS FOR FUTURE EXPANSION

The business intends to expand its business according to the performance of the existing business at the end of 2years.When the business generated enough income it will expand and open a kinyozi in its premises. This will enable the business to increase its production and workers.

5.1.8 FUTURE FIXED ASSETS

FUTURE FIXED ASSETS REQUIRED

Fixed Assets Size/Model Quantity/Model CostsFurniture fittings Medium 1 2000Sofa sets Sets 3 6000Cupboard Large 1 2500Wall graphics Large 2 500Television Large 2 30000Premise Medium 1 25000TOTAL 66000

5.2 PRODUCTION STRATEGY

5.2.1 LIST OF MONTHLY MATERIALS

Item quantity Cost per month Cost per year Supplies5 litres 150 1800 Local shops5 litres 200 2400 Nice/Lovely5 dozens 1500 18000 Beauty shop4dozens 2000 24000 Supermarket5 litres 1000 12000 Nice/lovely

company5 litres 1200 14400 Nice/lovely

company1 dozen 200 2400 Best Lady

cosmetics

2 sets 60 720 Cosmetics shop2 dozens 100 1200 Best lady

cosmetics………… 300 3600 Nice and Lovely2 bars 80 960 Local shops…………. 1200 14400 Nice and Lovely

TOTAL 93,480

5.2.2 TRANSPORT COSTS/MEANS.

The business is located within the town so that the means of transport is made by vans hence the costs will be up to 600 per year.

5.2.3 DIRECT/INDIRECT WORKERS

a) direct workers

The business will use their employees to sell products e.gsales lady since she is working in the business premise.

b) Indirect workers

The business intends to hire some personnel to sell the products (salesmen/ladies) to advertise and sell these products.

5.2.4PRODUCTS COST

Direct labour cost

Job title NO. COSTSManager 1 8000Assistant manager 1 6500Cashier 1 6000Supervisor 1 5000Saloonist 2 4000Saleslady 2 4000

Hairdresser 1 4000Watchman 2 3000Cleaner 2 3000Messenger 1 3000TOTAL 46500

5.2.5PRELIMINARY PRODUCTION PER YEAR

Licenses 3,000Insurance 18,000Advertisements 33,500Rents 50,000Registration 25,000TOTAL 107,000

5.2.6Monthly production Overheads

Expenses Per month Per yearElectricity 300 3,600Salaries and wages 29,700 356,400Transport 1,500 18,000Advertisement 5,000 60,000License 3,000 36,000Water bills 150 1,800Rents and rates 200 2,400TOTAL 478,200

5.2.7 TOTAL PRODUCTION OVERHEADS

Total 478,200

5.2.8 COST OF PRODUCTION PER UNIT

=Total production per unit 478,200

Preliminary costs 107,000 =4.4691

5.2.9 COST OF PRODUCTION

The cost of production will be estimate in the total expenses of the business.

When the expenses are more than production the production process increases while the expenses are less than the production costs. Thus the business will estimate its costs of productions per expenses of the business.

5.3 PRODUCTION PROCESS

The business will be offering to customers will be at appropriate time. As a customer enters in firstly he pays on cashier’s office. He is therefore given a receipt then she queues for service.

Those who will purchase the product will be attended by the sales lady.

5.3.1 Alternative proposed services

Apart from the services that will be offered to the customers in the salon. There are alternative proposed services. These are;

1. Offering training fees to the employees, this will help the workers to gain more experience of their work doing.2. For the case of the customers there will be an extra tea to be given to those who sit for long while being serviced.3. There will be a discount offered on the products sold in the salon if a customer purchases goods more than ksh1000.

5.3.2EXTERNAL FACTORS AFFECTING THE BUSINESS

High competition from similar businesses within Kabarnet town Government regulation Act

5.3.3 INTERNAL FACTORS AFFECTING THE BUSSINESS Poor employees’ performance.

Low payments of salaries to employees.

Poor qualification of staff in the business hence poor services.

Lack good public relations in the business.

5.3.4 WAYS OF OVERCOMING INTERNAL FACTORS

Motivating employees by awarding those who perform well. Pay workers promptly. Employ qualified competent staff. Employ good relation expertise.

5.3.5 PLANS OF OVERCOMING EXTERNAL FACTORS

Adhering the government rules and regulations. Provide quality services to win the market competition.

5.4 REGULATIONS AFFECTING OPERATIONS

5.4.1Health/safety

The business premise should always be cleaned to ensure that cleanliness is observed. Toilets are also cleaned using detergent and will be adhered according to the government regulation of public health Act.

5.4.2Trade license

The trading license must be renewed every year and must be obtained from Kabarnet municipality; this will cost the business kshs.3000.

5.4.3Registration.

Registered by the ministry of local government in Baringo District.

5.4.4Adequate space

The premise should have designed space for flexibility in working from one place to another. This will help the customers be flexible, comfortable hence concentration.

CHAPTER SIX

6.3.0 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDING DEC 2010

RECEIPTS JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL

Opening Balance 152,65

0172,30

0187,65

0195,19

0 205,410 221,690 226,340 237,090 248,640 261,630270,62

0 2,379,210

Capital1,500,00

0 500,000

Cash Sales 60,000 55,000 50,000 52,000 56,000 50,000 49,000 52,000 54,000 58,000 50,000 586,000

Total Receipts 500,000212,65

0227,30

0237,65

0247,19

0 261,410 271,690 275,340 289,090 302,640 319,030320,62

0 3,464,610

Less Expences INFLOWS

Purchases 2,700 3,000 3,400 3,000 3,000 3,200 3,300 3,000 2,800 2,900 3,000 2,800 36,100

Water Bill 150 200 200 210 180 200 200 150 150 210 210 200 2,260

Electricity 300 250 350 400 300 300 250 250 300 400 500 450 4,050

Salary/wages 29,700 29,700 29,700 29,700 29,700 29,700 29,700 29,700 29,700 29,700 29,700 29,700 356,400

Fixed Assets 300,000 300,000

Insurance 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Loan repayments 1,500 1,500

Postage 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Transaport 1,500 1,500 1,500 2,000 1,500 1,500 2,000 1,500 2,000 1,500 1,500 2,000 20,000

Bank Charges 1,000 800 500 1,200 1,000 800 800 1,000 800 800 1,000 1,000 10,700Repair &

Manatinance 2,000 1,500 500 4,000

Loan Intrest 10,000 10,000

Licence 3,000 3,000

Adverticement 5,000 3,000 2,000 1,000 2,000 2,000 3,000 500 1,000 4,000 5,000 5,000 33,500

Creditors 2,000 3,000 4,000 5,000 14,000

Miscelenious 400 300 400 350 500 420 500 550 600 500 400 600 5,520

TOTAL PAYMENTS1,347,35

0 40,350 39,650 42,460 41,780 39,720 45,350 38,200 40,450 41,610 48,410 89,450 854,780NET CASH

INFLOW 152,650172,30

0187,65

0`195190

205,410 221,690 226,340 237,090 248,640 261,030 270,620

240,370 2,618,980

152,650324,95

0512,60

0707,79

0913,20

01,134,89

01,361,23

01,598,32

01,846,96

02,107,99

02,618,98

0 45,35024,548,72

0

6.3.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDING DECEMBER 2011

RECEIPTS JAN FEBMARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL

OPENING BALANCE240,37

0 246,350256,40

0 278,620 302,550 326,480 350,110 373,760 397,440 422,220 448,320 467,990 4,104,630

CASH SALES 50,400 50,920 60,000 60,400 64,900 65,000 65,200 65,100 65,300 66,000 67,000 67,600 747,700

CASH FROM DEBTORS 4,000 4,000 1,200 1,200 800 2,000 13,200

TOTAL RECEIPTS290,77

0 297,270320,40

0 343,020 367,450 391,480 415,310 440,060 463,940 489,020 515,320 537,590 4,871,510

LESS EXPENCES

BANK CHARGES 1,000 1,000 700 1,500 1,200 1,000 1,000 800 1,200 800 1,500 1,000 12,700

PURCHASES 2,800 3,100 3,500 3,100 3,100 3,300 3,400 3,100 2,900 3,000 3,100 3,000 37,400

MISCELENIOUS 400 300 550 300 520 520 600 700 800 500 200 600 5,990

WATER BILLS 100 100 150 150 150 140 200 150 150 150 100 100 1,640

ELECTRICITY 400 500 450 300 400 500 250 350 400 450 500 500 5,000

SALARY/WAGES 31,800 31,800 31,800 31,800 31,800 31,800 31,800 31,800 31,800 31,800 31,800 31,800 381,600

INSURANCE 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

LOAN REPAYMENTS 1,200 1,200

POSTAGE 120 100 130 120 100 150 150 100 120 150 130 120 1,490

TRANSPORT 1,500 1,600 1,700 1,800 1,500 1,500 1,600 1,700 1,700 1,600 1,500 1,500 19,200REPAIRS/MANTAINANCE 100 1,200 400 600 2,300

FIXED ASSETS 300 250 300 300 200 200 350 350 250 250 350 400 3,500

ADVERTICEMENTS 3,000 200 1,500 5,000 9,700

CREDITORS 500 200 400 1,100

T. PAYMENTS 44,420 40,870 41,780 40,470 40,970 41,370 41,550 42,620 41,720 40,700 47,330 63,120 526,920

NET PROFIT246,35

0 256,400278,62

0 302,550 326,480 350,110 373,760 397,440 422,220 448,320 467,990 470,050 4,340,290

ACCUMULATED CASH246,35

0 502,750781,37

01,083,92

01,410,40

01,760,51

02,134,27

02,531,71

02,953,93

03,402,25

03,870,24

04,340,29

025,017,99

0

6.3.2 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDING DECEMBER 2012

RECEIPTS JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL

OPENING BALANCE 470,050 492,450 516,880 540,280 563,810 588,610 615,210 638,050 666,340 692,420 721,420 745,920 7,090,610

CASH SALES 67,600 67,700 68,000 68,400 68,600 68,900 69,000 699,200 699,600 69,900 70,000 70,600 2,703,100

2,000 2,000 2,000 2,000 1,000 9,000

TOTAL RECEIPTS 537,650 560,150 586,880 608,680 632,410 659,510 684,210 709,250 735,940 764,320 791,420 817,520 8,087,940

LESS PAYMENTS

PURCHASES 3,300 3,500 3,000 3,500 4,000 4,500 4,000 3,300 3,500 3,600 4,100 4,000 44,300

WATER BILLS 200 220 150 220 250 200 210 220 200 150 200 150 2,370

ELECTRICITY 550 500 400 500 450 400 450 540 520 500 550 500 5,860

SALARY/WAGES 34,600 34,600 34,600 34,600 34,600 34,600 34,600 34,600 34,600 34,600 34,600 34,600 415,200

INSURANCE 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

LOAN REPAYMENTS 1,200 1,200

POSTAGE 150 150 150 150 150 150 150 150 150 150 150 150 1,800

TRANSPORT 2,000 1,500 1,000 2,000 2,000 1,500 1,500 1,800 2,000 1,500 1,500 2,000 20,300

REPAIRS/MANTAINANCE 2,000 1,000 500 200 800 4,500

BANK CHARGES 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000

ADVERTICEMENTS 5,000 3,000 2,000 10,000

LOAN INTEREST 10,000 10,000

MISCELENIOUS 400 300 300 400 350 450 250 300 350 400 400 500 4,400

T. PAYMENTS 45,200 43,270 46,600 44,870 43,800 44,300 46,160 42,910 43,520 42,900 45,500 66,700 555,730

NET PROFIT 492,450 516,880 540,280 563,810 588,610 615,210 638,050 666,340 692,420 721,420 745,920 166,940 6,948,330

ACCUMULATED CASH 492,450 1,009,330 1,549,610 2,113,420 2,702,030 3,377,240 3,955,290 4,621,630 5,314,050 6,035,470 6,781,390 6,948,330 44,900,240

6.4.0 PROFORMA BALANCE SHEET

ASSETS As the beginning of the business (1 Jan 2010)

At the end of Year 1 (31 Dec 2010)

At the end of year 2(31 Dec 2011)

FIXED ASSETSBuildings 100,000 100,000 100,000

Machinery 80,000 80,000 60,00010% accum. Debentures 8,000 8,200

Furniture & fittings 20,000 20,000 19,50090% accum. debentures 2,405 21,660

TOTAL FIXED ASSETS 200,000 189,595 149,640

CURRENT ASSETSStock 20,000 19,000 16,000

Debtors 10,000 9,000 7,000Cash at Bank 100,000 95,000 101,000Cash at Hand 100,000 230,000 95,000 218,000 90,000 214,000

TOTAL CURR. ASSETS 430,000 407,595 365,640

CURRENT LIABILITIESCreditors 20,000 23,000 24,000

Accruals (Water) 10,000 30,000 10,500 38,500 500 24,500 TOTALS 400,000 374,095 339,140