j&n business plan

7/30/2019 J&N Business Plan

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BUSINESS PLAN


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Table of Contents

CONTENT PAGE

TABLE OF CONTENT..2

EXECUTIVE SUMMARY.3

BUSINESS DESCRIPTION4

INDUSTRY ANALYSIS..9

MARKETING PLAN...10

SWOT ANALSYS.13

SALES TACTIVS & PRICING...15

PROMOTION AND ADVERTISEMENT..17

MANAGEMENT AND ORGANIZATION PLAN.19

ORGANIZATION CHART22

RECRUITMENT TRAINING AND PROMOTION..23

LICENSES, PERMITS AND BY-LAWS..25

PRODUCTION/OPERATIONAL PLAN..26

PRODUCTION COST..28

FINANCIAL PLAN32

BIOGRAPHIES OF THE COMPANY OWNERS42

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EXECUTIVE SUMMARY

A feasibility study was undertaken, where the student carried out a study on the existing business in

a bid to establish the viability of this type of business. The results were evident that this was a

viable business but there was a need to improve on the delivery of the services to met the demands

of the customers who are very busy and prefer a service which is technologically savvy.

J&N Green Grocers will be a store with a difference it will be technologically advanced it will

have a website and a use social media portals where its customers can shop online for groceries,

get health and nutritional information, and find all recipes and meals ideas needed for the different

products that we sell.

The business will employ a manager who will be responsible for the initiation of the business and

managing the other employees, while the 2 business owners shall be partners to in the business.

The partners will be responsible for producing the start up capital as well as providing ideas for the

growth of the business.

The partners will contribute towards the start up capital, therefore there will be no need for

obtaining a loan from any financial institution. It is however agreed that should the business expand

then there will be need to explore the possibility of getting funds from financial institutions.

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CHAPTER ONE

BUSINESS DESCRIPTION

The nature of our business will be dealing in fresh food supplies such as vegetables, fruits, fresh

juices and sea food.

Business Name

The business name shall beJ&N GREEN GROCERY

Mission Statement

The mission is to serve customers and provide them with the best grocery services.

Core Values

To achieve maximum customer satisfaction

To deliver quality services to customers

Practice what we preach: honesty, integrity and ethics

Background of Business OwnersThe business owners will comprise of a partnership of a couple namely:

1. Jeff Mokaya

2. Nasra Amina

The credentials of the owner are mentioned in their bio-data page attached in the annex.

A written agreement shall be prepared for the business and it will be clearly stipulated that the

partners will not be entitled to a salary or other remuneration for their services, they will however,

be entitled to a share of the profits, and they also share the risks incurred by the business even if it is

due to a partners mismanagement or dishonesty.

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A partnership has been decided as the preferred business because it is easier to set up this type of

entity, it only requires a partnership agreement and the process of converting the business into a

limited company later on is straight forward.

Business Location

The business shall be located along Amboseli Road, off Gitanga Road. The residents of this area

are mainly Asians, Europeans and affluent Kenyans. The business shall draw customers from the

surrounding residential homes, passerbys and motorists along Gitanga and Amboseli Road.

Building on Lease: - The store from which we are going to start our business is not our own but we

are starting business by taking it at on lease and paying monthly rent of Kshs.2500.

Postal Services - The business has its own private mailbox at City Square. This way our customers

can reach us through: The Manager, J&N GREEN GROCER, P. O. Box 2071 00200,

NAIROBI.

Equipment: - The main equipment which is requires for our vegetables retail and distribution store:

Motor cycles

Shelves

Packaging materials; bags and bottles

Fans

Computer

Refrigerators, freezers and cooler boxes

Weighing machines

Trays for cut vegetables

Office furniture

All these equipment shall be purchased at the commencement of the business.

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Legal Form of Business: - The business is a partnership in which all individuals are liable for

business liabilities of business. Partners make all decisions and can act immediately and they are

also responsible for all profits and losses. Partners will also contribute an equal percentage of the

startup capital.

Continuity of Business: - The continuity of our partnership will be based on the agreement held

between all the partners so that in case of death of any partner; there will be no affect on the

business.

Amount of Finance Needed

The proposed capital required will be Kshs. 500,000 this will be obtained through share

contribution from the group members. Each member will contribute Kshs 250,000 to obtain Kshs.

250,000 which is the required start up capital.

Products

The business will offer the following goods and services:

(i) Variety of fresh, processed and dried vegetables and juices

(ii) Variety of fresh / processed fruits and juices

(iii) Variety of sea foods

Business Status

This is a business start up and therefore will require registration of the business and equipping of the

business. The name will be searched at the Registrar of companies. The name will then be

registered by payment of a fee. A city council license shall also be obtained in order to get a city

council license. The business deals with food items therefore a city council health certificate shall

be obtained for the premises as well as the workers of the premises.

Expected Time of Opening

The business is expected to start operating early next year 2014. The business will operate on a six

days per week schedule, from Monday to Saturday working hours are: 8.00 a.m. - 6.00 p.m

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Industry

The business industry is under the Ministry of Agriculture as well as the Ministry of Commerce and

Industry, we will be selling products that are obtained from the agricultural sector and generate

income and profit as a form of business.

Industry Size

The business will have a variety of services on offer and will attract many customers. The business

will benefit from advertising on signposts, FM radio services, facebook pages, use of salesmen on

motorbikes and by word, this will be our strong point against our competitors who have a majority

of unskilled staff on the mama mboga kiosks. Many of the competitors do not sell fresh juices and

seafood therefore our business will have a larger customer base.

Business Goals

For the success of the business planning is essential for any enterprise particularly those with

growth aspirations. If the small enterprise is to grow beyond the survival stage, then planning and

establishment of goals is needed.

Viability of the Business

The feasibility study and research revealed that this type of business is profitable as long as the

entrepreneur has the capital and a trained staff.

The business set-up and environment will make it more attractive to customers.

The business will purchase its supplies from the mushrooming greenhouses and the Wakulima

market which is located 5km from the business location.

The business will provide specialized services like free home delivery, cut and packaged vegetables,

packed juices and processed/ cooked vegetables to our customers.

Entry and Growth Strategy

The entrepreneurs have carried out a market research to gauge the viability of the business. This

was achieved by use of use of sales person and some of the sales techniques that will be employed

include:

Introduce a 5% discount for every purchase of over 2000/= Kenya shillings as a compliment.

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Look out for contracts to supply to churches, hospitals and schools to make more profits.

Display of health and non-defective products to draw more attention from customers

Providing of special offers to win the majority of customers therefore making a higher profit

Providing raffles tickets for sales promotion.

Introduce Points Earning Card whereby customer earns 2 points for every Kshs 100 spent.

Management Control Strategy:

Distribution of Profits and Losses: - All the partners have equally responsible for loss and the

profit gained from the business. The profit will be distributed among all the partners equally.

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CHAPTER TWO

INDUSTRY ANALYSIS

Kenya is an agricultural country therefore it mostly fulfills its demand of fruits and vegetables itself.

There are number of markets and providing fruit shops serving customers. The concept of green

grocers are existed in the form of mama mboga and Most people buy their vegetable supplies

from the mama mbogas daily or from the market weekly in order to fulfill their requirements and

keep that stuff for a whole week. The availability of both vegetables and fruits, juices and sea food

in a single shop is not common practice, only super stores provide the fruits, vegetables and sea

foods collectively.

Market Segmentation:

Our market is integrated so we have only one segment to serve that is House hold Families

Market Situation:

As the food is basic necessity of people and people add vegetables to their food for getting the

nutritious values and changing their tastes. The people of the area that we are going to serves are

also found of vegetables and almost 300 families need vegetables on daily basis.

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MARKETING PLAN

Potential Customers

The customers will be the residents from the area as well as passerby and motorists using this busy

road. J&N GREEN GROCER will seek to attract them all and save them the cost of travelling

long distances to look for similar to those in bigger business enterprises.

Another category of customers to be served by J&N GREEN GROCERSare the surrounding

institutions such as hotels, schools and hospitals.

With eloquent and expounded advertisement on facebook, radio, daily News Papers, TV and on

billboards customers will be drawn from different areas who will come to buy from the business

premise.

Due to the average earning of the targeted customers the packaging of the commodities will be of

various standard quantities in order to give room for even the lower class level to be able to have

access to the business room and enjoy the vast services of the staff.

MARKET SHARE

The J&N GREEN GROCERSis hoping to capture a good number of the current market in order

to make it a success. We will Endeavour to provide first class services with food quality.

The market that we would like to penetrate is Families. There are thousands of families in this

area. They all belong to upper class. They are health conscious and time is important for them as

they have their own social and professional circles. They are not sensitive towards prices. Most

families have servants who perform the major duties such as cleaning houses, purchasing, cooking

etc.

Positioning Statement:

J&N Green Grocers provide vegetables to consumers who are health conscious and want to save

their time

Our business Green Grocers covers all future prospects. Currently it will sell vegetables, fruits

and sea food.

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Marketing Mix Variables:

Services: - the business willdeal in vegetables, fruits and sea food products and providing

this service to our customers in following ways:

Retailing: - We will have a shop that is located at the middle of the two societies, i.e. the

affluent citizens and the middle level citizens. We arrange the vegetables on shelves so that

the customer can easily make the buying decision. We give the opportunity to our customers

to visit the store and buy whatever they want.

Use of salesmen on motorbikes: - At the beginning of the day we will send our two motor-

bikers in both areas. They will visit the areas only once in a day. They will be there from

9:00 am 3:00 pm. They will be facilitated with bicycles on which there will be vegetables

up to 30kg for each hawker they will distribute the vegetables in brown papers packaging

Home Delivery: -We are also providing the free home delivery to our customers. As in

some families there is a trend of cooking in evening so by ordering us they can easily get

vegetables without tension of arranging the food stuff in day time. The other potential

reasons may be the shortage of vegetable, sudden arrival of guests or unplanned cooking.

Two kilogram (2-Kg) is the minimum order for which we will provide home delivery

services.

Cut Vegetables: - We are providing opportunity to our customers to get cut vegetables from

our store by ordering us. The customers can get benefit of this service who wants to save

their time. The cut vegetables will pack in plastic and then in brown packing.

COMPETITION

Though the business is not going to have a stiff competition as revealed by the survey there are a

few competitors such as the Good Edible Green at Lavington green, Green House and Excellent

Corner Greens. As estimated the J&N GREEN GROCERS shall offer a larger variety of

products as compared to the competitors.

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The competitors are:

a. Good Edible Green

b. Green House

c. Excellent Corner Green

The strengths and weakness of competitors are as follows:

Name Strength Weakness

Good Edible Green He is good in business

language i.e. knows how to

persuade customers.

Has a bigger stock than the

two.

Good prices.

No variety of goods has

more of the traditional

mama mboga supplies

No parking space for

customers in cars.

No transport facility for

bulks sales and supply.

Financial instability.

Green House

There is a parking space for

cars.

Good customer relationship

No transportation on

goods sold in bulks and

also on supplies.

Lowly paid staff has a

smaller stock of

products.

Much committed at his

place of work than

monitoring of the

business progress

Excellent Corner

Greens

Attractively designedpremises are a good crowd

puller.

It owns a van for the

delivery and supply of bulky

products.

Frequent water shortage.

High prices

Low morale of service

by the employees.

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J&N GREEN GROCERSwill employ a qualified staff of not less than two years experience in the

similar field. With total commitment to work with minimum supervision.

The higher stock is a greater incentive to winning many customers and better prices than his

competitors.

J&N GREEN GROCERS SWOTS

(Strengths, Weaknesses, Opportunities, Threats and Solutions)

The table below shows the approach behind the success of the business as compared to its

competitors.

Strengths of GreenGrocer:

Location & Accessibility to Customers: Our store is located at thejunction of the two busy roads Therefore the people of both areas can

easily be served. The surrounding of the stores is good; there is no

traffic and parking problems for us as well as for our customers. We

have the advantage upon our competitors in terms of location, service

delivery time and access.

Home Delivery: We will be providing free home delivery to our

customers as no our competitor is providing this service.

Serving/Delivery Time: Due to our location we can fulfill the order of

our customers within 15 minutes. While special services of cut

vegetables can be fulfilled within 30-35 minutes.

Cut Vegetables: We will give our customers the unique service of

providing them cut vegetables on order so that their time to prepare

food is reduced

Technology: The successful implementation of technology in the store

will be a real strength for the company.

Size of store: The business will enjoy the benefits of a smaller store

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format with a more singular focus than does a supermarket and

therefore, is able to focus on not only convenience but service as well.

Weaknesses of Green

Grocer Resources : much of the initial resources will be building its store from

the scratch

Inventory Management: The management of vegetables is our major

problem that how to manage the extra Inventory because extra

inventory will sale at another shop in poor area near to the Aden Avenue

at very low profit.

Long Distance: There is problem of long distance from some of the

markets supplier cost is higher.

Market : the number of green groceries are also increasing

Opportunities of Green

Grocer

Introducing meats: We can expand our business by introducing fruits

and meat so that our customers can get the food items what they want.

(one stop shop)

Online Services: In order to cover more market online services can be

helpful for us.

Health factors : there is a growing campaign of healthy eating habits in

the country from which the store will benefit

Threats of Green

Grocer

Most important is that to create the customers trust because the

cut vegetables and simply on order delivery services are

introducing first time in that area by J&N Green Grocer. So

there is most important point is to keep in mind the human

health. It is a threat, may people do not believe on our safety

steps, so we are very much conscious about our customers

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health and care it by providing washed vegetables, and keep the

employee appearance suitable by providing him proper uniform.

The natural disasters e.g. flood, lack of rain etc are another

threat for us. May be due to these disasters the prices of

vegetables rise and profit margin may decrease.

Another threat is from competitors because there is direct

competition from other competitors, and the one hawker who is

already serving this area. But J& N Green Grocers is

providing the unique services i.e. washed and cut vegetables, on

order delivery.

Solutions J&N Green Grocers will try to use quality materials during set up so

that there will be no much frequent need for repairs, we will also invest

in good quality refrigeration equipment to avoid the vegetables and

fruits going bad. J& N Green Grocers will also procure a van which

will be used to transport the supplies from the market.

To bit our competitors we will:

a. Offer a better, friendlier service

b. Show customers that they really are valued

c. Be different wrap our goods securely and always offer help

d. When customers make a return visit we will ask them if they

were happy with the services and goods we offered last time

e. Tell customers about new products that are available

f. Call the customers to find out if there is anything we can do for

them

g. Take time to know our customers well

h. Endeavour to sell quality goods

i. Run promotions to benefit our customers

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SALES TACTICS

The Sale tactics to be put in place for the business will include the following:

(i) A discount of 5% for any purchase of over 2000/= Kenya shillings

(ii) Purchases are carried to the owners car

(iii) Customer contacts will be taken and follow up calls will be made to the customer

(iv) Providing raffles tickets for sales promotion.

(v) Introduce Points Earning Card whereby customer earns 2 points for every Kshs.100

spent

PRICING STRATEGY

The J&N Green Grocers will take into consideration the following points when giving price

worthiness of the goods:

(i) The cost of acquiring this fruits and vegetables from the farmers and other suppliers.

This helps to finally give value of prices to the customers.

(ii) The competitors price: compare the pricing of your competitors will be much more

interested to buy from her.

(iii) The aim of making much more profit for the business to achieve its goals. It has to make

as much as possible profit to boost the morale of the business.

(iv) The cost of labor: the cost to pay salaries to the staff members also contributes for its

from the business they are going to be paid.

(v) The season of the year meaning that when there is plenty supply with goods bought from

farmers and suppliers at a lower price the effect so relayed to the pricing of the goods in

the grocery meaning reducing the prices. When goods are scarce in the market prices are

affected hence the rise of prices of goods.

PROMOTION AND ADVERTISEMENT

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For the enterprise to flourish and with possible expansion in the future, attracting customers and

retaining them will be of paramount importance. The following ways are used:

Current Strategy: - We are currently using the print media, facebook for the purpose of promotion.

We are using brochures and pamphlets for advertising. As it will cost effective for us as compare to

any other media. We have also contacted the other shop keepers to give our brochures to their

customer when they come to purchase.

Future Strategy: - In future we will use TV and radio media, road side banners and bill board. In

order to cover more markets. As the number of new housing schemes are build there.

ADVERTISING

This is done by:

(i) Use of posters that will be placed along sign posts to give direction to the business

location.

(ii) Advertising on mass media e.g. radio and TV sets, and even on magazines and daily

News Papers once a month.

(iii) Use of social media (Facebook & Twitter)

(iv) Sometimes organizing for a space in a busy traffic way where the majority pedestrians

pass and exhibit her products.

Personal Selling - This means that customers are not going to come and go round alone in the

business premises picking products and paying, There will be attendants who will be accompany the

customer and assist them as they select their produce.

Promotion

This is done in the following ways:

(i) Packaging of fruits in transparent polythene bags and other products in the grocer will

have a significant influence to the customers eye speculation.

(ii) Giving a free sample on special offers and gifts to potential customers

(iii) free gifts shall be given for purchases made for bulk purchases

(iv) The displaying of the products on shelves will be arranged in such a way that the

customers will find it easy to locate and move peacefully inside the shop i.e. it will be

attractive and appealing.

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Publicity - This is the action of doing something that will make the business be in the news. The

J&N GreenGrocers will do this by:

(i) Being helpful to customers who may need some advice on particular products on sale.

The business will offer advice on substitutes of sales on shelves.

(ii) Ensuring that customers are attended fully with honest dealings, polite and with a high

level of discipline put in place.

(iii) Donating money to charitable organizations, and self help groups

(iv) The customers are not restricted to come and view the products even through they are

not buying. They might be attracted and made to buy.

DISTRIBUTION STRATEGY

The J&N Green Grocers is to use a direct distribution channel as it will be dealing with its

customers directly. The reason for this choice of distribution is based on:

(i) The cost will reduced because the money comes directly to the enterprise as there are no

middle men.

(ii) The products get fast to the customers.

(iii) The other sales will be provided to restaurants, churches without any brokers or agents.

This way the proprietor is able to gauge how well the business is doing by the customers reaction

when he/she buys, by asking their opinion on what they are buying, what they are satisfied with and

what they think of the business generally.

Parking and Security - This is also among the priorities of the management to ensure that the

customers are safe and their cars at the parking are taken care of. This is done by employing a

watchman and also somebody to clean the front screen of the cars and also the business will be

fortified and electrical fence provided.

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CHAPER THREE

MANAGEMENT AND ORGANIZATION PLAN

Organization Structure

This comprises of different posts, with the highest post being the Business Manager and the lowest

being the watchman.

1. Business Manager

The proprietors ofJ&N GREEN GROCERSwill employ a business manager.

Qualifications

The Business Manager must have the following qualifications:

1. Must be a Kenyan citizen.

2. Must be aged between 24 35 years old.

3. Diploma in Business Management

4. Knowledge of Driving

Responsibilities

1. Recruiting support staff.

2. Purchasing of items needed for the business

3. Overall supervision and monitoring operations

4. Receiving money from sales made and approving discounts where necessary.

5. Allocating duties and responsibilities

6. Provide a good working environment and give incentives for increased morale

2. Assistant Supervisor

This is an assistant to the manager taking on the duties of a manager when she is not around in the

business vicinity.

Qualifications

1. Be an average age of 20-30 years.

2. Be a holder of a latest certificate in Business Administration

3. Have at least 2 years of working experience

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4. Should be hardworking, honest and ready to work under stressful environment.

5. Should be a Kenyan citizen.

Responsibilities

1. Should be checking on stocks on shelves to be able to buy stock and ensure enough stock

throughout the working hours.

2. Help the manager in overseeing the smooth working of employees and incase of anything

report to the manager.

3. To make sales but hand the money to the manager.

3. Cashier

The business firm has one employee who has the following qualifications:

1. A certificate in KCSE with mathematic mean grade C.

2. Should have worked in a busy business firm for at least 2 years.

3. Should be hard working, honest and have a good memory to be able to grasp the prices of

the commodities on shelves.

4. Must be between the ages of 18years to 27 years.

Responsibilities

1. Receive the money at the counter and give correct change.

2. Give correct figures to the customers incase they dont know the actual price.

3. To attend customers at the counter and give necessary information incase of need.

4. Counting the money and balancing the figures correctly before handing to the assistant

manager.

5. Seeing that all customers pay the counter.

4. Attendant / Motor Bike

There is one employee helping to assist customers go round the merchandise and help to carry the

goods sold to the counter and to the owners car.

They have the following qualifications:

1. Should be a form four leaver fluent in English and Swahili.

2. Should be above 18 years.

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3. Having worked in the similar enterprises would be an added advantage.

4. knowledge of motorcycle

Responsibilities

1. Make sure that grocer is very clean and tidy.

2. Make sure that all vegetables and fruits are arranged in an orderly manner, attractive to

customers.

3. Attend customers in a respective and patient way to him/her.

4. To carry any heavy or bulky sales to the counter and finally to the means of transport.

5. Help to load and unload the goods to be sold in the grocery.

6. Should be a hard working, honest and good socialization and interaction with customers.

Watchman

The firm will be operating with two watchmen having the following qualifications:

1. Scored at least an average of D- KCSE.

2. Should have trained as a security guard and at least 4 years of working experience.

3. Should be strong, commanding, honest and trustworthy.

4. Having handled dog section will be an added opportunity

ORGANIZATION CHART

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The following is an organization chart forJ&N Green Grocers flowing from the top highest rank to

the least rank.

RECRUITMENT TRAINING AND PROMOTION

22

MANAGER

ASSISTANT

MANAGER

CASHIER ATTENDANT

WATCHMAN


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After all the employees have qualified for the jobs they are inducted on the business requirements

and operations and the manager allocates them duties.

Recruitment : Advertisement for the positions will be done by word, and all the interested

candidates shall go through an interview session.

Training : The watchman is trained on how to usher in customers during the day. They are advised

to be in their uniform throughout the working hours. They are also trained on how to guide

customers to the business firm. The cashier and the assistant manager plus the three customer care

employees are taught on various names of the sales vegetables and fruits, their prices and how to

make the place attractive and appealing to customers. They are also trained on how to make

business a success. The training is to be presided by the GREEN VEGETARIAN FIRM. Lasts

for one day starting at 8.00 a.m. to 5.00 p.m.

Promotion : Promotion given on the hardworking, honest, punctual in reporting hours of work and

experience gained through everyday performance. Promotion done by the manager of the business.

If an employee is working as a customer care he/she will be promoted to buy stock from the farmers

and other suppliers. The cashier the watchman and assistant supervisor are to get promotion on

their salary scale increment.

Remuneration, Incentives and Salaries

For greater output employees have to be given morale to work efficiently with good and conducive

working environment.

This is done through the following remuneration and incentives:

1. Twenty five working day leave for every employee per year at different and well spaced

months.

2. 5% commission of their salaries to be given after two weeks of every month. This calculated

on the salary of each individual.

3. Christmas and other holidays of an employee hours of work receives 5% of ones salary.

4. Praising employees work and adding more value on direct communication between

employee and employer.

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Salaries : After three months of work all employees will work on a permanent basis and the

business will support them by processing the statutory requirements such as NHIF and NSSF

contributions. The business will also pay the obligatory tax requirements.

Position Number of

Employees

Monthly salary per

Employee in Kshs.

Assistant Supervisor 1 20,000

Cashier 1 10,000

Distribution / sales 2 18,000

Watchman 1 6,000

TOTAL 5 54,000

LICENSES, PERMITS AND BY-LAWS

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Every business is required to obtain a license, this is a legal requirement from the city council. The

license gives the business a permit to operate and this is issued according or depending on the kind

of business.

R& B GREEN GROCERS, will obtain a permit which is in the class of permits that ranges for

Kshs. 5,500.

By-Laws : The By-Laws that governs the enterprise are the foods and poison act which require:

(i) To sell fresh vegetables and fruits

(ii) Comply with health requirements of proper dumping

(iii) To sale products measured on weight quantities to comply with the standard

measurements and weight.

(iv) No illegal products should be sold.

(v) The employees will also be required to obtain a certification from the City

council to confirm that they are not suffering from Tuberculosis.

The others are that will be enacted deal with labor laws for reinforcement of employer and

employees relationship and respect human rights.

Legal services - A lawyer is needed to represent the R& B Green Grocer to provide advices and to

mitigate any misunderstandings or court battles with different stakeholders. The lawyer will handle

all legal aspects of the business and will be paid for every assignment that his/her services will be

used.

Bankers COOPERATIVE BANK The business will obtain a bank account from Equity Bank.

Banking of the funds will be done daily.

CHAPTER FOUR

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PRODUCTION/OPERATIONAL PLAN

Equipments and Tools - The equipments and tools that a firm uses are of great importance as they

determine how well the work in the firm is carried out.

The equipments that the R& B Green Grocers will purchase for use are little long term cost is

reliable of adequate capacity and to be handled with maximum care and maintenance. They are as

follows:

Equipments for the First Year

TYPE OFEQUIPMENT

CAPACITY QTY COST IN KSHS.

Refrigerator Medium 1 50,000

Freezer Medium 1 40,000

Weighing machine Each 1 15,000

Calculator Each 1 2,000

Trolleys Each 3 3,000

Baskets Each 10 500

Water tank 2000 liters 1 3,000

Watering can 10 liters 3 600

Wheel barrow 100 kg 2 1,200

Air fans Each 3 2,400

Knives Each 5 150

TOTAL 31 119,050

Premises

The J&N Green Grocers operates a long Amboseli road off Gitanga Road near Valley Arcade. It is

situated near the junction of Gitanga and Amboseli where very few shops of similar kind are set.

The permit to let the business start is acquired from the city council.

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The shop or grocery is packed well with vegetables and fruits and other kinds of sales in an

organized and attractive way. In rows to let way for the customers go round. A space of 10 x 10 ft is

left in the shop where the counter cashier is seated.

Opposite the grocery is build an office for the assistant manager who monitors for the sales and

customer needs incase of help or advice. Also at the opposite side is a small shade for customers

who take soft drink. All the things in the grocery are closed inside as the watchman takes guard at

night.

Labour

J& N GREEN GROCERSwill employ skilled labor for they underwent training before starting on

the business grocery. The owner is the manager under her is the assistant manager then the cashier,

the 3 attendants and the watchman. Hired laborers are also required who come to weed the flowers

and clear the fence and cut grass. A lawyer is also needed incase of legal matters to be carried out.

Capital

The initial money to put the business on its feet is from reliable source this will be a contribution by

all the business owners. It has been agreed that each owner will contribute an equal share of

Kshs.250,000 to the business to meet the Kshs.500,000 that is required for the business to

commence.

PRODUCTION COST

This is the entire cost incurred in establishing the J&N GREEN GROCERS before any profit has

been made. All the money at start up which has been pumped into the business.

Type of Cost Amount in Kshs.

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This is a 6 months costing

Salaries

Water

Advertising

License

Hired laborTelephone

Electricity

Rent

279,000

7,500

8,000

5,000

3,0005,500

7,200

TOTAL 315,200

Cost of operation for the first year in Kshs.

Equipment cost + Material cost + Overhead cost.

119,050 + (68,600 x 2) + (315,200 x 2)

119,050 + 137,200 + 630,400 = 886,650

Production Strategy

This involves the areas that management has laid strategies on ways of improving the designs of the

products considering aspects like consumer tastes and preferences based on the sales made.

Products Designs

The product design constitutes packaging of the fruits and vegetables on various quantities based on

market demand.

The type of products to be incorporated by theJ& N GREEN GROCERS includes:

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(i) Offer varieties of vegetables -e.g. spinach, cabbages, sukuma wiki, asparagus etc.

(ii) The vegetables and fruits purchased from the markets and farms will be of the

highest quality and very fresh and free from any defects. These will attract

customers and retains them.

(iii) The management will ensure that there is enough stock for mostly demanded

products, this keeps steady flow of customers and in the process gives them an

opportunity to Window shop

(iv) Motivation of employees, the management is trying to make their working hours

convenient while at the same time using this hours scheduling to the enterprise

advantages. They are expected to report in at 8.30 a.m. and leave at 6.00 p.m. so

as a customer from work can still find the grocery open and buy something if

there is need.

(v) It is the intent of the J&N Green Grocer is to increase production by making

greater sales in the market.

Waste products include polythene bags, vegetable leaves, spoilt fruits and stalks of some vegetables

and onions will be collected and packed in composite pit and sold to farmers will use them for

processing organic fertilizer or for pig feeds.

OPERATIONAL PLAN SCHEDULE LAYOUT

STEP DUTIES

1 Manager and assistant Manager reporting hours 8.00 a.m.

2 Manager hears from is assistant manager about the

watchman. He also gets a list of things to be purchased for

8.00 - 8.30 a.m.

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the day to add stock.

3 The assistant manager ensures all employees have reported

to work and prepares them for work.

8.30 9.00 a.m.

The Grocery is opened as the cashier receives some money

from the manager to cater for changes

9.00 9.15 a.m.

4 Break tea is served while working 10.00 10.30 a.m.

5 Lunch break for a short while the grocery is under themanager and his assistant.

12.30 1.00 p.m.

6 Evening tea served 4.00 4.30 p.m.

7 The manager and his assistant takes stock of the grocery 5.00 5.30 p.m.

8 Assistant manager receives money for the days sale from

the cashier and hands over to the manager

530 6.00 p.m.

9 The grocery closed 6.00 p.m.

The work flow is as follows:

Purchasing/supervision/selling

Receive money

Records money Received

Takes Stock

Close the Business

REGULATIONS

Environmental - The firm is to provide a dust bin to put all the waste polythene papers, vegetable

leaves, spoiled fruits and any other waste material

These are sorted out to be sold to the farmers who take them as manure and for mulching and the

polythene papers are given to waste collectors. This way there would be no biodegradable item is

released to the environment.

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Health - As required by the ministry of health under the local Authority the business is to be set

under hygienic environment. The products to be sold must adhere to the Food and Beverage Act

free from poison. The workers health conditions are checked after every three months to ensure no

contamination of vegetables and fruits during handling.

Safety

1. Nobody is allowed to run or move fast while in the shop

2. Serve one customer at a time to avoid confusion.

3. In case of any problem the manager should be contacted immediately

Other Regulations

The other regulations observed are:

1. Punctuality

2. Loyalty and adherence to rules.

3. Ensure no council rules are broken in any way. All business transactions are within the

enterprise except the manager and the assistant who contact supplies, distributors, market

agents and legal provision.

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CHAPTER FIVE

FINANCIAL PLAN

This section deals with allocation of funds to various activities within the enterprise, machines, and

persons aimed at achieving the pre-set goals of the business.

Plan for the management of the enterprise.

Shows the potential of the enterprise and its progress

Assess the performance of the business

Uses as standard against which the performance is measured

Represent the entrepreneurs best estimate of future operations is quantitative terms.

Pre-Operational Cost

These are costs incurred by the owners of the business before starting to operate the business such

as; Opening stock, salaries, materials and equipments, license, advertisement.

ITEM COST (Kshs.) Kshs

Opening stock

Salaries

Materials and

Equipments

Licenses

Advertisements

135,000

54,000

5,000

3,000

135,000

54,000

119,050

5,000

3,000

TOTAL 316,050

PROJECTED CASH FLOW STATEMENT

The profit and loss account shows how the business is operating whether at a profit or at a

loss.

Suggests ways of improving projected profitability.

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PROJECTED CASH FLOW FOR 2013

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC A.

TOT

/F 44,30

0

93,50

0

139,80

0

185,10

0

226,45

0

267,90

0

308,30

0

347,35

0

385,55

0

426,65

0

469,1

00

2,893,000

ales 80,00

0

81,00

0

82,00

0

80,000 75,000 76,000 77,000 75,000 75,000 72,000 74,000 75,00

0

922,000

ebts - - - - - - - - - 3,000 5,000 10,00

0

18,000

otal 80,00

0

125,3

00

175,5

00

219,80

0

260,10

0

302,45

0

344,90

0

383,30

0

422,35

0

460,55

0

505,65

0

553,1

00

3,833,000

xpensesurchases 10,00

0

12,00

0

15,00

0

15,000 13,000 13,000 15,000 14,000 15,000 12,000 14,000 15,00

0

163,000

Wages &

alaries

15,00

0

15,00

0

15,00

0

15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,00

0

180,000

icenses 5,000 - - - - - - -- - - - - 5,000

dvertisem

nt

1,000 - 1,000 - - - - - - - 1,000 - 3,000

Water 500 550 500 600 500 450 550 600 500 500 450 600 6,300


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lectricity 900 850 950 900 800 800 850 900 900 950 800 900 10,500

elephone 800 900 750 700 850 800 700 950 900 950 800 900 10,000

ransport 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

oan

nstallment

- - - - - 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14,000

epair &

Maintenanc

- - - - 1,000 - - - - - 1,000 - 2,000

Miscellane

us

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

otal 35,70

0

31,80

0

35,70

0

34,700 33,650 34,550 36,600 35,950 36,800 33,900 37,550 36,90

0

423,800

et Profit 44,30

0

93,50

0

139,8

00

185,10

0

226,45

0

267,90

0

308,30

0

347,35

0

385,55

0

426,65

0

468,10

0

516,2

00

3,409,200

PROJECTED CASH FLOW FOR 2014

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC B.

TOT

B/F 781,00

0

781,90

0

791,70

0

801,40

0

813,20

0

827,6

50

837,20

0

856,90

0

875,30

0

889,00

0

906,80

0

926,55

0

10,088,60

0

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Sales 50,000 51,000 52,000 51,000 52,000 53,00

0

55,000 55,000 56,000 60,000 62,000 68,000 665,000

Debts - - - 3,000 5,000 - 6,000 3,000 - - 5,000 - 22,000

Total 831,00

0

832,90

0

843,70

0

855,40

0

870,20

0

880,6

50

898,20

0

914,90

0

931,30

0

949,00

0

973,80

0

994,55

0

10,775,60

0

Expenses

Purchases 11,000 12,000 10,000 13,000 12,000 12,00

0

11,000 10,000 12,000 13,000 13,000 15,000 144,000

Wages &

Salaries

21,000 21,000 21,000 21,000 21,000 21,00

0

21,000 21,000 21,000 21,000 21,000 21,000 252,000

Licenses 9,000 - - - - - - - - - - - 9,000

Advertise

ment

- - 1,000 - 1,000 - 1,000 - 1,000 - 1,000 1,000 6,000

Water 800 800 900 900 900 950 900 950 850 800 850 900 10,500

Electricity 1,000 1,000 1,100 1,000 1,200 1,100 1,000 1,200 1,000 1,100 900 1,200 12,800

Telephone 800 900 800 800 950 900 900 950 950 800 1,000 1,000 10,750

Transport 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

Installmen

ts

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

Repair &

Maintenan

ce

- - 2,000 - - 2,000 - - - - 4,000 - 8,000

Miscellan

eous

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

Total 49,100 41,200 42,300 42,200 42,550 43,45

0

41,300 39,600 42,300 42,200 47,250 45,600 519,050

Net Profit 781,90 791,70 801,40 813,20 827,65 837,2 856,90 875,30 889,00 906,80 926,55 948,95 10,256,55

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0 0 0 0 0 00 0 0 0 0 0 0 0

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PROJECTED INCOME STATEMENT FOR YEAR ENDING 2013, 2014, 2015

ITEM YEAR 1 YEAR 2 YEAR 3

Cash sales

Credit sales

Sub-total (I)

Opening Stock

Purchases

Less closing stock

Cost of goods sold

Sub-total (II)

TOTAL (I-II) (Gross Profit)

Expenses

Wages and salaries

Advertisement

Water

Electricity

Telephone

Transport

Repair and maintenances

Loan re-payment

Licenses

Miscellaneous

Sub-total

Less depreciation at 5% on

material and equipment.

TOTAL

Profit before tax

Tax at 10%

Net profit after tax

922,000

18,000

940,000

-

163,000

15,000

148,000

133,000

807,000

180,000

3,000

6,300

10,500

10,000

12,000

2,000

41,000

5,000

18,000

260,800

5,952.50

254,897.50

552,102.50

55,210.25

496,892.25

636,000

33,000

669,000

15,000

132,000

17,000

130,000

133,000

536,000

180,000

3,000

6,252

10,250

11,700

12,000

2,000

24,000

5,000

18,000

272,200

5,952.50

266,247.50

269,752.50

26,975.25

242,777.25

665,000

22,000

687,000

17,000

144,000

10,000

151,000

141,000

546,000

252,000

6,000

10,500

12,800

10,750

18,000

8,000

24,000

9,000

24,000

385,550

5,952.50

379,597.50

166,402.50

16,640.25

149,764.25


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PROFORMA BALANCE SHEET

ITEM

ASSETS

ENDING

31/12/12

ENDING

31/12/13

ENDING

31/12/14

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CURRENT ASSETS

Cash

Debtors

Purchases

Closing stock

Total current assets

FIXED ASSETS

Materials and equipments

Less acc. Depreciation

Total fixed assets

TOTAL ASSETS

LIABILITIES

Current Liabilities

Creditors

Taxes

Accruals

Total Current Liabilities

LONG TERM LIABILITIES

Youths Community Loan

Owners Equity

Family contribution

Total

Total Liabilities

516,200

18,000

163,000

15,000

712,200

119,050

5952.50

125,002.50

837,202.50

261,202.50

10,000

66,000

337,202.50

250,000

50,000

200,000

500,000

837,202.50

781,000

33,000

132,000

17,000

963.000

119,050

5,952.50

125,002.50

1,088,002.50

365,002.50

10,000

73,000

448,002.50

290,000

100,000

250,000

640,000

1,088,002.50

948,950

22,000

144,000

10,000

1,124,950

119,050

5,952.50

125,002.50

1,249,952.50

217,952.50

10,000

92,000

319,952.50

360,000

180,000

390,000

930,000

1,249,952.50

FIXED COSTS YEAR 1

KSHS

YEAR 2

KSHS

YEAR 3

KSHS

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Salaries

Loan re-payment

Licenses

Transport

Miscellaneous

TOTAL

VARIABLE COSTS

Purchases

Advertisements

WaterElectricity

Telephone

Repair and maintenance

TOTAL

180,000

14,000

5,000

12,000

18,000

229,000

163,000

3,000

6,30010,000

2,000

184,300

180,000

24,000

5,000

12,000

18,000

239,000

132,000

3,000

6,25010,250

11,700

2,000

165,200

252,000

24,000

9,000

18,000

24,000

327,000

144,000

6,000

10,50012,800

10,750

8,000

192,050

WORKING CAPITAL

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This is the same as operating capital which measures the flow of cash and the ability of the firm to

maintain its cash or liquid assets to compute the working capital.

CURRENT ASSETS

Cash

Debtors

Purchases

Closing stock

Total current Assets

CURRENT LIABILITIES

Creditors

Accruals

Taxes

Total current Liability

Working Capital

YEAR 1

516,000

18,000

163,000

15,000

7,122,000

261,202.50

66,000

10,000

337,202.50

374,997.50

YEAR 2

781,000

33,000

163,000

17,000

963,000

365,002.50

73,000

10,000

448,002.50

514,997.50

YEAR 3

948,950

22,000

144,000

10,000

11,249,500

217,952.50

92,000

10,000

319,952.50

10,929,548

DESIRED FINANCING

FOR THE FIRST 3 MONTHS Kshs.

1 Purchase 37,000

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2. Wages and salaries 54,000

3 Licenses 15,000

4 Telephone 5,500

5 Electricity 5,500

6 Water 4,800

7 Transport 4,000

8 Miscellaneous 5,200

9 Tools and equipment 119,050Total cash 270,050

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ANNEX 1

BIOGRAPHIES OF THE COMPANY OWNERS

Jeff Mokaya has over fifteen years professional experience in related aspects of management

covering various hotel industries. He has gained global exposure in this sector having been engaged

on many duties and assignments related to the provision of food distribution and management

services to clients in Boston Massachusetts USA .He is a creative Chef de Cuisine as well He has

been in charge of introducing new, creative and contemporary delicacies in addition to the main

dishes offered. In his previous engagements is responsible for creating and implementing seasonal

He has been a team leader on various market research and market segmentation assignments. Ben

has good communication and interpersonal skills. He is fluent in English, Kiswahili, Arabic and

French German and is conversant with international standards in hotel management. He holds a

rich experience in hospitality field. Ben has a bachelor of commerce (Accounting and Marketing

option) , A Bachelors degree in Mathematics and Currently pursuing a Masters degree psychology

at the Boston University USA Ben has gained vast experience by playing key roles in the duties

and assignments that he has undertaken in various location in and out of Kenya. He also developed

the financial and administrative procedures manuals for big players in the Hotel Industry in

America.

Nasra Ajmina kicked off her career as a Sales Executive in 2012 at KFC , She is a Business

Administration graduate from Presbyterian University of E. Africa. She has a wealth of knowledge

in consumer goods and customer care.

.

j&n business plan

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