Bussiness Plan (Coursework Sample)

DECLARATION
I Melina Achieng do hereby declare that this business plan is my original work. It has never been presented by any examination body for an award of certificate. It’s officially approved by the supervisor.
Author: Melina Achieng
Admission no: 2151
Signature: ……………………………………………….
Date: …………………………………………………
Supervisor: Mr. Maruti Dennis
Signature: ……………………………………………………
Date: ……………………………………………………..
DEDICATION
Special dedication goes to my beloved brother Abner, Angara who supported me both financially and morally and even for the encouragement throughout the course not forgetting my teacher and classmates who also greatly contributed towards my success.
ACKNOWLEDGMENT
Special regards to the Almighty God who has taken me this far, my brother Abner for the support throughout, my lecturers who assisted me during the writing of the business plan. Mr. Robert, Mr. Maneti, Mr. Kangethe and lastly my fellow students who we worked hand in hand to make sure the business plan is successfully done. Amen.
TABLE OF CONTENTS TOC \o "1-3" \h \z \u DECLARATION PAGEREF _Toc400608362 \h iDEDICATION PAGEREF _Toc400608363 \h iiACKNOWLEDGMENT PAGEREF _Toc400608364 \h iiiTABLE OF CONTENTS PAGEREF _Toc400608365 \h ivCHAPTER ONEEXECUTIVE SUMMARY1.1BUSINESS DESCRIPTION PAGEREF _Toc400608368 \h 11.2 MARKETING PLAN PAGEREF _Toc400608369 \h 11.3 ORGANIZATION AND MANAGEMENT PLAN PAGEREF _Toc400608370 \h 11.4 OPERATION PLAN PAGEREF _Toc400608371 \h 21.5 FINANCIAL PLAN PAGEREF _Toc400608372 \h 2CHAPTER TWOBUSINESS DESCRIPTION2.1BUSINESS NAME PAGEREF _Toc400608375 \h 32.2BUSINESS LOCATION AND ADDRESS PAGEREF _Toc400608376 \h 32.3FORM OF OWNERSHIP PAGEREF _Toc400608377 \h 42.4TYPE OF BUSINESS PAGEREF _Toc400608378 \h 42.5PRODUCTS AND SERVICES PAGEREF _Toc400608379 \h 42.6JUSTIFICATION OF OPPORTUNITY PAGEREF _Toc400608380 \h 42.7INDUSTRY PAGEREF _Toc400608381 \h 52.8GOALS OF BUSINESS PAGEREF _Toc400608382 \h 52.9ENTRY AND GROWTH STRATEGY PAGEREF _Toc400608383 \h 62.9.1ENTRY STRATEGY PAGEREF _Toc400608384 \h 62.9.2GROWTH STRATEGY PAGEREF _Toc400608385 \h 6CHAPTER THREEMARKETING PLAN3.1POTENTIAL CUSTOMERS PAGEREF _Toc400608388 \h 73.2MARKET SHARE PAGEREF _Toc400608389 \h 73.3COMPETITION PAGEREF _Toc400608390 \h 83.4METHOD OF ADVERTISING AND PROMOTIONAL STRATEGIES PAGEREF _Toc400608391 \h 93.5PRICING STRATEGY PAGEREF _Toc400608392 \h 93.6SALES TACTICS PAGEREF _Toc400608393 \h 103.7DISTRIBUTION STRATEGY PAGEREF _Toc400608394 \h 10CHAPTER FOURORGANIZATION AND MANAGEMENT PLAN4.1BUSINESS MANAGER PAGEREF _Toc400608397 \h 114.2OTHER PERSONNEL NUMBER AND DUTIES PAGEREF _Toc400608398 \h 124.3RECRUITMENTS, TRAINING AND PROMOTIONS PAGEREF _Toc400608399 \h 134.3.1RECRUITMENT PAGEREF _Toc400608400 \h 134.3.2TRAINING PAGEREF _Toc400608401 \h 144.3.3PROMOTION PAGEREF _Toc400608402 \h 144.4REMUNERATION AND INMCENTIVES PAGEREF _Toc400608403 \h 144.4.1.REMUNERATION PAGEREF _Toc400608404 \h 144.4.2.INCENTIVES PAGEREF _Toc400608405 \h 154.5LICENCES, PERMITS AND BY-LAWS PAGEREF _Toc400608406 \h 154.5.1LICENCES PAGEREF _Toc400608407 \h 154.6SUPPORT SERVICES PAGEREF _Toc400608408 \h 16CHAPTER FIVEOPERATION AND PRODUCTION PLAN5.1PRODUCTION FACILITIES AND CAPACITIES PAGEREF _Toc400608411 \h 175.1.1MONTHLY EXPENDITURE RECORD INVOLVE PAGEREF _Toc400608412 \h 185.1.2GROUND LAYOUT PAGEREF _Toc400608413 \h 195.2PRODUCTION STRATEGY PAGEREF _Toc400608414 \h 195.3PRODUCTION PROCESS PAGEREF _Toc400608415 \h 205.4REGULATION AFFECTING OPERATION PAGEREF _Toc400608416 \h 21CHAPTER SIXFINANCIAL PLAN6.1PRE-OPERATIONAL PAGEREF _Toc400608419 \h 226.2WORKING CAPITAL PAGEREF _Toc400608420 \h 236.3PREPARATION OF CASHFLOW PROJECTIONS PAGEREF _Toc400608421 \h 246.4PRO-FORMA INCOME STATEMENT PAGEREF _Toc400608422 \h 276.5PRO-FORMA BALANCE SHEETS PAGEREF _Toc400608423 \h 286.6BREAK EVEN CONTRIBUTION PAGEREF _Toc400608424 \h 306.7BREAK EVENM OF SALES IN SHILLINGS PAGEREF _Toc400608425 \h 316.8DESIRED FINANCING PAGEREF _Toc400608426 \h 326.9PROPOSED CAPITALIZATION PAGEREF _Toc400608427 \h 32
CHAPTER ONE
1 EXECUTIVE SUMMARY
1.1BUSINESS DESCRIPTION
This business will be called MELY DAIRY AND GROCERY ENTERPRISE. It will be owned by Melina Achieng who is also the sale proprietor of the business. The firm will be located in Ahero Centre. The business will be start-up and not a take over. It offers varieties of quality milk and yoghurt and it fall under the industry of agriculture sector.
1.2 MARKETING PLAN
MELY DAIRY AND GROCERY ENTERPRISE has the following customers; domestic customers from within the area, individual customers and institutional customers. The business competitors are the other business in the surrounding area who are well established and the business has come up with sales tactics, pricing strategy and measures of promoting and advertising to compete with the other competitors.
1.3 ORGANIZATION AND MANAGEMENT PLAN
The business Manager will be the proprietor of the business. Five people will be employed to assist the Manger in running the business i.e. purchasing officer, two salesmen, driver and watchman. The proprietor will be in charge of recruitment of employees and she will introduce incentives to boost morale of workers. The business will acquire a license to run the milk from county government. The business will be insured with Armaco Insurance Company.
1.4 OPERATION PLAN
MELY DAIRY AND GROCERY ENTERPRISE will run efficiently because it has all the required equipments and facilities to run the business effectively. These facilities and equipment will be maintained by a reputable company after every three months. In order to maintain and retain customers the business intends to come up with a production strategy and process which will ensure high quality products are produced to satisfy customers’ needs. Certain factors will affect the production and operation of the business this include government policy, labour laws and health regulations. the business will also hire support services to ensure that it is able to function effectively.
1.5 FINANCIAL PLAN
The preparation cost required is amount to Kshs. 1,508,770.00 which will lead to a good start of the business. the working capital required is Kshs. 73,220.00 for the first year, Kshs. 35,550.00 for the second year and Kshs. 205,000.00 for the third year. After drawing a cash flow statement of the business estimates to earn net profit of LKshs. 896,040.00 for the third year for second year Kshs. 548,100.00 for the first year 27,000.00.
CHAPTER TWO
2 BUSINESS DESCRIPTION
1 BUSINESS NAME
The name of the business will be MELY DAIRY AND GROCERY ENTERPRISE; it will be dealing with milk and its products as well as groceries. The name MELY is derived from the sponsor’s first name. The name is most suited for the business and the other part of the name shall be used as a tool for marketing, as any person who reads can know what to expect in the shop.
2 BUSINESS LOCATION AND ADDRESS
The business will be located about 500m from the Petrol station towards Kisumu, Kagoya house ground floor door no.3. This is an ideal place as it is close to the bus terminals and most travelers can have some of our product while waiting for bus or take a ways. The location will offer the business upper hand compared to other competitors who are locate a distance away from the main road.
The business address will be;
MELY DAIRY AND GROCERY ENTERPRISE
P.O.Box; 4687
Ahero.
Tel: 0715575906
Web site;
Email; info@melydairyandgroceryenterprise.com
3 FORM OF OWNERSHIP
The business will be owned by Melina Achieng. The business will be a sole proprietor business which requires a capital of Kshs. 1,500,000.00 if which Kshs. 7000,000.00 will be persona saving and the remaining amount will be contribution from friends and family and borrowing from bank.
4 TYPE OF BUSINESS
The proposed business will be kind of business dealing with production and processing milk, cheese, butter, yoghurt and mala. It will also be stoking varieties of groceries i.e. beans, pees, sorghum, rice, millet among others, the business will also offer soft drinks to its clients like soda and snacks i.e. crisp, biscuits among others. The products will be sold to individual consumers as well as corporate entities. Despite milk and groceries being the main products the business will also venture into selling of cakes on orders and also in small quantities to our clients.
5 PRODUCTS AND SERVICES
The business intends to produce high quality milk products which will be consumable by human being these products includes; cream, mala, butter, cheese and yoghurt. The pricing of products depends on the demand in the market and also the total expenses of ingredients to be used to produce. Stocking of groceries, drinks like sodas and snacks shall ensure that the business provide variety of products to our customers apart from our main product which is milk. all the products will be packed in attractive packets which will make...