BUSINESS PLAN

TITLE : DAN RESTAURANT

PRESENTER : DANIEL EIPI EWOI

INDEX NUMBER 5011100024

CENTRE CODE : 501110

EXAM SERIES : JULY 2024

PAPER CODE : 1405/316B

COURSE : CRAFT CERTIFICATE IN GENERAL

AGRICULTURE

CENTRE : LODWAR TECHNICAL AND

VOCATIONAL COLLEGE

PURPOSE : THIS BUSINESS PLAN IS PRESENTED TO THE

KENYANATIONAL EXAMINATION COUNCIL FOR THE PARTIAL
FULFILMENT OF THE AWARD OF CRAFT CERTIFICATE IN GENERAL
AGRICULTURE
 DECLARATION
I declare that this business is my original work and has never been presented to any examination
body for awarding.

NAME: DANIEL EIPI EWOI

SIGNATURE: …………………….

DATE: ………………………………

SUPERVISOR NAME: MR AKOLONG EKIRU

SIGNATURE: …………………………..

DATE: ……………………………………

ii
 DEDICATION
I dedicate this business plan to my parents’ brothers and sisters and also the lecturers for the
contribution and support toward the accomplishment of this business plan.

iii
 ACKNOWLEDGEMENT
I wish to express my sincere appreciation to the Almighty God who enabled me to produce this
work. Secondly I am indebted to my lecturer at Lodwar Technical Vocational College for their
support, comments and motivation during the preparation of this business plan. I also
acknowledge my parents for financing the production of this business plan.

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Table of Contents
DECLARATION ............................................................................................................................................... ii
DEDICATION ................................................................................................................................................. iii
ACKNOWLEDGEMENT .................................................................................................................................. iv
EXECUTIVE SUMMARY ............................................................................................................................ vii
1. Introduction .......................................................................................................................................... 1
1.1. Business name........................................................................................................................... 1
1.2. Business location/address......................................................................................................... 1
1.3. Location ..................................................................................................................................... 2
1.4. Business Ownership .................................................................................................................. 2
1.5. Capital investment ................................................................................................................... 3
1.6. Types of Business ...................................................................................................................... 3
1.7. Production Service ................................................................................................................... 3
1.8. Industries .................................................................................................................................. 3
1.9. Justification of Opportunity ...................................................................................................... 4
Short team goals of the business .............................................................................................................. 4
Long team goals of the business ............................................................................................................... 4
1.11. Entry and growth strategy ........................................................................................................... 5
2. Introduction .......................................................................................................................................... 6
2.1. Potential Customers....................................................................................................................... 6
2.2. Market Plan .................................................................................................................................... 6
After a period of two years, the market share is expected to change as shown below .......................... 6
2.3. COMPETITORS ................................................................................................................................ 7
2.4. Methods of advertising and promotion ......................................................................................... 7
2.5. Pricing strategy .............................................................................................................................. 7
DAN Hotel . ............................................................................................................................................... 8
2.6. Sale Tactics ..................................................................................................................................... 9
2.7. Distribution Strategy ...................................................................................................................... 9
2.9. Serving............................................................................................................................................ 9
2.10. Packaging ..................................................................................................................................... 9
2.11. Warranties ................................................................................................................................... 9
3. Introduction ........................................................................................................................................ 10
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 3.1. Organizational structures........................................................................................................ 10
Key management personnel ................................................................................................................... 10
3.2.1. Manager .................................................................................................................................... 11
3.2.2. Assistant manager .................................................................................................................... 11
3.2.4. Secretary ................................................................................................................................... 11
3.2.5. Other business personnel ......................................................................................................... 11
a) Security guard ..................................................................................................................................... 11
c) Driver................................................................................................................................................... 12
d) Cooks .................................................................................................................................................. 12
3.3. Recruitment, training, promotion of employees .................................................................... 12
3.4. License permit and by- lows ................................................................................................... 13
3.5. Other support services ............................................................................................................ 13
CHAPTER FOUR: PRODUCTION OPERATION PLAN ..................................................................................... 15
4. Introductions ...................................................................................................................................... 15
4.1. Production facilities and machines ......................................................................................... 15
4.2. Maintenance ........................................................................................................................... 15
4.4. Production process ................................................................................................................. 17
4.5. Regulation affection the operations ....................................................................................... 18
CHAPTER FIVE: FINANCIAL PLAN................................................................................................................. 19
5. Introduction ........................................................................................................................................ 19
5.1. Pre operation cost ................................................................................................................... 19
5.2. Working Capital ....................................................................................................................... 20
5.4. Projected cash inflow statement for 2022.............................................................................. 27
5.5. Projected cash inflow statement for 2023.............................................................................. 30
5.10. Desired Finance.......................................................................................................................... 32

vi
 EXECUTIVE SUMMARY
The executive summary gives the general description of what is contained in the business
description, marketing plan, organizational plan, operational plan and finance plan.

BUSINESS DESCRIPTION

This chapter will explain and give out the names of the business which will be registered by and
operated under. The name is Dan Restaurant ., the location and address, form of ownership,
capital investment type of business, benefits of the business, the business entry and growth
strategy and analysis market plan

MARKET PLAN

The following factors would be outlined: targeted customers, their needs and demands,
competition, method of promotion and advertisement, pricing strategy sales tactics and
distribution strategies.

ORGANIZATION PLAN

The chapter will pair the organization structure, key management personnel, recruitment trained
and promotion of personnel, legal requirements, and remuneration and inceptives for personnel
and support services etc.

PRODUCTION PLAN

The chapter will be concerned with operation facilities, equipment, production strategies or
operation process etc.

FINANCIAL PLAN

The chapter will figure out the factors that facilitate the management of funds in business e.g pre-
operational cost, working capital performance cash inflows, performance income statement,
projected balance sheet breakeven point analysis and expected profitability ratio.

vii
 CHAPTER ONE: BUSINESS DESCRIPTION

1. Introduction
The name under which the business will be registered and managed by is Dan Restaurant.
. The hotel is located in Lodwar Town. It will be in a form of sole proprietorship

1.1. Business name

(a) the proposed business name will be called Dan Restaurant .
(b) It will start with a capital of one million and seventy thousand to buy the product
for food materials and redesign the Inn service. The services to be offered are
provision of guest houses and catering services.

1.2. Business location/address

Dan Restaurant.

P.O BOX 101-30500,

. LODWAR.

Email: ewoidaniel@gmail.com

1
1.3. Location
The business is located at Lodwar town along the prison road on your way to Lodwar Airstrip.

To airstrip

Dan restaurant
prison

Lodwar- kitale road

1.4. Business Ownership

The proposed business will be the sole proprietorship form of the business owned by DAN
Restaurant.

1.3.1. Form of Ownership

The proposed business is preferred to be a sole proprietorship due the following characteristics
and benefits; capital investment needed is minimal as compared to other forms of business. This
is because one can use self saving. Again family members can assist in running the business.
Thus reducing cost of labour, unlike other forms. sole proprietorship does not have to adhere to
legal formalities as may required by the government, although profit accumulation maybe
limited, but the risk of losses may be minimal due to its flexibility nature.

1.3.2. Proprietor Profile

The business owner is Daniel eipi. She also transforms DAN Restaurant from small to a large
scale kind of business.

2
 1.5. Capital investment
Source Amount
Personal savings 700,000
Family contribution 220,000
Borrowings from bank (KCB) 150,000
Totals 1,070,000

1.6. Types of Business

The proposed business will provide service to the people at a profit because it will be in a place
where people can easily access meals at an affordable price. At the same time the customers will
easy time to access a place to rest without getting worried on traffic and time. The rooms will
have an Air Conditioner to serve them with fresh air circulation. Pre-ordering for meals in
advance will be allowed and taken care of accordingly.

1.7. Production Service

The proposed business will be dealing with all kinds of food stuff which are mainly used by area
residents. Like different types of fish, beams maize, wheat flour, vegetables beverages and
drinks, spices and many other food staffs including traditional food will be served. Those
products are economical and convenient to obtain them. This will bring conformity to the
surrounding people because there is very stable food the source of product is economical because
will be obtained at Lodwar town which is near to the business thus reducing the transportation
cost.

1.8. Industries
The proposed business belongs to the hotel and hospitality industry. The size of the industry in
the region is large because the number of similar products which offer the same services and this
indicates that the completion is very stiff. The proposed business will employ labor intensive
methods of technology than capita intensive one.

3
 1.9. Justification of Opportunity
The location of the proposed business will be favorable to it because the following factors was
considered:

 Availability of security
 Good transport network to and from the source of product.

The business is set near the junction which facilitate easy access of business by customers, water
and electricity. Power is always flowing. population in the region is always large enough that
will provide highly market for the services required

1.10. Business goals and objectives

The goals of the business are to provide quality work and market profit

Short team goals of the business

 To make profit
 Ensure business is stable
 Providing quality work
 Ensure for satisfactory of customers need

Long team goals of the business

 Future expansion of the business from small scale to large scale kind of business
 Profit maximization will be another goal and this will be facilitated by increasing the sale
 SWOT analysis which includes how to deal with competition in the industry by laying
down and implementing possible strategies
 Lowering the cost by purchasing own vehicle to be used for transportation of products
from source to the business

4
1.11. Entry and growth strategy

1.11.1. Entry Strategy

Several strategies and techniques will be employed to enable the proposed business enter in the
market. This will include use of advertisement to create the awareness of the availability of the
business in the market, selling its product at reduced prices to attract more customers.

1.11.2. Growth strategy

The growth of the business will be determined by the quality and quantity of the product offered
and thus various strategies should be kept in place to ensure what is offered to customers satisfy
their needs fully and by so doing, the growth of the business will be assumed. Competition
analysis will be made to provide possible strategies to be followed when dealing or to cope with
any rising competitor.

1.11.3. SWOT analysis

Business name Strengths weakness opportunities Threats
Doris HOTEL Efficient transport Unskilled Qualified staff Employees not
and employees, poor and good quality qualified
communication advertisements products and
and marketing services
strategies.

Betty HOTEL Qualified staff Inadequate Good marketing Inflation in the

good location capital to run the of the product country
business

DAN Restaurant. Good customers Poor supervision Good Prone to lose due
relation and and responsibility infrastructure to poor
marketing supervision

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 CHAPTER TWO: MARKETING PLAN

2.0 Introduction
The chapter wills basically describe how the proposed business is going to sell its product and
offer services. It identifies the potential customers, competitor’s market shares pricing method
packaging techniques sales and distribution techniques, methods of promotion, warranties and
servicing.

2.1. Potential Customers

This section identifies potential customers, which includes classification of customers who are
individual and institution. The customers are general aged have moderate level of income,
educate level and positive belief the goods and services

2.2. Market Plan

The target by the proposed business will be medium but the number is expected to rise in the
course of business progress. The estimated castors will be as shown by drawing representation
below on daily basis compared to that of competitor’s analysis.
Business name Number of customers Percentages
Doris’s hotel 350 30%
Betty hotel 220 23%
DAN Restaurant 520 47%

TOTALS 1090 100%

After a period of two years, the market share is expected to change as shown below
Business name Number of customers Percentages
Dan Restaurant 470 40%
Doris’s hotel 250 27%
Betty hotel 410 33%
TOTALS 1130 100%

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2.3. COMPETITORS
The proposed business will face stiff competition from closely located competitors who offer
similar products and of the same size. Doris’s hotel is located 100 meters west part of the
business has good business customers relation and good marketing strategies, Betty hotel on the
other hand is located 130 meters south part of the business it has good transport and its location
is strategically located. Above all DAN Restaurant. will use all methods and techniques to
remain the most competitive firm

That offers quality goods and services by employing qualified staff and adequate method of
management.

2.4. Methods of advertising and promotion

2.4.1. Advertisement
Advertisement will be used to greater awareness of the business to the public. Therefore, various
methods of advertising will be put in place including media group like radio, television, nation
and magazine. The advertisement will be designed to take place weekly and the estimate amount
for the whole operation will cost 25 thousand shillings

2.4.2. Promotion
This method intends to buy more of raw firm products thus increasing sales hence profit will be
attained. Methods to be used may include discount on commodities offered: in personal selling
that will build customers relationship and change the reputation of the firm also techniques of
promotion like samples, cooption and premium. The amount of carrying on promotion will go up
to 1000 shillings

2.5. Pricing strategy

Pricing of the commodity will be influenced by the nature of the competitor in the market:
pricing can either be below that of the competitors or the level to that of the competitors at the
profit. The cost of the production wills determines the price in that of the price set for the
commodity will cover its production cost and earn profit. Discount to be offered is cash discount
DAN Restaurant. actual selling price is represented in the menu below

7
 DAN Restaurant .
Nature of food Price in shillings
(a) Snacks

1. Chai 40

2. Ndazi 20

3. Chapati 50

4. Uji (per cup) 30

(b) Meals
1. Beans plain 50
2. Fish fry 260
3. Meat fry 100
4. Ugali plain 60
5. Kunde ugali 80
6. Ugali mix 100
7. Ndegu plain 55
8. Managu ugali 110
9. Rice 65
(c) Beverages
1. Soda 300 ml 60
2. Mango juice 80
3. Orange juice 70
(d) Inn section
1) Executive rooms;
i. Single 1500
ii. Double 2500
2) Regular rooms single 1000

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2.6. Sale Tactics
This section clearly indicates the selling methods the business wish to use to reach the customers.
It includes personal selling, using agents and getting orders from customers in order to improve
satisfaction of customers need

2.7. Distribution Strategy

The channel of distribution to be used by proposed business will be zero distribution channels
where by customers will be getting services within the business premises. Nevertheless, the
channel of distribution of the products from the producers to the business will be carefully
selected to ensure steady supply with no delays. The proposed channel will involve three
intermediaries that are.

Producers, wholesaler’s retailers

proposed business destination

2.9. Serving
The proposed business will be offering a favorable service to attract more customers and
enhancing its reputation. Free breakfast will be offered to customers who will spend a night in
the restaurant.

2.10. Packaging
The packaging will be designed in a manner of attraction by ensuring a variety of colors are used
for packaging

2.11. Warranties
Warranties in hotel based may not be necessary because it will only provide or produce daily
conceptions but in case of packed food and drinks the warranties of one week will be a sure to
customers but this applies in a few cases in such kind of business.

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 CHAPTER THREE: ORGANIZATION AND MANAGEMENT PLAN

3. Introduction
The proposed business will be coordinated and operated by manager who will be in charge of all
activities and give direction to other subordinates. It will also have a room for assistant manager
who will be planning and organizing day to day operations accountants will be dealing in
financial affairs by ensuring depths are paid and preparing financial statement of the business

3.1. Organizational structures

Manage

Assistant manager

Accountant

Casher Driver Cleaners Sales man Cook

3.2.

Security guard

Key management personnel

The recruitment of the personnel will be determined by the level of education, working
experience and skills age and other additional profile.

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 3.2.1. Manager
Will be Daniel eipi, the owner of the business. She is a student pursuing a craft DIPLOMA
Course in Community development and Social Work. She is twenty-one years old and a mother
of one girl. Her main task will be to coordinate all activities of the firm and give advice and
direction to other subordinate.

3.2.2. Assistant manager

She/he will be on average 30 years old with a diploma in human resource management, have two
years experiences an assistant manager. This task will be to carry out managers activities in his
absence and mainly plan to organize day to day operation

3.2.3. Accountant:
Be 24 years old have a diploma in accounts and has one year experience as an assistant
accountant. Her/his main task will be in charge of all financial matters like obtaining and paying
employees, preparing financial statement of the business, and advising top management on any
losses incurred and how to recover it.

3.2.4. Secretary
Below 25 years old, a lady who has a DIPLOMA in secretarial management and she is a
computer literate. Her main task is to option orders and attend business meetings.

3.2.5. Other business personnel

Apart from the top management personnel the proposed business will be run by other employees
who will include:

a) Security guard

35-year-old and have security experience from G4S Company limited. The main task is

to provide security and control the floor of information and people to the business.

b) Cashier

She is a computer literate. She has seven years’ experience as a cyber attendant. Her task is to
issue receipts and collection of cash made by customers.

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 c) Driver

Have a license in driving and one year experience, his task is to carry purchases into the firm and
give commuter services for the staff and customers.

d) Cooks

They will be fewer in number and must be a diploma holder in hotel and catering, they must be
at least two-year experience as chefs in famous business and their age should range between 30
to 35 years old.

3.3. Recruitment, training, promotion of employees

The recruitment of the employees will follow advertisement of various posts on the newspapers
and magazines, which will state the experience needed qualification and other credentials.

The training will involve a three years profession of employees to enable them get use to
strategies, formulated by the business, also time will enable the supervisors to monitor their level
of experience the promotion will be based on the performance of employees. Promotion from a
lower rank to a higher rank or salary incensement to effort and best performing employees will
be affected.

3.5 Remuneration incentives for personnel

Position Salary (kshs) Allowance Commissions Retirement
(kshs)
Manager 70,000 10,000 20% of basic Retirement benefits will
salary be 90,000 at the age of
65 years
Assistant 55,000 7,000 15% of the basic Retirement benefits will
manger salary be will be 75,000 at the
age of 65 years

An accountant 40,000 5,000 5% of the basic Retirement benefits will

salary be 60 thousand at the age
of 65

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Secretary 20,000 4,500 10% of the basic Retirement benefits will
salary be 75,000 at the age of 65
years

Casher 7,000 None 3% of basic Retirement benefits will

salary be 60,000 at the age of 65
years

Cooks 11,0000 each None None Retirement benefits will

be 90,000 at the age of 65
years

Security guard 8,000 None None Retirement benefits will

be 40,000 at the age of 45
years

Driver 9,000 None None Retirement benefits will

be 40,000 at the age of 50
years

3.4. License permit and by- lows

The proposed business wills adhere to the government policies by registering its self at Turkana
County government and obtaining license of operations. The cost of registration will add to
1,200 accompanied by 800 shillings annually paid for renewal of license.

It will also comply with other requirements of the pay laws like controlling the environment by
preventing air pollution and careless dumping.

3.5. Other support services

The proposed business will operate with institutions and organization that provides support to its
progress e.g

1. Insurance service
Insurance Company
Box P.O Box 450 Lodwar Branch
Lodwar Branch
2. Banking services

13
 Equity bank
Box P.O Box 102
Lodwar branch
3. Legal services
Penjamin and sons advocate
Box P.O box 2070
Lodwar
4. Post services Kenya Postal services Box P.O Box 101-50300 Lodwar

14
 CHAPTER FOUR: PRODUCTION OPERATION PLAN

4. Introductions
The proposed business as it will be offering services to its customers, has proper strategic plan
that ensures product been served one of high quality. The layout of the business will be
organized in the manner that will ensure enough space for movement, assets in relation to the
business-like chairs, tables utensils and cooking gas would be supplied or obtained from various
machines like fridges for preservative purpose and fire extinguishers for emergency of fire
outbreak have to be filtered and well chicken meat will be obtained from local farmers in large
quantities, beverages to be supplies by coca cola company. Mathematical machines like
computers for accountants

4.1. Production facilities and machines

The table below shows production facilities equipment and machine in order for the business
to operate
Facilities Source Capacity Cost (Kshs)
Chairs Mazda poly 16@ 400 6,400
Table Ken poly 4@600 2,400
Cooking gases Makupa 5@2,000 10,000
Fridge Cocacola 2@700 14,000
Utensils Cheru wholesale 10 Sufurias 8,000
20 plates
100spoos
4.2. Maintenance
The maintenance of the machine will involve carefully handling of the machine to provide long
last especially break able utensils. Repaired of machines and fixed a sets like tables and chairs
will be done by Mushoka Repairs Ltd on bailment deal replacement will also be done for the old
and damaged equipments, the cost of maintenance will go up to shillings 12,000 but it will
depend on the rate of the factory.

15
 Manager office

Accountant

Televisio Kitche
Counter
n

Dinning
room

doo
Pool table
r

Swimming
pool

Vehicle
Main gate
Secure guard
4.3. Production Strategy
The proposed will be used economically and most affordable materials to facilitate its
production. The monthly materials required and amount of labour required in production process
will be as stated in the following table

4.3.1. Monthly materials requirement

Materials Cost Source
Wheat flour 60,000 Dola
Sugar 80,000 Mumias produce
Cooking oil 40,000 Kappa oil refinaries
Maize flour 54,000 Pembe
Chicken for meat 45,000 Kifarangaa farmers
organization

Milk 70,000 Fresher and ilara broakside

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 Tea leaves 30,000 Ketepa Kenya Ltd
Vegetables 40,00 Katilu traders
Maize grains 25,000 Kitale disstributers
Beans and rice 60,000 Shanzu wholesellers
Totals 504,000
4.3.2. Monthly labor requirements
It is represented by the table below
Personnel Payment Basic salary (Kshs) Allowance (Kshs)
Manager Monthly 70,000 10,000
Assistant manager Monthly 55,000 7,000
Accountants Monthly 40,000 5,000
Secretary Monthly 20,000 4,500
Cashier Monthly 7,000 N/P
Cook(s) Monthly 55,000 N/p
Drivers Monthly 9,000 N/P
Total 264,000 26,500
4.3.3. Monthly preliminary cost
Particular Cost
Telephone 5,000
Postage 600
Travelling 2,000
Receipt book 3,000
Total Kshs 10,600
4.4. Production process
The production process set for the business will be cooking of food and materials acquired as per
menu provided. The proposed business will employ self services method of production whereby
the customer will pay to the counter and obtain a relevant meal out of the saving counter. This
system will reduce labor cost because few employees will be used to serve the customers, the
supply of materials will be steady by few challenges will be incurred in firm produce due to

17
wheatear and climate changes, but this will be recovered by paying and storing large quantities
of such commodities to act as a buffer incase of produce shortage.

4.5. Regulation affection the operations

The proposed busses will highly affected by regulation imposed by the government before it
commence it operation like acquisition of trade license that will requires registration and
monthly renewal cash of not less than 12,000 and 8,000 respectively it will also adhere to the
compulsory membership as national environment regulations, trade union . This organization
will affect the business because it form additional cost.

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 CHAPTER FIVE: FINANCIAL PLAN

5. Introduction
This chapter mainly determines how and where the proposed business will acquire finance the
proposed business owner will finance the business through his personal savings, family
member’s contribution and borrowings of cash from bank institution.

The financial statement will be realized every year to monitor and access the progress of the
business at a profit. For this to be done successfully the proposed business will recruit qualified
personal in accounts department

5.1. Pre operation cost

These are the cost that the proposed business will incur before it commence its operational. It
includes cost essential facilities and equipment necessary when starting a business , they are
shown in the table below
Particulars Cost
Rent 15,000
License 8,000
Water bill 12,000
Electricity bill 14,500
Advertisement 25,000
Stock 430,000
Total 504,000

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 5.2. Working Capital
Particulars 1st Year 2nd Year 3rd Year
Fixed Assets (Shs) (Shs) (Shs)

20
Furniture( tables and 40000 45000 60000
chairs) Machines 35000 35000 37500
(computer) Refrigerator 12500 12000 11500
Cooking machine(gas) 50000 75000 80000
Cash in hand
107000 150000 220000
Cash at bank
200000 320000 340000
Debtors
35000 23000 15000
Total Assets 909,500 1,190,000 1,314,000
Liabilities 15000 40000 50000
Current Liabilities 40000 45000 65000
Creditors Bank
Overdraft
Total liabilities 55,000 85,000 115,000
Working capital 71,700 938,000 1,010,000
Working
capital^ CA-
CL (1st year
71700)

2
5
 5.3. Projected cash inflow statement for 2021
MONTH JAN FEB MAR APRIL MAY JUN JULY AUG SEPT OCT NOV DEC TOTAL
Cash inflows
Beginning 107000 1500 504500 70680 560720 141080 519060 88440 711510 165740 463960 360455 451145
capital
Cash sales 750000 914300 80000 850000 878000 1009920 910000 980000 675000 765000 840600 930700 9583520
Debtors 90000 80000 442500 217920 189320 83720 87000 258760 85000 310260 99650 147625 2004755
Total Cash 947000 995800 1027000 1138600 1138000 1234720 1516060 1327200 1471510 1241000 1404210 1438780 14879880
inflow
Cash out flow
Pre- 504500 504500
operational
cost
Purchase 9500 1520000 120000 175000 109200 240200 260000 185000 200000 275600 170000 300000 2294000
Creditors 15000 20000 18500 13500 12000 13700 15000 22300 16750 18000 23000 10000 197750
Expenses
Salaries and 264000 264000 264000 264000 264000 264000 264000 264000 264000 264000 264000 264000 3168000
wages
Electricity 9500 9000 8000 8500 7800 12000 10200 4650 8000 8000 7235 9800 102685
Rent 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 144000
Water bill 13000 7800 9000 13200 11000 10000 7800 11700 13500 14200 69000 10600 128700
Transport - 1500 504500 70680 560720 141080 840120 88440 773020 165740 536920 - 3682720
Advertisement 5000 5000 3000 2000 3700 6700 4500 6600 4300 4000 5200 2780 52780

2
6
 License fee 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000
Miscellaneous 7500 12000 9320 11000 8500 7980 6000 13000 6200 7500 10500 10000 109500
Total cash 945500 491300 956320 577880 996920 715660 1427620 615690 1305770 777040 1043755 987635 10841090
outflow
Net profit 1500 504500 70680 560720 141080 519060 88440 711510 165740 463960 360455 451145 3718790

5.4. Projected cash inflow statement for 2022

Months Jan Feb Marc April May June July Aug. Sep Oct Nov. Dec Totals
h

Beginning 45114 8883 11658 14442 1817 222224 25468 28171 31812 358627 4098255 45093 28728380
capital 5 45 45 95 375 5 45 45 65 5 45

Sales 80000 7000 72035 81000 8500 716000 70000 80000 83225 900000 890000 93500 96536000
0 0 0 00 0 0 0

Debtors 74000 2170 62800 59000 4925 72000 80000 82300 85000 697000 60000 71230 835310
00 0 0 0

Total cash in 13251 1658 19489 23132 2716 301024 33268 36994 40985 455599 5048255 55155 39217290
floor 45 45 95 95 655 5 45 45 515 75 75

Purchases 11000 1500 17500 16000 1400 112000 16200 17300 18000 130000 200000 19500 1887000
0 00 0 0 00 0 0 0 0

2
7
Creditors 20000 1950 17200 21500 4000 32700 28000 25000 13100 12500 22400 24000 275900
0 0

Salary and 2640 26400 26400 2640 264000 26400 26400 26400 264000 264000 26400 3168000
wages 00 0 0 00 0 0 0 0

Electricity 9000 8500 7200 9500 6700 9700 8200 7840 7500 6900 8830 9910 99780

Rent 12000 1200 12000 12000 1200 12000 12000 12000 12000 12000 12000 12000 1440000
0 0

Water bill 12000 1140 9000 7000 8000 10000 12000 13800 10100 9820 7900 13730 124850
0

Advertiseme 3800 5000 4800 4120 8000 5 400 4040 4000 3000 6920 59130
nt 6710 3340

Licence fee 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000

Miscelenious 10000 1410 75 00 9800 9000 7000 10000 11200 13500 10500 12780 11940 127320
0

Total cash 43680 4925 50 4949 463400 51818 51224 457720 538910 54550 5981980
out flow 0 00 4700 49592 20 50970 0 0 0
0 0

2
8
Net profit 88834 1165 14442 18173 2222 254684 28171 31812 35862 409825 4509345 49700 33235310
5 845 95 75 245 5 45 65 75 5 75 5

2
9
 5.5. Projected cash inflow statement for 2023

Months Jan feb march April May June July Aug. Sep Oct Nov. Dec Total
Beginning 4970075 4770365 4592775 436075 4435445 4793045 4626933 5217333 5112583 5022633 57414
capital 4545645 4981983
Sales 300000 378710 418000 500000 76000 265000 730000 600000 432000 390000 413250 480000 56677
Debtors 60000 35000 78720 80000 529445 5326675 59983133 5694333 5563783 5495633 5553983 87900 63887
Total cash in 5330075 5184075 50894935 4926072 529445 5128045 5326675 5983133 5694333 5563783 5495683 5553983 63889
floor

Purchases 20000 230000 375000 140000 137000 213000 320000 410000 220000 190000 165000 240000 28400
Creditors 40000 36000 43200 29300 38700 50000 61710 43000 40000 32000 27300 53780 49699
Expenses
Salary and 264000 264000 264000 264000 264000 264000 264000 264000 264000 264000 264000 264000 31680
wages

Electricity 7200 8000 9500 6300 10000 7400 8200 6700 7800 5800 11200 7500 95600
Rent 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 14400
Water bill 11310 12000 9000 83000 13200 11000 6432 5300 6200 9400 8800 10500 11442
Advertisement 4200 5700 6000 5730 4000 3000 6300 7000 5000 4320 5200 6920 63280
Licence fee 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000
Miscelenious 1300 1560 16720 15700 12500 14000 11100 9800 18750 15720 12000 19000 17539
Total cash out 559710 5913100 743420 49060 499400 583400 699742 765800 581750 541150 513700 62700 71907
flow
Net profit 477036 4592775 4346075 4435445 4793045 4545645 4626933 5217333 5112583 5022633 4981983 4932283 56698

27
 5.6. Profoma income statement for DAN Restaurant .s
Particulars 2017 2018 2019
Sales 98258000 9633600 5607760
Less: purchase 2294000 1887000 2840000
Gross profit 7831800 7766600 2827760
Less expenses
Rent 14400 144000 144000
Salary 3168000 3168000 3168000
Electricity 102685 98780 95600
Water bill 128700 124850 111442
Advertisement 52780 59130 63280
Licence 96000 96000 96000
Miscelenius 109500 127320 175390
Totals 3748885 389080 3853712
Net profit before 7531800 7766600 8507760
Tax -3748885 -3819080 -3853712
Tax 10% 3782915 3947520 4654048
Net profit Afret tax 408291.5 394752 465404.8

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 5.7. Profoma balance sheet for DAN Restaurant .s
Particulars 2017 2018 2019
Fixed assets
Machines 35000 35000 37500
Furniture 40000 45000 60000
Refrigerators 12500 12000 11500
Cooking machine 50000 75000 80000
Total assets 909500 1190000 1314000
Current assists
Cash at hand 107000 150000 220000
Cash at bank 20000 320000 340000
Debtors 35000 23000 15000
Stock 430000 53000 550000
Current liabilities
Creditors 15000 40000 50000
Bank overdraft 40000 45000 65000
Total current 55000 85000 115000
liabilities

Long term liabilities 909500 – 55000 1190000 – 85000 1314000- 115000

(total – current)+ net = 854500 + 378291.5 = 1105000 + 394752 =1199000 + 465404.8
profit tat
= 1232791.5 = 1499752 = 166404.8
total liabilities 1287791.5 2689752 2978404.8

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 5.8. Breakeven point for 2017, 2018 and 2019
Years 2017 2018 2019
Fixed cost
Rent 144000 144000 144000
Salary 3168000 3168000 3138000
License 96000 96000 96000
Total 3408000 3408000 3408000
Variable cost
Electricity 102685 99780 95600
Water bill 128700 124850 111442
Advertisement 52780 59130 63280
miscellaneous 109500 127320 175390
Total variable cost 393665 411080 445712
BEP = Fixed cost 308000 3408000 3408000
1- variable cost 1-393665 1-411080 1-445712
Sales 10125800 96536000 5667760
= 3545853.65 =355977.78 =369887.46

5.9. Profitability ratio for 2021, 2022 and 2023

Profitability ratios for 2017, 2018 and 2019

31
Years/ total/ ratio 2017 2018 2019

Gross profit = GP 753180x 100 7766600x100 2827750 x 100

100 sales 10125800 9653600 5667760

=74.38 =80.5% =49.89%

Return on equity 378291.5 x 100 394752 x 100 4654404.8 x 100

= Npta x 100 107000 1105000 11990000

Owners equity =44.27% =038.82%

Return on investment 37829150 x100 394752 x 100 465404.8 x 100

NAPT x 100 107000 1456935 22748565

invest =353.54% 20.5%

5.10. Desired Finance

Beginning capital 107000

Pre- operational court 544500

Working capital (1t year ) 717000

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 5.11. Proposed Capitalization
Personal service 70,000

Loans(borrowing) 15000

Family contribution 20,000

33
 Appendix I
Premise Layout

Manager office

Accountant office

Television Kitchen
Counter

Dining room

Pool table

Swimming pool
door

Secure guard Vehicle backing

MAIN GATE

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