ACCESS TECHNOLOGIES

Your ultimate quality provider

A business plan presented to the Bandari Maritime Academy

Diploma in Nautical Science
PRESENTED BY: BRUCE KIPRONO MARITIM

INDEX: 1061120179

CENTER NAME: BANDARI COLLEGE

CENTER CODE: - 1061120

SUBJECT CODE: 25041/306s

PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL

SERIES: JULY 2023

I
ACKNOWLEDGEMENT
My heartfelt thanks goes to those who made this company plan a success my sincere to my
lecturer for his great support my parents for the financial support and my friends for their support
as well God for strength He gave me.

II
 THE KENYA NATIONAL EXAMINATION COUNCIL

DECLARATION FORM FOR DIPLOMA, TECHNICAL AND BUSINESS

EXAMINATION

NAME OF THE PROJECT: ____________________________________________

CODE NUMBER OF THE PROJECT: ____________________________________

THE CANDIDATE:
I________________________________________ of index number _____________

(i) The project named above was approved by KNEC and supervised by

________________________________________________________________
(SUPERVISOR’S NAME)

(ii) I personally carried out the project whose report follows after this declaration.

(iii) I received no undue help from unauthorized persons other than the normal guidance from my
supervisor.

(iv) The report submitted to the council is the original work.

SIGNITURE _________________________ DATE ______________________

THE SUPERVISOR:
I _______________________________________TSC NO ____________________
(NAME OF SUPERVISOR)

Declare that, I supervised the above named candidate’s project and the report contained herein is
the genuine work of the candidate.

SUPERVISOR’S SIGNITURE __________________________ DATE_______________

EXAMINATIONS OFFICER:

I ___________________________________________________________________
(NAME OF EXAMINATIONS OFFICER)

SUPERVISOR’S SIGNITURE __________________________ DATE_______________

SENIOR PRINCIPAL TRAINER (ME OR NS):

I ___________________________________________________________________
(NAME OF SENIOR PRINCIPAL TRAINER)

SUPERVISOR’S SIGNITURE __________________________ DATE_______________

III
DEDICATION
I dedicate this company plan to my parents, friend and classmates’ special gratitude to my
Creature who's work of encouragement a number of corruption and a push for fancy in my ears. I
also dedicate to my computer lecturer who sacrifice his time helping me develop my technology
skills.

IV
Contents
ACKNOWLEDGEMENT ............................................................................................................................. II
DECLARATION .............................................................................................................................. III
DEDICATION ........................................................................................................................................... IV
EXECUTIVE SUMMARY .......................................................................................................................... VIII
COMPANY DESCRIPTION. ........................................................................................................ VIII
MARKETING PLAN. .................................................................................................................... VIII
ORGANIZATIONAL AND MANAGEMENT PLAN. ................................................................. VIII
PRODUCTION AND OPERATIONAL PLAN ............................................................................. VIII
FINANCIAL PLAN. ....................................................................................................................... VIII
CHAPTER ONE-BUSINESS DESCRIPTION ................................................................................................... 1
1.0 BACKGROUND OF THE OWNER .............................................................................................. 1
1.1 THE BUSINESS NAME ............................................................................................................... 2
1.2 THE BUSINESS LOCATION AND ADDRESS............................................................................ 2
1.2.1 BUSINESS LOCATION ......................................................................................................... 2
1.2.2 COMPANY ADDRESS .......................................................................................................... 3
1.3 FORM OF BUSINESS OWNERSHIP ........................................................................................... 3
1.4 TYPE OF BUSINESS.................................................................................................................... 3
1.5 PRODUCT AND SERVICES ........................................................................................................ 3
1.5.1 PRODUCT ............................................................................................................................. 3
1.5.2 SERVICES ............................................................................................................................. 4
1.6 JUSTIFICATION OF OPP0RTUNITY .......................................................................................... 4
1.7 THE INDUSTRY .......................................................................................................................... 4
1.8 GOALS AND OBJECTIVES OF THE COMPANY ...................................................................... 4
1.8.1 GOALS................................................................................................................................... 4
1.8.2 OBJECTIVES OF THE COMPANY....................................................................................... 5
1.9 ENRTY AND GROWTH STRATEGY ......................................................................................... 5
1.9.1 ENTRY PLAN........................................................................................................................ 5
1.9.2 GROWTH PLAN.................................................................................................................... 5
CHAPTER TWO- MARKET PLANING .......................................................................................................... 6
2.0 CUSTOMERS ............................................................................................................................... 6
2.1 MARKET SHARE/SIZE ............................................................................................................... 6
2.2 COMPETITION ............................................................................................................................ 7

V
 2.4 PRICING STRATEGY .................................................................................................................. 8
2.5 SALES AND TACTICS ................................................................................................................ 8
2.6 DISTRIBUTION STRATEGY ...................................................................................................... 8
CHAPTER THREE - ORGANISATION AND MANAGEMENT PLAN ................................................................. 9
3.1 MANAGEMENT TEAM ............................................................................................................... 9
3.1.1 ROLES OF THE MANAGEMENT TEAM ........................................................................... 10
3.2 OTHER PERSONNEL NUMBER AND DUTIES ....................................................................... 11
3.3 RECRUITMENT, TRAINING AND PROMOTIONS ................................................................. 11
3.3.1 RECRUITMENT .................................................................................................................. 11
3.3.2 TRAINING ........................................................................................................................... 11
3.3.3 PROMOTION....................................................................................................................... 12
3.4 RENUMERATION AND INCENTIVES ..................................................................................... 12
3.4.1 RENUMERATION ............................................................................................................... 12
3.4.2 INCENTIVES ....................................................................................................................... 12
3.5 LICENSES, PERMITS, AND BY-LAWS .................................................................................... 12
3.5.1 LICENSES ........................................................................................................................... 12
3.5.3 BY-LAWS ............................................................................................................................ 13
3.6 SUPPORT SERVICES ................................................................................................................ 13
3.6.1 BANKING SERVICES ......................................................................................................... 13
3.6.2 INSURANCE SERVICE....................................................................................................... 13
3.6.3 CONTRACTED SERVICES................................................................................................. 13
3.6.4 LEGAL SERVICES .............................................................................................................. 13
3.7 OTHER SERVICES .................................................................................................................... 13
CHAPTER FOUR-OPERATIONAL PLAN ..................................................................................................... 14
4.1 Product or service design and development. ................................................................................. 14
4.2 Production or operational facilities and capacity. .......................................................................... 14
4.3 Production strategy. ..................................................................................................................... 14
4.3.1 List of monthly material requirements. .................................................................................. 15
4.3.2 Labor cost per month............................................................................................................. 15
4.3.3 Monthly production and operational cost. .............................................................................. 15
4.4 Production process. ...................................................................................................................... 16
4.4.1 In-house programming. ......................................................................................................... 16
4.4.2 Storing of products. ............................................................................................................... 16

VI
 4.4.3 Schedule time for production. ................................................................................................ 16
4.4.4 Factors likely to affect production process. ............................................................................ 16
4.5 Regulations affecting operations. ................................................................................................. 17
4.5.1 Data security and Privacy Act ............................................................................................... 17
Being an act of parliament we will be required to comply and ensure all operations are done
deliberately to protect and uphold the privacy and data of our customers. ....................................... 17
CHAPTER FIVE- FINANCIAL PLAN ............................................................................................................ 18
5.1 Pre operational costs. ................................................................................................................... 18
5.2 WORKING CAPITAL ................................................................................................................ 18
5.3: FINANCIAL REPORT YEAR 2026 ........................................................................................... 21
5.3.1 Performa income statement 2026 ........................................................................................... 21
5.4 PROJECTED CASHFLOW AS AT 31ST DECEMBER 2026 ....................................................... 22

VII
EXECUTIVE SUMMARY
COMPANY DESCRIPTION.
The company name is ACCESS TECHNOLOGIES. It’s a company that would be issuing DATA
MANAGEMENT AND STORAGE services to the community and also globally.

MARKETING PLAN.
My plan towards boosting the company will be promoted through the social media services. The
plan made is supposed to attract customers globally through the social media platforms we
created.

ORGANIZATIONAL AND MANAGEMENT PLAN.

The company will be a limited company and the management will be headed by a chief
executive officer responsible for oversight of all the company’s activities

The company will comply with all state laws and pay its taxes as per regulations set.

PRODUCTION AND OPERATIONAL PLAN

Access technologies will provide online data storage to its clients and will be in contracted
partnership with cloud storage providers like GOOGLE and others to make the service possible

FINANCIAL PLAN.
The proposed capitalization of the company is 1,500,000 Ksh, a loan from KCB bank of 800,000
Ksh and 200,000 Ksh family loan which will enable the company to obtain all necessary
equipment, personnel and licenses required to start and operate. The goal is to obtain profits
amounting to 80,000 a month for the first 6 months which will grow overtime

VIII
CHAPTER ONE-BUSINESS DESCRIPTION
1.0 BACKGROUND OF THE OWNER
Name: Bruce Maritim

Age: 26 year old

Marital Status: single

Address: 064

Occupation: student

Education Qualification

2022-Date: Diploma in Nautical Science

Work Experience: Director Bruce base enterprises 7 years

1
1.1 THE BUSINESS NAME

Access technologies

ACCESS TECHNOGIES is the name given to the company. Just like the name suggests we are
to provide storage of data digitally/ use of technology.

1.2 THE BUSINESS LOCATION AND ADDRESS

1.2.1 BUSINESS LOCATION
The business will be located in the capital city of Kenya Nairobi and will bear the physical
address corner of valley road and Rulph Bunche road marked violet on the map the company
intends to set up satellite offices across the country from which marketing and customer service
personnel will operate.

2
1.2.2 COMPANY ADDRESS
Address: ACCESS TECHNOLOGIES LIMITED

P.O BOX 0064 NAIROBI

Email: info@access.co.ke

Toll free line 9988

1.3 FORM OF BUSINESS OWNERSHIP

The company will be a limited company. The reason for choosing this is because I can easily
start and I will have privileges partnering with other firms in contracted agreements and be able
to support young innovators through employment.

1.4 TYPE OF BUSINESS

The business is a start-up dealing in digital data storage. It will use technology to provide its
services. It will operate under all guidelines of limited companies and will enjoy benefits of
being one.

1.5 PRODUCT AND SERVICES

1.5.1 PRODUCT
The company will be offering digital storage services through the following products:

Access med – this is a product tailored for health service providers and will store and easily
retrieve data and information from access technologies platform

My student – the product’s main focus is the learning institutions. All records ranging from the
students, staff, finance etc. will be stored and real-time access provided

My office – this product will touch on all company records that are kept in various offices and
will be tailor made according to each client requirements

3
1.5.2 SERVICES
The company will be offering free training to our clients on our products and usage and will at
times offer discounts on the quoted charges so as to win over clients who will not be in our
books as of then.

Given that the business will be receiving payments on a monthly quarterly or annual basis the
clients will get to enjoy remote access to their records and provision of consultancy services
through our helplines and online support services will be provided

1.6 JUSTIFICATION OF OPP0RTUNITY

Given that records should have perpetual life there is a need to ensure tampering and loss of the
same is averted and access to the said records is made quicker and easier. Various institutions
have the need to neatly and orderly arrange and store there data and information on a daily basis,
Access technologies will endeavor to solve this and innovatively provide smoother and real-time
access to data and information even if remotely.

1.7 THE INDUSTRY

The technology industry is one coupled with creativity and innovation and therefore given that
we are entering a field where frequent updates are inevitable we are going to ensure we are
trendy by ensuring our systems are in their latest versions and are fast at all times.

Tech industry is considered one of the best areas to invest in and therefore to remain competitive
we will be reinvesting part of our profits to ensure unmatched competitiveness

The labor requirement is low hence a business can have two staff members serving a hundred
customers this is because much is done by computer in the data access process.

1.8 GOALS AND OBJECTIVES OF THE COMPANY

1.8.1 GOALS
 To be the household digital storage provider
 Promote innovativeness and productivity
 Reduce access time of data by 98%

4
1.8.2 OBJECTIVES OF THE COMPANY
 To maximize my profits
 To provide employment to young innovators
 Provide quality products to customers.

1.9 ENRTY AND GROWTH STRATEGY

1.9.1 ENTRY PLAN
The company will start bit by bit to gain customers through advertisement and intensive marketing.
The pricing of the services offered will be favorable and affordable to all and this will attract many
customers.

In order to make the business known a grand launching will be done and all prospective clients
invited to the launch. In order to get clients on board a discount will be put in place for the first
three months in order to lure clients.

Billboards, posters will be used to reach to a large mass of people, televisions, radio stations and
newspapers will be used to advertise the company. This will help the company to expand as
customers will have an opportunity to give their opinion on our products as we endeavor to make
them a part of us. Periodical reinvestments into the company will be done so as to contribute to
facilitation for expansion plans.

1.9.2 GROWTH PLAN

Having that the services the business will offer are boundless, the business intends to operate in
various countries/regions as is the case with various similar businesses. The business intends to
sustain a vigorous marketing campaign of its products and introduce an on board discount similar
to the no claim discount in the insurance sector, this is so us to entice clients to remain onboard
and even offer reference to our marketing team.

The technology industry is one of the most untapped areas in terms of business we intend to explore
new technologies and bring them onboard to ensure sustainable growth and competitiveness of the
business at all times.

Adaptability is key for the survival and growth of the business and therefore the plan is to be
abreast of any changes in our surroundings and ensure conformity is timely and convenient.

5
CHAPTER TWO- MARKET PLANING
2.0 CUSTOMERS
Every product of access technologies is designed with customer needs in mind, in some cases the
storage of data and information will be tailor made to suit the client’s specific needs so as to
ensure customer retention and satisfaction. Given the difference in financial ability of customers
we intend to come up with flexible payment plans that will make our products affordable and
acquirable to all. Appreciation to clients will be part of the company’s annual budget and
activities intentionally meant to appreciate them will be done e.g. customer service week

2.1 MARKET SHARE/SIZE

Only 4% of the market share is tapped, this means we have the opportunity to grow immeasurably.
This means the 96% of the market will provide enough to fuel growth of the company considering
the products are borderless

MARKET SHARE BEFORE ENTERY OF ACCESS

TECHNOLOGIES

UNTAPPED MARKET TAPPED MARKET

6
 PREDICTED MARKET SHARE AFTER ENTRY OF ACCESS
TECHNOLOGIES

OTHER BUSINESSES ACCESS TECHNOLOGIES UNTAPPED MARKET

2.2 COMPETITION
The demand for our products is sizeable and therefore there being very few companies offering
similar products we have the opportunity to make proper use of the untapped market and make
profits. The only known competitor is CAMPUS CURA and GOOGLE FILES they offer off the
shelf products which at times forces the client to change operations and adapt to it while ours is
tailor-made and will conform to the clients way of operation

2.3 METHODS OF PROMOTION AND ADVERTISEMENTS

Promotions will be done to increase the sales and through the company’s participation in various
activities e.g. sponsorship of golf tournaments which will in turn provide avenues for marketing
our products and expand our reach.

Advertisement will be done in different channels such as newspapers, radios, televisions, posters,
social media and billboards along the roads frequently to increase number of customers.

7
2.4 PRICING STRATEGY
In order to make all our products affordable the price will be payable monthly quarterly or
annually and the price will be set according to size of data stored and number of access gateways
provided. There will be a pricing schedule followed which will have all rates charged.

2.5 SALES AND TACTICS

The business will be keen on maintaining quality products and favorable environment for
customers. The business will always make deliberate marketing activities and use sales agents
who will assist in closing company deals on behalf of the company. Sales will be done majorly
by our sales team and online through our customer service portal

2.6 DISTRIBUTION STRATEGY

The products being online makes it easy for distribution for one only needs a stable internet
and internet enabled device to access information about us and there records portal. Where
need be satellite offices will be set in areas where we intend to do intensive marketing or
perform customer service activities

8
CHAPTER THREE - ORGANISATION AND MANAGEMENT PLAN
3.1 MANAGEMENT TEAM
The management team will include the;

 Managing director
 Marketing manager
 ICT manager
 Chief finance officer

managing director

chief finance officer

marketing manager ICT manager

software developers
and sales team

9
3.1.1 ROLES OF THE MANAGEMENT TEAM
 Manager director
In charge of oversight of all company activities and growth of the company
Must have a degree in any business related course and five year experience in any
managerial position
 Marketing manager
All matters marketing and sales will be handled by the marketing manager. Will head
marketing department
Must have a degree in any business related course and 2 years of experience in any
managerial position
 ICT manager

Will head the ICT department which will handle all software development and secure client
data

Must be a holder of a degree in programming from a recognized institution and have 2

years of experience as a programmer

 Chief finance officer

Will handle all finance department matters and provide financial reports to the
managing director
Will be a banking and finance degree holder and must have two years of experience as
a manager in the finance sector
 Software developers
Shall entail of a qualified (degree/diploma)software engineer, systems analyst and a
programmer who will handle all system issues and maintenance
 Sales team shall entail of diploma holders of sales and marketing who will handle
marketing and customer service

10
3.2 OTHER PERSONNEL NUMBER AND DUTIES
PERSONNEL NUMBER DUTIES
MANAGING DIRECTOR 1 In charge of all company activities. Hiring and
firing authority
CHIEF FINANCE 1 Handles all matters finance of the company
OFFICER
MARKETING 1 Heads a sales team responsible for marketing
MANAGER and increasing sales volume
ICT MANAGER 1 Handles the technological part of the company
and heads a team that is responsible for smooth
running of our systems
SOFTWARE 5 work under the instructions of the ICT manager
DEVELOPERS and watch keepers of the company’s
products/systems
SALES TEAM 5 Market the company’s products and meet sales
target set by the Marketing manager. They are
to handle all customer service matters.

3.3 RECRUITMENT, TRAINING AND PROMOTIONS

3.3.1 RECRUITMENT
The managerial post will be advertised publicly on a newspaper and qualified candidates will
be called for interview.

All the other posts shall be advertised an all channels and in institutions of learning. This is so
that we get the best in the business.

3.3.2 TRAINING
We shall conduct induction training on employment of any staff and periodical trainings shall
be done to empower our personnel with tools of the trade

The training will take place by attending seminars in different organization.

11
3.3.3 PROMOTION
Promotion and demotion will be based on performance and productivity of the employee and
as a way to motivate staff bonuses will be offered annually.

3.4 RENUMERATION AND INCENTIVES

All staff will be salaried except for the sales team who will earn a small retainer and a
commission out of there sales.

3.4.1 RENUMERATION
Personnel Number Monthly pay Allowance Total
benefits
Manager 1 90,000 15000 105,000
CFO 1 75,000 10,000 85,000
M. MANAGER 1 75,000 10,000 85,000
ICT MANAGER 1 75,000 10,000 85,000
MARKETING 5 10000 (retainer) 1000 11000
DEVELOPERS 5 35,000 3,000 38,000

3.4.2 INCENTIVES
In the company there will be various incentives that motivates the employees and they include;

i. Awarding most hardworking employee

ii. Promoting employees like increasing their salaries
iii. For marketers lucrative commission rate will be in place so as to motivate them.

3.5 LICENSES, PERMITS, AND BY-LAWS

3.5.1 LICENSES
The company will obtain license from the government and local authorities as required by the
law for the business to be legally approved.

12
 3.5.2 PERMITS

The permit of the company will be from the respective local authorities so as to avoid clashing
with the government law and regulations.

3.5.3 BY-LAWS
The company will also follow the rules of county government to avoid colliding with the
county officers.

3.6 SUPPORT SERVICES

3.6.1 BANKING SERVICES
The bank where my customers can pay for services are as follows

Equity banks AC – 24554070

KCB banks AC – 1240434

3.6.2 INSURANCE SERVICE

The company will be insured by Pacis insurance company against fire, malicious damage and
theft. We will ensure to take an all risk cover and political violence and terrorism act

3.6.3 CONTRACTED SERVICES

In order to make our products possible the company will have a working agreement with
Google Company to provide storage and server hosting services. Being that they are already
established our products will be safe and secure and this will enable us to offer affordable
pricing.

3.6.4 LEGAL SERVICES

Ombima and Omondi company advocates will be on call in case we need any legal advice or
contracts drawn

3.7 OTHER SERVICES

The company will have a directory of service providers, when a certain service is required they
will be called or a contract will be signed for as to acquire the services

13
CHAPTER FOUR-OPERATIONAL PLAN
4.1 Product or service design and development.
The product and services are intentionally designed to provide ease in access of data and provide
customer friendly interface on the access portal

4.2 Production or operational facilities and capacity.

The equipment needed to be in place are as listed the mainframe computer will be purchased
from IBM company who have do free installation as an aftersales service.

Number of equipment Equipment Size/capacity Cost

8 Computer terminals 17 inch 32,000
1 Mainframe computer 8th generation 150,000
and power back up
(UPS)
1 Table and chairs 8 sitter 18,000
(open office)
200,000 shillings will be spent on equipment which will be well maintained by internal staff.

The business has future expansion plans and intends to add the following equipment

 Backup generator
 Increase office space
 Office furniture for satellite offices
 Projector

4.3 Production strategy.

Under production strategy the business will ensure to employ skilled and talented individuals in
its programming team who will then come up with the much needed solutions by our customers.
Use of advanced programming languages like C++ will be put to use to ensure faster production
of software solutions and minimal time is consumed.

The nature of software production is not labor intensive thus cost of production is made
manageable.

14
4.3.1 List of monthly material requirements.
Material Amount per month Suppliers/Sources
Electricity 10,000 Kenya power & lighting
company
Internet 30,000 Liquid Telkom
The cost of the materials will be 40,000 Kenyan shillings.

Internet and electricity are key for successful operations.

The business will have alternating direct production workers and four indirect production
workers with high skills and experience in the field.

4.3.2 Labor cost per month.

The total labor cost per month in the business will be 275,000 Kenyan shillings as per the table
below. We plan to engage starting developers so as to manage our wage bill.

Personnel Number Monthly pay Allowance Total

benefits
Manager 1 90,000 15000 45,000
CFO 1 75,000 10,000 25,000
M. MANAGER 1 75,000 10,000 25,000
ICT MANAGER 1 75,000 10,000 25,000
MARKETING 5 10000 (retainer) 1000 11000
DEVELOPERS 5 35,000 3,000 20,000
4.3.3 Monthly production and operational cost.
Particular Amount
Salaries 275,000
Advertisement 15,000
Transport 10,000
Electricity 20,000
Water 1000
Total 321,000

15
4.4 Production process.
This is actually how the business will be carrying out its daily activities. Discussed below will be
the exact production steps of the business.

4.4.1 In-house programming.

Software will be developed by our staff and test runs done before being launched for use by our
clients. Patch codes will be made and placed on the main code during the quarterly system
updates

4.4.2 Storing of products.

The mainframe computer will act as the first storage, external storage media will be in place on
which data will be loaded in real-time and the hosting company will also provide alternative
storage services which will be accessed by our team on a need basis

4.4.3 Schedule time for production.

Our team of developers will be working in shifts for 6 days this will make sure the 24 hour
services promise to our clients is kept. One developer will take on the seventh day shift with two
of them being on call in case any matter arises

Time Activities.
6.00 am -2.00 pm First shift
2.00 pm -10.00pm Second shift
10.00pm - 6.00 am Third shift

4.4.4 Factors likely to affect production process.

4.4.4.1 Power outages.
Power outages is a major concern due to the high dependency of our software development
process on its uninterrupted availability. Even though we have put in place measure in case of
outages distortion of the production process may still occur

4.4.4.2 Piracy.
The presence of copyright laws is comforting but lack of proper enforcement may lead to
theft/piracy of our digital content or coding models. The business will be registered with the
Music and copyright society and the communications authority to try and curb the vice.

16
4.4.4.3 Insecurity.
Incessant violent demonstrations, terror attacks/cyber-attacks and malicious damage are a major
challenge to normal operations of the business and therefore Cctv will be in place, a security
guard will stand guard and malware protection will be in place.

4.5 Regulations affecting operations.

4.5.1 Data security and Privacy Act
Being an act of parliament we will be required to comply and ensure all operations are done
deliberately to protect and uphold the privacy and data of our customers.
4.6 Equipment or Materials.

Listed below are the starting equipment required for successful operations

Number of equipment Equipment Size/quantity Cost

8 Computer terminals 17 inch 32,000
1 Mainframe computer 8th generation 150,000
and power back up
(UPS)

17
CHAPTER FIVE- FINANCIAL PLAN
5.1 Pre operational costs.
Particular Cost
Mainframe installation Nil
Lighting 3,000
Air conditioning 50,000
Research and development 100,000
Facilities(office space) 35,000
Advertising and marketing 50,000
Permits 4000
License 11,500

5.2 WORKING CAPITAL

5.2.1 Year 1

PRO-FORMA INCOME STATEMENT AS AT 31ST DECEMBER 2025

SALES 2,000,000
EXPENSES
LABOUR 2328000
RENT 480000
LICENSES 23000
EQUIPMENT 356400
MACHINERY 111900
INSURANCE 9700
TOTAL EXPENSES 1,213,800
NET PROFIT BEFORE 786,200
TAX
ESTIMATED TAX 30% 235,860
NET PROFIT AFTER 550,340
TAX

18
BALANCE SHEET AS OF DEC 31ST 2025

FIXED ASSETS Capital- 800, 000

Machinery - 111,900 Net profit- 4,680,340
Premises- 48,000
Equipment- 356,400 Long term liabilities
516,300 Bank Loan- 500,000
CURRENT ASSETS Family Loan -200,000
Insurance- 9,700 Short term liabilities
Cash in hand- 200,000 -
Cash at the bank- 5,154,340
Debtors- 300,000
6,180,340 6,180,340

Working Capital = Current assets – current liabilities

= 5,664,040/=

19
 CASH FLOW STATEMENT FOR THE YEAR 2025

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

Cash Sales 2,000,000 450,000 540,000 540,000 540,000 540,000 540,000 540,000 540,000 541,000 540,600 540,680 6,452,280

Total Cash Inflows 3,500,000 14,110,800 1,687,780 1,943,680 2,218,580 2,418,480 2,638,680 2,866,880 3,057,780 3,185,680 3,532,180 3,779,860 30,021,340

Salaries 206,000 206,000 206,000 206,000 206,000 206,000 206,000 206,000 206,000 206,000 206,000 2,472,000

Cost of Services 4,500 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 44,500

Licenses 30,000 30,000

Equipment 20,000 3,000 23,000

Insurance 1,500 1,500

Electricity 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000

Marketing 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 50,000

Rent 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000

Supplies 30,000 29,700 40,000 35,000 50,000 29,700 29,700 56,000 213,000 513,100

Total Cash Outflows 342,000 290,700 298,000 293,000 348,000 287,700 287,700 362,000 271,000 210,000 210,000 3,692,100

Net Cash Flow from Operating Activities 3,158,000 13,820,100 1,389,780 1,650,680 1,870,580 2,130,780 2,350,980 2,504,880 2,786,780 2,975,680 3,322,180 3,087,760 26,329,240

20
 FINANCIAL RATIO

Profitability Ratios:
Gross Profit Margin = (Sales - Cost of Goods Sold) / Sales Gross Profit Margin =
(2,000,000 - 1,213,800) / 2,000,000 = 0.3931 or 39.31%

Net Profit Margin = Net Profit After Tax / Sales Net Profit Margin = 550,340 / 2,000,000
= 0.2752 or 27.52%
on Assets (ROA) = Net Profit After Tax / Total Assets ROA = 550,340 / 6,180,340 =
0.089 or 8.9%
Return on Equity (ROE) = Net Profit After Tax / Total Equity ROE = 550,340 /
5,664,340 = 0.097 or 9.7%
Debt Ratios:
Debt-to-Equity Ratio = Total Debt / Total Equity Debt-to-Equity Ratio = 700,000 /
5,664,340 = 0.1236 or 12.36%

Debt Ratio = Total Debt / Total Assets Debt Ratio = 700,000 / 6,180,340 = 0.1134 or
11.34%

5.3: FINANCIAL REPORT YEAR 2026

5.3.1 Performa income statement 2026

SALES 3,000,000
EXPENSES
LABOUR 2328000
RENT 480000
LICENSES 23000
EQUIPMENT 356400
MACHINERY 111900
INSURANCE 9700
TOTAL EXPENSES 1,213,800
NET PROFIT BEFORE 1,786,200
TAX
ESTIMATED TAX 30% 535,860
NET PROFIT AFTER 1,250,340
TAX

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5.4 PROJECTED CASHFLOW AS AT 31ST DECEMBER 2026
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
CASH 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 3,000,000
INFLOWS
Labour 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 232,800
Rent 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
Licenses 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800
Equipment 2,980 2,980
Machinery 9,325 9,325
Insurance 808 808 808 808 808 808 808 808 808 808 808 808 9,700
Total Expenses 38,413 26,108 26,108 26,108 26,108 26,108 26,108 26,108 26,108 26,108 26,108 30,108 1,213,800
NET CASH 211,587 223,892 223,892 223,892 223,892 223,892 223,892 223,892 223,892 223,892 223,892 219,892 1,786,200
FLOW
FINANCIAL RATIOS

Profitability Ratios: Gross Profit Margin = (2,000,000 - 1,213,800) / 2,000,000 = 0.3931 or 39.31% Net Profit Margin = 550,340 / 2,000,000 = 0.2752 or 27.52% ROA = 550,340 /
(516,300 + 6,180,340) ≈ 8.49% ROE = 550,340 / 6,180,340 ≈ 8.91%

Solvency Ratios: Debt-to-Equity Ratio = (500,000 + 200,000) / 6,180,340 ≈ 0.1147 or 11.47% Debt-to-Assets Ratio = (500,000 + 200,000) / (516,300 + 6,180,340) ≈ 0.0291 or
2.91%

Efficiency Ratios: Inventory Turnover Ratio = 1,213,800 / (111,900 + 356,400) ≈ 2.91 times Accounts Receivable Turnover Ratio = 2,000,000 / (9,700 + 200,000 + 300,000) ≈ 5.48

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FINANCIAL REPORT FOR THE YEAR 2027
CASH SALES 7,482,280
COST OF SALES 1,600,000
GROSS PROFIT 5,882,280
EQUIPMENT 74000
LABOUR 247200
RENT 480000
LICENSE 30000
DISCOUNT 1200
SUPPLIES 513100
TOTAL EXPENSES 865500
NET PROFIT BEFORE TAX 5,016,780
ESTIMATED TAX 30% 1,505,034
NET PROFIT AFTER TAX 4,377,246

BALANCE SHEET AS AT 31ST DECEMBER 2027

Balance Sheet As of December 31, 2027

ASSETS Fixed Assets. Equipment 74,000

Current Assets. Cash in Hand 7,482,280

Supplies. 513,100 Total Current Assets $7,995,380

TOTAL ASSETS. 8,069,380

Shareholders' Equity. Net Profit After Tax 4,377,246

TOTAL LIABILITIES & EQUITY. 8,069,380

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 CASHFLOW 2027
RECEIPT JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC
S
loan 35,000
sales 80,000 60,000 40,000 55,000 30,000 20,000 70,000 70,000 45,000 40,000 50,000 35,000
debtors 10,000 20,000 5,000 6,000 10,000 5,000 6,000 5,500 65,000 6,000 7,000 10,000
Dis 5,000 1,500 1,000 2,000 5,000 1,000 2,000 3,000 5,000 5,500 10,000 4,000
received
Payment
purchase 40,000 300,000 20,000 25,000 15,000 10,000 35,000 35,000 20,000 20,000 25,000 15,000
salaries 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
creditors 5,000 10,000 1,000 2,000 5,000 3,000 2,000 2,000 4,000 5,000 4,000 35,000
Discount 10,000 5,000 5,000 2,000 2,000 5,000 1,000 1,000 5,000 5,000 2,000 25,000
allowed
Cash flow 20,000 40,000 30,000 15,000 20,000 25,000 20,000 30,000 35,000 40,000 45,000 20,000
Bal 100,000 150,000 120,000 115,000 105,000 90,000 1,000,000 115,000 150,000 150,000 145,000 130,000
brought
down
Bal 105,000 155,000 125,000 12,000 110,000 100,000 11,000 120,000 155,000 135,000 140,000 140,000
carried
down

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FINANCIAL RATIOS
Gross Profit Margin = (5,882,280 / 7,482,280) * 100 ≈ 78.68%
Net Profit Margin = (4,377,246 / 7,482,280) * 100 ≈ 58.44%
Return on Assets (ROA) = (4,377,246 / 8,069,380) * 100 ≈ 54.24%
Return on Equity (ROE) = (4,377,246 / 4,377,246) * 100 ≈ 100%

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