TITLE: BUSINESS PLAN

BUSINESS NAME: BRANDON HANDWARW ENTERPRISE

PHONE NO: 0717273313

PRESENTED BY: BRANDON POGHISHO KAPTUNOI

EMAIL: poghishobrandon406@gmail.com

INDEX NO: 3271040269

CENTRE: KARUMO TECHNICAL TRAINING INSTITUTE

COURSE: CERTIFICATE IN PLUMBING

SERIES: MARCH/APRIL 2025

PRESENTED TO: KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILLMENT FOR AWARD OF

CERTIFICATE IN PLUMBING

SUPERVISOR: MADAM GRACE

DECLARATION

I would like to declare that this is my original work and it has never been

submitted by any other student in any college of higher learning to the

Kenya National Examination Council in partial fulfillment for award of

plumbing craft in plumbing.

NAME: BRANDON POGHISHO

Signature --------------------------

Date -----------------------

Supervisor Name:

Signature ----------------------

Date --------------------------

i
DEDICATION

I dedicate this business to God Almighty my source of knowledge to

write the project and for good health during that period, my family at

large for their support, assistance and encouragement in bringing up this

whole idea.

I also appreciate my fellow students for their comfort, without all of

them I couldn't have hard strength to pursue the task of research and

completion of this project.

ii
ACKNOWLEDGMENT

I take this opportunity to acknowledge sincere gratitude to my lecturer

who has offered guidance towards the writing of this business

plan from the beginning to the end.

May God bless you.

iii
Table of Contents

DECLARATION..................................................................................... i

DEDICATION........................................................................................ ii

ACKNOWLEDGMENT ...................................................................... iii

EXECUTIVE SUMMARY ................................................................. vii

CHAPTER ONE .................................................................................... 1

1.0BUSINESS DESCRIPTION ............................................................... 1

1.1 OWNERS BACKGROUND ........................................................... 1

1.2 NAME AND BUSINESS LOGO ................................................... 1

1.3 BUSINESS LOCATION AND ADDRESS.................................... 1

1.4 FORM OF BUSINESS OWNERSHIP ........................................... 4

1.5 PRODUCTS AND SERVICES ...................................................... 4

1.6 JUSTIFICATION OF OPPORTUNITY ......................................... 5

1.7 BUSINESS INDUSTRY ................................................................. 6

1.8 BUSINESS GOALS........................................................................ 6

1.9 ENTRY AND GROWTH STRATEGY ......................................... 7

CHAPTER TWO ................................................................................ 8

2.0 MARKETING PLAN ..................................................................... 8

2.1 CUSTOMERS ................................................................................. 8

2.2 MARKET SHARE .......................................................................... 9

2.3 COMPETITORS ........................................................................... 10

iv
2.3 .1 ERINGOS HANDWARES ....................................................... 10

2.3.2 VISIONANERS HANDWARE ................................................. 10

2.4 METHODS OF PROMOTION AND ADVERTISING ............... 11

2.4.1 PROMOTION ............................................................................ 12

2.5 PRICING STRATEGY ................................................................. 12

2.6 SALES TACTICS ......................................................................... 13

2.7 DISTRIBUTION STRATEGY ..................................................... 13

CHAPTER THREE ............................................................................. 15

3.0 ORGANIZATION AND MANAGEMENT PLAN ..................... 15

3.1 ORGANISATION STRUCTURE ................................................ 15

3.2: MANAGERS ............................................................................... 16

3.2.1: Managers ................................................................................... 16

3.2.2: Supervisor ................................................................................. 16

3.2.3: Accountant ................................................................................ 17

3.2.4: Purchasing Manager .................................................................. 18

3.3 PURCHASING PERSONNEL ..................................................... 18

3.3.1 Marketing officer ....................................................................... 19

3.3.2 Driver ......................................................................................... 19

3.3.3 Security Man .............................................................................. 20

3.4l RECRUITMENT,TRAINING AND PROMOTION .................. 20

v
3.5 INCENTIVE ................................................................................. 22

3.6 LICENCE PERMIT BY LAWS ................................................... 22

3.7 SUPPORT SERVICES ................................................................. 23

CHAPTER FOUR ................................................................................ 24

4.0 OPERATIONAL AND PRODUCTION PLANS ........................ 24

4.1 PRODUCT DESIGN AND DEVELOPMENT ............................ 24

4.2 PRODUCTION OR OPERATIONAL FACILITIES AND

CAPACITY ......................................................................................... 25

4.3 PRODUCTION OR SERVICE STRATEGY ............................... 25

4.4 PRODUCTION PROCESS ........................................................... 26

4.5 REGULATIONS AFFECTING OPERATIONS .......................... 26

CHAPTER FIVE ................................................................................. 28

5.0 FINANCIAL PLAN ...................................................................... 28

5.1 PRE-OPERATIONAL COST ....................................................... 28

5.2 WORKING CAPITAL.................................................................. 29

5.3 PROPOSED CAPITALIZATION ................................................ 29

5.4 DESIRED FINANCING ............................................................... 30

5.5 PERFORMANCE SHEET ........................................................... 34

5.6 PROFORMA INCOME STATEMENT ....................................... 36

5.7 BREAKING EVEN CALCULATION ......................................... 37

vi
EXECUTIVE SUMMARY

1.0 BUSINESS DESCRIPTION

The proposed business will be registered under Brandon hardware enterprise

located at Kapenguria near shell petrol station, 200 meters.

The business will be under construction industry where by labor

intensive technology will be applied. The business will be dealing with

goods and services

2.0 MARKETING PLAN

The business will target three categories of customers like domestic,

commercial and institutional, who are live within the locality of the

business. Private and public institutions are the one who will benefit a

lot from the hardware since the Will enjoy transportation due to

purchasing of high and bulky goods.

3.0 ORGANIZATIONAL AND MANAGEMENT PLAN

The business products will offer receipts, and deliver services to all

customers and promotion of goods that enable all customers to access to

the product.

The business will also acquire support services from banking so as to

achieve its goals and for payment of worker.

Vii
4.0 OPERATION AND PRODUCTION PLAN

The product and services to offer will be of high quality. The business

intends to serve the population of entire Kapenguria town and the neighborhood

counties and improve the living standards of its employees.

5.0 FINANCIAL PLAN

This are the costs that are incurred by the business before starting its

operation activities by ensuring working capital and cash inflow are well

spent in the business. Starting capital ksh 1000000

Viii
CHAPTER ONE

1.0BUSINESS DESCRIPTION

1.1 OWNERS BACKGROUND

The owner of the proposed business will be Brandon poghisho aged

24years, born in West pokot County. The owner completed his high school

education in the year 2019. He intends to start a business after his

completion of his craft course in plumbing in karumo Technical

Training Institute.

1.2 NAME AND BUSINESS DESCRIPTION

The proposed business name will be Brandon hardware enterprise.

This business will develop faster due to availability of required

resources and entrepreneurial skills from the owner.

The proprietor chooses this type of business because it's easy to manage

and control.

1.3 BUSINESS LOCATION AND ADDRESS

This business will be allocated at Kapenguria near shell petrol station. Business will operate in
plot number 3617, opposite lelan market. This business address and contact will be

indicated as follows;

1
Signboard

The place was chosen because of the following reasons;

There is availability of goods transport network.

The business will be easily accessed by suppliers and customers without

any difficulties that will provide a huge ready market.

Security

Security is available due to the nearest police station where the business

will be allocated.

Availability of infrastructure

Such as electricity, water and road, hence a better place to locate the

business.

Availability of products

The business will be easily supplied with the product from the market

hence making it easier to Customers purchase at any given time they

require.

BRANDON HANDWARE ENTERPRISE

P.O BOX 221

KAPENGURIA

TEL: 0717273313

Email: poghishobrandon406@gmail.com

2
3

Business location map

BRANDON
HANDWARE
ENTERPRISE

SHELL PETROL
STATION

KAPENGURIA HIGHWAY

3
1.4 FORM OF BUSINESS OWNERSHIP

The proposed business will be a sole proprietor form of business under

the control of Brandon as the owner and the general manager and the

same time decision making of the business.

The owner found that type of business to be more profitable due to easy

management, availability of resources and favorable climatic conditions.

This form of business has the following advantages;

1. You enjoy profits alone

2. You are the boss

3. You can easily wind up pour business

1.5 PRODUCTS AND SERVICES

This business will intend to offer product such as;

Cranes

Nails

Vibrators

Hinges

Door locks

4
Mixers

Trowels

Water pumps

Hammers

The business intends to offer the following services;

* Allowing discount for customers

* Faster service to customers

* Offer transport of goods to customer’s destination

1.6 JUSTIFICATION OF OPPORTUNITY

According to statistics and research carried out in kapenguria market the

business opportunity will be justified due to rapid population increase in

town and also there is lack of such business in the town whereby there is

demand of building materials for construction of hospitals, schools and

personal They all of them depend on the products to meet their needs.

Materials also are needed for infrastructure to facilitate good transport

system.

5
1.7 BUSINESS INDUSTRY

The proposed business will be construction industry and it will be new

in the area which help to minimize the time wastage when purchasing

the goods from the hardware.

The industry was chosen due to the following reasons;

° High demand of construction goods

Due to rate of competition, the business will provide the goods of high

quality and quantity to attract more customers and also to make good

exploitation of our products to the customers.

The business will also use means of modern technology like, use of

loading and offloading machine, since it will make the work easier and

faster.

1.8 BUSINESS GOALS

The reason of coming up with business is to create income and profit

which will increase up the day running of business industry, hence

loading to business growth by delivering services to the customers and

can purchase products online by opening branches Region wide for easy

offering Service and creating more job opportunities to youths and

provide credit facilities to customers.

6
1.9ENTRY AND GROWTH STRATEGY

The business intends to use the following logistics in order to attract

customers.

1. Media advertising

It intends to advertise its product and services through local radio station

such as citizen tv and writing of books.

2. Posters

The business intends to plan posters across its location indicating its

products and services available.

3. Opening branches

This will enable customers in all areas to access product and services

near.

7
CHAPTER TWO

2.1MARKETING PLAN

2.1 CUSTOMERS

The targeted customers will be as follows,

Individuals

They are customers who live within the locality of the business like

* Carts riders

* Boda-boda rider

* Nurses

* Driver's

Institutional

This are public and private organizations which purchase the product

from the Brandon hardware enterprise. They will be buying on daily or weekly

depending on the quality of previous purchase rate of use.

They include;

* Hospitals

* Colleges

* Schools

8
* Churches

* Homes

Commercial Customers

They are entities who will be buying the product with an aim of selling

to other customers.

They include

* Retailers

* Hawkers

* Kiosk Owners

Local Customers

This group of customers will include the residents of entire Kapenguria town

2.2 MARKET SHARE

Kapenguria town has a high growth of population from the county statistics

office

The population in the whole county by the year 2019 was 456045 people

which majority of them will be reached by the product.

The share will be approximately given to 230000 people. This will be

the target of the business last to take

9
2.3 COMPETITORS

The main competitors in the area will be kipchiriri and visioners hardware

2.3 .1 kipchiriri Hardware

They have the following;

Strengths

* Financially stable

* Has good management

* Has qualified personnel

It has the following

Weakness

* High price on products

* Poor payment of workers

* Poor relationship with customers

2.3.2 visioners Hardware

Has the following;

Strengths

* Payment good to customers

* Introduction of new technologies

10
* Employment of qualified personnel.

It has the following;

Weakness;

* High price of the product

* Opening of late hours of the business

* The business is new hence no Customers recognize it.

Strengths of visioners Hardware are as follows;

* Skilled employees and qualified personnel

* Offer transport of goods for Customers

* Payment of workers in time

* Good relationships with customers

* Better pricing

* Better control of products

2.4 METHODS OF PROMOTION AND ADVERTISING

Advertising is to create awareness of the business in order to create

Customers to the business.

11
We will use posters, since they are cheap method, use of local radio

station since they are faster and affordable. The cost of advertising will

be Ksh.500000 per year.

2.4.1 PROMOTION

Promotion will be done through;

* Offering discount to customers

* Offering credit facilities to customers under some conditions

* Giving out free sample

* Holding exhibition and shows

* Offering free transport

2.5 PRICING STRATEGY

The price for the product will depend on the transportation, labor and

profit gained the goods and services. It will depend on;

1. Cost plus price

The business will consider the cost of goods and services being offered

2. Competition pricing

The business will employ system where price is prevailing in market.

3. Customer Oriented Price

12
Price to setting a given price is healthy to consider potential customers,

hence helping to determine price and maintaining the maximum number

of customers.

2.6 SALES TACTICS

The business will use spin selling method, since it will provide chance to

customer to as right questions to uncover their needs will use also sender

sale, since create that perspective by showing potential customers the

technical finance.

2.7 DISTRIBUTION STRATEGY

solution will need distribution strategies to plan its activities enable their

products penetrate into the market and meet the customers. The products

will be distributed via the road based on the customer’s order.

Direct selling to the customers is also the best way of conveying the

products to the market. The following chart summarize the distribution

channel to be adopted by the business.

PRODUCER -------> CONSUMER

PRODUCER ----------> SALE REPRESENTATIVE ---------->

CONSUMER

PRODUCER -------> WHOLESALE ------- > RETAILER ------>

CONSUMER

13
Benefits of the distribution channel chosen to the business

Efficiency -it leads to efficiency of minimized cost of distribution and

time wastage products are quickly delivered to the customer.

14
CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

The organization will explain how the business is going to be

coordinated to accomplish its objectives.it includes a group of persons

who are going to have come up together for the achievement of goods.it

is going to deal to enable the business to run smoothly.

3.1 ORGANISATION STRUCTURE

MANAGER MANAGER

ACCOUNTANT SUPERVISOR

PURCHASING MANAGER

TRANSPORT OFFICER

DRIVER

SECURITY MAN

CLEANER

15
3.2: MANAGERS

1. Manager

2. Supervisor

3. Purchasing manager

4. Accountant

3.2.1: Managers

Duties and Responsibilities

1. Supervise the entire business

2. Help in decision making

3. Recruiting employees

4. Implementing new business ideas

5. Assigning duties to his subordinates

Qualification

1. Should be a diploma holder in management

2. At least four year of experience in business organization of a company.

3.2.2: Supervisor

Duties and Responsibilities

1. Help in advice on area of awareness

2. To supervise the employee

3. Inspect the quality of product brought to the company

` 16
Qualification

1. Should be a role model

2. Should be a diploma holder

3. Should have good communication skills

3.2.3: Accountant

Duties and Responsibilities

1. Carry out auditing

2. Keeping the business records

3. Prepare financial statements

Qualification

1. Must be a computer literate

2. Must have a certificate of good conduct

3. Two years of working experience

4. At least have Certificate in Public Accounts.

17
3.2.4: Purchasing Manager

Duties and Responsibilities

1. Purchasing materials to be used in the company

2. Releases the materials needed from store

3. Assist the manager to keep business records

Qualification

1. Should be a diploma holder in purchasing and supplies

2. Should be a role model

3. Should be at least 30 years

3.3 PURCHASING PERSONNEL

° They are stated below with their duties and responsibilities and their

qualification.

3.3.1 Transport Officer

Duties and Responsibilities

1. Transport goods to different destinations

2. Ensure the vehicle used in transport is save from any danger

3. Identifies customers since he delivers goods to different places.

18
Qualificacation

1. Should have form 4 certificate with a mean grade of C plain

2. Able to speak National Languages (English and Kiswahili).

3.3.2 Marketing officer

Duties and Responsibilities

1. Should provide promotional activities to attract more Customers

2. Should be able to recognize the needs of the customers

3. Should sell the business reputation to the outside

Qualification

1. Should be good in communication with the public

2. At least be 33 and above years

3.3.3 Driver

Duties and Responsibilities

1. Transporting of goods from one point to another where needed.

2. Ensure the Lorries are well maintained and cleaned

Qualification

1. Must have driving license from the recognized Institute

2. Must age from 29- 36 years

3. Must have a certificate of good conduct

19
3.3.4 Security Man

Duties and Responsibilities

1. Responsible for maintaining and guiding the properties within

2. Keeping the records of wrong doers

Qualification

1. Must be at least 27- 40 years

2. At least form 4 certificates with a grade of D+ and above

3. Must have good conduct

3.4.0 RECRUITMENT, TRAINING AND PROMOTION

3.4.1 Recruitment

° The vacancy will be advertised through new; people, internet, radio

and it will specify all details and qualification capabilities.

° The cost will be 1000

PROCEDURE

1. Job Analysis

The business intends to recruit employees in the business according to

the laid down rules and regulations. The vacancies available will be

advertised through newspapers, radio and shows. The advertisement will

specify details, required qualifications and capabilities.

20
RENUMERATION AND INCENTIVES

° Employees will be paid at the end of every month while those working

on extra hours will be paid.

°Retirement benefits are going to be given to those employees who Will,

medical support and house allowance will be given.

PERSONEL SALARY PER MONTH SALARY PER YEAR

MANAGER 30 000 360 000

SUPERVISOR 20 000 240 000

PURCHASING MANAGER 19 000 228 000

ACCOUNTANT 17 000 204 000

TRANSPORT OFFICER 15 000 180 000

SUPPLIES OFFICER 13 000 150 000

21
 DRIVER 22 000 264 000

SECURITY MAN 9 000 108 000

CLEANER 6 000 72 000

TOTAL 167 000 2 004 000

3.5.2 INCENTIVE

1. Transportation

We will offer transport to those employees who working hard.

2. Housing

Will be provided to those employees who came from far places.

3.6 LICENCE PERMIT BY LAWS

°Brandon hardware enterprise will require a license to enable it

run smoothly. This license will be obtained from the county government

of west pokot

22
° The cost of these will be Ksh.4, 000.The business will comply with the

rules and regulations set by the County Government which shall be

governing the running of business.

3.6.1 Health and Safety Act

Waste disposal will be done according to the regulations and safety Act

provided by National Environmental Management (NEMA)

3.6.2 Health

Solution plumbing limited hardware will ensure the employees have the

dust coats, gloves, boots, masks and reflector jackets.

3.7 SUPPORT SERVICES

The following support staff and services will include;

1. Banking

The Accounts clerk will work for the best at what he can ensure all

funds are safely kept in the bank for security purposes, saving belonging

to the business are well kept in bank.

2. Managerial Advisors the Management team will be responsible to

ensure that all the hardware activities run smoothly and will cooperate to

find a solution to that.

23
CHAPTER FOUR

OPERATIONAL AND PRODUCTION PLANS

4.0 PRODUCT DESIGN AND DEVELOPMENT

The product and services to be offered will be of high quality. The

business intends to serve the population of Kapenguria and improve the

living standards of its employees.

TOOL AND SUPLIERS CASH UNIT TOTAL

NAILPER KG KALIA SHOP 500 500

PLIERS SUARAKA SHOP 100 100

TROWELS HAMASI STORES 260 260

MIXER KIKIRUK LIMITED 75 000 75 000

VIBRATORS STAR SHOR 30 000 30 000

24
 CRANES RISIKI SUPERMAKET 100 500 100 500

TINSNIP SITWARE SHOP 600 600

TOTAL 206 960 206 960

4.2 PRODUCTION OR OPERATIONAL FACILITIES AND

CAPACITY

ITEMS SUPPLIERS NO. COST TOTAL

COMPUTER KATU 3 20 000 60 000

TELEPHONE SAMSUNG 4 10 000 40 000

OFFICER WILSON OFFICER 2 15 000 30 000

CHAIRS KEN CHAIR 11 550 6 050

TOTAL 20 45 550 136 050

4.3 PRODUCTION OR SERVICE STRATEGY

Brandon hardware enterprise will undergo its production by

controlling sales and products through verifying books of accounts and balance sheet.

25

I will encourage the salesman to have good public relation with the
internal and external customer so as to customer to our products.

The price policy of the production will be ranging as the market price

supply and demand of goods. The profit margin added cost will prevail

on the competitors changing price on price margin will be adjusted to

manipulate the competition price.

4.3 PRODUCTION PROCESS

° The customer will be coming to purchase the products and make

payment at the accountant where they will be given a receipt of showing

quality, quantity and price of goods.

° The production will be brought by the purchasing manager and

brought into business by the transport Officer.

° Transport officer will help us to market our product since he supplies

goods to different clients.

4.4 REGULATIONS AFFECTING OPERATIONS

They include the employment act, workers compensation act and

national security act. The regulations of what conditions of employee’s

compensation for only injury while on work station the workers will

have to understand the work especially when operating the weighing

machines.

26

1. TAXATION
This is as compulsory contribution impose on individual to the expense

which is incurred for the common curve thus it will after the business

value added tax and income tax.

2. PUBLIC HEALTH

This is the act of hygiene conditions at the cereals store as well effects

on environment and also in food production.

27

CHAPTER FIVE
5.0 FINANCIAL PLAN

5.1 PRE-OPERATIONAL COST

This are cost that are incurred by the business before starting its

operational activities.

ITEM AMOUNT

GOOD WILL 30 000

RENT DEPOSIT 6 000

ELECTRICITY DEPOSIT 25 000

TELEPHONE 2 000

LICENSE 4 000

ADVERTISEMENT 1 500

WATER DEPOSIT 3 000

TOTAL 71 500

28

5.2 WORKING CAPITAL

CASH IN HAND 150 000 160 000 175 000

FAMILY AND FRIENDS 40 000 51 000 60 000

CASH IN BANK 50 000 48 000 32 000

STOCK AND RAW 390 000 410 000 430 000

CREDITORS 170 000 176 000 180 000

DEBTORS 240 000 250 000 250 000

TOTAL 1 040 000 845 000 697 000

5.3 PROPOSED CAPITALIZATION

ITEM AMOUNT

CASH AT BANK 70 000

29

TOTAL BOLLOWED FRIENDS AND FAMILY 40 000

TOTAL INVESTMENT 210 000

5.4 DESIRED FINANCING

ITEM AMOUNT

PRE-OPERATION COST 90 000

WORKING CAPITAL 1 010 000

FIXED ASSETS 2 000 500

TOTAL 3 100 500

30

5.5 SOLUTION PROJECTED CASH FLOW STATEMENT FOR

BEGINN 0 1423 1439 1483 15892 1389 1850 19165 2111 2161 214
ING 000 000 000 50 150 600 000 800 500 000
CASH

SALES 1950 1980 2000 2100 19000 2110 2150 23000 2350 2420 245
000 000 00 000 000 000 000 0 000 000 000

DEPTO 2000 1850 1900 1950 18000 2500 2650 25000 2430 2570 300
RS 00 00 00 00 0 00 00 00 00 00
COLLEC
TION

TOTAL 2150 2165 2190 2295 20800 2360 2415 25500 2593 2677 275
CASH 000 000 000 000 00 000 000 00 000 000 00
INFLO
W

PURCH 8000 8500 9100 9000 10000 1200 1100 80000 1020 2120 215
ASES 0 0 0 0 0 00 00 00 00 00

SALARY 2400 2400 2400 2400 24000 2400 2400 24000 2400 2400 240
AND 00 00 00 00 0 00 00 0 00 00 00
WAGES

WATER 1500 1800 1500 1800 2200 2000 1500 2000 1500 1200 150
BILLS 0

ELECTIC 1500 4430 1500 1800 19000 2000 2500 20000 1000 1500 200
ITY 0 0 0 0 0 0 0 0 0

31

BILL
REGISRATIO 2500 0 0 0 0 0 0 0 0 0 0
N

LISENCE/ 4500 0 0 0 0 0 0 0 0 0 0
PERMIT

ADVERTISIN 2000 1500 2000 150 1550 1400 100 120 500 200 180
G 0 0 0 0 0

INSURANCE 9400 9400 9400 940 9400 9400 940 940 940 940 940
0 0 0 00 0 0 00 00 00 00 00

TRANSPORT 3500 3700 4000 450 3500 6000 600 400 200 450 700
0 0 0 0 00

CREDITORS 2500 2460 2480 245 2200 1500 100 400 200 150 150
00 00 00 00 00 00 00 0 0 0 0

RENT 5000 5000 5000 500 5000 5000 500 500 500 500 500
0 0 0 0 0 0

TELEPHONE 2000 1800 1900 155 1500 1000 100 150 100 160 210
0 0 0 0 0 0

BANK 2500 1000 2600 250 2000 2500 200 250 100 250 315
0 0 0 0 0 0

32

MISCELLINEOU 2000 1500 2000 1900 2100 2500 3000 2000 1000
S
TOTAL CSH OUT 727000 726000 7070000 705750 690850 509400 498500 438200 4510
FLOW

BALANCE B/D 1423000 1439000 1483000 158925 138950 1850600 1916500 211180 2142
0 0

33

5.6 PERFORMANCE SHEET

ASSETS
CASH ASSET
CASH IN HAND 150000 160000 430000
CASH IN BANK 50000 48000 175000
DEPTORS 240000 250000 32000
COLLECTION 390000 410000 250000
STOCK OF RAW
MATERIAL

TOTAL CURRENT 830000 868000 887000

FIXED ASSETS
MACHINERY 8000 10000 120000
EQUIPMENT 120000 110000 20000

TOTAL FIXED ASSETS 128000 120000 140000

TOTAL ASSETS 958000 988000 1027000

34
LIABILITIES
CURRENT
LIABILITIES 170000 176000 180000
CREDITORS 15000 15000 15000
BANK OVERDRAFT

TOTAL CURRENT 185000 191000 195000

LONG TERM 13500 14500

TOTAL LONGTERM 160000 164000 170000

TOTAL LONGTERM
LIABILITIES

TOTAL LIABILITIES 310000 332000 332000

35

5.7 PROFORMANCE INCOME STATEMENT

SALES 10964000 302217760 617499200

COST OF GOODS 218100000 28060000 39390000

GROSS PROFIT 8787830030 274157700 578109260

EXPENSES
PURCHASES 984000 1585000 1450000
SALARY AND WAGES 2004000 2004000 2004000
WATER 208000 416000 624000
ELECTRICITY 181000 362000 362000
LICENSES 4000 4000 4000
ADVERTISEMENT 5000 5000 5000
INSURANCE 10000 12000 13000
TRASNSPORT 999400 1998800 1998800

36
 CREDITORS 60000 6000 6000

RENT 16150 17250 18200

TEREPHONE 24750 25000 2500

MISCELLINEOUS 15000 14000 17000

TAX EPENSES 3439300 6498050 6558500

PROFIT BEFORE TAX 76866030 295719710 55191420

TAX PROVISION 20% 15373206 59143942 11038284

5.8 BREAKING EVEN CALCULATION

Variable Cost

Item Ksh

Material cost 218800

Electrical cost 3000

37
Total 221800

Fixed Assets

Item

Rent 4000

Salaries 120000

Total 124000

Contribution margin

Sales - variable Cost

459700 - 221800

= 237900

Contribution margin %

(Contribution)*100

Sales

(237900)*100

459700

= 51.8 %

Break even sales

Fixed costs

38
Contribution margin %

(124000)*1000

(51.8)*1000

= 2393.82

39