BUSINESS PLAN

BUSINESS NAME : WAINRIGHT’S COSMETICS

PHONE NUMBER : 0795958807

EMAIL ADDRESS : odhiambowainright@gmail.com

PRESENTER : WAINRIGHT ADHIAMBO

INDEX NUMBER : 6161040325

INSTITUTION : SIGALAGALA NATIONAL POLYTECHNIC

COURSE : CERTIFICATE IN SOCIAL WORK AND COMMUNITY

DEVELOPMENT

ADMISSION NO : CCDW21S/4843

SERIES : JULY, 2023

SUBMITTED TO : KENYA NATIONAL EXAMINATION COUNCIL IN

FULFILMENT FOR THE AWARD OF A CERTIFICATE IN SOCIAL WORK AND
COMMUNITY DEVELOPMENT

i
 DECLARATION.
I hereby declare that this project is my original work and has never been submitted to any
institution of higher learning for academics at weekends, therefore, for any mistakes. I take full
responsibility, and stand to be corrected.

ii
 DEDICATION.
I dedicate this work to my parents for their continual support in my academic work for my
lecturers and the teaching professional for their moral support and financial support and advisors
throughout the course, may God bless them all. And to my supervisors Mr. Juma, who supported
me with the knowledge and skills of writing this plan. May God bless you.

iii
 ACKNOWLEDGMENT.
I'm grateful to my supervisor Mr Joma who helped me again, gain knowledge and skills, or
rather, will give me ideas on how to go about the business plan. The introduction of.

The business name, the name of the business will be when right cosmetics. It is a unique name
meaning an attractive person with the means. It is easy to remember I chose the name because no
one else had used the name before and it's very unique in that area. It will be starting with a
capital of 1 million which is a result of personal savings and a loan from banks.

iv
 EXECUTIVE SUMMARY
BUSINESS DESCRIPTION

Wainright’s cosmetics is to be situated in Kanyadhiang’ along Kendu bay-Kisumu junction. It

will be a service offering business dealing with selling of;

 Both ladies and men hair or dye

 Ladies perfume
 Ornaments e.g bearing, necklace for ladies and men
 Sanitary towels
 Salon equipments e.g detergents, and combs
 Soaps e.g bar soap
 Body lotion

MARKETING PLAN

Wainright’s cosmetics is looking forward to supply its products to the nearby schools and in
institutions such as;

 Mawego technical school

 Vera’s cosmetic shop
 All beauty shops and saloons in Kanyadhiang’ and Kendu bay town as a whole
 Otok mixed secondary school

ORGANIZATIONAL PLAN.

The business will maintain a simple organizational structure where the manager will be overall in
charge of the business- however he will be assisted by financial manager who will be in charge
of personnel involved in the business, it also have other employees such as

 Security guards
 Cleaners
 Casual workers

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OPERATIONAL PLAN

This is a vital aspect in the business organization which intends to minimize its operational cost
and maximize its profits. It will also show the methods to be use in order to win more customers
and expand the business.

FINANCIAL PLAN

The financial plan is important because it shows how capital shall be raised and spent. The
financial information is contained in Profoma statements, projected cash flow, balance sheet,
break even points, pre operational cost and working capital estimates. In this plan a three year
projection is made so as to be able to predict the profit margin within the first three years.

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 Contents
DECLARATION..............................................................................................................................................ii
DEDICATION................................................................................................................................................iii
ACKNOWLEDGMENT...................................................................................................................................iv
CHAPTER ONE..............................................................................................................................................1
1.0 business description..........................................................................................................................1
1.1 Business Name...................................................................................................................................1
1.2 business location and address...........................................................................................................1
1.3 Form of business ownership..............................................................................................................2
1.4 types of business...............................................................................................................................2
1.5 products and services........................................................................................................................2
1.6 justification of the business opportunity...........................................................................................3
1.7 goals of the business..........................................................................................................................3
1.8 ENTRY AND A GROWTH STRATEGY....................................................................................................4
Entry strategy......................................................................................................................................4
Growth Strategy..................................................................................................................................4
1.9 INDUSTRY..........................................................................................................................................4
CHAPTER TWO.............................................................................................................................................5
2.0 MARKET PLAN....................................................................................................................................5
2.1 POTENTIAL CUSTOMERS....................................................................................................................5
2.2 COMPETITION....................................................................................................................................5
2.3 MARKET SHARE..................................................................................................................................7
2.4 PRICING STRATEGY............................................................................................................................8
2.5 METHODS OF PROMOTION AND ADVERTISEMENT...........................................................................8
promotion............................................................................................................................................9
2.6 SALES TACTICS...................................................................................................................................9
2.7 DISTRIBUTION STRATEGY..................................................................................................................9
Channel of distribution......................................................................................................................10
...............................................................................................................................................................10
2.6 SALES TACTICS.................................................................................................................................10
2.7 DISTRIBUTION CHANNEL.................................................................................................................11
CHAPTER THREE........................................................................................................................................12

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 3.0 ORGANIZATIONAL AND MANAGEMENT..........................................................................................12
ORGANIZATIONAL STRUCTURE..............................................................................................................12
3.1 MANAGEMENT TEAM AND QUALIFICATION...................................................................................13
3.2 RECRUITMENT AND PROMOTION SERVICES PROCEDURE...............................................................15
3.21 Recruitment...................................................................................................................................15
3.3 REMUNERATION AND INCENTIVES..................................................................................................15
3.4 TRAINING.........................................................................................................................................16
3.6 LICENSE PERMIT BYLAWS................................................................................................................16
3.7 BUSINESS CONTROL OF ASSETS AND DISPOSAL..............................................................................16
4.0 OPERATIONAL PRODUCTION PLAN..................................................................................................18
4.1 PRODUCTION DESIGN OR DEVELOPMENT.......................................................................................18
4.2 PRODUCTION FACILITIES AND EQUIPMENT.....................................................................................19
4.3 REPAIR AND MAINTENANCE............................................................................................................19
4.4 PRODUCTION STRATEGY..................................................................................................................19
4.5 PRODUCTION PROCESS....................................................................................................................20
4.6 GOVERNMENT REGULATION AFFECTING BUSINESS OPERATION....................................................20
CHAPTER FIVE............................................................................................................................................22
5.0 INTRODUCTION...............................................................................................................................22
5.1 PRE OPERATIONAL COST..................................................................................................................22
5.2 WORKING CAPITAL..........................................................................................................................23
5.3 PROFOMA CASH FLOW STATEMENT................................................................................................24
5.3.1 PROFOMA CASH FLOW STATEMENT OF WAINRIGHTS COSMETICS FOR 2024..........................24
5.3.2 PROFOMA CASH STATEMENT FOR WEINRIGTS’S COSMETICS FOR 2025..................................25
5.3.3 PROFOMA CASH FLOW STATEMENT FOR WINRIGHTS’S COSMETICS FOR 2026.......................26
5.4 PROFOMA INCOME STATEMENT FOR WINRIGHT’S COSMETICS FOR THE YEAR 2024, 2025, 2026. 27
5.5 PROFOMA BALANCE SHEET FOR THE YEAR 2024,2025 AND 2026...................................................27
5.6 BREAK EVEN POINTS........................................................................................................................28
5.7 PROFITABILITY RATIO FOR 2024,2025,2026....................................................................................29
5.8 DESIRED FINANCING FOR FIRST YEAR..............................................................................................29
5.9 PROPOSED CAPITALIZATION............................................................................................................29

viii
 CHAPTER ONE
1.0 BUSINESS DESCRIPTION
The business will be self-sponsored and the main of the sole proprietorship business is to
generate profit for the owner. It will also enable the owner to be in the position to put into
practice their acquired skills for profitability. The business intends to be done appropriately so
that it can be one of the businesses that leads in the region offering goods and service to the
customers. It usually start as a small scale business and then plans for expansion shall be
implemented in first so as to reach in this capacity

1.1 BUSINESS NAME

The name will be Wainwright cosmetics, Wainwright's cosmetics, and it will be starting with
capital of 1 million which is a result of personal savings under loan from banks, when the right is
just an English name. Meaning a person with an attractive, easy to read and remember and it is
also very unique.

1.2 BUSINESS LOCATION AND ADDRESS

Wainwright cosmetics center shall be located at Kendu Bay town along Homa Bay- Kisumu
Road, famously known as Pala, junction this area is suitable since it is frequented by many
people visiting Simbi Nyaima, those that travels to Kendu Bay town, Gendia and Nyakach. The
location is also suitable since it is clearly visible to all persons passing through this junction
hence makes it easy to stop by and shop for any of the products intended to offer. The business
will trade under the following address.

WAINRIGHT’S COSMETICS

P.O BOX 415

KENUDU BAY

0795958807

adhiambowainright@gmail.com

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1.3 FORM OF BUSINESS OWNERSHIP
Wainwrights’ cosmetic are a sole proprietorship business. This choice of ownership is due to the
reasons below.

i. It is easy for the owner to ensure proper management

ii. the owner will be enjoying the profits by herself.
iii. The owner has the capability to raise a big percentage of their starting capital.
iv. The owner will be flexible to make a decision affecting the direction of the business

1.4 TYPES OF BUSINESS

It can be said that business can be a startup business, it will be a small scale business, and it will
be new in the market. It aims at meeting the needs of the customers and those that are in need of
cosmetics for their personal body benefit such as students, while improving and maintaining
beauty or their physical appearance. The business therefore provides its services to an affordable
or fair price so as to generate profit which will help one to expand the business

1.5 PRODUCTS AND SERVICES

The proposed business offers services and products which includes the following

 Salon equipment e.g. dryers heaters, combs and sanitary towels,

 ladies and men perfumes
 hair weaves and wigs for women.
 Ornaments, e.g.necklaces, earrings and bangles.
 Body Lotion for both Ladies and gentlemen,
 detergents,
 Toilet soaps, bar soaps falling under soaps.

The products shall be provided at an affordable or fair price. Discounts shall be offered
according to qualify for all bulk purchases made in order to retain the loyal customers. The
products shall be sold in bulk as per the orders made and hence high quality services will be
offered for customer’s satisfaction

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1.6 JUSTIFICATION OF THE BUSINESS OPPORTUNITY
In recent years it has been very difficult to find common beauty products in Pala or rather Kendu
Bay town. As a result, people traveling to can do it on from bigger towns such as Kisumu and
Homa Bay to carry their beauty products all the way in order to avoid inconveniences this
situation has been prevalent for several years and in order aren't keen to break down, I will not
capitalized on this huge and ready market. This presents a very good business opportunity that
we're in right Cosmetics is willing to take its business in order to capitalize on its bringing out a
viable solution. Which will also help in creating employment and also as a money making.
Venture

1.7 GOALS OF THE BUSINESS

The business intends to be largest and leading business in Kendu Bay and it is intended to have a
few employees as possible and to be in a position of offering the best services in

Short term goals

Before the end of the first year the business intends to make a profit of approximately 400,000.
To put into practice the entrepreneurial skills acquired from school to solve the existing problems
of inadequate supply of beauty products in Kendu Bay town

Long term goals

In the next eight years the business intends to have the following in place

 To create less than six beauty shops outlets of the Wainwright's cosmetic branches in all
the leading towns for the business to expand thus bringing a positive solution of the
issues at hand like unemployment.
 It is intended that at the end of 8 years, the business is to have the highest capacity to
purchase goods in larger quantities to all branches from the manufacturers and save them
to any other upcoming businesses

3
1.8 ENTRY AND A GROWTH STRATEGY
Business intends to offer customers’ commissions’ bulk purchase while for the regular purchase.
Fair prices will be considered with default also to maintain some acceptable profit margin. This
will ensure that good business returns are realized even at those reduced price or rather the fair
price of goods the owner intends to purchase or pickup for transporting goods and services from
the supplier to the business premise This will ensure transportation cost is reduced. Also business
advertisements will be printed on the vehicle in order to make the business of Wainwright's
cosmetics known to most of the target customers employees motivation will be also be a key
factor in order to ensure customers are treated with utmost care and dignity and are satisfied with
our services. This can only be done when our employees are well motivated and have a sense of
belonging to their business employees motivation very well include fair wages and some
allowances given us by the sales realized.

Entry strategy
Since some products are new in the market in this area, the business intends to offer free samples
to some specific targeted customers such as salons and beauty colleagues. We all signed tend to
participate in open air marketing forums where some casual employees will be charged with the
task of working around the neighboring towns, explaining the use and importance of our
products to such schools, colleges and other higher learning institutions. This will in turn help to
research to reach customers who may be unaware of these products or even their business
existence.

Growth Strategy.
This will be achieved by identifying growth segments within an overall market enhancing quality
and assessing operating efficiencies in Supplementary supply patterns. source for cosmetics
products to the schools like colleges and higher learning institutions, thus utilizing more about
labor activity. Most of the profit made during the first year will be channeled toward investing
our targets but our range of products and if possible, starting new outlets in neighboring towns.

1.9 INDUSTRY
The purpose business belongs to cosmetics industry which captures about 80% of population
realizing in our given area, ie in schools, colleges and even universities the business will be a
medium size. Business and its growth will largely depend on demand for its beauty products.

4
 CHAPTER TWO
2.0 MARKET PLAN
Wainwright's Cosmetics is looking forward to supply its products to nearby schools and
institutions is also frequented by many people during weekends and along holidays and also
targeted by the business. Some of the factors which will favor this business include the
following;

 good transport and communication system

 availability of stable labor force
 availability of electricity supply
 good infrastructure
 good supply of water

2.1 POTENTIAL CUSTOMERS

Our targeted customers include the following

a. all the beauty shops and salons in Kendu Bay, kanyadhiang’ and the surroundings.
b. St. George Agola Owuor high school
c. Simbi high school
d. Otok mixed Secondary School
e. Mawego TTI

All the people living in Kanyadhiang’ and the surrounding with good and intensive marketing
Wainright’s cosmetics intends to secure a very large customer base in this area hence boosting
the chances for success

2.2 COMPETITION
The business is likely to face stiff competition from other businesss in the beauty sector in
Kanyadhiang area. The major competitors with their market shares after the entry of Wainright’s
cosmetics

5
Wainright’s cosmetics will have the following competitors; be the Customer Center blessing
cosmetics, Armani beauty cosmetics better lady cosmetics etc

Competitors Streangth Weakness

Wainright’s cosmetics Offer a range of new products Inadequade employees
that are not currently Language barrier- some
availabale in Kanyadhiang’ customers who does not
town. understand neither English nor
Will capitalize on this so that Kiswahili find it hard to
as our customers prefer to do explain what they need.
all their shopping in one at our Lack of enough resourses to
place. expand the business
Affordable price range Lack of co-operation with
Delivers to customers who some employees.
purchase in bulk will be made
at fair prices
Bidii cosmo centre High quality goods Weakness is that much effort
Good customer’s service has been based in the outlets
in major town neglecting their
business outlet in
Kanyadhiang’
Are small scale business with
small customer base
The range of products is not
wide as compared to best lady
cosmetics hence will not
present stiff competition to
Winright’s Cosmetics

6
Amani beuty cosmetics Long operating hours Poor customer service
Affordable price range Low quality goods
Great influence buying Inadequate employees to
patterns operate the business well
Best lady cosmetics Being the strongest competitor Much efforts has been based
it has good distribution in the outlets in major towns
network neglecting their business
It has many outlets in major outlet in Kendu Bay town.
towns such as Nairobi and
Nakuru
Offers a wide range of
products.

ways of overcoming the competition

wainright’s cosmetics looks forward to offering a range of new products that are not currently in
Kanyadhiang Kendu Bay town. this will capitalize on this or rather will greatly influence the
buying patterns of beauty products in this area since most customers prefer to do all their
shopping in one line label plays Wainright’s cosmetics will capitalize on this so that our
customers come to do their regular shopping all the desired goods will be made available and at
the right stock in order to avoid disappointments to our customers with this an affordable price
range when the right Cosmetics is likely to rise and become the biggest business in the beauty
industry in Kindle beta and overcoming the competition among other competitors.

2.3 MARKET SHARE

Winright’s cosmetics aims to secure larger customer base of around 54% of their total share
against me the 14% beauty cosmetics 11% And the best lady cosmetics at 21%.

Market share Table

NAME SELLING PRICE MONTHLY INCOME PERCENTAGE

Wainright’s cosmetics 15000 450000 54
Bidii cosmo centre 4000 120000 14

7
Amani beauty 3000 90000 11
Best lady 6000 180000 21
TOTAL 28000 840000 100

MARKET SHARE PRESENTED USING PIE CHART

market share

21%

wainright's cosmetics
amani beuty cosmetics
bidii cosmo centre
best lady cosmetics
54%
14%

11%

2.4 PRICING STRATEGY

All the onset of the business places allocated to products will be minimal compared to the other
prevailing prices in the market. This strategy will be valuable in order to attract as many
customers as possible. This will also ensure that the business picks up at the first speed. I change
in prices will therefore be determined by demand for our products. When demand is high, prices
will rise accordingly and when the demand is low praise which shall be lowered accordingly.

2.5 METHODS OF PROMOTION AND ADVERTISEMENT

promotions will be given in form of free samples only to selected customers for pricing for
products will also be a consideration to provide Cash Discounts and allowances to the potential
customers promotions and campaigns will be done to ensure that the products offered are well

8
known to all our target customers everywhere within our region of influence. Customers will
also be well informed of have some of our products or services which will be offered free of
charge or at a fairly low price. The business however, intends to advertise its products through;

 local radio stations (Gulf radio),

 local television station
 road shows,
 posters
 hand bills
 local newspapers

The cost will be ksh 3500 to provide the services

At the onset of the business advertisement on radios will be made three times a day for at least
one week to ensure that all our targeted customers have been reached.

This will ensure that the busyness picks up women godly spinners expected

promotion.
Promotions will be done through road shows at least once per month. A good road show
program will be set up which allow our customers to flourish effectively and also in this road
show,they will have entertainments accompanied by a free samples and places to be one after
participating and winning a range of activities the business shall do. This means also the category
where our legal customers shall be awarded for their loyality and the big support

2.6 SALES TACTICS

The tactics which will be used in their products is to ensure that there is no shortage of supplies
at any one time. Those products which are used regularly and rated at a higher prices shall be
given at a slightly lower places as compared to our competitors. While low products shall be
retained that slightly places compared to those of our competitors. This will ensure that the
profitability index is balanced is balanced the business will be offering Commission's to loyal
customers and events after sale services

9
2.7 DISTRIBUTION STRATEGY
Our products shall be supplied to our customers using pickup trucks especially for those who
purchase our goods in bulk motorbikes and even using bicycle. Plans shall be put in place to
ensure safe and reliable deliveries products, shoulder is in the customers in the right condition
and quantity and also at the right time

Channel of distribution
The products shall be provided at affordable prices, discount shall be offered accordingly. For all
bulk purchases in order to retain our loyal customers, the products shall be sold in bulk as per the
orders made and hence high quality services will be offered for customer satisfaction.

PRODUCERE WHOLESALER RETAILER CUSTOMER

2.6 SALES TACTICS

The tactics which we'll be using the product is to innovate and update products because our
cosmetics business needs to stay up to date with the latest industry trends and innovations to
remain competitive, providing excellent customer service. A business can retain its customers by
providing excellent customer service, which includes hairdressing customers concerns promptly
and efficiently and ensuring that the customer has a positive experience. Advertising and
Marketing and Business will use various advertising and marketing technique to promote its
products and increase brand awareness, such as social media ads, email marketing in offense,
marketing, and print ads. Developing a strong brand presence. A cosmetic business will build a
strong brand presence that customers can identify with. It can do this by having this distinctive
look logo and packaging using unique product names and having a distinct brand voice offering
sample discounts the business may offer customers the chance to sample its product for free or
reduced price. This is a great way to attract new customers and encourage them to try the
products

10
 2.7 DISTRIBUTION CHANNEL

PRODUCER RETAILER MANUFUCTURER CUNSUMER

PRODUCER MANUFUCTUR CONSUMER

ER

PRODUCER RETAILER CONSUMER

PRODUCER CONSUMER

11
 CHAPTER THREE
3.0 ORGANIZATIONAL AND MANAGEMENT
The business will maintain a simple and flat organization structure when the manager will be
overall in charge of the business. However he/she will be charge of personnel of the business.
Other non staff members include;

 Watchman
 Casual workers
 Cleaners

ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

CEO

MANAGEMENT GMP RELIABILITY

R &D SALES
AND PLANNING PROMOTION QUARANTEE
DEPARTMENT DEPARTMENT
DEPARTMENT DEPARTMENT DEPARTMENT

FINANCE AND SAFETY

QUALITY INTERNATIONAL
ACCOUNTING MANAGEMENT
CONTROL UNIT MARKETING
UNIT 12 GROUP
3.1 MANAGEMENT TEAM AND QUALIFICATION
MANAGER

Qualifications

 He/she should be 24 years and above

 He/she should be a diploma holder in business management
 He/she should have good moral

RESPONSIBILITIES

 He/she is responsible for paying employees

 He/she should be set goals and objectives of the business
 He/she should participate in organization of the business.

3.2.2 PROMOTION

Promotion will be done according to expense in the job or tenure.

And the next way is the high performance level in (two) recent review cycles

Skills set that matches the minimum requirements of the new role

Personal motivation and willingness for a change in responsibilities

Through performance of an employee, skills, qualifications and work ethic on employee is

committed towards his/her work such that he/she works until overtime and also comes early
work to work promotion can be awarded to them.

13
ACCOUNTANT

Accountant

Qualifications

 He/she will be having good leadership skills.

 He/she should be at least 23 years and above
 He/she must have a certificate of good conduct.
 He/she will be a diploma holder in accounting.
 He/she will have the qualities of good leader

Responsibilities

 He /she should be proper planning in business. She will ensure that there is constant
support or supply of products.
 He/she will descend inquiries on time she will be able to keep the records of the business
and the business personnel

salesman

Qualifications

 aged 22 years and above

 have a working experience of at least one year in sales position
 able to negotiate the prices of our products
 able to speak well to the clients

Responsibilities.

 Market our products

 persuade the customers to have the products
 issue and package purchased items

watchman

Qualifications

14
  Shall be at least the holder of KCSE certificate
 He/she will be a resident of Kendu bay town
 should have no records of criminal offense
 shall have no health issues, hence good health

Responsibilities.

 Enforce the security of business its assets, products and personnel

 reports any theft cases in the business organization to their senior staff.

clerk

is the person who will be concerned with that entry and the analysis of various activities in the
business

qualifications

 shall be computer literate

 good communication skills
 fluent in both English and Kiswahili.
 diploma in secretarial in computer science

responsibilities

 ensuring the record database and the duties that may be assigned by the manager
 keeping the records database

3.2 RECRUITMENT AND PROMOTION SERVICES PROCEDURE

3.21 Recruitment
The recruitment will be done at the advertisement vacancies by ensuring that the information has
been put to the public notice but posters following the trends of qualifications and methods being
specified for the promotion of personnel will be depending upon the hardwork of employees this
will thus inform of increasing their wages and salaries. Permission will be learned by considering
the hard work of the individuals’ employees under the decree of the individual's performance.
When employees are determined or rather when an individual among the employees is

15
determined to his or her work. He or she will be promoted when a qualified person makes the
business grow. Promotion will be forwarded to him or her

3.3 REMUNERATION AND INCENTIVES

The employees are being paid after every month of emergency in between the month thus
employees is given cost up to 45% of his her salary. And also there will be a trip allowance for
sh1000 in case of retirement. Pensions are being given out to them and out as a single week after
a period of months.

Position Number of Monthly salary Allowance Total

workers
Manager 1 18000 2500 20500
Accountant 1 10000 1500 11500
Salesman 12 8000 1000 18000
Clerk 1 6000 800 6800
Security 1 5500 500 6000
62,800

3.4 TRAINING
This will be there for them after every five months and it will be done by either organizing for a
trip visit some places related or dealing with this business. This will enable employees to be
qualified more enough and expand their knowledge on their work.

3.6 LICENSE PERMIT BYLAWS

a legal business organization request lenses for the operation of the business by required county
council or rather, the county government of Homa Bay County said let's enable one's business to
progress monitoring without the interference by the government. The business permits is also
needed for the business to register as a sole proprietorship name of the owner and registration
fees is sh 2500. Those requirements will be renewed every year.

16
3.7 BUSINESS CONTROL OF ASSETS AND DISPOSAL
For the proper operation of the business they are some of the services we support them i.e. banks
where the business can borrow money from the bank that is family bank. This will support the
business fully.

insurance where the business has been insured by Blue Shield insurance company for fire and
theft. In case these unfortunate events occur, the business will be compensated and will resume
its operation immediately with minimum time wastage.

It will be paying a monthly contribution of sh1500 per month. This is the best way of
maintaining assets.

Disposal

The waste products separate from the cosmetics shop will be thrown into the dark behind the
building.

License permit by law,

A legal business organization request lenses for the operation of a business. The business license
will be obtained from the county government of Houma Bay County. Doing this the name of 123
the urge to do business or rather for the business to progress model without the interference by
the government. The business permit is also needed for the business to register as a sole
proprietorship name of the owner and registration fees is sh 2500. Those requirements will be
renewed every year.

17
 CHAPTER FOUR
4.0 OPERATIONAL PRODUCTION PLAN
Operational plan is vital aspects in business organization which, however, trends to minimum or
rather minimize the operational costs and aims at maximizing profit. It does deals with complete
mobilization and exploitation of resources available for the business operation following the
market plan dealing with the planning services so to put time cost and Labor's This will enable
the business to be potential by ensuring that it provide the best services to its potential customers,
thus making it to prosper in its work. It will do its activities or in 12 hours basis

4.1 PRODUCTION DESIGN OR DEVELOPMENT.

TOILETS BATHROOM STOREROOM

SALESMAN’S MANAGERS
DISPLAY SHELVES DISPLAY SHELVES OFFICE OFFICE

DISPLAY SHELVES
VFINANCIAL
OFFICE

WATCHMAN’S
ROOM
18
 MAIN GATE VEHICLE PARKING

This is how Wainwright's cosmetics layout of the business will look like.

The premises of the business layout shall be devided into three sections that is;

a) Sales area
b) Storage area
c) Receiving area

The customers will be received at the receiving area from there they will be devided into 2 that is

 Approved store
 Rejected store

The manager and the financial manager will have their offices separately. The sales person
will not have any office.

4.2 PRODUCTION FACILITIES AND EQUIPMENT

For efficient operation of the business. There are a number of facilities such as tool equipment,
and machines that are required for this church and a smooth running of their business this
facilities that ensures that efficient and effective operation of the business is serving its
customers. The facilities will be acquired from supermarkets, all sales and they will be
transported using vehicle from the owner of the business

19
4.3 REPAIR AND MAINTENANCE
The business organization shall hire technicians and competitors for repair and maintenance.
This shall be done annually in addition to this the business shall avoid management of machines
which will therefore lead to its break down

4.4 PRODUCTION STRATEGY.

The finished products are ordered by sending the letter of inquiries for the price of the various
products. These letters are sent through the email and sometimes through security vehicles such
as G4s. The financial manager will wait for the reply to the latest under this involves sent to the
back to the organization so that he will send money of the products to the premises of the
business layouts shall be divided into section will see your suppliers

A table showing monthly production and amount

ITEMS COST
Electricity 3000
Bronchures 2500
Consultants 1000
Revenue 25000
Salary and wages 150000
Insurance 1600
Licence 1400
Repair and maintenance 10000
Total 203,500

4.5 PRODUCTION PROCESS

After ordering various products from the supplier they shall be delivered to the business
organization by the use of owners vehicles this enables the owner of the business to be in that
position of the transportation costs instead of using the hired vehicles

4.6 GOVERNMENT REGULATION AFFECTING BUSINESS OPERATION

Political instability

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Whatever there is an ulcer or lack of peace within the country the business organization will be
greatly affected as most of them will be closed. Also there will be no frequent supply of products
as some of the suppliers offices will be closed or destroyed by the people around.

Registration laws

All the business in the country shall be should operate under the registered act. Any business that
does not have insurance permits shall be offered by law that's leading to his close up. It will be
done in Kendu Bay town from the county government offices.

Health act

All the business in the country why this should operate. Under the hygiene condition by
providing essential amenities such as;

 dumping site
 toilets
 clean water provision

Without any of these amenities the business will be closed. This is because it is according to the
Public Health Act. The business will ensure that there are enough washrooms adequate water and
good waste disposal

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 CHAPTER FIVE
5.0 INTRODUCTION
This is important constitute in a business plan since it determines the business viability and
flexibility.

It shows how the funds shall be received then spent

It includes;

 Proposed capitalization
 Working capital
 Profoma increase statements
 Profoma balance sheets
 Pre operational cost
 Break even points
 Projected cash flow.

5.1 PRE OPERATIONAL COST

These are all the cost incurred while the business is in the course of starting the business
operational and includes;

PARTICULARS AMOUNT
LAND AND ACQUISITION 50000
LICENSE AND PERMIT 5500
MISLENEOUS 50000
ADVERTISEMENT AND 15000

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 TRANSPORTATION
VEHICLE PURCHASE 250000
OPERATING STOCK 300000
WATER AND ELECTRICITY 2000
TOTAL 672,500

5.2 WORKING CAPITAL

These are the amount of money required so that the business can operate. It is therefore
calculated as;

Working capital= current assets-current liabilities.

PARTICULARS YEAR 1 2024 YEAR 2 2025 YEAR 3 2026

CURRENT ASSETS
STOCK 100000 150000 285000
DEBTORS 200000 30000 40000
CASH AT HAND 60000 100000 82000
CASH AT BANK 200000 200000 135000
TOTAL 560,000 480000 456000

CURRENT LIABILITIES
CREDITORS 30000 30000 50000
PURCHASES 50000 15000 200000
SALARIES 200000 200000 150000
BANK OVERDRAFT 60000 60000 10000
TOTAL 340,000 305000 230000
WORKING CAPITAL 220,000 175000 226000

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 5.3 PROFOMA CASH FLOW STATEMENT
This shows the cash operations in and out of the business in the next three years (3years)

5.3.1 PROFOMA CASH FLOW STATEMENT OF WAINRIGHTS COSMETICS FOR 2024

PARTICULAR JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEP OCT NOV DEC TOTAL
CASH INFLOW
Beginning capital 1000000 1000000
Sales 65000 90000 70200 90050 79000 90000 91000 84000 96000 91000 99000 94000 949000
Debtor 30000 10000 30200 20000 18800 21000 21600 18100 15000 10000 11200 21800 317700
Total cash inflow 1095000 100000 10000 110050 97800 11000 112600 102100 111000 109000 110200 115800 2267400
Preoperational cost 38000 10000 8000 4000 5000 1000 3100 2400 5500 3000 3400 4600 88000
Purchases S21000 20000 31000 29000 25000 40000 35000 33100 31500 29500 28000 44000 367100
Creditors 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000
Expenses 14000 9000 112000 10000 8000 10000 6000 5000 6000 8000 7000 12000 107000
Rent 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 66000
Salary/wages 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 360000
Electricity 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 15600
Water bill 1500 1000 1200 2000 1700 1400 2000 1300 1500 3000 1400 16000 20700
Misleneus 800 1000 1200 1000 700 900 800 800 1200 1200 800 1200 11800
Total outflow 101500 89500 92959 93800 88888 102000 94730 90650 94780 92900 102400 112300 1156500
Net profit 993500 10500 7450 16250 4000 9300 17850 11450 16250 16100 7800 3500 1113950

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 5.3.2 PROFOMA CASH STATEMENT FOR WEINRIGTS’S COSMETICS FOR 2025
PARTICULAR JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEP OCT NOV DEC TOTAL
CASH INFLOW
Sales 75000 91000 74000 97000 66000 73000 85000 73000 85000 120000 97000 150000 941000
Debtor 7600 4000 5400 800 1600 725 800 7100 6300 5600 380 1120 35425
Total cash inflow 76600 95000 794000 97800 67600 73125 88800 85100 91300 125600 97380 151120 976925
Cash outflow
Preoperational cost 4500 4000 3500 2800 3300 5000 4500 5200 4950 5500 2850 6000 82100
Purchases 40000 16000 10100 8000 7500 7300 12500 19900 15000 8000 13500 13500 163200
Creditors 1500 2600 2000 2000 8000 8000 8000 8000 8000 8000 7000 4000 73350
Expenses 12000 9500 14000 10000 11000 7500 6400 6000 6000 4400 5600 7400 99800
Rent 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 66000
Salary/wages 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 360000
Electricity 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 15600
Water bill 400 1300 1600 1600 1350 1550 2300 1200 2300 2300 1200 1850 19680
Misleneus 700 700 700 700 700 800 800 950 1000 1050 450 900 10850
Total outflow 63100 86100 7770 66330 66680 63800 69280 79500 86830 85150 65230 75450 884980
Net profit 1300 8900 1650 31470 920 9925 19520 5800 4470 40470 32150 75670 232245

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 5.3.3 PROFOMA CASH FLOW STATEMENT FOR WINRIGHTS’S COSMETICS FOR 2026
PARTICULAR JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEP OCT NOV DEC TOTAL
CASH INFLOW
Sales 75000 92000 80200 90800 89000 91000 80500 94000 96000 98000 93000 84000 1066500
Debtor 32000 18000 34200 20400 16800 725 800 7100 6300 5600 21800 18100 240700
Total cash inflow 110000 110000 114400 110800 105800 113000 100100 109000 108000 109200 114800 102100 1307200
Cash outflow
Preoperational 26000 12000 8000 3000 5000 2000 32000 24000 54000 3000 3200 4400 75600
cost
Purchases 18000 21000 30000 28000 24000 22100 38000 31600 40000 39600 28000 34000 344300
Creditors 6000 6000 2500 5500 6000 8000 4500 8000 6000 6000 4200 98000 42500
Expenses 9000 8000 14000 5000 10000 5000 4000 6000 6000 4400 12000 4000 93000
Rent 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 66000
Salary/wages 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 360000
Electricity 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 15600
Water bill 400 1300 1600 1600 1350 1550 2300 1200 2300 2300 1200 1850 19680
Misleneus 800 1000 1200 1000 700 900 100 900 800 12000 8000 700 11300
Total outflow 98900 89500 96400 87300 87800 80350 88350 90150 102200 90500 90400 93700 1007750
Net profit 11100 20500 18000 23500 18000 32200 11750 18850 5800 18700 24400 8400 211700

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5.4 PROFOMA INCOME STATEMENT FOR WINRIGHT’S COSMETICS FOR
THE YEAR 2024, 2025, 2026
PARTICULAR 2024 2025 2026
Sales 868000 894000 916000
Less purchase 367100 344300 163200
Gross profit 500900 730800 571700
Less expense 107000 99800 93000
Net profit before tax 393900 631000 478700
Less 10% tax 39390 63100 47870
Net profit after tax 354570 567900 430830

5.5 PROFOMA BALANCE SHEET FOR THE YEAR 2024,2025 AND 2026
PARTICULAR 2024 2025 2026
Fixed cost 18350 187250 33000
Equipment 18805 2000 24000
Material 10350 18720 3300
Furniture 5800 6800 7000
TOTAL 34955 45520 34300
CURRENT ASSETS
Cash at bank 100000 200000 120000
Cash at hand 60000 100000 80000
Debtor 20000 35000 30000
Stock 100000 160000 334000
TOTAL ASSETS 314555 495000 252400
CURRENT
LIABILITIES
Creditor 6000 34300 36520
Bank overdraft 100000 36000 42000
TOTAL 160,000 70,300 78,520
OWNERS EQUITY=

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TOTAL ASSETS- 154555 424700 173880
TOTAL CURENT
LIABILITIES+ 354570 567900 430830
NET PROFIT 509125 992600 604710

5.6 BREAK EVEN POINTS

B.E.P =1- fixed cost

Variable cost

PARTICULAR 2024 2025 2026

FIXED COST
Rent 66000 66000 66000
Salary/Wages 36000 36000 36000
Total Fixed Cost 426000 426000 426000
VARIABLE COST
Purchases 367100 163200 344300
Electricity bill 15600 16800 16100
Water bill 20700 19650 19100
Transport 19300 20280 18800
Misleneous 11800 10850 11300
Renumeration 14400 11100 13200
Depreciation 8400 6050 8400
TOTAL 441700 247930 431200
VARIABLESCOST 0.03855 -0.71826 -0.01206
BET

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 5.7 PROFITABILITY RATIO FOR 2024,2025,2026
PARTICULAR 2024 2025 2026
Gross profit ratio = 500900X100 = 730800X100 = 571700X100
= GPX100 949700 930000 10600
SALES = 52.74% =78.58%

RETURN ON EQUITY = 354570X100 567900X100 530830X100

= net profit after taxX100 509125 992600 604710
Owners equity =69.6% =57.2% =87.8%

RETURN ON INVESTMENT 354570X100 567900X100 430530X100

= net profit after taxX100 31455 495000 252400
total investment =27.2% =47% =69.3%

5.8 DESIRED FINANCING FOR FIRST YEAR

PARTICULAR AMOUNT
Starting capital 1000000
Pre-operational cost 88000
Working capital 220000
Total 1,308,000

5.9 PROPOSED CAPITALIZATION

PARTICULAR AMOUNT
Personal savings 500000
Contributions 300000
Bank loan 200000
Total 1000000

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