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BUSINESS PLAN

Table of Contents CONTENT PAGE TABLE OF CONTENT..2 EXECUTIVE SUMMARY.3 BUSINESS DESCRIPTION4 INDUSTRY ANALYSIS..9 MARKETING PLAN...10 SWOT ANALSYS.13 SALES TACTIVS & PRICING...15 PROMOTION AND ADVERTISEMENT..17 MANAGEMENT AND ORGANIZATION PLAN.19 ORGANIZATION CHART22 RECRUITMENT TRAINING AND PROMOTION..23 LICENSES, PERMITS AND BY-LAWS..25 PRODUCTION/OPERATIONAL PLAN..26 PRODUCTION COST..28 FINANCIAL PLAN32 BIOGRAPHIES OF THE COMPANY OWNERS42

EXECUTIVE SUMMARY A feasibility study was undertaken, where the student carried out a study on the existing business in a bid to establish the viability of this type of business. The results were evident that this was a viable business but there was a need to improve on the delivery of the services to met the demands of the customers who are very busy and prefer a service which is technologically savvy. J&N Green Grocers will be a store with a difference it will be technologically advanced it will have a website and a use social media portals where its customers can shop online for groceries, get health and nutritional information, and find all recipes and meals ideas needed for the different products that we sell. The business will employ a manager who will be responsible for the initiation of the business and managing the other employees, while the 2 business owners shall be partners to in the business. The partners will be responsible for producing the start up capital as well as providing ideas for the growth of the business. The partners will contribute towards the start up capital, therefore there will be no need for obtaining a loan from any financial institution. It is however agreed that should the business expand then there will be need to explore the possibility of getting funds from financial institutions.

CHAPTER ONE BUSINESS DESCRIPTION The nature of our business will be dealing in fresh food supplies such as vegetables, fruits, fresh juices and sea food. Business Name The business name shall be J&N GREEN GROCERY Mission Statement The mission is to serve customers and provide them with the best grocery services. Core Values To achieve maximum customer satisfaction To deliver quality services to customers Practice what we preach: honesty, integrity and ethics

Background of Business Owners The business owners will comprise of a partnership of a couple namely: 1. Jeff Mokaya 2. Nasra Amina The credentials of the owner are mentioned in their bio-data page attached in the annex. A written agreement shall be prepared for the business and it will be clearly stipulated that the partners will not be entitled to a salary or other remuneration for their services, they will however, be entitled to a share of the profits, and they also share the risks incurred by the business even if it is due to a partners mismanagement or dishonesty.

A partnership has been decided as the preferred business because it is easier to set up this type of entity, it only requires a partnership agreement and the process of converting the business into a limited company later on is straight forward.

Business Location The business shall be located along Amboseli Road, off Gitanga Road. The residents of this area are mainly Asians, Europeans and affluent Kenyans. The business shall draw customers from the surrounding residential homes, passerbys and motorists along Gitanga and Amboseli Road. Building on Lease: - The store from which we are going to start our business is not our own but we are starting business by taking it at on lease and paying monthly rent of Kshs.2500.

Postal Services - The business has its own private mailbox at City Square. This way our customers can reach us through: The Manager, J&N GREEN GROCER, P. O. Box 2071 NAIROBI. 00200,

Equipment: - The main equipment which is requires for our vegetables retail and distribution store: Motor cycles Shelves Packaging materials; bags and bottles Fans Computer Refrigerators, freezers and cooler boxes Weighing machines Trays for cut vegetables Office furniture

All these equipment shall be purchased at the commencement of the business.

Legal Form of Business: - The business is a partnership in which all individuals are liable for business liabilities of business. Partners make all decisions and can act immediately and they are also responsible for all profits and losses. Partners will also contribute an equal percentage of the startup capital. Continuity of Business: - The continuity of our partnership will be based on the agreement held between all the partners so that in case of death of any partner; there will be no affect on the business. Amount of Finance Needed The proposed capital required will be Kshs. 500,000 this will be obtained through share contribution from the group members. Each member will contribute Kshs 250,000 to obtain Kshs. 250,000 which is the required start up capital. Products The business will offer the following goods and services: (i) (ii) (iii) Variety of fresh, processed and dried vegetables and juices Variety of fresh / processed fruits and juices Variety of sea foods

Business Status This is a business start up and therefore will require registration of the business and equipping of the business. The name will be searched at the Registrar of companies. The name will then be registered by payment of a fee. A city council license shall also be obtained in order to get a city council license. The business deals with food items therefore a city council health certificate shall be obtained for the premises as well as the workers of the premises. Expected Time of Opening The business is expected to start operating early next year 2014. The business will operate on a six days per week schedule, from Monday to Saturday working hours are: 8.00 a.m. - 6.00 p.m

Industry The business industry is under the Ministry of Agriculture as well as the Ministry of Commerce and Industry, we will be selling products that are obtained from the agricultural sector and generate income and profit as a form of business. Industry Size The business will have a variety of services on offer and will attract many customers. The business will benefit from advertising on signposts, FM radio services, facebook pages, use of salesmen on motorbikes and by word, this will be our strong point against our competitors who have a majority of unskilled staff on the mama mboga kiosks. Many of the competitors do not sell fresh juices and seafood therefore our business will have a larger customer base. Business Goals For the success of the business planning is essential for any enterprise particularly those with growth aspirations. If the small enterprise is to grow beyond the survival stage, then planning and establishment of goals is needed. Viability of the Business The feasibility study and research revealed that this type of business is profitable as long as the entrepreneur has the capital and a trained staff. The business set-up and environment will make it more attractive to customers. The business will purchase its supplies from the mushrooming greenhouses and the Wakulima market which is located 5km from the business location. The business will provide specialized services like free home delivery, cut and packaged vegetables, packed juices and processed/ cooked vegetables to our customers. Entry and Growth Strategy The entrepreneurs have carried out a market research to gauge the viability of the business. This was achieved by use of use of sales person and some of the sales techniques that will be employed include: Introduce a 5% discount for every purchase of over 2000/= Kenya shillings as a compliment. 7

Look out for contracts to supply to churches, hospitals and schools to make more profits. Display of health and non-defective products to draw more attention from customers Providing of special offers to win the majority of customers therefore making a higher profit Providing raffles tickets for sales promotion. Introduce Points Earning Card whereby customer earns 2 points for every Kshs 100 spent.

Management Control Strategy: Distribution of Profits and Losses: - All the partners have equally responsible for loss and the profit gained from the business. The profit will be distributed among all the partners equally.

CHAPTER TWO INDUSTRY ANALYSIS Kenya is an agricultural country therefore it mostly fulfills its demand of fruits and vegetables itself. There are number of markets and providing fruit shops serving customers. The concept of green grocers are existed in the form of mama mboga and Most people buy their vegetable supplies from the mama mbogas daily or from the market weekly in order to fulfill their requirements and keep that stuff for a whole week. The availability of both vegetables and fruits, juices and sea food in a single shop is not common practice, only super stores provide the fruits, vegetables and sea foods collectively. Market Segmentation: Our market is integrated so we have only one segment to serve that is House hold Families Market Situation: As the food is basic necessity of people and people add vegetables to their food for getting the nutritious values and changing their tastes. The people of the area that we are going to serves are also found of vegetables and almost 300 families need vegetables on daily basis.

MARKETING PLAN Potential Customers The customers will be the residents from the area as well as passerby and motorists using this busy road. J&N GREEN GROCER will seek to attract them all and save them the cost of travelling long distances to look for similar to those in bigger business enterprises. Another category of customers to be served by J&N GREEN GROCERS are the surrounding institutions such as hotels, schools and hospitals. With eloquent and expounded advertisement on facebook, radio, daily News Papers, TV and on billboards customers will be drawn from different areas who will come to buy from the business premise. Due to the average earning of the targeted customers the packaging of the commodities will be of various standard quantities in order to give room for even the lower class level to be able to have access to the business room and enjoy the vast services of the staff. MARKET SHARE The J&N GREEN GROCERS is hoping to capture a good number of the current market in order to make it a success. We will Endeavour to provide first class services with food quality. The market that we would like to penetrate is Families. There are thousands of families in this area. They all belong to upper class. They are health conscious and time is important for them as they have their own social and professional circles. They are not sensitive towards prices. Most families have servants who perform the major duties such as cleaning houses, purchasing, cooking etc. Positioning Statement: J&N Green Grocers provide vegetables to consumers who are health conscious and want to save their time Our business Green Grocers covers all future prospects. Currently it will sell vegetables, fruits and sea food. 10

Marketing Mix Variables: Services: - the business will deal in vegetables, fruits and sea food products and providing this service to our customers in following ways: Retailing: - We will have a shop that is located at the middle of the two societies, i.e. the affluent citizens and the middle level citizens. We arrange the vegetables on shelves so that the customer can easily make the buying decision. We give the opportunity to our customers to visit the store and buy whatever they want. Use of salesmen on motorbikes: - At the beginning of the day we will send our two motorbikers in both areas. They will visit the areas only once in a day. They will be there from 9:00 am 3:00 pm. They will be facilitated with bicycles on which there will be vegetables up to 30kg for each hawker they will distribute the vegetables in brown papers packaging Home Delivery: -We are also providing the free home delivery to our customers. As in some families there is a trend of cooking in evening so by ordering us they can easily get vegetables without tension of arranging the food stuff in day time. The other potential reasons may be the shortage of vegetable, sudden arrival of guests or unplanned cooking. Two kilogram (2-Kg) is the minimum order for which we will provide home delivery services. Cut Vegetables: - We are providing opportunity to our customers to get cut vegetables from our store by ordering us. The customers can get benefit of this service who wants to save their time. The cut vegetables will pack in plastic and then in brown packing.

COMPETITION Though the business is not going to have a stiff competition as revealed by the survey there are a few competitors such as the Good Edible Green at Lavington green, Green House and Excellent Corner Greens. As estimated the J&N GREEN GROCERS shall offer a larger variety of products as compared to the competitors.

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The competitors are: a. Good Edible Green b. Green House c. Excellent Corner Green The strengths and weakness of competitors are as follows: Name Good Edible Green Strength Weakness He is good in business No parking space for language i.e. knows how to persuade customers. Has a bigger stock than the two. Good prices. No variety of goods has more Green House of the traditional No transportation on goods sold in bulks and also on supplies. Good customer relationship Lowly paid staff has a smaller products. Much committed at his place of work than monitoring Excellent Greens Corner Attractively puller. It owns a van for the delivery and supply of bulky products. 12 designed of the business progress Frequent water shortage. High prices Low morale of service by the employees. stock of mama mboga supplies There is a parking space for cars. customers in cars. No transport facility for bulks sales and supply. Financial instability.

premises are a good crowd

J&N GREEN GROCERS will employ a qualified staff of not less than two years experience in the similar field. With total commitment to work with minimum supervision. The higher stock is a greater incentive to winning many customers and better prices than his competitors. J&N GREEN GROCERS SWOTS (Strengths, Weaknesses, Opportunities, Threats and Solutions) The table below shows the approach behind the success of the business as compared to its competitors. Strengths of Green Grocer: Location & Accessibility to Customers: Our store is located at the junction of the two busy roads Therefore the people of both areas can easily be served. The surrounding of the stores is good; there is no traffic and parking problems for us as well as for our customers. We have the advantage upon our competitors in terms of location, service delivery time and access. Home Delivery: We will be providing free home delivery to our customers as no our competitor is providing this service. Serving/Delivery Time: Due to our location we can fulfill the order of our customers within 15 minutes. While special services of cut vegetables can be fulfilled within 30-35 minutes. Cut Vegetables: We will give our customers the unique service of providing them cut vegetables on order so that their time to prepare food is reduced Technology: The successful implementation of technology in the store will be a real strength for the company. Size of store: The business will enjoy the benefits of a smaller store 13

format with a more singular focus than does a supermarket and therefore, is able to focus on not only convenience but service as well. Weaknesses of Green Grocer Resources : much of the initial resources will be building its store from the scratch Inventory Management: The management of vegetables is our major problem that how to manage the extra Inventory because extra inventory will sale at another shop in poor area near to the Aden Avenue at very low profit. Long Distance: There is problem of long distance from some of the markets supplier cost is higher. Market : the number of green groceries are also increasing

Opportunities of Green Grocer

Introducing meats: We can expand our business by introducing fruits and meat so that our customers can get the food items what they want. (one stop shop) Online Services: In order to cover more market online services can be helpful for us. Health factors : there is a growing campaign of healthy eating habits in the country from which the store will benefit

Threats of Green Grocer

Most important is that to create the customers trust because the cut vegetables and simply on order delivery services are introducing first time in that area by J&N Green Grocer. So there is most important point is to keep in mind the human health. It is a threat, may people do not believe on our safety steps, so we are very much conscious about our customers 14

health and care it by providing washed vegetables, and keep the employee appearance suitable by providing him proper uniform. The natural disasters e.g. flood, lack of rain etc are another threat for us. May be due to these disasters the prices of vegetables rise and profit margin may decrease. Another threat is from competitors because there is direct competition from other competitors, and the one hawker who is already serving this area. But J& N Green Grocers is providing the unique services i.e. washed and cut vegetables, on Solutions order delivery. J&N Green Grocers will try to use quality materials during set up so that there will be no much frequent need for repairs, we will also invest in good quality refrigeration equipment to avoid the vegetables and fruits going bad. J& N Green Grocers will also procure a van which will be used to transport the supplies from the market. To bit our competitors we will: a. Offer a better, friendlier service b. Show customers that they really are valued c. Be different wrap our goods securely and always offer help d. When customers make a return visit we will ask them if they were happy with the services and goods we offered last time e. Tell customers about new products that are available f. Call the customers to find out if there is anything we can do for them g. Take time to know our customers well h. Endeavour to sell quality goods i. Run promotions to benefit our customers

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SALES TACTICS The Sale tactics to be put in place for the business will include the following: (i) (ii) (iii) (iv) (v) A discount of 5% for any purchase of over 2000/= Kenya shillings Purchases are carried to the owners car Customer contacts will be taken and follow up calls will be made to the customer Providing raffles tickets for sales promotion. Introduce Points Earning Card whereby customer earns 2 points for every Kshs.100 spent PRICING STRATEGY The J&N Green Grocers will take into consideration the following points when giving price worthiness of the goods: (i) (ii) (iii) (iv) (v) The cost of acquiring this fruits and vegetables from the farmers and other suppliers. This helps to finally give value of prices to the customers. The competitors price: compare the pricing of your competitors will be much more interested to buy from her. The aim of making much more profit for the business to achieve its goals. It has to make as much as possible profit to boost the morale of the business. The cost of labor: the cost to pay salaries to the staff members also contributes for its from the business they are going to be paid. The season of the year meaning that when there is plenty supply with goods bought from farmers and suppliers at a lower price the effect so relayed to the pricing of the goods in the grocery meaning reducing the prices. When goods are scarce in the market prices are affected hence the rise of prices of goods.

PROMOTION AND ADVERTISEMENT 16

For the enterprise to flourish and with possible expansion in the future, attracting customers and retaining them will be of paramount importance. The following ways are used: Current Strategy: - We are currently using the print media, facebook for the purpose of promotion. We are using brochures and pamphlets for advertising. As it will cost effective for us as compare to any other media. We have also contacted the other shop keepers to give our brochures to their customer when they come to purchase. Future Strategy: - In future we will use TV and radio media, road side banners and bill board. In order to cover more markets. As the number of new housing schemes are build there. ADVERTISING This is done by: (i) (ii) (iii) (iv) Use of posters that will be placed along sign posts to give direction to the business location. Advertising on mass media e.g. radio and TV sets, and even on magazines and daily News Papers once a month. Use of social media (Facebook & Twitter) Sometimes organizing for a space in a busy traffic way where the majority pedestrians pass and exhibit her products. Personal Selling - This means that customers are not going to come and go round alone in the business premises picking products and paying, There will be attendants who will be accompany the customer and assist them as they select their produce. Promotion This is done in the following ways: (i) (ii) (iii) (iv) Packaging of fruits in transparent polythene bags and other products in the grocer will have a significant influence to the customers eye speculation. Giving a free sample on special offers and gifts to potential customers free gifts shall be given for purchases made for bulk purchases The displaying of the products on shelves will be arranged in such a way that the customers will find it easy to locate and move peacefully inside the shop i.e. it will be attractive and appealing. 17

Publicity - This is the action of doing something that will make the business be in the news. The J&N Green Grocers will do this by: (i) (ii) (iii) (iv) Being helpful to customers who may need some advice on particular products on sale. The business will offer advice on substitutes of sales on shelves. Ensuring that customers are attended fully with honest dealings, polite and with a high level of discipline put in place. Donating money to charitable organizations, and self help groups The customers are not restricted to come and view the products even through they are not buying. They might be attracted and made to buy. DISTRIBUTION STRATEGY The (i) (ii) (iii) J&N Green Grocers is to use a direct distribution channel as it will be dealing with its The cost will reduced because the money comes directly to the enterprise as there are no middle men. The products get fast to the customers. The other sales will be provided to restaurants, churches without any brokers or agents. customers directly. The reason for this choice of distribution is based on:

This way the proprietor is able to gauge how well the business is doing by the customers reaction when he/she buys, by asking their opinion on what they are buying, what they are satisfied with and what they think of the business generally. Parking and Security - This is also among the priorities of the management to ensure that the customers are safe and their cars at the parking are taken care of. This is done by employing a watchman and also somebody to clean the front screen of the cars and also the business will be fortified and electrical fence provided.

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CHAPER THREE MANAGEMENT AND ORGANIZATION PLAN Organization Structure This comprises of different posts, with the highest post being the Business Manager and the lowest being the watchman. 1. Business Manager The proprietors of J&N GREEN GROCERS will employ a business manager. Qualifications The Business Manager must have the following qualifications: 1. Must be a Kenyan citizen. 2. Must be aged between 24 35 years old. 3. Diploma in Business Management 4. Knowledge of Driving Responsibilities 1. Recruiting support staff. 2. Purchasing of items needed for the business 3. Overall supervision and monitoring operations 4. Receiving money from sales made and approving discounts where necessary. 5. Allocating duties and responsibilities 6. Provide a good working environment and give incentives for increased morale 2. Assistant Supervisor This is an assistant to the manager taking on the duties of a manager when she is not around in the business vicinity. Qualifications 1. Be an average age of 20-30 years. 2. Be a holder of a latest certificate in Business Administration 3. Have at least 2 years of working experience 19

4. Should be hardworking, honest and ready to work under stressful environment. 5. Should be a Kenyan citizen. Responsibilities 1. Should be checking on stocks on shelves to be able to buy stock and ensure enough stock throughout the working hours. 2. Help the manager in overseeing the smooth working of employees and incase of anything report to the manager. 3. To make sales but hand the money to the manager. 3. Cashier The business firm has one employee who has the following qualifications: 1. A certificate in KCSE with mathematic mean grade C. 2. Should have worked in a busy business firm for at least 2 years. 3. Should be hard working, honest and have a good memory to be able to grasp the prices of the commodities on shelves. 4. Must be between the ages of 18years to 27 years. Responsibilities 1. Receive the money at the counter and give correct change. 2. Give correct figures to the customers incase they dont know the actual price. 3. To attend customers at the counter and give necessary information incase of need. 4. Counting the money and balancing the figures correctly before handing to the assistant manager. 5. Seeing that all customers pay the counter. 4. Attendant / Motor Bike There is one employee helping to assist customers go round the merchandise and help to carry the goods sold to the counter and to the owners car. They have the following qualifications: 1. Should be a form four leaver fluent in English and Swahili. 2. Should be above 18 years. 20

3. Having worked in the similar enterprises would be an added advantage. 4. knowledge of motorcycle Responsibilities 1. Make sure that grocer is very clean and tidy. 2. Make sure that all vegetables and fruits are arranged in an orderly manner, attractive to customers. 3. Attend customers in a respective and patient way to him/her. 4. To carry any heavy or bulky sales to the counter and finally to the means of transport. 5. Help to load and unload the goods to be sold in the grocery. 6. Should be a hard working, honest and good socialization and interaction with customers. Watchman The firm will be operating with two watchmen having the following qualifications: 1. Scored at least an average of D- KCSE. 2. Should have trained as a security guard and at least 4 years of working experience. 3. Should be strong, commanding, honest and trustworthy. 4. Having handled dog section will be an added opportunity

ORGANIZATION CHART 21

The following is an organization chart for J&N Green Grocers flowing from the top highest rank to the least rank.

MANAGER

ASSISTANT MANAGER

CASHIER WATCHMAN

ATTENDANT

RECRUITMENT TRAINING AND PROMOTION 22

After all the employees have qualified for the jobs they are inducted on the business requirements and operations and the manager allocates them duties.

Recruitment : Advertisement for the positions will be done by word, and all the interested candidates shall go through an interview session. Training : The watchman is trained on how to usher in customers during the day. They are advised to be in their uniform throughout the working hours. They are also trained on how to guide customers to the business firm. The cashier and the assistant manager plus the three customer care employees are taught on various names of the sales vegetables and fruits, their prices and how to make the place attractive and appealing to customers. They are also trained on how to make business a success. The training is to be presided by the GREEN VEGETARIAN FIRM. Lasts for one day starting at 8.00 a.m. to 5.00 p.m. Promotion : Promotion given on the hardworking, honest, punctual in reporting hours of work and experience gained through everyday performance. Promotion done by the manager of the business. If an employee is working as a customer care he/she will be promoted to buy stock from the farmers and other suppliers. The cashier the watchman and assistant supervisor are to get promotion on their salary scale increment. Remuneration, Incentives and Salaries For greater output employees have to be given morale to work efficiently with good and conducive working environment. This is done through the following remuneration and incentives: 1. Twenty five working day leave for every employee per year at different and well spaced months. 2. 5% commission of their salaries to be given after two weeks of every month. This calculated on the salary of each individual. 3. Christmas and other holidays of an employee hours of work receives 5% of ones salary. 4. Praising employees work and adding more value on direct communication between employee and employer. 23

Salaries : After three months of work all employees will work on a permanent basis and the business will support them by processing the statutory requirements such as NHIF and NSSF contributions. The business will also pay the obligatory tax requirements. Position Assistant Supervisor Cashier Distribution / sales Watchman TOTAL Number Employees 1 1 2 1 5 of Monthly salary per Employee in Kshs. 20,000 10,000 18,000 6,000 54,000

LICENSES, PERMITS AND BY-LAWS

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Every business is required to obtain a license, this is a legal requirement from the city council. The license gives the business a permit to operate and this is issued according or depending on the kind of business. R& B GREEN GROCERS, will obtain a permit which is in the class of permits that ranges for Kshs. 5,500. By-Laws : The By-Laws that governs the enterprise are the foods and poison act which require: (i) (ii) (iii) (iv) (v) To sell fresh vegetables and fruits Comply with health requirements of proper dumping To sale products measured on weight quantities to comply with the standard measurements and weight. No illegal products should be sold. The employees will also be required to obtain a certification from the City council to confirm that they are not suffering from Tuberculosis. The others are that will be enacted deal with labor laws for reinforcement of employer and employees relationship and respect human rights. Legal services - A lawyer is needed to represent the R& B Green Grocer to provide advices and to mitigate any misunderstandings or court battles with different stakeholders. The lawyer will handle all legal aspects of the business and will be paid for every assignment that his/her services will be used. Bankers COOPERATIVE BANK The business will obtain a bank account from Equity Bank. Banking of the funds will be done daily.

CHAPTER FOUR 25

PRODUCTION/OPERATIONAL PLAN Equipments and Tools - The equipments and tools that a firm uses are of great importance as they determine how well the work in the firm is carried out. The equipments that the R& B Green Grocers will purchase for use are little long term cost is reliable of adequate capacity and to be handled with maximum care and maintenance. They are as follows: Equipments for the First Year TYPE EQUIPMENT Refrigerator Freezer Weighing machine Calculator Trolleys Baskets Water tank Watering can Wheel barrow Air fans Knives TOTAL OF CAPACITY Medium Medium Each Each Each Each 2000 liters 10 liters 100 kg Each Each QTY 1 1 1 1 3 10 1 3 2 3 5 31 COST IN KSHS. 50,000 40,000 15,000 2,000 3,000 500 3,000 600 1,200 2,400 150 119,050

Premises The J&N Green Grocers operates a long Amboseli road off Gitanga Road near Valley Arcade. It is situated near the junction of Gitanga and Amboseli where very few shops of similar kind are set. The permit to let the business start is acquired from the city council.

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The shop or grocery is packed well with vegetables and fruits and other kinds of sales in an organized and attractive way. In rows to let way for the customers go round. A space of 10 x 10 ft is left in the shop where the counter cashier is seated. Opposite the grocery is build an office for the assistant manager who monitors for the sales and customer needs incase of help or advice. Also at the opposite side is a small shade for customers who take soft drink. All the things in the grocery are closed inside as the watchman takes guard at night. Labour J& N GREEN GROCERS will employ skilled labor for they underwent training before starting on the business grocery. The owner is the manager under her is the assistant manager then the cashier, the 3 attendants and the watchman. Hired laborers are also required who come to weed the flowers and clear the fence and cut grass. A lawyer is also needed incase of legal matters to be carried out. Capital The initial money to put the business on its feet is from reliable source this will be a contribution by all the business owners. It has been agreed that each owner will contribute an equal share of Kshs.250,000 to the business to meet the Kshs.500,000 commence. that is required for the business to

PRODUCTION COST This is the entire cost incurred in establishing the J&N GREEN GROCERS before any profit has been made. All the money at start up which has been pumped into the business. Type of Cost Amount in Kshs. 27

This is a 6 months costing Salaries Water Advertising License Hired labor Telephone Electricity Rent TOTAL Cost of operation for the first year in Kshs. Equipment cost + Material cost + Overhead cost. 119,050 + (68,600 x 2) + (315,200 x 2) 119,050 + 137,200 + 630,400 = 886,650 Production Strategy

279,000 7,500 8,000 5,000 3,000 5,500 7,200 315,200

This involves the areas that management has laid strategies on ways of improving the designs of the products considering aspects like consumer tastes and preferences based on the sales made.

Products Designs The product design constitutes packaging of the fruits and vegetables on various quantities based on market demand. The type of products to be incorporated by the J& N GREEN GROCERS includes: 28

(i) (ii)

Offer varieties of vegetables -e.g. spinach, cabbages, sukuma wiki, asparagus etc. The vegetables and fruits purchased from the markets and farms will be of the highest quality and very fresh and free from any defects. These will attract customers and retains them.

(iii)

The management will ensure that there is enough stock for mostly demanded products, this keeps steady flow of customers and in the process gives them an opportunity to Window shop

(iv)

Motivation of employees, the management is trying to make their working hours convenient while at the same time using this hours scheduling to the enterprise advantages. They are expected to report in at 8.30 a.m. and leave at 6.00 p.m. so as a customer from work can still find the grocery open and buy something if there is need.

(v)

It is the intent of the J&N Green Grocer is to increase production by making greater sales in the market.

Waste products include polythene bags, vegetable leaves, spoilt fruits and stalks of some vegetables and onions will be collected and packed in composite pit and sold to farmers will use them for processing organic fertilizer or for pig feeds.

OPERATIONAL PLAN SCHEDULE LAYOUT STEP 1 2 DUTIES Manager and assistant Manager reporting hours 8.00 a.m. Manager hears from is assistant manager about the 8.00 - 8.30 a.m. watchman. He also gets a list of things to be purchased for 29

the day to add stock. The assistant manager ensures all employees have reported 8.30 9.00 a.m. to work and prepares them for work. The Grocery is opened as the cashier receives some money 9.00 9.15 a.m.

4 5 6 7 8 9

from the manager to cater for changes Break tea is served while working 10.00 10.30 a.m. Lunch break for a short while the grocery is under the 12.30 1.00 p.m. manager and his assistant. Evening tea served 4.00 4.30 p.m. The manager and his assistant takes stock of the grocery 5.00 5.30 p.m. Assistant manager receives money for the days sale from 530 6.00 p.m. the cashier and hands over to the manager The grocery closed 6.00 p.m.

The work flow is as follows: Purchasing/supervision/selling Receive money Records money Received Takes Stock Close the Business REGULATIONS Environmental - The firm is to provide a dust bin to put all the waste polythene papers, vegetable leaves, spoiled fruits and any other waste material These are sorted out to be sold to the farmers who take them as manure and for mulching and the polythene papers are given to waste collectors. This way there would be no biodegradable item is released to the environment.

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Health - As required by the ministry of health under the local Authority the business is to be set under hygienic environment. The products to be sold must adhere to the Food and Beverage Act free from poison. The workers health conditions are checked after every three months to ensure no contamination of vegetables and fruits during handling. Safety 1. Nobody is allowed to run or move fast while in the shop 2. Serve one customer at a time to avoid confusion. 3. In case of any problem the manager should be contacted immediately Other Regulations The other regulations observed are: 1. Punctuality 2. Loyalty and adherence to rules. 3. Ensure no council rules are broken in any way. All business transactions are within the enterprise except the manager and the assistant who contact supplies, distributors, market agents and legal provision.

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CHAPTER FIVE FINANCIAL PLAN This section deals with allocation of funds to various activities within the enterprise, machines, and persons aimed at achieving the pre-set goals of the business. Plan for the management of the enterprise. Shows the potential of the enterprise and its progress Assess the performance of the business Uses as standard against which the performance is measured Represent the entrepreneurs best estimate of future operations is quantitative terms.

Pre-Operational Cost These are costs incurred by the owners of the business before starting to operate the business such as; Opening stock, salaries, materials and equipments, license, advertisement. ITEM Opening stock Salaries Materials Equipments Licenses Advertisements TOTAL and COST (Kshs.) 135,000 54,000 5,000 3,000 Kshs 135,000 54,000 119,050 5,000 3,000 316,050

PROJECTED CASH FLOW STATEMENT The profit and loss account shows how the business is operating whether at a profit or at a loss.

Suggests ways of improving projected profitability.

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PROJECTED CASH FLOW FOR 2013 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC A. TOT B/F Sales Debts Total Expenses Purchases Wages & Salaries Licenses Advertisem ent Water 80,00 0 80,00 0 10,00 0 15,00 0 5,000 1,000 500 44,30 0 81,00 0 125,3 00 12,00 0 15,00 0 550 93,50 0 82,00 0 175,5 00 15,00 0 15,00 0 1,000 500 139,80 0 80,000 219,80 0 15,000 15,000 600 185,10 0 75,000 260,10 0 13,000 15,000 500 226,45 0 76,000 302,45 0 13,000 15,000 450 267,90 0 77,000 344,90 0 15,000 15,000 550 308,30 0 75,000 383,30 0 14,000 15,000 -600 347,35 0 75,000 422,35 0 15,000 15,000 500 385,55 0 72,000 3,000 460,55 0 12,000 15,000 500 426,65 0 74,000 5,000 505,65 0 14,000 15,000 1,000 450 469,1 2,893,000 00 75,00 0 10,00 922,000 18,000

0 553,1 3,833,000 00 15,00 0 15,00 0 600 163,000 180,000 5,000 3,000 6,300

Electricity Telephone Transport Loan Installment s Repair & Maintenanc e Miscellane ous Total Net Profit

900 800 1,000 -

850 900 1,000 -

950 750 1,000 -

900 700 1,000 -

800 850 1,000 -

800 800 1,000 2,000

850 700 1,000 2,000

900 950 1,000 2,000

900 900 1,000 2,000

950 950 1,000 2,000

800 800 1,000 2,000

900 900 1,000 2,000

10,500 10,000 12,000 14,000

1,000

1,000

2,000

1,500 35,70 0 44,30 0

1,500 31,80 0 93,50 0

1,500 35,70 0 139,8 00

1,500 34,700 185,10 0

1,500 33,650 226,45 0

1,500 34,550 267,90 0

1,500 36,600 308,30 0

1,500 35,950 347,35 0

1,500 36,800 385,55 0

1,500 33,900 426,65 0

1,500 37,550 468,10 0

1,500 36,90

18,000 423,800

0 516,2 3,409,200 00

PROJECTED CASH FLOW FOR 2014 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC B. TOT B/F 781,00 0 781,90 0 791,70 0 801,40 0 813,20 0 827,6 50 837,20 0 34 856,90 0 875,30 0 889,00 0 906,80 926,55 0 0 10,088,60 0

Sales Debts Total Expenses Purchases

50,000 831,00 0 11,000

51,000 832,90 0 12,000 21,000 800 1,000 900 1,500 2,000

52,000 843,70 0 10,000 21,000 1,000 900 1,100 800 1,500 2,000

51,000 3,000 855,40 0 13,000 21,000 900 1,000 800 1,500 2,000

52,000 5,000 870,20 0 12,000 21,000 1,000 900 1,200 950 1,500 2,000

53,00 0 880,6 50 12,00 0 21,00 0 950 1,100 900 1,500 2,000

55,000 6,000 898,20 0 11,000 21,000 1,000 900 1,000 900 1,500 2,000

55,000 3,000 914,90 0 10,000 21,000 950 1,200 950 1,500 2,000

56,000 931,30 0 12,000 21,000 1,000 850 1,000 950 1,500 2,000

60,000 949,00 0 13,000 21,000 800 1,100 800 1,500 2,000

62,000 68,000 5,000 973,80 994,55 0 0

665,000 22,000 10,775,60 0 144,000 252,000 9,000 6,000 10,500 12,800 10,750 18,000 24,000

13,000 15,000 21,000 21,000 1,000 850 900 1,000 1,500 2,000 1,000 900 1,200 1,000 1,500 2,000

Wages & 21,000 Salaries Licenses Advertise ment Water Electricity Telephone Transport Loan Installmen ts Repair & Maintenan ce Miscellan eous Total Net Profit 2,000 49,100 781,90 9,000 800 1,000 800 1,500 2,000

2,000

2,000

4,000

8,000

2,000 41,200 791,70

2,000 42,300 801,40

2,000 42,200 813,20

2,000 42,550 827,65

2,000 43,45 0 837,2

2,000 41,300 856,90 35

2,000 39,600 875,30

2,000 42,300 889,00

2,000 42,200 906,80

2,000

2,000

24,000 519,050 10,256,55

47,250 45,600 926,55 948,95

00

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PROJECTED INCOME STATEMENT FOR YEAR ENDING 2013, 2014, 2015 ITEM Cash sales Credit sales Sub-total (I) Opening Stock Purchases Less closing stock Cost of goods sold Sub-total (II) TOTAL (I-II) (Gross Profit) Expenses Wages and salaries Advertisement Water Electricity Telephone Transport Repair and maintenances Loan re-payment Licenses Miscellaneous Sub-total Less depreciation at 5% on material and equipment. TOTAL Profit before tax Tax at 10% Net profit after tax 254,897.50 552,102.50 55,210.25 496,892.25 266,247.50 269,752.50 26,975.25 242,777.25 379,597.50 166,402.50 16,640.25 149,764.25 180,000 3,000 6,300 10,500 10,000 12,000 2,000 41,000 5,000 18,000 260,800 5,952.50 180,000 3,000 6,252 10,250 11,700 12,000 2,000 24,000 5,000 18,000 272,200 5,952.50 252,000 6,000 10,500 12,800 10,750 18,000 8,000 24,000 9,000 24,000 385,550 5,952.50 YEAR 1 922,000 18,000 940,000 163,000 15,000 148,000 133,000 807,000 YEAR 2 636,000 33,000 669,000 15,000 132,000 17,000 130,000 133,000 536,000 YEAR 3 665,000 22,000 687,000 17,000 144,000 10,000 151,000 141,000 546,000

PROFORMA BALANCE SHEET ITEM ASSETS ENDING 31/12/12 ENDING 31/12/13 ENDING 31/12/14

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CURRENT ASSETS Cash Debtors Purchases Closing stock Total current assets FIXED ASSETS Materials and equipments Less acc. Depreciation Total fixed assets TOTAL ASSETS LIABILITIES Current Liabilities Creditors Taxes Accruals Total Current Liabilities LONG TERM LIABILITIES Youths Community Loan Owners Equity Family contribution Total Total Liabilities 250,000 50,000 200,000 500,000 837,202.50 290,000 100,000 250,000 640,000 1,088,002.50 360,000 180,000 390,000 930,000 1,249,952.50 261,202.50 10,000 66,000 337,202.50 365,002.50 10,000 73,000 448,002.50 217,952.50 10,000 92,000 319,952.50 119,050 5952.50 125,002.50 837,202.50 119,050 5,952.50 125,002.50 1,088,002.50 119,050 5,952.50 125,002.50 1,249,952.50 516,200 18,000 163,000 15,000 712,200 781,000 33,000 132,000 17,000 963.000 948,950 22,000 144,000 10,000 1,124,950

FIXED COSTS

YEAR 1 KSHS 39

YEAR 2 KSHS

YEAR 3 KSHS

Salaries Loan re-payment Licenses Transport Miscellaneous TOTAL VARIABLE COSTS Purchases Advertisements Water Electricity Telephone Repair and maintenance TOTAL

180,000 14,000 5,000 12,000 18,000 229,000

180,000 24,000 5,000 12,000 18,000 239,000

252,000 24,000 9,000 18,000 24,000 327,000

163,000 3,000 6,300 10,000 2,000

132,000 3,000 6,250 10,250 11,700 2,000

144,000 6,000 10,500 12,800 10,750 8,000 192,050

184,300

165,200

WORKING CAPITAL

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This is the same as operating capital which measures the flow of cash and the ability of the firm to maintain its cash or liquid assets to compute the working capital.

YEAR 1 CURRENT ASSETS Cash Debtors Purchases Closing stock Total current Assets 516,000 18,000 163,000 15,000 7,122,000

YEAR 2

YEAR 3

781,000 33,000 163,000 17,000 963,000

948,950 22,000 144,000 10,000 11,249,500

CURRENT LIABILITIES Creditors Accruals Taxes Total current Liability Working Capital

261,202.50 66,000 10,000

365,002.50 73,000 10,000

217,952.50 92,000 10,000

337,202.50 374,997.50

448,002.50 514,997.50

319,952.50 10,929,548

DESIRED FINANCING FOR THE FIRST 3 MONTHS Purchase 41 Kshs. 37,000

2. 3 4 5 6 7 8 9

Wages and salaries Licenses Telephone Electricity Water Transport Miscellaneous Tools and equipment Total cash

54,000 15,000 5,500 5,500 4,800 4,000 5,200 119,050 270,050

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ANNEX 1 BIOGRAPHIES OF THE COMPANY OWNERS Jeff Mokaya has over fifteen years professional experience in related aspects of management covering various hotel industries. He has gained global exposure in this sector having been engaged on many duties and assignments related to the provision of food distribution and management services to clients in Boston Massachusetts USA .He is a creative Chef de Cuisine as well He has been in charge of introducing new, creative and contemporary delicacies in addition to the main dishes offered. In his previous engagements is responsible for creating and implementing seasonal He has been a team leader on various market research and market segmentation assignments. Ben has good communication and interpersonal skills. He is fluent in English, Kiswahili, Arabic and French German and is conversant with international standards in hotel management. He holds a rich experience in hospitality field. Ben has a bachelor of commerce (Accounting and Marketing option) , A Bachelors degree in Mathematics and Currently pursuing a Masters degree psychology at the Boston University USA Ben has gained vast experience by playing key roles in the duties and assignments that he has undertaken in various location in and out of Kenya. He also developed the financial and administrative procedures manuals for big players in the Hotel Industry in America. Nasra Ajmina kicked off her career as a Sales Executive in 2012 at KFC , She is a Business Administration graduate from Presbyterian University of E. Africa. She has a wealth of knowledge in consumer goods and customer care.

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