CHAPTER ONE

1.0 BUSINESS DESCRIPTION

After my K.C.S.E. IN 2021 l got a job at a milk parlour as an attendant .I worked there
for six months and l acquired experience how to run a business. I was motivated to
start an own milk parlour. The business is intended to start running from January
2024.The business will operate under sole proprietorship. The business will be
registered by the registrar of companies and it will be issued a certificate and
license.
1.1 BUSINESS NAME
The name of the business will be KAMAU’S MILK PARLOUR. The name is easy to
pronounce and unique. The slogan of the business will be ‘DRINK WELL LIVE LONGER’.
The business deals with sales of fresh milk and its products like: cream, yoghurt, ice
cream, milkshake and fermented milk. The business will offer affordable prices to cater
for all customers.

1.2 BUSINESS LOCATION AND ADDRESS

The business will be located in Nakuru on Solai Road. The place is very accessible due to
tarmac road it will opposite REMIZ GUEST HOUSE NAKURU white lane and the NYERI –
NYAHURURU ROAD.
KAMAU’S MILK PARLOUR
P.O.BOX 132-20100
NAKURU
CELL: 0711711082
EMAIL:kamau’[email protected]

1.3 FORM OF OWNERSHIP

The form of ownership is sole proprietorship. A sole proprietorship is a business owned
by one person .The owner of the business runs business alone. The management is easy
and flexible and low cost formation. The source of capital will be personal savings and
loans.
1.4 TYPE OF BUSINESS
The business is retail originally majoring on fresh milk and its products. It will offer take
away and dine in .It will operate on 24 hours due to the good security surrounding the
area .It will be located in a densely populated hence creating a wide market for the
business.

1.5 PRODUCTS AND SERVICES

The business deals with quality, quantity and variety of products in order to meet the
customer’s desire and taste. The customers who desire to use mobile banking they will
be a till number and it will be broadcasted at the walls .We will offer delivery services.

1.6 JUSTIFICATION OF OPPORTUNITY

Since the demand is high and the supply is low in the area of location. The business is
promised to succeed .It an everyday diary whitener and it is a high assurance of high
demand for milk. Travellers and guest will get an opportunity to shop at a discount
.
1.7 INDUSTRY
The business falls under manufacturing sector. The business will make sure to reach high
level of cleanliness set by NEMA when handling the products .modern technology will be
use because it easy and simple to maintain .the business will employ qualified in order
to achieve the objective set since they will be assisting the proprietor in operating and
managing the business
.
1.8 BUSINESS GOALS AND OBJECTIVES
 SHORT TERM GOALS
To create employment opportunities.
To provide high quality products and services.
 LONG TERM GOALS
To open and operate new branches countrywide

1.8.1 ENTRY AND GROWTH STRATEGIES

ENTRY STRATEGIES
The business will start at relatively high prices due to high trending prices of
the milk. It will operate 24 hours plan to cater for all time travelling and this
will attract more customers.

GROWTH STRATEGIES

The business will acquire more contracts in order to expand the business
with the sales. This will help in opening new branches .We will increase
more qualified personnel and improved technology this will add more
advantage in promoting the growth of the business and improving the
quality of service that will be offered.
 CHAPTER TWO
2.0 MARKETING PLAN
CHAPTER FOUR

4.0 OPERATION /PRODUCTION PLAN

The business products will be handled by one industry .One major farm will handle the fruits. Also
the milk will be bought from one farm in wholesale. The machines used in the business will be
serviced by one servicing company in order to maintain them in good condition. The business will
offer door step and also delivery services.

4.1 PRODUCTION FACILITIES AND CAPACITIES

The business will make use of modern electrical machines in order to facilitate fast production of the
milk products and make the work easy and more efficient.

ITEMS DESCRIPTION SUPPLIES COST PER QUANTITY TOTAL REMARKS

UNIT
REFRIGERATOR
PLASTIC CUPS
BLENDER
MILKSHAKER
STICKERS
SCOOPING
SPOON
SUFURIAS
FREEZERS
PLASTIC
BOTTLES
 TOTAL

4.2 PRODUCTION PROCESS /STRATEGY

1. PRODUCTION PROCESS

The business will buy milk at a farm in wholesale in order to facilitate efficiency in milk
production .the milk will be blended differently or mixed hence enhancing its taste and flavour .Also
mixing with different fruits in order to meet different customers desires . The drink will be served
either cold or at moderate room temperature per as customers desire.

2. QUALITY CONTROL
The business will be well maintained, high level of cleanliness because it deals with milk
product’s .For the workers they will be clean and neat in order to prevent customers taking
contaminated drinks. The milk will be refrigerated, covered and kept in clean containers for
display and also the milk products.
3. LABOUR CONTROL
The business will be supervised by a manager .the business will have the following staffs
under the manager: sales man, cleaners, cashier and a casual Worker.

PERSONNEL

4. TIME CONTROL /WORKING SCHEDULES

The business operate under shifts like daytime shifts and night shifts .The business will run
on normal days from Monday –Saturdays. The employees will rest on Sundays.

MONDAY -SATURDAY DAYTIME SHIFT NIGHT TIME SHIFT

TIME 6:00AM -7:00PM 7:00PM-6:00AM

5. PRODUCTION COST

6. PURCHASE POLICY
The business manager will be responsible for the suppliers and buyers. The purchase will be
done on weekly base. The purchase will be recorded for future references.

7. INVENTORY CONTROL
The stock will be taken on a daily basis to avoid running out of stock. The manager and the
sales person will ensure there is enough stock for proper running of the business.
 4.3 PRODUCTION PROCESS

The business will buy milk at a farm in wholesale in order to facilitate efficiency in milk
production .the milk will be blended differently or mixed hence enhancing its taste and flavour .Also
mixing with different fruits in order to meet different customers desires . The drink will be served
either cold or at moderate room temperature per as customers desire.

4.4 PLANT LAYOUT

4.5 REGULATIONS AFFECTING OPERATION PRODUCTION

The employer and employees will ensure that the premises and the equipment are safe to
avoid accident .The business will be able to asses any hazards or risks and come up with
procedures to follow in case of an accidents. The business will be insured against fire, theft
and personal accidents. And also high level of cleanliness will be observed when handling
the products.
 CHAPTER FIVE
5.1 FINANCIAL PLAN
By having a financial plan the business will be able to know the financial aspect
proposed. And also help in gauging the future financial plan and calculate expected
profit and loss.
5.2 BOOKS OF ACCOUNTS
 CASH BOOK
 LEDGER
 PURCHASE LEDGER
 SALES LEDGER

5.3 PRE-OPERATIONAL COST

SUMMARY OF PRE -0PERATIONAL COST

ITEMS AMOUNT
BUILDING RENOVATION 5000
RENT 10000
INSTALLATION OF MACHINES 15000
CONSTRUCTION OF COUNTERS AND 25000
SHELVES
ELECTRICTY DEPOSIT 2000
BANK DEPOSIT 1500
LICENSE AND PERMIT 2500
LOAN AND PROCESSING FEE 1500
TOTAL 62500

5.4 ESTIMATION OF FIXED ASSETS

Assets are things that are purchased for long-term use and not likely to be converted
quickly into cash such as furniture’s vehicles and machinery and equipment.
SUMMARY OF FIXED ASSETS

ITEM AMOUNT
MACHINERY 150000
COMPUTERS 60000
UTENSILS 40000
OFFICE FUNITURES 20000
TABLES 20000
CHAIRS 20000
TOTAL 310000

5.5 ESTIMATION OF WORKING CAPITAL

WORKING CAPITAL is the finance used for day today running of the business which
includes: stocks, purchases and any other regular expenses
 SUMMARY OF WORKING CAPITAL

ITEM AMOUNT[KSH]
OPENING STOCK 50000
RENT 10000
SALARIES 40000
CASH AT HAND 50000
INVENTORY MATERIAL 45000
WATER,ELECTRICITYAND TELEPHONE 5000
EXPENSES
TRANSPORT EXPENSES 3000
TOTAL 203,000

5.6 CASH FLOW PROJECTIONS

Cash flow is the estimation of cash money that the business will generate per month
throughout the year .the net cash flow is obtained by subtracting the cash out flows
from cash inflows.
SUMMARY OF PROJECTED CASH FLOW STATEMENT

MONTHS

1 2 3 4 5 6 7 8 9 10 11 12

CASH
INFLOWS
COLLECTI
ON OF
DEBTORS
OTHER
SPECIFY
TOTAL
CASH IN
FLOW
CASH 200 300 350 450 480 500 550 700 600 600 800 100
OUT 00 00 00 00 00 00 00 00 00 00 00 000
FLOW
CASH 100 100 500 150 200 250 250 290 190 190 200 250
PURCHAS 0 00 0 00 00 00 00 00 0 00 00 00
ES
CREDITOR 500 250 600 100 300 500 800 150 250 500 100 600
S 0 0 0 00 0 0 0 0 0 0 0
PAYMENT
S
RENT 100 100 100 100 100 100 100 100 100 100 100 100
00 00 00 00 00 00 00 00 00 00 00 00
SALARIES 400 400 400 400 400 550 500 600 600 600 600 600
 00 00 00 00 00 00 00 00 00 00 00 00
TELEPHO 300 200 100 200 100 100 100 100 100 150 200 200
NE 0 0 0 0 0 0 0 0 0 0 0 0
ADVERTIS 200 200 300 150 100 150 100 200 200 200 200 200
EMENT 0 0 0 0 0 00 0 0 0 0 0 0
REPAIRS / 500 500 500 250 250 100 500 500 500 500 500 500
MAINTAN 0 0 0 0 0 00 0 0 0 0 0 0
ANCE
TRANSPO 300 300 300 300 400 300 300 300 500 500 500 500
RT 0 0 0 0 0 0 0 0 0 0 0 0
OTHER 500 - - 100 100 1 100 500 500 - - 150
SPECIFY 0 0 000 0 0
TOTAL 895 955
CASH 00 00
OUTFLO
W
NET CASH

SUMMARY OF NETCASH

ITEM YEAR 1 YEAR2 YEAR 3

5.7 PRO-FORMA INCOME STATEMENT

YEAR 1

ITEM AMOUNT

YEAR 2

ITEM AMOUNT
 YEAR 3

ITEM AMOUNT

SUMMARY OF NET INCOME FOR THE FIRST THREE YEARS

ITEM YEAR 1 YEAR 2 YEAR 3

5.8 PRO- FORMA BALANCE SHEET

YEAR 1

YEAR 2

YEAR 3

5.9 BREAK EVEN ANALYSIS