bizness plan ayeeeee.docx

73
CHAPTER ONE BUSINESS DESCRIPTION 1.1. SPONSOR The business is sponsored by Evanson Njoroge aged 28yrs. He holds a Bachelor of Science in Information Technology from Jomo Kenyatta University of Agriculture and Technology (JKUAT) and a Diploma in Business Management from Strathmore University. He is a professional I.T consultant and previously worked with Safaricom as Database Administrator and with Access Kenya Group as Systems Analyst. He is very social and likeable hence will easily lure customers into his business premises. He also likes creating contacts and networks and this will be helpful to the business when it needs partnerships for expansion and growth. He intends to contribute Ksh270, 000 for the business.co partner contribution is 300,000ksh. He also hopes to get a loan of ksh440, 000 from Stima SACCO and raise ksh250000 from family, friends and well-wishers. He will therefore contribute 21.5% of the amount needed while co partner 1

Upload: anonymous-op6r1zs

Post on 15-Jan-2016

238 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: bizness plan ayeeeee.docx

CHAPTER ONE

BUSINESS DESCRIPTION

1.1. SPONSOR

The business is sponsored by Evanson Njoroge aged 28yrs. He holds a Bachelor of

Science in Information Technology from Jomo Kenyatta University of Agriculture and

Technology (JKUAT) and a Diploma in Business Management from Strathmore

University. He is a professional I.T consultant and previously worked with Safaricom as

Database Administrator and with Access Kenya Group as Systems Analyst. He is very

social and likeable hence will easily lure customers into his business premises. He also

likes creating contacts and networks and this will be helpful to the business when it

needs partnerships for expansion and growth. He intends to contribute Ksh270, 000 for

the business.co partner contribution is 300,000ksh. He also hopes to get a loan of

ksh440, 000 from Stima SACCO and raise ksh250000 from family, friends and well-

wishers. He will therefore contribute 21.5% of the amount needed while co partner

contribute 23.9% to run the business for the first four months comfortably without any

profits.

1.2. BUSINESS NAME

The business name will be ‘Prevans’. The name is derived from the combination of both

the proprietor's first name prefix and his wife's." Pr" is the prefix of proprietor's wife first

name Pretty and "Evans" is the prefix for proprietor's first name Evanson. The business

has not yet been registered, but the proposed location has already been established. The

suppliers of the machines and equipments have also been identified and their prices are

1

Page 2: bizness plan ayeeeee.docx

quite competitive, considering that they are offering high quality state of the art

equipments in the market. The business should start operating by April 2016

1.3. BUSINESS LOCATION AND ADDRESS

Deciding an optimum location for the business is a strategic and an important one. A

good location goes a long way in making the business successful. The location needs to

be carefully chosen. Some places have advantages over the others. The business will be

located in Garden City Mall, Nairobi County. The location is very accessible by road

transport since there are public vehicles going to and from Nairobi town all the time.

There are four police posts within the radius of 3kms, so this will guarantee safety and

security for all the business stakeholders. The Mall hosts over seven banks including

Equity Bank, which the business will seek to be its financial advisor and lender.

Moreover, the mall hosts every single industry such as hotels, Safaricom, cabs operators,

banks, hospitals etc. Garden City is just a stone thrown away from Thika Road Mall

(TRM) and Mountain Mall. Thika road hosts prospective fast-rated growing estates and a

center of enterprise hence customers for the business are guaranteed.

1.4. FORM OF OWNERSHIP

Prevans Barber Spa is a partnership entity that will be co-owned by Evanson Njoroge

and his fiancée Rachael Njoroge. Rachael Njoroge has 10 years experience in the hair

and spa industry. She has as a result continues to stay on top of the latest styles, trends

and products. Rachael has worked as a stylist, then as a manager where she managed 16

stylists in a prestigious upscale salon.

2

Page 3: bizness plan ayeeeee.docx

Mr. Evanson Njoroge - is the managing director of SYM consulting, a Technology

Consulting Firm. Mr. Njoroge is a pioneer and innovator with over 6 years experience in

the computer, e-business and telecommunications industry. Mr. Njoroge has a proven

record of accomplishment of success in launching new business and directing operations

for small and medium size enterprises. To achieve our objectives, Prevans Barber Spa is

seeking loan financing that.

The following table1.shows the financial contribution of the business:

SOURCE AMOUNT %

Evanson Njoroge (co-

owner)

270000 21.5%

Rachael Njoroge (co-

owner)

300000 23.9%

STIMA SACCO loan 440000 34.9%

Family and friends 250000 19.7%

Total capital investment 1,260,000 100

3

Page 4: bizness plan ayeeeee.docx

1.5. PRODUCTS AND SERVICES

Prevans will be providing both services and products to meet our customers’ needs. The

services offered by the Prevans can be divided into three areas, which are shown below

hair: cutting hair, washing, , ironing, high hair, curls, color, straightening, permanent,

hair treatments and extensions; face: Facial cleansing, make-up and permanent Eyelash;

body: Acrylic nails, manicure, pedicure and waxing.

1.5.1. Strategies to address the market

Web page creation and use of social networks: see the Internet and advertising on

social networks as tools for innovation, creating in this way a distinction with rivals from

the market and offering better quality than competitor’s content. Service brochure,

logo/slogan with advertising to be included, and a planned website would form part of

the literature for sales. The entrepreneur intends to be updating adverts regularly on the

business website to reflect changing trends in the market. Note that sales literature is an

ideal means of keeping customers informed of the services available and any adjustment

to the service. It therefore helps to maintain existing customers as well as attracting

others to the business. Going by the drivers of internet economy, Prevans Barber Spa

intends to adopt the philosophy of equipping customers with vital information

concerning hair care and massage. The entrepreneur believes that information is always

of greatest value to both the client and the business.

1.5.2. Services

Prevans Barber Spa is considered an upscale, full-service Barber Spa. We offer a wide

range of services that include: Hair: cuts; relaxers; shampoo; conditioning; curling;

reconstructing; Nails: manicures; pedicures; polish; sculptured nails

4

Page 5: bizness plan ayeeeee.docx

1.5.3. Future Products and Services

Prevans Barber Spa believes in power of consistent market research. As consumer

demand changes, the business should also adjust products and services to meet and

exceed customer expectation. The business will engage the market with a view of

monitoring changing trends in terms of needs and preference. In this way, Prevans will

be in position to remain in touch with the reality especially knowledge about ever-

changing consumer behavior. Such attribute ensures competitiveness and sustainability

in the midst of competition and unfavorable environment. The business will retain

customers and attract others due to provision of relevant services that match customer

demand. In other words, customer demand is the prime determinant of future products

and services at Prevans Barber Spa.

Prevans Barber Spa will, upon commencement of operations sell a wide range of beauty

products. We will be providing quality hair, nail, and skin care products. Prevans Barber

Spa has an exclusive contract with Joico to sell their top quality products. In addition, we

will have other name- brand products for sale to meet customer needs. The products will

include shampoos, conditioners, mousse, hair spray, nail polish, nail files, skin

conditioners, and cleansers, facial masks, and other such beauty products. What will set

Prevans apart from the competition is our commitment to providing all of these products

and services in one convenient location.

5

Page 6: bizness plan ayeeeee.docx

1.6. INDUSTRY

The industry analysis means which review the Economic forces, Social forces and

as well as Political forces or action. In Economic, forces affect the consumer level of

disposable income. In economic forces we study that how economic forces going to

effect the opportunities, in this force one have to evaluate who has money to spend and

who is trying to cut costs. Therefore, the economic forces are very much important while

opening the firms or any type of business. In Social forces, it means changing in the

social provides the opening for a new firm's on an ongoing basis. In Political, action

provides the basis for new business opportunities.

The industry is now starting to realize that the traditional barbershop needs to be

added to their list of major types. The Kenyan market has catered to men since

establishment of the first barbershop. The traditional barbershop in Kenya is starting to

expand its services to include massage, facials, manicures and pedicures based on the

changing market demand. High standards of grooming have always been a tradition in

most developed and developing economies. Most visitors from industrialized countries

such as US and Europe require standardized Spa service. In addition, the ever-rising

middle class has become a viable target for these high-end Barber Spas in Kenya. With

this information in mind, establishment of such line of business is an essential step to

helping the industry meet the growing need in the market.

1.7. JUSTIFICATION OF BUSINESS OPPORTUNITY

The traditional barbershop of years past have been traditionally been replaced by unisex

salon's and spa's which focused mainly on women. Professional men are more health and

style conscious, especially men who have achieved a modicum level of professional

6

Page 7: bizness plan ayeeeee.docx

success. They are willing pay for products and services that are geared specifically

toward men. Beauty is an inherent aspect of human nature. There is a need to provide

beauty services to satisfy the human need for beauty. Create employment. The business

will employ eight qualified staff to help in the running of the day-to-day activities and to

make the business a success.

The following highlights show the window of opportunity in satisfying this need:

There is high demand for professional hair services.

Ensure maximum satisfaction of highly esteemed customers’ needs.

Provide employment opportunities in hairdressing to local residents.

A well-versed community set up to accommodate the business and attract

customers in a short time.

Ready market as the average Nairobi residents visits beauty parlor at least

fortnight.

Poor enhanced self-image in the society-prompting search for good looks by

individuals guaranteeing a ready market.

Prevans Barber Spa will have the state of art equipment, apparatus and air

conditioned rooms to the comfort of our customers

Natural attraction to beauty by people of all walks of life creating a perpetual

need to search for the same.

7

Page 8: bizness plan ayeeeee.docx

1.8. BUSINESS GOALS

Business goals are part of the planning process. They describe what a company expects

to accomplish over a specific period. Businesses usually outline their goals and

objectives in their business plans. Goals might pertain to the company as a whole,

departments, employees, customers, or any other area of the business. The business

vision is to be the best Prevans Barber Spa in Nairobi by 2018.

1.8.1. Short Term Goals

The short-term goals of the business include the following:

To provide quality and affordable hair cut and spa services to its customers

To evaluate management team every quarter

To create employment by engaging committed and qualified staff

1.8.2. Long term goals

To increase our market share by 40% by 2019

Receive at least 90 percent positive customer feedback regarding our services by 2018

Awarding an employee of the year award to the employee who provides the most

creative input during the year in terms of practical ideas to improve the enterprise

8

Page 9: bizness plan ayeeeee.docx

1.9. ENTRY AND GROWTH STRATEGY

1.9.1. Entry Strategy

The entry strategy of the proposed business is laid down through a series of activities,

which include; carrying out advertisements through radio two days in a week for a month

prior to the opening of the business. This is target at reaching over 50% of customer

within lower income areas within Nairobi. The advertisements will cost about Kshs. 3000

per month; Advertisement in the daily national News Papers for one month. The

advertisements will be placed in the ‘Daily Nation’ and the ‘Standard’ on Mondays,

Wednesdays and Fridays of each week. The adverts are expected to cost the business

Kshs. 4,000. This is aimed at creating a strong customer brand; Print business cards and

supply to friends prior to opening of the business to increase our distribution list. The

business will make provision of Kshs. 2000 for printing business cards every three

months; Printed T. Shirts with the name of the business and location to be given to our

initial customers for publicity purposes. This is aimed at increasing customer satisfaction

and a strong brand. This will have a one-time cost implication on the business of Kshs.

3000; a discount of 20% will be rewarded to those customers who refer at least three

customers. This will aid the business in attracting and retaining loyal customers;

Qualified and professional staff will be recruited to ensure quality service delivery. This

will ensure quality is maintained hence customers are satisfied with the services given

1.9.2. Growth Strategy

In recent times there has been increased Rural to Urban migration leading to more people

settling in Nairobi. This is projected to push the Beauty industry towards the path of

9

Page 10: bizness plan ayeeeee.docx

growth in one to two years. In addition, the economy is projected to expand to close to

10% by end of 2019. This will definitely increase the purchasing power of the city

dwellers. To reap from the prospects, Prevans Barber Spa plans to invest back 75% of the

profits in the first 2 years. Prevans barber spa best growth potential is in terms of daytime

employment. The total daytime business population in a three-mile radius is 42,759 with

the residential population at 59,251. The total daytime business population in a five-mile

radius is 109,867 with the residential population at 161,848. The nearby business parks

also have an ample supply of land for future office development. An even more

predictable source of daytime employment growth is the planned expansion of existing

companies because of completion of Thika road superhighway.

10

Page 11: bizness plan ayeeeee.docx

1.10. SWOT ANALYSIS

Table 2: SWOT analysis of proposed business

SWOT Analysis for Prevans Barber ShopInternalStrengths Weaknesses

1. Technological skills2. Successful relationship marketing 3. Innovative sales techniques4. Leading brands5. Skilled workforce6. Modern designs7. Exclusive products8. Special equipment9. The customer can reserve and pay

online10. Quick response-no red tape11. Low overheads-good value12. Able to change direction quickly13. Unique brands protected by sole supply

agreements.

 

 

1. Low customer retention2. Financial limitations/unreliable cash

flow3. Limited services4. New entrants in the market5. Competition between discounts

proposed by other barber shops and ours6. No market Presence7. Shallow skills base8. Vulnerable to staff turnover

ExternalOpportunities Threats

1. Local government wants to work with local businesses

2. Increased geographic coverage3. Leverage the growth of the internet to

enhance business 4. Reasonable prices5. The spa market increased by 19% in

20146. Possibility of expansion of our services

in major suburbs7. Competitors slow to adapt to new

technologies8. Expanding sector with many

opportunities for growth

 

1. Changing fashion trends may shift consumer interest in our product range

2. Government regulations3. Rents increasing above projections

putting pressure on our margins 4. Increasing costs5. Web competition in terms of visibility6. Easily accessible home equipment7. Vulnerable to large competitor action8. Will technology change beyond our

ability to adapt?

11

Page 12: bizness plan ayeeeee.docx

CHAPTER TWO

2.0. Marketing Plan Objectives

A marketing plan is a comprehensive blueprint, which outlines an organization's overall

marketing efforts. A marketing process can be realized by the marketing mix, which is

outlined in step 4. The last step in the process is the marketing controlling

This marketing plan emphasizes grooming services provided by Prevans barber spa.

Prevans barber spa believes that two opportunities offer the greatest opportunity to enter

the market, differentiated from the competitors and taking advantage of the growing

target market. First, we must differentiate our services by tailoring to professional males.

Providing a masculine environment to include colors, décor and total atmosphere will

increase the probability of repeat business. Within the first year, the number of customers

will be a quantity to support all fixed and variable cost.

Differentiation and Positioning

Prevans barber spa will differentiate from its competitors by providing a male centered

environment that emphasizes quality and helpful service on a consistent basis.

Marketing Strategy

Three related target markets were identified for Prevans barber spa with the following

strategies:

Target Market 1 Single Professional Males

The first target market for Prevans barber spa is a single professional male in the Raleigh

area. The marketing tactics directed at this target market is as follows:

12

Page 13: bizness plan ayeeeee.docx

* Product – Bundled services

* Place – Downtown business district

* Promotion – Flyers

* Promotion – Radio

Product – Bundled Services. Prevans barber spa will offer bundled services as to show

value for the prices. Bundles will include a haircut, shampoo, conditioning, and scalp and

face massage, hot towel, styling, and cologne at a minimum. It bundle will add more

services for the increased price. Customers will receive free touch ups between

appointments with selected bundles.

Place – Downtown business district. Prevans barber spa will be located in garden estate

along Thika road superhighway. The nightlife for this area has been firmly established

and the Prevans barber spa plans to become a part of both the business and nightlife

culture.

Promotion – Flyers will be given out in everywhere along Thika road superhighway.

Promotion – Radio. Teasers will be utilized on local radio shows that show a large

following by our target market. The teasers will be to draw attention to the salon.

2.1. CUSTOMERS

Prevans will focus on the professional male. An Internet study revealed that 85% of

professional men had personal hair grooming services performed during the workday.

The space at The Mall fits the demographics for our business. Applied Geographic

Solutions estimates that 59,251 people live within a three-mile radius of our facility and

42,759 work there. They estimate 161,848 live within a five-mile radius and a population

13

Page 14: bizness plan ayeeeee.docx

of 109,867 works there. Totaling 6,206 businesses located 15 business parks within a

seven-mile radius.

2.1.1. Customer Profile

Prevans barber spa typical client will be:

Between the ages of 30 and 55

Income levels of $25,000 to $40,000

2.2 MARKET SHARE

The beautification industry is economically stable. However, our market share is on the

rise with an increase in disposable income as more men join the workforce. Industry

trends show that as time becomes more limited, people want faster, easier and more

economical services all in one location. Customers are more educated and more

demanding of quality service. Our market area includes Garden estate Thika road and

surrounding environs. Now, there are four major competitors within 100 Meters

proximity from the proposed location of prevans barber spa.

Prevans barber spa hopes to capture 8% of market share in the first year. This is assumed

to translate to each of the other four firms losing two percent of their current market

share to result in the following scene:

Elegant Beauty Salon Market share = 33%

Beauty Care spa Market share =22%

One Touch Hair Therapy Market share = 19%

14

Page 15: bizness plan ayeeeee.docx

Executive Hair Salon Market share =18%

Prevans barber spa Market share = 8%

The figure 2.0 below illustrates the proposed scene in the market.

The figure 2.0: the proposed scene in the market

Elegant Beauty Salon

33%

Beauty Care Hair Salon 22%

One Touch Hair Therapy

19%

Executive Hair Salon18%

prevans barber

spa

Source: Author(2015)

The 8% market share shall give the proposed business 4,000 customers annually

calculated as follows: (8% X 50,000). The service cannot be quantified in units; however,

the business expects to earn an average of Kshs. 300 per client in a month. This reflects

total sales revenue of Kshs. 200,000 per month.

2.3. COMPETITORS

Competitive Summary

Prevans barber spa wants to set itself apart from other barbershop that may offer only one

15

Page 16: bizness plan ayeeeee.docx

or two types of service. Prevans barber spa realized from talking to clients, that they

desire all of the services that we are proposing, but they remain frustrated because they

must get their hair done at one place, and nails at another. Although the focus of Prevans

barber spa is hair services, we do plan to offer our clients the convenience of all these

services in one location.

There are a number of barbershop and spa like ours, but they are mainly in the low

income parts of Nairobi surrounding areas. Our business atmosphere will be a relaxing

one where clients can seat back and be pampered. Coffee and soft drinks will be offered

to clients as they enter for service. Televisions will be located in the waiting and hair-

drying areas

2.4. SALES TACTICS

Sales tactics

Prevans barber spa shall employ personal selling tactics by the use of the employees. The

employees include beauticians, shampoo persons and hairdressers who will all participate

in personal selling. The employees will be paid a monthly salary. The salaries of the

employees will be revised upwards by 20% annually for motivation.

2.5 ADVERTISING AND PROMOTION STRATEGIES

2.5.1 Advertising Strategy

Prevans barber spa will make use of different methods of advertising. Through the flyers,

business cards and the brochures, the image of our services will be portrayed. The advert

will create a picture in our customers mind that, our services are of high quality, unique

16

Page 17: bizness plan ayeeeee.docx

and low priced. The brochure will also illustrate an excerpt of a hair that is done at our

place. The business will be advertising after every four months, while the flyers will be

after every three month. The advertising cost per month shall be Kshs. 12,000 calculated

as follows.

Table three advertisement medium and unit cost

Frequency Unit cost, Kshs. Amount, Kshs.

Print media 4 1000 4000

Radio 5 600 3,000

Flyers 400 5 2000

Business cards 600 20 3000

Total 12,000

This arrangement will enable the business to be advertising the business throughout the

year without duplicating the advertising costs. The proprietor will be in a position to

judge on the effectiveness of the advert through the number the business receive in a

particular month after relating it with the method of advertising used. Beside increased

sales volume, it will be possible to evaluate the number of customers making repeat

purchase as well as rate of enquires for our services.

17

Page 18: bizness plan ayeeeee.docx

2.5.2 Promotion Strategy

In order to promote Prevans barber spa especially during the first year, the business will

perform hairdo without charges for the first customer who visits on the first day of the

week (i.e. Monday for this case). This will go on for the first six months and will act as

free samples, which will be, performed our business premises as a campaign towards

popularizing the business. The promotion cost will add up to Kshs 30,000 per year as

shown below:

1 customer X 50 weeks X Kshs 600 = Kshs 30,000/=

To measure the effectiveness of this campaign, the business will be taking record of the

number of clients who are served the free sample and come back for the services.

2.6 PRICING STRATEGY

Pricing

The brand-name hair products will range in cost from 500ksh 4000ksh. These costs

will not vary from other competitors. This is because there is a standard price that

salons may charge for these products. Our mark-up will be approximately 60% above

cost for a retail price range of 2000ksh – 5000ksh. This is standard pricing in

comparison to the competition. Our services will average 2000ksh, with a range of

500ksh for a hair trim to 2000ksh for a complete beauty package (hair, massage,

facial, manicure, and pedicure). These prices are lower than our competitors’ pricing.

18

Page 19: bizness plan ayeeeee.docx

Our pricing strategy will be similar to that of our competitors. We will charge neither

beyond our rates, nor substantially under, standard prices for our services. We will be

paying our employees a straight percentage of their total individual client sales plus a

bonus–that is more than our competitors are. This will allow us to hire the best

employees, and have a built-in motivational factor that will keep them empowered to

enhance their opportunity.

2.7 DISTRIBUTION STRATEGY

2.7.1. Channels of Distribution

During the first two years of operation, every employee in the business will contribute

towards the sales force. This will happen mainly spreading the news on prevans barber

spa to the friends and neighbors in their respective estates. Since we will be dealing with

services, potential clients will be required to come for the services at the business

premises. Therefore, our business will not account for any transport costs.

2.7.2. Distribution Problems and Solutions

The business will start small and deliver the services at its premises. Customers will be

expected to come for the hairdressing services. In this regard, there will be no taking the

service to clients’ residences, though this might be considered later when the business

picks up and grows. Therefore, the business does not anticipate any problems that might

occur due to distribution logistics within the three first years of operation.

19

Page 20: bizness plan ayeeeee.docx

CHAPTER THREE

3.0 ORGANIZATION PLAN

The owner who shall have the title of ‘Supervisor’ shall manage prevans barber spa. The

other employees will include a Beautician, a Shampoo person and three Hairdressers who

shall all be reporting to the Supervisor. In total, the proposed business shall employ six

people at the start of operations. All the employees shall be hired on permanent basis and

paid a monthly salary, which shall be reviewed after every six months

3.1 Organization Chart

The figure 3.1 below shows the organizational chart

Figure 3.0: Organization Chart

Source: Author (2015)

20

SUPERVISOR

Professional Shoe-ShinersHair Stylish/Barbers/

Aesthetician/Massage Therapist

Receptionist

Page 21: bizness plan ayeeeee.docx

As shown in figure 3.1 above, the business propose to have one supervisor, one

beautician, one shampoo person and three hairdressers with the supervisor at the top of

the hierarchy.

3.2 THE MANAGEMENT TEAM

The business will be under the management of the supervisor. The proprietor shall

assume the position of the Supervisor and will be responsible for managing all the

operations of the proposed business including planning, organizing, coordinating and

directing business operations. The duties and responsibilities of the proprietor as

supervisor and manager of the business will be as follows:

Prepare and review business policies including procedures and process and

communicate the same to the other employees.

Organize and facilitate capacity development programmes for employees

Conduct performance appraisal for employees

Organizing for business marketing activities

Division of work among the workers

Undertake budgeting of all business activities and ensure effective utilization of

the business resources for maximum returns

Resolve conflicts among employees and be in charge of harmonious industrial

relations between the employees and management

21

Page 22: bizness plan ayeeeee.docx

Ensuring prompt procurement of all items required for operations

Keeping books of account

Following up on debtors and reviewing credit policy of the business

Supervising the other employees

Making both tactical and strategic decisions

Hiring and firing of staff

Rewarding the employees by paying them emoluments

3.3 OTHER PERSONNEL

Receptionist Job Description (1 position)

Welcome clients as they arrive in the salon and provide them with required

information

Determine clients’ needs for hair cutting and styling and suggest possible

solutions

Maintain knowledge of industry trends and popular hairstyling techniques to keep

updated with current fashions

Take telephone calls and respond to inquiries put forth by callers

Schedule appointments and ensure that any cancellations or readjustments are

taken care of

Make follow up calls to clients to remind them of their appointments

Determine which hair stylist will be suitable for a client in question

22

Page 23: bizness plan ayeeeee.docx

Ensure that hair stylists understands what clients want to have done with their hair

Provide clients with information on products and techniques used during hair

cutting and styling activities

Ask clients if they are allergic to any hair products and ensure that hair stylist is

aware of this information

Take and record clients’ contact information in the salon database

Operate the cash register, take payments for services rendered and issue change

and receipts

Ensure that the cash drawer or register is balanced at the end of the day

Maintain positive work relationships with vendors to ensure that sufficient salon

supplies are available

Handle hair salon supplies and equipment inventory activities

Hair Stylish/Barbers Job Description (5 positions)

Determine clients’ individual requirements by conferring with them in detail

Provide information to clients regarding the type of care treatment prudent for

them

Cut or trim hair using clippers and scissors

Provide bleaching, coloring, waving and straightening services

Perform blow-dry services

Shave and trim moustaches and beards

Shape, cut, adjust and curl wigs as required by clients

Operate cash registers

23

Page 24: bizness plan ayeeeee.docx

Perform limited reception duties

Sell salon or barber shop’s retail products

Provide advice to clients regarding hair products and care

Provide appropriate post-cutting guidelines

Ensure appropriate cleanliness of work areas

Maintain and sanitize hair cutting tools and salon instruments

Provide facials and manicures

Manage hair oiling and massage services

Provide demonstrations to trainees

Train newly hired hair stylists in a proactive manner

Maintain appointment calendars and customer databases

Professional Shoe Shiners (2 positions)

The Shoe Shine Attendant is responsible for guest satisfaction by performing

services to the best of their ability and maintaining all Shoe Shine standards throughout

all procedures.& Appointments will occur at reserved time with no delay and all walk

ups will be taken as expeditiously as possible.

The Shoe Shine personnel will maintain the cleanliness of the Shoe Shine stand in

a professional manner at all times and follow all established protocols and checklists to

enhance the operation and client experience.

24

Page 25: bizness plan ayeeeee.docx

Skills / Requirements

Essential Duties and Responsibilities include the following. Other duties may be

assigned.

Maintains all work related areas in accordance with Prevans Shoe Shine standards

Maintains equipment and supplies on a daily basis

Assists in training Shoe Shine services to new employees

Provides demonstration services and assists in service training for other hotel

personnel

Assists in other areas as needed

Reports any service glitches immediately

Performs any or all duties as assigned by management

Meets or exceeds retail and revenue goals

Follows uniform and grooming guidelines

Works varying shifts based on business needs including holidays and weekends

Communicates lost and found items to appropriate area immediately

Demonstrates full knowledge of the Shoe Shine’s standards and the products

used, their benefits, and is able to communicate these to guests

Provides excellent service to all guests

Follows all established protocols for the proper and consistent execution and does

so within specified timelines and without deviation

Assists guests with retail product selections and educates them on correct use

Greets all guests and displays knowledge of services available

25

Page 26: bizness plan ayeeeee.docx

Makes all guests feel welcome and takes ownership of simple requests

Reads log books, communications board and memos daily and is responsible for

information contained therein

Completes all established checklists accurately

Assists in inventory control as needed

Actively learns products, their uses, and associated benefits

Education and/or Experience: High School Diploma or equivalent required.

Computer Skills: Basic PC skills preferred.

Other Qualifications:

Must be reliable, trustworthy and posses a pleasant personality

Must have excellent customer service and communication skills

Ability to work harmoniously with others and be a team player

Ability to handle pressure and difficult situations

Presents a professional and well-groomed appearance at all times

Must be able and willing to work a flexible schedule, including weekends,

evenings and holidays

Language Skills:

Must be able to read, write, speak and understand English. Knowledge of multiple

languages is a plus.

Physical Demands:

26

Page 27: bizness plan ayeeeee.docx

While performing the duties of this Job, the employee is regularly required to stand,

bend, lean and walk for up to 10 hours; use hands and fingers to handle, or feel; reach

with hands and arms and talk or hear. The employee must regularly lift and /or move up

to 25 pounds. Specific vision abilities required by this job include close vision, distance

vision, color vision, peripheral vision, depth perception and ability to adjust focus.

Work Environment: While performing the duties of this job, the employee is regularly

exposed to secondary smoke. The noise level in the work environment is usually

moderate to loud.

Aesthetician/Massage Therapist (2 positions)

To get qualified employees, the proprietor will invite applications from all interested

persons. She will put posters on strategic places including Ashley Beauty College notice

board and Odeon Cinema job search gallery. This will enable us to attract as many

applicants as possible, from where we will get those with the required skills and

qualifications.

3.4 RECRUITMENT, TRAINING AND PROMOTION

To evaluate the performance of prevans barber spa employees, the proprietor shall

employ various methods including:

Quality of the end results

Average time taken to attend a customer

Ability to meet challenges inherent with their tasks

27

Page 28: bizness plan ayeeeee.docx

Suggestions from the customers which will be done through mounting a

suggestion box within the business premises

Evaluation mechanisms are expected to cost the business about Kshs 10,000

every year. The business will also have training programmes for employees at

least once per annum. This is because of emergence of new styles emerging in the

market and training would keep our salon abreast to the latest fashions. Training

will always be done by inviting a consultant to the business premise. This will

enable very little interruption on the normal operations of the business. The

business shall make a provision of Kshs. 30,000 for training per annum. The

business will provide incentives to the employees, which are expected to have

annual cost implication as mentioned below:

Tea Kshs 25,000

Bonus Kshs 50,000

Total incentives Kshs. 75,000

3.5 LICENSE, PERMITS AND BY-LAWS

The business will fully adhere to the government regulations, policies concerning

operating, and running a business. The business shall obtain the following licenses and

permits: Business name registration: As an entrepreneur the first thing that will be done

is to register is the business name and this is done under state registration of legal entity,

statistical, and tax registration.

28

Page 29: bizness plan ayeeeee.docx

This is done at the Centre for Public Registration and involves a process of company

name reservation, which lasts 7 days but can be renewed for a similar period. Doing this

should take about 3 days and would cost ksh 100 per name reservation.

Single business permit: The license will be obtained from the County of Nairobi and is

issued by the Licensing officer. The fee to apply for a business permit varies by type of

business, number of employees, and size of the company’s premises. It will cost ksh.

10,000 for the single business permit which is payable once a year. The process of

obtaining a business permit takes a period of 5 days.

Transport Business License (TBL): This will be obtained from the from the Kenya

Revenue authority. This is in line with the traffic rules and regulations that will show that

the motorbikes are fit to be on the roads. This will be charged at ksh. 4,000 per year.

3.6 SUPPORT SERVICES

Bank: The manager will open an account with Barclays Bank Moi Avenue branch. This

is because the bank is conveniently located; opposite the business premises. The bank

also offer good package for the business and also offers business loans to its customers.

They charge a monthly account maintenance fee of ksh 200 and the minimum account

balance is ksh. 1,000. Other services that will be sought for from the bank are money

transfers, cheque clearance, paying employees and banking money.

Company legal officer/lawyer: The business shall use Mohammed and Co. Advocates as

its legal advisor. They are located at Nation Centre, Kimathi Street in Nairobi. The

services to be rendered by the legal time shall include drafting employee contracts and

advising and updating on any legal aspects that may affect the running of the business.

The charges for this service will be payable once a year at the cost of ksh. 20,000.

29

Page 30: bizness plan ayeeeee.docx

Global Links Solutions will audit the business’s books of accounts once a year at the cost

of ksh. 15,000 per year Frontier Business Solutions will act as the business advisor for

the business at a service charge of ksh. 10,000 per year

The business will also insure itself with Blue Shield Insurance Ltd. Charges are projected

to be Kshs. 20,000 annually. Other supporting services that the business will require

include auditing from AKA Auditors at Kshs. 20,000 annually and training services from

Angel Beauty College at Kshs. 30,000 annually.

Bank: The manager will open an account with Barclays Bank Moi Avenue branch. This

is because the bank is conveniently located; opposite the business premises. The bank

also offer good package for the business and offers business loans to its customers. They

charge a monthly account maintenance fee of ksh 200 and the minimum account balance

is ksh. 1,000. Other services that will be sought for from the bank are money transfers,

cheque clearance, paying employees and banking money.

Company legal officer/lawyer: The business shall use Mohammed and Co. Advocates as

its legal advisor. They are located at Nation Centre, Kimathi Street in Nairobi. The

services to be rendered by the legal time shall include drafting employee contracts,

advising, and updating on any legal aspects that may affect the running of the business.

The charges for this service will be payable once a year at the cost of ksh. 20,000. Global

Links Solutions will audit the business’s books of accounts once a year at the cost of ksh.

15,000 per year. Frontier Business Solutions will act as the business advisor for the

business at a service charge of ksh. 10,000 per year. Other support services will be

insurance cover for the premises with Britam Insurance Company at the cost of ksh

35,000 per year.

30

Page 31: bizness plan ayeeeee.docx

The business will also engage Orange Telkom as its internet provider at a cost of ksh.2,

000 per month. Cleaning services will be outsourced and to be done by Pine Wood

Cleaners at a rate of ksh. 2,500 per month. Garbage collection services will be provided

by the premise’s management and will be charged at ksh 1,000 per month. Kenya Power

and Lighting Company will provide electricity at a cost of ksh. 1,200 per month

31

Page 32: bizness plan ayeeeee.docx

CHAPTER FOUR

OPERATIONAL PLAN

The Nairobi City County with a charge of ksh will provide water. 500 per month

4.1 OPERATIONAL FACILITY AND CAPICITY

Description of the Machinery and Equipments Required for Operations

The table 4.1 below shows the machinery and equipment required for operations

Item

Sou

rce

Cos

t P

er U

nit

Un

its

Req

uir

ed

Inst

alla

tion

Cos

ts

Tot

al C

osts

Dat

e R

equ

ired

    Kshs   Kshs Kshs  

Spray can

Best-lady

Cosmetics

3,000

3

-

9,

000 01/1/2016

Dryer

Best-lady

Cosmetics

12,000

5

-

60,

000 01/1/2016

Blow Dry Machine

Best-lady

Cosmetics

8,000

4

-

32

,000 01/1/2016

Movable Lockers Furniture 120 01/01/2016

32

Page 33: bizness plan ayeeeee.docx

Item

Sou

rce

Cos

t P

er U

nit

Un

its

Req

uir

ed

Inst

alla

tion

Cos

ts

Tot

al C

osts

Dat

e R

equ

ired

    Kshs   Kshs Kshs  

Palace 30,000 4 - ,000

Table

Furniture

Palace

4,000

1

-

4,

000 01/1/2016

Furniture

Furniture

Palace

5,000

20

-

100

,000 01/1/2016

Loose Tools (e.g.

Scissors and rollers) Supermarket

-

-

-

20,

000 01/1/2016

Total        

345

,000  

Description of the Machinery and Equipments Required for Operations

Source: Author (2015)

Prevans will completely own all tools and equipment needed in operation of the business. Therefore, there will be no any hired or

leased tools. Plans for Maintenance and Repairs for Machinery & Equipment To maintain and repair the machinery and equipments,

prevans will hire the services of a reputable firm. The provisional firm to provide this service will be Saloquip Continuance Ltd,

located along Ronald Ngala Street in Nairobi City. This is a reputable firm, which has been in the business of repair and maintenance

33

Page 34: bizness plan ayeeeee.docx

for 12 years. Monthly maintenance and repair costs are projected to be Kshs 30,000. The decision to outsource repair and maintenance

costs is prudent for the firm since it will save on costs and get maximum quality. Prevans will use machineries and equipments with

spare parts that are available locally. The supplier of the spare part will be the Euro Spares located along the River Road in Nairobi

City Centre. Since spare parts are expensive, it will be prudent for prevans to provide or set aside some money on monthly bases to

cater for these expenses. This provision will amount to Kshs 2,000 monthly.

Other Equipments Required

Item Source

Cost Per

Unit

Units

Required

Installation

Costs

Total

Costs Date Required

    Kshs   Kshs Kshs  

Computer Davetech

20,0

00

1

-

20,00

0 01/1/2016

Television Swahir Entertainment

14,0

00

1

-

14,00

0 01/1/2016

Radio Swahir Entertainment

8,0

00

1

-

8,00

0 01/1/2016

DVD Player Swahir Entertainment

5,0

00

1

-

5,00

0 01/1/2016

Other Office

Equipments Tuskys Supermarket

10,0

00

-

-

10,00

0 01/1/2016

Total        

57,00

0  

34

Page 35: bizness plan ayeeeee.docx

Table 4.2: Other Equipments Required

Source: Author (2015)

4.2 OPERATION STRATEGY

Table 4.2.1 Monthly Material Requirements

Item

Sou

rce

Qu

anti

ty

Cos

t

per

L

iter

Fre

qu

ency

R

equ

ired

Tot

al C

osts

    Liters Kshs   Kshs

Conditioner Best-lady 17 120 Once a month 2040

Disinfectant Best-lady 20 100

Once a month 2,000

Hair Gel Best-lady 25 100

Once a month 2,500

Hair Oil Best-lady 16 400

Once a month 6,400

Hair Relaxer Best-lady 32 300

Once a month 9,600

Shampoo Best-lady 25 100

Once a month 2,500

Styling Spray (Cans) Best-lady 25 100

Once a month 2,500

Treatment oil Best-lady 25 300

Once a month 7,500

35

Page 36: bizness plan ayeeeee.docx

TOTAL 35,040

Monthly Material Requirements

Source: Author (2015)

4.3. OPERATION PROCESS

All the above-mentioned raw materials are readily available in the market and therefore the business will not experience any shortages

in the supply of raw materials. These materials will always be bought on monthly bases and at ago unless there is unanticipated

diminution in any of the materials. This arrangement will enable the business to save carriage in costs. The materials will be supplied

to the business premises at the supplier’s cost.

Monthly Labor Requirement

The business will employ the following employees to commence its operations. All these employees will provide direct labor and

include a supervisor, shoe shiner, Hair Stylish/Barbers/ Aesthetician/Massage and a receptionist.

The cost of direct labor is as calculated below:

Receptionist = 1 X 12,000 = 12,000.00

Shoe shiner = 1 X 7,000 = 7,000.00

5Hair Stylish/Barbers/= 5 X 10000 = 50,000.00

Total direct labor cost per month = 69,000 .00

36

Page 37: bizness plan ayeeeee.docx

Indirect labor cost includes:

Supervisor = 1 X 18,000 = 18,000.00

Total indirect labor cost= Kshs. 18,000.00

Total labor cost= Total direct labor + total indirect labor cost

+Kshs. 69000+ Kshs. 18000= Kshs. 87,000

4.3.3 Monthly Operation Expenses

The table 4.4.1 below shows the monthly expenses.

Monthly Production Expenses Amount (Kshs.)Monthly Labor Requirements 87,000.00 Water 1,000.00 Electricity 3,000.00 Stationery 416.67 Maintenance 2,500Advertising 3,000.00 Promotion 2,500.00 Insurance 833.33Telephone 2,500.00 Rent 10,000.00 Interest expenses 2083.00Support Services 6,141.00 Total 127,225

Monthly Expenses

37

Page 38: bizness plan ayeeeee.docx

Source: Author (2015)

Calculating the Cost of Production-As indicated in section 2.3 Pricing strategy, the cost of offering the service per customer would cost the business Kshs. 219.22. This includes all the direct and indirect costs. Since the business expects 20 clients per day, the cost of providing the service in a given period is calculated as follows:

Cost per day Kshs. 219.22X 20= Kshs. 4384.54

Cost per week= Kshs. 4384.54X6= Kshs. 26,307

Cost per month= Kshs. 26,307X4= Kshs. 105,228

4.4 GOVERNMENT REGULATIONS

Table 4.4.2. Government regulations

Permit/License Required Source Amount Kshs

Name search and business registration Registrar of Companies 1,000

Trading license City Council of Nairobi 10,500

Stamp Duty KRA Times Tower 500

City council Approval Nairobi City Council 2,000

Register with VAT office KRA, Times Towers -

Register with NSSF NSSF building community -

Register with NHIF NHIF building community 14,000

Government Regulations

38

Page 39: bizness plan ayeeeee.docx

In addition to the permits, the business will be required to pay local taxes which include employment taxes for all the employees as

well as the V.A.T. before the business commences, the city council of Nairobi will have to approve whether the premises is fit for

operating the business of a salon it. This approval will cost Kshs 2,000 upon which the entrepreneur will be awarded with a certificate

of approval. There will be no any other approval required for us to begin the business. Other regulations that are likely to affect our

business will be proposals made by the Minister for Finance affecting products that are raw materials for our business.

39

Page 40: bizness plan ayeeeee.docx

CHAPTER FIVE FINANCIAL PLAN

5.1 FINANCIAL ASSUMPTION

Assumptions made on the costs:

The costs are the current market prices and they are expected to remain unchanged until December 2016 when the proprietor will

incur them.

The deposit for rent will be for two months and the proprietor will be paying one-month rent in advance.

The business will pay tax of 15% on profit before tax, and this percentage is expected to remain constant for the first three years of

operation.

The service revenue will grow by 30% per year.

The direct costs are assumed to increase by 10% while the indirect cost will increase by 30% per annum.

The direct costs include the costs of direct labor and direct material. This is computed based on the calculation in section 2.3:

Pricing strategy. The direct cost per customer is Kshs. 91.80 X 6240 customers per annum= Kshs. 572,832.

The number of customers is calculated at 20 per day, 20X6 days =120 customers per week and 120X52 weeks = 6240 customers

per year.

The indirect cost per customer was calculated to be Kshs. 127.4 per customer. Therefore annual indirect cost is calculated as Kshs.

127.4X6240 =Kshs. 795,163

40

Page 41: bizness plan ayeeeee.docx

The indirect cost includes the cost of all overhead expenses such as indirect labor, interest expenses, operating expenses, and

support services.

5.2 PRE-OPERATIONAL

Table 5.1: Pre-operational costs.

Cost component Amount (Kshs.)

Machine and equipment 345,000

Other equipment 57,000

Fixture and fittings 100,000

Materials 100,000

Deposit for rent 20,000

Deposit for water 1,000

Deposit for electricity 3,000

Advertisement campaigns 20,000

Hiring employees 23,000

Business licenses and permits 14,000

Transport and Communication 10,000

TOTAL 693,000

Source: Author (2015)

41

Page 42: bizness plan ayeeeee.docx

5.3. WORKING Capital Working capital will be calculated as follows: Working capital= Current Assets-Current Liabilities At start-

up the working capital shall be =Kshs. 307,000

5.4. PROJECTED CASH FLOW

The table 5.4.1 below shows the cash flow projection for the first year of operations.

ITEMS JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DECReceipts KSHS KSHS KSHS KSHS KSHS KSHS KSHS KSHS KSHS KSHS KSHS KSHS

Bal b/f524,608

589,215 653,822 718,430 783,037 847,645 912,253 976,861 1,041,4681,106,076

1,170,684

Capital 1,000,000 - - - - - - - - - - -

Service revenue 200,000200,000

200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000

Total receipts 1,200,000724,608

789,215 853,822 918,430 983,0371,047,645

1,112,253 1,176,861 1,241,4681,306,076

1,370,684

PaymentsTaxation 11,645 11,645 11,645 11,645 11,645 11,645 11,645 11,645 11,645 11,645 11,645 11,645Machines and equipments

402,000 - - - - - - - - - - -

Fixtures and fittings 100,000 - - - - - - - - - - -Salaries and wages 73,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000Deposits 24,000 - - - - - - - - - - 48,000Material requirements 35,040 35,040 35,040 35,040 35,040 35,040 35,040 35,040 35,040 35,040 35,040 35,040Permits and licenses 14,000 - - - - - - - - - - 5,000Support Services 5,308 5,308 5,308 5,308 5,308 5,308 5,308 5,308 5,308 5,308 5,308 5,308Interest on loan 3,750 3,667 3,583 3,498 3,411 3,324 3,235 3,146 3,055 2,963 2,871 2,776Principal paid 6,649 6,732 6,816 6,901 6,988 7,075 7,164 7,253 7,344 7,436 7,528 7,623

Total payments 675,392135,393

135,393 135,393 135,392 135,392 135,392 135,392 135,392 135,392 135,392 188,392

42

Page 43: bizness plan ayeeeee.docx

Net cash 524,608589,215

653,822 718,430 783,037 847,645 912,253 976,861 1,041,468 1,106,0761,170,684

1,182,291

43

Page 44: bizness plan ayeeeee.docx

5.5 PROFORMA PROFIT AND LOSS ACCOUNT

The table 5.5 below shows the projections for the profit and loss account.

ITEM 2016 2017 2018Kshs Kshs Kshs

Service revenue 2,400,000 3,120,000 3,432,000Direct costs 572,832 630,115 693,127Gross profit 1,827,168 2,489,885 2,738,873

Overhead expensesIndirect costs 795,163 238548.9 71564.67Depreciation 100,400 60,320 48256Total expenses 895,563 298,869 119,821

Profit before tax 931,605 2,191,016 2,619,053Tax (15%) 139,741 328,652 392,858Net profit after tax for the year

791,864 1,862,364 2,226,195

Cumulative profits 791,864 2,654,228 4,880,422Table 5.2: profit and loss account

Source: Author (2015)

5.6 PROFORMA BALANCE SHEET

table5.6. Presents the projected balance sheet of Prevans Barber Spa

Jan-2016 Dec-2016 Dec-2016 Dec-2016ASSETS Kshs Kshs Kshs KshsFixed AssetsMachine and equipment 402,000 402,000 402,000 402,000Fixtures and fittings 100,000 100,000 100,000 100,000Total value at cost 502,000 502,000 502,000 502,000Less accumulated depreciation 100,400 160,720 208,976Net Book value of assets 502,000 301,600 241,280 193,024

Total fixed assets 502,000 301,600 241,280 193,024

44

Page 45: bizness plan ayeeeee.docx

Current assetsCash 474,000 1,310,756 3,175,785 5,327,098Deposits 24,000 48,000 30,000 35,000Debtors - 46,000 22,400 25,300Total Current assets 498,000 1,404,756 3,228,185 5,387,398

TOTAL ASSETS 1,000,000 1,706,356 3,469,465 5,580,422

Financed byLoan 300,000 214,491 115,237 -Family and friends 100,000 100,000 100,000 100,000Owner's equity 600,000 600,000 600,000 600,000Net profit(loss) 791,864 2,654,228 4,880,422TOTAL EQUITY 1,000,000 1,706,356 3,469,465 5,580,422

Table 5.6: Balance sheet

Source: Author (2015)

5.7 BREAK EVEN PROFIT

Gross profit in the first year (indicated in the profit and loss account is Kshs. 1,827,168

Gross profit margin= (1,827,168/2,400,000) 100= 76%

Total Overhead for the first year= Kshs. 895,563

Breakeven level of sales= (overhead expenses/gross profit margin) X100

=Kshs. (895,563/76) X100= Kshs. 1,176,329

5.8 PROFITABILITY RATIO

The proprietor projects the following profitability ratios for the business in the first three years of

operation.

The calculations are as follows:

Gross margin= (Gross profit/service revenue) X100

Return on equity= (Profit after tax /owner’s equity) X100

45

Page 46: bizness plan ayeeeee.docx

Table 5.8.Return on assets= (profit after tax add interest/investment) X100

Year Gross Profit Margin Return on equity Return on assets

2016 76% 46% 158%

2017 79.8% 54% 371%

2018 79.8% 40% 443%

5.9 DESIRED FINANCING

Table 5.9 desired financing

As at start up the business will require Kshs 1000000

Item Amount (Kshs.)

Pre-operational costs 693,000

Working capital 307,000

Total 1,000,000

5.10 PROPOSED CAPITALIZATION

The following table5.10 shows the financial contribution of the business:

SOURCE AMOUNT %

Evanson Njoroge (co-owner) 270000 21.5%

Rachael Njoroge (co-owner) 300000 23.9%

STIMA SACCO loan 440000 34.9%

Family and friends 250000 19.7%

Total capital investment 1,260,000 100

46

Page 47: bizness plan ayeeeee.docx

5.1.1 CRITICAL RISKS AND PROBLEMSThe proposed business might experience a number of risks and problems, which might hamper

operations from time to time. The risks include:

Water shortages: the continued drought and depletion of major forests in the country has led

to drying up of water towers. This has resulted in major water problems in the country. If this

situation goes zone, then the business will be at great risk of water shortages since in will

depend on water to provide hair relaxing services to its customers.

To avert this risk, the business will have a large water tank of about 1000 litres to store water

for use when the taps will dry up.

Power failures: the same water problem highlighted above has contributed to power

shortages since power generation id hydro-based. The business will depend on electricity to

blow-dry client’s hair and shortage of it will mean hating of business operations. The greatest

risk here is blackouts, which might occur in the process of treating client’s hair.

In response to this risk, the business will have in place a generator for use when power fails.

Occupational accidents: accidents at the work place such as fire due to electric fault can

occur without warning. The proprietor will ensure that all exit doors are easily reachable and

never locked for easier evacuation of the building in case of fire.

47

Page 48: bizness plan ayeeeee.docx

APPENDIX

LOAN REPAYMENT SCHEDULE

MonthBeginning

Bal (Kshs)

Monthly payment

(Kshs)

Interest (15%

p.a) (Kshs)

Principal

paid (Kshs)

Principal Bal

(Kshs)

1 300000 10399 3750 6649 293351

2 293351 10399 3667 6732 286619

3 286619 10399 3583 6816 279803

4 279803 10399 3498 6901 272901

5 272901 10399 3411 6988 265913

6 265913 10399 3324 7075 258838

7 258838 10399 3235 7164 251675

8 251675 10399 3146 7253 244422

9 244422 10399 3055 7344 237078

10 237078 10399 2963 7436 229643

11 229643 10399 2871 7528 222114

12 222114 10399 2776 7623 214491

13 214491 10399 2681 7718 206774

14 206774 10399 2585 7814 198959

15 198959 10399 2487 7912 191047

16 191047 10399 2388 8011 183036

17 183036 10399 2288 8111 174925

18 174925 10399 2187 8212 166713

19 166713 10399 2084 8315 158398

20 158398 10399 1980 8419 149979

21 149979 10399 1875 8524 141454

22 141454 10399 1768 8631 132824

23 132824 10399 1660 8739 124085

24 124085 10399 1551 8848 115237

25 115237 10399 1440 8959 106278

26 106278 10399 1328 9071 97208

48

Page 49: bizness plan ayeeeee.docx

MonthBeginning

Bal (Kshs)

Monthly payment

(Kshs)

Interest (15%

p.a) (Kshs)

Principal

paid (Kshs)

Principal Bal

(Kshs)

27 97208 10399 1215 9184 88024

28 88024 10399 1100 9299 78725

29 78725 10399 984 9415 69310

30 69310 10399 866 9533 59778

31 59778 10399 747 9652 50126

32 50126 10399 627 9772 40354

33 40354 10399 504 9895 30459

34 30459 10399 381 10018 20441

35 20441 10399 256 10143 10297

36 10297 10399 129 10270 0

49

Page 50: bizness plan ayeeeee.docx

REFERENCES

Doyle, P. 2002. Marketing management and strategy. 3rd. s.l. : Pearson Education Limited,

2002.

Henry, A. E. 2011.Understanding Strategic Management. 2nd. Oxford : OUP Oxford, 2011.

Hutt, M. D. & Speh, T. W. 1995.Business Marketing Management. California : Harcourt

College Publication, 1995.

Padgett, D. 1998. Qualitative Methods in Social Work Research: Challenges and Rewards.

London : SAGE Publications Ltd, 1998.

Ranjit, K. 2005. Research Methodology: A Step-by-Step Guide for Beginners.

2nd. London : SAGE Publications Ltd, 2005.

50

Page 51: bizness plan ayeeeee.docx

51