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Business Name : DAJOPEN WASTE MANAGEMENT

Address : P.O BOX 3109 – 30200, KITALE

E-mail : [email protected]

Tel : Mobile Phone: 0727080225 / 0723860775

Organization : DAJOPEN WASTE MANAGEMENT

(Community Based Organization)

PRESENTED TO : Africa Innovation Foundation

DATE : 26th October, 2013

1

Cover Page………………………………………………………………………………Pg

Table of Contents...............................................................................................................(i)

Executive Summary…………………………………………………………………….(ii)

Statement of Purpose.......................................................................................................(iii)

Business Description...........................................................................................................5

Marketing Plan.....................................................................................................................7

Operational/ Production Plan.............................................................................................10

Risk Reduction Strategies..................................................................................................14

Exit and Harvest Strategies................................................................................................14

Organisation and Management..........................................................................................16

Financial Plan....................................................................................................................20

Appendices........................................................................................................................28

2

EXECUTIVE SUMMARY

Dajopen waste management CBO was formed by a group of 20 people, in the year 2007

as a self help group, but it was elevated to CBO status in the year 2009 to make organic

fertilizer from bio-degradable wastes emanating from household and slaughter houses

within Kitale municipality. Since it was formed it has successfully accomplished the

following tasks. Collected all the bio-degradable solid waste that were being dumped

along roadsides by household and converted them into organic fertilizer and other

products from inert materials. To date DWM has produced about 20 tonnes of organic

fertilizer distributed among members for demonstration purposes and for sale to generate

revenue. The business received mentorship from Kenya Agricultural Research institute,

Ministry of Labour, through department of small micro and medium enterprises, Ministry

of Agriculture, National Environment Management Authority (NEMA), Ministry of

Health, Department of public Health and Kitale Municipal Council. The business adheres

to law as per the statute.

The business provides employment opportunity both directly and indirectly to Kenyan

citizens. Offering intern training to students, from various institutions, who are seconded

for attachment to gain practical experience in Bio-Intensive Agriculture. The materials

are from slaughter houses, market dumping sites and maize Stover’s from farms around.

The company collects from hotels, eggshells, charcoal dust and ashes. After

decomposing, compost is taken for analysis to a government laboratory. After analyzing

that’s when it is packed in bags for sale. The packages consist of bags of 5kg, 10kgs,

25kgs and 50 kgs respectively. It is hoped that by getting support, DWM can help clean

the environment and generate renewable fertilizers for farming in Kenya on a larger

scale. It is envisioned that through this competition this goal shall be achieved not only

for income generation but also for environmental sanitation and employment creation.

For the business to break even and run sustainably it requires a capital investment of

Kshs 778500.00. It is hoped that through this competition DWM would be able to get

sponsorship and mentoring to help us realize our initial business objectives and future

plans.

3

STATEMENT OF PURPOSE

The purpose of our business plan is to make sure that urban waste management creates

employment through manufacturing products that are of highest quality to meet

international standards and be competitive in the market place as the company of choice

to our clientele, when compared with other firms’ products in the region while conserving

the environment.

4

BUSINESS DESCRIPTION

Business Location and Address: The business is located in Kitale Kibomet location,

P.O. Box 3109, Code 30200 Kitale.

Business ownership: Three people, who decided to recruit more 17 like-minded people

to make a total of twenty members, started the business idea. The business idea was

conceived in the year 2007 and started operations in 2009 on small scale.

Our main products are:

Organic fertilizers made from bio-degradable waste.

Bio-intensive liquid fertilizer (fermented plant extracts) made from weeds.

Biological insect repellents made from medicinal herbs and leaves.

Pillows,bags and mats made from low density plastics.

Roofing tiles, floor tiles and fencing post made from high density plastics

Necklaces and earrings made from old calendars.

Briquettes made from pulp papers and dry leaves

We also provide services in training farmer groups in compost making, mushrooms

growing and briquettes.

Industry: The industry falls under social or manufacturing sector that makes products

through recycling of waste, such as organic fertilizers, biological insect repellants and

fermenting plant extracts for top dressing.

Justification: The main aim to choose this business opportunity was to eradicate waste

from our towns and to make products, which will help to alleviate poverty both to the

rural and less privileged urbanites. The organizations’ concern is to alleviate poverty, also

targets street children involvement in the collection of wastes and being paid for the work

done leading to improvement of their lot in society. As part of corporate social

responsibility DWM believes that with clean environments, diseases and other problems

related to urban waste accumulation and pollution can be turned into money minting

enterprises for the youth and lead to worthwhile employment creation. Urban waste is not

waste but a looming opportunity for industrialization towards the vision 2030.

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Goal: The short-term goal was to educate the community on the usefulness of using

urban wastes into worthwhile recycled products that can be economically viable business

engagements especially in the mushrooming slums in the urban centers. Our long term

goal in the business was to see that it’s a going growing concern that would turn urban

wastes into raw materials for recycled products that are user friendly and environmentally

sustainable with high potential for creating urban employment and economic growth

towards the vision 2030.

Entry and growth: The entry to the organic production is a great challenge to chemical

fertilizer multi national companies (MNC), because it does not have side effects to soil

nor to any fauna or flora. Our growth strategy will mainly depend on the acceptability by

the consumers (farmers) of organic products that are environmentally sound, as well as

help in the reduction of green house gas emissions using locally appropriate

manufacturing technologies. The farmers are our prime entry point and with increasing

chemical fertilizer costs, our quality organic fertilizers are expected to receive increasing

demand from the farming communities in the country leading to increased growth and

expansion with worthwhile investment in this venture.

6

MARKETING PLAN

Highlight on Our marketing plans to market the products and services:-

This is normally done through organizing field days, posters and facilitating farmers’

workshops and planting demonstration plots at the farmers’ farms and agricultural shows

i. Our potential customers:-

Grain growers

Livestock farmers

Horticulture crop growers

Cash crop farmers

All farmers in Western and the North Rift Region of Kenya

ii. Competition:

Main competitors: Our major competitors are the chemical fertilizer

companies.

Their strength: They have money to produce more fertilizer since they have

been in business since time immemorial.

Their weakness: since the Western Nations, started refusing food imported

from Africa grown chemically, and those industries are based there, it put a

great query to Africa consumers on how safe are the chemicals both to man

and soil. There has been a great cry, from the farming communities, due to the

depletion of soil by chemicals. In fact people are now going organic so that

they may change the soil from disease inducing to disease suppressing soil.

How the industry intends to capitalize on the weaknesses: The use of these

chemicals would help us capitalize on this, the effects and death caused

through consumption of food grown by these chemicals. Disease like cancer,

diabetes early death were once an omen to African People but now even some

of the children of five years are suffering from obesity with these and many

other factors we shall be able to market our product smoothly. Also the

qualities of the products are of the highest standard whereby they are free

from pathogens. Anyway five grams of organic fertilizer has more than 6six

7

billion microbial lives, which changes the soil from disease inducing soil to

disease suppressing soil.

Market share: Currently our market share in the North rift region is less than 30%,

however we expect to reach 50% of the farming population in the North Rift and 20% in

Western Kenya over the next three years.

Pricing strategy: We always calculate our production costs and the members meet to

put a minimal profit to attract customers of about 12.5% that meets most of the planned

and projected goals of the business taking into account inflationary trends in Kenya.

Advertising and promotion strategy:

Initial plan: Generallythe products attract our customers by producing the best at a

reduced cost. We also offer free samples to farmers who market the company

products, especially those with farms along the road. As farmers are our potential

customers and all our members practice farming as a business we have a greater

potential/chance of selling our products. The problem of high cost of farm inputs as a

result of increased cost of inorganic fertilizer will be solved through use and

application of Bio-intensive organic fertilizer by farmers in their farms. Organic

fertilizer have longer life span with continuous supply of both macro and micro

nutrients to the crops for a minimum period of three years once used in the farm

further more organic material adds soil moisture, which enables the plant to thrive

during the period of drought.

Long-term strategy: The business plans to buy modern equipment for transforming

the organic fertilizers from dust form to granules so that it reaches the required

international standards.However, with bulk production and effective promotional

activities through Farmers events (Field days, workshops, ASK shows and

advertisements through trade fairs) we expect to have a better market share in future.

The long - term strategy is to incorporate a better sales strategy by capacity building

our members and staffs on proper marketing strategies and maximization of profit

margins on our products.

Distribution strategy: The plan is to deal directly with agricultural farm inputs

stockists and dealers in the North rift and western Kenya. They must have

competence in explaining product usage and knowledge on appropriate agronomic

8

practices for farmers. These distributors will be sponsored to a training event at

DWM demonstration center, before certifying them as DWM products distributors.

Posters will also be developed at different distribution points explaining the various

products available, their usage and benefits as well as potential yield production when

used on various crops. The marketers of DWM products shall also be provided with a

distinct distribution badge for identification to avoid masquerading quacks in the

market place. Other places to distribute the products from will be ministry of

agriculture offices in the different centers, through line ministry extension staffs.

Agricultural ASK shows will also be other avenues for distribution. Farmers who will

be organized as producer groups would also be used as distributors after a thorough

training on the ways of application and usage.

Sales Tactics:The approach will depend on the type of clientele. Small scale farmers can

be reached through packaging the products in small affordable quantities. For large scale

farmers the packaging will be in large concessions at discounted rates. Farmers would be

mobilized and trained in the use of our products and through these many customers and

potential customers would be reached. The Company also intents to establish distribution

centers in various marketing centers closer to the people through commission selling by

established agro-input dealers in the region. Our sales agents would also undergo training

in proper use of our products and set up demonstration sites in the farmers’ field for

farmer learning and field days. The use of telephone, farm visits and road side demos

would also be used to reach out to potential customers.

Any other tactic:The Company will establish a go-down in Kitale for storage and

reaching out to potential distributors or hire a place from NCPB silos for warehousing our

products before distribution.

9

OPERATIONAL AND PRODUCTION PLAN

The industry operates the business as per the law of Kenya requires.

It is a registered company in Kenya involved in waste management and recycled products

manufacturing. The doors are open for the government inspectorate officers. The

company has a site where its manufacturing activities and a demonstration field are

exhibited. The staffs are always available at the site for anyone interested on the products.

Production facilities and capacity utilization

The machines required are:

Granulating machine for making the organic fertilizer in granules.

Electrical stitching machine for stitching the bags of organic fertilizer

Electrical sieving machine for sieving the waste material from the organic

fertilizer.

Weighing machine

Transport

Lorry for supplying the organic products to out let distribution.

Tractor with a tipping trailer. For transporting waste from dumping site. When

off-loading the trailer will not require labour.

An extruder machine for recycling plastics.

The tools required by the business are:

Rakes, forked Jembes, hoes, gloves, masks, dust coats, overalls, gumboots and slashers.

Packaging materials

Organic Fertilizer Packaging Material

10

Polythene bags of 50kg, 25kg, 10kg and 5kg printed with firm’s logo, that counterfeit

will not occur.

Size Quality Cost @ Unit Total(Kshs)

50kg 5000bags 50.00 250000

25kg 2,000 bags 40.00 80000

10kg 3,000 bags 35.00 10500

5kg 4,000 bags 25.00 100000

Total 540000

11

The Equipments and machines that will be used for our Enterprise Project

Equipment/Machine Units Estimated Cost (Kshs) Total (Kshs)

Granulating Machine 1 1,500,000 1,500,000

Electrical Stitching Machine 2 23,000 46,000

Electrical Sieving Machine 2 65,000 130,000

Auto Weighing Machine 1 3,000,000 3,000,000

10 Ton Lorry 1 11,000,000 11,000,000

4 W D Tractor 1 4,300,000 4, 300,000

Tipping Trailers 1 650,000 650,000

Extruder Machine 1 2,200,000 2,200,000

Cernnin Composting machine 1 3,000,000 3,000,000

Plastic Tanks 1,000 w cep 2 11,000 22,000

Garden Rakes 10 250 2,500

Folk Jembes 12 1,200 14,400

Hoes 12 350 4,200

Leather Gloves 12 539 6,468

Dust Coats 50 1,050 52,500

Overalls 30 1350 40,500

Gumboots 40 960 38,400

Pangas 12 250 3,000

Slashes 10 200 2,000

Sub-total (Kshs) 26,011,968

Packaging Materials 540, 000

Grand Total (Kshs) 26, 551, 968

Production Strategy:

Material requirements: (month/year).

Markets waste from the market dumping site, to be collected after every two days

both main market and sokomjinga. We collect7 tones per day x 22 days

Egg shells and Ash to be collected at all hotels where we supply our litters and

there’s a litter (bin) for egg shells and one for ash.

Charcoal dust from charcoal stores (we buy each sack @ 100 per bag.

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Slurry from slaughter houses (private one) and we buy 2,600 per trailer of seven

tonnes

Mijingu rock phosphate we buy from Kenya farmers Association at 2000/= per

50kg bag.

Molasses 490 per 30kg Jerricanagrovet.

We ferment our own micro-organism and we mix with molasses to enhance the

decomposing.

Polythene sheet black in colour 1 roll 6,570/= from hardware shops.

Green matters (Tithonia in particular) we get them free, but the costs of transport

depend on the distance. We trim fences along the roads.

Water is transported by bicycles and donkeys, for water transport, from shallow

water well.

Dry matters we get from farms e.g. maize Stover’s, bean haulms wheatstraw and

dry grass and the cost depend on the distance.

Production Design and Development

The company makes organic fertilizer through decomposition. After arranging our

waste in layers and sprinkling the effective micro-organisms, then cover it so that it

may not loose the nutrients from scourging sun especially nitrogen and leaching of

other elements from the rain water.

It requires about 778,500.00

What is your estimated cost of production/service

Direct materials cost + direct labour cost + over heads.

Kshs (228 500+ 450000 + 100000) = Kshs 778,500.00.

Relevant Regulation

The patent and trademark required are;

Our trade mark name is Dajopen Waste Management and would like to patent our

products

It cost about Kshs 500,000 to obtaining the patent and trademark

Legal rights would involve having a company lawyer to deal with matters related to

Dajopen incase of litigation and be able to supply our products nationwide, with

13

heavy penalties leveled against those who masquerade as Dajopen distributors

without our permission.

Risk Reduction Strategies

Future business risks: We will reduce future business risks by patenting of our

products and by abiding with the law of the land. Insurance will also be sought to

avoid losses due to accidents and fires. In addition we would ensure that our

products pass through quality control mechanisms that are standardized and

should be certified by Kenya bureau of standards for quality. A risk management

strategy would be put in place and continuously developed as the company grows

and expands.

Counteract mechanisms: To ensure that all these are met and to avoid any

loopholes from occurring strict standards and supervision in the production line

will be instituted and regularly monitored by the management. Product innovation

and continuous improvement will be incorporated as a company policy.

Exit and Harvest Strategies

Management buys out: The business would be capitalized on the basis of

shareholding. Each director in the company would receive dividends based on

share capital. As such the best strategy is management will buy out the business.

Advantages of using strategy: It is feasible; the interested parties are involved, it

is easier to grow vertically from within.

14

Financial Manager

Managing Director (MD)

Production Manager

Human Resource Manager

Sales Manager

Accountant

Ass/Accountant

Sales PersonsASP Bio ASP

(Waste)

S/P S/P

Skilled workers

Skilled workers

Unskilled workersUnskilled workers

ORGANISATION AND MANAGEMENT

Organization Structure

Ass

Management Team

Business management team consists of members, Managing Director, Financial manager

and production manager. The business has collaborators from government institution and

private sector. The managing director is to be chairing the company’s meeting. The

director is the chief executive officer and oversees all organizational day to day functions

and operations and reports to the board of directors. The financial manager is to account

for money either cash out or cash in and keep the record. He’s also answerable to

members on how the finance has been used, the profit and the dividends each member

will get during the end of year. The production manager is in charge of all production. All

questions pertaining to products effectiveness is his responsibility The collaborators assist

us technically, marketing research and analyzing. We work hand in hand with our

collaborators who are also our mentors

16

We acknowledge the assistance given to our organic industry by the following and their

institutions:

Dr. Dominic Sikuku – Moi University

Dr. Francisca Lusweti – K.A.R.I (KITALE)

Dr. John Lekasi – K.A.R.I (MUGUGA)

Mr. JosephatLing’ang’a – (District Agricultural Officer) - T/N West

Mr. Thomas K. Kwambai (K.A.R.I) Kitale

Mr. Joshua Amwai -Common Ground (Kiminini)

Mr. Isaac Mitei (Disrtict Environment Officer) - T/Nzoia.

Mr. Godfrey S. Wekesa (Director of Environment) Kitale Municipal Council)

Mr Henry Ndede-Country Director (LifeNet East Africa).

Mrs. Linnet Nyakiti-Ministry of Housing (PHO-North Rift).

Dr. Margaret Mulaa-KARI(Kitale).

Ms Ingrid Wekesa-Kenya Industrial Research Development Institute.

Mr. KenethRutto-Ministry of Labour(District enterprise officer)

Other Personnel

We require a site manager, who will manage all work carried out at our site. A business

consultant will be required to transact the business across the border.

Recruitment and staff training

The staffs are recruited after first advertising the vacant positions in local dailies, short

listed candidates are called for interviews and people are recruited after the interviews

based on merit and competence. A staff policy on capacity building for staff development

is part and parcel of our institutional strategic plan to continue being updated on current

issues in their areas of specialty.

Remuneration of staffs

Staffs would be remunerated based on qualifications, experience and merit as well as

going in line with the established staff policy manual. Staff s would be developed through

training them by taking them to appropriate learning institutions. We also have training

opportunities within our industry. These trainings will also account to better terms of

remuneration for the target staffs.

Remuneration and Incentives

Salary and wages – These will be from the business revenues and returns

Fringe benefits – House allowance, gratuity, NHIF and NSSF payments

17

The following packages will be awarded to the staff:

Staff Salary/wages

Kshs

Fringe

Benefits

Numbers Remarks

Managing Director 10000per

month

10,000/= per

meeting held

1 To hold meeting

monthly

Finance Manager 45,000/= per

month

Medical cover

leave allowance

1

Accountant 25,000/= per

month

Medical cover

leave allowance

1

Ass Accountant 21,000/= per

month

Medical cover

leave allowance

4

Salesman 18,000/= per

month

Medical cover

leave allowance

4

Production Manager 40,000/= per

month

Medical cover

leave allowance

1

Ass Production

Manager

30,000/= per

month

Medical cover

leave allowance

2

Supervisors 18,000/= per

month

Medical cover

leave allowance

2

Skilled 12,000/= per

month

- 4

Unskilled 350/= per day - 30

Support services:-

The company would like to be supported to enter into medium scale

production to achieve economies of scale to achieve competitive pricing

through reduced production costs.

In addition we need to be supported through advertisement and promotion

of our products. All these require financing to reach farmers with our

products and acquisition of capital equipments for mass production.

We would also request for consultancies from business

advicers,banks,insurances,security ,accounting/auditing and legal from the

18

appropriate service providers in order to stay afloat with current

developments.

Licenses/permits

Required Licenses and permits

Trade License

Municipal licenses

Kenya bureau of Standards

KEPHIS

KARI

National Agricultural Laboratories

National Environmental Management Authority

The licenses are usually provided by the councils, Kenya Bureau of standards also issue

permits after verifying and scrutinizing your products. The Kenya agricultural research

institute and Kenya plant health inspectorate services do the analysis. But with liquid

fertilizer analysis is by the National Agricultural Laboratories (NAL) in Nairobi.

Licenses/Permits Cost(Kshs) Source

Municipal Council 15,000 Kitale Municipal Council

Trade 10,000 Ministry of Trade

Total 25,000

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FINANCIAL PLAN

ITEM COST(Kshs)

Pre-operational costs 228 500

Registration 1500

Site Lease 20000

Licenses and permits 25000

Machines and equipments 120000

Materials 50000

Canvas 12000

Proposed Capitalization

Own Contribution 450000

Funds from Borrowing sourcess 100000

Total Investments 550000

Working Capital Requirements

The working capital requirements 778500

20

Proforma Income StatementFor Year 1 2010

Category Details Amount

(Kshs)

Incomes

Fertilizer sales 2000 bags @Kshs800 1,600,000

Liquid fertilizer 6000 Liters @ Kshs 100 600,000

Insect repellents 5000liters@Kshs100 500,000

Total Incomes 2,700,000

Expenses

Materials and transport Kshs70000 X 12 Months 840,000

Labour Kshs30000 X 12 months 360,000

Site Lease/Rent 20,000

Management costs/personel Kshs 50000 X 12 months 600, 000

Miscellaneous

expenses/Contingencies

Kshs 10000 X 12 Months 120,000

Total Expemses 1,940,000

Net Profit/Loss Total Incomes – Total

Expenses

760,000

21

Proforma Income Statement For Year 2 2011


(Kshs)

Incomes





Expenses

Materials and transport Kshs100000 X 12 Months 1,200,000




Miscellaneous


Kshs 10000 X 12 Months 120,000

Total Expemses 2480,000


Expenses

1,070,000

22

Proforma Income Statement For Year 3 2012


(Kshs)

Incomes





Expenses

Materials and transport Kshs120000 X 12 Months 1,440,000




Miscellaneous


Kshs 30000 X 12 Months 360,000

Total Expenses 3,270,000


Expenses

1230,000

23

PROFORMA BALANCE SHEET

Year 1 2012

Assets Kshs

Fertilizers and insect repellants stocks sales 2,700,000

Machines and equipments 120,000

Total assets 2,820,000

Liabilities

Machines & Operational expenses 1,840,000

Bank Loan 100, 000

Net worth 880,000

Total liabilities + Net worth 2,820,000

Year 1&2 2012- 2013

Assets Kshs

Fertilizers and insect repellants stocks sales 6250,000

Machines and equipments 120,000

Total assets 6,370,000

Liabilities

Operational expenses 4,420,000

Net worth 1,950,000

Total liabilities + Net worth 6,370,000

24

CASH FLOW CHARTS OF DAJOPEN WASTE MANAGEMENT.

Cash Flow Projection

Year 1Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yearly

Totals

(Kshs)

Receipts

Sales

Fertilizer sales 48000 52000 60000 80000 100000 120000 140000 160000 180000 200000 220000 240000 1,600,000

Liquid

fertilizer

5000 15000 20000 25000 35000 45000 55000 60000 70000 80000 90000 100000 600,000

Insect

repellents

10000 15000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 500,000

Loans (bank) 100000 _ _ _ _ _ _ _ _ _ _ _ 100000

Other Receipts 50000 _ _ _ _ _ _ _ _ _ _ _ 50000

Total Receipts 213,000 82,000 105,000 135,000 170,000 205,00

0

240,000 270,000 305,000 340,000 375,000 410,000 2,850,000

Payments

Variable

production

costs

(including

machinery)

153333 15333

3

153333 153333 153333 153333 153333 153333 153333 153333 153333 153333 1,840,000

Interests 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18,000

Others

Miscellaneous

10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120,000

Total

Payments

164833 16483

3

164833 164833 164833 164833 164833 164833 164833 164833 164833 164833 1,977,996

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Net cash flow 48167 -82833 -59833 -29833 5167 40167 75167 105167 140167 175167 210167 245167 872,004

Loan

repayment

_ _ _ _ _ 19667 19667 19667 19667 19667 19667 19667 118000

Bank balance

at end of

period

(credit/Debit)

+48167 -82833 -59833 -29833 +5167 +40167 +75167 +105167 +140167 +175167 +210167 +245167 +754004

26

Cash Flow for the next two years

1st

Quarte

r

2nd

quarter

3rd

quarter

4th Quarter Year 2

Totals

1st Quarter 2nd

quarter

3rd quarter 4th Quarter Year 3 totals

Receipts

C/F from year 1 754004 754004 1604004 1604004

Sales

Fertilizer sales 200000 400000 600000 1200000 2400000 800000 800000 800000 800000 3200000

Liquid fertilizer 100000 150000 200000 200000 650000 175000 175000 175000 175000 700000

Insect repellents 50000 150000 150000 150000 500000 150000 150000 150000 150000 600000

Total Receipts (A)

(Kshs)

110400

4

700000 950000 1550000 4304004 2729004 1125000 1125000 1125000 5404004

Payments

Variable production

costs (including

machinery)

585000 585000 585000 585000 2340000 540000 540000 540000 540000 2160000

Others

(Miscellaneous)

90000 90000 90000 90000 360000 90000 90000 90000 90000 360000

Total Payments (B)

Kshs

675000 675000 675000 675000 2700000 630000 630000 630000 630000 2520000

Net cash flow (A –

B)

429004 25000 275000 875000 1604004 2099004 495000 495000 495000 2884004

Bank balance at

end of period

(credit/Debit)

429004 25000 275000 875000 1604004 2099004 495000 495000 495000 2884004

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Desired Finance

The business is expected to be financed from personal contributions and assistance from well-wishers and Bank Loans

Capitalization: Initial capitalization for existing business is Ksh 778, 500

Proposed Capitalization is Ksh 23, 551, 968/=

Break Even Point: First year may at the following production levels 100000 Kgs solid organic fertilizer, 35000 liters of liquid

fertilizer and 35000 liters insect repellents, where by the Total costs = Total Revenue

Profitability Rations

This will be done on the basis of return to capital (Equity) = Annual Profit after interest and tax X 100

Capital

i.e.

Resources Owned (Assets) – Money owed (Liabilities) X 100

Resources owned (Assets)

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