Summary of facilities and equipment

FACILITY DETAILS
Machine tools No. Capacity Cost per unit Total cost Suppliers/ source
and required required
equipment
Printer 2 2 20000 40000 Revlon plaza
Computer 4 4 25000 50000 Jumia offers
Laptop 2 2 15000 30000 Jumia offers
Totals 8 8 26000 26000
Furniture and
fittings
Tables 10 10 500 5000 Zaodon
Chairs 40 40 2000 80000 Bansi
Cupboard 5 5 3000 3000 Maroa
Partitions 4 4 2000 2000 Maroa
Total 59 59 7500 90000

4.2 PRODUCTION /OPERATIONAL STRATEGY

Smart Mother’s Fresh Juices will be supervised by the manager and the deputy who will provide
the cost.
Cost of materials per month

ITEM AMOUNT(KSH)
Printer 40000

Computer 50000

Laptop 30000

Chair 8000

Tables 5000

Cupboard 3000

Partitions 2000

Cost of labour per month

Personnel Amount(ksh)
Security officer 8000

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 Receptionist 30000
Asst manager 50000
Accountant 35000
Sales manager 25000
Store keeper 30000
Totals 178000

Overhead cost per month

Item Amount(ksh)
Electricity 500
Water 1000
Wifi 1500
Postage 600
Insurance 500
Rent 2000
Stationaires 800

Totals 6900

Total cost of production per month

Item Amount(ksh)
Materials cost 210000
Cost of labour 178000
Overhead cost 6900
Totals 394900

4.3 PRODUCTION/ OPERATIONAL PROCESS

Various procedures will be followed in ensuring the product or service gets to the final customer.
Steps of operation process from the time the customer makes and order to the point where the
customer pays for the product and leaves;
 Washing of the fruits
 Peeling and cutting of the fruits
 Blending of the fruits to juice
 Storing of the blended juice inside a refrigerator to keep cool
 Serving of the customer
 Preservation of the bill to the guests
 Taking out the bill paid by the guest

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4.4 REGULATIONS AFFECTING OPERATIONS
Some of the regulations affecting operation of the business are;

 High taxation rate by the government

 Lack of brand recognition
 Unstable place of location
 Poor transport and communication system
 Poor customer demand

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 CHAPTER FIVE
5.0 FINANCIAL PLAN
Financial planning is the key in an organization in that it ensures or determines if the company is
making profit or loss and for transparency and accountability.

5.1 PRE-OPERATIONAL COST

Pre-Operation cost includes; all the expenses incurred before the start of a business operation.

Item Cost
Rent deposit 5000
Installation cost 2000
Water deposit 2500
Electricity deposit 500
Food handler certificate 500
License 1000
Permits 3000
Machinery 15000
Labour 40000
Renovations 10000

TOTAL 58,500

5.2 WORKING CAPITAL

My capital estimation for working in the day today running of the business will be

Working capital=Assets-Liability e.g.

The table below show, working capital.

ITEM Year 1 Year 2 Year 3

Cash in hand 20000 30000 35000
Cash at Bank 10000 15000 20000
Stock of raw products 5000 5500 6000
Stock of finished 8000 9000 10000
goods
Debtors 500 700 1000
Stock of materials in 6000 7000 80000
progress
Total 49500 67200 80000

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5.3 PROPERTIES OF CASH FLOW PROJECTIONS
ITEMS JA FEB MAR APR MA JUN JUL AU SEP OCT NO DEC TOTA
N Y G T V
Opening 162, 157,8 149,5 170, 181, 212, 245, 300,0 375,7 436, 511,4 291,44
Cash 400 00 00 400 500 600 600 00 00 600 00
Bank 200, 200,00
Loan 000
Sale 80,0 72,5 80,50 100,5 120, 119, 150, 160, 165,5 160,0 168, 105,0 1,482,
00 00 0 00 400 600 000 000 00 00 000 00 0
Own 200, 200,00
Equity 000
Debtors 25,00 25,000
0
Total 480, 234, 238,3 250,0 290, 311, 362, 405, 466,4 535,7 604, 641,4 4,821,
Cash 000 900 00 00 800 100 600 600 00 00 600 00 0
Flow
Cash
Flow
Purchas 150, 18,5 30,00 20,00 40,0 20,0 52,0 45,0 30,00 40,00 35,0 20,00 500,50
es 000 00 0 0 00 00 00 00 0 0 00 0
Creditor 100, 2,00 20,0 120,00
s 000 0 00
Rent 2,00 2,00 2,000 2,000 2,00 2,00 2,00 2,00 2,000 2,000 2,00 2,000 24,000
0 0 0 0 0 0 0

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 Wages/ 49, 491, 491,0 491,0 491,0 491,0 491,0 491,0 491,0 491,0 491,0 491,0 58
Salaries 100 000 00 00 00 00 00 00 00 00 00 00 00
Telepho 2,0 1,20 1,500 2,000 1,500 500 800 1,000 2,000 1,000 500 2,000 16
ne 00 0 0
Electrici 8,0 2,50 2,000 2,000 2,100 1,900 1,000 2,000 2,000 1,500 1,400 2,000 22
ty 00 0 0
Advertis 5,0 5,000 10
ement 00 0
Insuranc 2,0 2,00 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24
e 00 0 0
Transpo 3,0 2,00 2,000 24,00 25,00 1,800 2,000 1,600 1,500 1,800 1,200 3,500 24
rtation 00 0 0 0 0
Loan 2,000 2,000 2,000 2,000 2,000 2,000 74
payment 0
Licenses 2,0 2,
00
Total 317 771, 88,80 79,60 99,30 98,50 117,0 104,7 90,70 99,10 93,20 83,30 1,
cash out ,60 000 0 0 0 0 00 00 0 0 0 0 ,9
flow 0
Net cash 162 157, 149,5 170,4 191,5 212,6 245,6 3,00, 375,7 436,6 511,4 558,1 3,
,40 800 00 00 00 00 00 900 00 00 00 00 ,5
0

5.4 PREPERATION OF PROFORMA INVOICE STATEMENTS AND BALANCE

SHEET
This shows profit or loss made by or business for a particular year.

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ITEM AMOUNT (KSHS)
Services 1,500,000
Less purchases 50,500
Total goods profit 981,500
Less expense
Rent 24,000
Salaries & wages 589,200
Telephone 16,000
Electricity 22,700
Advertisement & promotion 10,000
Stationery 2,100
Insurance 2,000
Transportation 24,100
Loan payment 14,000
License 200
Total cost of expenses 728,400
Net profit before 253,100
Less tax 8% 20,248
Net profit after tax 232,852

Balance Sheet

Profoma balance sheet for Smart Mother’s Fresh Juices Company

AS AT 30TH DEC 2025

Machinery 7,000
Building 24,000
Furniture &fitting 6,000
Motor vehicle 350,000
Total fixed assets 387,000
CURRENT ASSETS
Cash at hand 10,000
Cash at bank 50,000
Debtors 25,000
Stock 200,000
Total current Assets 373,500

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Total assets 658,500
CURRENT LIABILITIES
Creditors 100,000
Taxation 30,000
Total current liability 130,000
LONG TERM LIABILITIES.
Owner’s equity 200,000
Loan 200,000
Net profit 232,852
Total 632,852

5.5 CALCULATION OF BREAK-EVEN POINT

5.6.1 Variable Cost.

ITEM AMOUNT IN CASH

Electricity 22,700
Telephone 16,300
Transport 24,100
Advertisement 10,000
Stationary 2,100
Total 75,200
a) Contribution margin = sale – total variable cost
1,482,000-75,200 = 1,406,800
b) Percentage contribution margin = contribution ×100
Sales
1,406,800×100
1,482,000
=94.93%

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5.6.2 Fixed Cost for One Year.

ITEM AMOUNT (KSH)

Rent 24,000
License 2,000
Loan payment 14,000
Insurance 24,000
Salaries 49,100
Total 113,100.

Breaken level for sale.

Fixed cost× 100
Total contribution margin percentage
113,100×100
94.93
= 119,140.42.

5.6 DESIGNED FINANCING

For an effective business, there should be enough finance that is needed to facilitate the
operation.
The designed financing for the proposed business will be as follows.
ITEM AMOUNT IN KSH
Preparation cost 345,000
Fixed assets 257,852
Total 602,852

5.7 PROPOSED CAPITALIZATION.

Personal savings 300,000
Loan from equity bank 100,000
Donation from family 46,354
Amount obtained from credit 100,000
Total 546,354

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 BALANCE SHEET FOR

SMART MOTHER’S FRESH JUICES COMPANY AS AT 30TH DECEMBER 2026

ITEM AMOUNT

Machinery 200,000

Building 300,000

Furniture and fittings 70,000

Total mixed Asset `327,000

Current Asset 10,000

Cash at hand 50,000

Cash at Bank 25,000

Debtors ___________

Total 985,000 /=

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APPENDIX

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