BUSINESS NAME : MEAT LOVERS RESTAURANT

BUSINESS LOGO :
BUSINESS ADDRESS : P.O BOX 3466 NAIROBI
TELEPHONE NO : 0792879266
EMAIL : meatlovers@gmail.com
PRESENTED BY : MILLICENT AMIMO
ADMISSION NO : 35579
INDEX NO :
SUPERVISED BY : NAIROBI TECHNICAL TRAINING
INSTITUTE
PRESENTED TO : KENYA NATIONAL EXAMINATIONS
AS A REQUIREMENT FOR AWARD
OF DIPLOMA IN APPLIED BIOLOGY

DATE TO PRESENT : JULY/AUGUST 2024

DECLARATION
Declaration by candidate,
I declare that this business plan is my original work and has not been submitted to any college or
an examination body for the academic award
Name :Millicent Amimo
Admission number : 35579
Index number :
Date :
Signature. :

Declaration by the supervisor,

I declare the business plan forwarded to the Kenya National Examination by Council with my
approval as the supervisor of the institute
Name :
Signature :

1
DEDICATION
This business plan is dedicated to the to my family who have been of great support both
financially and emotionally through out the writing of the business plan.l also would like to
thank God for giving me the gift of life and good health,which has enabled me to to persue my
endeavors.

2
ACKNOWLEDGEMENT
I sincerely thank NAIROBI TECHNICAL TRAINING INSTITUTE for providing me with the
necessary facilities that played a big role enabling me to come up with this business plan.l also
appreciate the fact that the environment was favourable for learning.Special thanks to my
supervisor Madam Norah Morara for the assistance she provided as well as the guidance in
putting up the business plan.

3
CONTENTS
Declaration…………………………………………………………1
Dedication…………………………………………………………..2
Acknowledgement…………………………………………………3
Executive summary………………………………………………..5
CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 BUSINESS NAME…………………………………………….6
1.2 TYPE OF BUSINESS…………………………….…..………6
1.3 CHOICE OF BUSINESS LOCATION……………....……….6
1.4 PROPOSED FORM OF OWNERSHIP……………..………6
1.5 GROUNDS OF THE PROPOSED BUSINESS……..….…..7
1.6 SERVICES OFFERED. ………………………………………7
1.7 INDUSTRY …………………………………………………….7
1.8 ENTRY & GROWTH…………………………………………..8
1.9 BUSINESS GOAL……………………………………………..9
CHAPTER TWO
2.0 MARKETING PLAN
2.1 Description of potential customer individual……………..…10
2.2 Market size……………………………………………………..10
2.3 Competition……………………………………………………..10
2.4 Pricing strategy…………………………………………………11
2.5 Sales tactics…………………………………………………….12
2.6 Advertising& Promotion………………………………………..12

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EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The business will operate under the name Meat Lovers Restaurant which will be located in Moi
Avenue in Nairobi.It will operate as a partnership type of ownership The main activities of the
business will be selling different food cuisines prepared by our well trained chefs.The proposed
business address is P.O BOX 3466 Nairobi.
2.0 MARKETING PLAN
Marketing of the business will include our potential customers around the CBD.The business is
going to face one major competitor Pronto restaurant along Agha Khan walk.The business has
set strategies on how to cope with the competitor.
3.0 ORGANIZATIONAL AND MANAGEMENT PLAN

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CHAPTER ONE
1.0 BUSINESS DESCRIPTION
In this chapter l've described how l came up with the business name,type of business,choice of
business location,type of ownership,ground for the proposed business, services offered as well as
entry strategy plus the business goals.
1.1 BUSINESS NAME
The suggested business name will operate in the name of Meat Lovers Restaurant.l chose this
name because my business will be serving our customers with different food cuisines.

1.2 TYPE OF BUSINESS

The proposed business is categorized under the hotel industry.We will be preparing different
food cuisines.Meals will be prepared upon the clients making their order.There will also be
provision for those who would like to carry their meals out of the restaurant.

1.3 CHOICE OF BUSINESS LOCATION

The business will be located along the Moi Avenue in Nairobi city opposite Quick mart
supermarket.The reasons for chosing this location are
● Proximity to the civil servants working for different ministries in the CBD
● There are very few restaurants around the CBD thus offering a highly profitable business
● Being located in the CBD l am guaranteed of security

1.4 PROPOSED FORM OF OWNERSHIP

The business will run under sole proprietorship form of ownership because of the following
reasons;
● Decision making process is faster
● Easier to establish and operationalize the business
The business requires a start up capital of Ksh 850,000 in which the three of us will each
contribute Ksh 290,000
1.5 GROUNDS FOR THE PROPOSED BUSINESS

6
Reasons for opening this business includes
● High demand due to the high number of businessmen and civil servants in the CBD
● Adequate security within the CBD
● Restaurants within the CBD sell food staff relatively expensive contrary to what we will
be offering
The business intends to employ youths who have expertise in the field of hospitality.

1.6 SERVICES OFFERED

Meat Lovers Restaurant will be offering a variety of African cuisines such as
● Fish & ugali
● Beef & rice
● Omena & ugali
We will also provide a platform where clients can order meals and we deliver to them in their
places of work for those within the CBD
The services of Meat Lovers Restaurant will be unique in that
● Meals are prepared only after a client has made an order
● Meals are served hot
● High level of professionalism
● High level of cleanliness
1.7 INDUSTRY
Meat Lovers restaurant falls under the food industry which is a rapidly growing industry with a
lot of potential.Some of the key characteristics of the industry includes;
● Regulations are strict to ensure consumer's safety
● There is technological development in the industry thus incorporating the same is key in
being a key player in the industry

1.8ENTRY & GROWTH

1.8.1 Entry strategy

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 ● Obtaining required documentation for legal operation of the business eg business permit
and license
● Arranging the rented place and installation of various amenities such as CCTVs
● Grand opening ceremony that will attract masses creating mass awareness
● Putting up posters around town for marketing purposes

1.8.2 Growth Strategy

The growth of the business is dependent on the way we relate with our customers.We therefore
ought to exhibit professionalism in all our services.Some of the key things to take into
consideration include
● Customer care
● Cleanliness
● Punctuality

We also plan to work with manufacturers especially those in the food industry so that we can
obtain the resources needed directly from them which will be of mutual benefit to both parties.

1.9 BUSINESS GOAL

1.9.1Short term goals
● Provide exemplary and professional services

8
 ● Satisfaction of our customers needs

1.9.2 Long term goals

● Expanding our market share by 15% by opening more branches within Nairobi
● Become a market leader in the hospitality industry by becoming a dominant player in our
niche.
● Financial stability and resilience by building financial reserves and mitigating risks to
ensure long term stability and resilience
● Coping with market demands as we grow in business
● Employ more youths thus creating job opportunities

CHAPTER TWO
2.0 MARKETING PLAN

9
Under the marketing plan l've discussed my potential customers,the market size, potential
competitor, advertising and promotion strategy,sales tactics and the distribution strategy.
2.1 Customers
The clients that we target are the civil servants and businessmen around the CBD.The cuisines
that are sold will be very affordable for the middle income earners.
2.1.1 Description of potential customers
The customers we will be targeting are those in all age brackets because the restaurants will be
selling traditional foods or the common meals which is loved by people who are a little bit older
as well as modern cuisine which is liked by most of the younger generation.According to a
survey carried out it showed that clients around the CBD like easy meals during the week
because of short lunch breaks they're given.
2.1.2 Market size
Meat Lovers restaurant is among the growing businesses in the hospitality industry.The Total
addressable market for my services would be around 600 people who work around the CBD.The
industry is growing very fast making it a suitable time to jump in and start this business.l project
to take around 15% of the market share in the first five months of the business
2.2 COMPETITION
It is crucial for understanding the market landscape, identify opportunities and develop strategies
to differentiate our restaurant from the rest.
2.2.1 Analysis of potential competitors
There is one major competitor which is the Pronto Restaurant located along the Agha Khan
walk.It is approximately 250 m from Meat Lovers restaurant.In terms of our location,l believe
we are strategically located.
2.2.2 Size of competitor in relation to the proposed business
In relation to Meat Lovers restaurant,l posses a larger size compared to my competitors.l can
accommodate 170 customers at a go while they can accommodate 110 at maximum.Our
customer retention rate will be high due to our well trained customers service.

2.2.3 Comparison of the proposed products to those of my potential competitor

In terms of quality we plan to use premium ingredients in making of our dishes in contrary to the
locally sourced ingredients used by our competitors.Meat Lovers Restaurant will be offering a

10
variety of range options in our menu as compared to our potential competitor.We plan to have
our own signature dishes that will distinguish Meat Lovers Restaurant from our potential
competitor.
2.2.4 Description of the overall strengths and weaknesses of potential customers
Strengths
● Customers with higher disposable income can afford to spend more on dining experience
● Customers who value loyalty may become repeat patrons providing a stable customer
base and opportunities for loyalty programs and promotion to enhance retention.
● Customers passionate about food may appreciate unique flavors, innovative dishes and
culinary experiences,allowing us to showcase our creativity and expertise
Weaknesses
● Customers who are unaware of our restaurant and it's offerings may not consider it as an
option when dining out requiring pro active marketing efforts to increase visibility and
attract more customers
● Customers with limited disposable income or constraints may be unable to afford higher -
priced menu items necessitating affordable options to appeal to their needs.
2.3 PRICING STRATEGY
Competitive pricing which is based on researching how our competitors and then adjusting them
accordingly to remain competitive.Menu engineering where l strategically design the menu
layout and description to influence customers choices and promote higher margin items.
Penetration pricing will also be important in that l place my prices relatively low to my
competitors in order to gain the market share.Overtime, prices can gradually be increased as the
restaurant builds a loyal customer base.
2.4 SALES TACTICS
● Happy hour and daily specials,creation of special pricing or deals during off- peak hours
to attract customers during slower times and increase overall sales volume
● Customer referall program,this is where there will be rewards for customers for referring
friends and family by offering discounts, freebies or other incentives for each referral
● Soliciting feedback from our customers through surveys, comment cards or online
reviews and use this information to make improvements and tailor offerings to customers
preferences.

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2.5 ADVERTISEMENT & PROMOTION STRATEGY
2.5.1 Advertising strategy
This will be done by partnering with local influencers,food bloggers or social media personalities
to help amplify our reach and credibility.Another important strategy is leveraging social media
platforms such as Facebook,X, TikTok and Instagram to showcase menu items,share behind the
scenes content,engage with followers and generate a buzz among our target audience.
2.5.2 Promotion strategy
● Running contests,sweeptakes or giveaways on social media platforms or instore to
engage with customers,increase brand awareness and participation
● Participation in community events,sponsor local sport teams or host fundraisers to build
goodwill, strengthen community ties and increase brand visibility
● Introduction of limited- time menu items so as to create a sense of urgency and
encouraging customers to try new offerings or visit during specific time periods
● Collaborating with local businesses,event organizers or influencers to co-host
events,cross promote each other's businesses or offer joint promotions to expand reach
and attract new customers
● Offering special perks or discounts for customers celebrating birthdays, anniversaries or
other milestones to encourage repeat visits and loyalty

2.6 Distribution strategy

Primarily as a business we plan to focus on location of the physical establishment as well as
other additional channels that we may use to reach our customers.
We plan to explore opportunities to participate in food festivals, community events and other pop
up venues to introduce our cuisines to new audiences
Additionally,we plan to offer online delivery through our website or third party delivery
platforms to reach customers who prefer convenience of delivery or takeout.

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CHAPTER THREE
3.0 ORGANIZATIONAL AND MANAGEMENT PLAN
The organizational and management plan outlines the structure of the restaurant’s management
team,roles and responsibilities and key operational processes.
OWNER/PROPRIETOR
The individual who owns and oversees the operations of the business
Duties
● Strategic planning
● Operations oversight
● Marketing and promotion
● Compliance and regulation
GENERAL MANAGER
Responsible for overall operations including staffing, budgeting and customer satisfaction
Duties
● Overall operations management
● Customer service
● Menu development

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 ● Communication and leadership
● Staff management
DEPARTMENTAL MANAGERS
It entails
Front house manager : oversees hosts,servers and other front of house staff
Duties
● Order management
● Managing front office staff

Back house manager: manages kitchen staff including chefs,cooks and dishwashers
Duties
● Kitchen operations management
● Quality control
● Food safety and sanitation
● Health and safety training
HEAD CHEF
Leader in the kitchen
Duties
● Menu planning and development
● Recipe development
● Kitchen management
● Food preparation
ASSISTANT MANAGER/SUPERVISOR
Support the general manager and the departmental managers in their respective ares
Duties
● Staff supervision
● Inventory management
● Acting as liaison between management,staff and customers
● Scheduling of shifts for front and back house staff

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Table 3.1 Remuneration of management team

Function Renumeration Benefits

Proprietor KSH 300,000 House allowance, transport

allowance,I surance cover

General manager KSH 270,000 house allowance, transport

allowance, airtime,health
insurance

Dept managers KSH 230,000 house allowance, transport

allowance, airtime,health
insurance cover

Head chef KSH 200,000 house allowance, transport

allowance, health insurance

Supervisor KSH 180,000 House allowance, transport

allowance, airtime,health
insurance

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3.1.1 Management team
Operations manager
Duties and responsibilities
● Overall operations oversight
● Staff management
● Equipment maintenance
● Workflow management
Qualifications
He/She should be 26 years and above
Atleast 2 years experience in relevant field
Hold a diploma in Food technology
Have good communication skills
Human resource manager
Duties& Responsibilities
● Recruitment and selection
● Onboarding and orientation
● Training and development
● Patlyroll admistration
● Employ engagement
Qualifications
● At least be of 25 years and above
● Hold a BSC in human resource management or business administration
● Problem solving skills
● Communication skills
● Computer skills
Finance officer
Duties& responsibilities
● Financial planning and analysis
● Cash management
● Financial risk management
● Financial reporting

16
Qualifications
● Hold a BSC in finance, accounts and economics
● At least 3 years of working experience
● Financial analysis skills
● Financial software proficiency

3.2 ORGANIZATIONAL STRUCTURE

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3.3 Other Personnels
Qualifications and responsibilities of delivery driver

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 ● Should be time conscious
● Hold a KCSE certificate
● Communication skills
● Drivers license
● 3 years of driving experience
Qualifications& responsibilities of cleaners
● Communication skills
● Hold a KCSE certificate
● Time conscious
Qualifications& responsibilities of a watchman
Qualifications
● Time conscious
● Hold a KCSE certificate
● Good communication skills
Responsibilities
● Provide security
● Opening gate for clients

Table 3.2 REMUNERATION OF OTHER PERSONNELS

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 Function Renumeration Benefits

Delivery driver KSH 26,000 Airtime, health insurance

cover

Cleaners KSH 15,000 Airtime

Watchman KSH 21,000 Airtime, health insurance

3.4 EVALUATION & PROMOTION OF EMPLOYEES

It is crucial in fostering a positive working environment and it also encourages professional
development.
3.4.1 Promotion of employees
Performance evaluation,in this criteria, employees will be promoted based on job performance,
attitude, team work and customer service skills
Providing promotion opportunities where by we will be identifying employees with potential for
advancement.
3.4.2 Employee development
Employee development is crucial for it enhances skills,improved performance and fosters career
growth.Some important strategies for effective employ development incudes;
● Skills development workshops
● Cross training
● Online learning platforms
● Career path planning

3.5 SUPPORT SERVICES

Table 3.5

Service Provider Location Cost per month

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 Electricity KPLC Moi avenue, Nairobi KSH 25,000

Water Nairobi waters Pangani KSH 30000

Internet Faiba network Nairobi KSH 10,000

Airtime Safaricom Nairobi KSH 7500

CHAPTER FOUR
4.0 PRODUCTION/ OPERATION PLAN.
At Meat Lovers Restaurant,we believe that the foundation of a successful restaurant lies in its
ability to constantly deliver delicious food, excellent services and memorable dining

21
experiences.With this in mind,our operations and production plan has been meticulously crafted
to optimize efficiency,uphold the highest standards of food safety and sanitation.
Throughout this section,you will discover key elements of our production process,menu
development strategies, supplier relationships and staffing plan.
4.1 DESCRIPTION OF PROPOSED DESIGN AND DEVELOPMENT
At Meat Lovers Restaurant, we understand the ambiance plays an important role in shaping the
dining experience The proposed design and development reflects our commitment to create a
welcoming commitment and aesthetically pleasing environment that complements our culinary
offerings and resonates with our target audience.
4.1.1 Concept inspiration
Our concept draws inspiration from the cozy neighborhood bistro.Our design elements are
carefully curated to evoke a sense cultural and modernity at once
4.1.2 Interior design
The interior combines proper lighting with very comfortable sofas with beige painted walls.From
the warm tones of reclaimed wood accents to the soft glow of pendant lighting,every detail is
thoughtfully chosen to create an inviting and comfortable atmosphere for our guests.
4.1.3 Layout and space utilization
Reception area: as guests step through the entrance,they are welcomed into a spacious reception
area adorned with tasteful decor elements that set the tone for their dining journey.
Main dining area: the dining area is the heart of our restaurant, exuding an atmosphere of
elegance, sophistication and warmth.The layout features a combination of cozy banquettes and
flexible seating options to accommodate parties of various sizes and preferences.
Outdoor patio: during warm months,guests can bask in the sunshine and enjoy al fresco dining
on our charming outdoor patio.Surrounded by a lush greenery and accented with stylish
furnishing.
Kitchen and service areas: our state-of-the-art kitchen is a bustling hub of culinary creativity and
precision.Designed for efficiency and functionality,the kitchen layout optimizes workflow and
ensures seamless coordination between our talented chefs and service staff.Adjacent service
areas facilitate smooth delivery of dishes to the dining room and seamless communication
between front-of- house and Bach- of-house teams.
4.1.4 Exterior design

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Nested along Moi avenue the exterior of Meat Lovers Restaurant captivates pasersby with its
striking architectural presence and inviting ambiance.The exterior design blends form and
function, creating a visually appealing facade that beckons guests to step inside and indulge in a
culinary journey like any other.
4.2 PRODUCTION FACILITIES AND CAPABILITIES
Our production facilities are meticulously designed to meet the demands while maintaining the
highest standards of quality, efficiency and safety.
4.2.1 Description of machinery and equipment needed for operation
In order for Meat Lovers Restaurant to run smoothly and achieve the set goals it will require the
following facilities.

Table 4.2.1 Restaurant facilities

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 Item Supplier Cost Unit Total cost
Requirement KSH

Cookers Mika 45,000 5 225,000

Fridge Hisense 67,000 7 469,000

Microwave Mika 7500 4 30,000

Freezer Alton 13,700 6 82,200

Dish washer Mika 47,000 3 141,000

Blenders Alton 4500 6 27,000

Plates,bowls Kenpit 150 250 37,500

suppliers

Slicers&dicers Kenpit 140 10 1400

suppliers

Serving trays Kenpit 185 25 4625

suppliers

Commercial Aramco 25,000 3 75,000

Mixers suppliers

Storage racks LC tikes 14,000 6 84,000

Cash register Ed bookshop 500 2 1000

Motor cycle Haojue 150,000 2 300,000

Utensils Kenpit retailers 300 250 75,000

Frier Powells 3 15,000 45,000

4.2.2 Repairs and maintenance of facilities for operation.

As Meat Lovers Restaurant we plan to procure maintenance and repair of our electronics from
Ketia Electronics who are located in Ruiru within Taj mall.

24
4.2.3 Features of proposed premises
The proposed business will be operating under a rented premise where the deposit and rent will
be paid before moving in.The rent will be paid at the on 4th of every month as agreed with the
owner.
4.3 OPERATIONAL STRATEGY
Description of monthly requirements for production
Table 4.3.1 Cost of production

MATERIALS SOURCE QUANTITY UNIT COST TOTAL

Vegetables Joy farm 20 kgs 250 5000

Cooking oil Top fry 1000 litres 1200 1,200,000

Grains NCB 500kgs 4000 2,000,000

Fruits KAT 10kgs 400 4000

VENDORS

Meat Farmers choice 250kgs 650 162,000

Dairy products Brookside 1000litres 60 60,0000

Spices Baraka additives 5kgs 120 600

4.3.2 Monthly Labour requirements

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Table 4.3.2

Function Labour cost

General manager 17,000

Dept managers 14,000

Head chef 12,000

Supervisor 10,000

Delivery driver 8000

Cleaners 7500

Watchman 6000

4.3.3 Monthly production/operation expenses

Table 4.3.3

Expenses Amount

Rent 20,000

Electricity 5000

Water 5600

Advertisement 6700

4.3.4 Cost of production

Meat Lovers restaurant plan to be using almost KSH 460,000 per month to produce the cuisines
present in our menu.

4.4 PRODUCTION/OPERATION

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Meat Lovers restaurant has put up a master plan to ensure that our production is effienct and we
meet the demands of the market.The proposed business plan to employ more technology as we
keep growing in order to adjust with the modern changes.

4.5 GOVERNMENT REGULATIONS

Compliance Source Location Cost

Operation license County ward Nairobi 2000

Business name Huduma center Nairobi 1000

registration

Tax compliance KRA HQ Nairobi 1300

NEMA compliance south C Nairobi 800

CHAPTER 5

27
5.0 FINANCIAL PLAN.
The business requires a huge amount of capital to start and run its operations which we will raise
through owner contribution borrowing from micro finances.All these sources will be able to fund
our business to start and run and after a two years we would have cleared our debt and start
enjoying the profits.
5.1 Pre operational Cost
Table 5.1.1 Meat Lovers Pre operational Cost

Pre start up requirements Cost

Trading license/permit 3000

Rent/rent deposit 20000

Insurance policy 4500

Machine, equipment & tools 340000

Stock 750000

Electricity 14000

Service phone 3000

Water 6000

Internet installation 7000

Total pre operational cost 1147500

5.2 Working capital

Table 5.2.1 Meat lovers working capital

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 Item Begin of Yr1 End of Yr 2 End of Yr 3
CAs

Stock 327000 350000 400000

Cash 250000 200000 400000

Bank 1864200 2821200 2541200

Total CAs 2441200 2821200 2541200

loan 200000 200000 200000

Interest on loan 10% 0 20000 20000

P.a

Creditors 70000 60000 80000

Accruals 0 80000 50000

Total CLs 270000 360000 350000

Estimated working 2171200 2461200 2191200

capital CAs-CL

5.3 Pro forma income statement

Table 5.3.1 Meat Lovers pro forma income statement for the first 3 years of operation

Item Year1 Year 2 Year 3

Sales 8500000 9000000 10000000

Cost of sales 4000000 4100000 4800000

Gross income 4500000 4800000 5200000

EXPENSES

Wages 2220000 2220000 2220000

Rent 600000 600000 600000

Water 24000 24000 24000

Telephone 12000 12000 12000

Electricity 36000 36000 36000

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 Advertising 60000 45000 30000

Stationery 12000 8000 6000

Gas supplies 72000 72000 72000

Transport 24000 20000 20000

Depreciation 5%p.a 12940 12940 12940

Interest 10%p.a 20000 20000 20000

Repairs 48000 48000 48000

Total expenses 3140940 3108940 3074940

Net income before 1359060 1691060 2125060

tac

Tax rate 30% 407718 507318 637518

Total income after 941342 1183743 1487018

tax

5.4 Projected cash flow budget

Table 5.4.1 Meat Lovers projected cash inflow for first year of operation.

Item Jan Feb Mar Apri May June July Aug Sep Oct Nov Dec
ch l

Cas
h
inflo
w

Ope 5870 9166 2179 4437 6102 9222 1275 1489 1828 2313 3088
ning 40 10 80 20 20 690 960 230 000 770
bala
nce

Cas 4500 500 5300 6000 7000 6800 7000 8500 1000 1000 1000 1200
h 00 000 00 00 00 00 00 00 000 000 000 000
Sale
s

Othe 2500 2000 2200 2200 2000 2600 2800 2000 2200 2500 2800 2500

30
r cas 00 00 00 00 00 00 00 00 00 00 00 00

Tota 7000 6858 8216 9879 1243 1870 1852 2175 2559 3078 3793 4318
l 00 70 40 10 280 950 220 960 960 230 000 270
cash
inflo
w

Cas 327 200 2700 2000 2600 2800 2000 2200 2500 4000 3500 3300
h 000 000 00 00 00 00 00 00 00 00 00 00
outfl
ow
Purc
hase
s
Pay
men 7000 3000 5000 4000 5000 4500 3000 6500 5000 6000 5000 7000
t to 0 0 0 0 0 0 0 0 00 00 00 0
cred
it

Wag 1850 1850 1850 1850 1850 1850 1850 1850 1850 1850 1850 1850
es & 00 00 00 00 00 00 00 00 00 00 00 00
salar
ies

Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
0 0 0 0 0 0 0 0 0 0 0 0

Wat 3000 5000 5000 5000 4000 5000 6000 4000 5000 4000 6000 3000
er+
elect
ricit
y

Tele 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
pho
ne

Tra 1500 2000 1000 3000 1000 2000 1500 2000 2000 1000 2000 2000
nspo
rt

Stati 4000 5000 1000 4000 6000 1000 800 1000 1000 1500 1000 600
oner
y

31
 Loa 1833 1833 1833 1833 1833 1833 1833 1833 1833 1833 1833 1833
n 0 0 0 0 0 0 0 0 0 0 0 0
repa
yme
nt

Adv 4000 6000 7000 5000 5000 6000 7000 5000 4000 6000 5000 5000

Taxe 3340 3340 3340 3340 3340 3340 3340 3340 3340 3340 3340 3340
s 0 0 0 0 0 0 0 0 0 0 0 0

Tota 6941 5642 6037 5441 6328 6487 5767 6857 7317 7652 7042 7063
l 30 30 30 30 30 30 30 30 30 30 30 30
cash
O.F

Net
cash
(A-
B)

Cum
ulati
ve
cash
inflo
w

5.6 Break even analysis

Fixed cost/ Contribution margin
Contribution margin = Cost - variable cost
Year 1 contribution margin = 850000 - 300000 = 820000
Fixed costs =2852940

Break even = 2952840/8200000

= 0.35

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5.7 Desired financing
Table 5.7.1 Meat lovers desired financing

Financing requirements Amount (KSH)

Pre operational cost 914300

Working capital 258800

Fixed assets 217200

Tools 15000

Total desired financing 1,405,000

5.8 Proposed capitalization

Since our business is a startup we are going to get capital from shareholders contribution as the
main source ,borrow from bank and friends then we plough back profit
Table 5.8.1 Meat lovers proposed capitalization

Amount

Personal savings 2000000

Parents contribution 1000000

Borrowing from friends 300000

Loan from microfinance 200000

5.9 Risk Analysis

The business may be affected by the following risks ,climate conditions,supply risks,To manage
theses risks we are going to implement various strategies like have alternative source of
supply,have contact of greenhouses to get some raw materials.

33