BUSINESS PLAN

MERCY’S FLOWERS

P.O BOX: 576 KILIFI

• TEL : 0111818738

Email: mercy’sflowers@gmail.com

Presented by: Mercy Wanjiku 1061201109

Course: Certificate in Accounting and Finance

Center name: Total Technical and Vocational College

Center code: 580101

Presented to: Kenya National Examination Council

Supervisor: Mr. Peter

Declaration
I Declare that this is my original work and has not been presented for examination for marking.

Acknowledgement
I wish to acknowledge those who supported me for the successful of my business plan.

Dedication
I take this opportunity to thank those who supported me for their good services which made my business
plan successful. I also recognise my supervisor Peter who guided me in writing the project.

Synopsis.

1.1 business description

The business will be called 'Sylvia's flowers' which will be located at Kilifi town between Misufini and
tezel amor along Malindi - Mombasa road.
The type of business ownership is a sole proprietorship. The business is under flower nursery because it
deals with flowers.
2.1 marketing plan
The potential customers will come from Misufini and the ones around the business area.
The most competitors will be Katana's flowers. They will defeat competitors by;

1. lowering the prices

2. better advertisement of the products

3.1 organization management.

Even though the business is a salt water so I can have some more careful with our system support and
running of the business and make it more efficient. Workers will be recruited, trained and promoted
depending on work done.

4.1 production and operational plan

This is the process of making the goal and strategy of starting the business. The business is just beginning
on 1st November 2024.

5.1 financial plan

Which chapter targets to enable the business to work towards the objectives in order to make a profit can
be in a position of expanding the business.

CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1 BACKGROUND OF THE OWNER

NAME: MERCY WANJIKU

AGE : 20 YEARS OLD

MARITAL STATUS: SINGLE

ADDRESS: 576 KILIFI

OCCUPATION: STUDENT

EDUCATION QUALIFICATION

2022 UpTo date : Total Technical and Vocational College

2018 - 2022:Mazeras Memorial secondary School

K.C.S.E certificate

2007 - 2017:Juma Marwa Academy School

K.C.P.E certificate

Business experience

No experience

1.2 business name

The name of the business will be mercy’s flowers which she obtained it from her name mercy and it will
deal with all kind of flowers like rose flowers, carnation, hibiscus.

1.3 location and address

1.3.1 business address

Email address; mercysflowers@gmail.com

P.O Box: 576

Kilifi Kenya

1.3.2 Business location

The business will be located at kilifi town just between Misufini and Tezo

1.4 Forms of ownership

The type of business ownership will be a sole proprietorship. This kind of ownership papers one person
who will run and run like the business. The sort of attitude should also consider the capital in order to
make the smoothness of the business.

Characteristics of a sole proprietorship

1. Ownership is owned by one person.

2. He or she enjoys the profit alone.

3. It requires few capital to start the business.

4. He or she becomes the manager of the business.

Advantages of a sole proprietorship.

1. Easy supervision of work

2. One enjoys the profit

3. Easy decision making.

4. A small capital for one to start a business.

Disadvantages of a sole proprietorship

• Time consuming

• It is tiresome

• He or she suffers loan alone

• Insufficient facilities

1.5 Type of business

The type of business will be a startup business which means that starting with little capital and having the
air and the willingness in order to be able to manage the type of business.

1.6 Products and services

The business will offer all kind of flowers including size and different colours. The customers will get the
flowers of high quality and quantity at a lower price and which has been authorised by the bureau of
standards. The products will also be distributed in different areas and also will be a promotion to the
customers and the storage facility will be highly secured.

1.7 Justification of the business opportunity

The reason of coming out of the businesses that include if there is plenty of many flowers which in some
cases they end up getting hurt while in the market due to lack of market. That's why mercy’s flowers
came up with an idea of getting the flowers and use the different method hence reducing the wastage of
flowers. The business will be located in employers with good infrastructure security and where there is
high population.

1.8 Industry
The business is under the flower industry was producing products of high-quality and in large quantities
having a large number of customers.

1.9 Goals and objectives of the business

1.9.1 Goals of the business.

The goal of the business is to expand his business to the other areas and compete with other market and
become the best supplier.

1.9.2 Objectives of the business

Objective of the business is to lower the price which will attract more customers to buy the product
resulting in an increase in sales volume of the business.

2.0 Entry and growth strategy

2.0.1 Entry plan

The business will start by offering free gifts to customers and create awareness through other people by
word of mouth.

They will also advertise through social media.

2.0.2 Growth plan

The business will prosper by getting loans from financial institutions and plough back profit made into
the business.

The business will offer job opportunities to the people within the county solving unemployment
problems.

The business willing for government policy where in some cases if they reduce taxation the business will
enjoy the profit needed for expansion.
CHAPTER TWO

2.0 Market plan

2.1 The customers

The business is targeting a total of $5,000 institutional customers from Mwango which is located near the
business. And also has a target of 2500 individual customers according to statistic at Kilifi town a total of
20000 occupants. There is Maxwell flowers center and Katana flowers center as the competitors. Through
adequate good quality flowers the business will attain it's customers target of 2500.

2.2 Market Share

Sylvia's flower to get a market share around 24% during it's first year.

Names Sales Shares

Maxwell flowers center 5000 5000/10000 x 100 =50%
 Katana flowers center 2000 2000/10000 x 100 = 20%
Mercy’s flower center 3000 3000/10000 x 100 = 30%
Total 10000

In the second year, Sylvia's flowers will target a share of around 40%

Names Sales Shares

Maxwell flowers center 4900 4900/12000 x 100 =40%
Katana flowers center 2900 2900/12000 x 100 = 25%
Mercy’s flower center 4200 4200/12000 x 100 = 35%
Total 12000

2.3 Competition

Competition is an asset to that business because it enables the enterpreneur as to get tactics to the small
run of the business. The potential competitors are Maxwell flowers investors and katana flowers which
are located a few kilometers from Sylvia's flowers.

N0 Area of Mercy’s flowers Maxwell flowers Katana flowers

comparison
1 Strength 5 5 4
2 Pricing 8 10 5
3 Promotion 10 8 6
4 Sales 7 5 5
5 Advertising 9 7 7
6 Services 11 11 8
Total 50 46 38

The table above shows mercy’s flowers has a better chance on its competitors.

The table below show the strength and weakness analysis

Names Strength Weakness

Mercy’s flowers Good position High competition from other
Offers for sale services competitors
Good working conditions
Maxwell flowers Very close to customers within Poor public relation
the area. Lack of funds to run the
business
Katana flowers Good site Unavailability of modern
Cheap services working equipment
Good working condition

2.4 Method of promotion and advertisement

Mercy’s flowers will be advertised with stuff from a store poster show exhibitions and mass media.
Advertisements cost will be paid by the company finances and will be done frequently with every
introduction of new products. Free services will be offered as a form of advertisement.

2.5 price strategy

All price of services offered will be combined the cost of material used labor of workers and the profit
will depend on raw material used acquired from the services.

All prices will be according to;

• Cost of raw materials services afford will defeat on raw materials acquired.

• Discount offer to the product and services will be offered to all customers the greater the service
the more discount allowed.

• Some of the factor will consider when determined the price level includes means of transport.

Quantity Maxwell flowers Katana flowers Mercy’s flowers

0.5 litre 200 150 100
1 litre 250 230 200
2 litre 300 250 230

2.6 Sales tactics

The sale of service will be directly to the customers. Services we help in directly engaging with customers
and one can use the demonstration of products to its customers through this will improve its production.

2.7 Distributions strategy

The business will use motorbike for distribute its products to the potential customers as they are cheap to
buy and they are mostly available and they can pass through interior areas where some vehicles is
difficult to pass. Most of this gas it is because of poor infrastructure and so overcome this the government
should develop the infrastructure in remote areas and this will lead for easy distribution of goods and
services.
Chapter three

3.0 organization and management plan

3.1 Management team

In mercy’s flower the director will just assist to manage the business by team of members.

1. The managing director

2. Human resource manager

3. The marketing manager

4. The financing manager

3.1.1 The managing director.

Duties

• Makes business decisions.

• Prepare salaries for the workers

Qualifications

• Should at least have masters in management course

• Should have a work experience of over 5 years

Human resource manager

Duties

• Employees workers

• Vet and confirmed the eligible applicants.

Qualifications

• Should at least have masters in human resource management course

• Should have practice human resource in any firm

The marketing manager

Duties

• To prepare marketing of an organization

• Appoint marketing team

Qualifications

• Should have at least masters in a business course

• Should have work experience of at least 3 years

The finance manager

Duties
 • Distribution of finances

• Something out all finance issues

Qualifications

• Five years’ work experience

• Masters in finance course

3.1.2 other personnel

Title No. of employees Qualifications Duties

Owner manager 1 Certificate in business Take control of whole
management department
Cashier 1 Business course Budgeting and paying
salaries
Workers 5 K.C.S.E (C) Distribution of
Diploma in sales products
Security personnel 3 K.C.S.E To watch over security
of the organization
Cleaners 4 K.C.P.E Cleaning of premises
Kitchen staff 6 At least certificate in Prepare meals for the
hospitality workers

3.4.2 Incentives

This is increasing the employees model support and energizing to their behavior according to their
behavior and hard work through;

• Giving them free tea

• Leave once per month

• Free Wi-Fi in the organization

• Laptops for the accountants to manage their work easily.

3.5 License, permit and by laws

3.5.1 Licenses

The municipal council will offer the business with license to enable to run business.
3.5.2 Permit

The Kilifi county government will give the business a trade permit for ksh.2000 which will be renewed
after every year.

3.5.3 By laws

The business is required by the municipal to maintain a high standard of hygiene and also practice the
good business ethics by county government.

3.6 Support services

3.6.1 Banking services

The business will have opened a number of banks including saving accounts and also fixed account
according to the interest gained. This is me account will be commercial bank Kilifi branch.

3.6.2 Insurance services

The business will be issued with legal insurance company per month against theft and fire destruction.

3.6.3 Consultation services

The business will get consultation from high technology company with experience.

3.6.4 Legal services

The private lawyer who will be the legal lawyer to the company will be hired from Kilifi. Lawyer will
represent the business in case of any conflict resulting from its normal operation and legal fee will be
4,000.

3.3 Recruitment, training and promotion

3.3.1 Recruitment

Mercy’s flowers will attract it's false employees through advertisements and using posters and interested
personal undergo an interview conducted by the owners manager to ensure that qualified personnel are
employed in the business.
3.3.2 Training

The employees will be trained to enable them to do their work efficiently in order to increase high
performance of standard and prepared for work for higher level and this can be done by attending
seminars in different organizations.

3.3.3 Promotion

The business will increase salaries to the workers when it's expanded into blood still business. Loyal
employee will be promoted according to their work and good attitude and well-mannered towards custom.

3.4 RENUMERATION AND INCENTIVES

Salary will be based on monthly based at the staff of the business.

TITLE NO MONTHLY PAY ALLOWANCES TOTAL

AND BENEFITS
Owner manager 1 19000 1000 20000
Cashier 1 15000 1000 16000
Workers 5 7000 1000 8000
Security 3 5000 1000 6000
personnel
Cleaners 4 4000 1000 5000
Kitchen staff 6 6000 1000 7000
Total 20 57000
CHAPTER FOUR

4.0 Production and operational plan

4.1 Production facilities and capacity

The following machines and tools will be used in production. The table below shows the required
equipment and their cost.

Items Quantity Cost per item Total cost (ksh) Source

(ksh)
Watering can 5 4500 22500 Kilifi supermarket
Bucket 4 30000 120000 Kilifi supermarket
Hose reas 10 200 2000 Kilifi supermarket
Tow tractors 10 300 3000 Kilifi supermarket
Cleaning machine 10 250 2500 Kilifi supermarket
150000
4.1.1 FIRM LAYOUT
Repair and maintenance

In case of any damage to the tools equipment in the business they will be repaired and also replacements
will be done only if the equipment is severely damaged.

4.2 Production strategy

Flowers production will be done four times a week to ensure steady supply of flowers to the market to
satisfy the need of the business customers. The following stages will be considered before production
process.

4.3 production process

Purchasing

Mercy’s flowers get the flowers from different farmers by purchasing.

Receiving

After purchasing the flowers into our business and staff in charge will check the condition of the flowers
to determine if they are of the required quality and quantity.

Sales / services

After everything required it's available the production process take place and people will get the service
needed and invade of any health needed by the customer in terms of juicing goods the sellers will help
them.

Factors that hinder the production

• Inadequate skilled labor

• Unfavorable government policy like high taxation

How to solve this effect;

• Training the workers to gain skills.

 • Favorable government policies like low taxation

4.4 Production affecting operation

The following protocols are done by the government and it must be athered to before commencement of
any operations.

4.4.1 Health regulations

The business will ensure that there is healthy officers which assures that the business customers get
products of high quality and quantity.

4.4.2 Safety

Mercy’s flowers will insure it's business against fire and theft.

Provision of masks to prevent dust while at the business premises.

CCTV cameras to keep an eye on what is going on around the business.

4.4.3 Environmental

Regulations concerning environment conservation like 'NEMA' company will have held and ensure there
is proper disposal of waste. Cleaning will be done everyday to ensure cleanliness in the business.
CHAPTER FIVE

5.0 This is an outline of the capital requirements and financial budgeting of the business.

5.1 Pre operational cost

ITEMS COST (KSH.)

Transport 100000
Market research 3000
Meeting 10000
Photocopy 1000
Installation 7000
Machine equipment 150000
Water 20000
Electricity 30000
Furniture 40000
Total cost 361000

5.2 Proforma balance sheet as at 1st January 2023

Fixed assets

Machine 40000

Furniture 35000

Less depressions 35000

Total fixed assets 95000

Current assets

Cash at hand 100000

Cash at bank 50000

Stock of raw materials 45000

Stock of unfinished goods 30000

Debtors 150000

Total current assets 375000

Less liabilities

Current liabilities

Creditors 60000

Long term liabilities

Loan 150000

5.3 working capital requirements

W.C =CA-CL

Current Assets KSH

Cash at hand 100000

Cash at bank 500000
Stock of raw materials 45000
Stock of unfinished goods 30000
Debtors 150000
Total 375000

CURRENT LIABILITIES

Creditors 60000

W.C = 375000- 60000 =315000

5.4 CASH FLOW PROJECTION

5.4.1 CASH FLOW PROJECTION FOR THE YEAR 2023

RECIEPT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
SALES 10000 20000 26000 15000 30000 21600 20000 22000 27000 28000 25000 27000
0 0 0 0 0 0 0 0 0 0 0
DEBTORS 10000 30000 20000 60000 5000 7000 3000 15000 2000 100 3000 2000
CASH 27200 11000 23000 26000 21000 30500 22300 20300 23500 27200 28100 25300
0 0 0 0 0 0 0 0 0 0 0 0
PURCHASE 15000 19000 20000 40000 10000 15000 5000 2000 5000 2800 30000 10000
SALARIES 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000
CREDITORS 15000 10000 10000 5000 5000 10000 20000 10000 5000 20000 5000 10000

LICENCE 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

RENT 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

WATER 800 800 800 500 700 1000 800 500 450 1000 800 700
 TRANSPOR 500 1000 700 600 1000 1000 800 1200 1000 1000 800 700
T

CASH 53300 54000 69000 38600 49200 49500 36100 34200 46750 59300 44000 54000
FLOW

NETCASH 56700 17590 19100 17140 25680 17300 16690 20080 22525 22170 20900 21800
FLOW 0 0 0 0 0 0 0 0 0 0

5.4.2 CASH FLOW PROJECTION FOR THE YEAR 2024

RECIEPT JAN FEB MAR APR MAY JUN JUL AUG SEP 0CT NOV DC
SALES 10000 32000 21300 20000 30000 25000 20000 22000 25000 27000 2600 2800
0 0 0 0 0 0 0 0 0 0 0 0
DEBTORS 40000 10000 5000 20000 30000 40000 20000 10000 20000 10000 1000 2500
0 0 0 0
CASH 14000 33000 21800 22000 33000 29000 22000 23000 27000 28000 3600 5300
0 0 0 0 0 0 0 0 0 0 0 0
PURCHASE 30000 11000 10000 10000 10000 20000 10000 50000 10000 10000 2000 5000
SALARIES 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 2000 2000
0 0
CREDITORS 10000 10000 5000 5000 10000 20000 10000 10000 5000 50000 1000 1500
0
LICENCE 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
RENT 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
WATER 800 600 500 700 1000 500 500 800 700 750 800 1000
TRANSPOR 1000 800 600 800 800 1000 1000 600 800 500 900 800
T
CASH 64300 34900 39000 39000 44300 64000 43900 78900 39000 10625 2720 4430
FLOW 0 0 0
NET CASH 75700 29510 17900 18100 28570 22600 17610 15110 23100 17375 8800 8700
FLOW 0 0 0 0 0 0 0 0 0

5.4.3 CASH FLOW PROJECTION FOR THE YEAR 2025

RECIEPT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
SALES 80000 70000 60000 50000 40000 30000 30000 35000 32000 32000 4500 31000
0
DEBTORS 2000 1000 3000 10000 4000 10000 20000 10000 10000 2000 3000 4000
CASH 82000 71000 63000 60000 44000 40000 50000 45000 4200 38000 4800 35000
0
PURCHASE 10000 5000 10000 5000 2000 1000 3000 10000 10000 4000 3500 1000
SALARIES 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 2000 20000
0
 CREDITORS 2500 1000 5000 1000 2000 1000 300 10000 10000 8000 3000 4000
LICENCE 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
RENT 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
WATER 500 700 800 500 500 800 800 1000 800 500 500 1000
TRANSPORT 1000 800 1200 1000 1000 1000 800 1200 1000 1000 1000 1000
CASH FLOW 36500 30000 39500 30100 28000 35300 30100 37700 38400 30500 3050 29500
0

NET CASH 45500 41000 23500 29900 16000 4700 19900 7300 3600 17500 1750 5500
FLOW 0

5.5.1 PROFORMA INCOME STATEMENT FOR THE YEAR 2023

SALES 2521600
Less cost of goods sold
Opening stock 45000
Purchase 19000
Less closing stock 30000
Gross profit 2487600
Less expenses
Salaries 20000
Rent 7000
Water 6000
Transport 7000
Creditors 1000
Total 41000
Net profit 2446600

5.5.2 PROFORMA INCOME STATEMENT FOR THE YEAR 2023

 SALES 2521600
Less cost of goods sold
Opening stock 45000
Purchase 19000
Less closing stock 30000
Gross profit 2487600
Less expenses
Salaries 20000
Rent 7000
Water 6000
Transport 7000
Creditors 1000
Total 41000
Net profit 2446600

5.5.3 PROFORMA INCOME STATEMENT FOR THE YEAR 2023

SALES 539000
Less cost of goods sold

Opening stock 70000

Purchase 5000

Less closing stock

Gross profit 489000

Less expenses

Salaries 20000

Rent 7000

Water 9000

Transport 11000
 Creditors 1500

Total 98500

Net profit 390500

5.6 BREAKING EVEN CALCULATION ANALYSIS

Breaking even points = fixed assets/contribution per unit

= 300000/300

= 1000

Breaking even points in value = fixed cost x selling price/contribution per unit

=300000x600/300

=600000

Contribution ratio = contribution per unit x100/selling price

= 300x100%/600

= 50%

5.7 DESIRED FINANCING

ITEM COST (KSH)

PER OPERATIONASL 361000
WORKING CAPITAL 315000
FIXED ASSETS 95000
TOTAL 771000

5.5 CAPITALIZATION

ITEM COST (KSH)

 OWNERS CONTRIBUTION 300000
BORROWED 150000

5.9 PROFTABILITY RATIO

GROSS PROFIT = GROSS PROFIT/SALE X 100%

= 40000/20000 X 100%

=200%