BUSINESS NAME: BEER’S COFFEE

SHIOP
ADDRESS : P.O. BOX 1257 DONHOLM
INSTITUTION: MASAI NATIONAL POLYTECHNIC
NAME OF CANDIDATE: ALOO REBECCA
INDEX NUMBER: 515102
COURSE CODE:
SUPERVISOR’S NAME: MR BINYANYA
EXAMS SERIES: JUNE/JULY 2024
SUBMITED TO: THE KENYA NATIONAIL EXAMINATION
COUNCIL IN CRAFT IN CERTIFICATE
IN FOOD AND BEVARARAGE.
DEDICATION.
I declare this my original work and has not been submitted to any examination office or
institute

NAME : ALOO REBECCA

SIGNATURE:

SUPPERVISOR’S NAME: MR BINYANYA

SIGNATURE:

DEDICATION.
I dedicate this particular business plan to all my family members and friends for supporting
this business plan more so by supporting me financially through the preparation of the
plan.
 ii
ACKNOWLEDMENT.
Special thanks to mother who helped me financially and my fiends assisted me towards the
launch of venture
I am also indebted to many individuals for their help and encouragement while conducting
the preparation of the business plan. I will like to gratitude all my friends and classmates,
with whom I worked together with to ensure the success of this business
 iii

TABLE OF CONTENTS
DEDICATION............................................................................................................................................i
DEDICATION...........................................................................................................................................ii
ACKNOWLEDGEMENT........................................................................................................................iii
TABLE OF CONTENTS.........................................................................................................................iv
CHAPTER ONE........................................................................................................................................1
BUSINESS DESCRIPTION.....................................................................................................................1
1.1 BUSINESS NAME...........................................................................................................................1
1.2 BUSINESS LOCATION AND ADDRESS....................................................................................1
1.3 BUSINESS OWNERSHIP..............................................................................................................1
1.4 PRODUCT AND SERVICES.........................................................................................................1
 1.5 JUSTIFICATION............................................................................................................................2
1.6 INDUSTRY......................................................................................................................................2
1.7 BUSINESS GOALS.........................................................................................................................2
1.7.1 Short term goals........................................................................................................................2
1.7.2 Medium term goal.....................................................................................................................3
1.7.3 Long term goal..........................................................................................................................3
1.8 ENTRY AND GROWTH STRATEGY.........................................................................................3
CHAPTER TWO.......................................................................................................................................4
MARKETING PLAN................................................................................................................................4
2.1 POTENTIAL CUSTOMERS..........................................................................................................5
2.2 MARKET SHARE..........................................................................................................................5
2.3 COMPETITION..............................................................................................................................6
2.4 PRICING STRATEGY...................................................................................................................7
2.5 SALE TACTICS..............................................................................................................................7
2.6 ADVERTISMENT AND PROMOTION STRATEGY................................................................8
2.6.1 Advertisement...........................................................................................................................8
2.6.2 Promotion..................................................................................................................................8
2.7 DISTRIBUTION STRATEGY.......................................................................................................9
CHAPTER THREE...................................................................................................................................9
ORGANISATION STRUCTURE AND MANAGEMENT PLAN........................................................9
3.1 BUSINESS MANAGER AND QUALIFICATION.....................................................................10
3.2 PERSONNEL NUMBER AND DUTIES.....................................................................................10
3.4 RENUMERATION AND IN CENTIVES....................................................................................13
3.5 REGULATION AFFECTING THE OPERATION....................................................................14
3.6 SUPPORT SERVICES..................................................................................................................14
CHAPTER FOUR...................................................................................................................................17
PRODUCTION AND OPERATION PLAN..........................................................................................17
4.1 PRODUCTION FACILITY AND CAPACITY..........................................................................17
4.2 PRODUCTION STRATEGY.......................................................................................................18
4.3 PRODUCTION DESIGN AND DEVELOPMENT.....................................................................20
4.3.1 Advantages of standard recipes.............................................................................................21
4.3.2 Advantages of standard yield.................................................................................................21
4.3.3 Advantages of standard portions...........................................................................................21
4.4 PRODUCTION PROCESS...........................................................................................................21
4.5 GOVERNMENT REGULATION................................................................................................23
CHAPTER FIVE.....................................................................................................................................24
5.0 FINANCIAL PLAN.......................................................................................................................24
5.1 PRE-OPERATION COST............................................................................................................24
5.2 ESTIMATION OF WORKING CAPITAL.................................................................................24
 5.3 PROFORMER BALANCE SHEET.............................................................................................26
BREAK GIVEN ANALYSIS..............................................................................................................30
FINANCIAL RECRUITMENT.........................................................................................................31
PROPOSED CAPITALIZATION.....................................................................................................31

CHAPTER ONE.
1.0 BUSINESS DISCRIPTION
A coffee house, a coffee shop or café is an establishment that primarily various types or
coffee, express and cappuccino. Some coffee house may serve cold drinks such as iced
coffee and iced tea as well as other non-caffeinated beverages

1.1 BUSINESS NAME

The proposed business is BEER’S COFFEE SHOP. The name BEER’S is a short
name of Becky derived from a Luo language. The meaning of BEER is something
good. The proposed business shall start on March 2022 and it will be a sole
proprietorship business. The major activities of the business will be maintaining of
good coffee shop and makes all types of coffee so that customers can have verity.
They will be also selling cold drinks and snacks.

1.2 BUSINESS LOCATION

The business will be located in Nairobi County Embakasi sub-county Donhlom in
Embakasi East from there we will be selling the products. There will be a maram
road from Nairobi town to Jogoo road will make it easier for transportation of the
products, the presence of National banks,petrol station, bus station. The people
working from their will come and be my customers.
 FORMS OF OWNERSHIP BUSINESS ADRESS
Name ,BEER’S COFFEE SHOP
Adress,P.O.BOX 1257 Donhlom
Telephone number, 0798440316
Email,rebeccaaloo88@gmail.com

1.3 FORMS OF OWNERSHIP

The proposed business will be a sole proprietor business this is because
 The owner of the business enjoys his or her profit
 The owner knows how to control the business alone
 There is close supervision since the owner has direct contact with the
customers
 The owner of the business is Becky Otieno 22years old from Kisumu County
and a student, she will be the manager of the business.
The initial capital to start the business will be Two hundred and fifty thousand will
be obtained from
a) Personal saving 50,000
b) Parents and relatives 100,000
c) Loan from equity 100,000

1.4 PRODUCT AND SERVICES

The business will be sell to the potential customers at a large. Such products as
coffee will be the main product ,cold drinks and snacks.
Products will be packed in clean containers to avoid spillage and burns to
customers.

1.5 JUSTIFICATION OF OPPORTUNITY

The major reason for choosing this type of business is that the infrastructure of the
area, people like taking coffee in the morning and in the afternoon and people
working around that area will like cold drinks and snacks. Customers like things
with good quality and quantity. There are shortage of coffee shop in Donholm thus
a big market gap which need to be filled.

1.6 INDUSTRY
The competition in the market makes the proposed business to a large industry.
The modern technology will be applied in terms of making coffee.

1.7 BUSINESS GOALS

Short goal terms
a) The business will protect the interest of the customers by charging the price
and quality of the product will be maintained
b) Attract more customers and maintain them
c) Serve every customer equally

Long goal terms

a) The business will expand and have many branches to makes more profit
 b) Educate the locals customers the important of coffee and it is good for our
health.

1.8 ENTRY AND GROWTH STRATEGY

Entry strategy
 The business will be known through poster, magazines, creating social
media platform to advertise the business to the people. The business will
offer discount to the customer compared to other shops hence to attract
customers.
Growth strategy
 The business will focus on making more profit .It will also strengthen the
relationship with the customers .The business will also ensure the drinks
served in there are fresh and readly available.

CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMERS
The proposed business will serve from all levels of income status, that is the high
income class and the lower income status class whereby each customer will be
treated equally. The targeted customers include the local who’s surround the
business area and also people who are passing by .Institutional customers such as
aspherical ,schools ,and clinics will be also in to account commercial customers
such as shops ,supermarket ,and kiosks will also be served as major customers.

2.2 MARKET SHARE

The proposed business will be at a high populated area. The total population target is

TYPE OF CUSTOMER EXPECTED PER MONTH

Individual customer 2500
Institutional customer 40
Comercial customer 1500

COMPETITORS TOTAL POPULATION PERCENTAGE

BEER’S 500 20%
JOSE’S 2500 50%
PAM’S 1000 40%
SARAH’S 800 70%
 Sales

Pam's Jose's Sarah's Beer's

2.3 COMPETITION
 Staff as the operators in business creators high competition with other
competitors each try to give the best to customers so that they can attract
customers and maintain the existing ones .The resulting more competition

COMPETITIORS STRENGTHS AND WEAKNESS

BEER’S COFFEE SHOP
a) The price is favorable
b) Location area is highly populated
c) Offers quality products and service to the customers

WEAKNESSES

- Poor insecurity
- There is no people to deliver to customers

JOSE’ COFFEE SHOP

- Offer discount after selling
- Good communication to customers
- Quality production and service

WEAKNESSES
- Fixed priced

PAM’S COFFEE SHOP

- Offer testing before buying
- Deals with professional managers

WEAKNESSES
- Low production
- Have low distributers

2.4 METHOD STRATEGY

The product of the business will demonstrate to customers during weekends and
promotions will be offered. This will be effective method of promoting the business
method. It will be determined by change of customers increasment before and after
it applied.

2.5 PRISING STRATEGY

Pricing the product will be determined by the direct and indirect cost of production
and making profit. The competitors price season and government policies will also
determine the the price of products in the first eight months of the business ,the
price of the products will be lower than the competitors so that customers will be
 attracted .Their will fluctuation in price that is high pricing when the production of
competitors is low and lower than the price when the product is high.

2.6 SALES TACTICS

This is most dealt with manager and the sales man of which displaying of products
in clean shelves and hygienic way will be a tactic to sale, sign board and posters
will be applied whereby there will be roadsides , the direction of the business to it’s
products and their price.

2.7 DISCRIPTION STRATEGY

The business will be selling coffee, snacks ,and cold drinks directly to the
customers ,since most of the targeted customers are within the business
area .Individuals customers and commercial customers will also be
served .Excessive handling of products will be highly avoided so that there will be
no spoilage of products.

CHAPTER THREE
3.0 ORGANISATION AND MANAGEMENT PLAN
The manager of the business will be Aloo Rebecca she will be in charge of all the activities
that will be done by staffs.
3.1 BUSSINESS MANAGERS AND QUALIFICATIONS.
The management team for the success of the business will include the following.
MANAGER

CASHIER CLEANER SECURITY SALESMAN

THEIR RESPONSIBILITIES AND QUALIFICATIONS
Manager
Qualifications
a) Have an experience of five years and above
b) Have a degree in business management and hospitality
c) Must know to use a computer
d) Must know how to communicate with the customers
e) Must be smart and clean
Responsibilities
a) Employing and dismissing employee
b) Make appropriate decision for the business
c) Keep order and control of the business
d) To supervise and make all staff at their working places.
3.2 OTHER PERSONEL

TITLE QUALIFICATIONS DUTIES

 Cashier Age 27-40 years’ experience Receiving payments made by
of at least two years and a customers.
half
Salesman Be a holder of certificate in Transporting of product to
marketing 3 years’ the customers conduct
experience, have availed advertisement and
driving license. Age 27-35 promotion of products.
years.
Security Officer K.C.S. E Certificate is To guard the premises
required Able to speak
English and Kiswahili. he
should have a knowledge of
the job he is looking for

ORGANISATION CHAT

MANAGING
DIRECTOR

MANAGER

CASHIER SALESMAN SECURITY

3.3 RECRUITMENT, TRANING PROMOTION
This is a process of searching employees with the best qualities the recruitment process will
invoice only the educated personal with the stated qualifications. It will be announced
through newspapers, radios and posters
Training is a process of leaning and planning of a job to impact skills and knowledge to the
staff. This will take two to three to help improve their skills and the welfare of the business
at large .Each staff will be impacted with skills according to his area of duty to enable his or
her duty performance .
This will help the employees and motivate them of work and they will work hard and smart
to promotion thus improving the productivity in the business promotion.
3.4 RENUMERATION AND INCENTIVES
This will help the owner to acquire or retain the best personal. The renumeration shall be
based on the following.
The owner will consider the period of employment and employee will have worked in the
business, and if it is more than six years the salary will be higher than others.
Training the business will be guaranteed for more payment and promotion .They will
provide the employees a way of motivating them.. They include;
House allowance
Paying fo their medical bill when injured
Their will be staff meal
 TABLE INDICATIONG EMPLOYEE SALARIES AND ALLOWANCES PER MONTH

POST MONTHLY MOTHLY ALLOWANCE TOTAL

SALARY
Manager 15,000 2,000 17,000
Cashier 10,000 1,800 11,800
Salesman 10,500 1000 11,500
Watchman 10,000 800 10,800

3.5 LICENCES, PERMITS AND BY -LAWS

Trade licenses is an official document that shows one is allowed to do his or her business in
Nairobi County council and will be renewed after every year.
Permits are legal documents that offer proof or compliance with certain city law regulation
structural appearances and safety.
Rules and regulation that each and every person should know and adhere to them. This
reduces the risk and secure a progressive importance of health and safety. The employees
should be issued for emergencies.
3.6 SUPPORT SERVICES
This is the services that work together to propose business and archive its objection produce
for the best products for customers satisfaction.
The banking services will provide credit facility for the business and help in accounting were
the cashiers will be banking what he/she get the payment collected daily for security
purpose and to see weather they are making profit or loss
CHAPTER FOUR
4.0 PRODUCTION /OPERATIONAL PLAN
Production plan will be guided on how the enterprise will be opening on a daily basis general
objectives being achievement or the business goals and more so as to satisfy customers’
needs there will be clearly laid down production procedures and plans of operation for those
producers to succeeded .various types of equipment’s will be required to be purchased with
less amount.
4.1 PRODUCT DESIGN AND DEVELOPMENT
Since the proposed business will be providing services and products they will be designed
according to the design of the attract customers so as to compete with other business
owners
4.2 FACILITY CAPACITY
For the operation of the business to be on the following facility should be purchased.

ITEM QUALITY DATE SOURCE UNIT COST TOTAL

ACQURED COST
Cleaning 5 litres 7/3/2022 Donholm 100 500
agent Supermarket
Mops 2 7/3/2022 Donholm 150 300
Supermarket
Plastic cups 2 dozen 7/3/2022 Donholm 70 140
Supermarket
Polthene 2 dozen 7/3/2022 Donholm 75 150
papers Supermarket
Brooms 3 7/3/2022 Mungai’s 50 150
shop
Aprons 4 7/3/2022 Sharons 100 400
Tailors shop
Buckets 4 7/3/2022 Mungai’s 60 240
Shop
Detergents 20 litres 7/3/2022 Joy’s shop 150 3000
Tables 5 7/3/2022 Mungai’s 250 1250
Shop
Chairs 20 7/3/2022 Mungai’s 200 4000
Shop
Tissue 2 dozen 7/3/2022 Donholm 120 140
papers Supermarket
Stationery 1 dozen 7/3/2022 Mungai’s 150 150
Shop
Receipt 3 7/3/2022 Mungai’s 230 690
books Shop
Coffee cups 4 dozen 7/3/2022 Donholm 400 1600
Supermarket

TOTAL 2,105 12,710

MOTHLY LABOUR REQUIREMENT.

JOB DESCRIPTION NUMBER AMOUNT

Managing Dirctor 1 17,000
Cashier 1 11,800
Watchman 1 11,500
Sales man 1 10,800

TOTAL 51,100

MOTHLY PRODUCTION EXPENCES

EXPENSES COST KSH

Insurance 400
Rent 5500
Transport 2500
Electricity 1000
Licenses 600
Salaries 51,100
TOTAL 61,100

COST OF PRODUCTION

PARTICULARS COST KSH

Materials expense 22,197
Total monthly requirement 51,100
Total labour requirement 61,100
TOTAL 134,397

4.1.2 FACILITY LAYOUT

LADIES STORE TABLES &

ROOM CHAIRS

GENTS SHELVES CONTAINER

ROOMS

WATER TV STAND

CONTAINER AND
DECODER
4.2 FACILITY CAPACITY

MATERIAL QUANTITY COST PER TPTAL COST

QUANTITY
Bucket 3 300 900
Broom 2 200 400
Tables 2 250 500
Chair 3 500 1500
Recipt book 1 400 400
Tissues 3 60 180
Dust Coart 3 700 2100
Calculater 4 500 2000
First aid kit 2 1000 2000
Mops 4 100 400
Pens 5 100 500
Computer 2 5000 10,000
Detergents 2 200 400

TOTAL 9,310 21,250

4.3 PRODUCTION PROCESS

This is production of final product will be based on the main objectives of the business to
produce high quality of coffee to satisfactions of customers.
Coffee will be put in coffee cups being served then some of them will be packed for those
who want to carry and ready for selling the rest to remain in the care
4.4: REGULATION AFFECTING OPERATION
Business will acquire permit so that it may be able to run its operation. the proposed
business will be registered in accordance with the regulations of the trade and industry
under trade license
Act cap 499 of the Kenyan law so as to be obtained a trade license as it will be renewable
annually.
The staff will be required to have their medical certificate and food handlers to ensure that
there is safety of products in terms of hygiene.

FORMS OF BUSSINESS

PERMIT/LICENSE SOURCE COST KSH

Single business permit District Development officer 5000
Helth Permit District Health officer 4000
Trade license District Development trade 3500
officer

TOTAL 12,500

TOTAL OPRATION COST

 COST OF PRODUCT AMOUNT

Machinery 11,700

Tools and equipment’s 1,400

Items 30,969

Compensation table 14,000

Amount of stock 16,830

Bussiness permit 12,500

TOTALS 87,399

CHAPTER FIVE
5.1 FINANCIAL PLAN
The business will acquire funds from parents, relatives, banks loan and person saving it to
run smooth and effective
5.2 PRE-OPERATION COST
These are cost incurred before the start of the business they include
Large equipment

ITEM QUANTITY PRICE TOTAL COST

Weighing machine 1 21,000 21,000
Washing Machine 1 22,000 22,000
Machine 1 25,000 25,000
Refrigerator

TOTALS 68,000

Small Equipment’s
Packing bags 30 pcs 200 1600
Containers 10 pcs 100 1000
Dustbin 2 pcs 200 400
Cleaning buckets 4 pcs 250 1000
Hand bushes 3 pcs 200 600
Calculator 3 pcs 1000 3000

TOTAL 7,600

Stationary pencil 10 20 200

Maker pen 4 25 100
Ruler 5 50 250
Rubber 3 60 180
Printing papers 10 200 2000

Totals 2,730

5.3 ESTIMATION OF WORKING CAPITAL

Assets -liability capital
 Liabilities Total cost ( ksh)

Loan 50,000

Creditors 40,000

Bank overdraft 20,000

TOTALS 110,000

Assets Total cost ( ksh)

Debtors 150,000

Stocks 16,000

Machine 12,000

Cash in hand 50,000

Cash at bank 50,000

TOTALS 143,000

Assets – Liability = Capital

143,000-110,000= 33,000
Capital Ksh = 33,000
5.4 PRO-FORMAT INCOME STATEMENT
Beers apiculture from pro-forma statement for the year ending 2023,2024,2025.

ITEMS YEAR 2023 (KSH) YEAR 2024 (KSH) YEAR 2025 9KSH)
Sales 2590000 3200000 24200000
Less cost of sales
Opening stock 8000 90000 100000
Add purchase 1325000 1350000 1800000
Good for sales 1405000 1240000 1900000
Less closing stock 34700 31700 307000
Gross profit 1930000 2077000 2607000
Less expenses
Salaries and wages 480000 500000 90000
Telephone 6100 7500 6000
Electricity 85000 10000 9000
Insurance 36000 36000 36000
Water 6180 7200 7000
Transport 120000 125000 130000
Dostage 4800 4000 4000
Advertisement 3000 4000 4000
Loans requirement 72600 72600 72600
Deprecation 300000 310600 150000
Interest 1200 1200 1200
Maintenance and 6000 10000 3000
repair
Net profit before tax 53783 39035 40720
16%
Net profit 931935 113665 115590

5.5 PRO-FORMA BALANCE SHEET

Beer coffee Pro-forma balance sheet as at

Items As at 1st Jan 2023 As at 31st Dec 2023

Fixed Assets Ksh Ksh
Machine and requirement 30000 3000,000
Furniture and fitting 25000 30,000
Total fixed assets 55000 330000

Current assets
Stock 300000 650000
Debtors 8000 120000
Cash at bank 110000 80000
Cahs at hand 130000 180000
Total current assets 548000 1030000
 Liabilities
Creditors 100000 200000

Total current assets

Owners’ equity 30000 86000

Long-term liability
Loan from bank 80000 100000

Total liabilities 210000 386000

5.6 PROJECTS CASH FLOW STATEMENT OF THE YEAR ENDING

CASH JAN FEB MAR APRI MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL

FLOW L

Beginning 20000 58760 53170 48190 14100 41280 426200 44520 47150 49680 57900 53920 5526000

Cash 0 0 0 0 0 0 0 0 0 0 0

Sales 4500 5000 6000 55000 62000 75000 80500 82500 84000 86000 88000 28500

Owners 35000 35000

Coop bank

Collection 20000 20000 20000 15000 20000 19000 20000 25000 18000 21000 21000 221000

debtor

Loan 10000 10000

Total inflow 67000 61210 55070 48790 48410 49480 520200 54570 57900 59880 62600 64820 6825500

0 0 0 0 0 0 0 0 0 0 0

Cashout

flow

Purchases 50000 48500 45000 42000 13000 35000 30000 31000 3300 36000 35000 35000 458500
 0

Creditors 30500 30500 12000 10000 15000 10000 18000 1600 810000

Salaries 30500 30500 30500 30500 30500 30500 30500 30500 30500 30500 366000

Loans 500 500 500 500 500 500 500 500 4000

interest

Insurance 400 400 400 400 400 400 400 400 400 400 400 400 4800

Electricity 1500 1000 900 900 14000 1200 1000 800 1500 1200 1200 1200 13800

Transport 500 1000 600 1000 1300 1200 1200 1200 8000

Net cash 58760 55170 48190 41410 41280 42620 445200 47150 49680 57900 53920 56340 5889400

balance 0 0 0 0 0 0 0 0 0 0 0

Accumulate 58760 11193 16012 20153 24281 28543 329950 37710 42678 47868 53260 58894 3513890

d cash 0 00 00 00 00 00 0 00 00 00 00 00 0

5.7 EXPECTED PROFIT ABILITY RATION

A gross profit percentage = gross x 100 / sales
1930000 x 100
2990000
= 64.3 %
Return equity = net profit after tax x 100 /owner equity
831839 x 100
3500
Return on interest = Net profit after tax X 100 / total interest
831839 x 100
500000
= 164.490
5.8 DESIRED FINANCING

ITEM AMOUNT (KSH)

Pre-operational cost 194,150
Working capital 300,000
Fixed assets
Machine and equipments 42,000
Motor vehicle 60,000
Land and building 403,850
Total 505850

APPENDIX

Sales

Pam's Jose's Sarah's Beer's