INTRODUCTION

Prompt global is a limited company in Kenya that has been in operation since 16th march of 2016¸it’s a
company that has been involved in but not limited to importation and distribution of Italian wines, having been
licensed (liquor license No.LI D 07912) by the county government of Nairobi to sell and distribute wine.
Among the satisfied customers so far are voyager hotel in Mombasa. Currently it the sole distributor of
Masseria wines, a company in Italythat produces some of the best varieties of wines

BUSINESS DESCRIPTION

For many and including the owners of prompt global, seeing the labels of naturally prepared wines in various
wine shops that can be accessible by all that love good wine is our ultimate dream. This dream arises from the
love and desire for quality healthy products that not only become a shelf mover but also end up becoming a
mark of quality tested and approved for standards in the country, It is agreed among the wine market players
that there are a lot of avenues for the sale of quality wine that is yet to be utilized based on the last wine
exhibitions that we have had. It is on these past successes that we seek to join the wine markets in East Africa.

BUSINESS ASSUMPTIONS

Prompt Global ltd will aim at offering products which will meet the customers’ needs and will make and sell the
products profitably. These assumptions are based on the success of the past exhibitions and wine tasting events.
The business therefore expects to:
 Provide quality services hence retaining the client.
 Make profits and find ways for fight competition and remain in market
 Sufficient capital to run the business will be available which will enable the business to pay all bills
without difficulties.

PRIMARY OBJECTIVES

The main objective of setting this business will be:

 To provide quality products to make profits and raise standards of living for owners family
 The need of people in the area to experiment with new kind of quality wines and give them a sense of
class
 To carry out extensive marketing through advertisements that will attract the public attention and as well
find networking connections which aim to sell the product online.

MISSION STATEMENT

To replicate the success of quality wines provided in international market to our customers in this region
Vision
To become the best and most preferred wine marketers inKenya

FINANCE/SPONSOR

To undertake the proposed business weintend to obtain money from our personal savings and Investors that are
ready into new markets. The target amount required for the business 2.8 million.

The breakdown of the finance will be as follows:

Amount
Financing
(Ksh.)
1 Personal Savings 700,000.00
2 Investors 2,100,000.00
TOTAL 2,800,000.00

BUSINESS OWNERSHIP

Prompt Global Ltd is a registered company in Kenya, it is opera

BUSINESS LOCATION AND ADDRESS

The business will be located in Karen, Nairobi County situated along Bogani Road within the greater Nairobi
region.
Contact as follows:

Prompt Global supplies Ltd

P.O Box 43597-00100
Nairobi, Kenya
MARKET
To attract customers to buy the products, the Prompt Global supplies Ltd will ensure that extensive marketing
through advertising, laying good marketing and selling strategies is undertaken. Also, to avoid inconveniences
and challenges that come from Government regulations, the business has ensured all procedures are followed
and hence increase in cost and high profits.

INFRASTRUCTURE
Having good accessible roads and communication networks in terms of internet connectivity, electricity, water
connections and excellence security is very important to any business. This makes ease accessibility by
customers which has led to the success of the business and makes it thrive.

BUSINESS VENTURE
Through the Director(s)’s own analysis through market surveys and business consultants, there is a specific and
growing need in the area for the products that Prompt Global supplies Ltd seeks to serve. There is no other
company that imports and distributes Italian wines in the area

MARKETING PLAN

Prompt global Ltdhas segmented its customers into three types of customers; who will mainly be individuals
and to some extent, organizations
1. Domestic customers
2. Institutional customers
3. Commercial customers

DOMESTIC CUSTOMERS

These are the customers from around the area who visit the business premise at their own times to purchase the
products in stores. This will take 20% of the product’s target market.

INSTITUTIONAL CUSTOMERS
The customers include those who are in hotels, restaurants, private clubs and spa centers or even Churches. The
Hotels to be served are voyagers among others. Institutional customers are expected to be 60% of our target
market.

COMMERCIAL CUSTOMERS (WHOLESALERS)

These are customers who buy to resell mostly being distributors, events planners and branded clubs e.g., The
legend club who buy in bulk in order to go and resell at a percentage profit .
This will cover only 20%.

TRANSIT CUSTOMERS

These are customers who will be targeted through special events such as wine tasting exhibition, trade fair
stands and product launches among others.

DISTRIBUTION NETWORK

So far Prompt Global supply has been able to created network with wine and spirits distribution companies for
distribution and retail of our products, below is a list of some of them

1. MEGA WINES & SPIRITS, ATT. MR. GITONGA, gilford@megawines.net, 0722415205 (IS WILLING TO BUY FROM

US). (mention: Sandro, FinAfro).

2. KIOKO ENTERPRISES WINES DISTRIBUTORS, ATT. MR. KIOKO- 0722719609-0726683517 - kiokodepot@gmail.com

(IS VERY WILLING TO BUY FROM US). (mention: Sandro, FinAfro).

3. OUT OF SICILY, MUTHAIGA SHOPPING CENTRE – 0723650909, NebiatTekle-Corino" outofsicily@gmail.com

(owner is Italian Mr. Corino and he is interested about Wines, Pasta, Oil).

4. LILIAN (EX KERRINGET SALES MANAGER) - 0720709065 – 0703555139 (IS WILLING TO COLLABORATE OR BUY

FROM US) (mention: Sandro, FinAfro).

5. maureenbiwott@yahoo.com , (MOMBASA DISTRIBUTORS), ATT. MRS. MAUREEN.(SHE WANT TO BUY FROM MY

LOCAL DISTRIBUTOR) (mention: Sandro, CICAS, FinAfro).

6. ebenezersupplieslimited@gmail.com, ATT. MRS. YUANITA (SHE IS AT THE AIRPORT DUTY-FREE AND VERY

INTERESTED TO COLLABORATE WITH US) (mention: Sandro,Lenah, CICAS, FinAfro).

7. mainandiritu@kainook.co.ke, ATT. MR. MAINA (mention: Sandro, FinAfro).

 8. Nakuru@lakenakurulodge.org, ATTENTION MR. MUYA

9. Ubarikiwehipping@yahoo.com ATT. MRS. LINAH (mention: Sandro, Lenah, FinAfro).

10. ngugi.bena@gmail.com, ATT. MR. GITAU (NAIVAS MANAGER), 0724677001. (mention: Sandro, FinAfro).

11. MR. JAMES KINGORI, 0722412001, (BELLA VISTA and BARRELS WINES & SPIRITS)
islandcuisine.vibes@gmail.com(mention: Sandro, FinAfro).

12. MR. KASSIE WONDI, 0787444333-0707444333, (SHEBA LOUNGE, THE RIGHT WINE FOR HIM IS “ROSAPULIA” and

“BARONE”)ozwondi@yahoo.com(mention: Sandro, FinAfro).

SALES STRATEGY

Prompt global Ltd will identify and measure key profits drivers that will ensure that no increase of costs is
incurred by looking for ways to increase sales revenue as well as decreasing costs and see how the business
can save money.

Prompt global Ltd intends to apply the following strategies to ensure maximum profits:

 Develop new product line by surveying my customers needs and requirements

 Find new customer since customers will help the business to grow
 Improve on customer care
 Increase prices by checking if goods and services are priced correctly as well as formulating strategies
to increase prices without affecting sales
 Price discounts and promotions to increase customer base, e.g. 2-for-1 deals or happy hour
 Retail displays by using effective retail displays to increase sales.

MARKETTING STRATEGY

Branding wine as a quality wine is an essential start. But the most important key to asuccessful strategy is
establishing a long term relationship with new consumers,nad therefore sustaining long term promotion.

Exporters of foreign wine brands have to face different challenge. First of all, the average Kenyan consumer is
not only unaware of the label, he is sceptical of foreign products at first sight.

Further conflict arises between brand loyalty and price sensitivity: consumers may prefer to buy inexpensive
wine of a brand they are familiar with rather than an unknown relatively more expensive wine. For that
reason, the overall market is highly price-sensitive, but imported wines are focused on a niche market.
Another important point, determining the purchasing decision, is that the consumers rely heavily on word of
mouth and popular opinion. Once a label is associated with quality, the customers will opt for it given the
opportunity.

Once established, brand loyalty is a posistive market force. consumers need to feel like

they are getting value from their purchase. We can imagine that the initial steps will be on

developing an effective branding campaign and building brand image to consumers. Ways

to introduce new products to market contacts include attendance at trade fairs, wine

exhibitions, inviting people to visit our premises and working with specialist

journalists to receive exposure. Trade shows, exhibitions and fairs are a

good way to get started on our wine brands.

Only after an initial promotion, the consumer base is educated and convinced of the

superiority of a wine’s origin and quality are individual brands fully able to compete.

Another important key to a successful export strategy is establishing a long term

commitment to building personal relationship.

Even though there are many challenges to face, based on past and current trends in wine consumption among
the public, Masseria wines will be a great addition to the wine selection available locally.

5.2 Market and distribution channel

Our aim is to sell the selected products through wine stores, top restaurants and hotels as well as other
institutions to

create a positive image, a new brand, convincing the consumers of the superiority

of our wine’s quality that is Made in Italy!

5.7 Overall Marketing Strategy

• To communicate the concept and the wine culture to our consumers, creating the perception of
exclusiveness and Italian style

• To gather information about consumers’ tastes and profile to improve our marketing mix.

• To arouse interest through effective promotional activities, such as trade shows, fairs, wine exhibitions

• To educate the consumers on the availability of the different wine brands and labels under the Masseria
wines company.
• To make our products readily available in wine-bars, stores, top hotels and restaurants.

FINANCING
One of the key factors in our business is the pricing of the various wines available to us.

There are three key factors at work in determining the price of a bottle of an imported

wine.

First, the combined import duty, value-added tax and consumption tax for imported wine.

Second, there is the importer’s margin.

Third, there is the margin of retailers or hotels and restaurants. Some retailers may sell at

low prices, but pass on expenses such as promotional fees to importers, thus the price paid by
the consumer for a particular wine. Then there are high-end hotels and restaurants. They
often use excessive markups on beverages, including wine, to help make extra revenue from
their customers.

Our current arrangement with Masseria wines includes high end and low cost wine products
ranging from between 250 to 3,000/= a bottle, at current shipping, duty and tax rates.

The following breakdown gives an overview of the cash flow in a typical day at our Karen
premises

Revenues from typical customer

Average spending per customer on premise visit= 1,200/=

Number of customers and hours of operations= 10 customers per day

• Number of days in operation= 7 days a week; 48 weeks

• Total annual revenues

1,200*10= 12,000/= daily revenues

12,000*7= 84,000/= weekly revenues

84,000* 48 = 4,032,000/= yearly revenues

The following breakdown depicts the cash flow from our Institutional clients
Revenues from typical institutional client
Average spending per client on delivery of order= 25,000/=
Average Number of clients served per week= 2
Number of weeks in operation= 48 weeks
25,000*2= 50,000/= weekly revenues
50,000* 48 = 2,400,000/= yearly revenues

The business will also lay strategies to decrease costs, like for example,
 Decrease inventory – stock control
 Decrease direct costs ensuring the business has right suppliers which will help negotiate for better
prices or discounts
 Decrease indirect costs by trying to minimize waste and errors in the business e.g. reducing marketing
costs by using low costs marketing techniques
 Benchmarking key financials, like compare cost of rent, utilities of similar businesses in the industry
and see that the business is not paying too much

The business will aim at prioritizing the strategies and focus on profitable items and focus on products and
services with highest gross profit margin which will help achieving higher sales target.

Prompt global Ltd aspires to grow and compete with the established businesses and increase its profit margin
through intensive selling of its services. The business will install the technology to be able to access its
customers easily.
Sales projections per County per county, branch, unit or office of the organization (if available)
Provide a projection the total units of Cook stove products you expect to sell during the RBF period (2015-
2018) per county, branch, unit or office.

Value of
Expecte products Expecte Value
d Units sold on d Units of products
sold on Credit sold on sold on
No. County Credit (KES) No. County Credit Credit (KES)
1 Baringo County 13 Kiambu County 7,000 29,260,000
2 Bomet County 14 Kilifi County
Bungoma Kirinyaga
3 County 15 County
4 Busia County 16 Kisii County
 Value of
Expecte products Expecte Value
d Units sold on d Units of products
sold on Credit sold on sold on
No. County Credit (KES) No. County Credit Credit (KES)
ElgeyoMarakwe
5 t County 17 Kisumu County
6 Embu County 18 Kitui County
7 Garissa County 19 Kwale County 5,000 20,900,000
Homa Bay
8 County 20 Laikipia County
9 Isiolo County 21 Lamu County 2,000 8,360,000
Machakos
10 Kajiado County 22 County
Kakamega
11 County 23 Makueni County
12 Kericho County 24 Mandera County
Samburu
25 Meru County 37 County
26 Migori County 38 Siaya County
Marsabit TaitaTaveta
27 County 39 County 4,000 16,720,000
Mombasa Tana River
28 County 1000 4,180,000 40 County 1,000 41,800,000
Muranga TharakaNithi
29 County 41 County
Trans Nzoia
30 Nairobi County 42 County
31 Nakuru County 43 Turkana County
UasinGishuCou
32 Nandi County 44 nty
33 Narok County 45 Vihiga County
Nyamira
34 County 46 Wajir County
Nyandarua West Pokot
35 County 47 County
36 Nyeri County

ADVERTISING AND PROMOTION STRATEGIES

Pricing Discounts
The business will use the advertising to remind the customers that the product is still available and will be
needed in future. The customer will also advertise to make the customers keep in mind during the off-seasons
and maintain top mind awareness.
Prompt global Ltd will use the following modes of advertising-:

The Internet
The business intends to launch a website through which it will advertise its made outfits and fashion trends. The
business will post the items and the types of services that it offers on the website and customers will be able to
e-mail and place an order. They will also be able to make payments through e-banking; they don’t have to go to
the bank.

The Radio
The business will use the radio to advertise its products / services to the customers. This will be done by the
Heat FM; this is because it targets a bigger population of listeners.

Newspapers
The business targets the group who consists of middle level earners who are able to access newspapers on a
daily basis and they can keep the newspaper for reference. It also affordable and most customers will be able to
access it at least three times in a week.

Personal Advertising
This one on one interaction with the customers.Prompt global Ltd will organize to attend the exhibitions and
trade fairs where it will earn a chance to display all the items that it sells.

Brochures
Prompt global Ltd will secure around town to look for a graphical designer who designs brochures at a
reasonable price. The brochures will be kept in business premises for customers to read. The brochure will
contain all the items that the business is dealing in. It will also show pictures of different kind of outfits and
wears. The brochures will be updated from time to time when there are new items to be displayed.

Yellow Pages
Prompt global Ltd will apply for its contact address to be printed in the yellow pages and this will include the
business name, address, location, e-mail address. The subscription fee is quite affordable for the business.
Logo

Advertising and Promotion

SN/O MEDIA AMOUNT
1 Internet 18,000
2 Radio 10,000
3 Newspaper 31,500
4 Personal Advertising 10,000
5 Brochures 20,000
6 Billboards 40,000
7 Yellow Pages 1,000
8 Logo 5000
9 Noticeboard 3000
Total 138,500

DISTRIBITION STRATEGIES

Distribution refers to how the business will make its products or services available to customers. Prompt global
Ltd will use the direct channel to distribute its products or services and will strive to be efficient and effective to
meet the customer’s needs so as to meet its overall marketing objectives.
ORGANIZATIONAL PLAN

This includes an organizational structure of the business, present professional experience and achievements of
people who are to manage the project.
The plan also present the employment plan for the next few years, including the people the business is going to
hire, their skills and experience.

INTRODUCTION

Organization is the activity of putting a working order or arranging people into an efficient system to attain
organization goals. Management is getting work done through other people. It is the duty of Prompt global Ltd
to concerns itself with the direction and control of various activities to attain business objectives. In any given
business/organization, a good and detailed workforce determines the rate of success of that organization.
Prompt global Ltd expects to get well trained workforces which implement all activities of the enterprise so as
to remain competitive in the market.

This chapter details the people who will be involved in the entire management of the business activities. It
details the objectives of the staff plan. It also shows how the appointments of the management team will be
done, what will be their role and how they will be appointed.

ORGANIZATIONAL STRUCTURE

The organization structure of Prompt global Ltd will be flexible to accommodate expected changes in future due
to expansion. Should the organization grow beyond its estimated size, more positions in specialized areas will
need to be added as well as additional site support and office assistance. The responsibilities assigned to the
employees will be clearly defined to enable them carry out the duties assigned effectively.
The team will function as one with constant communication through weekly staff meetings because all jobs are
interrelated. There will be well defined channels of communication both downwards and upward which will
allow each employee to have one supervisor. This will avoid conflict of instruction and will improve
efficiency. The performance of one affects the performance of the others; therefore each team member will
expect nothing but the best from each other. This will create a culture of teamwork among the employees.

ORGANIZATIONAL CHART
The figure below is an illustration of the proposed business organization chart.

Director

Assistant Manager

Accountant Marketing Team

Messenger Casuals

The organization chart will aim at job description and knowing who is responsible to who and his/her
responsibilities for effective running of the business and thus avoiding conflicts among staff.
MANAGEMENT TEAM

This will comprise of the Directors, Assistant Manager/Designs Assistant and an Accountant. The
management’s objectives will be to recruit qualified staff, develop staff through training, develop teamwork
spirit within the employees, motivate staff through good remuneration, utilize employees abilities and skills
through which employees will be stimulated to perform to their highest potential, and enhance employees
creativity and innovation in order for them to attain job satisfaction.

Business Directors
The Directors of the business will be the shareholders. The Directors being the business owners will be in
charge of running all the day to day activities of the business.

Duties and Responsibilities

Generally, the Directors through the board will determine how the businessis run, most of the decision will
arrived to through consensus. Duties and responsibilities will be to:-
 Sourcing and recruiting staff.
  Decision making, planning and controlling of the business.
 Oversee all the financial aspects of the business and handling financial transactions with the clients.
 Carrying out job analysis.
 Monitoring market trends for changes in technology.
 Signing business correspondence and contracts.
 Establish an effective working relationship among his employees by duty allocations to each one of
them,

Other Personnel

Accountant
The business will employ one accountant who will be responsible for all the financial matters of the business
activities. After sometimes, the business will employ a cashier who will relief the Accountant some duties. The
accountant will be answerable to manager.
Duties and responsibilities
o Responsible in determining financial forecasts of the business.
o Monitor expenditure, payments and ensure that funds are properly utilized.
o Keeping stock inventory.
o Stock control and purchasing products when the reorder level is due.
o Documenting all aspects of the business finances and other records
o In charge of bank transactions including cashing cheques, depositing cash and withdrawals.
o Responsible for internal and external enquiries related to the business
o Responsible for paying the staff salaries
o Typing of all the correspondences and responding to the urgent matters on behalf of the manager.

Qualifications
o Holder of CPA1 certificate
o Experience of at least 3 years in the same field.
o KCSE Grade C or equivalent
o Good communication in English and Kiswahili
o Must have certificate of computer from a recognized institution
o Certificate of good conduct
Remuneration
We shall have one Accountant will earn a monthly basic salary of Ksh.12,000.00

Marketing Team
These are persons who will promote the transfer of goods and services from the producer and provider to the
consumer. As well as the transacting between the business and its customers whereby services and/or products
are provided in return for payment. Prompt global Ltd will have one (1) person marketing and one (1) in sales
department. Sales will foresee the activities and resources of the business.

Duties and responsibilities

o Designing advertisement and commercials for various media
o Organizing for exhibitions
o Sourcing of new clients
o Presenting proposals to clients and doing follow ups with them.
o Maintaining good public relations with customers to ensure good relationship.
o Doing customer survey i.e. finding out from them what they like and areas that need improvement in the
services offered.

Qualifications

o Holders of certificate in sales and marketing

o KCSE Grade C-
o Between 25-30 years
o Good communication in both written and spoken English and Kiswahili
o Certificate of Good Conduct

Remuneration
Prompt global Ltd will engage two(2) persons in marketing and sales department who will earn a monthly basic salary of
Ksh.10,000 each.

Messenger
The messenger will be in charge of the reception desk and deliveries. The job entails general cleaning and
running errands. Directly reports to the site manager.

Duties and Responsibilities

o In charge of delivery of letters and quotations to clients.
o Receiving calls at the reception desk.
o Maintaining a visitor’s log book.
o Keeping a record of outgoing calls.
o Maintaining a delivery book.
o Opening and closing the premises.
 o Cleaning the office including dusting furniture and equipment.
o Making tea.

Qualifications
o ‘O’ Level certificate – grade ‘ D’
o Fluent in Kiswahili and English
o Certificate from Department of Public Health - Physically and medically fit
o Certificate of Good Conduct
o 30 – 45 years of age

Remuneration
The business one (1) messenger who will earn a monthly basic salary of Ksh.7,500.00

Casuals
These will be hired by the enterprises on casual basis which will be temporary to assist in any overwhelming
work. They will directly report to the Assistant manager.

Duties and responsibilities

o Maintain cleanliness in and around the premises grounds
o Offloading materials from delivery van.
o Packing the finished clothes for delivery
o Maintaining a delivery book
o Running simple business errands.

Qualifications
o Form four certificates – grade ‘D’
o Certificate of Good Conduct
o Basic knowledge in business
o Be able to communicate well in English and Kiswahili

Remuneration
Prompt global Ltd will engage two (2) casuals who will earn a monthly basic salary of Ksh.5,000.00 each.
NB: Salaries in cadres will be reviewed once the business picks and this will depend on the team’s hard work.
Other allowances will also be considered, like house allowance, commuter allowance.

Summary of Salary Structure

No. of Salary per
Designation Employees Month (Kshs.) NHIF NSSF Net Pay
Director 1 20,000 200 100 17,000.00
Manager/Designs Assistant 1 13,500 160 80 13,260.00
Marketing team 2 20,000 240 120 19,640.00
Messenger 1 7,500 80 60 7,360.00
Casuals 2 10,000 80 60 9,860.00
TOTAL 8 83,500 900 500 69,400.00

RECRUITMENT, TRAINING AND PROMOTION

Introduction
Recruitment is a fundamental management of human resource function in an organization. It involves locating
and attracting potential employees to apply for certain jobs in the organization. It is not employing or
employment but search for qualified people to apply for existing job positions or newly created ones.

Recruitment
Recruitment is the process of attracting job candidates with the right characteristics and skills to fill job
openings. The recruitment process for the Prompt global Ltd employees will be conducted by the manager after
advertising for the vacancies. This will be done after potential employees have first sent out their application
letters after which the selected ones will be invited for the interview.
Recruitment of employees will be done in various ways: adverts will be through local daily’s, meetings and
adverts also placed at strategic places e.g on gates of churches, learning institutions, shopping mall notice board
etc. This will be done at least one month before the commencement of the business.
All interested candidates will apply to the manager. The applicants will be short listed and those successful will
be notified through their postal addresses/phones two weeks prior to the commencement of the business. The
appointment letters among other things will indicate the salary and terms of payment and job specifications. The
total cost of recruitment will be Ksh.10,000/=. The buget cost for the recruitment exercise is as follows:
Expenditure
Description Date (Ksh)
1 Advertisement 15 March 2016 3,500.00
2 Interviews 25 June 2016 2,400.00
3 Appointment/Recruitment 2December2016 2,500.00
4 Miscellaneous - 1,500.00
Total 10,000.00

The owner of Prompt global Ltd will look for a recruitment consultant to assist in getting the qualified staff for
various the posts. As for the watchman, she will hire a watchman from cornerstone Security Firm.

Training
Training is any procedure intended to foster and enhance learning among employees. Training is a process of
learning a sequence of programmed behaviors. It is the application of knowledge which gives an awareness of
the rules and procedures to guide employees’ behavior.
Employees will be given ample opportunity to become oriented to the firm and then later they will be trained
and developed in areas of customer care to start with before moving further to their areas of specialization. The
employees will also be having induction courses i.e. on the job training. They will be trained on customer care,
stress management and basic computer skills. These will be arranged with professionals in those areas by the
management and will be done yearly

After recruitment of employees, they will undergo induction training. Induction training is arranged internally
for new employees to be introduced to the firm and to the job. A new employee must be shown where his place
is in the organization.
The induction course which will last about one week will cover:-
o Brief history of Prompt global Ltd
o The products, present organization and the work of different personnel and sections
o The rules of working, safety and health regulations
o Human resource policy regarding discipline, education and training at the expense of the organization
and promotion, holidays and date of payment of salaries and wages

Promotion
Promotion is a change of assignment from a job at a lower level to another at a higher level within the
organization. It will be based on merit and qualification. This will be determined by the regular assessment of
employees’ performance. Promotion will therefore be awarded in terms of salary increment. This will depend
on an employees work output and the profits the firm will have made within a particular year.

Remuneration and Motivational Incentives

For employees to reach their maximum and do their best they have to be motivated. Sound remuneration and
incentives scheme ensures that business is developing because the workers take the business as though it was
their own. Prompt global Ltdintend to offer the best to its employees. This will be done though giving the
employees special staff prices which will be lower compared to other customers. Annual parties and rewards to
the best performer, transport allowances, improved working environment, training and promotion and medical
allowances. Communication between top management and employees will be vital for smooth running of
business through regular meetings, notices, memos and suggestions through the suggestion box.

Remuneration
Remuneration refers to the total reward that an employee or worker gets in return to his/her output to an
employer. This includes the basic salary and other benefitsPrompt global Ltd will offer satisfactory salary
which it can be able to afford. The salary will differ from highest to lowest employees and it will regulate the
salaries as becomes stable.

Incentives
Incentives can be defined as payments linked to the achievement of previously set targets that are designed to
motivate people to achieving higher levels of performance. The targets are usually quantified in such terms as
output or sales. Prompt global Ltd will offer bonuses at the end of each year depending on how it has
performed. Transport facilities will be offered if and when the employees work late. Insurance cover will also
be bought for the employees. The manager will organize for the employees to have 10.00 O’clock and 4.00
O’clock tea at the place of work and also lunch. This will keep them to work the whole day without having to
close the business and thus it will stimulate them to work harder.
The employees will be offered salary advance on the 15th day of every month and they will be given a day off
every two fortnight each.

Motivation
The employees will be given incentives to motivate them to enable the business expand. These will include
overtime allowances i.e. extra payment for working on Sundays and Public Holidays, hours worked after five
o’clock and during weekdays. Salary advance will be given to employees on request. When the business
makes a high profit, the employees will get bonuses. The management will arrange for a bonding party for the
entire employee at the end of every year. This will improve the relationship among them.
The employee will be allowed to register with Prompt global Ltd Sacco which will help them make some
savings which can earn them loans which will improve their living standard.

Discipline
Discipline procedures will be taken against any employee who violates the firm’s ethic. The management will
have its internal disciplinary committee to handle such issues. The employees affected will be summoned by
the management and served with a warning letter and ask to write a show cause letter why he/she should not be
dismissed. If the employee reform’s he/she will be retained with a stern warning that if he/she repeats the same
offence will be dismissed from his/her job and will not be entitled to any benefits.

Performance Appraisal
For the employees to be remunerated appropriately, the company will consider using job demand comparison
method. The attributed to perform direct jobs are compared, reporting time and customer relations. Finally,
monetary values will be assigned directly to each of the attributes as demanded by the job. Each attribute will
have a point scale of 1 -3 as below.
 1 - Low
2 - Average
3 - High

The table below illustrates an example of an appraisal

Employee Efficiency Reporting time Customer
relations
Anthony Mwai 2 4 4
Caroline Akinyi 4 3 5
Dennis Mutuma 5 2 3
Wycliffe Wafula 6 2 2
Rachael Mwende 3 3 5

Communication channel within the business

There will be a two way communication channel within the business, both upward and downward
communication. Downward communication will be from the Manager to the employees whereas upward
communication will be from the employees to the Manager. This type of communication will give the
employees freedom of expression where there are issues to be tackled and need prompt attention.

Terms and conditions

The mode of payment will be through cash. All the employees will be encouraged to have bank accounts in
future for ease of payments. Employees will also be encouraged to contribute towards NHIF for medical cover
and appropriate pension schemes for retirement benefit.

Staff welfare
Lunch will be provided to the employees. This will be to ensure that employees are always within the working
area. While taking their meals together, employees will exchange views on their work and as such can assist
one another in areas where one requires assistance. The exchange of views is healthy and may lead to business
progress.

Legal Requirements of Business and Employees

Prompt global Ltd will require a Trading License in order to operate. The license will be obtained at a fee of
Kshs.7, 630.00 which will be issued by Nairobi County, Licensing Section. A permit will also be required to
show that Prompt global Ltd have been licensed to deliver and deal in the designing business. The permit will
be renewable on a yearly basis and it will be issued by the Nairobi County offices.
The business will also be affected by the County laws. Garbage will be disposed of by hired service providers
on daily basis at a fee payable to them monthly. This will enable proper hygiene and clean environment.
EVALUATION AND DEVELOPMENT
Evaluation is an assessment of performance of employees, product and services.

Employees’ Evaluation
Prompt global Ltd will evaluate its employees through performance appraisal which will be done yearly. For the
employees to be remunerated appropriately, the company considers using job demand comparison method. The
attributes to perform direct jobs are compared, reporting time and customer relations. Finally, monetary values
will be assigned directly to each of the attributes as demanded by the job. Each attribute will have a point scale
of 1 -3.
1 - Low
2 - Average
3. - High

Product/Service Evaluation
Prompt global Ltd will assess its service performance by contacting the customers either face to face directly or
through phone calls to establish their satisfaction. The customers will be looking for quality services and hence
they expect the best. The services will be affordable i.e. customer friendly. The business will be open from
7.00 a.m. – 7.00 p.m. This is because most of the employed people pass through the Street when going to work
in the town Centre. The business will also not close during lunch hour i.e. from 1.00 p.m. to 2.00 p.m. because
many of our customers who will be working are expected to visit the business during this hour.

SUPPORT SERVICES
The business will get the following services from various places depending on how well they offer the services
to the business.

Telephone services
Telephone and postage services will be offered by Telkom Kenya for effective communication with the
suppliers and customers. Mobile phone providers will be Safaricom and Airtel. This will make it cheaper to
communicate with clients who have subscribed for their services. A Deposit of Kshs.2,500 for Telkom and
mobile phone credit cards worth 2,000/= per month will be required for communication purposes.

Electricity
The premises already have electricity supplied by Kenya Power and Lightning Company (KPLC). A monthly
bill will be paid to them depending on the company’s consumption. This will enable the business use
computers and for lighting purposes. The deposit required will be Kshs.2,500=/

Water
Water will be obtained from Nairobi Water and Sewage Company and a monthly bill will be paid depending on
the company’s consumption. The deposit to be paid will be Kshs.1,000/=.
Nairobi Water and Sewage Company
P.O. Box 20015-00100
Nairobi

Banking services
They will be provided by Equity Bank which is along Kenyatta Street. They offer loans at very fair interest
rates and a minimum operating balance is 1,000/= for a savings account.
Equity Bank
Ridgeways Branch
P.O. Box 9300-00100
Nairobi

Transport
The business will purchase a second hand van for all its deliveries, and when the business will need to deliver in
large quantities, vehicle such as a canter (covered) will be hired. The van will be bought at Kshs.450,000/= by
Prompt global Ltd.

Insurance cover
Prompt global Ltd will engage National Hospital Insurance Fund (NHIF) for medical insurance cover for its
employees.
The employees will contribute a fixed sum to the NHIF, which will be deducted from their salaries. The
maximum contribution stipulated is Kshs.500/= per month. These contributions are meant to offset the costs of
medical treatment but they only cover a fraction of actual costs.

Auditing services
Prompt global Ltdwill consult Mugambi Auditing firm to audit its accounting and bank transitions. The auditing
will be done once a year, in June. The business auditors will be involved in the designing and implementation
of control standards, programme check and clerical control.
All the accounting and security systems purchased will be checked to ensure adequate audit trial. Auditing
services will prevent forgery and theft.
Mugambi Auditing Firm
P.O. Box 30044-00100
Nairobi
Consultancy
As the business grows, it will require advice on management from consultants to enable Prompt global Ltd
know areas that needs improvement in terms of growth and profits. The business will therefore seek the
services from small business skill consultants, which is a reputable firm and are situated in Milestone House
within Ridgeways at consultancy fee of Kshs.200 per hour when the services are needed.

Legal services
In Kenya every business has to be governed by laws, regulations and decisions. Prompt global Ltd will adhere
to rules and regulations as required by the government to ensure protection of the business, workers and
consumers. The Manager is required to be conversant with these laws and regulations. Prompt global Ltdwill
therefore in its business engagement, seek legal services from Muchemi and company advocates as their legal
experts wherever they are making any decisions.
Muchemi and Company Advocates
P.O. Box 20090-00100
Nairobi

LICENCES, PERMITS, GOVERNMENT REGULATIONS

Name Search
Prompt global Ltd will obtain approval for the company name from the Registrar of Companies at Kshs.700/=.
This will be in order to avoid the company using a name that already exists for another business.

Declaration of Compliance (form 208) is signed before a Commissioner of Oaths

The advocate incorporating will be required to sign a Company Form 208 which accompanies the documents to
the Registrar of Companies. This form is a Declaration of Compliance with the requirements of the Companies
Act. A fee of Kshs.1,200/= is required.

PIN Number
Registration with the Tax Department for a PIN Number will be done at the Kenya Revenue Authority Offices
at Times Towers Building at no charge.

Business Permit
A business permit will be obtained from the Nairobi County Government offices, Licensing Department at a
cost of Kshs.3,000/=.

Company Seal
A company seal will be obtained from the Attorney General Chambers at a fee of Kshs.2,400/= after the
certificate of incorporation has been issued.
National Social Security Fund (NSSF)
NSSF provides the employee with a lump-sum retirement benefit. Prompt global Ltd will pay a standard
contribution of approximately 1% of salary subject to a maximum of Kshs.450/= per month. The contribution
will be deductible from the employee’s salary.

National Hospital Insurance Fund (NHIF)

The employees will contribute a fixed sum to the NHIF, which will be deducted from his/her salary. The
maximum contribution stipulated is Kshs.500/= per month. These contributions are used to offset the costs of
medical treatment but they only cover a fraction of actual costs.

OPERATIONAL PLAN

These are step by step procedures that the business shall engage in importing products. It is an explanation
of the personnel that will be offering the service, the facilities and the strategies the business shall employ.

Prompt global LtdLtd being largely a service company, stock will highly be minimized. In most cases the
business will supply products to its potential customers who are around Karen and its environs. The
products sold will be of high quality and will be transported to customers by use of the business van, or in
case of large supplies the business will hire a canter from Sosi Company located along karen before the
business is able to buy a large vehicle. When customers place an order, the products (wines) will be
transported to them directly.
PRODUCTS/SERVICES DESIGN AND DEVELOPMENT

The business is going to choose and employ the staff who will act as the suppliers and the manufacturers in
the business. They are going to use a van to supply the goods to the customers. The employees will design
the garments from the bought material and pieces of cloth.

Prompt global Ltd will have a unique business logo which will be shown on the business documents like
business letter heads, business card and on advertising and direction posters.

Prompt global Ltd

P.O Box 1540-00900
Nairobi
Tel: +254 20-2689254
Cell: +254 0726771077
Email:
Website:

Prompt global Ltd will endeavor into choosing fashion design software, like digital fashion Pro, virtual fashion,
fashion toolbox, which make things easy and which will be affordable and suitable for making all types of
clothes in terms different fabrics. The business will be careful in setting the right prices which every customer
will be willing to pay foras well as finding a business partner who can take care of the sales side of the business
while the director get on with the creative stuff.

Prompt global Ltd will work on developing its own recognizable style by developing skill and instincts in order
that the business can create its own successful style by applying the importance of brand identity and using
styles to make its designs more unique than others in the market. The business will develop a plan for fashion
design training and courses for its employees which will offer different training options available for fashion
designers. The business will seek to find target market in the fashion industry by identifying the ideal customer
base for our new fashion business and also will seek legal options that the business will use to protect its fashion
designs from being copied.

Prompt global Ltd will aim at making clothes to fit all sizes, i.e. adjusting the clothing designs for different
sized customers and on the advantages of designing for larger people. The business will seek to understand
workplace clothing so that it can get involved in designing workplace wear for all kinds of different corporate
and factory environments. To make our designs more unique and relevant, Prompt global Ltdwillseek to have a
signature wines print and give a unique taste.

FURNITURE
 UNIT
TOTAL
ITEM QUANTITY CAPACITY COST SUPPLIER
COST(ksh)
(Ksh)
Printer table 1 2,000 2,000 Tuskys S/market
Computer table 1 - 3,000 3,000 Viable Décor Ltd
Office tables 4 - 1,500 4,500 Viable Décor Ltd
Ironing table 1 - 1,400 1,400 Viable Décor Ltd
Office Chairs 10 - 500 5,000 Viable Décor Ltd
Workshop table 2 1,200 2,400 Viable Décor Ltd
Executive Desks 1 800 800 Viable Décor Ltd
Executive Chairs 4 500 2,000 Viable Décor Ltd
Receptionist Chair 1 700 700 Viable Décor Ltd
Ironing board 1 1,050 1,050 Tuskys
Supermarket
Needle velvet board 1 - 1,200 1,200 Cloths Dealers Ltd
Total 24,050

CONSUMBLES
Item Quantity Unit Cost Total Cost Supplier
(Ksh) (Ksh)
Dressmakers tracing 10 rolls 250 2,500 Cloths Dealers Ltd
paper
Tailors chalk 1 pkt 300 300 Cloths Dealers Ltd
Tailors wax 2 bottle 600 1,200 Cloths Dealers Ltd
Spray bottle 1No 350 350 Cloths Dealers Ltd
Pencils 1 pkt 1200 1,200 Savannis bookshop
Note Books 5No 250 1,250 Savannis bookshop
Pen 10No 10 100 Savannis bookshop
Books (hand books) 5No 100 500 Savannis bookshop
Printing papers 5 reams 100 5,000 Savannis bookshop
Printer cartridge 2No 3,500 7,000 Rotek Technology Ltd
Business Rubber Stamp 1No 800 800 Seal Honey Ltd
Cash Register 1No 1,000 1,000 Savannis bookshop
TOTAL 21,200

OTHER EXPENSES
Cost Per Month
Item Supply
(Ksh)
Rent Milestone agency 15,000
Water Nairobi water and sewerage 1,000
Electricity Kenya Power Lighting Co. 2,500
Telephone Telkom 4,000
Transport Sosi transporters 4,000
Miscellaneous 2,000
TOTAL 28,500

LAYOUT PLAN
The premises are in a permanent building with rooms for renting. The business is on a leased room facing
the front so it is an open place where it can be accessible and visible to everyone. Passersby will be passing
through Prompt global LtdLtd as they go about on their businesses.

The business will operate in a five roomed premises to minimize on the cost of rent. These will include the
Director’s Office, Managers/Designs Assistant office where all transactions will be handled, the workshop
cum store where products and other equipment will be stored after purchasing. The workshop will also be
used in the production process. There will also be another room for the Marketing team and a section for
the Accountant. The front area will be occupied by the Receptionist. The space will be adequate since there
are not so many activities. The area also has a display window where finished garments will be displayed.

The business premises has room for expansion as the back side is still under construction and we intend to
take more rooms as soon as the building will be completed in the next two years.
The business proposed organizational structure is shown in the next page.
The Figure below illustrate the Proposed Layout for Prompt global

Toilets
Kitchen
Directors Office
Messenger
Reception Office

board room Store

Wine tasting area

Accountant

Sales and Marketing

Departments Display Room

Customer’s Reception
and Service Area Washrooms

Parking Area

Ltd

OPERATIONAL PROCESS
 These are the operation processes that the business will undertake from the time of importation of wines till
the time they reach the customer. This will include placing orders, transportation, delivering of goods,
packing and display.

Deliveries will be made immediately to the respective customers. Payment can either be made on delivery
or on order depending on the agreement that will have been reached. If there are finished clothes for sale a
few will be put on display. The supervisor will regularly take stock of the number of pieces remaining so as
to place orders in good time.

The counter will be placed at the receptionist desk near the exit so that the customers can pay after selecting
the wine bottles they want to buy. The cash register will be controlled by a cashier assisted by the
Accountant in her/his absence. The accountant will enter all the days’ sales in the cash book.

For Prompt global Ltd to prosper, each aspect of the business has to be taken into consideration with diverse
measures. Prompt global Ltdwill aim to give its staff the best so that they are motivated to perform to the
best of their abilities. The business intends to operate its business full-time 0800hrs – 0800hrs from
Monday to Saturday. For effective and proper production to take place certain steps have to be followed.
The Business will devise a method that will ensure that goods pass through proper process; from the time
buying materials up to the time of the completion.
Steps to taken in the production process is shown in the next page.

FACILITIES AND EQUIPMENT

These are the resources needed by the business to ensure the smooth flow of work. The purchase of
equipments to be use will be done prior to the commencement of the business and ensuring the business
runs without any interruptions.

There are long-term assets which will help the business to prevail.

Tables: The business will have 4 office tables which will be used by the Director, Designs Manager,
Accountant and Receptionist.
 Chairs: There will be many types of chairs which will be used in the enterprises e.g office, visitors chairs,
reception are seats to be used by the clients who will visit the business premises while awaiting the services,
etc

Van: This is the vehicle which the business will use to transport Products to their destinations.
Scissors: these will be used for cutting into pieces of clothes in different designs.

Assets Capacity
1 Executive tables (medium) 4
2 Reception desk (medium 2
3 Workshop table (Large) 2
4 Executive chairs (orthopedic) 4
5 Reception chairs (ordinary) 2
6 Clothes cabinets (Large) 2
7 Visitors chairs 4
8 Reception seats (7 seater set) 1
9 Van 1
10 Kitchen table (small) 1

Capacities utilization

RULES AND REGULATIONS GOVERNING THE OPERATIONS

The Directors will see that laws are maintained and adhered to as stipulated by the government. Licenses
and other matters related to the workers will be dealt with accordingly so as to put off any interference to
breach of the law.

If Prompt global Ltd breaches conduct laid by the government, the business will render being penalized. In
case employee’s health affairs are not looked at, it means non-compliance to the already stipulated
regulations and therefore the enterprise will be liable to heavy fines. This will lead to great loss in finances
which could have been used to enhance and develop the business.

Government Regulations
The Director(s) of the business will be familiar and adhere to the following government regulations that
will affect the business.
 Business registration – The business will be registered under the name Prompt global LtdLtd according to
registration of companies Act.

Trading License – A trade and business license will be acquired and renewed every year in order to
operate smoothly. This will be applied from the Ministry of Trade and Industry at a fee of ksh.5000/= per
year.

Public Health Act cap 242 – Under this Act, the Workers’ Health will be taken into consideration. This
includes providing proper sanitary facilities and good working conditions. Also employees will undergo
vaccination through the Department of Public Health. This will prevent any tetanus germs. Before
Operations begin, the business premises will be painted and then inspected by Department of Public Health
who will in turn issue a certificate of compliance.

Statutory deductions: NHIF, NSSF and PAYE which largely depends on salary scale and will be
deducted directly from the employees pay and remitted directly to the respective organizations. This will
be done monthly without any delay.
Value Added Tax (VAT) – This tax will be surrendered to the Kenya Revenue Authority yearly.

Environmental Regulations – Prompt global Ltd will place litter bins at appropriate places within the
premises which indicate “keep the environment clean”. It will also have a disposal pit which will be used
for burning the remains of material pieces and other dirt from the production area, office papers, kitchen
litters.

Business Permit
A business permit will be obtained from the Nairobi County offices, Licensing Department at a cost of
Kshs.1,500/=.

Company Seal
A company seal will be obtained from the Attorney General Chambers at a fee of Kshs.2,500/= after the
certificate of incorporation has been issued.

Internal Regulations

For Prompt global Ltd to run smoothly, rules and regulations will be stipulated so that workers may work
according to the business laid down rules. Prompt global Ltdintend to adopt the following regulation code
which supposedly is adhered to by all employees regardless of their ranks:

o Every employee must abide by the business safety regulations.

o All member employees will respect the property of the business.
 o Every employee will act responsibly in discharging his/her duties
o Employees will be warned and reminded that the above coded rules are very paramount for the
prosperity of the enterprise and anybody who breaches them tight measures despite post in the
enterprise will be taken against them.

For the codes to be effected fully each employee will sign a form as a show of acceptance and
allegiance to them.

PIN Number
Every employee will be expected to obtain a PIN from the Tax Department at the Kenya Revenue
Authority Offices at Times Towers Building at no charge. All employees will be liable for monthly
deductions for purpose of itax remittance.
Our financing (fund raising) strategy
.

The following is our strategy to finance the above costs: (include details of the sources and confirmation of
availability of the required funds). For each category include the estimated total funds required to sustain the
demand projected in this proposal).

Item Parameter
(1)  Capital to support the delivery of the technology solution to the customer (e.g. LME
financing, supplier payment arrangements and terms of purchase of the products from the
supplier by our organization or our customers).
Transport-25000*200=5000000
Handling-10*25000=250000
Sales person(s) 4: 4*35000*36mths=5040000
Supervisor: 1*40*36mths=1440000
Data entry clerk:1*20000*36=720000
Marketing:100000*3yrs=300000
Insurance : 4.5% of 7000000=3150000

(2)  Costs of implementation

Transport-25000*200=5000000
Handling-10*25000=250000
Sales person(s) 4: 4*35000*36mths=5040000
Supervisor: 1*40*36mths=1440000
Store keeper :1*20000*36=720000
Data entry clerk: 1*20000*36=720000
Marketing:100000*3yrs=300000
Insurance : 4.5% of 7000000=3150000
Totals:16620000

(3)  Costs of monitoring of activities and recovering the loans

(4)  Others (specify)

Marketing and outreach strategy and actions
Who will be involved in marketing the financing/
Prompt global Ltd

a) What marketing tools will be used?

Write ups
Word of mouth
Incentives (commission)

b) Which specific marketing partners will be used (e.g. radio stations, , etc.)
hotels
events organizers

c) Partners – if any, and their roles

CBO
Saccos

Networking and outreach strategies

hotels
events organizers

M&E and reporting strategy and actions

CHECKLIST 1
Viability of our credit product strategy Incentives strategy and actions
Our cost recovery strategy with the RBF is as follows:

Item description Value

Total number of units of sales expected 25000 A
Incentive rate in the area we are targeting 200@stove B
Total incentives expected 5000000 AXB=C
Total costs related to additional actions to reach
additional loan portfolio 10733600 D
Net costs after RBF incentive is paid 5733600 D-C=E
Total revenue expected from the loans issued 34500000 F
Net benefit for our organization (estimated) 28766400 F-E = G

(If G is negative, reconsider application or strategies).

FINANCIAL PLAN
INTRODUCTION

A Financial Plan determines the financial position of the business and requirements of the business in terms of
money available, how much to be spent.

It is important to plan for financial in order to obtain adequate funds which will sustain the business and enable
it to achieve maximum profits and improve the business value. This may include;
(i) determining capital requirements
(ii) determining capital structure
(iii) framing financial policies with regards to cash control, lending and borrowing
(iv) inadequacy of finances
(v) sourcing

FINANCIAL REQUIRMENTS (START UP CAPITAL)

The proposed capital required will be Ksh.800,000.00 from personal savings for Prompt global Ltd to
commence its operations. However, there is a proposed safety net of a loan facility of Kshs. 2,000,000.00 in
case of a cash shortage as shown below.

No Source Amount
(Ksh)
1 investors 1,000,000.00
3. Personal savings 800,000.00
TOTAL 2,800,000.00

PRE-OPERATIONAL COSTS

 These are the costs incurred before the commencement of the business operations. They include cost of
all items that must be purchased or paid in advance and cost of all preparations and installations that are
necessary before the operations start.

ITEM/OVERHEAD COST (KSHS.)

Renovations- paintings 10,000.00
Tools and Equipment 62,710.00
Furniture and fittings 24, 050.00
Water 1500.00
Legal Fee 2,000.00
Registration ans name search 8,330.00
Licenses/Permits/certificates 7,200.00
Logo 5,000.00
Company seal 2,500.00
Advertisement and promotion 133,500.00
Transport 4,000.00
Rent 15,000.00
Business and Trading licence 9,500.00
Telephone 4,000.00
Electricity 2,500.00
Stationeries 5,000.00
Recruitments expenses 10,000.00
Miscellaneous 2,000.00
Total 305,940.00

WORKING CAPITAL
This is the amount of capital required for the day to day running of the business. It means estimating how much
the business required paying for the expenses incurred by the business.

Working Capital = Current Assets – Current Liabilities

CURRENT ASSETS
Ksh.
Cash in hand = 60,000.00
Cash at Bank = 1,000,000.00
Stock = 200,000.00
Debtors = 200,000.00
Prepayments = 50,000.00
TOTAL = 1,510,000.00 1,510,000.00

CURRENT LIABILTIES
Ksh.
Creditors = 80,000.00
Accrues = 30,000.00
Short term loan = 60,000.00
TOTAL = 170,000.00 170,000.00
1,340,000.00

PROFORMA INCOME STATEMENT

PROMPT GLOBAL LTDLTD. - PROFORMA INCOME STATEMENT

DESCRIPTION 2017 2018 2019

Sales
6,120,000.00 6,120,000.00 6,120,000.00

Opening Stock
127,500.00 127,500.00 127,500.00
Purchases
3,060,000.00 3,060,000.00 3,060,000.00
Goods available for sale
3,187,500.00 3,187,500.00 3,187,500.00
Less Closing Stock
75,000.00 75,000.00 75,000.00
Cost of Sales
3,112,500.00 3,112,500.00 3,112,500.00

Gross Profit
3,007,500.00 3,007,500.00 3,007,500.00

Operating Expenses

Businss Permit 3,000.00 3,000.00 3,000.00

Trade license
5,000.00 5,000.00 5,000.00
Recruitment expenses
10,000.00 10,000.00 10,000.00
Consumables
234,600.00 234,600.00 234,600.00
Communication
24,000.00 24,000.00 24,000.00
Electricity
30,000.00 30,000.00 30,000.00
water
12,000.00 12,000.00 12,000.00
Telephone
48,000.00 48,000.00 48,000.00
Transport
48,000.00 48,000.00 48,000.00
Advertising
138,504.00 138,504.00 138,504.00
Payroll Expenses
990,000.00 990,000.00 990,000.00
Insurance of Motor Vehicle
20,250.00 20,250.00 20,250.00
Repairs and Maintenance
24,000.00 24,000.00 24,000.00
Depreciation - Motor Vehicle
45,000.00 45,000.00 45,000.00
Depreciation - Furniture and
Equip. 8,980.00 8,980.00 8,980.00

Total Expenses
1,641,334.00 1,641,334.00 1,641,334.00

Net Profit Before Tax

1,366,166.00 1,366,166.00 1,366,166.00

Tax Provision (16%)

218,586.00 218,586.00 218,586.00

Net Profit After Tax 1,147,580.00 1,147,580.00 1,147,580.00

5.4 PROFORMA BALANCE SHEET
 TAMIA DESIGNERS LTD. - BALANCE SHEET

PARTICULARS YEAR
2017 2018 2019
ASSETS

CurrentAssets
Cash at Hand 100,000.00 100,000.00 100,000.00
Cash in Bank 388,236.00 1,461,646.00 1,461,646.00
Net accounts receivable 10,000.00 15,000.00 25,000.00
Stock 75,000.00 75,000.00 75,000.00
Prepaid expenses 6,000.00 6,000.00 6,000.00
Total Current Assets 579,236.00 1,657,646.00 1,667,646.00

Fixed Assets
Motor Van 405,000.00 360,000.00 315,000.00
Tools and Equipment (net) 57,880.00 51,450.00 45,020.00
Furniture & fixtures (net) 23,000.00 20,450.00 17,900.00
Total Net Fixed Assets 485,880.00 431,900.00 377,920.00
TOTAL ASSETS 1,065,116.00 2,089,546.00 2,045,566.00

LIABILITIES

Current Liabilities
Creditors
Tax Payable 218,000.00 218,000.00 218,000.00
Total Current Liabilities 218,000.00 218,000.00 218,000.00

Long-term Liabilities
Retained Earnings 47,116.00 1,071,546.00 1,027,566.00
Capital 800,000.00 800,000.00 800,000.00
Total Long-term Liabilities 847,116.00 1,871,546.00 1,827,566.00

TOTAL LIABILITIES 1,065,116.00 2,089,546.00 2,045,566.00

5.5 PROJECTED CASHFLOW STATEMENT
TAMIA DESIGNERS LTD. - CASH FLOW STATEMENT FOR YEAR 1 ( 2017 )

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

Beginning Cash Balance 800,000.00 (224,652.00) (94,844.00) 34,964.00 159,772.00 289,580.00 419,388.00 549,196.00 674,004.00 803,812.00 933,620.00 1,063,428.00
Cash Inflows (Income):
Loan Proceeds
Sales 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 5,610,000.00

Total Cash Inflows 800,000.00 285,348.00 415,156.00 544,964.00 669,772.00 799,580.00 929,388.00 1,059,196.00 1,184,004.00 1,313,812.00 1,443,620.00 1,573,428.00 5,610,000.00

Cash Outflows (Expenses):

Registration Expenses 2,150.00 2,150.00
Businss Permit 3,000.00 3,000.00
Trade license 5,000.00 5,000.00
Company Seal 2,400.00 2,400.00
Recruitment expenses 10,000.00 10,000.00
Consumables 21,200.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 234,600.00

Deposits
Telephone 2,500.00 2,500.00
Electricity 2,500.00 2,500.00
Water 1,000.00 1,000.00

purchases of raw materials 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 3,060,000.00
Communication 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Electricity 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 30,000.00
water 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00
Telephone 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
Transport 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
Advertising 59,792.00 5,792.00 5,792.00 10,792.00 5,792.00 5,792.00 5,792.00 10,792.00 5,792.00 5,792.00 5,792.00 10,792.00 138,504.00
Payroll Expenses 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 990,000.00
Insurance of Motor Vehicle 20,250.00 20,250.00
Repairs and Maintenance 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Miscellaneous 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00

Other Cash Out Flows:

Capital Purchases
Purchase of Motor Van 450,000.00 450,000.00
Purchase of Tools and Equipment 64,310.00 64,310.00
Purchase of Furniture 25,550.00 25,550.00

Total Cash Outflows 1,024,652.00 380,192.00 380,192.00 385,192.00 380,192.00 380,192.00 380,192.00 385,192.00 380,192.00 380,192.00 380,192.00 385,192.00 5,221,764.00

Ending Cash Balance (224,652.00) (94,844.00) 34,964.00 159,772.00 289,580.00 419,388.00 549,196.00 674,004.00 803,812.00 933,620.00 1,063,428.00 1,188,236.00 388,236.00
 TAMIA DESIGNERS LTD. - CASH FLOW STATEMENT FOR YEAR 2 ( 2018 )

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

Beginning Cash Balance 1,188,236.00 1,236,994.00 1,366,802.00 1,496,610.00 1,621,418.00 1,751,226.00 1,881,034.00 2,010,842.00 2,135,650.00 2,265,458.00 2,395,266.00 2,525,074.00
Cash Inflows (Income):
Loan Proceeds -
Sales 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 6,120,000.00

Total Cash Inflows 1,698,236.00 1,746,994.00 1,876,802.00 2,006,610.00 2,131,418.00 2,261,226.00 2,391,034.00 2,520,842.00 2,645,650.00 2,775,458.00 2,905,266.00 3,035,074.00 6,120,000.00

Cash Outflows (Expenses):

Registration Expenses -
Businss Permit -
Trade license 5,000.00 5,000.00
Company Seal -
Recruitment expenses -
Consumables 21,200.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 234,600.00

Deposits
Telephone -
Electricity -
Water -

purchases of raw materials 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 3,060,000.00
Communication 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Electricity 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 30,000.00
water 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00
Telephone 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
Transport 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
Advertising 59,792.00 5,792.00 5,792.00 10,792.00 5,792.00 5,792.00 5,792.00 10,792.00 5,792.00 5,792.00 5,792.00 10,792.00 138,504.00
Payroll Expenses 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 990,000.00
Insurance of Motor Vehicle 20,250.00 20,250.00
Repairs and Maintenance 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Miscellaneous 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00

Other Cash Out Flows:

Capital Purchases
Purchase of Motor Van -
Purchase of Tools and Equipment -
Purchase of Furniture -

Total Cash Outflows 461,242.00 380,192.00 380,192.00 385,192.00 380,192.00 380,192.00 380,192.00 385,192.00 380,192.00 380,192.00 380,192.00 385,192.00 4,658,354.00

Ending Cash Balance 1,236,994.00 1,366,802.00 1,496,610.00 1,621,418.00 1,751,226.00 1,881,034.00 2,010,842.00 2,135,650.00 2,265,458.00 2,395,266.00 2,525,074.00 2,649,882.00 1,461,646.00
 TAMIA DESIGNERS LTD. - CASH FLOW STATEMENT FOR YEAR 3 ( 2019 )

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

Beginning Cash Balance 2,649,882.00 2,698,640.00 2,828,448.00 2,958,256.00 3,083,064.00 3,212,872.00 3,342,680.00 3,472,488.00 3,597,296.00 3,727,104.00 3,856,912.00 3,986,720.00
Cash Inflows (Income):
Loan Proceeds -
Sales 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 6,120,000.00

Total Cash Inflows 3,159,882.00 3,208,640.00 3,338,448.00 3,468,256.00 3,593,064.00 3,722,872.00 3,852,680.00 3,982,488.00 4,107,296.00 4,237,104.00 4,366,912.00 4,496,720.00 6,120,000.00

Cash Outflows (Expenses):

Registration Expenses -
Businss Permit -
Trade license 5,000.00 5,000.00
Company Seal -
Recruitment expenses -
Consumables 21,200.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 19,400.00 234,600.00

Deposits
Telephone -
Electricity -
Water -

purchases of raw materials 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 255,000.00 3,060,000.00
Communication 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Electricity 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 30,000.00
water 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00
Telephone 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
Transport 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
Advertising 59,792.00 5,792.00 5,792.00 10,792.00 5,792.00 5,792.00 5,792.00 10,792.00 5,792.00 5,792.00 5,792.00 10,792.00 138,504.00
Payroll Expenses 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 82,500.00 990,000.00
Insurance of Motor Vehicle 20,250.00 20,250.00
Repairs and Maintenance 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Miscellaneous 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00

Other Cash Out Flows:

Capital Purchases
Purchase of Motor Van -
Purchase of Tools and Equipment -
Purchase of Furniture -

Total Cash Outflows 461,242.00 380,192.00 380,192.00 385,192.00 380,192.00 380,192.00 380,192.00 385,192.00 380,192.00 380,192.00 380,192.00 385,192.00 4,658,354.00

Ending Cash Balance 2,698,640.00 2,828,448.00 2,958,256.00 3,083,064.00 3,212,872.00 3,342,680.00 3,472,488.00 3,597,296.00 3,727,104.00 3,856,912.00 3,986,720.00 4,111,528.00 1,461,646.00
5.6 BREAK EVEN ANALYSIS

INCOME STATEMENT FOR YEAR 1 ( 2017 )

DESCRIPTION AMOUNT

Businss Permit 3,000.00

Trade license 5,000.00
Recruitment expenses 10,000.00
Payroll Expenses 990,000.00
Insurance of Motor Vehicle 20,250.00
Depreciation - Motor Vehicle 45,000.00
Depreciation - Furniture and Equip. 8,980.00

TOTAL FIXED COST 1,082,230.00

Consumables 234,600.00
Communication 24,000.00
Electricity 30,000.00
water 12,000.00
Telephone 48,000.00
Transport 48,000.00
Advertising 138,504.00
Repairs and Maintenance 24,000.00

TOTAL VARIABLE COST 559,104.00

BEP (Break Even Point) is where total fixed costs are equal to total variable cost
Simply put, it’s the position where the organisation is making no profits or
losses

The following formula is used to calculate the break even point

BEV = fuixed costs

revenue per unit - variable cost per unit

BEV = fixed costs

unit margin
total revenue 1,366,166.00
total units produced 2,040.00

revenue per unit = 1,366,166.00 / 2,040.00 = 670.00

Therefore reveneu per uni = 670.00

Variable cost per unit = 559,104.00 / 2,040.00 275.00

BEV = 1,082,230.00
670.00 - 275.00

BEV = 2740 Units

 EXPECTED PROFITABILITY RATIOS

Gross profit percentage = Gross profit %

Sales

3,007,500.00 %
6,120,000.00

= 49.14%

Return on equity = Net profit after tax %

owners equity

= 1,147,580.00 %
1,065,116.00

= Kshs. 107.74

Return on investment = net profit after tax%

Total investment
 APPENDICES

Appendix I Account opening

Appendix II Business permit application
Appendix III Invoice
Appendix IV Cash sale
Appendix V Appraisal form
Appendix VI Sample application for employment

ATTACHED DOCUMENTS
KRA PIN

For General Tax Questions

Contact KRA Call Centre
PIN Certificate Tel: +254 (020) 4999 999
Cell: +254(0711)099 999
Email: callcentre@kra.go.ke
www.kra.go.ke

Certificate Date : 27/04/2016

Personal Identification Number
P051584312W

This is to certify that taxpayer shown herein has been registered with Kenya Revenue Authority

Taxpayer Information

Registered Address

Tax Obligation(s) Registration Details

The above PIN must appear on all your tax invoices and correspondences with Kenya Revenue Authority. Your
accounting end month is December unless a change has been approved by the Commissioner-Domestic Taxes
Department. The status of Tax Obligation(s) with 'Dormant’ status will automatically change to 'Active' on date
mentioned in "Effective Till Date" or any transaction done during the period. This certificate shall remain in force
till further updated.

Taxpayer Name PROMPT GLOBAL SUPPLIES LIMITED

Email Address PROMPTGLOBALSUPPLIES@GMAIL.COM

L.R. Number : N/A Building : N/A

Street/Road : MWANZI ROAD City/Town : NAIROBI
County : Nairobi District : Westlands District
Tax Area : Westlands Station : West of Nairobi
P. O. Box : 768 Postal Code : 00100

Disclaimer : This is a system generated certificate and does not require signature.
KRA TAX COMPLIANCE

For General Tax Questions

Contact KRA Call Centre
Tax Compliance Certificate Tel: +254 (020) 4999 999
Cell: +254(0711)099 999
Email: callcentre@kra.go.ke
www.kra.go.ke

Taxpayer PIN : P051584312W Certificate 01/04/2016

Date:
Name and Address : Certificate Number:
Prompt Global Supplies Limited KRAWON3542082016
N/A, N/A, NAIROBI, Westlands District,
PO Box:768,
Postal Code:00100

Sr. No. Tax Obligation(s) Effective From Date Effective Till Date Status
1 Value Added Tax (VAT) 01/04/2016 N.A. Active
2 Income Tax - Company 15/03/2016 N.A. Active
 This is to confirm that Prompt Global Supplies Limited,
Personal Identification Number P051584312W
has filed relevant tax returns and
paid taxes due as provided by Law.

This Certificate will be valid for

twelve (12) months up to 31/03/2017.

This certificate is issued on the basis of information available with the authority as at the
Caveat: certificate date mentioned above. The Authority reserves the right to withdraw the
certificate if new evidence materially alters the tax compliance status of the recipient.
Disclaimer : This certificate is system Generated and therefore does not require signature.You may confirm validity
of this certificate on the
iTax Portal by using the TCC Checker.