Business Plan For Lily Bakery
By Shadrack Omondi Onginjo
The business will be located in Baraka estate within Kabarnet town. It will be called Lilly Bakery which is just but the abbreviation of my wife’s 2 names. The sponsor will be Omondi who is also a degree holder in marketing. The proposed business is a manufacturing type of business since it will involve the transformation of raw materials into finished goods. This business is good since it uses appropriate technology which does not require any further modification. The business is expected to start its operations three months immediately after acquiring the loan (starting capital). The business major customers are individuals who constitute 90% while the remaining 10%institutional customers. The business will produce about 100,000 pieces of bread per month. The business will use facilities and equipment made by current technology, such equipments include oven, computers, trolleys, cell phones etc. stock will be supplied by Furaha agencies once they receive our request. The employees will be working 11 hours, 6days a week and hence there will be a total of 2475 man hours. This implies that labor cost per hour will be Kshs.3.31. Overhead cost per month will be kshs 322,000implying hourly overhead cost to be kshs 9728.0 the business sale projection per month is kshs1, 236,000 with a markup margin of 20%. Pre-operational cost was estimated at kshs 196,000 while the working capital was estimated at kshs 1, 400,000. The cash flow for the year 2010,2011 and 2012 gave a net flow of kshs 77,600,000, kshs 198, 326 and kshs 360, 456,000 respectively. Performance income statement gave net profit after 5% tax for the year 2010,2011 and 2012 to be kshs 5, 755,106, 5,434,900 and 4,988,450 respectively. Proforma balance sheet projected indicated the available capital (owners’ equity) for the 3 years at kshs1, 490,8550, kshs 7,245,950 and kshs 12,680,900 respectively. The Lily bakery break-even point for the year 2010 kshs 8,903072.213, year 2011 kshs 7,403552.23 and the year 2012 kshs 7,018,455,556. The profitability ratios for the year 2010, 2011 and 2012 are estimated at 27.80%,28.10% and 22.67% respectively. The total desired financing is kshs 7,441,950 proposed capitalizations will include personal.