1. LATASHA FAST FOOD RESTAURANT
BUSINESS NAME: LATASHA’S FAST FOOD RESTAURANT
INSTITUTION : RIFT VALLEY TECHNICAL TRAINING INSTITUTE.
PRESENTED BY : AGATA WASILWA
INDEX NO : 5341010801
COURSE : CRAFT CERTIFICATE IN CATERING AND ACCOMMODATION
COURSE CODE : 1819/2
PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL FOR PARTIAL
FULFILLMENT FOR THE AWARD OF CERTIFICATE IN
CATERING AND ACCOMMODATION
SUPERVISOR : MADAM ESTHER
SERIES : JULY 2022

2. DECLARATION
I wish to declare that is my own original work and that it has not been presented to any
examining body before. This work is presented to Kenya national Examination council as part
requirement for the award of Certificate.
NAME OF CANDIDATE: AGATA WASILWA
Signature……………………………
Date………………………………………..
This business plan has been presented to the Kenya National Examination council with the
approval of my supervisor.
NAME OF SUPERVISOR: MADAM ESTHER
Signature……………………………………………………..
Date: ……………………………………………………….

3. iii
DEDICATION
I sincerely dedicate this business plan to my parents for their financial support they has offered
and also to my brothers and sister for their prayer and their concern and support as enhanced my
success especially my elder sister who has encouraged me so much.

4. iv
ACKNOWLEDGEMENT
I feel indebted to my dear parents who gave me all financial support that I needed to complete
my certificate course. Literally many people contributed in countless way to make my dreams
come true, I particularly appreciate my who worked tirelessly to ensure that I succeeded in
writing this business plan.

5. v
TABLE OF CONTENTS
DECLARATION ............................................................................................................................................... ii
DEDICATION................................................................................................................................................. iii
ACKNOWLEDGEMENT.................................................................................................................................. iv
TABLE OF CONTENTS................................................................................................................................. v
EXECUTIVE SUMMARY........................................................................................................................... viii
1.0 BUSINESS DESCRIPTION................................................................................................................... viii
2.0 MARKETING PLAN............................................................................................................................ viii
3.0MANAGEMENT AND ORGANIZATIONAL PLAN. ................................................................................ viii
4.0OPERATIONAL /PLAN.......................................................................................................................... ix
5.0 FINANCIAL PLAN................................................................................................................................. ix
CHAPTER ONE ...............................................................................................................................................1
1.0 BUSINESSDESCRIPTION.......................................................................................................................1
1.1 BUSINESS NAME..................................................................................................................................1
1.1.1 business logo....................................................................................................................................1
1.2 BUSINESS LOCATION AND ADDRESS...................................................................................................2
1.2.1 BUSINESS ADDRESS..............................................................................................................................2
1.2.2 BUSINESS LOCATION............................................................................................................................2
MAP...............................................................................................................................................................3
1.3 FORM OF THE BUSINESS OWNERSHIP................................................................................................3
1.4 PRODUCTION AND SERVICES..............................................................................................................4
1.5 JUSTIFICATION OF THE BUSINESS OPPORTUNITY...............................................................................4
1.6 THE INDUSTRY.....................................................................................................................................4
1.7 BUSINESS GOALS.................................................................................................................................5
1.7.1 Short term goals ..............................................................................................................................5
1.7.2 Long term goals................................................................................................................................5
1.8 GROWTH AND ENTRY STRATEGY........................................................................................................5
1.8.1 ENTRY STRATEGY .............................................................................................................................5
1.8.2 GROWTH STRATEGY.........................................................................................................................6
CHAPTER TWO ..............................................................................................................................................7
MARKET PLAN...........................................................................................................................................7

6. vi
2.1 POTENTIAL CUSTOMERS.....................................................................................................................7
2.2MARKET SHARES..................................................................................................................................7
2.3BUSINESS COMPETITION .....................................................................................................................8
2.4METHOD OF PROMOTION AND ADVERTISEMENT ..............................................................................9
2.5PRICING STRATEGY ............................................................................................................................10
2.6 SALES TACTICS...................................................................................................................................10
2.7DISTRIBUTION STRATEGY...................................................................................................................10
CHAPTER THREE..........................................................................................................................................12
3.1 Organizational structure. ..................................................................................................................13
3.2 Management Personnel..............................................................................................................14
3.3 Other personnel................................................................................................................................15
3.4 Recruitment, Training and Promotion..............................................................................................17
3.4.1 Recruitment ...................................................................................................................................17
3.4.2 Training ..........................................................................................................................................17
3.4.3 Promotion ......................................................................................................................................17
3.5 Remuneration and Incentives...........................................................................................................18
3.6 Legal Requirements ..........................................................................................................................18
3.7 Support and Professional Services....................................................................................................19
3.7.1 Banking services ........................................................................................................................20
3.7.2 Postal services............................................................................................................................20
3.7.3 Insurance....................................................................................................................................20
3.7.4 Legal services.............................................................................................................................20
3.7.5 Waste produce collection services .............................................................................................20
3.7.6 Security services.............................................................................................................................21
CHAPTER FOUR ...........................................................................................................................................22
4.0 OPERATIONAL PLAN..........................................................................................................................22
4.1 FACILITIES AND CAPACITY.................................................................................................................22
4.1.2 LATASHA’S FAST FOOD RESTAURANTPRODUCTION CAPACITY.........................................................22
4.2 PRODUCTION STRATEGY.......................................................................................................................23
4.3 PRODUCTION PROCESS....................................................................................................................24
4.3.1 INSPECTION........................................................................................................................................24

7. vii
4.3.2 PROMOT DELIVERIES .........................................................................................................................24
4.3.3 RELATIONSHIP....................................................................................................................................24
4.3.4 OPERATIONAL COSTS.........................................................................................................................24
4.4 OVERHEAD COSTS.................................................................................................................................25
CHAPTER FIVE .............................................................................................................................................26
5.0 FINANCIAL PLAN................................................................................................................................26
5.1 PRE-OPERATIONAL COSTS ................................................................................................................26
5.2 ESTIMATION OF WORKING CAPITAL.................................................................................................26
5.3 CASH FLOW FIRST YEAR ....................................................................................................................27
5.3.1CASH FLOW FOR THE SECOND YEAR ..................................................................................................28
5.3.2CASH FLOW FOR THE FIRST THIRD......................................................................................................29
5.4PROFORMA INCOME STATEMENT FOR FIRST YEAR ..........................................................................30
5.4.1 PROFORMA INCOME STATEMENT FOR SECOND YEAR......................................................................31
5.4.2 PROFORMA INCOME STATEMENT FOR THIRD YEAR .........................................................................32
5.5 BALANCE SHEET FOR FIRST YEAR......................................................................................................33
5.5.1 BALANCED SHEET FOR THE SECOND YEAR ........................................................................................34
5.5.2 BALANCE SHEET FOR THIRD YEAR......................................................................................................35
5.6 BREAK EVEN POINT...........................................................................................................................35
5.7 PROFITABILITY RATIO........................................................................................................................37
5.7 DESIRED FINANCIAL ..............................................................................................................................40
5.8 PROPOSED CAPITALIZATION.................................................................................................................40

8. viii
EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION.
The name of the business shall be LATASHA’S FAST FOOD RESTAURANT. I choose the
name because it will portray the type of business that I will engage in. LATASHA’S means a
comfortable and enjoyable place which applies my business will be a comfortable place for my
potential customers to enter and enjoy themselves. The contacts of my business will be as
follows:
LATASHA’S FAST FOOD HOTEL
P.O.BOX 250
MARIGAT
2.0 MARKETING PLAN
The potential customers to this proposed business will be the residence of Marigat town that
form 50% of the customers.
Others will be institutions who forms 30% plus other hotels that form 20% will be my
competitors around there. I will apply the following methods to make sure I get more customers
to my business.
a) I will be offering credit services to the potential customers.
b) I will be employing qualified waiters employees.
c) I will be employing qualified safeguards to ensure that there is enough security.
d) I will make sure that goods and services are of high quality to maintain
customer’sgoodwill.
3.0MANAGEMENT AND ORGANIZATIONAL PLAN.
Since this business will be a sole proprietorship form of business the key personnel will be as
follows:
i. The manager.
ii. Assistant manager.
iii. Cashier.
iv. Waiters.

9. ix
v. Watchmen
4.0OPERATIONAL /PLAN
The product plan is my business will be acquired though purchasing from farmers, directly and
my own farm. The transportation will be done by my own pickup which will collect from
farmers.
The business will serve the residence of Marigat town and the institutions around. This business
will be a sole proprietorship owned by myself and the family. I’ll be the manager. The business
will commence next year when I will apply for a loan from the bank, relatives and personal
savings.
Personal savings= 300,000
From relatives and friends=150,000
From the bank loan= 200,000
Total= 650,000
5.0 FINANCIAL PLAN
This business will have to incur some expenses before commencing its operations. It shows
records in details i.e. financial analysis and estimation of the working capital required therefore
the preoperational expenses projected cash flow is prepared follow by the Profoma income
statement and balance sheet for the first and second years, calculations of the break even, point
profitability rations and finally desired financing and capitalization, this will possible since the
owner intense to borrow a loan from the bank, friends and relatives.

10. 1
CHAPTER ONE
1.0 BUSINESSDESCRIPTION
1.1 BUSINESS NAME.
The name of the business shall be LATASHA’S FAST FOOD RESTAURANT I choose the
name because it will portray the type of business I will engage in. LATASHA’S means a
comfortable and enjoyable place which implies my business will be a comfortable place for my
potential customers to enter and enjoy themselves.
1.1.1 business logo
The business will use this logo for its products and general advertisement

11. 2
1.2 BUSINESS LOCATION AND ADDRESS
1.2.1 BUSINESS ADDRESS.
LATASHA’S FAST FOOD RESTAURANT,
P.O.BOX 250,
MARIGAT
TEL:0701352728
Email: latasha’sfastfoodrestautant@gmail.com
1.2.2 BUSINESS LOCATION
LATASHA’S FAST FOOD RESTAURANT will be located in Marigat town opposite Irrigation
board.
Reasons for choosing the place was;
 Good transport and communication system
 Good security.
 Availability of ready market.

12. 3
MAP
Business map location
IRRIGATION BOARD
SOKONI PLAZA LATASHA’S FAST FOOD
to kapsabet MARIGAT TOWN to Eldoret town
KEY direction arrow
Roads
Buildings
1.3 FORM OF THE BUSINESS OWNERSHIP
This business will be a sole proprietorship where by Agatha wasilwa will be the manager. All
decision making will be made through me, also I will be incharge of profit and loss made by the
business. Rules and regulations will be set in my business In order to help in smooth running of
the business.
Sunaityrestaura
nt
Kamco hotel

13. 4
1.4 PRODUCTION AND SERVICES
My business will deal with various services like high quality of recipe, food, beverages,
photocopies, computers and I will offer boarding services to Christians and non-Christians free
disco (entertainment).
The storage facilities are enough e.g. fridges, flasks, hotpots, pallets and shelves .The place will
be accessible to each customer.
1.5 JUSTIFICATION OF THE BUSINESS OPPORTUNITY
The business shall succeed due to the following reasons:
i. Family –it’s from blood inheritance meaning that my background believes in business
so I belief in myself.
ii. Marketability –there is ready market due to rapid increase in population and
competitors are few as concerning the service applied.
iii. Capital-before you start a business you must finance so I belief in having enough
capital that will obtain from loan, friends, relatives and family members andthe few
that I had.
iv. Materials –the availability of material is easier thus making the flow of work to be
efficient and effective.
v. Transportation and communication are well allocated to enable the customers to reach
the place without difficulties.
vi. Knowledge and skills –there is availability of skilled labor that will enhances the
working progress of the business because I also have more experience and skills
through Diploma in social work that will enable me to control stock and do marketing
research.
1.6 THE INDUSTRY
LATASHA’S FAST FOOD RESTAURANT services falls under hospitality industry. This is
very encouraging because it produces qualify workers and enough capital for expanding of the
business thus enabling to run successfully.
The trend of the industry

14. 5
Due to development of transport and communication facilities, many business are now facing the
challenge thus creating high competition.
-under this circumstances I will be able to overcome them by introducing high quality products,
qualified workers and improve on the design of food e.g. decoration and good advertising to
customers to be aware of products /goods being supply
1.7 BUSINESS GOALS
There are many achievements the firm may like to get are as follows :
1.7.1 Short term goals
 To start up this business I had the intention of improving my living standards.
 To employ other people who are qualified in the community thus giving them capital to
start their own business thus reducing poverty.
 To open entry in the market thus developing socialization, I will be to used knowledge
and skills that I derived from the college thus getting more customers.
1.7.2 Long term goals
 Many branches of various business will be developed due to its expanding .
 To create job opportunities to those who are jobless in the community
 To create the shortest distribution channel so as to avoid losses.
1.8 GROWTH AND ENTRY STRATEGY
1.8.1 ENTRY STRATEGY
Before putting up the strategies you should go through the following:
 Make sure that the financial planned will end July.
 The advertisement should be done to enable the people in the area to be aware about the
type of business being carried out.
 The price of my service will be negotiated to attract more customers and suppliers.
 Market research will be done in order to increase the level of demand in the market and
also to know the likes and dislikes of the customers.

15. 6
 The sign posts will be allocated in the open places i.e. churches, hospitals, schoolse.t.c.
and advertisement over the radio ,magazines, televisions, news papers and brochures.
1.8.2 GROWTH STRATEGY.
The workers will be employed of highly skilled and the business will have enough facilities and
equipment. Enough materials to meet customers’requirements . The business will also open
branches in different places in order to improve development and employment opportunities to
be high thus improving the living around there.

16. 7
CHAPTER TWO
MARKET PLAN
2.1 POTENTIAL CUSTOMERS
The potential customers for LATASHA’S FAST FOOD RESTAURANT will be:
Institutional customers
There are various institutions in Marigat town that could use my services.
They include:-
1. Marigat teachers college.
2. Marigat High school.
3. L.Bogoria High school.
4. Kiserian Boys High school
From these institutions I will automatically get clients because the street is so busy and we have
a large number of people working in 24hrs time .Many students like entertainment , typing
,photocopying ,learning more from the computers ,eating ,drinking and so many others These are
customers who are characterized ranging from the income level. The commercial customers
will be attract to my business because it is situated at the central part of the town which is busy
with a lot of activities taking place transportation of different goods and services from companies
,supermarkets in operation and the learning institutions taking place and discos .My business
location will be at the place which is easily visible and accessible by every person .There is
good and enough space for customers .It is very secure because the police station is just a
kilometer away from the business thus enabling my business to operate throughout .
2.2MARKET SHARES
My business is expected to attract more customers due to increase in industrial activities taking
place in the company. LATASHA’S FAST FOOD RESTAURANT will attract many customers
from commercial sectors, learning institutions and also from the general public.

17. 8
My business intents to operate 60% of the market share because of the quality of services I will
offer to my clients. In future my business will increase thus enabling me to develop other
business to cater for other people.
My competitors will be two in the market so they will get the remaining percentage of the market
share.
1. LATASHA’S FAST FOOD RESTAURANT (main hotel).
2. Sunaityrestaurant.
3. Kamco hotel.
2.3BUSINESS COMPETITION
The main competitors to my business will be:
1. Sunaity restaurant.
2. Kamco hotel.
The two competitors have been in the market for a period of four years and through the research
that I did they have the following weakness “
24.50%
24.50%
55%
MARKET SHARE
SUNAITY RESTAURANT KAMCO HOTEL LATASHA'S RESTAURANT

18. 9
 Poor personnel (untrustworthy)
 Poor record keeping
 Poor management skills.
SUNAITY RESTAURANT
This competitor is located just next to my business place , as per concerning to my research that
I did , the competitor has the following weakness :
 Poor time management
 Less skills and knowledge
 Poor quality of goods and services (food).
 Poor location
KAMCO HOTEL
The competitor business is located 100m from business place .The competitor is well known as
a welcoming and provides good serving services but has the following weakness:
 Poor location
 Poor public relation
 Low quantity products
 Poor customer services
2.4METHOD OF PROMOTION AND ADVERTISEMENT
Advertisement is a vital role in making a business to be famouse among potential clients, I will
use posters which will be circulated in the town strategic points like hospitals, government
offices, schoolse.t.c.
I will advertise on local magazines the type of services I will intent to offer to my clients and
specify the location .At the end of every year I will keep records for my potential clients to
know how many profits and how far I could go.

19. 10
2.5PRICING STRATEGY
For my business to succeed will determine the prices of the services will be offering and the
promotion as well as motivation I will be offering.
Customers are allowed to come up with any suggestions as per the way they feel in order to
create awareness to me. I will compare prices with other competitors and know how to charge at
a particular time and period.
2.6 SALES TACTICS
My business will put more attention on direct sale of my business services so that there will be
adirect contact with my client to know what they want and what they expect from my business.
Adequate advertisement of my business will make it well known and the location of my business
will be readily available to potential clients who could want my service s.
I will offer a discount to my clients who will want to hire my properties like chairs,
accommodation and serving facilities for long time, I will be charging some extra cash also
known as waiting charges as per the time it will take before return.
Credit facilities will be offered to regular customers and payment is supposed to be done within a
month of collecting the goods .proper packaging will be available to all customers irrespective to
amount spent. Qualified personnel will be employed to carry out the services, they will be able to
offer quality services due to the expertise that they will be having.
2.7DISTRIBUTION STRATEGY
The entrepreneur shall adopt cost effective distribution for business products b y emphasizing on
direct service to my customers, thus enhancing a strong relationship between me and my
customers directly
Manufacturers
Wholesalers

20. 11
Retailers
Consumers
My business will faal under retailer and will be able to serve people /customer by ensuring
goods are of good quantity, quality and delivered from the right source at the right time and right
place.

21. 12
CHAPTER THREE
3.0 ORGANIZATION AND MANAGEMENT PLAN
Organizational plan is the process of breaking down the overall tasks of the business into various
jobs along with delegation to the departments. The purpose of organizational and management in
the proposed business is to help in smooth running of the business and know how to maximize
profits and deal with the staff.
The objectives of the businesses are;
 To constantly ensure that customers are served diligently by maintaining excellent
customer relations through staff who care.
 To develop staff through training and reward generally so as to maintain them at high
level of motivation thus achieve high performance in return.
 To search for and recruit work force that are well trained staff who are the requisite for
success.

22. 13
3.1 Organizational structure.
the business will be run under management team, whose management will be aiming at planning,
organizing and controlling all activities of the business so that to achieve common goals.
MANAGER
ASS MANAGER
Human resource Head chef
operation manager
ACCONTANT
security
driver
waiters
cleaners

23. 14
3.2 Management Personnel
TITLE QUALIFICATION
&SKILLS
DUTIES &RESPONSIBILITIES
1. Manager Holder of diploma in
Business administration
Computer literate
Good managerial skills
Form goals and polices: it will be
responsibilities of the manager to
formulate polices and come up with
goals which will lead to the success of
the business
Recruiting employees: It will be
responsibility of the manager to recruit
new employees
Plan and implement programs
2. Assistant
Manager
a. A holder of Diploma in
Business Management
or Diploma in food and
bevarage.
b. Age of 28-35 years
c. Two years working
experience
a. Assist in drawing plan and policies
of business. Assistant manager
should give assistance towards
coming up with the best policies.
b. Establish public relations
c. Improve working conditions and
general welfare. It is the
responsibility of the assistant
manager to make sure that the
working condition is favourable.
3. Accountant a. Holder of CPA two
from any recognized
institution
b. Atleast 3 years working
a. Recording, counting and depositing/
withdrawing money in bank.
b. Keep records of all transactions for
day to day and for future reference.

24. 15
experience
c. Age 25 years and above
3.3 Other personnel
Human resource manager
They will deal with all the maintenance activities and the work done in the enterprise hence
assigning duties to the casual workers.
Qualifications
(i) Institutional management certificate.
(ii) Experience of a year or more.
(iii)Mentally stable.
Duties
(i) Assigning duties to the casual workers.
(ii) Ensuring maintenance of everything in the firm.
(iii)Deals with employees issues.
Operation Manager
They will be in charge of the financial management and all the business activities carried in the
firm.
Qualifications
a) Should have at least diploma in IT.
b) Experience in this field of 5 years
c) Recommendation letter from a well-known firm
Duties

25. 16
(i) Updates and handles the online platform.
(ii) Confirms new order list online.
TITLE QUALIFICATION
&SKILLS
DUTIES &RESPONSIBILITIES
Chefs At least diploma in food and
beverage
Two years working
experience
Prepares all the food orders in time
waiters a. At least certificate in food
and beverage service.
b. Age of 25 years and
above
good communication skills
a. makes sure that all the customers
are attended to in time.
b. Keeps the restaurant area clean and
presentable.
cleaners a. At least KCSE D-
b. One year working
c. No health complications
a. make sure that the premise is always
clean.
.
security At least d+ in kcse In charge of protecting the business
premise
driver Should have driving licence Delivers food to customers.

26. 17
3.4 Recruitment, Training and Promotion
3.4.1 Recruitment
The intended business is to obtain employers from training institutions through advertisement of
vacancies to the institutions and also through friends and relatives. He will also recruit from the
exiting staff i.e. through posters, media, notices and magazines.
Recruitment process is to be as follows.
 first identify vacant and suitable position
 Advertise
 shortlist applicants
 Call for interview
 Call for final selection candidates are to be informed about basic details of the vacancies,
basic form of employee attached to it. i.e. job little salary, level of job, purpose of job)
3.4.2 Training
This is a process of making employees to gain more knowledge in their work. The manager will
be inviting managers from well-established business for an interview to acquire more knowledge
.The staff will also attend trade fairs to learn more about the emerging technologies.
Purpose of training
i. To increase interpersonal skills
ii. To motivate workers by making them feel as the part of the business
iii. To be able to compete in the market
3.4.3 Promotion
Promotion is to be done only under the basis of ability, years of experience and personal records
achieved through job grading,
Promotion is to occur depending on the following;
 Dismissal of other staff

27. 18
 Death of a staff and retirement
 Business expansion
 Hard work done by staff.
3.5 Remuneration and Incentives
The staff will be remunerated according to their qualifications. Certificates of merits and along
services awards end of the year party to let them air their views, free, food and goods offered
during special holidays, soft loans for fees, medical and housing allowances.
The business is to ensure that it retains qualified employees by paying them salaries according to
their qualifications.
Table Showing Remuneration of Staff
Remuneration
STAFF PER MONTH PER YEAR
General Manager 9,000 108,000
Assistant manager 7,000 84,000
operation manager 7,000 84,000
Human resource manager 5,000 60,000
Accountant 5000 60,000
Head chef 4,000 48,000
Waiters 3,000 36,000
Driver 3000 36000
Security/ cleaners 2000 24000
TOTAL 45,000 540,000
3.6 Legal Requirements
These are the requirements which are set by the government and must be approved before the
business is allowed to start operation. The business will operate as per the government

28. 19
requirements so as to avoid inconvenience with the authorities. The business is therefore
expected to operate within all law requirements
The legal requirements include:
 Registration of business name
The proprietor intends to register the business name legally before commencing to be able to
operate and exist freely.
Also requirements are a pin number and a revenue authority approved cash registry.
 Trading licence
The business has to get its trading licence from Marigat town county council, to authorise legal
operation of the business. It is renewable yearly.
 Public health requirement and permit
Through the public health officer, the government in connection with health officer is to ensure a
clean environment and adequate facilities such as dust bins, toilets for the business to operate in
a health condition.
 By –laws
Before the operation the business is to adhere to several by-laws enacted by the local authority to
ensure that the business operates without interruption. The environment should not be polluted
No inconvenience should be caused by the business to the surrounding residence e.t.c
3.7 Support and Professional Services
The proprietor will require experts from various business fields and of similar business to aid his
business.

29. 20
3.7.1 Banking services
The proprietor will require banking services which he opted to Cooperative bank, Marigat
branch. The service will include making deposits, cash withdrawals, borrowing loans among
others. The bank is sited along OgingaOdinga Street Marigat town. The address of the bank is:
EQUITY BANK
P.O BOX 342-50100
MARIGAT
TELL: 050-2020363/1/2
3.7.2 Postal services
It is required for communication in form of documents to or from suppliers and clients.
3.7.3 Insurance
The proposed business will be insured by:
CIC INSURANCE
P.O BOX 30065-20117
MARIGAT
3.7.4 Legal services
The enterprise will require a lawyer who will be witnessing transactions which are sensitive to
frauds. The lawyer will be:
G.M NJUGUNA & COADVOCATES
TELL: 050-02020705
MARIGAT
3.7.5 Waste produce collection services
This service will be provided by Marigat town municipal council. This is situated just within the
town of Marigat town 50 metres away from the business.

30. 21
3.7.6 Security services
Security guards are to be contracted to guard the business. Their office is just in the same
building as the business.

31. 22
CHAPTER FOUR
4.0 OPERATIONAL PLAN
4.1 FACILITIES AND CAPACITY.
For any business to succeed there are various operational /production facilities and capacities
required .The table below shows the details of operational /facilities in LATASHA’S FAST
FOOD RESTAURANTin order to make the business much successful.
FACILITY
ITEM
QUANTITY METHOD OF
ACQUISITION
PRICE TOTAL PER
ANNUM
Building Room Renting 5,000 6,0000
Electrical cooker - Inheritance - -
Sufurias 20 To be bought 6000 6,000
Jikos 5 To be bought 2500 3,0000
Tables 15 To be bought 5000 6,0000
Chairs 450 To be bought 5000 180,000
Plates and cup 4 To be bought 3000 60,000
Cooking
pans,rolling bins
and boards
1 To be bought 1000 120,000
Calculator 1 To be bought 1500 -
Sky plast 2 Gift from a
friend
- --
Flask 3 To be bought 1500 --
Freezer 1 inheritance - -
516,000
4.1.2 LATASHA’S FAST FOOD RESTAURANTPRODUCTION CAPACITY
PRODUCT QUANTITY TOTAL MONTHLY DAILY

32. 23
PRODUCE
Milk 55 liters 5500 55
Wheat flour 6 bundles 8000 6
Maize flour 1 sack 2000 1
Meat 7 kg 1400 7
Tomatoes 1 crate 2500 1
Onions 1 sack 3000 1
Kales 1 sack 500 1
Tea leaves 1 packet 100 1
Ndengu 1 sack 1000 1
Charcoal 2 sacks 1250 2
Sugar ½ sack 50 ½
Salt ½ kg 3000 1
Rice 100kg 2000 4
Carrots 20kg 500 1
Irish potatoes 1 sack 2000 1
Fish 100 1500 1
Chicken 20 300 100
Cabbage 1 sack 200 10
Beans 90kg 50 1
TOTAL PRODUCE 33,000
4.2 PRODUCTION STRATEGY
The first step in the operational process to ensure high standard hygiene is maintained in
LATASHA’S FAST FOOD RESTAURANTrooms.
The owner of the business will ensure that all the materials and equipments needed are available
and on time to meet customers delivery dates thus goodwill.
The owner of the Hotel shall ensure that it provides high quality services to his potential
customers to maintain production flow thus profit making . The owner will ensure conductive

33. 24
working environment to employees by purchasing them uniforms with indication all over
‘LATASHA’S HOTEL’.
The owner will make sure that all workers are motivated to keep them running the business
hardly.
I will also ensure that the customers are well received and served.
4.3 PRODUCTION PROCESS
Various processes will be adopted to make sure that the business attains the greatest competitive
advantage and some of the strategies which include the following
4.3.1 INSPECTION
All the products received into the business will have to undergo inspection (products and
services ) to ensure that the products are of high quality.
4.3.2 PROMOT DELIVERIES
Customers order shall be promptly delivered to maintain customer goodwill which will translate
into profit in the business .
4.3.3 RELATIONSHIP
All the custmers and non customers will be treated with all due respect to ensure that there is
strong relationship between the premises and our customer .
4.3.4 OPERATIONAL COSTS
Expenses analysis shall be carried out in threemajor categories namely:-
 Direct cost.
 Labor cost
 Overhead costs

34. 25
4.4 OVERHEAD COSTS
The following are expected expense to be incurred by LATASHA’S FAST FOOD
RESTAURANTduring operation and production process .
ITEM DESCRIPTION TOTAL COST P.A
Transport 30000
Advertisement 5000
Direct labor 60000
License 20000
Rent 32000
Water 5000
Electricity 10000
Postal 10000
Loan payment interest 1,333 per month 15000
Total 187000

35. 26
CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1 PRE-OPERATIONAL COSTS .
These are cost incurred before the start of the business operation and costs are as shown in the
table below.
DETAILS OF COSTS TOTAL AMOUNT
Furniture 10,000
Licenses 7500
Advertisement 3500
Rent postal 4500
Electrical 5000
Water 1200
Insurance 10000
Repair 6000
TOTAL 56000
5.2 ESTIMATION OF WORKING CAPITAL
Working capital refers to current assets less current liabilities
CURRENT ASSETS AMOUNT
Cash at bank 350,000
Pre-paid rent 15,000
TOTAL 365,000
Less current liabilities
Accrued expenses 56,000
TOTAL 56,000
Opening cash balance =365,000-56,000
=309,000

36. 27
5.3 CASH FLOW FIRST YEAR
PARTICULARS JAN FEB MARCH APRIL MAY JUN JULY AUG SEPT OCT NOV DEC TOTAL
Opening balance - 419240 157980 147720 163460 135200 115940 94680 84420 72160 67900 1331680
Sales 200000 40000 55000 35000 60000 20000 25000 20000 30000 30000 43000 42000 600000
Total inflow 200000 189240 197000 192980 207720 183460 160200 135940 124680 114420 115160 109900 1931680
Cash inflow - - - - - - - - - - - - -
Purchases 10000 16000 14000 15000 14000 17000 14000 10000 10000 12000 16000 14000 162000
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Salaries 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 210000
Water 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Electricity 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Postage 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
License 8000 - - - - - - - - - - - 8000
Loan payment 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 51120
Insurance 1500 - - - - - - - - - - - 1500
Advertisement 1000 - 1000 1000 1000 - - 1000 - - - 1000 5000
Transport 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Total outflow 50760 46260 40000 45260 44260 48260 44260 41260 40260 42260 47260 44260 534360
Net cash per
month
149240 142940 157980 147720 163460 135200 115940 94680 84420 72160 67900 65640 1397320

37. 28
5.3.1CASH FLOW FOR THE SECOND YEAR
PARTICULARS JAN FEB MARCH APRIL MAY JUN JULY AUG SEPT OCT NOV DEC TOTAL
Opening balance 65640 123780 147520 162260 166000 158740 188480 196220 190960 206700 204440 214180 2024920
Sales 100000 70000 60000 50000 40000 70000 50000 40000 60000 40000 50000 60000 690000
Total inflow 165640 193780 207520 121260 206000 228740 238480 236220 250960 246700 254440 274180 2714920
Cash inflow - - - - - - - - - - - - -
Purchases 11000 16000 15000 16000 17000 10000 12000 15000 14000 12000 10000 15000 163000
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Salaries 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 210000
Water 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Electricity 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Postage 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
License 8000 - - - - - - - - - - - 8000
Loan payment 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 51120
Insurance 1500 - - - - - - - - - - - 1500
Advertisement 1000 - 1000 1000 1000 - - 1000 - - - 1000 5000
Transport 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Total outflow 41860 40620 45260 46260 47260 40260 42260 45260 44260 44260 40260 45260 526720

38. 29
5.3.2CASH FLOW FOR THE FIRST THIRD
PARTICULARS JAN FEB MARCH APRIL MAY JUN JULY AUG SEPT OCT NOV DEC TOTAL
Opening balance - 419240 157980 147720 163460 135200 115940 94680 84420 72160 67900 1331680
Sales 200000 40000 55000 35000 60000 20000 25000 20000 30000 30000 43000 42000 600000
Total inflow 200000 189240 197000 192980 207720 183460 160200 135940 124680 114420 115160 109900 1931680
Cash inflow - - - - - - - - - - - - -
Purchases 10000 16000 14000 15000 14000 17000 14000 10000 10000 12000 16000 14000 162000
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Salaries 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 17500 210000
Water 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Electricity 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Postage 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
License 8000 - - - - - - - - - - - 8000
Loan payment 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 4260 51120
Insurance 1500 - - - - - - - - - - - 1500
Advertisement 1000 - 1000 1000 1000 - - 1000 - - - 1000 5000
Transport 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Total outflow 50760 46260 40000 45260 44260 48260 44260 41260 40260 42260 47260 44260 534360
Net cash per
month
149240 142940 157980 147720 163460 135200 115940 94680 84420 72160 67900 65640 1397320

39. 30
5.4PROFORMA INCOME STATEMENT FOR FIRST YEAR
PARTICULARS KSHS
Sales 60,000
Less opening stock -
Add purchases 162,000
Gross profit (sales purchases) 762,000
Less total expenses 438,000
Rent 24,000
Salaries 40,000
Water 12,000
Electricity 18,000
Postage 24,000
License 8,000
Insurance 1,500
Advertisement 4,000
Loan repayment 51,120
Transport 24,000
Total expenses 206,620
Net profit before tax 231,380
Less 25% income tax 57,845
Net profit after taxation 173,535

40. 31
5.4.1 PROFORMA INCOME STATEMENT FOR SECOND YEAR
PARTICULARS KSHS
Sales 690,000
Less opening stock 65,640
Purchases 163,000
Gross profit (sales purchases) 787,360
Less total expenses 527,000
Expenses 206,620
Rent 24,000
Salaries 40,000
Water 12,000
Electricity 18,000
Postage 24,000
License 8,000
Insurance 1,500
Advertisement 4,000
Loan repayment 51,120
Transport 24,000
Total expenses 206,620
Net profit before tax 320,380
Less 25% income tax 80,095
Net profit after taxation 240,285

41. 32
5.4.2 PROFORMA INCOME STATEMENT FOR THIRD YEAR
PARTICULARS KSHS
Sales 60,000
Less opening stock -
Add purchases 162,000
Gross profit (sales purchases) 762,000
Less total expenses 438,000
Rent 24,000
Salaries 40,000
Water 12,000
Electricity 18,000
Postage 24,000
License 8,000
Insurance 1,500
Advertisement 4,000
Loan repayment 51,120
Transport 24,000
Total expenses 206,620
Net profit before tax 231,380
Less 25% income tax 57,845
Net profit after taxation 173,535

42. 33
5.5 BALANCE SHEET FOR FIRST YEAR
ASSETS KSHS CAPITAL AND
LIABILITIES
KSHS
Fixed assets Liabilities 51,120
Furniture 30,000 Bank loans 74,360
Less 10%
depreciation
3,000 Owner’s equity 173,535
Tools and equipment 45,000 Add net profit
Less 10%
depreciation
4,500
Total fixed assets 67,500
Current assets
Stock 100,000
Cash in hand 18,015
Cash at Bank 113,500
Total current assets 231,515
TOTAL ASSETS 299,015 TOTAL LIABILITIES 299,015

43. 34
5.5.1 BALANCED SHEET FOR THE SECOND YEAR
ASSETS
KSHS CAPITAL AND
LIABILITIES
KSHS
Fixed assets Liabilities 51,120
Furniture 50,000 Bank loans 74,360
Less 10%
depreciation
5,000 Owner’s equity 240,285
Tools and equipment 45,000 Add net profit
Less 10%
depreciation
4,500
Total fixed assets 85,500
Current assets
Stock 116,000
Cash in hand 64,000
Cash at Bank 100,265
Total current assets 280,265
TOTAL ASSETS 365,765 TOTAL LIABILITIES 365,765

44. 35
5.5.2 BALANCE SHEET FOR THIRD YEAR
ASSETS KSHS CAPITAL AND
LIABILITIES
KSHS
Fixed assets Liabilities 51,120
Furniture 30,000 Bank loans 74,360
Less 10%
depreciation
3,000 Owner’s equity 173,535
Tools and equipment 45,000 Add net profit
Less 10%
depreciation
4,500
Total fixed assets 67,500
Current assets
Stock 100,000
Cash in hand 18,015
Cash at Bank 113,500
Total current assets 231,515
TOTAL ASSETS 299,015 TOTAL LIABILITIES 299,015
5.6 BREAK EVEN POINT
Year one
B.E.P = Total fixed cost
Contribution
Contribution = sales – variable costs
= 600,000 – 482,000
= 118,000
Sales ratio = total fixed cost
Sales

45. 36
= 270,620
600,000
= 0.451
B.E.P = 270,620
0.451
B.E.P = 600044.34
Year two
B.E.P = Total fixed cost
Contribution
Contribution = sales – variable costs
= 630,000 – 482,000
= 148,000
Sales ratio = Total fixed cost
Sales
= 270,620
630,000
= 0.429
B.E.P = 270,620
0.429
B.E.P = 630815.85

46. 37
Year three
B.E.P = Total fixed cost
Contribution
Contribution = sales – variable costs
= 600,000 – 482,000
= 118,000
Sales ratio = total fixed cost
Sales
= 270,620
600,000
= 0.451
B.E.P = 270,620
0.451
B.E.P = 600044.34
5.7 PROFITABILITY RATIO
YEAR ONE
1. Net profit ratios = Net profit x 100
Sales
= 173,535 x 100
600,000
= 29%
2. Return on net capital
Net profit = fixed assets + current assets

47. 38
= 45,000 + 80,000
= 125,000/=
Return on capital = Net profit x 100
Net assets
= 173,535 x 100
125,000
= 139%
3. Return on owner’s Equity
= Net profit x 100
Owner’s equity
= 173,535 x 100
74,360
= 233%
YEAR TWO
1. Net profit ratios = Net profit x 100
Sales
= 240,285 x 100
690,000
=35%
2. Return on net capital
Net profit = fixed assets + current assets
= 45,000 + 40,000
= 85,000/=
Return on capital = Net profit x 100
Net assets

48. 39
= 240,285 x 100
85,000
= 283%
3. Return on owner’s Equity
= Net profit x 100
Owner’s equity
= 240,285 x 100
74,360
= 323%
YEAR THREE
1. Net profit ratios = Net profit x 100
Sales
= 173,535 x 100
600,000
= 29%
2. Return on net capital
Net profit = fixed assets + current assets
= 45,000 + 80,000
= 125,000/=
Return on capital = Net profit x 100
Net assets
= 173,535 x 100
125,000
= 139%
3. Return on owner’s Equity
= Net profit x 100
Owner’s equity
= 173,535 x 100
74,360

49. 40
= 233%
5.7 DESIRED FINANCIAL
Item Amount (Ksh)
Pre-operational costs 498000
Working capital 300000
Fixed assets 498000
Totals 1,296,000
5.8 PROPOSED CAPITALIZATION
Item Amount (Kshs)
Owners contribution 800000
Total borrowed loan 400000
Friend / relatives / family
Contribution
100000
Total investment 1300000