BUSINESS PLAN OF
MYRRH FOODS
KIRINYA,NAMATABA,WAKISO
Table of Contents
1.00 Executive Summary:............................................................................................................................3
1.01 Company Overview:.........................................................................................................................3
a. Mission Statement...........................................................................................................................3
b. History and Current Status..............................................................................................................3
c. Markets and Products......................................................................................................................3
1.02 Objectives........................................................................................................................................3
1.03 RISK ANALYSIS......................................................................................................................................4
1.03.1 Mitigation of Risk:.........................................................................................................................4
2.00 Product or Service description:............................................................................................................4
Industry and Market Analysis......................................................................................................................5
a. Industry analysis..............................................................................................................................5
Customer analysis................................................................................................................................5
4. Marketing Strategy.................................................................................................................................5
a. Target Market Strategy....................................................................................................................5
b. Product/Service Strategy.................................................................................................................5
c. Pricing Strategy................................................................................................................................6
d. Distribution Strategy........................................................................................................................6
e. Advertising and Promotion Strategy................................................................................................6
g. Marketing and sales Forecasts.........................................................................................................6
5.00 Operational plans................................................................................................................................7
a. Operations Strategy.........................................................................................................................7
b. Material Needs for Operations........................................................................................................7
Financial Projections....................................................................................................................................8
Record/book keeping..........................................................................................................................8
7.00 Management Plan...............................................................................................................................8
c. Administrative Expenses..................................................................................................................9
Financial Summary..................................................................................................................................9
a. Financial Assumptions.....................................................................................................................9
Source of Funds.................................................................................................................................10
1.00 Executive Summary:
Name of the enterprise is Myrrh Foods, with interest in food chain business, focusing on food
production from local sources in uganda to be located in kirinya, Wakiso.
Business activity involves making and distribution of finished food products and food stuffs for
homes, wholesale venues, schools and restaurant deliveries
Financial implication is Ushs 11,500,000 as initial capital. Ushs 2,500,000 will be used to smoothen
the existing operation activities,Ushs 400,000 will be used to purchase stock and Ushs 5,000,000 will
serve as the operating cost for six months.
The business shall be financed by owners’ equity of Ushs 575,000 which amounts to 5% of the
capital investment while loan of Ushs 10,925,000 will be sourced from the financial institutions, and
will be paid over a period of 5 years with a negotiated single digit interest of 5%, with a moratorium
of 12 months.
1.01 Company Overview:
a. Mission Statement
The mission of the enterprise is to fill the gap in the Food chain Industry as well focusing on Food
Safety.
b. History and Current Status
The business has been in existence on Paper. However, given the demand Of Food and the increasing
Population status of the country, we have decided to birth it out while engaging more in the
sourcing,preparation and distribution, so the need for a business plan to source for funds to expand
the business. Initially the business will be Home based where Food stuffs will be sorted and packed
as desired by the Consumer. We have acquired the necessary knowledge and expertise needed for the
smooth operation of the business, but the financing of the business to a complete state where we can
start large scale production is the challenge.
c. Markets and Products
Food stuff production and value addition is a great business idea as number of people are increasing
hence need for food and they would also want to eat healthy. Food Stuff business has several
advantages, both for the business owners and the customers, such as-
The prices of the products are reasonable thus making it possible for greater number of
customers to purchase the food, which in turn increases the market reach for the business
owners.
Business owners on the other hand also benefit from creating its own branded packaging for
food stuffs .
The rate of return in the food business is quite good as the products are sold at a good rate
and there is a continuous demand for the products.
1.02 Objectives
Our objective is to achieve good quality produce, without compromising the standards as far as Food
safety is concerned. We also aim to achieve a total turnover of Ushs 12,500,000, a gross profit of
Ushs 3,500,000 and a profit after tax of Ushs1,350,000 by the close of our second year of operation,
having successfully served approximately 1000 demands for food in close to one year of operating
from the Stores.
There will be constant supply from identified farms so it will be a farm to table food products, with
no additives, paying attention to every health need of individual customers.
1.03 RISK ANALYSIS
The risk that may be associated with the business are the following:
Fire outbreak
Theft
Climate
Rodents
•
1.03.1 Mitigation of Risk:
The risks shall be mitigated by taking the following steps .
Regular fumigation and Laying of traps around and in the Stores/Premises.
Install fire extinguishers at strategic points in the premises
Train workers on fire safety measure with regular refreshers
Pay workers well and regularly to prevent massive Theft of produce
Ensure use of clinically approved hygiene kits by staff
2.00 Product or Service description:
2.01. Description of Products
Myrrh Foods will develop several Value addition to different kinds of local Food stuffs eaten in
Ugandan homes. They include Extension of shelf life for our food products by using technological
innovation.
In addition, Myrrh Foods, will package locally sourced from the market and We shall produce and
these foods in medium quantity, and it has sold out the instant it comes out into the market. The
estimated shelve life for the food will depend on the product moisture content and preservation
method to be used.
Myrrh intends to market these products in its dry form, sealed and well preserved in a
1,2,5,10,20,25,50 kgs packed sacks/ polyethene bags and some cereals will fried and roasted and
packed containers ready for consumption as per requirement from customers.
Industry and Market Analysis
a). Industry analysis
Food industry is a business which is critical to the economy. It is a vibrant business and huge
patronage nationwide. It has developed from the very rustic level to technology driven, where food
Processing and value addition can use technology to monitor how the right temperature of
preservation and preventing bacteria, from growing in the food. Records have it that food processing
and sales contribute to the Uganda’s GDP. Food processing aids the agricultural economy, which
accounts for about 30% of the GDP.
b) Customer analysis
There are several food businesses in Uganda, but not so many of them are involved in diverse
tradition and Demand of People. Besides the food stuffs, Consumable products that we shall produce,
we shall be involved in home deliveries, both in small and large scale. This will save the ever-busy
executives and workers the time spent in the purchasing in market places, trying to fix food after a
hard day’s work.
The pricing as well shall be our strong point. While we strive for good quality and quantity for price,
we also take into consideration our variety of customers and their earnings. The prices shall be
competitive without compromising quality.
We shall conduct a customer survey, using questionnaires and sampling of opinions. This will give
us an idea of the customer needs and expectations.
4. Marketing Strategy
a. Target Market Strategy
Our target market shall include:
Hotels,
Restaurants
Schools
Market – both open and chain-stores
Busy Executives
Individual and collective families(Homes)
The enterprise is located in Kirinya,Namataba, but the produce will reach to all the areas within the
Community and beyond on demand. Our target is that we will be carrying out both outdoor, and
home deliveries and to be the most sought-after food vendor.
b. Product/Service Strategy
The business as a policy will sell its products on cash basis. However, customers who order in large
quantities will be considered for credit on their own merit, based on negotiated terms and conditions.
c. Pricing Strategy
We shall take into consideration the market pricing and adjust in such a way that we do not hurt the
market and still make profit.
d. Distribution Strategy
We shall employ both wholesale and retail, home deliveries, supply to catering services
For the consumable products like fried soya,Groundnuts sesame and all kinds of paste: we shall
engage distributors and open a sales outlet in areas that we have no distributors. We will also offer
self-collection and direct delivery as the need arises. The products will be conveyed to target
locations by dedicated personnel, where the order is large. For small deliveries, customers may walk
in and take their deliveries or home delivered on agreed terms and conditions. We will however strife
to make deliveries, easing the stress on our customers. This will give us leverage over our
competitors.
For the food stuffs: We shall engage home and office deliveries and Individual Pickups.
e. Advertising and Promotion Strategy
We will leverage on the fact that they are many busy executives and workers in the Area, with
limited time to go out and purchase food stuffs and spices at home. To capture the audience, we shall
place adverts on both print and broadcast media, the social media and passing on leaflets as well as
mouth to mouth passing of information on the services.
SN Advert/Promotional Budget Details of Budget
Strategy
1 Signage 60000 Once
2 Brochures/Flyers 40000 Reprinted as need arise
3 Social Media Using existing group
on social media
4 Referals Commission paid on
customer purchase and
referral
Total Ushs 100,000
g. Marketing and sales Forecasts
We forecast to sell at least 10 sacks of the Food stuffs each week, delivering to homes, schools, and
individual traders. And to sell about 100,000 packs of consumable products to individuals in a
Month.
5.00 Operational plans
a. Operations Strategy
The food processing will start a purpose Structure Over time. Attached to it, will be a large spaced
room structure, to serve as the office space and another to serve as storeroom. The offices shall be
equipped with computers and monitoring equipment to ensure the safety of the customers and
employees.
b. Material Needs for Operations
SN Equipment Description/uses Key sources
1 Dryers For drying the food Open market
Produce and reducing
the moisture content.
2 Grinding Machine For grinding the dry Open market
food stuffs like
maize,soya,millet.
Mixing machine For mixing the Open market
products to form a India/china
blend
Packing machine For packing Open market
consumables in India/china
Tins/bottles
Food stuffs in sacks
3 Digital weighing scales For measuring the raw Open market
10-250kg material and finished
2-10 kg products.
100g-1kg
4 Large fryers For frying the products Open market
in large quantities
6 Sealing Machine For sealing the Sacks Open market
Mini/Large
7 Branded Tins/ bottles/Sacks/PVC For packing the Open market
products
8 Large Wash Basins For cleaning of spice Open market
and Herbs
Financial Projections
The following pages include projections for income, cash flow, balance statement, as well as
estimated financial ratios. These projections are for the consumables and food stuff sales
Opening stock Consumables.
Item Quantity Unit cost Total
250g 1000 2500 2500000
Special Mix 1000 10000 1000000
demand(Porridge
flour)
Food stuffs(non- To be determined
perishable)
Pricing Strategy
This will depend on the needs and order in relation to the cost of market products. However, the
consumables will be sold at a fixed cost as follows:
Item Description Proposed selling price
Roasted,Fried Cereals 250g 3500
Special order Per g 2500
Record/book keeping
SN Books Kept Reason
Purchase book Record of goods bought on credit
sales
Cash book Record of all cash
transactions
Receipt book For accountability
Sales book Record all transactions for the day
7.00 Management Plan
a. Company Organization Organizational chat
Manager - Overall head of the Enterprise, see to the daily management of the factory
Sales Supervisor – Supervises the sales team and ensure that consumers are satisfied
Accountant – Keeps the account and books.
Attendants – Ensure that the customers are served on demand
Cleaners –Engaged in ensuring that the premise is kept in neat and clean condition.
Transport supervisor- supervising all the transporters and ensuring that safe and timely delivery of
goods to all destinations.
b. Management Team – Manager, supervisors and accountants
c. Administrative Expenses
Position No of Staff Monthly salary Annual salary Allowances
Manager 1 1000000 12000000 25% of Monthly
allowances
Sales Supervisor 1 950000 11400000 25% of Monthly
allowances
Accountant 1 950000 11400000 25% of Monthly
allowances
Transport 1 900000 10800000 25% of Monthly
supervisor allowances
Attendants 3 400000 4800000 20% of Monthly
allowances
Cleaners 2 400000 4800000 20% of Monthly
allowances
Transport Crew 3 500000 6000000 20% of Monthly
allowances
Financial Summary
a. Financial Assumptions
Inflation: An assumption of 11.5% to the price of equipment and stock has been added to the financial
plan, giving room for inflation and other unforeseen factors that may affect the cost of production
Interest rate: An assumption of 0.9% would be made for the interest rate of loans to be obtained from the
financial institutions, which is lower than the commercial rate
Insurance: 5% insurance per annum for the equipment has been projected
Depreciation: An assumption of straight-line method has been used in calculating projecting of the
depreciation
Tax: 5% has been factored in as tax for the start-up business
Start-up capital Estimate
Activities Period Estimate (Ushs)
Pre-operating 2500000
Expenses
Initial operating 6 months 5000000
Expenses
Initial stock 400000
Total 11500000
Source of Funds
Source % % Amount (Ushs)
Personal Equity 5% 575000
Loan Proceed 75% 10925000
11500000
