Research consultancy

Research consultancy

Kireka quality clothing(KQC),

KIREKA OPPOSITE SHELL

  1. O Box 711, Kampala.

Telephone +

E-mail: kireka@gmail.com

 

Company ownership:

Mr. Wangolo Adams  is the owner of the company, which will remain under the ownership of the above named person for the time being until more parties sign up to join the company’s administration.

Financing:

The company will be fully financed by Mr. Wangolo Adams who has already put in place a net amount of 100 million Ugandan shillings sum of money to cater for the starting steps of the company. More financing will be done as the company grows and persons interests in buying shares in the company are welcome.

NB: Those interested in purchasing shares in the company are required to have not less than a net income of 10 million Ugandan shillings at their first purchase of the shares.

CONFIDENTIALITY:

The information above is confidential and is exclusively intended for the use by the owners of the company and those to whom it is transmitted. No part of this information may be reproduced without the permission of the owners otherwise such a person may face legal prosecution.

 

 

 

 

 

 

 

TABLE OF CONTENTS

CHAPTER ONE

1.0 EXECUTIVE SUMMARY…………………………………………………………..6

1.1 COMPANY SUMMARY…………………………………………………………….6

1.2 Objectives…………………………………………………………………………….6

1.3 Vision…………………………………………………………………………………6

1.4 Mission……………………………………………………………………………….6

1.5 Location………………………………………………………………………………6

1.6 Operating aspect………………………………………………………………………7

1.7 Financial aspect………………………………………………………………………7

1.8 Management summary………………………………………………………………7

CHAPTER TWO

2.0 INTRODUCTION……………………………………………………………………8

2.1 Vision…………………………………………………………………………………8

2.2 Mission……………………………………………………………………………….8

CHAPTER THREE

3.0 INDUSTRY ANALYSIS…………………………………………………..………..9

3.1 STRENGTHS……………………………………………………………………..…9

3.2 WEAKNESSES………………………………………………………………………9

3.3 ANTICIPATED GROWTH OF THE INDUSTRY…………………………………9

CHAPTER FOUR

4.0 COMPANY OVERVIEW………………………………………………………….10

4.1 LOCATION OF THE BUSINESS…………………………………………………10

 

 

4.2 COMPANY SERVICES………………………………………………………….11

4.3 COMPANY OBJECTIVES ………………………………………………………11

4.4 WHAT MOTIVATED FOUNDERS……………………………………………..12

4.5 MANAGAMENT TEAM…………………………………………………………12

CHAPTER FIVE

5.0 PRODUCTS/SERVICE PLAN ……………………………………………………13

5.1 DEVELOPING BUSINESS AND MARKET PLANS ………………………….13

5.2 POSITIONING ……………………………………………………………………13

5.3 Expected draw backs ………………………………………………………………13

5.4 Opportunities for our products/services …………………………………………..14

5.4.1 Liberalization of the economy ……………………………………………………14

5.4.2 Regional integration ……………………………………………………………….14

5.4.3 Government incentives ………………………………………………………….14

CHAPTER SIX

6.0 MARKETING PLAN ……………………………………………………………….15

6.1 Customers ……………………………………………………………………………15

6.1.1 Upcoming business and business men ……………………………………… ..15

6.1.2 Existing industries / businesses …………………………………………………..15

6.2 Marketing mix ……………………………………………………………………..15

6.2.1 Products / services ………………………………………………………………..15

6.2.2 Pricing strategy ………………………………………………………………….15

6.2.3 Channels of distribution …………………………………………………………16

6.2.4 Promotion strategy ………………………………………………………………16

 

 

6.2.5 Physical evidence ……………………………………………………………….16

6.2.6 Process and procedure …………………………………………………………..16

6.2.7 People ……………………………………………………………………………16

6.3 Market size and trends ……………………………………………………………16  6.3.1 Market growth ……………………………………………………………………..17

6.4 Competition and competitive edges …………………………………………………17

6.4.1 Strengths …………………………………………………………………………..17

6.4.2 Weaknesses ………………………………………………………………………..17

6.5 Estimated market share and sales ……………………………………………………18

6.6 On going market evolution ………………………………………….………………19

CHARPTER SEVEN

7.0 MANAGEMENT PLAN ………………………………………………………….20

7.1 Management team ………………………………………………………………….20

7.2 ORGANISATIONAL CHART ………………………………………………..20-21

7.3 RECRUITMENT PROCESS ………………………………………………………21

7.4 ANTICIPATED COMPETITORS REACTIONS ………………………………….22

7.5 GROWTH OF NEW COMPETITORS IN THE NEW MARKET …………………22

CHARPTER EIGHT

8.0 OPERATING PLAN ……………………………………………………………..23

8.1 OPERATING CYCLE ……………………………………………………………..23

8.2 GEOGRAPHICAL LOCATION ………………………………………………….. 23

8.3 FACILITIES AND IMROVEMENTS …………………………………………….23

8.4 STRATEGIES AND PLANS ………………………………………………………24

8.4.1 QUALITY CONTROL ………………………………………………………….24

8.5 REGULATIONS AND LEGAL ISSUES …………………………………………..24

CHARPTER NINE

9.0 FINANCIAL PLAN ………………………………………………………………25

9.1 START UP EXPENDITURE ………………………………………………………25

9.2 FIXED CAPITAL BUDGET……………………………………………………….26

9.3 OPERATING CAPITAL ESTIMATES…………………………………………….27

9.4 PROFOMA INCOME STATEMENT…………. ……………………………………28

9.4.1 PROJECTED BALANCE SHEET……………………………………………………………29

9.6 PROJECTED CASH FLOW STATEMENT………………………………………..30

APPENDIX ONE………………………………………………………………………32

APPENDIX TWO…………………………………………………………………..34-35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER ONE

1.0 EXECUTIVE SUMMARY

1.1 COMPANY SUMMARY

Welcome to, the perfect stop in case you are to buy garments like quality t-shirts, trouser, wedding gowns, traditional ‘kansus’ and gomesis among many other special offering available at kireka quality clothing (KQC) this clothing fit any occasion, be it weddings, graduation parties, birthday parties, to mention but a few. KQC is an idea that was started up by Mr. Wangolo Adam while at Kyambogo University, as a manger he will ensure that it is registered as a private limited company in June 2014 and start operating in August 2014.

1.2 Objectives

In order to reach its lofty goals, Kireka Quality Clothing (KQC), management must focus on the mission behind the vision. The following are the objectives;

  • To control more than 50% of the market share in Uganda by 2017.
  • To provide the same unbeatable quality of services every time.
  • To have over 700 projects completed annually.
  • Reach and maintain growth of sales by 17%.

1.3 Vision

Kireka Quality Clothing (KQC), management will strive to be the one retail clothing company everyone will look at first in case they are thinking of any wedding, traditional ceremonies or usual purchase of clothing i.e. we hope to be the best providers of garments in the area of clothing and create a more fair competition base for our fellow rival companies in Uganda.

1.4 Mission

We seek to serve through consistence professionalism, keeping in line with the needs of the market, utilizing the latest technology, providing predictable and professional working environment to our employees while ensuring that the clients receive the best quality at affordable prices.

1.5 Location.

Kireka Quality Clothing (KQC), will be located at kireka opposite shell kireka, it’s a busy place were, most working class and young professionals spend their time in kireka posh bars and restaurants.

 

Product and market analysis

The company will provide clothing which will be used in weddings , traveling, business clothing, and its will also tend to attract rich business men and women and also cater for general classes of people including students.

The key to a successful garment retailing is successful planning and management and kireka quality clothing and Managers will have a highly focused multi-dimensional strategy in place at all times to build its clients base quickly to a total of 200 clients in Kampala in the first year and to 1500 clients by the fifth year.

1.6 operating aspect

Kireka quality clothing ( KQC), will secure its offices on kireka opposite shell kireka which is near Kampala city in order to be as near as possible to our clients and to utilize communication and other infrastructure. This office will be fully equipped and operational.

The project will need apart from general merchandise, 3 computers, 3 printers , 3 chairs and tables this will help cashiers in executing their duties .

1.7 Financial aspect

The initial capital of 100 million shillings will be financed through income contributed by Mr. wangolo Adam.

This is a high profit making and a high margin business and hence is expected to receive sales revenue of 250 million shillings in the first year, 500 millions in the second year and 750 million shillings in the third year.

The profit alone for kireka quality clothing (KQC), will reach 650 million in the third year and on top of that the profit margins will be in excess of 30% after tax.

1.8 Management summary

The management will comprise of the managing director who will be the in charge, assisted by the senior business consultant, two other business consultants, the research consultants, the human resource managers and the office manager.

 

 

CHAPTER TWO

2.0 INTRODUCTION

Kireka Quality Clothing (KQC), is a business designed to meet the needs of the growing social needs of the world today. It’s an idea started up by Mr. Wangolo Adam who will register it as a private limited company in June 2014 and will begin operating in June 2014.

2.1 Vision

Kireka Quality Clothing (KQC), will strive to be the one event managing company everyone will look at first in case they are thinking of planning any events i.e. we hope to be the best service providers in the area of event management and create a more fair competition base for our fellow rival companies in Uganda.

2.2 Mission

We seek to serve through consistence, professionalism, keeping in line with the needs of the market, utilizing the latest technology, providing predictable and professional working environment to our employees while ensuring that the clients receive the best quality at affordable prices.

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE                                                                                    

3.0 INDUSTRIAL ANALYSIS

We are operating in a retail industry particularly the clothing industry. There are many players in this industry but the key competitors include winna classic, select garments, wool worths among others. The clothes offered by these companies include clothes for traditional wedding, wedding, going to school clothes, business suits, and many other designer clothes for celebrities and politicians.

Below is the analysis of the strength and weaknesses of our competitors.

3.1 strengths

  • Well established reputation because of offering latest fashions and designs.
  • Quality products being offered.
  • Good market research.
  • Enough facilities and equipment.
  • Timely response to customer needs.
  • Affordable clothing to customers.
  • Experience/ expertise in the business.
  • Established clients and enough support staff.

3.2 Weaknesses.

  • Expensive products that does not reflect economic conditions.
  • No personal touch with their clients.
  • No specialization thus limited expertise.
  • Obsession touch that is they work on big clients and government departments.
  • They do not provide a predictable and professional working environment for their clients and employees.

As Kireka Quality Clothing staff (KQC), we shall exploit the weaknesses of our competitors through making our products affordable to all clients, providing quality clothing and establishing a personal relationship with our clients.

3.3 Anticipated growth of the industry.

Garment Retail in Uganda is an upcoming but a steadily and rapidly growing industry as a result of many people venturing into business and a good investment; garment Retail is expected to grow even further. Statistics show an anticipate growth of 40% in a matter of three years

 

 

CHAPTER FOUR

4.0 COMPANY OVER VIEW.

Kireka Quality Clothing (KQC) is a company that is established to meet the needs of the ever changing social world.

4.1 LOCATION OF THE BUSINESS.

After considering different location options using factor rating method, Kireka Quality Clothing (KQC) management decided to locate its offices along Kireka opposite shell kireka

  • This location is ideal as far as our products are concerned; being and entry point and near Kampala where more than 60% of the Ugandan business community is situated. This will ensure accessibility to as many clients as possible.

The company will operate in a building which has enough parking spaces and located in a calm environment.

4.2 COMPANY SERVICES

The company will provide the following products;

  • Clothing for graduation.
  • Clothing for weddings.
  • Clothing for traditional marriages.
  • Business clothing.
  • Business suits.
  • Swimming costume among many others.

4.0 COMPANY OBJECTIVES

Kireka quality clothing (KQC) will focus on the vision and the mission to achieve the following objectives;

  • To control more than 50% of the market share in Uganda by 2017.
  • To provide the same unbeatable quality every time.
  • To have over 700 projects completed annually.
  • Reach and maintain growth of sales by 17%.

4.4 WHAT MOTIVATED FOUNDER

The overriding factors in the formation of Kireka Quality Clothing (KQC), and Managers is the desire to create a professional garment retail company in Uganda, credible and competent enough to render support to both the high and low class citizens of the country.

4.5 MANAGEMENT TEAM

The management team will be comprised of Mr. Fred Masiko as the managing director. He holds a bachelor’s degree in project management and development from Kyambogo University.

The company will also employ senior consultants each holding a masters degree in project management with experience of not less than three years in the same position, research analysts, and two business consultants and an office manager will be employed to boost the team. Mr. Wangolo Adam will not take part in the day to day activities of the company but will be the chairperson of the board of directors.

 

CHAPTER FIVE

5.0 PRODUCT/ SERVICE PLAN

Kireka Quality Clothing (KQC) is a company that will offer the following Products;

The products will include mainly business clothing for business people this will normally include suits and some designer clothes which facilitates easy conducting of businesses to the business men and women such include beach wear , designer jeans, t-shirts, and business coats, also KQC will also supply clothes to corporate companies whenever requested to do so such corporate companies in Uganda include pepsi, coca cola and many others, also  the business will offer designer clothes for  corporates, traditional designer clothes for both men and women for example clothes for traditional marriage ceremonies.

5.1 Equipment

Kireka quality clothing will have the most up to date fashion designs to both the regular customers and first time customers’ so that first time customers are able to be repeat customers.

Kireka quality clothing will also use CCTV camera in order to secure the business and avoid petty theft of most of its products by customer.

It will also use computers to enable accurate calculation by the cashier staff in order to avoid losses.

We also test the viability of the business using real and practical experience. This will benefit our clients through reducing failure rate.

5.2 Future products

The product begins with studying and understanding of client’s business objectives and constraints.

We then develop the appropriate plan that will fit the company’s financial requirements.

This service leads to predictable business environment, improved control and coordination and reducing business risks.

5.3 MARKET RESEARCH

We carry out research in a variety of business fields and compile reports on them.

This will help clients to be in a comfortable position of thoroughly knowing their customers and the markets they are going to serve.

5.4 POSITIONING

We will position ourselves as a unique team of experienced managers with proven entrepreneurial expertise. Unlike most business, KQC business solutions ltd is specialized on a much focused expertise than is hard to duplicate. No one can match us when we stay focused on this expertise and commitment to customer satisfaction.

5.5 EXPECTED DRAW BACKS

Our major drawback will be those companies that will want to duplicate our services. This is because the business community may not be aware of such companies and they will therefore end up being cheated by such companies. This will consequently lower our reputation and our sales projection also.

Another major drawback is limited area coverage as we shall begin our business in Kampala therefore other areas far from Kampala will not easily access our services.

5.6 Opportunities for our products/ services

The following presents opportunities for our services;

5.6.1 Liberalization of the economy.

This has seen many businesses come both local and foreign investors. This means increased demand for business in areas such as clothing, food retail.

5.6.2 Regional integration

The East African community for example in its latest integration agreements has allowed free movement of factors of production among the East African countries of Uganda, Kenya, Rwanda, Burundi and Tanzania is an opportunity for a wider market coming up of several new businesses and many others planning to start up soon thus increased demand for our Products.

5.6.3 Government Incentives to investors to increase the number of investors and consequently increase earnings from exports such as tax holidays are attracting a big number of foreign investors in the country. The fact that foreign investors have limited information about Uganda makes them a big target for our business as our services would be of great importance to them.

Other opportunities include political stability as a result of the return of peace in the once war ravaged northern Uganda and the neighboring countries like Sudan.

These have presented opportunities for new businesses coming up to serve the new markets thus the increased demand for business clothing business.

 

 

CHAPTER SIX

 6.0 MARKETING PLAN

6.1 Customers

The business will be based in kireka this place has got numerous benefits like it has a high population, gateway to Kampala, has a relatively wealthy working class population.

The customers for our services will basically be business people, government officials, students, pregnant mothers, young children, teens, existing businesses and those who want to establish businesses. Our customers will be put under the following segments;

6.2 Market segmentation

The company will segment its customers by type of income earned. We believe that the type of income a person earns say a lot about their desire to quality products.

Big corporate companies are more likely to buy best quality products. These companies will need to purchase clothing for their staff this is most likely to contribute to 50% of our revenue.

Government institutions like schools, hospitals, this will include shopping of school uniforms and clothing for medical staff in the government hospitals.

Individuals this will include mainly ordinary Ugandan business men, and also other individuals who will be regular purchasers of the company’s products.

University students are also expected to contribute a big market for the business; this is because most of the clothes at KQC are stylish clothes which are of latest trends.

6.3 Market analysis

 

6.1.2 Existing industries / businesses

Marketing or sales managers of companies in Uganda face the challenge of selling their products.

They often have small or no marketing departments. Our most important customers here will be executives in these companies who are sometimes charged with national and international focus.

6.4 Market mix

6.4.2 Pricing strategy.

We will ensure that our products are adequately priced. KQC business solutions will use penetrative pricing strategy. We will therefore take 10% of the total project as our fee.

On average we anticipate business that need plans and market research have their budgets above 10,000,000shillings and those of startup or feasibility over 5,000,000 shillings which has been got from previous expenses. Therefore on average market research will cost 500,000 shillings, other small projects will cost between 100,000 and 300,000 shillings.

6.4.3 Channels of distribution.

Our products will be taken directly to the clients without involving the middle men. This is to ensure quality service delivery.

Because of the limited staff at start, we shall mainly be concentrated in Kampala and the surrounding districts. As we expand, we will extend our services to the whole country and abroad.

6.4.4 Promotion strategy.

There are two main components of promotion. Getting reorganized and quoted as experts. Our public relations will be intended to position us as experts and we will make sure that our profile brochures reach the intended market.

We will also get speaking engagements at major trade shows and events, radios, television talks, word of mouth and reference sites. This goes to our core values, importance of fulfilling our promise to the customers. We also need to develop a strategy of using and dominating the internet.

6.4.5 Physical evidence.

We will make sure that our facilities reflect what we offer through the following;

We shall design a clean compound with enough parking spaces; the office building will be well painted and decorated, use of the best quality of papers among others.

6.4.6 People

Our entire sales staff will be professionals in entrepreneurship and business administration with the required experience. During the field study we will form a temporary basis, hire research assistants to gather information from the market.

6.5 Market size and trends

Since 1990’s, Uganda’s business community has been expanding. This is a result of favorable investment climate.

According to the record 1991, over 2000 foreign enterprises of various sizes have committed well over two billion dollars actual investment to Uganda for various projects ranging from agro- processing, manufacturing, energy, tourism, fisheries among others.

All the above indicate the growing size of the market for garment retail in Uganda.

6.5.1 Market growth

Although no accurate statistics are available, retail business in garment is expected to grow at a rate of 30% over the period of three years up to 2017.

6.6 Competition and competitive edges.

KQC business is not working alone in the business Garment industry. We face competition from a number of companies, firms and individuals. Our key competitions have already been discussed under industrial analysis. Here as already noted we shall their strengths and weaknesses and it’s on this basis that we shall compete favorably with them.

CHARPTER SEVEN

7.0 MANAGEMENT PLAN.

Mr. wangolo Adams an accounting and legal expert will be the chairman of the company while his longtime friend and business partner will be the managing director of KQC.

7.1 Management team

Mr. Fred Matsiko will assume the role of a managing director of Kireka Quality Clothing. He is accomplished professionally with a bachelor’s degree in project management and development of Kyambogo University and currently pursuing a master’s degree in marketing. He comes along with a wealth of experience and contacts having worked with NSSF for five years.

Miss Tabitha Mary who is a very prominent business lady in Kampala will not take part in the day to day running of the company but will be the chairperson of the board of directors and will play a virtual role as our point of contact to the business community.

The company will also employ senior business consultants who will be holders of masters’ degree in business administration with work experience of not less than three years in the same field.

A research analyst, two business consultants and a front office manager will be recruited to boost the service and ensure account serving. During the research project, we shall hire research assistants on casual basis.

 

 

 

 

 

 

 

 

 

 

 

7.2 ORGANISATIONAL CHART.

 

7.3 RECRUITMENT PROCESS

The board of directors who are the policy making body of the company will be selected by the owners of the company from the board of directors and it is from this board that the chairperson will be selected.

Other members of the management team will be chosen following a procedure that will include;

Advertising for the post.

Receiving and examining applications

Short listing

Conducting interview

And finally appointment of those who will have gone through the interview.

Recruitment will be based on merit and therefore for one to qualify, the person must portray a high level of competence as we are targeting provision of high quality services to our customers.

CRITICAL RISKS PROBLEMS AND ASSUMPTIONS

While we make projections of what we shall achieve in the forecast period, there certain critical risks which may affect our business and therefore should be anticipated. However, once these risks are critically analyzed we can come up with possible measures to avoid some of them.

Below we discuss the critical risks that may affect the realization of the projected sales.

7.4 Anticipated Competitors’ Reactions

 As we establish our company and begin winning customers, the larger branded competitors may reorganize our ninche and are likely to try all means to kill our products by copying or using ruthless promotional tricks such as destroyer pricing.

7.5 Growth of New Competitors in the Market.

New competitors may develop in the new markets and this may affect our realization of projected sales. The new competitors will reduce our market share by taking away some proportion of our customers.

Not realizing projected sales.

In making sales projections, we assumed a minimum of 29 inventory turns per month which gives us a projection of 174 million in the first year of operations from which sales are expected to grow by 15% per annum.

These sales will only be realized if the staff is committed to the vision of the company. Motivation in terms of employee participation in decision making, performance appraisal and feed back, employee empowerment, and welfare of the employees at the work place can be some of the ways of building this commitment and an attitude that is positive towards work thus development of a sense of belonging to the company. This together with other co-operant factors such as the working environment i.e. congested or adequately spaced will help us achieve this objective.

 

 

 

 

 

 

CHAPTER EIGHT

8.0 OPERATING PLAN

8.1 OPERATING CYCLE

Consulting services are based on information that comes as a result of extensive research in the field. This tends to make business consulting lead time somehow long. We shall however try to make our lead time as short as possible depending on the services needed and the amount of research it involves.

The completion of the feasibility study report, business marketing plans take two months while other small projects take less than one month.

Though business consulting is an ongoing activity that is not necessarily influenced the annual seasonal changes, it will sometimes occur that we get seasons when demand for our services will be high country wide. During such seasons, we shall hire more staff and equipment on a temporary basis to help us meet the high orders of business startup requirements.

8.4 STRATEGY AND PLANS.

8.4.1 Quality control. 

Quality is a dream of every business as it helps build a good reputation (goodwill) for any company and we are not an exception. At kireka quality clothing, we shall ensure quality of our services through the following;

  • Design our services to meet the expectations of the customers and maintain quality.
  • Develop systems and procedures for continuous appraisal of customer’s expectations, their achievement, responses and complaints in relation to the services offered.
  • Offering quality training programmes for our employees which embrace the service values and culture of the organization as well as operational aspects concerned with knowledge, skills, attitudes and behavior which will be routinely provided to offering systems for speedy competent problem resolution when things go wrong.

8.5 REGULATION AND LEGAL ISSUES.

Kireka quality clothing will be a law abiding company. The company will register with the registrar of companies so as to operate legally and will always present it financial statements to the tax authorities for proper tax assessment as provided for by the company’s act. Besides that, we shall ensure that our operations are within the prescription of the articles and provisions of the constitution of Uganda so as to remain operating lawfully.

 

 

 

 

 

 

 

 

 

CHAPTER NINE

9.0 FINANCIAL PLAN

After initial capitalization, growth will be financial through internal cash flows provided sales targets are met.

9.1 START UP EXPENDITURE.

Stationery and supplies300,000
General inventory50,000,000
Registration and legal expenses1,000,000
Rent prepayments1,800,000
Office renovation3,220,000
Water deposit120,000
Power deposit600,000
Telephone and fax installation3,000,000
Advertising100,000
Contingencies1,095,500
Sub total 22,115,500
Assets  
Initial bank deposit13,654,500
Fixed assets  
Motor vehicles9,000,000
Computers2,400,000
Printer500,000
Total assets27,884,500
Total start up requirements100,000,000

 

 

 9.2 Fixed capital budget

Assets QuantityUnit cost (shs)Amount  (shs)
Motor vehicle19,000,0009,000,000
Computers3800,0002,400,000
Printer1500,000500,000
Executive desk6120,000720,000
Executive chairs12100,0001,200,000
Filling cabinet370,000210,000
Money safe1200,000200,000
Managers vehicles3900,0002,700,000
Total 30 32,230,000

 

 

 

 

 

 

 

 

 

 

 

 

 

9.3 Operating Expenses Estimates

ExpensesMonthlyAnnually
Salaries3,000,00036,000,000
Field research costs2,000,00024,000,000
Rent300,0003,600,000
Electricity100,0001,200,000
Water20,000240,000
Fuel3,000,00036,000,000
Telephone300,0003,600,000
Repairs and maintenance500,0006,000,000
Office supplies300,0003,600,000
Depreciation   
Motor vehicle 10% on cost 2,700,000
Office equipment 25%(cost) 580,000
Furniture and fittings 233,000
Interest on loan 20% p.a 4,000,000
Advertisement and sales  promotion400,0004,800,000
   
Total  94,153,000

 

 

 

 

 

9.4 Proforma income statement

The following are the financial assumptions used as a basis for the projected income statement for kireka quality clothing company.

  • All expenses apart from depreciation increase at 10%
  • Margin and expenses are consistently controlled and net profit increases nicely. Sales and expenses increase at a rate of 10%.
  • Interest rates are assumed to remain unchanged in the project period.
  • There are uniform exchange rates in the projected period.
  • Tax rate is 30% and does not change over the period.
  • Dividends rate is 10% and is expected to increase by 5%

 

9.4.1 PROJECTED INCOME STATEMENT.

PARTICULARS201120122013
Sales174,000,0001,914,000,0002,105,400,000
Direct and indirect expenses94,153,000103,548,500113,903,350
Profit before tax79,847,00087,851,50096,636,650
Corporation tax 30%23,954,10026,355,45028,990,995
Profit after tax55,892,90061,496,05067,645,655
Dividends4,000,0004,200,0004,410,000
Retained earnings518,929,90057,286,05063,235,655

 

 

 

 

 

9.5 Proforma Balance Sheet

Period201120122013
Non –current assets’ net of depreciationShs  “000”Shs “000”Shs “000”
Motor vehicle299502160018900
Office equipment2727021701860
Office furniture3940.517041491
Total 59160.52547422251
Current assets   
Inventory725079758772.5
Bank balance100482.57134772215.5
Total current assets 107732.5ss7932280988
Total assets 166893104796103236
Equity and share capital800004000040000
Retained earnings488935729663236
Liabilities   
Post bank loan3500075000 
Total equity and liabilities 166893194796103236

 

 

 

 

 

 

9.6 Projected Cash Flow Statement

Period 201120122013
Cash collections    
Sales174,000,000191,400,000210,540,000
Collections from previous period 72,500,0007,975,000
Less end of year debtors(7,250,000)(7,975,000)(8,772,500)
Cash for the period166,750,000190,675,000209,742,500
Cash expenses    
Salaries3,600,0003,960,0004,356,000
Field research24,000,00026,400,00029,040,000
Rent3,600,0003,960,0004,356,000
Electricity120,0001,320,0001,452,000
Water240,000264,000290,000
Fuel3,600,0003,960,0004,356,000
Telephone260,000285,000324,000
Repairs and maintenance6,000,0006,600,0007,260,000
Office supplies4,200,0004,190,0005,435,000
Interest on loan1,000,000750,000375,000
Dividends4,000,0004,200,0004,410,000
Corporate tax 2,395,4102,635,545
Loan repayment5,000,0007,500,0007,500,000
Fixed capital budget32,230,000  
Total cash expenditure 124,750,000126,428,100137,666,850
Balance b/d 60,000,000102,000,000166,246,900
Surplus (total )102,000,000166,246,900238,322,550
Surplus generated from sales 420,000,000106,246,900178,322,550

 

 

9.7 Break even chart

Fixed costs  Amount (shs)
Salaries36,000,000
Rent3,600,000
Repairs and maintenance6,000,000
Tax insurance2,400,000
Total expenses 15,600,000
Estimated sales174,000,000

 

 

 

 

 

 

 

 

 

 

 

APPENDIX ONE

Loan application letter for Kireka Quality Clothing (KQC)

P.o box 234

Kampala

 

Kireka Quality Clothing

Limited, Kampala

P.O. box 234

26th Oct. 2012

The manager

Post bank Wandegeya branch

P.o box 486

Kampala

Dear Sir/madam,

              RE: APPLICATION FOR A LOAN

As the management of kireka quality clothing, we do submit our application for a long term loan of 20 million shillings to your office. This loan is to enable us cover part of our start up expenses for our new venture to be registered in June 2014 and commence operations in August 2014.

This business is going to be registered as private limited company with Mr. Fred Matsiko as managing director and Mr. Wangolo Adams as chairman located at kireka opposite shell petrol station jinja road.

With projected sales of shs 174,000,000 in the first year and a profit margin of 30% we shall be able to repay the loan in a period of five years.

The decision to seek assistance from your bank was passed in a meeting held on 10th September to disclose any information where need be.

We look forward to your positive response.

Yours truly,

 

Mr. Fred Matsiko

Managing director

Kireka quality clothing

 

 

APPENDIX TWO

 

CURRICULUM VITAE

Bio data

Surname: wangolo

Other names: Adams                                 

Sex: male                                                  

Marital status: single                                

District of birth: Kampala                              

Nationality: Ugandan

Residential address: c/o Mr. & Mrs. Wangolo Adams, kyambogo university

, P.O.BOX I, Kampala.

E-mail: matsikofred@gmail.com

 

Contact:

0774534808

 

 

 

Education:

  • 1995- 1997: Little Lamb nursery school- nursery
  • 1998-2000: Jack and Jill Primary school- primary
  • 2000-2004: Greenhill Academy- primary
  • 2005-2008: King’s College Budo-O’ level
  • 2009-2010: Uganda Martyrs S.S Namugongo-A’ level
  • 2011-date: Kyambogo University

 

Achievements:

  • 1999-2000:Class prefect- Jack and Jill Primary school
  • 2002: Winner anti corruption art competition- Nomo art gallery
  • 2003: Best dancer MDD- Greenhill Academy
  • 2004: Sportsman of the year- Greenhill Academy
  • 2005-2008: Class fellowship leader- king’s college Budo
  • 2007-2008: Internal Auditor Junior Debating Club- King’s College Budo
  • 2007-2008: Treasurer cricket club- king’s college Budo
  • 2008: Gold medalist 200m sprint- King’s College Budo
  • 2008: Best actor MDD- King’s College Budo
  • 2008: Best bowler weather head cricket Tournament- King’s College Budo
  • 2009-2010: chief judge- Uganda Martyrs S. S Namugongo
  • 2010: Teenager of the year- Buzz teens Uganda
  • 2010:Gold medalist 400m sprint- Uganda Martyrs S. S Namugongo
  • 2010: 1st runner up 200m sprint- Uganda Martyrs S. S Namugongo

Skills

  • Good at spoken and written German and English.
  • Sportsman i.e. cricket, athletics and swimming.
  • Art and craft
  • Music, Dance and Drama.

 

 

 

 

 

 

 

 

 

KYAMBOGO UNIVERSITY

FACULTY:

DEPARTMENT:

COURSE:

COURSE UNIT:

LECTURER:

YEAR:

SEMESTER:

NAME

REG NO:

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