BUKENTAB SOAPs

BUKENTAB SOAP

LOCATED AT KIREKA KABAKA ROAD

KYAMBOGO UNIVERSITY

NAME                                     :         BUKENYA LAWRENCE

REG. NUMBER                      :         16/U/12717/PLE/PE

COURSE UNIT                       :         ENTERPRENEURSHIP PRACTICE

YEAR                                      :         III

SEMESTER                             :         I

GROUP                                   :         A (EVENING)

LECTURER                            :         MADAM. PHIONA NAKATETE

BUSINESS PLAN

TABLE OF CONTENTS

TABLE OF CONTENTS. iv

CHAPTER ONE.. 1

EXECUTIVE SUMMARY.. 1

1.0 Summary. 1

CHAPTER TWO.. 3

2.0 Vision of the Company. 3

2.1 Mission of the Company. 3

2.2 Motto. 3

CHAPTER THREE.. 4

BUSINESS IDEA.. 4

3.0 Introduction. 4

3.1 Market Segments. 4

3.2 Competitive Rivalry. 4

3.3 Performance of the Competitors. 4

Weaknesses of the Competitors. 5

Threats to Bukentab soaps. 5

CHAPTER FOUR.. 7

MARKETING PLAN.. 7

4.0 Target Market 7

4.1 Distribution Strategy. 7

4.2 Product Strategy. 7

4.3 Pricing Strategy. 7

Prices of products sold at Bukentab soap. 7

4.4 Promotion Strategy. 8

4.5 Market Analysis. 9

4.6 Market Segments. 9

4.7 Marketing Mix. 11

4.7.1 Product Link. 11

4.7.2 Price. 11

4.7.3 Channel of Distribution. 12

4.7.4 Promotion. 12

4.8 Market Size and Trends. 12

4.8.1 Competitors. 12

4.8.2 Strength of Competitors. 12

4.8.3 Weaknesses of Competitors. 13

4.9 Value Addition. 13

4.10 Market Evaluation. 14

4.11 SWOT Analysis. 14

4.11.1 Strengths. 14

4.11.2 Weaknesses. 14

4.11.3 Opportunities. 15

4.11.4 Threats. 15

CHAPTER FIVE.. 16

FORM OF BUSINESS. 16

5.0 Introduction. 16

5.1 Company Form.. 16

5.2 Land and Equipments. 16

5.3 Strategy and Plans. 17

5.4 Quality Control 17

5.5 Market Evaluation. 17

CHAPTER SIX.. 19

STAFF. 19

6.1 Introduction. 19

6.2 Management Team.. 20

6.3 Managing/Executive Director 20

6.4 Human Resource Manager 20

6.5 Production Manager 21

6.6 Finance Manager 21

6.7 Sales and Marketing Manager 21

6.8 Procurement Manager 21

6.9 Recruitment Strategy. 21

Training and Development 23

Remuneration Scheme. 23

Board of Directors. 24

CHAPTER SEVEN.. 25

LEGAL RESPONSIBILITIES AND INSURANCE.. 25

7.0 Introduction. 25

7.1 Regulatory and Legal Issues. 25

7.2 Land and Equipments. 25

7.3 Employees. 25

Remuneration Scheme. 25

CHAPTER EIGHT. 27

COSTING.. 27

8.0 Introduction. 27

8.1 Background. 27

LABOUR COST. 28

TOTAL COST. 28

8.2 Company Location. 28

8.3 Company Ownership. 29

8.4 Company Objectives. 29

8.5 Legal Status. 29

8.6 Investment Capital 29

8.7 Primary Products. 30

8.8 Land and Equipment 30

CHAPTER NINE.. 31

FINANCIAL PLAN.. 31

9.0 Introduction. 31

9.1 Capital Investment and Financing. 31

9.2 ESTIMATED SALES AND COST PLAN.. 31

ESTIMATED CASH FLOW FOR THE FIRST SIX MONTHS. 32

ESTIMATED CASH FLOW STATEMENTS FOR THE FIRST THREE YEARS. 32

9.4 Cash Flow Analysis. 33

ESTIMATED CASH FLOW STATEMENT FOR THE FIRST THREE YEARS. 33

ESTIMATED LOAN REPAYMENT SCHEDULE FOR BUKENTAB SOAP. 34

BUKENTAB SOAP DEPRECIATION SCHEDULE.. 34

CHAPTER TEN.. 35

REQUIRED START UP-CAPITAL.. 35

10.0 start up capita. 35

Contribution will be as follows. 35

CHAPTER ELEVEN.. 36

SOURCES OF START-UP CAPITAL.. 36

11.0 Introductions. 36

APPENDIX A.. 37

CURRICULUM VITAE FOR CHAIRMAN BOARD OF GOVERNORS. 37

APPENDIX B.. 39

LOAN APPLICATION FORM… 39

CHAPTER ONE

EXECUTIVE SUMMARY

1.0 Summary

This is a proposal to start up a Liquid soap business which will be known as Bukentab soaps. The company will carry out its operations on large house that will be rented and branded with the company names and logo. It will be located in Kireka Kabaka road (Kampala). The contact telephone for the company will be 0412-703115045, on the box number 2050, with the e-mail address; Bukelaury@gmail.com, and the website www.Bukentabsoaps.co.ug.

Bukentab soaps will engage in the manufacture of a wide range of washing soaps, Hand washing soaps, shower gels, JEZZ for washing toilets and pit latrines, the business will also be involved in training the youth with skills in soap making so that they are able to create for themselves self employment. The business will operate on both retail and wholesale basis.

The following persons after the pursuance of the memorandum of association will take up shares in capital of the company with their respective shares.

Bukentab soaps will be incorporated as a private company as in laws of Uganda with initial financing amounting to Ushs 20,000,000 plus a loan of Ushs 9,650,000 which will be obtained from Centenary bank and be paid back after 5 years in installments.

The target market of Bukentab soaps will be supermarkets, wholesalers, retailers, schools, NGO’s, passengers, students, individual persons and other business persons. And the targeted areas include mainly residents of Banda, kireka, Namugongo, Bweyogerere and Nakawa, including other districts neighboring Kampala later the company plans to operate across east Africa so as to increase its sales.

The company will have a Board of Directors team comprising of the share holders and the management team which will include the Managing Director, Human Resource Manager, Procurement Manager, Sales and Marketing Manager, Production Manager. Each will be qualified in that field with necessary skills and competencies required for the better operations of the company. The staff will also be trained to improve on their skills and gain expertise.

The money that is share capital plus the loan which will be got from centenary bank is estimated at 9,650,000, this will be spent on buying various materials needed in the start of the business like Basins, Drums , mingling sticks, Hiring cars for transportation of the finished products, labels, jerry can and renting the premises for the manufacturer of the different soaps , Hand washing, bathing and Jezz for washing latrines.

The loan repayment will be met in a period of 5 years. The company is expected to succeed after 7 years in operation that is after clearing the loan, this will involve extensive research on its products and the competitors so as to analyze evaluate and improve on its products specifically in shower gels and Hand washing soaps because of the current stiff competitors in the market.

The company will have financial statements as a basis for financial planning.

CHAPTER TWO

2.0 Vision of the Company

To become the leading producer of quality Soaps products in Uganda and the region as well.

2.1 Mission of the Company

To manufacture the best quality and affordable soaps products for Hand washing, shower gels, Jezz for washing pit latrines and Toilets timely, cost effective measures, and reliable supply putting into consideration the changing valuable needs of the customers world over.

2.2 Motto

“Quality soap for better health”

CHAPTER THREE

BUSINESS IDEA

3.0 Introduction

Bukentab soaps will engage in the manufacture of a wide range of washing soaps, Hand washing soaps, shower gels, JEZZ for washing toilets and pit latrines. The business will operate on both retail and wholesale basis.

3.1 Market Segments

The company’s well known market segments include;

• Schools
• Retailers
• Whole sellers
• Super markets
• Clinics or health centers
• Passengers
• Individual buyers

3.2 Competitive Rivalry

Bukentab soaps expect to have some competitors including;

• Mukwano
• Bidico
• Other small scale soap manufacturers

3.3 Performance of the Competitors

Given that the competitors are already in operation and have been in operation for quite a long period, this has enabled them to have a stable place in the market.

Strength of the Competitors

• They have already established market segments for their products.
• Their products have already been launched and promoted; this enables them to get market.
• Their standing expenses have already been covered therefore they are now making profits.

Weaknesses of the Competitors

The company’s competitors are associated with the following weaknesses;

• Some do not exercise good customer care which discourages customers from enjoying their products.
• Some sell inferior products to customers.
• Some have failed to carry out extensive advertising of their products and this hinders them from capturing a large market base.

Basing on the above strengths and weaknesses of competitors, Bukentab soap . will do the following so as to cope up with current competitors;

• The company will provide quality products to customers so as to gain more customers.
• Carrying out promotions to advertise the products to the public.
• The company will sponsor different programs on hygiene on radios and televisions so as to gain popularity in order to widen its market.
• Product trials will also be organized that is to say giving out free liquid soaps to various customers so as to know which areas of the product need improvement through feedback.
• Attending trade fairs and exhibitions so as to introduce its products to the public.

OPPORTUNITIES

• Bukentab products will be cheaper so there will be increased market
• Bukentab will ensure that there is constant supply so that customers’ do not fail to get the products in the market
• Bukentab will also be managed a by team of experienced professionals
• Bukentab will also create an alliance with the suppliers of the raw material to ensure that there is constant supply
• Creating an alliance with retailers and wholesalers will also enable the organization to beat up its competitors

Threats to Bukentab soaps

Our company is threatened by the following;

• High taxes that may be charged by Kampala City Council and Uganda Revenue Authority.
• Presence of highly concentrated market
• Fire and theft breakout.
• Threats of new entrants in operation.
• Threat of establishing markets in existence of already existing firms.

Distributional channels

The company will distribute products to different retailers by use of pickups, and trucks.

The company will also rent shop in areas like Kireka, Banda, Namugongo and Kasanga.

The company will also hire hawkers to move with the company products from door or to places like university hostels, places of residences offices and markets.

CHAPTER FOUR

MARKETING PLAN

4.0 Target Market

The target market will be global wide comprising of the following;

• Schools, i.e. students
• Retailers of all kinds
• Super markets of all kinds
• Wholesalers
• Passengers
• Health centers around
• Traders in the area
• offices

4.1 Distribution Strategy

The company will use both direct and indirect channels of distributing its goods and services to the potential clients.

The products will be distributed through sales representatives, personal selling and promotion.

4.2 Product Strategy

Bukentab Soap will offer good quality soap products from different corners of Kampala and beyond.

4.3 Pricing Strategy

Bukentab Soap products will be priced as below.

Prices of products sold at Bukentab soap

4.4 Promotion Strategy

Bukentab soaps will have various ways of creating awareness of the goodness of the company products. The company products will carry out the promotion strategy which will include;

• Advertising through newspapers and radios
• Use of posters
• Sponsoring of programs
• Trade fairs and exhibitions

The table below shows the total expenditure of Bukentab Soap on the promotion media;

4.5 Market Analysis

Due to the increased need of soap products to improve on the hygiene,  Bukentab soap products will have vast scope of market share and will win a wider competitive advantage.

4.6 Market Segments

The main customers for Bukentab Soap products will be as listed below with their respective percentage market share of the products.

Traders                                    20%

Students and schools               20%

Retailers and wholesalers        20%

Passengers                               20%

Health centers                         15%

Others                                     5%

The target areas in relation to market segments will be Kampala city in the following divisions;

Channels through which customers will access our products

• The customers will be easily reached because the company will hire four delivery vehicles.
• Product trials will then be conducted; this will involve giving free sample of products to our potential customers. This will enable us to come up with new innovations after being informed about the areas of the products that need improvement thereby supplying quality products to our clients.
• The customers to the company will buy products through our manufacturer representative and sales representative.
• Some customers will access our products through direct selling.
• The customers will access the products immediately after paying for them.
• Invoice selling is yet another way through which our products will reach our potential customers.
• The contacts of potential customers will be raised so as to contact them in case of demand/need.

Therefore, after one year in operation, Bukentab soap products will have won a market share of 70% in the Soap Industry.

4.7 Marketing Mix

4.7.1 Product Link

The products will be packed and blended in an attractive way and every product will have the company name on it, and the company’s delivery vehicles will also be branded to easily distinguish them from other companies.

4.7.2 Price

The company prices will easily be accessible by all social classes that is to say; they will not be very expensive. The products will be priced as shown below;

• Customers who buy in bulk will be given discounts.
• Credit sales will be made available with the potential customers and daily customers which will be payable within one month period.

4.7.3 Channel of Distribution

The channel of distribution for the company will be;

• • Sales representatives.
  • Through wholesalers.
  •  Retailers.
  • Direct selling
  • Product trials like free samples and entertainment

4.7.4 Promotion

Our products will be promoted through various ways as listed below;

• Advertising through newspapers and radio stations
• Public relations
• Personal selling
• Sales promotion
• Direct mail (E-commerce)

4.8 Market Size and Trends

4.8.1 Competitors

The company competitors will be;

• Mukwano
• Bidico
• Importers of soap
• Other small scale manufacturers

4.8.2 Strength of Competitors

They already registered by the registrar of companies.

They have already established market segments for their products; this enables them to easily sell their products.

These companies have already established their structures which enable them carry out their operations.

Many customers are now used to the products of their companies.

4.8.3 Weaknesses of Competitors

• Some sell substandard products to their clients.
• Their products are very expensive to be accessed by customers especially in the local setting.
• They have failed to conduct product trials hence making it difficult for them to know the areas that need to be improved on their products.
• They use . languages for example English, Luganda and Swahili which are not known by some tribes and illiterates.

Despite the above strength and weaknesses of competitors, the technical staff of Bukentab Soap will focus on the following as the main aspects in operation, despite the existence of competitors.

• Use of variety of languages
• Provision of quality products
• Exercising good customer care to its customers
• Giving bonuses to prominent customers
• Ensure good negotiations with customers
• offering discounts for bulky purchases

4.9 Value Addition

• The firm in the struggle to ensure its market penetration will give free entertainment to our clients who lack information about our products.
• The company will also give discounts to prominent customers who buy in large quantities so as to be able to manage our customer retention program.
• We shall also train our staff on how best to produce quality soap in the market.
• The company will also put much emphasis on customer care service involving handling customers or clients, answering of calls, communication skills and appreciation to customers who buy and to those who do not, all aiming at making good public image for the company.

Bukentab Soaps Will Capture a Share of the Market because of the Following Reasons.

• The company will offer free entertainment and display of the products to customers so as to capture competitive space.
• Customers are interested in new products on the market.
• Company will appoint sales representatives from door to door to market the products.
• The company will put in prizes in the products for the customers to win in the period of two years. Examples of prizes include; televisions, school fees, cash and scholarships.
• Sponsoring of the programs on various mass media like radio, televisions, among others.
• Getting involved in promotions and trade fairs.
• Internet marketing of the products so that the products can acquire global market.
• Allying with competitors so as to sell the products at the same prizes and this will help to share ideas with them about the products.
• Sensitization of customers about the duplicate products in relation to Bukentab Soaps.

4.10 Market Evaluation

Bukentab Soaps will carry out products trials so as to know which areas need improvement on the products.

Researchers will also be employed to carry out market research on the products which will improve on the products quality.

The company will also carry out in service training and having workshops for employees so as to produce quality products (soaps and shower gels) to win market as a way of evaluating various departments in Bukentab Soaps.

4.11 SWOT Analysis

Bukentab Soaps will be at the signal of major opportunity. It will have the strengths of combined expertise in advance, sophisticated technology and quality soaps production. The major weaknesses will be as the threat of potential competitors and need to penetrate the market.

4.11.1 Strengths

• Diversified market through producing high value soap products.
• Emphasizing good quality products.
• Increased capital from growth in sales.
• Elasticity of demand.

4.11.2 Weaknesses

• We will face liquidity problems in a short run.
• There is a high level undifferentiated product in relation to our competitors’ products.

4.11.3 Opportunities

• Marketing through various media like internet marketing. (E-commerce) and opening up a website.
• In the long run, there is a possibility of merging and making strategic alliances to have common prizes for the common products with our competitors
• An opportunity of cheap labor especially operatives.
• In the long run, there will be introduction of new products like hair shampoo, dog shampoo and cosmetics.

4.11.4 Threats

• Tax policy that is not friendly to a new company like Bukentab Soaps. This may as well be influenced by competitors.
• Facing the existence of strong experienced competitors of the same products.
• Scheme of black mail, duplication of Bukentab Soaps Products by competitors and non registered companies.
• Bukentab Soaps will have to construct experts in the same field of business, this will be done through workshops, which help to discuss and analyze challenges and opportunities in relation to its competitors. These experts will be members of the Board of Directors.

CHAPTER FIVE

FORM OF BUSINESS

5.0 Introduction

The company will be located in Kireka-Kabaka road, Kampala. This is for easy access in terms of transport. The labor is readily available due to high population within the area. Supply of water, materials or resources and electricity is also easy here.

5.1 Company Form

Bukentab soap will be a partnership business; the owners of the business have chosen to be partners because of the following advantages

The advantages of a partnership include:

• Sharing of risks is possible
• Chances of a big capital is possible because there is more than one person involved.
• business owners can make good decisions because there is sharing of information
• The cost of starting the business is low
• In case of the partners being sick another partner can manage the business

However this type of business may also face the following disadvantages which include:

• Decision making may delay because there is more than one person involved
• procedures are long
• Disagreements between partners can lead to collapse of the business

5.2 Land and Equipments

Currently the company does not have land or buildings however it will rent large premises in kireka so that it is able to accumulate capital in the long run it will be able to acquire capital for development.

Therefore, below is the start up budget proposal indicating the estimated summary of the equipments to start up business.

Estimated Budget for Requirements Needed to Startup the Company

Some equipments and requirements will be required during construction and others after completion. In the next 3 years, the company will require machinery within the same period of the time; land will be enough but expansion of production units will be determined by the sales.

5.3 Strategy and Plans

Manufacturing process of soap products by Bukentab Soap involves mixing up of various ingredients and other necessary raw materials depending on the products.

Each product requires different production process. The operating facilities required here include equipments that is; jerry cans, drums, mingling sticks however with time the company will buy machinery in order to do the work.

5.4 Quality Control

Bukentab will have products departments that will engage in production and controlling its employees with Human Resource Department which will ensure quality manpower by having right employees in the right place because quality products depend on them.

The potential suppliers of raw materials will be markets and industries dealing machinery.

5.5 Market Evaluation

The company will evaluate the conditions in the market and satisfaction of the customers using the following tools;

• Questionnaires to determine customer satisfaction.
• Interviews to get suggestions for improvements.
• Direct observation that is, observing of the market conditions and change in prices.
• Focus group discussion method.

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CHAPTER SIX

STAFF

6.1 Introduction

The shareholders in the company will have a responsibility for the financial and administrative functions of Bukentab soap. The executive power shall be rested upon the board of directors meeting. They will approve and pass out rules and regulations of the company.

The general assembly will elect the chairman of their choice and the executive members with the approval of the general meeting.

The finance committee charged with the finance of the company. Administrative committees, charged with recruitment of personnel and staff.

Public accounts committee, to plan for the finances and review the accountability of the company and reports and watch over the company’s financing. Procurement committee will be charged with processing tender and general purchases.

The organizational structure will be as follows.

6.2 Management Team

Bukentab soap will be divided into departments each with a leader. The departments will include the following;

• Human resource department headed by the human resource manager.
• Finance department headed by finance manager.
• Productions department headed by the productions manager.
• Sales and marketing department headed by the sales and marketing manager.
• Procurement department headed by the procurement manager.

6.3 Managing/Executive Director

The Managing Director will be Ms. Ategeka Annet because of his experience in the same post for five years with Family Supplies and Century Bottling Company, where she has been working as a director and sales officer respectively.

He has a Degree in Bachelor of Ethics and Development Studies from Uganda Martyrs University, and Certificate in Computer Applications from Makerere University.

The managing director will perform the following duties;

• Plans for the company and ensure that such plans are objectively followed.
• Preparing monthly and annual reports.
• Overseeing operations of the business.
• Serves as a secretary to the Board of Directors.
• Do such other duties as may be assigned by the Board of Directors.

6.4 Human Resource Manager

This will be Mr. Kalule Andrew; he will provide all the human resource requirements. He has worked for over 4 years in Bidco Uganda . as the personal officer. He has a Bachelor’s degree of Management Science from Kyambogo University, certificate in Human Resource Management from Uganda Management Institute. He will be in charge of recruitment, selection, approval, promotion and human resource process.

6.5 Production Manager

The production manager will be Ms. Namanda Hilda who completed her under graduate Bachelor’s Degree in Science Technology, Biology from Kyambogo University. She worked in the same porti-folio for two years with Delight Suppliers   and one year with Hotel Africana. She will be responsible for all production activities in the company.

6.6 Finance Manager

The finance manager here will be Ms. Nantume Veronica, a well qualified person of C.P.A from Institute of Certified Accountants, Makerere and a holder of Bachelors Degree in Accounting and Finance from Makerere University. She has a working experience of four years got from Finance Trust. She will oversee all the finances of the company, and will balance the books of accounts of the company.

6.7 Sales and Marketing Manager

She will be Mr. Ntale Geofrey. He is a well dedicated person with experience in business marketing for over 4 years, worked as a sales agent for 2 years in Housing Finance and afterwards Spear Group of Companies for the last 2 years.

He attained a certificate in sales and marketing. Thereafter, joined Uganda Martyrs University and attained a Bachelors Degree in Micro Finance.

Hence, he operates at sales and marketing department of the Kyobe Restaurant and Takeaway..

6.8 Procurement Manager

The procurement manager will be chair board members, Mr. Bukenya Lawrence who has a Bachelor’s Degree in Procurement and Supply Chain Management from Kyambogo University.

He has so far worked with reach out Mbuya HIV Initiative for 2 years as an assistant procurement officer.

6.9 Recruitment Strategy

This will begin as soon as the company is incorporated and the vacancies will be advertised through radios, press and televisions.

Applications will begin in the period of two weeks.

Selection will be based on skills and competencies.

A detailed process of recruitment and selection process is detailed in the company flow chart as below.

Training and Development

Most of the expected people in the management team have attended various workshops and other trainings relevant to their professions but where necessary, trainings will be carried out to improve on the performance of the staff in the areas of customer care, conferences, this will equip employees with necessary knowledge and skills to carry out their operations.

1. Operational workers that cover class of people for example substance mixers, those who process products, those who gather raw materials will be trained on how to do so to minimize costs and also enable them to produce good quality products.

Remuneration Scheme

The scheme will be based on the market conditions. The employees will be earning salaries monthly.

Below is the estimated remuneration schedule for the management team after two years.

1. Share holders are expected to benefit from Bukentad soap after ten years. The profits will be shared according to the shares each individual contributed.

The Managing Director as a member of the Board of Directors expanded the company to capture the market of East African countries and solicited production of other products like dog shampoo, hair shampoo, and cosmetics. This kind of development can as well be applied to Bukentab soap

Board of Directors

The board of Bukenya Lawrence  , Ms. Namanda Hilda (Production Manager), Ms. Namata Cathy (Operations Manager), Mr. Ntale Geofrey (Sales Manager), Ms. Ategeka Annet

CHAPTER SEVEN

 LEGAL RESPONSIBILITIES AND INSURANCE

7.0 Introduction

The company will be located in kireka along Kabaka road Kampala Uganda. This is for easy access in terms of transport. The labor is readily available due to high population within the area. Supply of water, materials or resources and electricity is also easy here.

7.1 Regulatory and Legal Issues

The company will be registered with the Registrar of Companies having a company name “Bukentab Soaps.”

The company will register and acquire operational permit and license and pay taxes according to the government policies.

The employees will be examined medically and then there will be approval from the National Environmental Management Authority (NEMA) and Trade Ministry.

7.2 Land and Equipments

Land as a resource will be acquired by the organization in the second years that will be in 2019, however the equipments like drums, jerry can , mingling stick is readily available.

7.3 Employees

The employees will work from Monday to Friday.

Work at the company will begin from 8:00 am to 5:00pm this will enable the company get maximum performance from employees.

The employees will also be paid at the end of the month a salary that will be commensurate to their performance; however casual employees will be paid 5,000 shillings daily.

Remuneration Scheme

The scheme will be based on the market conditions. The employees will be earning salaries monthly.

Below is the estimated remuneration schedule for the management team after two years.

All the employees at the managerial level will get medical insurance.

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CHAPTER EIGHT

 COSTING

8.0 Introduction

Bukentab soap is proposed to be a partnership business with two share holders and will be a private company dealing in Soap Products Mainly,liquid soap,handwash, Shower Gel and  Jezz for washing toilets and pit latrines.

8.1 Background

Bukentab soap will deal in the following products;

• LIQUID SOAP
• SHOWER GEL
• HAND WASH
• JEZZ FOR PIT LATRINES

LABOUR COST

TOTAL COST

8.2 Company Location

The company will be located in KIREKA ALONG KABAKA ROAD Kampala. It will be located that way because of the following factors;

• There is enough security in the area (existence of Police Station).
• There is enough space for future expansion of the business.
• Easy transport that is to say vehicles and roads are readily available in the area. This will allow speed delivery of products to our clients.
• Steady supply of hydro electricity and solar power to enable the operations of the company.

8.3 Company Ownership

Bukentab Soap will have two share holders who will form the Board of Directors. The names, percentages and contributions of the shareholders are given in the table below.

It is anticipated that Bukentab Soap will grow rapidly and after it will be registered as a public liability company in 20 years to come in operation, other individuals will be given a chance to ownership of the company.

8.4 Company Objectives

Bukentab Soap in a bid to provide quality products to people has set objectives given below;

• To be manufacturers, agents, representatives, importers, exporters, wholesalers, retailers of all types of liquid soap, Hand washing, shower gel and jezz for washing toilest and pit latrines.
• To provide affordable and quality soap products to people.
• To establish and promote business as food specialists, distributors, set up handling facilities and all activities possible to foster the welfare industry.
• To carry out research so as to come up with new inventions on soap manufacture.
• To train and teach people on how to manufacture.

8.5 Legal Status

Bukentab Soap will be a private . company. The company’s two shareholders will contribute share capital equivalent to 20,000,000. The company will thereafter be registered with registrar of companies and the rest of the company costs will be meant with a loan from the Bank.

8.6 Investment Capital

The company’s investment will be got from share capital and a loan. The company’s two shareholders will contribute Shs 20,000,000 out of the total financing needed.

The company will start on loan repayment at the end of first year of operation in installments of 4,802,458 per year. Therefore the company expects to be through with the loan repayment in the first five years in operation. Therefore, serious profits are expected in the seventh year of operation.

8.7 Primary Products

The primary products of Bukentab Soap will be;

• Liquid soap
• Shower gel
• Hand wash
• Jezz for washing toilets and pit latrines

8.8 Land and Equipment

The company will be set up on the rented apartment but later the company will be able to build its own house after acquiring a plot of land.

The machinery for making soap will also be acquired soon.

CHAPTER NINE

FINANCIAL PLAN

9.0 Introduction

Bukentab Soap will have the following financial information statements to compare forecasts and evaluate its earnings.

9.1 Capital Investment and Financing

Bukentab Soap Capital will be initiated with shs 29,650,000/= of which 20,000,000/= will be the capital contribution of share holders and 9,650,000 will be a loan got from Centenary bank with charge interest of 20%.

Loan repayment will be made after 1 year in operation of the business and then continuous payments will be made annually in the period of 5 years.

The company will in 25 years of operation register as a public liability company so as to raise its profitability.

9.2 ESTIMATED SALES AND COST PLAN

IN (000) of Uganda shillings

ESTIMATED CASH FLOW FOR THE FIRST SIX MONTHS

ESTIMATED CASH FLOW STATEMENTS FOR THE FIRST THREE YEARS

9.4 Cash Flow Analysis

The analysis is based on the following assumptions;

The whole investment will be in cash.

All assets of the company will be in place at the beginning of the first year.

The revenue will be expected in the ¾ of the year.

No credit purchase will be made, therefore should be made in cash.

In the first 3 years, there will be no credit sales.

8% cash (liquid assets) will be kept on the company bank account in the Centenary Bank.

Loan repayment will be met every end of the trading year.

ESTIMATED CASH FLOW STATEMENT FOR THE FIRST THREE YEARS

ESTIMATED LOAN REPAYMENT SCHEDULE FOR BUKENTAB SOAP

BUKENTAB SOAP DEPRECIATION SCHEDULE

CHAPTER TEN

REQUIRED START UP-CAPITAL

10.0 start up capita

Bukentab Soap Capital will be initiated with shs 29,650,000/= of which 20,000,000/= will be the capital contribution of share holders and 9,650,000 will be a loan got from Centenary bank with charge interest of 20%.

Loan repayment will be made after 1 year in operation of the business and then continuous payments will be made annually in the period of 5 years.

The company will in 25 years of operation register as a public liability company so as to raise its profitability.

Contribution will be as follows

Mr Bukenya Lawarence and Ms. Ategeka Annet will provide 20,000,000 while the rest of the money will be got from the centenary Bank loan.

CHAPTER ELEVEN

SOURCES OF START-UP CAPITAL

11.0 Introductions

The organization needs startup capital of around 29,650,000.

The director will be able to get this capital from their personal saving, where the directors will contribute 20,000,000.

The majority share holder will be Bukenya Lawrence and the minority share holder will be Ategeka Annet.

Mr. Bukenya Lawrence will contribute 15,000,000 shillings while,

Ms. Ategeka Annet will contribute 5,000,000. The rest of the money will be got from centenary bank.

Centenary bank loan will be equal to 9,650,000.

Both Ms. Ategeka Annet and Bukenya Lawrence will get their capital from relatives’ friends and their saving.

APPENDIX A

CURRICULUM VITAE FOR CHAIRMAN BOARD OF GOVERNORS

PERSONAL DATA

SURNAME:                                                                           BUKENYA LAWRENCE

GENDER:                                                                              Male

MARITAL STATUS:                                                             Single

NATIONALITY:                                                                   Ugandan

CONTACT ADDRESS:                                                        C/o Uganda Kyambogo University

P.O Box 1

Kampala

Tel: 0703-115045

Email: bukentabsoap@gmail.com

CAREER OBJECTIVE

To build a strong self esteem and aim higher for the development of my country.

EDUCATION BACKGROUND

Year                                                                                        School/Academic Background

2012-Up to date                                                                      Kyambog University

2010-2011                                                                               St. Kizito S.S

2005-2009                                                                               AMKA S.S

2001-2004                                                                               AMKA P/S

WORKING EXPERIENCE

URA as a short term employee 2014-2016

UBOS as a census enumerator 2014

Crane Bank as a sales person 2013

Reach out mbuya HIV initiative as a registry volunteer 2012

ASSOCIATION

Member of kyupsa Kyambogo University

SKILLS AND ABILITIES

Introduction to Spread Sheets

Excel and Micro soft word

Microsoft access

Microsoft power point

Public speaking

LANGUAGE SPOKEN

English and Luganda.

REFEREES

Mr. Lutaalo Godwin  

Lecturer Kyambogo University

P.O Box 1

Kampala

Tel: 0701113697

Mrs. Sarah Karatunga Nabukenya

Supervisor Motor vehicle Registry URA

P.O Box 7279

Kampala

Tel: 0774-599498

DECLARATION 

I Bukenya Lawrence do declare that the information given is true.

————————————————————————–

APPENDIX B

LOAN APPLICATION FORM

C/o Kyambogo University

P.O Box 1,

Kampala

Tel: 0703-115045

Email: bukentabsoaps@gmail.com

The Manager,

Centenary Bank,

KAMPALA.

Dear Sir/Madam,

Re: Application for a Loan

The manager of Bukentab Soap is seeking for financial assistance of UGX 9,650,000 so as to satisfy the budget requirements in order to establish the company premises. We shall use this money for a period of five years.

We shall be grateful if our request is put into your consideration.111

Thank You,

Yours Faithfully,

…………………………

Ms. Ategeka Annet

Managing Director, Bukentab Soap