MAYEGO Hardware is a newly set up business that deals with the supply of general hard ware materials including building items, tools, and equipment to different parts of the country on both retail and wholesale scale. It’s located in Kampala District. The physical address of the business is;

MAYEGO HARDWARE,

P.O.BOX 29255, Kampala District

Email: info@MAYEGOhardware.com.ug

Website: www.MAYEGOhardware.com.ug

Tel. 0701-044149 / 0782-524260

I am the owner of the business by the name of MAYEGO JAMES.

MAYEGO HARDWARE deals in the following items materials, equipment, and tools;

MATERIALS;Cement,Lime,Ironbars,Ironsheets,woodglue,Nails,Wiremesh,D.PC,Paints,Vanish,Tiles.

EQUIPMENTS; Wheelbarrow, Hosepipe, Flicker, Spade, Hoe.

TOOLS; hammers, trowel, hacksaw, plum bob, spirit level, brushes, pickaxe

To start up, the business needs an initial capital of 40,000,000 Uganda shillings with part 0f owner’s equity of 20,000,000 million and a loan of 20,000,000 from Stanbic bank. The hardware is expected to pay back in period of 2years. In the long run after the period of 2 years the enterprise looks forward to capturing an 80% market share and thus be the leading hardware in building materials, tools and equipment supply.

The business has started with one branch but as it grows, it will enlarge its production and open other different branches countrywide to meet the increasing demand for building materials, tools, and equipment.

Factors for the success of the hardware business in the industry are aggressive salespeople, maintenance of adequate stock levels and continuity of supply, and the overall cost. In measuring whether the company can meet these key success factors the hardware is seen to have the ability to meet the legal and quality requirements expected, has good management and technical expertise. The hardware will meet its targets or objectives by pursuing an overall low cost strategy coupled with maintaining the reliability of building materials supplied. By employing experienced and able-bodied men especially the casual laborers’, the hardware will minimize wastage and losses that would occur if the casual workers were inexperienced.

The hardware will also ensure good leadership and motivation of its marketing officers through proper motivation and incentives. The working conditions and work environment will also be especially catered for. There will be strict budgetary control and the preparation of sales plans. The enterprise will adhere to its credit policy and the policy on working capital management. At the end of every financial year the enterprise will be making financial statements to unfold the financial status of the business .As far as regulations are concerned the hardware will subscribe to the Uganda National Bureau of Standards[UNBS]and observe all the policy and protocol frameworks.

Sales implementation plan will be geared towards ensuring that the strategies are carried out to meet all the company’s objectives. Although implementation is not likely to be simple, it will nevertheless be people centered and based on maintaining our distinctive competence.

CHAPTER TWO

2.0 Vision and Mission Statement

2.1 Vision

MAYEGO Hardware’s vision is to become Number one supplier of hard ware items on daily basis throughout the year with the highest customer satisfaction in a customer friendly shopping environment.

2.2 Mission Statement

The mission of MAYEGO hardware is to supply quality hard ware materials, tools, equipment at low cost and providing good customer relations. The mission is to be pursued through strict observance of our strategies, which include provision of after sales service to customers, and continuous sales market research, relationship building with customers among others.

2.3 Company Philosophy

The mission and vision of the business will be achieved by supplying outstanding high quality tools, materials and equipment with the emplacement of skilled labour force and use of technological advancement in equipment that will make the customer need to be met efficiently and effectively. The guiding philosophy of our enterprise is thus stated as; customer satisfaction in a friendly shopping environment is our priority.

CHAPTER THREE

BUSINESS IDEA

3.1 Products that will be offered by MAYEGO HARD WARE

MAYEGO HARDWARE deals in the following items materials, equipment, and tools;

MATERIALS;Cement,Lime,Ironbars,Ironsheets,woodglue,Nails,Wiremesh,D.PC,Paints,Vanish,Tiles.

EQUIPMENTS; Wheelbarrow, Hosepipe, Flicker, Spade, Hoe.

TOOLS; hammers, trowel, hacksaw, plum bob, spirit level, brushes, pickaxe

Mayego Hard ware will located in Kampala, Namugongo Town.

MAYEGO hardware will make over 40% of the total industry sales from selling the hardware equipment over the three years of service.

3.2 CUSTOMERS

This will include;

Individuals
Schools
Government
Non Government Organizations
Small Scale Retailers

3.3 Ways of selling the product

Display In A Hardware Shop
Distribute to small scale retailers

3.4 Need that the products will fulfill

The company will sell reliable construction materials like;

Cement,Lime,Ironbars,Ironsheets,woodglue,Nails,Wiremesh,D.PC,Paints,Vanish,Tiles.

Company will also sell strong and quality Equipments like; Wheelbarrow, Hosepipe, Flicker, Spade, Hoe.

The company will also sell affordable Tools like; hammers, trowel, hacksaw, plum bob, spirit level, brushes, pickaxe

3.5 SWOT Analysis

The hardware will carry out an internal appraisal and evaluation to understand its strengths and weaknesses. It will also scan the external environment to know the opportunities and threats in the market, which will help it to lay appropriate strategies to achieve competitive advantage over its rivals in the market.

Strengths

These are factors within the control of the hardware and they are the competences or the positive factors that will enable the business to remain competitive by gaining higher market share competitive advantage. These include the following;

Loyalty of the customers to the business
Extensive advertisement
High capital investment
Skilled and experienced labor force
Strategic market positioning products
Outstanding quality products.

Weaknesses

These are internal factors inherent within the hardware and if not dealt with in time they can affect the enterprise performance negatively. MAYEGO Hardware has some weaknesses and these include the following;

Limited skilled personal
Limited transportation
Limited stock capacity by space and equipment.
Charging slightly higher prices to meet the production costs.
Poor handling equipment leading to high handling costs

Opportunities

These are factors outside the business’ operation area, over which the business can capitalize on to get a competitive advantage over its competitors. These include the following;

Favorable government policy that is encouraging investors like tax holidays
The hardware will take an advantage of increasing number of customers in the construction industry.
Technological developments that are taking place such as use standardized equipment.
The booming business of housing in Kampala District.

Threats

These factors can pose a threat to hardware’s operation. Our business is likely to meet the following threats.

Natural calamities like landslides
Road accidents
Fire out breaks
Robbery
Government may relocate the area of operation to other activities and force us to close to go to other places losing the already loyal customers.

Method of distribution

Our business is using a single channel method of distribution, where customers purchase directly from the hard ware.

CHAPTER FOUR

MARKETING PLAN

4.0 Market Plan

This chapter looks at the customer profile, the level of competition, market segmentation, market positioning, market analysis, product strategy promotion, and pricing strategy.

4.1 Market Analysis

Most people whether individually or in organizations or government entities carry out construction all over the country. This therefore calls for increased demand for building materials in the regions although there are other anonymous suppliers of the same in the market. However, MAYEGO Hardware will give itself an identity with the customers by being strategically located near housing estates of Kampala District and offering delivery and after sale services, advertise extensively and build a clear image to out compete the other suppliers.

4.2 Competition

Competition in the hardware business is increasing year after year. Although there are many dealers in hardware materials supply in the country, their capacities of operation are low due to meager resources employed in this business and not identifying themselves with the customers. However, our huge amount of capital and good quality products backed with extensive advertisement and good relationship with the customers in the business enables us to operate on relatively large scale, and expect to beat the other rivals in the market, thus capture a large market share hence reduced competition.

4.3 Target Market

The target customers include; individuals, companies, and institutions undergoing construction in and around the area will be buying the firms goods

4.4 Market Positioning

The goods provided are in a competitive position this is through basing mainly on making right information available to the target customers regarding to types and quality of goods and services provided in the market by the firm. The firm will give itself a distinction from other suppliers by offering outstanding products to the customers. This will attract many other customers due to the adverts made in newspapers and televisions.

4.5 Pricing

The prices for our goods vary according to ranges offered compared to other rivals. Our strategy however is not to reduce the prices compared to our rivals but will instead supply high quality outstanding goods followed by after sale services. Because customers strive to achieve best quality regardless of the price. In addition, discounts will be given to those who will buy in bulk and to the customers who keep referring other customers to us.

Below is the price structure for items in MAYEGO hardware

ITEMS	AMOUNT
Cement	25,000
Tiles	150,000
Lime	20000
Iron bars	232,500
Iron sheets	23,000
Nails	7000
Glasses	20,000
Paints	40,000
Wheel barrow	100,000
Spade	8,000
Hoes	12,000
Hammer	8,000
Trowel	2000
Total	647500

4.6 Promotion

The hardware will advertise its goods extensively using brochures, radio, and television advert. Customer references and person-to-person contact will be geared towards reaching the potential customers using the marketing officers employed by the enterprise. Also self-advertising of the products due to good quality.

4.7 Packaging

The business enterprise will make sure that the goods are well loaded on to trucks with proper handling equipment and packages for items requiring package to the destination to avoid losses and using modern equipment like fork lifters to avoid double handling and its associated costs.

4.8 Market Research

Research will always be done to unveil what is taking place in market, to find out what strategies regarding prices, promotion, and products the rivals are using. Research will also be carried out on customer needs; this will help the hardware to make adjustments where necessary so that it remains competitive and in a collaborative relationship with the customers.

CHAPTER FIVE

FORM OF BUSINESS

5.1 Name of the business

The business is called MAYEGO Hardware, and it is a sole proprietorship business

ADVANTAGES OF SOLE PRIOPRIETORSHIP

Its cheap to start
It requires little capital
Decision making is easy
Risks are low
Low cost to start

DEMERITS OF SOLE PROPRIETORSHIP

It depends on the life of proprietor ship
Incompetence in skills
Little profits
Limited capital
Growth level is small

5.2 Legal Status

The hardware is a private limited, profit making enterprise. It is registered with the registrar of companies under the companies Act. The company’s legal status as a registered entity will empower it to sue or be sued in the courts of Laws. The Company will seek guidance from the UNBS and employ high caliber professionals to guide its operations in accordance with its mission and visions

5.3 Location

The firm is a hardware selling business, having one main operational site and office located in Kampala District However as the firm grows it will open other branches in different areas country wide especially in the strategic places with a good market share and other favorable conditions like road and weather like Entebbe, lira Gulu areas.

5.5 Product Description.

MAYEGO HARDWARE will deal in supply of general Hardware materials, tools, and equipment. These will be produced and supplied to different parts of the country. These will be in large quantity to give enough choices to customers so that there are no shortages at any time with a wider variety of materials, tool, and equipments.

Business Objectives

a] To provide standardized and quality equipment, tools and materials

b] To provide employment opportunities to communities around the hardware

c] Improve on the general people’s standards of living.

d] To provide different types and variety of hard ware materials, tools, equipment

e] To introduce new technology in terms of material, tools and equipment handling

Strategy

Operate one big site in Kampala District, Kampala and later enlarge its operations into different branches in different regions.
Supplying building and construction materials in bulky.
Maintain adequate stock throughout the year
To seek information in the markets
Enhance our customer’s desires

CHAPTER SIX

STAFF

6.1 KEY MANAGEMENT PERSONEL

MAYEGO hardware is to have a strong management team, which will assist it in the smooth running of the business activities. The management will comprise of the Managing Director, 1 Marketing officer, cashier, and casual workers. The Managing Director, Mr. Mutebi Henry holds a Masters Degree in Procurement and Logistics from Kyambogo University. He is expected to contribute to the hardware’s goals and objectives using the skills and knowledge possessed from this institution of higher learning. Ms.Kansiime Peace the cashier has a bachelor’s degree in accountant and statistics from Makerere University. There are two [2] marketing officers and each has a Degree in marketing from Kyambogo University. Their duties are to carry out research on marketing to find new customers for the firm’s products.

BUSINESS ORGANIZATION CHART

PRESIDENT/ BUSINESS OWNER

CASHIER

CASUAL WORKERS

MARKETING OFFICER

MANAGING DIRECTOR

6.2 Recruitment Plan

The business will ensure that all the human resource of the business possesses the skills and competences required for proper execution of their responsibilities and duties through written and oral interviews. To get the needed human resources it will use formal adverts such as newspapers, internet, radios, and televisions

6.3 Training Plan

The enterprise spearheaded by the managing director who will identify casual workers who are still lacking the skills so that they can be trained on the job. New employees will also be given orientation on the job training in order to make them clearly understand the structure and policies of the firm and its goals and objectives.

6.4 Remuneration

MAYEGO hardware will have an attractive pay structure for its employees. The salaries and wages will differ according to the level of responsibilities authority, from the managing director to the casual laborers. The management will annually be revising and increasing the payroll structure of the enterprise’s performance. This will help it to attract and retain competent workforce consequently leading to its success.

MAYEGO HARDWARE REMUNERATION SCHEDULE FOR THREE MONTH FOR THE YEAR 2018

Position	No	Years with annual salaries.
Position	No	2018	2019	20120
Managing director	1	580,000	600,000		800,000
Cashier	1	500,000	600,000		700,000
Marketing officers	2	450,000	550,000		640,000
Casual workers	5	250,000	350,000		480,000
Totals	9	1,780,000	2,1 00,000		2,620,000

Rewards

Apart from monthly salaries, all employees of MAYEGO hardware will be receiving rewards in various forms at different intervals like weekly or monthly. The rewards will include; promotion, praises, holidays, tours and housing facilities. This will act as a motivation tool. In addition, the Technical Expertise the firm will not necessarily recruit people who have gone to schools. This is because most of the skills needed can easily be acquired regardless of the levels of education especially the casual workers

CHAPTER SEVEN

Legal Responsibilities

7.1 Structure

For the effective implementation of the proposed hardware business, the organization structure must be framed to fit the key success factors. Our firm aims at rendering quality services to our customers.

7.2 legal

The hard ware will pay the license that is required for the start of business.

The company will pay an operational license of 400,000 annually to ensure that the business start.

7.3 Insurance

The company will also pay for the insurance of the business this will involve both insurance against fire, theft and accidents

7.4 Employees

Many people have engaged in hard ware supply however, we are employing highly skilled staff in entrepreneurship. We are aiming at quality product supply yet offering timely service.

Management by Objective

MAYEGO HARDWARE has well set out objectives for both short and long term/medium that it is to meet all the tasks in the enterprise, it will be insisted by the manager, shall be carried out to meet these objectives.

Corporate Culture

Our business has its own unique way of operating, making decisions, and approaching issues. We shall introduce a culture that ensures everybody knows our objectives, goals, or targets.

Commitment Building

To be successful in the implementation of the strategy, the enterprise manager should build commitment from all the organization. This is right from manager straight up to the promoters themselves. Commitment will be built using the rewards and punishments already introduced but measured against the performance criteria, which are in our case the objectives.

Evaluation and Control

By consultation with all company workers, the management will set performance targets to be met .But evaluation and control will again be geared towards meeting company goals. The system of control will be accurate, timely, objective, and acceptable to all organizational members. The enterprise has a clear vision and well set up objectives. The financing is well thought out and the strategies are formulated for the success. The enterprise also has tremendous national economic benefit as it encourages job creation rather than job seeking.

In conclusion the maximum initial amount of money needed is Ush40,000,000 of which 20,000,000 will be the owner’s equity and the balance of 20,000,000 will be a loan obtained through bank loan from Stanbic bank, this money is required to be got before the business commences to enable us organize and plan as early as possible.

CHAPTER EIGHT

COSTING

The operating and production plan of the business shall be used effectively and efficiently, use of the business resources to provide the best quality goods and services. To achieve this, the 3ps of product, promotion, place, and price shall mainly be focused on to achieve the goals and objectives of the hardware

Geographical Location.

As earlier noted in the previous chapters, MAYEGO Hardware will be operating from Kampala District The capacity of the business shall consider the external and internal balance criteria. The plant will be enough to accommodate all the equipment and tools required for provision of the quality goods and services.

8.2 Quality Control

With the employment of highly self-motivated and hardworking staff, quality goods and service will be kept attractive

Book keeping of all the activities will be done
Research will be carried out to establish the customer needs and cater for them.
Procurement of new, modern, and current equipment will be put under consideration to meet the changing demands of our customers to beat the goods and services of the competitors.
Quality control measures at all levels will be emphasized

PRODUCTION COST ESTIMATES FOR THE FIRST YEAR [2018] OF OPERATION

INDIRECT COSTS	COST
Computers	3,000,000
Water	900,000
Motor vehicle	8,000,000
House Rent	700,000
TOTAL	12,600,000

LABOUR COST

Position	No	Years with annual salaries.
Position	No	2018	2019	20120
Managing director	1	580,000	600,000		800,000
Cashier	1	500,000	600,000		700,000
Marketing officers	2	450,000	550,000		640,000
Casual workers	5	250,000	350,000		480,000
Totals	9	1,780,000	2,1 00,000		2,620,000

PRODUCT COSTING FORM

INDIRECT COST CHARGE = 0.62 PER ITEM

NO	ITEM	QUANTITY	DIRECT MATERIAL COST PER ITEM	INDIRECT COST PERITEM (DIRECT MATERIAL COST *INDIRECT COST CHARGE	TOTAL COST PERITEM
1	Bow saw	1 pc	19,500	12090	31,590
2	Arc saw frame	1 pc	7,000	4340	11,340
3	Blades( Arc saw)	1 pc	18,000	11160	29,160
4	Spirit level	1 pc	14,000	8680	22,680
5	Water level	1pc	14,500	8990	23,490
6	Building Square	1 pc	4,500	2790	7,290
7	DPC Paper	1 Roll	9,000	5580	14,580
8	Polythene DPC	1 m	2,500	1550	4,050
9	Iron bars: Y16,	1 pc	47,000	29140	76,140
10	Y12	1 pc	27,000	16740	43,740
11	Binding Wire	1 Roll	115,000	71300	186,300
12	Rings-8mm,7,mm,6mm,4mm size	1 pc	14,500	8990	23,490
13	Lime	1pc	28,000	17360	45,360
14	Expanded metal	1 bundle	25,500	15810	41,310
15	Cement – Hima/Tororo	1 bag	30,000	18600	48,600
	TOTAL				609,120

CHAPTER NINE

Financial Plan

MAYEGO Hardware will take up strategies designed to ensure easy access to capital and efficient management of capital resources of the business. The policies adopted will be tailored to achieve effective financial control, forecasting and financial analysis for the entire decision-making. This will be achieved through monitoring, reporting, and taking corrective measures by making financial statements at every end of financial year, which will help generate information to evaluate and assess the financial performance of the firm.

9.1 Investment and Planning

The hardware will need an initial capital of 40 million shillings. 50% will be owners’ equity, while another 50 % will be a loan from the Stanbic Bank, to be paid in 2 years period.

Capital = owner equity (x)

= borrowed funds (y)

Total capital = x + y

= 20,000,000 + 20,000,000

= 40,000,000

Payment of the borrowed funds (loan) by assumption will be paid back within two years beginning at the end of the first year when the business starts earning profits.

9.2 SALES COST PLAN

Below is a table showing the sales and the cost plan

details	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC
	Amount in Uganda million shillings
sales	10	10	11	11	10	13	12	12	13	12	10	12
Direct material costs	7	7	7	7	7	7	8	7	6	5	7	5
Indirect costs	2	2	2	1.5	1.5	1.5	1.5	1.5	1.5	1.5	1.5	2.5
Net profit	1	1	2	2.5	2.5	5.5	3.5	4.5	6.5	6.5	2.5	4.5

9.3 CASH FLOW PLAN

	Year 1	Year 2	Year 3	Year 4
Balance b/f		50,518,000	112,038,000	251,565,000
Cash inflows
Cash inform of sales	93,666,000	114,667,000	166,670,000	208,005,000
Total cash inflows	93,666,000	165,186,000	278,708,000	459,570,000
Cash out flows
Direct and indirect costs	27,142,000	27,142,000	27,142,000	27,142,000
Loan repayments	16,005,000	16,005,000
Fixed assets additions		10,000,000		10,000,000
Total cash outflows	43,148,000	53,148,000	27,142,000	37,142,000
Net cash balance	50,518,000	112,038,000	251,565,000	422,428,000

Hardware Budgeted Balance sheet for the year period.

	Year 1	Year 2	Year 3	Year 4
Fixed assets
Land and building	10,666,000	10,933,000	11,333,000	12,000,000
Furniture and building	6,133,000	6,533,000	6,933,000	6,933,000
Motor vehicle	9,333,000	9,000,000	8,666,000	8,000,000
Total fixed asset	26,133,000	26,466,000	26,933,000	26,933,600
Current assets
Debtors	14,029,000	810,000	4,336,000	7,603,000
Cash and bank	13,333,000	16,000,000	18,666,000	24,000,000
Total current assets	27,363,000	24,101,000	23,003,000	31,603,000
Current liabilities
Total assets	53,496,400	50,568,000	49,936,000	58,537,200
Share capital	40,000,000	50,000,000	57,000,000	64,000,000
Bank and loan	16,000,000	9,000,000
Total	56,000,000	63,000,000	57,000,000	76,000,000

ESTIMATED LOAN REPAYMENT SCHEDULE FOR BUKENTAB SOAP

Name of The Bank	Year	Total loan acquired	Total Interest Annually
Centenary Bank	1	20,000,000	9,953,280
	2		9,953,280
	3		9,953,280
	4		9,953,280
	5		9,953,280
Total		TOTAL LOAN PAID	49,766,400

ESTIMATED DEPRECIATION SCHEDULE

Assets	Percentage (%)	Value (000)	Depreciation (000)	2019 (000)	2020 (000)	2021 (000)
Land		10,000	10,000	10,000	10,000	10,000
Building	3	20,000	6,000	19,400	18,800	18,200
Equipment	5	4,000	2,000	3,800	3,600	34,000
Furniture & Fittings	10	20,000	2,000	18,000	16,000	14,000
Motor vehicle.	15	50,000	7,500	7,500	21,000	16,500

CHAPTER TEN

10.0 INTRODUCTION

The startup costs of Mayego Hardware, as detailed below will consist primarily of inventory, equipment and fixtures. There is an amount budgeted for lease hold improvements which is intended to make minor modifications to the proposed site to prepare it for opening.

Required startup capital

Particulars	Estimated costs
Start-up expenses
Renovations	4,000,000
Lease fees/ legal fees	2,700,000
Salaries for fixture set-up	2,000,000
Total expenses	8,700,000
Start-up assets
Start-up inventory	13,000,000
Computer	2,000,000
Delivery van	8,000,000
Furniture	27,00,000
Total assets	26,000,000
Total start-up requirements	35,000,000

Business Ratios

Standard business ratios are included in the following table. The ratios show a plan for balanced, healthy growth. MAYEGO Hardware’s position within the industry is typical for a heavy growth startup company. Comparing the ratios in the third year with the industry, this pro-forma plan appears to be within an acceptable difference margin.

MAYEGO Hardware’s return on net worth and net worth number differ from the Industry Profile due to the lack of overhead when compared to a typical hard store. The hardware business model is lean thus allowing for increase return ratio and providing a lower Net Worth.

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Sales Growth	0.00%	320.92%	156.42%	7.60%

Percent of Total Assets
Inventory	9.60%	15.59%	12.36%	3.60%
Other Current Assets	0.00%	0.00%	0.00%	35.60%
Total Current Assets	17.69%	26.19%	32.25%	43.70%
Long-term Assets	82.31%	73.81%	67.75%	56.30%
Total Assets	100.00%	100.00%	100.00%	100.00%

Current Liabilities	15.62%	12.92%	9.37%	32.70%
Long-term Liabilities	78.20%	59.37%	44.94%	28.50%
Total Liabilities	93.82%	72.29%	54.31%	61.20%
Net Worth	6.18%	27.71%	45.69%	38.80%

Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	39.56%	39.82%	45.23%	60.50%
Selling, General & Administrative Expenses	44.74%	30.63%	29.15%	39.80%
Advertising Expenses	3.23%	1.53%	1.20%	3.20%
Profit Before Interest and Taxes	-2.28%	10.80%	17.45%	0.70%

Main Ratios
Current	1.13	2.03	3.44	0.98
Quick	0.52	0.82	2.12	0.65
Total Debt to Total Assets	93.82%	72.29%	54.31%	61.20%
Pre-tax Return on Net Worth	-127.60%	90.56%	80.25%	1.70%
Pre-tax Return on Assets	-7.88%	25.10%	36.67%	4.30%

Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	-5.17%	9.24%	16.17%	n.a
Return on Equity	-127.60%	90.56%	80.25%	n.a

Activity Ratios
Inventory Turnover	7.02	8.62	7.70	n.a
Accounts Payable Turnover	6.49	12.17	12.17	n.a
Payment Days	27	22	21	n.a
Total Asset Turnover	1.52	2.72	2.27	n.a

Debt Ratios
Debt to Net Worth	15.19	2.61	1.19	n.a
Current Liab. to Liab.	0.17	0.18	0.17	n.a

Liquidity Ratios
Net Working Capital	Ugx 200M	Ugx350m	Ugx600m	n.a
Interest Coverage	-0.79	6.92	13.63	n.a

Additional Ratios
Assets to Sales	0.66	0.37	0.44	n.a
Current Debt/Total Assets	16%	13%	9%	n.a
Acid Test	0.52	0.82	2.12	n.a
Sales/Net Worth	24.66	9.80	4.96	n.a
Dividend Payout	0.00	0.00	0.00	n.a

CHAPTER ELEVEN

SOURCES OF START-UP CAPITAL

11.0 Introductions

MAYEGO HARDWARE deals in the following items materials, equipment, and tools;

MATERIALS;Cement,Lime,Ironbars,Ironsheets,woodglue,Nails,Wiremesh,D.PC,Paints,Vanish,Tiles.

EQUIPMENTS; Wheelbarrow, Hosepipe, Flicker, Spade, Hoe.

TOOLS; hammers, trowel, hacksaw, plum bob, spirit level, brushes, pickaxe

Mayego Hard ware will located in Kampala, Namugongo Town.

Mayego hardware will make over 40% of the total industry sales from selling the hardware equipment over the three years of service.

The industry’s anticipated growth in the long run like after the period of six years the firm looks forward to capturing a 90%of the market share and thus being the leading supplier of material, tools and equipment in the industry in the country.

APPENDICES

LOAN APPLICATION

MAYEGO HARDWARE

POBOX 29255, KAMPALA DISTRICT

04^th OCT 2017

TO THE LOANS OFFICER

STANBIC BANK KAMPALA BRANCH

P.0.BOX. 376 KAMPALA.

Dear Sir/Madam.

RE: APPLICATION FOR A LOAN

Following the adverts over the media that your bank extends loans to people and companies, I also wish to extend my desire to acquire a loan of 20,000,000/= in order to run the business as part of startup capital.

Though the hardware is a sole enterprise, I will be responsible to pay within the due time.

I will be grateful if my request is considered.

Yours faithfully

……………………..

MAYENGO JAMES

The owner of company

APPENDIX II

BANK LOAN LETTER

LOANS OFFICER

STANBIC BANK KAMPALA BRANCH

P.O BOX 232

10^TH OCT 2017

TO: MAYEGO HARDWARE

P.O BOX 29255 KAMPALA DISTRICT

Dear, Mr. MAYENGO JAMES

RE; STANBIC BANK LOAN LETTER OF OFFER AGREEMENT

STANBIC BANK is proud to make available to you the facility outlined above on terms and conditions as specified below.

Borrower : MAYEGO HARDWARE
Bank : STANBIC KAMPALA BRANCH
Facility type : INVESTMENT PLAN
Amount : 20,000,000=
Purpose : Hardware Business
Fee : Acceptable shall be payable upon establishment of the business
Interest : Interest rate is 10% per annum.

CURRICULUM VITAE

BIO-DATA

SURNAME: MAYENGO

OTHER NAME: JAMES

AGE: 22YRS

NATIONALITY: UGANDAN

MARITAL STATUS: SINGLE

SEX: FEMALE

CONTACT ADDRESS: +256701044149

E-mail: MAYEGOJAMES15@yahoo.com

EDUCATIONAL BACK GROUND

PERIOD	INSTITUTE	AWARD
2015 to date	Kyambogo University	Bachelor’s degree of procurement and logistics management
2013 to 2014	MAKERER COLLEGGE SCHOOL	Uganda Advanced certificate of Education
2009 to 2012	KYAMBOGO COLLEGGE SCHOOL	Uganda Certificate of Education

OTHER INFORMATION:

Computer Literate with working knowledge in word, excel and power point

Good Interpersonal Skills

Experience in Working with Large Groups of People

Very hardworking

LANGUAGES

LANGUGE SPOKEN WRITTEN

English Very Good Very good

Runyankole very Good fair

Luganda Good fair

INTERESTS:

Interacting with people

Reading newspapers

Reading novels

Travelling

REFEREES

Madam TAKORAKUBI ANNET

BUSINESS WOMAN

07020441550

TIBERONDWA HENRY

ASSISTANT ENGINEER UGANDA PRISONS

0702515946

KYAMBOGO UNIVERSITY

FACULTY OF SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIPS

DEPARTMENT OF PROCUREMENT AND MARKETING

COURSEUNIT: ENTREPRENEURSHIP PRACTICE

LECTURER : NAKATETE PHIONA

SEMESTER : SEMESTER 1 YEAR 3

NAME : MAYENGO JAMES

REG.NO. : 15/U/10419 /BPLM/PLE/PE

TASK : BUSINESS PLAN

SIGNATURE ………………………………….