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Bachelor of Arts
In
Business Studies
Small Business Development (SMD)
Business Ambitions Training CompanyWe make it Happen at your convenience
Business Plan
Prepared by:
1. Sarah Alley2. Hussein M Agil3. Loveness Mgonja
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Table of Contents
TITTLE PAGE .............................................................................................. Error! Bookmark not defined.
LIST OF ACRONYMS ............................................................................................................................... 4
1. EXECUTIVE SUMMARY .................................................................................................................. 5
1.1 Competitive Advantage................................................................................................................... 5
1.2 Target Market ................................................................................................................................... 5
1.3 Management Teams ....................................................................................................................... 5
1.4 Financial Projections ....................................................................................................................... 5
2.1 The opportunity ................................................................................................................................ 6
2.1.1 Problem to solve or need to be filled ......................................................................................... 6
2.2 The Description of the Business.................................................................................................... 6
2.2.1 How the proposed business solves the problem ..................................................................... 62.2.2 Brief company history or background........................................................................................ 7
2.2.3 Companys Mission and vision................................................................................................... 7
2.2.4 Companys Objectives................................................................................................................. 7
2.3 Company Competitive Advantages .............................................................................................. 8
2.3.1 Description of the business model............................................................................................. 8
2.3.2 How the business will create a sustainable competitive advantage..................................... 9
2.4 Current status of Company and requirements ............................................................................ 9
2.4.1 Description of where the business stands today ..................................................................... 9
2.4.2 Description of what the Company needs to move forward .................................................... 9
3. MANAGEMENT TEAM ................................................................................................................... 10
3.1 Management Team ....................................................................................................................... 10
3.1.1 Their Experience, Abilities and Technical Experience ......................................................... 10
3.2 Key professional Service Provider .............................................................................................. 11
3.2.1 Law, Accounting & Business consultancy .............................................................................. 11
4. COMPANY ORGANISATION STRUCTURE, INTELLECTUAL PROPERTY ANDOWNERSHIP ........................................................................................................................................ 11
4.1 Company organisation structure ................................................................................................. 11
4.1.1 Description of Organization Structure (see appendix A) ...................................................... 12
5. LEGAL STRUCTURE ..................................................................................................................... 13
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5.1.2 Legal form of organisation and ownership ............................................................................. 13
5.1.3 Intellectual Property ................................................................................................................... 14
6. INDUSTRY ANALYSIS ................................................................................................................... 14
6.1 Industry Description....................................................................................................................... 14
6.1.1 Industry trends ............................................................................................................................ 14
6.1.2 Industry size ................................................................................................................................ 14
6.1.3 Industry attractiveness............................................................................................................... 15
6.1.4 Profit potential ............................................................................................................................. 15
6.2. Target Market ................................................................................................................................ 15
6.2.1 Description of the target market............................................................................................... 15
6.3 Competitive position within target market .................................................................................. 15
6.3.1 Competitor analysis ................................................................................................................... 15
7. MARKETING PLAN......................................................................................................................... 16
7.1 Product Strategy ............................................................................................................................ 16
7.2 Concept Testing ............................................................................................................................. 16
7.3 Pricing Strategy.............................................................................................................................. 17
7.4 Channels of Distribution ............................................................................................................... 17
7.5 Promotion and advertising ........................................................................................................... 18
8. OPERATIONS PLAN ...................................................................................................................... 18
8.1 Method of Production or Service Delivery ................................................................................. 18
8.2 Business Partnership .................................................................................................................... 19
8.3 Quality Control ............................................................................................................................... 19
9. FINANCIAL PLAN............................................................................................................................ 19
9.1 PRO-FORMA INCOME STATEMENT: ...................................................................................... 21
9.2 PRO-FORMA CASH FLOW STATEMENT: .............................................................................. 22
9.3 PRO-FORMA BALANCE SHEET: .............................................................................................. 23
10. CRITICAL RISK FACTORS ......................................................................................................... 24
10.1 MANAGEMENT RISK................................................................................................................. 24
10.2 FINANCIAL RISK ........................................................................................................................ 24
10.3 MARKETING RISK ..................................................................................................................... 25
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10.4 OPERATING RISK...................................................................................................................... 25
10.5 INTELLECTUAL PROPERTY INFRIGMENT ......................................................................... 25
APPENDIX ............................................................................................................................................ 26
LIST OF ACRONYMS
1. BATC: Business Ambition training Company.
2. NGOs: Non- Government organizations.
3. EAC: East African Community.
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1. EXECUTIVE SUMMARY
Tanzania opened her door towards trade since 1995 and joined free market economy; this led
to growth in business, globally. However, this growth mean nothing if Tanzanians are not
prepared for the expected changes such as knowledge to integrate business ideas and industry
feasibility strategies.
Evidence shows that the number of foreign entrepreneurs in Tanzania has increased. This is an
alert to the local people. This situation made BATC to have awareness of the available
opportunity to prepare Tanzanians to be fit by planning, using tactics and strategies to face free
trade economic among East Africa states.
BATC comes with the best possible solution to reinforce development to the small
entrepreneurs who think business as a substitute for lacking education and not for their
knowledge in practice or passion for the business.
Through design of mobile training, BATC will make sure it reaches majority of small
entrepreneurs, to start with Dar es Salaam local markets including Temeke, Ilala and Kinondonidistrict. After a good success, BATC will move on to cities like Mwanza and later Arusha.
1.1 Competitive Advantage
This business idea is unique as mobile training will have capability to reach small entrepreneurs
with reasonable training fees in remote areas.
1.2 Target Market
BATC targets all small entrepreneurs who dont have enough knowledge in business planning
and strategies.
1.3 Management Teams
As BATC has experienced partners who have good knowledge in training, development
strategies with well technical ability and huge academic qualification, this will help to smooth
running of project operation, budgeting which will give BATC chance to succeed with its
business idea against and get even government support or any emergent investor in the sector.
1.4 Financial Projections
In order BATC to reach its target operations it needs Tshs 150 million to purchase 3 van and
other tools for operations.
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2. THE BUSINESS
2.1 The opportunity
2.1.1 Problem to solve or need to be filled
Tanzania is among the countries in the East African community. Tanzania faced many
economic challenges in the EAC; and this is due to that the Tanzanian people lack the
fundamental business skills.
Government did not took much initiatives in developing small entrepreneurs as the step to
prepare them to be the able to face foreign competition which will come from free trade or cross
border trade.
This is where the company took this deficit as an opportunity to bring development to small
scale level of business that are facing huge foreign competition because of insufficient
knowledge in planning, implementing and developing business ideas.
2.2 The Description of the Business
2.2.1 How the proposed business solves the problem
The small entrepreneurs in Tanzania lack business skills to compete with foreigners; this is the
problem to be solved. The business intends to support small entrepreneurs, who lack business
skills. The company plans to use Vans so as to reach out to the small entrepreneurs. The van
will contain all necessary equipments for training like projector, white board, and other
equipments.
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2.2.2 Brief company history or background
As students of masters in different business field, here is where the Company idea came.
Sarah Alley, Hussein Agil, and Loveness Mgonja, saw how business are conducted by small
entrepreneurs. Seeing how businesses are conducted by small entrepreneurs made the
partners to realize that, there is a need for small entrepreneurs to be trained in businessmethodology, and thats where the idea of starting to educate small entrepreneurs came up.
2.2.3 Companys Mission and vision
Mission
The mission covers helping clients develop business strategy, motivation and accountabilityrequired to succeed in their business and personal lives. The company sees each contract asan agreement not between a business and its customers, but between partners who wish to
create a close and mutually beneficial long-term relationship. This will help to provide greaterlong-term profits through referrals and repeat business. BATC must also be able to maintainfinancial balance, charging a high value for its services, and delivering an even higher value toits clients.
Vision
The company expects to change the way small scale and medium scale business people do
their business. The changes are expected in 5-10 years to come.
2.2.4 Companys Objectives
The Company want to bring a new look in small scale business by educating small
entrepreneur on how to handle their business from idea to operation, Help them to
develop their business.
To spread our service in other cities like Mwanza, Arusha, Dodoma, Morogoro, Mbeya
and even Zanzibar
To ensure our service will contribute up to 80% of business development for small
entrepreneurs in a period of 10 years.
The creation of a unique, upscale, innovative environment that will differentiate BATC
from other entrepreneurship training or professional development businesses.
Educating the small entrepreneurs on what business and strategic entrepreneurship
training has to offer.
The formation of a learning environment that will bring people with diverse interests and
backgrounds together in a common forum to overcome challenges, both professionally
and personally.
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Affordable access to the resources of business entrepreneurship training and other
development services.
The financial objectives for BATC over the next three years are to:
Achieve sales revenues of approximately 250,000,000Tsh by end of year one.
Achieve sales revenues of approximately 350,000,000Tsh by year three. Move into own premises by the end of the third year.
2.2.5 Keys to Success
Provide needed service professionally with confidence, reliability, trust and expertise
Developing visibility to generate new business leads
Leveraging from a single pool of expertise into multiple revenue generation
opportunities: small business entrepreneurship training, organized group training,
workshop facilitation and individual entrepreneurship training
Consistently developing productive and thought-provoking learning experiences to
maintain growth and success with each client
Our use of state-of-the-art technology in running the business
Easy access to services
Establishing a seasoned advisory team
2.3 Company Competitive Advantages
2.3.1 Description of the business model
Company will operate at low cost to help small scale entrepreneurs to afford attending thecourse as they are the main target. The most unique benefit that BATC offers to clients is theability to experience a new way of developing business. BATC provides development andsupport for a year or more.
The mobile class will be moving around the markets and places where most small
entrepreneurs are located so as to make them feel convenient and attend classes without
moving from their places. The course will be customized according to the students education
level; this will give students opportunity to gap the knowledge easily.
BATC will provide strategic entrepreneurship training, professional development and coachingfor small business owners, entrepreneurs and self-employed professionals. The core servicesthat will be offered from day one will be:
Organizational management.
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Business Development
Market Planning
Entrepreneurship.
Pricing.
Business Planning
Financial management Branding.
Product Marketing.
Contracts and Copyright.
Negotiation
Organization and Technology
2.3.2 How the business will create a sustainable competitive advantage
The company will ensure a high quality of services provided to the customers, so as to get the
grip of the modern way of doing business. The company will reach out to all the customers
through its mobile classes.
2.4 Current status of Company and requirements
2.4.1 Description of where the business stands today
The company is made up of three partners, who contributed 45,000,000Tsh in total. The
company is in need of further capital so as increase the operational capability of the business.
2.4.2 Description of what the Company needs to move forward
Company need a capital of 150,000,000 Tsh which will be used to buy 3 Vans which will be
used as mobile class, training equipments, paying salary, and other operating expenses.
Start up operating expenses Amount in Tsh
Fuel 10,500,000
Allowances 3,360,000
Training pack 1,440,000
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Communication 5,600,000
Vans maintenance 3,600,000
Salary 36,000,000
Rent 5,400,000
Legal requirements 41,000,00Total operating expenses 70,000,000
Assets :
Vans 75,000,000
Furniture 2,000,000
Training equipment 3,000,000
Total assets 80,00,000
TOTAL START UP COST 150,000,000
3. MANAGEMENT TEAM
3.1 Management Team
3.1.1 Their Experience, Abilities and Technical Experience
Company will have one Director who will over view the whole company progress with the help of
marketing manager, administrator, financial manager, and operation manager.
Hussein Agil, one of the partners will be the Managing Director, he used to be a project
manager at an NGO company for 7 years, and he is a holder of Masters in Strategic
management from University of Dar es salaam.
On Managerial level, the first manager is Sarah Alley, who will be the operation manager. She
will be over viewing all training activities; conducting training sessions, customizing Lectures
according to the students level and prepare material for students. She is an experienced
lecturer of one of University in Tanzania and holder of two degree, one for education and other
business management from Greenwich University UK.
Loveness Mgonja who is the third partner, she will be the Marketing Manager; taking care of all
marketing strategy and plans of the company. She has 5 years experience in that field and a
holder of Bachelors of marketing from Greenwich University in UK.
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3.2 Key professional Service Provider
3.2.1 Law, Accounting & Business consultancy
Company will be hiring other professionals like Auditors and lawyers. At the end of every year,
the auditor will be hired for the transaction adjustment. The lawyer will be responsible for
advising the companys overall legal entities.
4. COMPANY ORGANISATION STRUCTURE, INTELLECTUAL PROPERTY AND
OWNERSHIP
4.1 Company organisation structure
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4.1.1 Description of Organization Structure
Managing director
At the top level, the Managing Director who will supervise all the other managers and take care
of overall control of the companys operations and finance with the help from other managers.
Operation Manager
This Operation Manager will be responsible to plan and supervise all the company s activities as
follows
Coordinate all training and students materials
Customize training for special students
Give out lectures to students.
Preparing work schedule and assigning special duties
Marketing Manager
The Marketing Manager will take care of all marketing activities, marketing plan, and advertising
the company.
Administrator
Managing
Director
Operation
Manager
Tutors Technician
Marketing
Managing
Financial
ManagerAdministrator
Office
attenderMessengers Drivers
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Administrator will be handling all daily doings at the office and contact with the mobile class to
make sure everything is in the right position.
Arranging of staff meeting which will be held at the office every end of the week to ensure that
overall plan is being efficiently and effective implemented together with Department managers.
Financial manager
Preparing the financial reports of the company.
Advising the company over the financial aspects of the company.
Tutor
He/she will be responsible for teaching the students.
Be responsible for evaluating the students education level.
5. LEGAL STRUCTURE
5.1.2 Legal form of organisation and ownership
The company will be in partnership with three partners, Hussein Agil, Sarah Alley and Loveness
Mgonja; these three are the masterminds behind the whole idea.
Each Partner will contribute 10 %( 40% in total) of the investment needed. The remaining 60%
is expected from private sponsors or loan from banks.
The investors will own 60% of the company, the other 40% will be owned by the three partners.
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5.1.3 Intellectual Property
Patents, Trademarks, and copyright
The company will have an official logo. Also the company will use copyright to all of thematerials which are used to teach the students.
6. INDUSTRY ANALYSIS
6.1 Industry Description
6.1.1 Industry trends
The trend towards the industry of consultancy business companies in Tanzania is moderate due
to the fact that most of the people are not aware about developing their business skills. Thus,
the trend of the industry is still at a minimum stage.
6.1.2 Industry size
The industrial size is not high enough; its being dominated by large business consultancy
companies which so far have targeted large firms and organizations. In dealing with small
entrepreneurs, the industry seems to be minor in size.
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6.1.3 Industry attractiveness
The company feels that it is entering into this business in the time when the window of
opportunity is opened. The need for developing Tanzanian small entrepreneurs is high at the
moment, due to that Tanzanian small entrepreneurs lack enough knowledge of business skills
to compete with other foreign traders. Hence the attractiveness of the industry is very
convincing for the time being.
6.1.4 Profit potential
Like any other firm in any industry, the goal is to generate of profit. With the fact that, not huge
capital is invested in this business, the profit expected in the first year is moderate, but in next
few years the company will generate more profits.
6.2. Target Market
6.2.1 Description of the target marketThe company intends to serve small entrepreneurs who have little knowledge concerning their
daily business activities. The entrepreneurs who are in need of consulting are our target.
BATC will focus on small business owners, managers and entrepreneurs who are concernedwith issues such as;
Lack of business growth at an anticipated
Frustration over too much time spent in their businesses and subsequent worry that their
business will not survive without them
Lack of proper financial management skills
Need to widen market reach/ lack of marketing strategies Lack of originality protection and fair contract negotiation
In Tanzania, entry into small business is usually not seen as a problem. Small Businesses havebeen seen as a hub in generating income for the majority of urban dwellers with no formal paidemployment. One can start small business at any time and in any place. However, thedevelopment of this informal sector has been profoundly characterized by an increased effortencouraging people to engage in Small and Medium Entrepreneurship (SME). This has led tothe proliferation and mushrooming of small businesses most of which are in the form of pettytrading, at least everywhere in the urban centers and few in rural areas.
6.3 Competitive position within target market
6.3.1 Competitor analysis
The company expects competition after some period of time. This is the fact that, the companyis the first mover of this industry. Hence competition is expected to come from others companies
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who will try to imitate our way of doing business. The fact that our company main operation istransferring of knowledge, any person doing the same is regarded as a competitor to ourcompany.
The key elements made at BATC client level, is trust in the professional reputation and reliabilityof the company. The professional development industry is young and growing, with tens of
smaller consulting organizations and individual consultants for every one of the few dozen well-known companies.
Competitors range from major international name-brand consultants to a few hundreds ofindividuals. One of BATC's challenges will be establishing itself as a real professionaldevelopment company, positioned as relatively risk-free business leverage.
When dealing with the medium, small or entrepreneurial business market, cost or price will beone of the greatest obstacles BATC will face. It will be up to BATC to assist its clients in thediscovery of how much it may cost them NOT to pursue professional development and establishBATC as the most effective solution to their challenges.
With time, reputation and word of mouth recommendations will allow for a steady stream of newcustomers as well as regular price increases. The aim is to first build reliability in howbusinesses are affected by trainings delivered.
7. MARKETING PLAN
7.1 Product Strategy
The classes will be customized according to the level of education of the students so that
appropriate services are delivered. This is the unique strategy that the company posses.
The students hand out will be carefully looked by professionals from universities so as to ensure
the customers get the right knowledge.
7.2 Concept Testing
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The company will conduct researches. The researchers will go around the market and shopping
centre like Kariakoo, Tandika, Manzese and Tandale with the sample of training manual and go
around talking to the small entrepreneurs. Questions like is it viable for growth of their
business? Will they like to participate the program? will be asked to the small entrepreneurs.
7.3 Pricing Strategy.
The company will set an appropriate price in which all small entrepreneurs can afford. The price
will change according to the response of customers.
The price will be as follows:
3000Tsh per person per session. Each session includes more than 35 people.
Each session is one hour, 9 sessions per day.
7.4 Market Segmentation
BATC will focus on two markets within the Dar es Salaam Region, the small and mediumbusiness segment (businesses with more than one employee/owner), and the entrepreneursegment, which includes home-based and one-person business operations.
Initially the company will focus on the three segments, llala district, Temeke district,and Kinondoni district area. However, by the end of the 5 years projections, the companyexpects to be serving the entire Tanzania.
The Market Analysis table and chart show the number of small businesses in each district (seeappendix A)
7.5 Channels of Distribution
The services will be offered depending on schedules of a day which will be agreed between
staff and customers (students).
Other Individual session or special training will be conducted at the office.
7.6 Strategy and implementation
Maximize on Mobility
We will design low cost mobile training so us to reach all small entrepreneurs and evenmerchandisers who can sign for the classes be delivered on designated days at their marketsplaces and time especially in common shopping areas like Kariakoo, Karume In Illala District,Mwenge, Tegeta, Tandale, Manseze and Magomeni in Kinondoni, etc, all in Dar es salaam.
Be result oriented
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We will differentiate ourselves with results. We will establish our business offering as a clearand viable alternative for our target market, from the scores of unproven, one-time workshoptype of companies.
Uphold business relationshipsBuild long-term relationships with clients, not single-visit deals. Become their advisor and
partner of choice. Make them understand the value of long-term relationships.
Maintain FocusWe need to focus our offerings on small business owners and entrepreneurs who have apassion for their business and have the willingness to work for what they receive. We do notwant to compete for people who seek quick fix type of resources. We need medium or smallbusiness entrepreneurs and merchandisers who do not have enough knowledge in running abusiness or are passionate in what they are doing and want to develop further.
7.7 Promotion and advertising
The companys promotion and advertising will be covered by the company itself. Since that the
services are provided to where the customers are located by the vans. The company will use
this opportunity to advertise and promoted its services by using the vans and supplying fliers to
the people. This is the best way the company can advertise and promote with very small
expenses.
8. OPERATIONS PLAN
8.1 Method of Production or Service Delivery
The company will prepare handouts which will be given out to students, these handouts will
differ depending on the level of education and type of business the client has.
Other handouts will be prepared in Swahili to help students who have low level of education or
who dont know English to understand the concept behind the given training.
Method of how will be delivery our service
Group session: this will be conducted in Markets or anywhere in group of small business
Individual session: this session will be conducted at the office for the individual.
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8.2 Business Partnership
The company includes three partners who own 40% of the company. The other 60% is owned
by the investors.
8.3 Quality Control
Company will provide quality services which will be previewed and approved by the board of
career development in Tanzania so as to keep our standard at a maximum level so as to ensure
quality services are given to the customers.
9. FINANCIAL PLAN
The company requires 150,000,000Tsh. The amount will be used to buy 3 vans which cost
75,000,000Tsh. The remaining money will be used to acquire other assets like training
equipment. The money will also be used run the operations costs.
FINANCIAL PROJECTION
The financial projection is an overview of the finance of the company in three years time. The
financial projection includes the necessary accounts; which are:
Income statement
Cash flow statement
Balance sheet
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ASSUMPTIONS:
Estimated working days in a year are 280 days. It excludes Sundays and public holiday.
9 sessions per day; each session taking 35 people.
The price is 3000 Tshs per person per session.
Per day there will be 35x9 = 315 people.
Sales per day 315x3000 = 945,000. Per year is 945,000 x 280 = 264,600,000Tshs.
From 2010 to 2011, the people per session will increase from 35 to 40; from 2011 to2012, people per session will increase from 40 to 55. This due to improve marketingtechniques.
Fuel cost: 1500per liter x 25 liters x 280 days = 10,500,000 Tshs
Allowances 4 people in a van (4 x 3000Tshs x 280 days = 3,600,000Tshs)
Communication 20,000Tshs x 280 days = 5,600,000Tshs
Van maintenance 300,000Tsh x 12 months = 3,600,000Tshs
Salary :
General Manager 800,000Tsh x 12 = 9,600,000Tshs
4 managers 4 x 400,000 x 12 = 19,200,000Tshs
3 personnel 3 x 150,000 x 12 = 5,400,000Tshs
Tutor 350,000 x 12 = 4,200,000Tshs
Rent 150sq x 3000 x 12 = 5,400,000
Interest is 10% annually
Tax levy is 15% on profit.
Depreciation on van is 20% on reducing balance method
Depreciation on furniture is 12.5% on reducing balance method
Depreciation on training equipments is 10% on reducing balance method
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9.1 PRO-FORMA INCOME STATEMENT:
Description
(IN TERMS OF TSHS)
Percentage
of revenue 2010 2011 2012
Sales 100% 264,600,000 302,400,000 378,000,000
Total sales 264,600,000 302,400,000 378,000,000
Less operating cost:
Fuel 11.9% 10,500,000 11,995,200 13,494,600
Allowances 3.8% 3,360,000 3,830,400 4,309,200
Training pack 1.6% 1,440,000 1,612,800 1,814,400
Communication 6.3% 5,600,000 6,350,400 7,144,200
Vans maintenance 4.1% 3,600,000 4,132,000 4,649,400
Salary 40.8% 36,000,000 41,126,400 46,267,200
Rent 6.1% 5,400,000 6,148,000 6,917,400
Total depreciation (van,
furniture, and training
equipments) 15,550,000 12,488,750 10,034,406
Total operating expenses 81,450,000 87,683,950 94,630,806
Profit from operation 183,150,000 214,716,050 283,369,194
Interest 10% 10,500,000 8,615,000 8,177,875
Profit before taxation 172,650,000 206,101,050 275,191,319
Levy 15% 25,897,500 30,915,158 41,278,698
Net profit 146,752,500 175,185,892 233,912,621
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9.2 PRO-FORMA CASH FLOW STATEMENT:
DESCRIPTION AMOUNT IN TSHS
Cash flow from operations 2010 2011 2012
Sales 264,600,000 302,400,000 378,000,000
Fuel -10,500,000 -11,995,200 -13,494,600
Allowances -3,360,000 -3,830,400 -4,309,200
Training pack -1,440,000 -1,612,800 -1,814,400
Communication -5,600,000 -6,350,400 -7,144,200
Van maintenance -3,600,000 -4,132,000 -4,649,400
Salary -36,000,000 -41,126,400 -46,267,200
Rent -5,400,000 -6,148,000 -6,917,400
Interest paid 10,500,000 8,615,000 8,177,875
Net cash flow from operations 198,700,000 227,204,800 293,403,600
Cash flow from investments
Purchase of van -75,000,000 - -
Purchase of furniture -2,000,000 - -
Purchase of training equipments -3,000,000 - -
Net cash flow from investments -80,000,000 - -
Cash flow from finances
Interest paid -10,500,000 -8,615,000 -8,177,875
Net cash flow from finances -10,500,000 -8,615,000 -8,177,875
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Net cash and cash equivalents 108,200,000 218,589,800 285,225,725
Cash equivalent on January 150,000,000 213,452,500 250,003,392
Cash equivalent on December 258,200,000 432,042,300 535,229,117
9.3 PRO-FORMA BALANCE SHEET:
Description (AMOUNT IN TSHS)
ASSETS: 2010 2011 2012
Non-current assets:
Motor vehicle (vans) 20% 75,000,000 60,000,000 48,000,000
Furniture (12.5%) 2,000,000 1,750,000 1,531,250
Training equipments (10%) 3,000,000 2,700,000 2,430,000
Total non-current assets 80,000,000 64,450,000 51,961,250
Cash at bank 70,000000 213,452,500 250,003,392
Total current assets 70,000000 213,452,500 250,003,392
Total assets 150,000,000 277,902,500 301,964,642
EQUITY AND LIABILITIES:
Contributed capital 45,000,000 45,000,000 45,000,000
Overdraft (10%) 105,000,000 86,150,000 81,778,750
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Retained earnings - 146,752,500 175,185,892
Total equity and liabilities 150,000,000 277,902,500 301,964,642
10. CRITICAL RISK FACTORS
As in any entrepreneur activity, the organization must be able to bear the risk of the business.
The risks should be clearly identified and pre cautioned by the organization so as to overcome
them. Here are some of the critical risk factors:
10.1 MANAGEMENT RISKThe management is the heart of the business, since that all the operation are controlled and
supervised by the management. The risk in management comes when recruiting new staff and
supervising the old staff. When recruiting new staff, the organization can mistakenly recruit staff
that are not capable and lack passion of doing their jobs respectively. At the end the new staff
will result to poor operational performance. When it comes to the old staff; they may try to
squeeze out of the companys financial perspective. This is very common for the staffs that are
related to the finance issues of the company. This is the risk that might occur.
10.2 FINANCIAL RISK
The company expects a financial risk from the global economic crisis. The global economic
crisis is one of the risks that might occur. The global economic crisis is all over the world; the
current economic situations are in bad shape and this may result poor level of business
activities in which will have a direct effect on our potential customers.
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10.3 MARKETING RISK
The market overview that we have targeted in the first year is few, we expect in two up to five
years to come the market will increase; but that is a risk depending on the marketing response
from the public. In any type of business; market availability at first place is not accurately
predicted, so it is normal to consider the marketing risk before starting the business.
10.4 OPERATING RISK
The business involves consulting and teaching business people how to develop and grow their
business; hence the best service is required from the staff. If the customer receives
inappropriate service from the staff, the company might lose due to this. This is the risk that
might occur.
10.5 INTELLECTUAL PROPERTY INFRIGMENT
In any country, once a new way of doing business is successful; eventually others will follow up.
The authority that is responsible for intellectual property right in Tanzania is very weak
compared to other countries like the US. Due to the weakness of the authority; it is likely tooccur that other companies will try to do the same business; this is the risk that might occur.
REFERENCE AND BIBLIOGRAPHY
Textbooks
1. B. R. Barringer and R. D. Ireland, 2008, Entrepreneurship successfully Launching newventure , 2nd Edition, person Prentice Hall, united State of America.
2. Stokes David , 2002, Small business management, 4th Edition.
3. T.W Zimmerer & N.M Scarborough, 2008, Essential of Entrepreneurship and Smallbusiness management 5th edition, Pearson prentice hall.
News Papers
1. Guardian, November 2009, East Africa reformation deeds, by Iddi Linganga, Dar esSalaam
2. HabariLeo, November 2009, Tanzania ya pili kwa rushwa ndogo, Dar es salaam
Web sites
1. http://www.tccia.com/tcciaweb/default.aspx , last visiting 20th November 2009, 5:13pm
http://www.tccia.com/tcciaweb/default.aspxhttp://www.tccia.com/tcciaweb/default.aspxhttp://www.tccia.com/tcciaweb/default.aspx8/2/2019 BATC BIZPLAN
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2. http://www.encyclopedia.com/doc/1G1-63399589.html , last visiting 25th November 2009,10:20 am
3. http://derekstockley.com.au/tna.html , last visiting 14th December 2009,5:20 pm
4. http://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needs, last visiting 14th December 2009, 6:01 pm
5. http://images.google.co.tz/imgres?imgurl=http://ktaylorandassoc.com/image , last visiting14th December 2009, 6:40
APPENDIX
Appendix A
Illala
Kinondoni
Temeke
http://www.encyclopedia.com/doc/1G1-63399589.htmlhttp://www.encyclopedia.com/doc/1G1-63399589.htmlhttp://derekstockley.com.au/tna.htmlhttp://derekstockley.com.au/tna.htmlhttp://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needshttp://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needshttp://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needshttp://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needshttp://images.google.co.tz/imgres?imgurl=http://ktaylorandassoc.com/imagehttp://images.google.co.tz/imgres?imgurl=http://ktaylorandassoc.com/imagehttp://images.google.co.tz/imgres?imgurl=http://ktaylorandassoc.com/imagehttp://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needshttp://www.toolkitsportdevelopment.org/html/resources/B3/B3375796-DDDF-42AE-F44-519B2D7A4DD/12%20training%20needshttp://derekstockley.com.au/tna.htmlhttp://www.encyclopedia.com/doc/1G1-63399589.html8/2/2019 BATC BIZPLAN
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BATC Market Analysis
01 January
2010
01 January
2011
01 January
2012
01 January
2013
01 January
2014
Potential
Customers Growth CAGR
Illala 6% 31,424 33,309 35,308 37,426 39,672 6.00%
Kinondoni 7% 31,424 33,624 35,977 38,496 41,190 7.00%
Temeke 4% 31,424 32,681 33,988 35,348 36,762 4.00%
Total 5.67% 94,272 99,614 105,274 111,270 117,624 5.67%
Example of the van
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