his living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues

1. 1
MUINUKI ERICK MAINA
ENTRPREUNEURSHIPANDSMALLBUSINESSMANAGEMENT
BUSINESSPLAN ASSIGNMENT

2. 2
BUSINESS PLAN
EMARYA ELEGANCE WEAR
WEST CASTLE, KAKAMEGA ROAD
TEL;-020-445678
0725331648 or 0734568906
WEBSITE; - www.emarya elegance.com emarya99@yahoo.com

3. 3
MUINUKI ERICK MAINA (GENERAL MANAGER)
+254 722178944
P.O.BOX 423-00516
NAIROBI.
JAMES OKELLO (SECRETARY)
+254 799807654
P.O.BOX 44-00158
NAIROBI.
BRIAN MALWA (TREASURER)
+254 765678467
P.O.BOX 897=00515
NAIROBI.
Plan Prepared March 2015 by Corporate Managers.

4. 4
I. Table of Contents
I. Table of Contents...................................................................................................4
II. Executive Summary...............................................................................................5
III. Purpose and background…….............................................................................8
IV. Products and Services..........................................................................................9
V. Market..................................................................................................................10
VI. Marketing Plan....................................................................................................11
VII. Management and Organization.........................................................................13
VIII. Personnel Plan…………................................................................................14
X. Financial Plan.......................................................................................................15
XI. Appendices........................................................................................................... 17

5. 5
EXECUTIVE SUMMARY
Emarya Elegance Wear is a private limited company owned by three shareholders;-Caroline
Mwaura, Brian Malwa and James Okello. As the name suggests, it is a company that deals in
fashionable African-American wear ranging from clothes, shoes, bags to accessories for all ages
and for both male and female.
The hours of operation will be Monday - Tuesday 10 a.m. - 6 p.m., Wednesday - Saturday 10
a.m. - 8 p.m., and Sunday 12 p.m. - 6 p.m. There will be extended special hours designated
during the holidays especially during Christmas holiday shopping season.
Emarya Elegance Wear’s costs are listed below. The company will start with three months
inventory on hand for apparel and accessories as this are the main revenue generator. The
majority of the company's assets will reside in inventory. The opening day’s cash on hand
balance will be KSh. 38,400
The purpose of this business plan is to secure a KSh. 167,000 Barclays loan. This supplemental
financing is required to work on site preparation, inventory, and operational expenses. The loan
amount appears in the long-term liability row of the start-up summary. Other financing will
include the owner’s investment of KSh. 51,000 and a short term revolving line of credit of KSh.
20,000 for inventory replenishment during months of high receipts.
Successful operation and building a loyal customer base will allow Emarya Elegance to be self
sufficient and profitable in year two.
We are the first and only African-American owned company in Kenya and main location and
headquarter at West Castle, Kakamega Road, Asmara. This is a directly centralized position to
the residential location and social activities of our target market.
We will have four other branches opened by end of this year (1995) around the country. We
believe that this is critical to our initial success and long-term growth.
. The start-up funding is as follows;-

6. 6
Start-up Funding KSh.
Start-up Expenses to Fund 9,416
Start-up Assets to Fund 14,384
Total Funding Required 23,800
Assets
Non-cash Assets from Start-up 14,000
Cash Requirements from Start-up 384
Additional Cash Raised 0
Cash Balance on Starting Date 384
Total Assets 14,384
Liabilities and Capital
Liabilities
Current Borrowing 0
Long-term Liabilities 16,700
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 2,000
Total Liabilities 18,700
Capital
Planned Investment
Owners Investment – Cash 5,100
Other 0
Additional Investment Requirement 0
Total Planned Investment 5,100
Loss at Start-up (Start-up Expenses) (9,416)
Total Capital (4,316)
Total Capital and Liabilities 14,384
Total Funding 23,800
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
CASH IN KENYAN
SHILLINGS

7. 7
Business/Office Supplies 400
Other 500
Total Start-up Expenses 9,416
Start-up Assets
Cash Required 384
Start-up Inventory 14,000
Other Current Assets 0
Long-term Assets 0
Total Assets 14,384
Total Requirements 23,800

8. 8
PURPOSE AND BACKGROUND
MISSION STATEMENT: WE ARE A COMPANY THAT TAKES UP THE
RESPONSIBILITY AND COMMITMENT TO DO BUSINESS IN WAYS THAT
ARE GLOBALLY ACCEPTABLE.
Goal: To offer quality, name brand African-American wears in an assortment of sizes and styles
to accommodate all varying body styles and shapes.
OBJECTIVES:
 To have a healthy, successful company that is a leader in customer service and that
has a loyal customer following.
 To map out all the necessary components to create a successful and well-run fashion
house.
 Our intentions are to obtain 80% market share and become a central hub of shopping
activity for the local African-American population
 To be an active and vocal member in the community supporting fashion events, and
organizations working on youth, fashion and design talents for blended African-
American wear.

9. 9
PRODUCTS AND SERVICES
Emarya Elegance will carry nationally recognized African- American wear brands (see list
below). We will be purchasing through sales representatives and manufacturers in a variety of
sizes, colors and style to fit our target market base. The greatest percentage of merchandise will
be in clothes, followed by accessories, hats, and gifts.
We will have our clothes designers at Dallas Market, a four hour drive from Asmara, where our
own designers will operate from. For other brands who have showrooms around the region, we
will place our weekly re-orders and review them.
Management will rely on customer feedback, suggestions, and sales reports to introduce or
eliminate certain brands, styles and sizes. Our goal is to carry a selection of labels from the
hardcore western wear to African-Kenyan wear.
For a reasonable competitive advantage over our competitors, we will offer clothing to fit plus-
size women and big and tall men, create a sense of culture and bonding with the community by
offering products that combine both the American-African Kenyan cultures, our branches are to
be centralized to our target customer base and maintain a detailed record on each customer,
logging addresses, their purchases, size, and brand for customer follow-up and in-house
promotional purposes.

10. 10
THE MARKET
Asmara’s is the capital city of Kenya therefore leading to the highest concentration of our
customer base.
Kenya has greatly embraced the American wear while still maintaining our own African values
and culture hence about a circumference of 400 kilometers outskirts of Asmara will be a great
market too.
The last area of potential customers is labeled as "other." These are other Kenyans and
American-African wear lovers whom along with accessories and gifts we feel that we will attract
them. Our ambience and customer service will make them repeat customers.
Market segmentation
As Emarya Elegance wear, we will attract more customers in the market using our brand name
and logo that has the sign to show harmony between African and American wear.
The main goal to serve the nation and East African with this kind of wear is due to the rise in
demand of harmonizing African wear with the western wear since most outfit companies in
Kenya specialize in manufacture and sale of western wear only; for example, Mr. Price who only
sell the western type of outfit ranging from clothes, bags, accessories and shoes.

11. 11
MARKETING PLAN
Marketing strategy
Marketing strategy will focus heavily on sales promotion, niche positioning in the market and
customer service with loyalty and retention in sales.
Our promotions will always stay in tune with our company objectives and mission statement.
Promotion strategy
1. A press release kit will be sent to all major media outlets in Asmara and outskirts
highlighting the grand opening of the first African-American wear apparel retailer in
the city. This kit will include a press release, pictures of the interior space and a
business card.
2. Spot radio advertisements on two local FM radio stations, NATION FM and KISS
100. Our retail location will be the foundation of building our customer base.
Distribution strategy
We will also manage a direct mail program that will focus on our top 50% customers
spotlighting any in-house sales and promotions.
Sales strategy
The following table and chart give a highlight on forecasted sales. We expect sales to start off
conservatively and increase extensively during the Christmas holiday shopping season.
Emarya Elegance Wear has planned for a rate of growth at 15% for the first year as we build
name recognition and status in the community. In the second and third year we look to see an
increase of revenue of 20% as we gain a larger percentage of the market share and increase our
customer base beyond Asmara city.

12. 12

13. 13
MANAGEMENT SUMMARY
Employees will be encouraged to work within their creative, physical, and intellectual
boundaries. All duties will be divided and delegated according to strengths and weaknesses. At
Emarya we will expect a high degree of customer service skills and personality as this is
essential to our success.
Human Resource Management will assess the productivity and perform informal employees’
evaluations of all employees every six months. These bi-annual evaluations are conducive to the
continued growth of our small business.
Organizational Structure
Emarya elegance is a small business and therefore requires a simple organizational structure. All
decisions are made in-line with the company objectives. Employees’ tasks are delegated based
upon their level of expertise, creativity, strengths and weaknesses.
Management Team
Caroline Mwaura, co-owner and general manager will be responsible for all administrative
functions, purchasing, inventory control, and promotions. She will also act as a part-time sales
representative. She has spent over 8 years in accounting, finance and operations management.
She was also the owner of Luked Limited Company, an e-commerce toy store for three years.
She has extensive background in purchasing, inventory control, and marketing.

14. 14
THE PERSONNEL PLAN
During the commencement of the actual job, we will have a total of fifteen employees’
managers, designers, sales and marketing persons and others inclusive at Asmara. Other
employees to be obtained as time go by for purposes of other joints to be opened in different
locations in Kenya.
Since trending fashion and design of African-American wear is our most unique feature in our
wear, our designers are the most important during the manufacture. We have recruited the best
known designers in Kenya.
There will be six full-time employees as top management, five full-time designers and four part-
time employees working 20-30 hours per week. The full-time employees in exclusion of the top
management who have their monthly salaries ranging from sh. 30,000 to 65,000 will be paid at a
rate of Sh. 250 per hour and the two part-time employees will be paid at a rate of Sh 150.00 per
hour. All employees will benefit from a one day paid holiday on their respective birthdays and
one week of paid vacation after twelve months of employment.
At this time medical benefits will not be offered to employees. As profits increase in the future
medical benefits will be offered to all employees.

15. 15
FINANCIAL PLAN
The growth of Emarya Elegance will be moderate and the cash balance will always be positive.
Being a retail environment we will not be selling on credit. We will accept cash, cheques, and all
major credit cards. TeleCheck Services will be used as the check guaranty system to help reduce
the percentage of loss on bad checks. Marketing and advertising will remain at or below 5% of
sales. We will continue to reinvest residual profits into company expansion, and personnel.
Important Assumptions
Emarya Elegance does not sell on credit nor do we offer layaways at this time. We accept cash
and checks, Visa, MasterCard and Discover. All sales paid via credit cards will be deposited in
our business checking account within 48 hours. Our business checking account will be with
National Bank. They have reported the interest rate as those listed below.
BREAK-EVEN ANALYSIS

16. 16
A break-even analysis table has been completed on the basis of average costs/prices. With fixed
costs of Sh 580,000, sh. 4700 in average sales, and sh.2300 in average variable costs, we need sh.
1,170,000 per month in sales to break even.
PROJECTED CASHFLOW

17. 17
Pro Forma Profit and Loss
Mnth
1
Mnth
2
Mnth
3
Mnth
4
Mnth
5
Mnth
6
Mnth
7
Mnth
8
Mnth
9
Mnth
10
Mnth
11
Mnth
12
Sales 17800 19050 19050 21800 21800 26550 27800 26500 27750 27500 24300 24300
Direct
Cost of
Sales
8900 9525 9525 10900 10900 13275 13900 13250 13875 13750 12150 12150
Other
Production
Expenses
0 0 0 0 0 0 0 0 0 0 0 0
Total Cost
of Sales
8900 9525 9525 10900 10900 13275 13900 13250 13875 13750 12150 12150
Gross
Margin
8900 9525 9525 10900 10900 13275 13900 13250 13875 13750 12150 12150
Gross
Margin %
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
50.00
%
Expenses
Payroll 3460 3460 3460 4325 3460 3460 4325 3460 3460 4325 3460 3460
Sales and
Marketing
and Other
Expenses
1229 1229 1579 1229 1229 1229 1229 1579 1229 1229 1229 1229
Depreciati
on
0 0 0 0 0 0 0 0 0 0 0 0
Telephone
/ Pagers/
Cell
150 150 150 150 150 150 150 150 150 150 150 150
Utilities 375 375 375 375 375 375 375 375 375 375 375 375
Payroll
Taxes
10
%
346 346 346 433 346 346 433 346 346 433 346 346
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total
Operating
Expenses
5560 5560 5910 6512 5560 5560 6512 5910 5560 6512 5560 5560
Profit
Before
Interest
and Taxes
3340 3965 3615 4389 5340 7715 7389 7340 8315 7239 6590 6590
EBITDA 3340 3965 3615 4389 5340 7715 7389 7340 8315 7239 6590 6590
Interest
Expense
137 135 132 130 128 125 123 121 119 116 114 112
Taxes 961 1149 1045 1278 1564 2277 2180 2166 2459 2137 1943 1943

18. 18
Net Profit 2242 2681 2438 2981 3649 5313 5086 5053 5738 4986 4533 4535
Net
Profit/Sale
12.60
%
14.08
%
12.80
%
13.67
%
16.74
%
20.01
%
18.29
%
19.07
%
20.68
%
18.13
%
18.66
%
18.66
%
Pro Forma Cash Flow
Mnth
1
Mnth
2
Mnth
3
Mnth
4
Mnth
5
Mnth
6
Mnth
7
Mnth
8
Mnth
9
Mnth
10
Mnth
11
Mnth
12
Cash Received
Cash from
Operations
Cash Sales 17800 19050 19050 21800 21800 26550 27800 26500 27750 27500 24300 24300
Subtotal Cash
from
Operations
17800 19050 19050 21800 21800 26550 27800 26500 27750 27500 24300 24300
Additional
Cash Received
Sales Tax VAT
HST/GST
Received
0.00% 0 0 0 0 0 0 0 0 0 0 0 0
New Current
Borrowing
0 0 0 0 0 0 0 0 0 0 0 0
New Other
Liabilities
(interest-free)
0 0 0 0 0 0 0 0 0 0 0 0
New Long-
term Liabilities
0 0 0 0 0 0 0 0 0 0 0 0
Sales of Other
Current Assets
0 0 0 0 0 0 0 0 0 0 0 0
Sales of Long-
term Assets
0 0 0 0 0 0 0 0 0 0 0 0
New
Investment
Received
0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash
Received
17800 19050 19050 21800 21800 26550 27800 26500 27750 27500 24300 24300
Expenditures
Mnth
1
Mnth
2
Mnth
3
Mnth
4
Mnth
5
Mnth
6
Mnth
7
Mnth
8
Mnth
9
Mnth
10
Mnth
11
Mnth
12
Expenditures
from
Operations
Cash Spending 3460 3460 3460 4325 3460 3460 4325 3460 3460 4325 3460 3460
Bill Payments 263 8078 13581 13247 15963 14881 20346 19017 17337 19200 17935 14605

19. 19
Subtotal Spent
on Operations
3723 11538 17041 17572 19423 18341 24671 22477 20797 23525 21395 18065
Additional
Cash Spent
Sales Tax VAT
HST/GST Paid
Out
0 0 0 0 0 0 0 0 0 0 0 0
Principal
Repayment of
Current
Borrowing
0 0 0 0 0 0 0 0 0 0 0 0
Other
Liabilities
Principal
Repayment
0 0 0 0 0 0 0 0 0 0 0 0
Long-term
Liabilities
Principal
Repayment
275 275 275 275 275 275 275 275 275 275 275 275
Purchase Other
Current Assets
0 0 0 0 0 0 0 0 0 0 0 0
Purchase Long-
term Assets
0 0 0 0 0 0 0 0 0 0 0 0
Dividends 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash
Spent
3998 11813 17316 17847 19698 18616 24946 22752 21072 23800 21670 18340
Net Cash Flow 13802 7237 1734 3953 2102 7934 2854 3748 6678 3700 2630 5960
Cash Balance 14186 21423 23157 27109 29212 37145 39999 43748 50425 54125 56755 62715
Pro Forma Balance Sheet
Mnth 1 Mnth 2 Mnth 3 Mnth 4 Mnth 5 Mnth 6 Mnth 7 Mnth 8 Mnth 9
Mnth
10
Mnth
11
Mnth
12
Assets
Starting
Balances
Current Assets
Cash 384 14186 21423 23157 27109 29212 37145 39999 43748 50425 54125 56755 62715
Inventory 14000 9790 10478 10478 11990 11990 14603 15290 14575 15263 15125 13365 13365
Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Current Assets 14384 23976 31900 33634 39099 41202 51748 55289 58323 65688 69250 70120 76080
Long-term Assets
Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulated
Depreciation
0 0 0 0 0 0 0 0 0 0 0 0 0
Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0

20. 20
Total Assets 14384 23976 31900 33634 39099 41202 51748 55289 58323 65688 69250 70120 76080
Liabilities and Capital Mnth 1 Mnth 2 Mnth 3 Mnth 4 Mnth 5 Mnth 6 Mnth 7 Mnth 8 Mnth 9
Mnth
10
Mnth
11
Mnth
12
Current Liabilities
Accounts Payable 0 7625 13143 12714 15473 14202 19710 18441 16696 18599 17450 14062 15762
Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Current
Liabilities
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Subtotal Current
Liabilities
2000 9625 15143 14714 17473 16202 21710 20441 18696 20599 19450 16062 17762
Long-term Liabilities 16700 16425 16150 15875 15600 15325 15050 14775 14500 14225 13950 13675 13400
Total Liabilities 18700 26050 31293 30589 33073 31527 36760 35216 33196 34824 33400 29737 31162
Paid-in Capital 5100 5100 5100 5100 5100 5100 5100 5100 5100 5100 5100 5100 5100
Retained Earnings (9416) (9416) (9416) (9416) (9416) (9416) (9416) (9416) (9416) (9416) (9416) (9416) (9416)
Earnings 0 2242 4923 7361 10342 13991 19304 24389 29443 35180 40166 44699 49234
Total Capital (4316) (2074) 607 3045 6026 9675 14988 20073 25127 30864 35850 40383 44918
Total Liabilities and
Capital
14384 23976 31900 33634 39099 41202 51748 55289 58323 65688 69250 70120 76080
Net Worth (4316) (2074) 607 3045 6026 9675 14988 20073 25127 30864 35850 40383 44918