Business plan for mackie stores

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GULU UNIVERSITY
FACULTY OF SCIENCE
ENTREPRENEURSHIP
YEAR ONE
SEMISTER TWO
ASSIGNMENT: BUSINESS PLAN
REG NO; 16/U/0688/GCS/PS
MACKMOT AMBROSE

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Business Plan for Mackie Stores
MACKIE STORES
+256703177419
+256778795048
Gulu, Uganda
gameramby@gmail.com
I. Table of Contents
Contents
VII. Objectives ...................................................................................................................4
VIII. Location and Premises ................................................................................................4
IX. Legal Form, Ownership and Management.......................................................................5
X. Products.........................................................................................................................5
XI. Market Characteristics...................................................................................................5
XII. Entrepreneurship..........................................................................................................5
XIII. Financial Summary.....................................................................................................5
XIV. PRODUCTION PLAN ...............................................................................................6
XV. Product Attributes........................................................................................................6
XVI. Quality Control and Assurance....................................................................................6
XVII MARKET ANALYSIS...............................................................................................7
1.1 Market Size ...............................................................................................................7
1.2 Market Segmentation .................................................................................................7
1.3 Competitor Analysis ..................................................................................................7
XVIII. MARKETING STRATEGY.....................................................................................7
2.1 Product Strategy........................................................................................................7
2.2 Pricing Strategy .........................................................................................................7

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2.3 Distribution Strategy..................................................................................................7
2.4 Promotion Strategy ....................................................................................................7
XX. OPERATION PLAN ...................................................................................................8
XXI. Operational Rationale .................................................................................................8
XXII. Inventory Management..............................................................................................8
XXIII. Legal Insurance Issues..............................................................................................8
XXIV. Leadership...............................................................................................................8
XXV. Product delivery........................................................................................................8
XXVI. Customer Resource..................................................................................................9
XXVII. MANAGEMENT PLAN.........................................................................................9
XXVIII. LEGAL FRAME WORK AND ENVIRONMENTAL AND SOCIAL FACTORS...10
FINANCIAL PLAN..........................................................................................................10
XXIX. PROFORMA INCOME STATEMENT FOR MACKIE STORES ENTERPRISE
FROM 31st
DEC 2018-31st DEC 2019...............................................................................10
PROFORMA CASH FLOW BUDGET OF MACKIE STORES ENTERPRISE FOR THREE
YEARS (2017-2019).........................................................................................................11
PROFORMA BALANCE SHEET FOR MACKIE STORES ENTERPRISE FOR THE FIRST
THREE YEARS (JAN 2017- 31ST DEC 2019) ..................................................................11
II. Executive Summary
Mackie stores is a produce enterprise, soon to be established in Atiak town council,
Amuru district as a new venture that produces and supplies high quality agricultural
produce. Less than 30% of Amuru’s population is involved in commercial agricultural
production.
The business will be based at the premises of Mr.Oneka Joseph on 5 acres of land. It will
be a partnership business with five people as the founders and owner. This produce store
is intended to be operational by the start of January 2018.
The produce store will target both the local and external markets within the northern
region districts and will lay strategies to compete effectively with its competitors as it
will employ qualified staff to manage the farm. Product promotion and marketing will be
done effectively and efficiently by the employees in order to penetrate the market faster
and out-compete the other competitors by establishing itself as the most dominant one.

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Strategies like improved services to existing customers, identification of target markets,
interactive marketing and information gathering on the competitors will be employed.
We as the owners of the business will fund it with 15,000,000 Uganda shillings from
their personal savings and then the additional 6,367,000 Uganda shillings shall be got as a
loan from a micro financial institution with repayment scheduled for within a three year
period.
III. Products and Services
We offer a lot of products which include processed and packed maize flour, cassava
flour, millet flour, groundnuts, soya beans, beans.
IV. BUSINESS BACKGROUND
We intend to start this business since production and consumption of food in this area is
is mandatory. Yet there are some people who do not have access to these food products
mostly NGOS. The interest to start up the business followed the identification of the
inadequacy in the production and supply of food stuffs both in quantity and quality within
town council and the district at large. This is due to the fact that there are few people
engaged in this kind of venture within the area of operation and yet the human population
and the for Food consumption rate are ever increasing daily. The purpose of the
enterprise is to dominate the market while maximizing sales and profits.
V. Vision Statement
To be the chief producer and supplier of high quality agricultural produce within Atiak
Town council and the whole district as well as other district with a loyal customer
following.
VI. Mission Statement: To offer low costs products to individuals who are low income earners
to promote proper nutrition in order to fight mulnutritional diseases.
VII. Objectives
 To maximize profits.
 To dominate the market within the areas of operation.
 To produce good quality products for customers under maximum hygienic
conditions.
 To supply agricultural produce of good quality at a relatively cheaper costs.
VIII. Location and Premises
Our business shall be located in Northern Uganda, Amuru district, Atiak town council.
Abalokodi village. The business will be based at the premises of, Mr. Oneka Joseph.

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IX. Legal Form, Ownership and Management
This poultry business shall be registered with the local government for formality. It is
partnership of Mackmot, Banya, Ayella and Partrick, with the owners taking full
management control as the directors. This is because the owners are professional in
management and so capable of employing and maintaining the highly qualified staffs that
have knowledge and skills in agriculture majoring in agricultural produce production and
management. This is further being enhanced by our inborn passion and self-motivation
for this kind of venture and as well we mingled this with entrepreneurship and
management skills.
X. Products
The business is intended to supply agricultural produce. However we are still doing
research, about the market, supply facilities and the exact quality of produce to be sold in
accordance to the environmental factors such as temperature. The unique characteristics
of our business shall include high quality products as the major priority that will be
attained through getting suppliers of produce directly from there gardens.
XI. Market Characteristics
There is high consumption expenditure since most of the people are employed in both the
private, public and informal sectors hence creating the necessary demand for the
products.
The business is targeting all formal and informal sector workers,
institutions/organizations, hotels like free zone Hotel, restaurant like Mackie villa
Supermarkets like Metro, and the general public in Amuru district.
Furthermore, the development of transport network in and around the area makes it
possible for quick and safe delivery of both agricultural produce and inputs to market and
production site respectively.
From the above information, the business has the opportunity of satisfying the existing
high demand for the products confirming ready market for the agricultural produce that
will be produced after starting the business.
XII. Entrepreneurship
As mentioned before, the business shall be owned by the executive directors
(partnership). This is due to the fact that the directors have acquired professional
knowledge and skills in project management and entrepreneurship development
accompanied with the passion and self-motivation for this kind of business. The owners
shall however employ workers who will assist in running the daily activities with a
minimum qualification of a certificate in Agriculture, marketing and any other related
fields.
XIII. Financial Summary
We estimate that the startup capital of the business is 21,567,000 Uganda shillings. The
owners has already raised 15 million through personal savings and the remaining balance
of 6,367,000 Uganda shillings is expected to be got from any micro financial institution
and it will be paid within three years of operation. More money from the project will
accrue from daily sales beginning from the 20th week.

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Asset Quantity Rate(Ushs) Total Production
Cost (Ushs)
Land 5 acres 1,000,000 3,000,000
Housing: -Workers
Machine operators
2
2
1,500,000
2,000,000
1,500,000
2,000,000
Transport Isuzu truck - 8,000,000
Designs
on packaging bags
1000 1700 1,700,000
Maize 35 bags 80,000 2,800,000
Electricity 40watts per hour 3,000 120,000
Lunch for workers 4 6,000 84,000
Millers
patchers
sorter
2
1
1
20,000,000
4,000,000
600,000
40,000,000
4000000
600,000
Dust remover 2 60,000 120,000
Gumboots 4 12,000 48,000
Petrol 5 litres per trip 20,000 60,000
Machine sealer 1 45,000 45,000
Wages: Attendants 2 100,000 200,000
Salesman 1 200,000 200,000
Production manager 1 250,000 250,000
Finance manager 1 220,000 220,000
Others - - 1,000,000
Grand Total 21,567,000/=
XIV. PRODUCTION PLAN
Distinctive characteristics; the products to be supplied shall have exceptional features
such as good quality agricultural produce with high nutrients. The agricultural produce
shall be routinely checked on their quality as advised by agricultural personnels in order
to maintain the quality. The potential competitors likely to challenge the demand for the
products are those who supply produce from Lira and other surrounding towns, small
scale agricultural producers and sellers within the area of operation. However, they shall
be counter balanced by producing high quality products at relatively low prices as a result
of sourcing produce locally which reduces the costs of transport. The product offered by
the business shall be advertised on radios and posters specifying the product packing,
sizes and where they can be got. Sales promotion strategies like delivery services,
discount services and above all relatively low prices will also be advertised.
XV. Product Attributes
The agricultural produce processed and supplied by the enterprise shall be of good
quality in that they will be, healthy and highly graded in terms of nutritiousness.
XVI. Quality Control and Assurance
In order to avoid selling poor quality and unhygienic agricultural produce to the
customers.

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All personnel involved in all the production processes have to regularly be keen on what
they are doing.
XVII MARKET ANALYSIS
1.1 Market Size
Our agricultural produce enterprise is earmarking a growing market which is estimated to
have an overall population of 50,000 people within and outside Amuru district who are
expected to buy the agricultural produce both in the short and long run. The hotels and
restaurants take in bulk as well as the emerging markets outside the district like Gulu,
Kitgum and some other districts.
1.2 Market Segmentation
The business assumes that the current market is big enough and is continuously
expanding with time due to the high eruption rate of hotels, institutions, guesthouses
among others. Within the area of operation, the population has a high fertility rate hence
future market demand for the products from the enterprise is guaranteed. The targeted
market comprises of potential customers such as households, civil servants, private and
informal sector workers and institutions operating within the areas/district.
1.3 Competitor Analysis
The available competitors are also small scale producers both from within the district and
also outside like those from Lira. Their poor quality products, higher product prices and
delayed deliveries to the customers due to their longer distances from the market areas
will be key in out competing them as the enterprise will ensure the continuous production
and supply of relatively cheap, good quality and timely delivery to customers.
XVIII. MARKETING STRATEGY
2.1 Product Strategy
The product will be differentiated according to sizes in order to cater for the various
categories of customers with varying income levels. The enterprise will emphasize
labeling of the products with the enterprise logo, quantity and quality attributes for all the
segments.
2.2 Pricing Strategy
The pricing of the products will depend on the costs of production, demand and general
pricing of competitors. Bulk buyers will be given a discount. Reliable and trustworthy
customers with a good debt clearing record will even be allowed to purchase on credit.
2.3 Distribution Strategy
The distribution shall be done both directly through selling to customers at the factory at
gate price and through deliveries to potential buyers who buy in both small quantities and
in bulk. Relational contracts and orders from bulk buyers shall be honored and
immediately delivered. The salesman will do this job using the pick up to distribute the
products to the various customers.
2.4 Promotion Strategy
The enterprise intends to utilize any existing opportunities of reaching out to the potential
customers. Several among other strategies include advertisements on radio and local

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newspapers like Rupiy specifying the product quality, discount rates offered on the
product prices among other key things.
XIX. PROJECTED SALES
Year Quantity Total amount
1st 40 tones 25,000,000
2nd 60 tones 75,000,000
3rd 90 tones 150,000,000
XX. OPERATION PLAN
The business shall require among others the following; 1 processing house with a store,
one house for the workers, land (already available), a Isuzu truck, sprayers, pallets and
record books.
XXI. Operational Rationale
The management of Mackie stores enterprise will carry out financial research. This will
be in areas of market research and quality improvement. The business shall put in place
quality control measures or policies that will include use of quality products obtained
locally and from authorized agricultural sellers in case of need and enough separation
distance between factory houses.
XXII. Inventory Management
The inventory of the business will be mainly the unprocessed products, processed and
packed products, vehicle, machinery and tools. 1,000 tones of produce will be bought
each year. They will be obtained from a reliable source such as the Agricultural Research
Institute in Kawanda.
XXIII. Legal Insurance Issues
The manager will insure the business against fire outbreaks and poor storage of products.
XXIV. Leadership
The manager will ensure that an entrepreneur team is established with a leadership
hierarchy to cater for the various activities. The executive will be comprised of the
Director, the production manager, sales manager and financial manager. The executive
management committee will perform duties of recruitment of staff, monitoring and
evaluation of the business and decision making.
The sales manager will keep records on delivery, promoting sales and banking.
The production manager will be in charge of other responsibilities such as supervising
and ensuring that facilities and tools for the day to day running of the activities are in
place. Attendants will take the responsibilities of cleaning houses, feeding birds assisting
the production manager during spraying and vaccination.
XXV. Product delivery
Customers owning large scale businesses like guest houses, hotels, restaurants and super
makers will have door to door service delivery through their instructions and bookings.

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There will be a receipt for each sale, bookings and orders organized in a record book.
Deliveries will be done using the firm’s vehicle.
XXVI. Customer Resource
High degree of importance will be attached to customer service. Employees will receive
training in customer service and procedures to deal with customer concerns especially on
delivery of good quality broilers. The firm will give a standard brief questionnaire
designed for the customers to fill in order to get their complaints and advice.
XXVII. MANAGEMENT PLAN
The following human resources will be required for business startup, its progress and
subsequent developments and running of its day to day operations.
We as the Directors, we plan to employ the general manager of the enterprise with a
Diploma in Agriculture for better management of our enterprise. Having acquired
professional knowledge and skills in agricultural production and management,
entrepreneurship and human resource management we think this manager will be pivotal
in the success of the business.
Production manager: He will be in charge of enforcing quality, supervising the overall
production of the products of the enterprise and will have qualification of diploma in
Agriculture.
Financial manager: He will be in charge of auditing books of accounts, balancing the
books, withdrawing and depositing money as well as paying workers,
Sales manager: He will be in charge of keeping records and delivery services, research
in marketing and giving information concerning the business progress. A diploma in
business administration qualification.
AJ POULTRY FARM ENTERPRISE ORGANIZATIONAL STRUCTURE
s
DIRECTOR
FINANCE MANAGERPRODUCTION MANAGER
ATTENDANTS SALESMAN

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XXVIII. LEGAL FRAME WORK AND ENVIRONMENTAL AND SOCIAL
FACTORS
The enterprise shall be registered with the office of the Registrar of businesses within the
district local authority in order for our business to operate legally.
Local procurement of agricultural resources that are available shall be the priority of the
enterprise’s top management coupled with the transfer of technical knowledge to the
locals; by as a way of returning to the community by conducting regular agro production
and management trainings.
FINANCIAL PLAN
As earlier indicated in the executive summary, the startup capital of the enterprise will be
approximately 21,567,000 Uganda shillings of which 15 million has already been raised
by the owners through personal savings. The remaining balance of 6, 575, 000 Uganda
shillings will be got from micro-financial institutions and it will be paid within three
years of operation. The current prevailing interest rate on agricultural loans is 12% per
annum.
The already available cash shall be spent on housing, catering for transport cost of
processed products. The transactions of the investment will be by the use of cheque to
pay for the expenses mean while the delivery slips will be availed to the potential buyers
such that goods will be delivered to them.
The proforma financial statements shall include revenue costs and profit forecast for the
business. These among others will include the income statement, cash flow statement and
the balance sheet for up to three years of operation. The business solvency shall also be
computed.
XXIX. INCOME STATEMENT FOR MACKIE STORES ENTERPRISE FROM
31st DEC 2018-31st DEC 2019
ITEM 2016 2017 2018
Gross Sales 75,000,000 81,246,000 99,269,000
Returns and Allowances 10,000,000 11,500,000 12,650,000
Net Sales 65,000,000 69,746,000 88,619,000
Costs Involved
Inputs 5,297,000 5,000,000 4,800,000
Transport 8,000,000 8,000,000 8,000,000
Other Expenses 1,000,000 1,000,000 1,000,000
Total Cost of Goods Sold 14,297,000 14,000,000 14,800,000
Gross Profit 50,703,000 55,746,000 73,819,000
Operating Expenses
Salaries and Wages 10,440,000 10,440,000 10,440,000
Tools and Equipment 3,250,000 2,800,000 2,800,000
Housing 3,500,000 - -

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Interest on Loan 764,040 764,040 764,040
Advertisement 100,000 100,000 100,000
Total Operating Expenses 18,054,040 14,104,040 14,104,040
Operating Profit 32,648,960 41,641,960 59,714,960
Family Living Expenses 700,000 700,000 700,000
Other Expenses 1,000,000 1,000,000 1,000,000
Profit before Taxes 30,948,960 39,941,960 58,014,960
Taxes 1,000,000 1,000,000 1,000,000
Net Income 29,948,960 38,941,960 57,014,960
CASH FLOW BUDGET OF MACKIE STORES ENTERPRISE FOR THREE
YEARS (2017-2019)
ITEM 2016 2017 2018
Cash inflow
Cash sales 75,000,000 81,246,000 99,269,000
New capital 3,000,000 2,500,000 1,000,000
Total cash inflow 78,000,000 83,746,000 100,269,000
Cash outflow
Salaries and wages 10,440,000 10,440,000 10,440,000
Loan repayment 2,122,333 2,122,333 2,122,333
Equipment and maintenance 5,000,000 5,000,000 5,000,000
Taxes 1,000,000 1,000,000 1,000,000
Advertisement 100,000 100,000 100,000
Total cash outflow 18,662,333 18,662,333 18,662,333
Net cash flow 59,337,667 65,083,667 81,606,667
Add/Bal - 59,337,667 124,421,334
Bal c/d 59,337,667 124,421,334 206,028,001
BALANCE SHEET FOR MACKIE STORES ENTERPRISE FOR THE FIRST
THREE YEARS (JAN 2017- 31ST DEC 2019)
ITEMS 2016 2017 2018
Current Assets
Cash at hand 50,000,000 65,000,000 77,000,000
Cash at bank 25,000,000 16,246,000 22,269,000
Total Current Assets 75,000,000 81,246,000 99,269,000
Fixed Assets
Land and buildings 5,500,000 7,500,000 10,000,000
Equipment and maintenance 5,000,000 5,000,000 5,000,000
Vehicle 8,000,000 7,500,000 6,000,000
Total Fixed Assets 18,500,000 20,000,000 21,000,000
Total Assets 93,500,000 100,246,000 120,269,000
Current Liabilities
Taxes payable 1,000,000 1,000,000 1,000,000

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Advertisement 100,000 100,000 100,000
Salaries and wages 10,440,000 10,440,000 10,440,000
Total Current Liabilities 11,540,000 11,540,000 11,540,000
Long Term Liabilities
Loan 2,122,333 2,122,333 2,122,333
Depreciation 1,500,000 2,000,000 2,500,000
Total Long Term Liabilities 3,622,333 4,122,333 4,622,333
Total Liabilities 15,162,333 15,162,333 15,162,333
Net Worth 78,337,667 84,583,667 104,106,667

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FIRST YEAR’S OPERATIONAL PLAN FOR MACKIE STORES ENTERPRISE
Task Execution Period
January February March April May June July August September October
Choosing
Location and
Construction
Xxx
Hiring and
Training Admin
Staff
Xxx
Advertising Xxx Xxx Xxx Xx xx xx Xx Xxx Xxx xxx
Routine
management
operations
Xxx Xxxx Xxx Xx xx xx Xx Xxx Xxx xxx
Marketing and
selling
Xx xx xx Xx Xxx Xxx xxx
Financial
Analysis
xx

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