NAMAVE WINES AND JUICE (NAWI&J) SMART FIRMP. O. BOX 5121,

MUKONOTel. (256) 0772584568

Email: nawij@yahoo.co.uk

Website: www.nawij.ug.org

Co owners: watuleke Joseph and Shangi Emmanuel

Description of the Business:This business will produce and supply wines and juice produced directly from local fruits. Tenders shall be

secured from different supermarkets, hotels and Bars and other medium and wholesalers. The different

types of wines to be produced shall include: Alter wine, V&A, Carlsberg, while the juice shall be include;

quencher, straw berry, Splash among others. Tenders will be held for one year and will specify the specific

products and scheduling for supply of the products.

Financing:Initial financing required for the start of the business is $ 97,297. The owners’ capital will amount to $ 64,864.

The initial financing requested is $32432 loan to be paid off over 5 ears. This debt will cover 10 computers, 2

mobile vans, 1 standby generator and 1 production space.

This report is confidential and is the property of the co-owners listed above. It is intended only for use by the

persons to whom is transmitted, and any reproduction or divulgence of any of its contents without the prior

written consent of the company is prohibited.

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EXECUTIVE SUMMARY

Namave Wines and Juice (NAWI&J) Smart Firm is a Private Company located in Namave industrial area,

Mukono Town Council in Uganda. It was developed by Joseph Watuleke and his Colleague Shangi

Emmanuel in 2008 and registered by the registrar of Companies in 2009.

The co-owners of the company had interest in adding value to agricultural products especially fruits which

was fetching low prices at the time. The company will produce wines that shall include, Alter wine, V&A,

Carlsberg, while the juice that shall be produced will include; quencher, straw berry, Splash among others

The company has great opportunities for growth due to growing demand for Wine and Juice due to caused

by increase in population within the target market. Technological development and innovations is another

opportunity that the new venture looks at. The free inter regional trade across East African borders offers

opportunity for NAWI&J firm in terms of market.

NAWI&J Smart Firm will develop high quality products and services like standardized and quality Wine and

juice drinks to compete favorably in the market. The target market for the new venture, products and

services will grow due to increased population in this area, due to high demand for wine drinks like churches,

local community, the surrounding centers and town, schools and travelers and the establishment of the East

African Common Market. This NAWI&J Smart Firm will carry out intensive advertisement for its products

using different Medias like radio and TV, putting up posters and burners and also designing of their vehicles,

giving free samples and word of mouth publicity. Word of mouth and giving free samples is not a common

marketing strategy among existing similar entrepreneurs and his will highly promote the company.

NAWI&J Smart Firm forecasts high financial returns due to its unique marketing strategy and high quality

products. It expects a return of 10,546,536,000 in the first year, about 20,240,640,000 in the second year

and 22,915,200,000. The Company will break even in the first year. The initial funding that shall be required

to produce the above financial results is 180,000,000 ($ 97,297), where $ 64,864 will comprise the co-

owner’s capital share and $32432 as a loan from Stanbic Bank to be paid off over 5 years.

The potential competitors of NAWI&J Smart Firm include Pure Heaven wine, Lumbrusel wine and Elgon

parkers and Nile Breweries. However, with the high quality products produced and effective marketing

strategy, NAWI&J Smart Firm will dominant the market.

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Table of ContentsExecutive summary..............................................................................................................................................................2Chapter one...........................................................................................................................................................................5Business description.............................................................................................................................................................5

1.0 Company background.........................................................................................................................................51.1 General description of venture............................................................................................................................51.2 Project promoters................................................................................................................................................51.3 Location analysis................................................................................................................................................51.4 The management.................................................................................................................................................61.5 Conclusion..........................................................................................................................................................61.6 NAWI&J smart firm’s vision...................................................................................................................................6

1.6.1 nAWI&J smart firm’s mission........................................................................................................................61.6.2 Corporate goals....................................................................................................................................................6

1.7 Goals:..................................................................................................................................................................61.7.1 Short term objectives:..........................................................................................................................................61.7.2 medium term objectives......................................................................................................................................71.7.3 Long term objectives...........................................................................................................................................7

1.8. Composition of the project capital............................................................................................................................7Chapter two:.........................................................................................................................................................................8Business environment analysis.............................................................................................................................................8

2.1 Internal strength..............................................................................................................................................82.2 Internal weakness...............................................................................................................................................82.3 External opportunities:...............................................................................................................................................82.4 External threats...........................................................................................................................................................82.1 PEST analysis.....................................................................................................................................................9

2.3.1 Political/ legal factors..........................................................................................................................................92.3.2 Economic factors.................................................................................................................................................9

Social factors......................................................................................................................................................................9Technological factors........................................................................................................................................................9

2.4 Market analysis.................................................................................................................................................102.5 Competitive analysis.........................................................................................................................................102.6 Bargaining power of the buyers........................................................................................................................102.7 Bargaining power of suppliers.................................................................................................................................10

Chapter three:.....................................................................................................................................................................11Market strategy...................................................................................................................................................................11

3.1 Products....................................................................................................................................................................113.2 Pricing......................................................................................................................................................................113.3 Promotion.................................................................................................................................................................113.4 Packaging.........................................................................................................................................................113.5 People................................................................................................................................................................113.6 Physical evidence.............................................................................................................................................123.7 Distribution......................................................................................................................................................12

Chapter four:.......................................................................................................................................................................14Technical operation plan....................................................................................................................................................14

4.1 Operation plan...................................................................................................................................................144.1.1 Business facilities.........................................................................................................................................14

4.2 Lay out of facilities...................................................................................................................................................144.2.1 Production rooms.........................................................................................................................................144.2.1 Electricity tubes............................................................................................................................................144.2.1 Stores............................................................................................................................................................14

Chapter five:.......................................................................................................................................................................155.1 Human resource strategy......................................................................................................................................15

5.2 Organization structure.......................................................................................................................................165.3 NAWI&j organogram......................................................................................................................................165.4 Recruitment and training..........................................................................................................................................16

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5.4.1 Termination policy............................................................................................................................................16Chapter six:.........................................................................................................................................................................176.1 Sources of finances............................................................................................................................................17

6.2 Investment capital.............................................................................................................................................176.3 Start-up capital expenses for 2009, 2010, 2011................................................................................................18

Chapter seven:....................................................................................................................................................................20Monitoring and evaluation.................................................................................................................................................20

7.1 Monitoring........................................................................................................................................................207.2 Evaluation.........................................................................................................................................................207.3 Recommendation.............................................................................................................................................20

Appendix i.........................................................................................................................................................................22Referees............................................................................................................................................................................23

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CHAPTER ONEBUSINESS DESCRIPTION

1.0 COMPANY BACKGROUND

The idea of Namavi Wine and Juice (NAWI&J) Smart Firm was born in the mind of one, Joseph Watuleke in

2006 while she was working as administrator in Collins Hotel in Mukono. The idea was driven by the then

ever decreasing supplies of juice and wine even at times when there was high demand for the products, and;

the general shortage of wine and juice in most of the neighboring towns. The idea of producing wine and

juice was shared between his two close workmates Bob and Mary, who did not seem to see the possibility of

the business taking off.

Later, after Joseph leaving Collins Hotel and Joined the NGO World 2007, she shared the Idea with his wife

and young sister who was a family member. Looking at the potentials in the area like fertile soils, large scale

fruit producers like at Bugerere, the Green Orchards farm located at Kayunga and other fruit producers in

Parts of Mbale, Mukono, Mayuge, Masaka Kibaale and Hoima, the Idea was bought and in June 2008

NAWI&J company was established. The company was then registered by the registrar of Companies as a

private company limited by guarantee with share capital in February 2009.

A market survey was carried out between January and February 2009 in the Mukono, Kampala, Jinja, Mbale

and other neighbouring towns by a team of 5 people led by Joseph for market piloting. During the process,

publicity about the company existence, its products and services was made. Samples of wine and juice

produced were distributed in leading Hotels and supermarkets in the named areas for customer feedback.

80% of the feedback received commended the company of the high quality products the customers had

been waiting for, and assured the company of their market.

1.1 GENERAL DESCRIPTION OF VENTURENAWI&J Smart firm will deal in the production of wines and juice, sale of the products, and purchase of the

materials to be used in the process. The wine that shall be produced includes, Alter wine, V&A, Carlsberg,

while the juice shall be; quencher, straw berry, Splash, Cheers among others. This project intends to cater

for a wide range of customers especially the neighboring towns like Jinja, Mayuge, Kampala, Iganga,

Kayunga and others

1.2 PROJECT PROMOTERSThe project is sponsored by the founders with capital contribution of Shilling 120,000,000/=. Joseph will

contribute 44,000,000 and the other Co – Directors Emma and Ms. Natimbwa will contribute 38,000,000

each, and the loan acquired from Stanbic bank worth Shillings 60,000,000/=. This will amount to Shillings

180,000,000 as startup capital.

1.3 LOCATION ANALYSISElgon Wines and Juice Smart Firm is located at Industrial Area in Mbale town, at the out skirt of Mbale

district on along Tiriny-Mbale high way. This is strategically located that it has access to a wider range of

potential customers who pass through this area.

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1.4 THE MANAGEMENTElgon Wines and juice (NAWI&C) Smart Firm will have operation manager, Human Resource Manager,

secretary, production operators, sales manager, sales men, store keeper, promoters, and cleaners. This firm

will create jobs for a large number of people especially the local members, which shall later increase

people’s income and hence high gross national income to the government through taxes.

1.5 CONCLUSIONThe project target a bigger market which the promoters analyzed very well and found it practical since other

firms are said to be weak. Hence the project has been evaluated and considered commercially viable.

1.6 NAWI&J SMART FIRM’S VISION.To be the leading producer and distributor of wines and juice around the Central and Eastern Uganda.

1.6.1 NAWI&J SMART FIRM’S MISSION.To provide efficient and quality wine and juice services to as many people as economically possible in a

well organized environment using trained staff with skill in business management to target all kinds of

customers.

1.6.2 CORPORATE GOALS To provide modern and quality services with technical skills using qualified and experienced

personnel.

To have established a business name to clients hence developing trust from the public.

To have established the firm with at least 10% share by 2012.

To provide training centers and also provide consultancy know how implementing business of

economic welfare and uplift of the NAWI&J Smart firm.

To have set up at least small scale firms in the neighboring centers by 2012.

1.7 GOALS:Providing a variety of good wine and juice services throughout the country.

1.7.1 SHORT TERM OBJECTIVES: To have started business by 1st /11/2010.

To minimize production costs by 6%.

To sell 200,000 products per day by 13th/12/2010.

To acquire more one automatic generator by 31st/12/2010, so as to improve on the production by

8%.

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1.7.2 MEDIUM TERM OBJECTIVES To ensure proper management of cash flow and be able to meet all short term expenses.

To acquire two sieving machines within the first five years of operation (2014).

1.7.3 LONG TERM OBJECTIVES To acquire four mobile vans to easy transportation and delivery of goods to various locations by

2016.

To extend our services by buying more pieces of land within and outside Mukono Town Council so

as to establish small scale firms.

1.8. COMPOSITION OF THE PROJECT CAPITALInvestors AmountJOSEPH WATULEKE 44,000,000 /=

SHANGI EMMANUEL 38,000,000 /=

MS. NATIMBWA, J. 38,000,000 /=

STANIBIC BANK 60,000,000 /=

TOTAL 180,000,000 /=

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CHAPTER TWO:BUSINESS ENVIRONMENT ANALYSIS

2.1 INTERNAL STRENGTH There is capacity to raise capital through owner’s equity.

Ability to be risk – takers by raking up the risk.

There is an increased demand for wine and juicy drinks especially around the surrounding centers,

Hotels and Supermarkets.

We have a well equipped managerial team of managing director, production managers, promotions

officer, sales men, secretaries among others who are responsible for organizational success and

management and share holders to support in management and organization.

The business is located in a strategic place to target all sorts of people especially Mukono town

area, and the students who come for their field work.

The founders have entrepreneurial skills which will help them in management of the venture.

There is exclusive customer care, trained personnel workforce which will help attract and retain

customers.

Natural availability of raw materials that is being used in production of the products. This includes

passion fruits and pine apples that are being harvested by the local people especially from the

places like Bugerere and Mayuge.

There is wide area of operation within Uganda borders according to the Article of Memorandum of

Association.

2.2 INTERNAL WEAKNESS There is an increase in volume of goods to be stocked.

High costs of setting up standard firm like NAWI&J Company.

2.3 EXTERNAL OPPORTUNITIES: A growing demand for Wine and Juice due to increase in population within the target market.

Technological development and innovations is another external opportunity that the new venture

looks at.

The free inter regional trade across East African borders offers opportunity for NAWI&J firm in terms

of market because of its proximity to the High way to Kenyan border

2.4 EXTERNAL THREATS There is a threat of introducing new technical services in future.

There is competition resulting from existing firms like Lumberuse and Pure Heaven industries, Nile

Breweries, Drink and Drop Co and Elgon Parkers.

There are some wine drinks that the government has hindered citizens from consuming which we

also produce to meet customer satisfaction.

The government of Uganda could introduce some wine and juice firms around the country with the

idea of providing the same services like it set up Namanve, Uganda Breweries firms.

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Due to the increasing numbers in the population around the country, more people are interested in

opening up new firms of the same venture.

2.1 PEST ANALYSIS

2.3.1 POLITICAL/ LEGAL FACTORS It’s going to be a limited company that is to say liability will be limited to only the assets on

capital contributed by the members excluding their personal property.

There is high security around provided by the LC’s and the Laws governing the area.

The firm is registered by registrar of companies. This has enabled the firm to acquire the

operating license.

There is high sale’s protection by the government especially at price controls as compared to

consumer protection.

2.3.2 ECONOMIC FACTORS EW&J Smart Firm will provide employment to large number of people both skilled and non-skilled.

The tax exemption or tax holiday provided on our business will help us establish our competitive

edges in the market and enable us establish our own pricing policy.

The economy is experiencing stability against the dollar at 1850 as compared to earlier years

according to the Forex rates.

The economy is growing from predominantly agriculture to industrial and commercial. There has

been restructuring of the economy like decentralization.

The employment opportunities will increase steadily with increase in operation over six months

especially the nearby neighbors such as the hotels, restraints, supermarkets, health centers, among

others.

This business will contribute directly towards the Gross domestic product (GDP) of the country by

increasing the number of economic activities in the country.

There are high interest rates charged on the loans acquired by 25%.

SOCIAL FACTORS NAWI&J Smart Firm provides services to all religions say; the Protestants, Catholics, or Moslems.

There is no discrimination either by sex, race, tribe or age.

Because of increased population NAWI&J Smart Firm is going to provide a variety of services for

example delivery services to our clients who buy in large amounts, provide educational services to

the employees through trainings and workshops i.e. Workers Education.

TECHNOLOGICAL FACTORS This firm is going to employ a big number if skilled workers who have technical knowledge in

different fields like; plant mechanics, vehicle mechanics, and computer literates so as to withstand

the competition from the already existing firms like Lumbrusel wine industry, Nile Breweries, Elgon

parkers among others.

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2.4 MARKET ANALYSISNAWI&J Smart Firm will basically deal with production of wine and juice, sale of wine and juice and also

purchase of raw materials from the local people. The wines include V&A Alter wine, Carlsberg and others.

While for the juice, we shall offer quenchers, straw berry.

2.5 COMPETITIVE ANALYSISThe main competitors of NAWI&J Smart Firm are the Nile Breweries because it also deals with the

production of wine, internationally reorganized industries producing wine like Pure heaven wine, Lumbrusel

wine and Elgon parkers they specifically produce juice among others.

There are many competitors around locality with strong and weak financial base.

There is also a threat of other new entrants in the business because of free entry and exit offered by the

government. However, much as there is free entry and exit, there are limiting factors that render a number of

entrants such as inadequate capital and poor hygiene.

2.6 BARGAINING POWER OF THE BUYERSIn NAWI&J Smart Firm the customers will mainly be local people, the surrounding towns like Jinja, Mayuge,

Iganga, Kampala, Kayunga, Hotels, Bars and Supermarkets in these districts and also students from the

country on field study. Since the products that we offer are on high demand by most the population, we shall

face less pressure in the bargaining from within our customers. There will be provision for those customers

to buy in small quantities since it looks difficult for them to come together and form a large group so as to

have high bargaining power an association.

2.7 BARGAINING POWER OF SUPPLIERS The main suppliers of raw materials for the production of the products of this venture will be the whole

sellers from the local areas like Bugerere providing passion fruits, Green Orchards farm will provide us with

pineapples and oranges. These will have less bargaining power so as to enable them to acquire prominent

customers to buy their products.

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CHAPTER THREE:MARKET STRATEGY

3.1 PRODUCTSNAWI&J Smart Firm intends to develop high quality products and services like standardized and quality

Wine and juice drinks. The target market for the new venture, products and services will grow due to

increased population in this area, due to high demand for wine drinks like churches, local community, the

surrounding centers, schools and travelers and the establishment of the East African Common Market.

3.2 PRICINGNAWI&J Smart Firm intends to fix flexible pricing strategy for its products depending on the fluctuations of

prices. So the prices to be charged will depend on the prices from wholesalers and suppliers of the raw

materials. If their prices are high, then the selling prices will also be high. Besides the prices will be

determined by the demand and supply as scheduled below:

Product and services Unit cost

Consultation vary

Motor van vary

Computers vary

Plant and machinery Vary

Generator vary

3.3 PROMOTIONThis NAWI&J Smart Firm will advertise its products through radio and TV advertisements, putting up posters,

hanging of burners and also designing of their vehicles. There shall also be use of persuasive words like “we

offer smart quality services”, “we are better than none”. These will be highly promoted during the launching

of the business venture.

NAWI&J Smart Firm will also promote its products through sales promotion; this will be through giving out

free samples, like caps, T-shirts and also providing at reduced prices. Brochures will also be printed and

distributed

3.4 PACKAGINGThis firm will provide packaging facilities since these are liquid products. The packaging will be in bottles of

different makings and sizes in mil-liters for the case of wines. Juice will be in jericans of different liters

ranging from 1 liter up to 5 liters.

The firm will also offer free boxes, paper bags, and foil papers especially to the clients who buy in large

amounts. On top of these boxes or containers there will be description and date of expiry to guide the clients.

3.5 PEOPLENAWI&J Smart Firm will provide uniforms for staff and non-staff, identity cards to its customers for easy

identification. The non staff employees shall dress up green overalls with white gumboots, while the staff

employees shall dress on striped blue shirts with yellow identity cards. The firm will take the roll of training its

employees for better performance and reduction in the production costs.

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3.6 PHYSICAL EVIDENCE NAWI&J Smart Firm will provide the following to its esteem customers for more evidence that receipts will be

offered to provide the following to its esteem customers for more evidence. The receipts will be offered for

the purchases and sales made and also open up e-mail addresses for easy contact.

3.7 DISTRIBUTIONThe firm shall distribute its services by the help of the mobile service vans that will be available to different

locations. Customers who will buy in large amounts shall be provided with delivery services to their locations.

To easy distribution the firm shall also open up small branches in different locations.

NAWI&J SALES PROJECTIONS Year 2009

Items Cost per item Daily

Weekly Monthly (000)

Yearly (000)

V&A 100crates @120,000/=

each

13,800,000 96,600,000 386,400 4,536,800

Bella wine 80crates @110,000/=

each

12,100,000 84,700,000 338,800 4,065,600

Walker wine 110crates @105,000/=

each

11,550,000 80,850,000 323,400 3,880,800

Straw berry juice (black

and orange)

250liters @ 2550/= each 637,500 4,462,500 17,850 214,200

Sun berry (pineapple) 240 liters @ 2500/= each 600,000 4,200,000 16,800 201,600

Cheers 240 liters @ 2400/= each 576,000 4,032,000 112,896 1,354,752

Quencher 240 liters @ 2400/= each 576,000 4,032,000 112,896 1,354,752

Year 2010Items Cost per item Daily

(000)Weekly (000)

Monthly (000)

Yearly (000)

V&A 120crates @ 180,000/=

each

21,600 151,200 604,800 7,257,600

Bella wine 100crates @ 120,000/=

each

12,000 84,000 336,000 4,032,000

Walker win 100crates@ 200,000/=

each

12,000 84,000 336,000 4,032,000

Straw berry juice (black

and orange)

260 liters @ 1,500/= each 390 2,730 10,920 131,040

Sunsipi juice (mango, and

passion)

260liters @ 1,500/= each 375 2,625 10,500 126,000

Sun berry (pineapple) 250 liters @ 1,000/= each 5,000 35,000 140,000 1,680

Cheers 100 liters @ 1,000/= each 250 1,750 7,000 84,000

Quencher 250 liters @ 1,000/= each 625 4,375 17,500 210,000

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Year 2011Items Cost per item Daily

(000)Weekly (000)

Monthly (000)

Yearly (000)

V&A 142crates @ 180,000/= each 25,560 178,920 715,680 8,588,160

Bella wine 132crates @ 120,000/= each 15840 110,88 443,520 5,322,240Walker win 122crates @ 200,000/= each 24400 170,80 683,200 8,198,400Straw berry juice (black and orange)

300 liters @ 1540/= each liter.

450 3,150 12,600 151,200

Sunsipi juice (mango, and passion)

300liters @ 1500/= each liter.

450 3,150 12,600 151,200

Sun berry (pineapple)

250liters @ 1500/= each liter.

375 2,625 10,500 126,000

Cheers 150liters @ 1500/= each liter.

375 2,625 10,500 126,000

Quencher 300liters @ 1500/= each liter.

750 5,250 21,000 252,000

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CHAPTER FOUR:TECHNICAL OPERATION PLAN

4.1 OPERATION PLANNAWI&J Smart Firm is going to operate in a workplace which is going to be rented. It will

need skilled manpower to operate the computers, plant and machines and those who will

be able to rectify any mechanical breakdown. This will also help to avoid blowing up of

machines.

4.1.1 Business facilitiesComputers (10) worth 350,000/= each for storing and typing business records, 5 mobile

vans for delivery services within and outside the firm each at 15,000,000/=, a generator

will be needed for curbing down problems of power shortage at 3,000,000/=

4.2 LAY OUT OF FACILITIES

4.2.1 Production RoomsWe shall divide the rooms according to the stages of production and the capacity they

hold. This will cost us shillings 8,000,000 when fully equipped and ready for use.4.2.1 Electricity Tubes

It shall be installed for lighting the rooms. Each room is said to have at least 8 tubes inside

and outside to provide security. Theses will cost shillings 20,000/= each (84 watts bulbs).4.2.1 Stores

Storage capacity shall provide about 40ft by 40ft. It’s where all raw materials shall be

stored and recorded before being issued for production. At the same time, the processed

products shall need a special room 40ft by 40ft for recording before it is issued out to

customers. FIFO method shall be preferably used. This is where the first stored products

shall be issued out first before those which came in later to avoid expiry of our products.

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CHAPTER FIVE:5.1 HUMAN RESOURCE STRATEGY

NAWI&J Smart Firm shall be guided by the following directions:

JOB TITLE & SALARY DESCRIPTION QUALIFICATION

Production Manager (700,000/=) In charge of strategic decisions Degree in business

management

Marketing Manager

(700,000/=)

Securing tenders and Marketing produce Degree in Economics or

marketing

Administrative Manager

(700,000/=)

General Administration of the Company

including strategic planning and resource

mobilization and allocation

Degree Public Administration

and a post graduate in Human

Resource management

Sales officer

(500,000)

In charge of sales and purchases Degree in procurement

Quality Control Officer

(500,000/=)

In charge quality control, blending and

packaging

Degree in Business

Management

Promotion and advertising

(500,000/=) with commission

In charge of marketing, promotion and

advertising of products

Degree in business

Administration with bias in

marketing

Finance and Accounting

(400,000/=)

In charge of finances and budgeting and

accounting

Diploma in Accounting and

Finance with ACCA level 2

Purchasing (400,000/=) with

commission

Purchases and procurement Diploma in Procurement and

Logistic

Drivers (200,000/=) In charge of transport services Holds a valid driving permit

with at least UCE certificate

Security (150,000/=) In charge of security of the company

property and staff

UCE certificate and certificate

in security training from any

authorized private security

agency

The above criteria will be followed in acquiring employees unless otherwise

required.

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5.2 ORGANIZATION STRUCTURENAWI&J shall have a flat organization structure which will be responsible for the overall

running of the business activities respectively. The power shall flow as the structure is

designed. This shall be exercised as an insurance control

5.3 NAWI&J ORGANOGRAM

5.4 RECRUITMENT AND TRAININGNAWI&J Smart Firm shall have on job training after acquiring employees. The Human

Resource Manager shall be in charge of recruiting at all levels of expansion whenever the

employee is needed. The business will keep training its employees in order to improve the

skills of the workers to keep up with advancements.5.4.1 Termination policy.

An employee who willingly decides to leave the enterprise shall inform the director before

they leave. However, an incompetent employee might be forced to leave by the company

management.

5.5 MOTIVATION TECHNIQUES Proper payment of employees

On job training

Yearly get together parties

Breakfast and logistics

Friendly communication and free flow of information from top to bottom and back.

Providing a study leave, sick leave and also paying medical services for employees.

Sending encouraging words to the employees such as “good work done”

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Sales Promotion Advertising

Production ManagerPM

Administrative Manager

Quality Control

Marketing Manger

Board of Directors

Assembly Sales Promotion Advertising

Production ManagerPM

Administrative Manager

Quality Control

Marketing Manger

Board of Directors

AssemblyFinance

Accounting Purchasing Sales Promotion Advertising

Production ManagerPM

Administrative Manager

Quality Control

Marketing Manger

Board of Directors

Assembly

CHAPTER SIX:6.1 SOURCES OF FINANCES

For NAWI&J Smart Firm to compete successfully, it will require a strong financial

base composed of owner’s equity worth 120,000,000/= shillings and a loan

acquired from Stanbic Bank which will amount to 60,000,000/= shillings as startup

capital.

6.2 INVESTMENT CAPITAL

Equipment Unit Price per unit (000) shillings

Total (000) shillings

Plant and equipment 6 ---------- 3,000

Buildings 20 rooms 50 per room 1,000

Motor vehicles 6 3000 18,000

Computer 30 100 3,000

Containers (bottles) 3,000 50 600

Jerricans 300 15 3,500

Uniforms 70 1,400

Food color 70 kg 300 2,100

Gum boots 70 pairs 4 280

Raw materials 30 tones 65 1,850

Generator 2 3,000 6,000

TOTAL 40730

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6.3 START-UP CAPITAL EXPENSES FOR 2009, 2010, 2011

Expenses Amount (000)Legal fees 13,000

Insurance 25,000

Water 21,000

Rent 15,000

Furniture 29,000

Electricity 11,300

Adverts 29,800

Public pay phone 29,000

Sub total 173,100Owner’s equity 159,000

Loan acquired 14,100

Total 173,100

The business will require a total of 118,000,000/= shillings to commence its operations at

the site. Therefore to obtain this capital, it shall be from creditor’s contributions in the ratio

of 1:1:1:1 respectively as shown in the total investment schedule of NAWI&J Smart Firm

limited. The credit will be a loan payable in quarterly installment at interest rate of the first

five year, so as to enable NAWI&J to have its financial capacity to diversify in the country

according to the surrounding regions. This will enable the company compete favorably with

her competitors in the struggle for an increased market share and resource availability to

be secured in a long run.

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NAWI&J SMART FIRM BALANCE SHEET AS AT THE PERIOD 31st/11/ 2009

Assets (000) (000) (000)Current assets

Inventory

Cash at hand 80,000

Cash at bank 73,500 153,500

Non current assets

land 3,000

Motor van 3,000 6,000 159,500

Current liabilities

Creditors 10,000

Noncurrent liabilities

Working capital 143,500

Owners equity 6,000

Total owners equity 159,500

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CHAPTER SEVEN:

MONITORING AND EVALUATION

7.1 MONITORINGPerformance will be used to ensure the progress of the project. The periodic participatory

monitoring will be used to monitor the workers or the business and it’s done at the end of

each month.

7.2 EVALUATION It will look at the goals and objectives, intended strategies and targets of the project, its

impact and monitoring data collected through the year. The project has acquired a

memorandum of Association and Articles of Association in order to operate. It has got a

certificate of trading in order to operate and fully registered by the registrar of Companies.

7.3 RECOMMENDATIONNAWI&J Smart Firm will issue dividends at the end of the first five years. The dividends

are to be retained and ploughed back into the business for other purposes, such as

expansion of the newly established branches.

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APPENDICES

21

Appendix i

NAWI&J SMART FIRM,

P. O. Box 333, Mukono,

Tel: 0772584568

10TH February 2009.

THE LOAN MANAGER,STANIBIC BANK,P.O.BOX 9,MUKONO.

Dear Sir/ Madam,

RE: APPLICATION FOR A LOAN WORTH 60,000,000/=I hereby kindly submit in my application on behalf of Namanve Wines and Juice (NAWI&J)

Smart Firm as per the reference above. NAWI&J Smart firm is a private company located

in Namanve industrial area Mukono. It is registered with the registrar of Companies. The

purpose of this application is to obtain a loan worth sixty million shillings only

(60,000,000/=) from your bank to contribute to the owners’ equity required to successfully

operate the firm to be serviced off in the period of 5 years.

NAWI&J Firm will abide by the terms and conditions of the loan.

I hope my application will be accorded a positive response.

Attached are the relevant documents of the company.

Yours,

……………………………………….

Joseph Watuleke

Managing DirectorNamanve Wines and Juice Smart Firm

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REFEREESMr. Mafabi JustineManaging Director

Cooper Uganda Ltd,

P. O. Box 2330,

Kampala

Mob. 0414556247

Ms. Nakibuka HellenProject Coordinator

Care Uganda

P. O. Box, 4414,

Kampala.

Mob. 04143773489

Mr. Henry WatiExecutive Director,

USAID Kampala,

P. O. Box, 2443,

Kampala.

Mob. 0339246732

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Appendix ii

REFERENCES

Robert, D. Hisrich and Michael, P. Peters (2002). Entrepreneurship. Fifth Edition. McGraw – Hill Companies, Inc. New York

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