BATC BIZPLAN

8/2/2019 BATC BIZPLAN

1/27

1

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


2/27

2

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


3/27

3

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


4/27

4

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.


5/27

5

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.


6/27

6

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.


7/27

7

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.


8/27

8

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.


9/27

9

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


10/27

10

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.


11/27

11

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


12/27

12

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


13/27

13

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.


14/27

14

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.


15/27

15

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


16/27

16

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


17/27

17

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


18/27

18

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.


19/27

19

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


20/27

20

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


21/27

21

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


22/27

22

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


23/27

23

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


24/27

24

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.


25/27

25

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.aspx


26/27

26

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.html


27/27

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

Documents

BATC BIZPLAN