Driving license and avocado supplier business

Entrepreneur

About Me

I grew up raised by a single mother. Went through High school to later train as a social development worker. But due to unemployment and low self esteem for over five years I got involved in drugs. I overcame the predicament through involvement in art and hope as I was always dreaming of owning a business and I would always draw logos of outfits I wished to run. I consoled myself with my ideas
Later I was able to start a audio recording business but went under after two years of operation. I into unemployed for a year and got a job with KWS. My present business Scope Merchants was an Idea I held for three year after my attempt at a recording studio flopped.
In Naivasha where I live is known for wildlife and has some of the biggest flower and horticultural farms in the country and region.
Currently I'm not married and don't have any children, however I have plans of having a family in the near future.
I enjoy drawing what I call African fractals which I plan to get commercial with soon. I like cooking, mentorship, photography and interested in the tech sector.

My Business

I have formal employment where (I work as customer care assistant with government office. ) besides the business that I will use to pay the loan.
My business (www.scopemerchants.co.ke) started in September 2014 however I got legal registration with Government of Kenya in February 2015. I deal in supplying of Non FOOD ITEMS; disposable masks, hair nets, resealable medicine envelops, resealable polythene bags, cotton swabs/cotton buds and FOODSTUFF namely; FRUITS VEGETABLES, CEREALS, MEAT, EGGS, MILK.
The former group is used in hospitals, health centers. The government used provide them free to public hospitals but with devolution of health services it no longer issue them. So the new county governments that run the hospitals have to procure by themselves. Thats where I come in. In addition our quality is superior than our competition. Since they are consumables prospects of steady revenue is high, since the envelopes, masks and hair nets shall be needed by the market regularly.
With the later group of products I believe that i can never go wrong since food is consumed on a daily basis so demand is always there.

One of the areas of my busines( Scope merchants) is wholesale and retail of fresh fruits, vegetables, fish, chicken, Eggs and milk.
I chose to deal in this class of products because it is sustainable and ecustomers will need food daily if not weekly. This ensures cash flow and with good relations customer retention is much easier.
The various sources for the produce;
1. Farmers who grow fruits, vegetables, rear chicken and cows for meat, eggs and milk respectively. Prices are normally low, however transport costs have to be incurred since most of them are located in rural areas.
2. Markets located in rural, semi urban and urban areas also have such produce. Prices are slightly higher than the farmers. Depending on the location transport costs incurred to take goods to customers vary.

3. Brokers who operate mostly in urban areas like Nairobi, Nakuru and Kisumu. Their prices are normally higher than the two groups above. Also depending on the location transport cost can be incurred but are relatively lower.

MARKETS AND SELLING
Most of the potential customers be it institutions, organizations or individuals are mostly in urban areas I.e Nairobi, Nakuru, Naivasha and Kisumu and environs. This means I look for produce compare buying and selling prices and see where there is more returns. At the moment Nairobi and Kisumu have proved to be ideal markets.
I sell wholesale to other small traders. In addition I strategically place myself in various markets, street corners and neighborhoods to retail fruits vegetables, Fish and eggs directly to customers who buy in small quantities. Returns here are even higher.
All this is in an effort to cut a niche in a market full to profit hungry brokers who care nothing about the farmers nor the consumer. I want to create a situation where the farmer gets best price for his produce while the consumers get fresh food affordably and conveniently I a way that also allows me get returns that can sustain the business

Loan Proposal

I am in need of $190 to be used in getting a driving license and developing my capacity supplying Avocados.
But why and how?
In getting to farmers in rural or semi urban areas I use public transport buses or smaller vans popularly known as matatus. Limitations of these means include unpredictable fare prices I.e when it rain or demand increases, they charge both passenger and luggage. So So by the time you get to farmers or the market to buy the produce and go back with it to the urban areas like Nairobi and Kisumu you will either be forced to price your products high or out up with little or at times unsustainable profit margins considering also that there are other big players( brokers) who have advantage of quantity and can charge low prices.
Other times these buses are inconvenient especially if you are dealing with perishable goods you want them to get to the buyers in good time while still fresh. You have to go with their timing.
There are other transporters who specialize in luggages but then they are quite expensive for small luggages. They only become cost effective when you have large quantities to transport.
The need now arises here of reducing transport costs incurred when getting to farmers located on the farthest end who give low prices for produce.
Therefore instead of relying on public transporters I plan to rent a van then drive it on my own to where farmers or markets are located then to deliver the goods to customers.
On average to hire a pick up for one way trip journey would cost $150.
A larger truck would cost $300 for a one way trip. But then the carrier capacity is big and only ideal for large quantities.
Now a smaller van would cost $30-40 for 12 hours hire minus fuel and driver. If you employ a driver for the day that would be an extra $10-20. fuel cost would entirely been dependant on the distance.
That is why I want to enroll for a driving course that would take three weeks to once month. This course at a driving school operated by AA(Automobile Association) costs $150 for BCE class of vehicles. Upon completion I will be awarded a driving license which I will use to hire a probox van and use it to get to farmers and markets and also to deliver the fruits, vegetables, eggs and chicken to customers. I also plan to use it for car boot sale a very convenient way to retail.
A probox Van would cost me $30 to hire for a whole day and since I will be the one driving no extra cost of employing a driver. I plan to use part of my salary from formal employment to pay the loan.
The second part of this involves scaling up my chicken and fruits section of my business operations.
The indigenous breed of chicken popularly known as Kienyeji are in demand since they mostly reared free range are considered by many to be tastier compared to broilers or capons which linked to controversies like they are fattened by ARVS. Farmers in the rural who rear this local breed of chicken sell them from $2-4 to upon delivery to my customers I sell at $5- 9. At them moment I need $20 to purchase 10 -15 chickens to sell anticipating a profit or $30-50, .however I plan to buy and sell 50 chickens in next three to four weeks meaning I could take between $120-200 in profits. I plan to use the profit to partly pay for the loan and partly construct shades to start a poultry farm specifically for this breed.
The last part is about boosting my fruits section. I want to initially build a strong reputation as reliable supplier of Avocado (Hass variety which had a potential for export) and pineapple. In this respect I need $20 to sack purchase a sack of Avocados containing an average of 800 pieces. On selling assuming I'll sell at wholesale price of $0.05 per piece then that would be $40 making a profit of $20. I plan to deliver at least one sack a week. That can make me around $80 in a month. Part of this profit shall be in paying for the loan and to use same strategy in building my capacity for supply of pineapples.
With the driving license I will be able to move around more easily, efficiently and cost effectively.
Thus ensuring customers get them fresh on time and regularly. I will also be able to start my own poultry farm once I finish paying the loan. Lastly my capacity to Avocados will be enhanced in turn allowing to get into pineapples among other fruits.

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