Finance value addition for my cereals stock

Entrepreneur

About Me

I am David Ogero a Thika Businessman, a devout Christian and a family man; I have been in business for the last 9 years. I have previously dealt with the sales of phone voucher cards and farming.

Currently, I am dealing in Cereals business both wholesale and Retail. I have customers that range from individuals, hotels, and schools. I have a passion for business and would like to set up a cereal distributorship outlet in Thika town. I treat my customers with the respect and high level of honesty to ensure customers retention and satisfaction at all times.

Besides, I like helping the needy and those who are still inexperienced in business to succeed.

My Business

Having been in the cereals business for quite sometime, I am certain of making good profit from the proceeds with additional loan. Currently my monthly net profit have improved from 30,000/=($348.8) to 36,000($418.6) with additional capital that I sourced from Zidisha, I will be able to stock variety of cereals and do value addition for the products sourced from farmers. I am foreseeing my Sales turnover increasing with your partnership and I will be able to make an average profit of 50,000/= in the next 6 months, thus, approximately 60% increase. I will be able to employ more youths to help me do the sorting, packaging and distribution to my clients. I have only one employee now, but with additional capital, I am foreseeing employing two more youths.

Most of the Customers prefer my services since I do the sorting and distribution of the cereals to their establishments, which my competitors do not offer; this has lead to expansion of my target market, which I am not able to service due to limited capital. In addition, my customers pay in cash, making it easier to always have stock to supply to them.

Loan Proposal

I intend to purchase to do a value addition on the products sourced from the farmers. This will benefit farmers, my business and the retailers and consumers. I intend to produce combined enriched flour suitable for baby porridge, lactating mothers and growing kids. I have done my research and realized that most of the branded products are expensive and beyond the reach of most of the families as they are costly.
I will purchase 5 bags (a bag is 90kg at costs Kshs.2,250) of Maize at Kshs.11,250($130.8)
White Sorghum 2 bags (a bag is 90kg at costs Kshs.3,300) at 6,600($76) Bulrush Millet 90 Kg at Ksh.3,600(($41.8)) Groundnuts 90 Kg at Ksh8,800($102.3)I bag of Omena()100kg of Small Fish) at 4,500($52.3) Soya 50 Kg at 2,400($27.9) Milling, Packaging and Distribution costs 3,630($42.2)
This mixture will produce a total of 960 Kg that will be distributed with one week, have a three day break to process subsequent batch. Consequently, three times supply within a month. This will earn a revenue of 67,200($781.39) as each package of 1 kg will be sold at Ksh. 70($0.8) earning a gross profit of Ksh 25,550($297.09) and net profit of Ksh.22, 450($261), after paying the installment of Zidisha loan of Ksh.2, 900($33.72) I will still be left with a comfortable amount of 19,550($227.3) to plow back to the business. This translates to a total of Ksh 58,650($681.9). I will be able to pay the loan comfortable and earn good money.

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