Medicine envelopes and disposal masks for 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 launched my supplier business in February 2015. In July 2015 I got orders to supply medicine envelops and mask for two hospitals. The cost of envelopes at wholesale price for a pack containing 10000 units costs 60 dollars while that of disposable masks of 3000 units cost 20 dollars. upon delivery to customer the envelopes sell at a profit of 60 dollars a gain of 100% for 10000 units, while the masks fetch a profit of 7 dollars for 3000 units.

Sales has been slow because the customers I currently cater for are small hold pharmacies that buy small number of envelopes. However with the recent orders that I landed with the two hospitals means I have to move in fast and capitalize on the high number of envelopes and masks they require. That means I cannot afford to lay but to ensure that I meet demands of the order in quantity and in time.

The two hospitals need 20,000 units of envelopes and 4500 units of mask by end of August. I already have 70 dollars to purchase 10000 units of envelopes and 1500 units of mask.
I therefore need another 70 dollar to purchase 10000 units of envelopes and 20 dollars to get 3000 units of masks.

Fulfill this order will open new avenues in terms of customer base as well as revenue base. This in turn will give more money for business growth since the returns for big orders is high. At the end of the transaction means I will have 190 dollars in profit and with around 100 dollars used in paying the loan I will have 90 dollars in reserve.

I'm anticipating that they might need replenishing of their stock somewhere mid of September 2015 therefore with little assistance I will later be able to meet their supplies needs might easier.

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