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BUSINESS PLAN

P.O BOX 3717 20100


NAKURU
PHONE: 0718964870
E-MAIL: ve!"!!#88$%&'(!!."!)
NAME: *ERONI+A N MU,A-HA
SUPER*ISOR: MISS E*ERL.NE
PRESEN-E/ -O: -HE KEN.A NA-IONAL EXAMINA-IONAL +OUN+IL
INPAR-IAL 0UL0ILLMEN- 0OR -HE A 1AR/ O0
+ER-I0I+A-E IN BUSINESS MANA,EMEN-
+EN-ER: RE,ION ,ROUPS IN-ERNA-IONAL +OLLE,E
SERIES NO*EMBER 2013
1
/E+LARA-ION
I declare that this is my original work and has not been submitted in any college in an award for
certificate/diploma or otherwise. Neither can it be found in textbooks, magazines or any other
articles
NAME: *ERONI+A N MU,A-HA
SI,N:
The business has been submitted to Kenya National xamination !ouncil with the appro"al of
my super"isor
SUPER*ISOR:
SI,N: 2222222222222222222
/A-E: 222222222222222222
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/E/I+A-ION
I would like to dedicate this pro#ect to the $oram%s family for their financial support and
encouragement during this pro#ect. They ga"e me all I needed to complete my pro#ect.
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A+KNO1LE/,MEN-
I would like to thank my brothers, friends all the class of certificate in &usiness 'anagement
No"ember ()*+ for the encouragement and the peace of mind they ga"e me all through.
I will also like to thank my super"isor 'iss "erlyne for the teachings, encouragement and more
so the time she spent guiding me on this work hence enabling me to finish it successfully. ,od
bless you all.
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-ABLE O0 +ON-EN-S
Contents
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+HAP-ER ONE
1.0 EXE+U-I*E SUMMAR.
1.1 BUSINESS /ES+RIP-ION
The proposed business will be a ser"ices industry and will be aside type of business that will deal
with dress making of the highest -uantity.
The name of the proposed business will be. smart looks enterprise located at /anet center in
Nakuru !ounty. Its address will be01
SMAR-LOOKS -AILOR. AN/ OU-0I--ERS EN-EPRISE
P.O BOX 3717 20100 3
NAKURU
PHONE: 0718964870
The business will be owned by 2eronica 'ugatha who will contribute to the capital intended to
run the proposed business successfully.
1.2 MARKE-IN, PLAN
The proposed business will ha"e customers from its surrounding including orders from the
surrounding schools and also the community at large
3mart looks tailor will ha"e se"eral competitors including "ision tailor and /anet tailor
The business intends to enter into the market through ad"ertisement and placing of posters in all
around.
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1.3 OR,ANISA-IONAL AN/ MANA,EMEN- PLAN
The proposed business will be managed and organized by the owner 2eronica 'ugatha . It will
employ ten employees including, a manager, sales and marketing officer, designer, tailors, a
watchman and a dri"er. The salary will start at Ksh. *), ))) per month then an increment as time
goes by.
1.4 PRO/U+-ION AN/ OR,ANISA-IONAL PLAN
The proposed business is to run on the owner premises and not on a rental premise hence not
increasing much costs on rent payment.
The business will be intended to pay only taxes and license fee.
1.$ 0INAN+IAL PLAN
The proposed business will begin with a capital of 3h. 4)), ))) of which 3h. *)), ))) will be
contributed from friends, 3h. *5), ))) from family 3h. +)), ))) from owner contribution then
the remaining 3h. (5), ))) will be at bank loan from Kenya commercial &ank which will be
paid back in installment under a bank interest of *(6 per annum.
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+HAP-ER -1O
2.0. IN-RO/U+-ION
This chapter entails the business name and logo and the business location
2.1 BUSINESS NAME
The business name which was ac-uired through a market research and the demand in the
en"ironment hence will operate under the following name0
SMAR- LOOKS -AILOR. AN/ OU-I--ERS EN-ERPRISE
P.O BOX 3717-20100
NAKURU
PHONE: 0718964870
2.0 BUSINESS LO+A-ION AN/ A//RESS
The business will be located at Nakuru !ounty,/anet trading centers along Ndundori 7,ilgil
8oad, opposite /anetmatt supermarket. It will be on the owners form. The area is well populated
with a good number of potential outcomes. The area is well secured since it%s close to the police
station and there exists a good infrastructure, enough water and there is electricity which will be
much essential for the running of the business. The materials used will also be ac-uired easily as
they are a"ailable
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A SKE-+H MAP O0 -HE BUSINESS 1HI+H 1ILL BE LO+A-E/ A- LANE-
+EN-ER.
T9 ,I/,I/
3mart look tailor
/anet supermarket
:ost office
T9 N;<N;98I
2.3 O1NERS PRO0ILE
The owner of the proposed business will be 289NI!= '<,=T>=. 3he did her primary le"el
exams at =ll 3aints and later mo"ed to Nai"asha 'ixed for her secondary education and she is
currently a !ertificate student in &usiness 'anagement at the 8egion ,roup International
!ollege. 3he is a twenty two years old girl and recently at /angalanga as her residential area.
2.4 0ORM O0 O1NERSHIP
The business will be a side type of business owned by 2eronica 'ugatha, certificate student in
&usiness 'anagement in 8egions ,roup International !ollege. The skills and knowledge
ac-uired during the training will allow the proper running of the business. The business will be
ad"antageous as01
9
;ecision making will be easy
?ill be easy to manage
There will be no leakage of the business secrets
=ll the profits will be en#oyed only by the owner
It will be easy to start because of its re-uirements
2.$ BUSINESS PRO/U+-
The business will deal with dress making of all "arieties that%s different materials and also "aried
colour with appropriate size, shape and of high -uality.
The products that will be produced will be economical and durable thus will enable the
customers to long for the products. ;ress making will be of high -uality.
2.8 IN/US-R.
The business will be a ser"ice industry. It will be a small firm of about ten employees. The
products and ser"ices pro"ided will satisfy the market demand. The technology that is intended
to be used in the industry is expected to bring about growth and stability to the business which
will in turn impro"e the product inno"ation and this o"ercoming the weakness f the competitors
in the market.
2.7 4US-I0I+A-ION O0 -HE OPPOR-UNI-.
The prime ob#ecti"es of starting the business will be01
M'5et1 market for the product produced already exists in "arious schools, factories, colleges
and some indi"idual customers hence a good indication of already market
/e)'67 7 There is a high demand of cloths as it%s a basic uniform for their pupils as well as the
support staff hence the business will be able to meet their needs.
Se"89:& 7 The place is well secured as it%s next to a police station
10
Re;!8"e; 7 'aterials and machines are a"ailable in the market hence will smoothen the
running of the tailor kind of business.
!apital with the existing bank loans, starting the business will be relati"ely cheap.
E6:& e<89e)e6:; 7 The re-uirement to enter is simple and does not need a lot of paper work
since there is a healthy en"ironment.
2.8 EN-R. AN/ ,RO1-H S-RA-E,.
The intended business is expected to enter into the market through focusing on informing
customers as a whole on the establishment of the product and ser"ices through ad"ertising, use of
poster and standing on a high point by employing experienced and -ualified personnel. The
business intends to promote sales in the firm by offering cash discount to customers. >owe"er
for the market the business will pro"ide the best goods and ser"ices that are attainable and
affordable in the area. The owner will also capitalize on the opportunities so as to ac-uire and
retain customers.
The business is expected to enter into the market through public posters, when enough capital is
made. This will enable the business expand a great deal hence the realization of marginal profit,
thus the accomplishment of the set targets.
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+HAP-ER -HREE
3.0 MARKE- PLAN
'arket plan includes identifying the potential competitors and pricing tactics of the market. It
also in"ol"es sales tactics, promotion and creati"ity skills. This will help get and retain
customers and being able to fully satisfy them. The business will therefore target indi"idual
persons and organization of all financial states as potential customers of the enterprise produce.
3.1 +US-OMERS
:otential customers1 The business will try its le"el best to meet the re-uirements of their
potential customers of all races and le"els without discrimination who are01
Institutional customers1 They will offer a large market to the business, since it shall be supplying
to different schools which include "arious school and e"en hospitals. In each case each person
has to get a pair of uniform to wear in each intake. The pattern of purchase is at the beginning of
the year and may be mid year.
1(!#e;'#e; 7 They are customers who will be buying the products in bulky. These are the
regular customers. They include uniforms wholesalers, companies, retailers and e"en factories.
I679v978'# "8;:!)e; 7 They are the indi"iduals who buy products as a person that is they only
buy to be used by them and may be others in their families.
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3.2 MARKE- SHARE
The products and ser"ices that will be offered are belie"ed to rise in the market potentially to a
greater impro"ement due to the affordable price, reliability and e"en the a"ailability of products
at relati"ely cheaper prices. This will ensure that at least a market share of approximately (46
will be realized.
In order to achie"e this prime ob#ecti"es the business will be well focused and follow the right
ways of offering the best -uality products and ser"ices as an enterprise so as to bind them to
continue using the products in that enterprise
= healthy en"ironment should also be ensured in the business as this is a "ery essential thing.
The company to the other existing ones so as to be able to come up with the strengths and its
weaknesses and afterwards impro"ing where possible
3.3 +OMPE-I-ION
There are two main competitors in the industry which gi"es much threats to the business these
are0 "ision tailor and /anet Tailor nterprise.
Through there ser"ices are not up to date that is why we proposed as a solution to the market
demand in the surrounding en"ironment
&elow are the strengths and weaknesses realistic
3trength and weakness 3mart look 2ision /anet tailor
'anagement * + (
mployer * + (
xpenses ( ( (
/ocation ( ( @
xpenses ( + (
Total A *+ *(
The table below indicates the strengths, weakness and the market share of the three enterprises.
Name of business 3trengths ?eakness 'arket share
3mart looks tailor ?ell trained
personnel, reasonable
prices, reliable and
Not well known to
customers
+@6
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flexible ser"ices and
a"ailability of
materials
2ision tailor Known by customers
high sales and
sufficient distribution
<nreliable, lack of
good customer
relations and lack of
ad"anced technology
+A6
/anet tailor 3trategic location and
long working hours
<nreliable and lack of
enough materials
hence lot of delays
(A6
In order to o"ercome the competition smart looks intends to take "arious measures including01
:lanning well and in ad"ance for the operation of the business
<se sophisticated machines so as to increase the product -uality hence attraction of more
customers pro"ides -uality ser"ices and products that%s by adhering to customers demand on
time.
3.4 A/*ER-ISIN, AN/ PROMO-ION
They are the communication methods to be used to remind or persuades existing and potential
customers that the products or ser"ices exists as opposed to personal selling. 'aximum
awareness will be made to the public by01
:roducing posters bearing the name of the business and all that entails the said business, its
location and the contacts.
!olluding with the existing business so as to market products hence widening the market share
3.$ PRI+IN, S-RA-E,.
The pricing strategy of the business is to range from profits, achie"ing returns on in"estments,
maintaining or increasing the market share. !onse-uently these are ma#or factors influencing
price strategic of the business products and ser"ices.
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+!)=e:9:!; 7 They are other players in the field offering the same ser"ices hence to
strategizing price in away. =lso the business as a buyer in to re-uest price bids from interested
suppliers on a proposed purchase or contract.
-(e =9"e !> >8e# 7 The fuel price directly determine the fare charges since the transport of
material and other products will be proportional to each other
M'5e: 7 The business is to use the probabilities biding to fully exploit the market. Its expected
to gi"e dominate the market with "ariable prices if only a mathematical techni-ues is used to
determine price in biding situation where competitors are assumed to beha"e in future as they
ha"e in the past with high prices.
The -uality of material0 The higher the -uality of the material, the higher the price of the
products. It mainly determines the kind of prices to be charged.
,o"ernment policies sometimes go"ernment may chip in to regulate prices within a certain
range.
>owe"er, the business is expected to calculate in ad"ance the cost to be in"ol"ed and incurred
for after sales ser"ices. The cost of which is to be determined on to expected ser"ices charges
and the necessary sub1components to be in"ol"ed during the ser"ices then added before any
product is resold to customers. This is to be used so as to exploit and enhance the ob#ecti"es
without inflation.
3.6 SALES -A+-I+S
It needs perse"erance endurance and total de"otion to the workshop, positioning and selling
stores in the business markets will in"ol"e creati"e selling as a way of a rousing demand and
influencing patronage pricing of products or commodities in any business must be kept into great
consideration for any business to prosper.
The business will employ certain strategies to make more profits01
8ecruit proper and trained sales and marketing officers to conduct the marketing
acti"ities.
Train employees on how to handle the customers well.
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'aintain a clean and conduci"e working en"ironment.
;esign better modes of reaching the potential customers and "ice "erse
,i"e discounts to clients and also lower prices to achie"e the wanted maximum profit.
3.7 /IS-RIBU-ION S-RA-E,.
These are the means of transport used in roads. 3ince it%s a link between the buyer and the seller..
,aining access to any reseller are con"enient as the roads are tamarcked the business intends to
use intensi"e distribution and in an attempt to select only the better intermediaries in utilizing a
selecti"e distribution policy.
The firm is to distribute the products to eliminate number of retailers in selected areas. >owe"er
the firm is to accept selecti"e distribution because of the "arious reasons including the
following01
The intermediaries who from a status stand a point to find its ad"antages to distribute the firm%s
products in the local business market.
;istributors who are to gi"e preferential treatment to the firms ha"e limited competition.
The business is to get an uphill to obtain teamwork of employees who are to practice for the
better running of the business. The business howe"er expects to come together and appeal to the
go"ernment and to the local council to repair roads, and at the same time emphasis the need to
work together as a team and boost from firms for #ob security to its employees.
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+HAP-ER 0OUR
4.0 OR,ANI?A-IONAL PLAN
In an organization company or institution there are channels of management form top to bottom
of the managerial arrangement. The general manager who is to be the owner of the business is to
be at the top le"el of the hierarchical structure. 3he should not guess, decide without knowing
why, appreciated that the administration has to prophesy howe"er, little she may that she is
among the prophets.
3he should not drift into forecast or plans based on them without recognizing that there ha"e
been a deliberate of what the future holds. =s a planner she is to plan in relations to "arious
characteristic including the following01 a plan that%s based on clearly defined ob#ecti"es, simple
that pro"ider for a proper analysis and classification of actions to establish standards.
=s in"estigations she should see that statistic and other data are expressed in terms that
correspond with the realistic of the situation. 3he should bear in mind that there is nothing more
misleading than a figure which appears "ery dramatic and significant but which is in fact
irrele"ant.
The manager is her capacity is to carry out regular training to impro"e the effecti"eness of her
business to herself and her employees and personnel in a wide range of areas such as -uality
control, customers relation costing and pricing production management she must identify those
areas that can be impro"ed by training and also identify organizations or indi"idual that can carry
out the training.
3he should be a good time manager by use of time schedule to arrange the acti"ities or tasks to
be performed.
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4.1 OR,ANI?A-IONAL S-U+-URE
The following is the order of staff as smart look tailor enterprises.
,eneral 'anagers *
3ales and marketing officer *
;esigner (
Tailors @
?atchman *
;ri"er *
,N8=/ '=N=,8
3=/3 B '=8KTIN, 9CCI!8
;3I,N8
18
T=I/98 +
T=I/98 (
T=I/98 *
;8I28
9T>8 3T=CC
?=T!>'=N
4.2 KE. MANA,EMEN- PERSONNEL
Cor the smooth running of the firms operation smart looks re-uires a well established framework
in which responsibilities will be defined and lines of authority laid down clearly so as to ensure
good working relationships proper reception of customer.
4.2.1 M'6'@e
The manager will ha"e completed her ;iploma course in &usiness =dministration at the
'ombasa :olytechnic.
4.2.2 /8:9e; !> :(e )'6'@e
To recruit new employees
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To coordinate duties
!ontrol all business acti"ities
4.3 O-HER BUSINESS PERSONNEL
The other staff that will be employed in the business will in"ol"es01
;esigner
3ales and marketing officer
Tailors
?atchman
;ri"er
4.3.1 /e;9@6e
The business will seek to recruit a designer whose position falls under the management ser"ice
di"ision. >is purpose is to be contributed to the information and achie"ements of the ob#ecti"es
and strategic as set out in the business strategic plan and be guided by the designers manuals.
4.3.1 A8'#9>9"':9!6;
;iploma holder in rele"ant course to his work
>a"e good communication skills
>a"e a working experience of at least ( years
3hould be computer literature as an added ad"antage
=ged between (* 7 (5 years
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3hould show competence and efficiency
Re;=!6;9B9#9:9e;
'ake decisions for the business pertaining "arious to be produced
=ssist in the preparation of officer budgets applicable for staff ser"icing and maintaining
necessary budgetary control of the business.
'oti"ate the employees
=dministrating performance management for employees
8ecei"e and make re-uest -uotations to and from clients
Cinance all the accounts records
4.3.4 S'#e; '67 )'5e:96@ !>>9"e
>e is to be responsible for the information or awareness to the public on the public gi"en
and carry out the following task.
Keep records of the sale products
'arket the organization policies
&uy new ideas which will be incorporated into the business
=d"ice the business on trends and preferences
=cts as a link between the business and consumer
Keeping up to date by reading and discussion
3ubmitting reports of his section to the manager
A8'#9>9"':9!6
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>a"e a diploma or its e-ui"alent in sales and marketing
>a"e ( years working experience in a busy company
:referably a lady of between () 7 (D year of age
&e willing to work under harsh conditions
&e con"ersant with nglish and Kiswahili
4.3.$ -'9#!;
A8'#9>9"':9!6
3hould be a diploma holder or e-ui"alent in the same field
3hould be () 7 +) years of age
3hould ha"e at least ( years working experience
&e willing to work under will conditions
=bo"e all he/she should posses the following personnel attributes.
>e/she should be of a good personality and conduct
Cairness, treating all workers as e-ual as possible
Clexibility, that is he/she should took at other peoples suggestions
Keep up to date records.
;uties and responsibilities
'aintain the standards of the business
nsure that he/she do the work gi"en per day
=d"ice on the new ideas in making up decisions
&e responsible for any other work assigned by manager
4.3.6 1':"()'6
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A8'#9>9"':9!6
'ust be an 91le"el certificate holder
?orking experience of ( years
&e aged (A years and abo"e
'ust ha"e certificate of good conduct
'ust be flexible to change
;uties and responsibilities
3afeguard business asset
4.3.7 /9ve
'ust ha"e a "alid dri"ing license
Eualification
;eli"ery of goods from the purchasing center to the premises
4.4 RE+RUI-MEN- ON PROMO-ION O0 PERSONNEL
4.4.1 Re"89:)e6:
=d"erts will be put access and will be fair and open to all who ha"e a need on its. It will be
based on competence, merits and experiences. =fterwards the short listed candidates will be
selected. 9rientation programs will then be carried out. It must be systematically followed with
the laid down procedures.
4.4.2 P!)!:9!6
There will be promotions in order to achie"e the goals and the targets of the business. It will be
hard work, -ualification, discipline, competence, effecti"eness work performance.
4.$ REMUNERA-ION AN/ IN+EN-I*ES 0OR PERSONNEL
@.5.* 8emuneration
23
The management of the business is to ensure ade-uate and proper remuneration of workers. The
business is to ensure that salaries are paid well to reduce grie"ances and dissatisfaction among
the employees thus the following is a summary table showing how employee will be rewarded.
:osition Number 3alary Total amount FKsh.G
'anager * *(, 5)) *(, 5))
;esigner ( *), A)) (*, 4))
3ales and marketing officer * H, ))) H, )))
Tailors @ D, A)) +*, ())
;ri"er * 4, ))) 4, )))
?atchman * 5, ()) 5, ())
@.$.2 I6"e6:9ve;
The business is to offer the incenti"es to the employees for their hardworking so as to moti"ate
then and in"est more in the business in form of ability and capability.
The incenti"es includes01
Cinancial incenti"es
Non 7 financial incenti"es
Cinancial incenti"es
&esides salaries the workers will be gi"en some other incenti"es as01
=warding commission
=warding of bonuses
Introduce employees 3=!!93 where shel"es will be directed by the employees
9rganization thanksgi"ing parties
Non financial incenti"es
Include01
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$ob securities
9rganizing of trips to different companies
:ro"iding better and healthy working conditions
$ob satisfaction
Training and impro"ing workers in the organization
4.6 LI+ENSESC PERMI-S AN/ B. LA1S
=ccording to the Kenya constitution cap (*4 of the societies =ct, all business must be registered
and awarded a certificate before its operation. It will be done under the office of the attorney
general.
/icenses
Cor a business to operate without any problem, a license is to be obtained from the ministry of
local go"ernment. The business is to be registered and gi"en a certificate of incorporation from
the higher authority especially the attorney general. The business is to ha"e the following
documents as licenses.
Item 3ources =mount Ksh.
&usiness license !ounty council @))
/ocal authority !ounty council ())
8egistration ;istrict office 4))
3er"ices charge !ounty office 5))
Pe)9:;
= permit is to be obtained from the district officer. This is "alid for a period of *( months thus
renewable at e"ery year.
B& #'D;
25
9n ac-uiring the license, the by1laws is to ha"e already those which should be adhered to
mployment F=ct cap ((4G this pro"ides the regulation regarding to employee wages to working
conditions. The business is to obser"e al the regulation on wages and then working conditions
and should much standard.
:ublic >ealth =ct F!ap (@(G, the act within and around the en"ironment of the business. /itters
from the business should be disposed in the proper place.
Income tax =ct F!ap @HDG taxation of income earned by indi"iduals.
4.7 O-HER SUPPOR- SER*I+ES
Cor the business to flourish, it%s to be supported by the professional staff.
4.7.1 Le@'# ;ev9"e;
The business is to hire Kendui and company ad"ocates to deal with the legal matters in"ol"ing
the business and cases like theft of the business property. Its address is as follows
KN;<I =N; !9':=NI =;29!=T3
>I// >9<3
:.9 &9J *HH(
N=I2=3>=
T/0 )D+A 555@A(
4.7.2 B'6596@ ;ev9"e;
The commercial bank of Kenya is to pro"ide the business with the following accounts.
!urrent account, sa"ings account and fixed deposits account. The bank is also to offer both long
term and short term loans and the o"erdraft.
4.7.3 Se"89:& ;ev9"e;
The business is to employ the Kenya security company to offer security to the business property
and be sending big parcels.
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+HAP-ER 0I*E
$.0 PRO/U+-ION PLAN
Cor the success of smart looks the owner of the business intends to lay down a "ery effecti"e and
efficient system of production and operational plan to satisfy and sustain the business. The means
and ways of undertaking a good operational plan is utilize the a"ailable resources. 3mart looks
will identify the potential customers and enlighten them of the new technologies to be applied
business. 9therwise all the employees must operate with unity in order to achie"e a good
operational plan hence success in the business.
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$.1 PRO/U+-ION 0A+ILI-IES
The success and failure of the business at any gi"en time depends on its cost of operation. This
entirely relies fully upon how well the workshop is e-uipped in terms of tools and e-uipment. If
the tools are not operational then its implies that whate"er ser"ices and products gi"en to the
esteemed customer is "ery low and poor in -uality since the spares are to be ready a"ailable from
the local supplier the business will not be expected to meet many expenses hence its to gi"e its
tender to iron tailor company to supply to the business.
Its then to make sure that the pre"enti"e maintenance is carried out periodically to all the
machinery and e-uipments according to manufactures recommendations. =s per the business
regulations and stipulation their operation will ser"ice the machines. >owe"er the workshop is to
be installed with se"eral e-uipments including0
$.1.1 -'B#e;
Three tables are re-uired which are to be used by designer manger and tailors. The table will
facilitate the work done by the manager in administering the business ob#ecti"e and the target
which with its strategies. The designer will be using it in taking records and dealing with the
business customers. In each case each of the totals of Ksh. *, 4)). The third table will cost Ksh.
*, ))) which is to be used by the tailors as they measure and cut the materials. =lso its to be
placed in a spacious room to ease the work and mo"ements in the room. The total amount will be
Ksh. (, 4))
$.1.2 SeD96@ )'"(96e;
The business will be a total of 5 sewing machines to be used in the smooth and efficient running
of the business each normal machine to cost Ksh. (, A)). FThree are to be purchased at Ksh. A,
@)) and two are to be the electric ones costing Ksh. D, ))) which will facilitate high production
of the business hence meeting the current demand. "ery machine will be used for the right
purpose at the right time.
$.1.3 +('9
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There will be se"en chairs to be used in the business, each to its relati"e position ranging from
the manager, designer, tailors, sales and marketing officer and the other staff. Three chairs
costing Ksh. 5)) each and the other remaining four are costing Ksh. +)) each, summing to a
total of Ksh. +, ))).
$.2 PRO/U+-ION S-RA-E,.
The business will be purchasing materials for use mainly to the addition of the remaining on a
monthly basis since it will be depending on the customer. The sales of the ready cloths will be
done in cash at hand transactions so as to reduce credit sales hence an efficient running of the
business. 'aterials will be a"ailable throughout the year at the market which will help in the
proper flow and running of the plan.
This will facilitate the profit making of the business. 'oreo"er the business will ha"e its own
store of materials that will enable customers to choose their fa"orite colours and type. The setting
of the product will be on time so as to maintain the faith of the prospecti"e clients and in
o"ercoming the competitor%s weakness. The manager should be ensured best -uality products of
high standards on made so as to win the customer relationship with the business.
$.2.1 P!78": 7e;9@6 '67 7eve#!=)e6:
The business intends to use the manufacturers design in lending to customers. In which case the
business is not to incur much expense to de"elop its products, for the business to offer its
ser"ices efficiently it%s to use both indigenous and the alternati"e technology so as to attain the
"ery best.
In consideration to simply utilization, cost effecti"eness, flexibility and operating machine
maintenance, the business is to cope up with changes in technology by regularly updating its
workers.
$.3 PRO/U+-ION PRO+ESS
Cor good -uality dress making the following processes is to be implemented. :urchase of
materials, taking of measurements, cutting of the materials to the desirable measurements,
ironing and storing.
29
:<8!>=3 9C'=T8I=/3
T=KIN, 9C '=3<8'NT3
!<TTIN, 9C T> ;3I8=&/ '=3<8'NT3
$9ININ, ;,3
T=KIN, '=3<8'NT3 =,=IN
3?IN, &I '=!>IN3
I89NIN,
3T98
3=/
30
$.3.1 O=e':9!6
'aterials shall be collected from the rele"ant seller as a chosen -uality material that customers
demand at the market. Taking of measurements, of the client to its approximate "alue which in
return enables the utilization of the material during the cutting process, #oining of the edges will
be the next process done in order to enhance the ac-uisition of the right size, shape and unity of
the dress to be made. 3ewing by the machine is made easier and flexible thus working faster.
Taking of measurements again enables accuracy and reduces errors that are encountered during
the process hence bringing up a clear bright shape of the dress made. Ironing is then to the dress
to gi"e its good look and admirable thus bringing greater marketing of the business products.
The designer facilities the process since he/she will be gi"ing the re-uired guidance to the tailors
of the new fashions in the market. The designs will depend on the fashion at the market and on
customer%s desire.
$.4 RE,ULA-IONS A00E+-IN, OPERA-IONS
$.4.1 He'#:( Re@8#':9!6;
To comply with the sanitation there will be toilets and bathrooms in the premise connected to the
sewage system and also a fan to ensure a fresh working en"ironment. ?orkers are expected to
ha"e a certificate of good health from a recognized health officer. 'oreo"er clean water and
good "entilation will be pro"ided. Tools should be kept in their right place to a"oid unnecessary
accidents. These health regulations are to be strictly adhered to.
$.4.2 B8;96e;; -'7e)'5
=fter the business has been registered under the business laws of Kenya, the trademark shall be
used to stamp the products or the receipt to a"oid the possibility of goods faulty brought and sold
under its name. The trademark is to ha"e the business full name that is 3'=8T /99K3,
T=I/98I 9<TCITT83 NT8:8I3.
$.4.3 S'>e:& e@8#':9!6;
31
To a"oid workers sliding, the floor is expected to be kept dry by ensuring that no droppings of
any li-uids or pins are there. =bsence of pins will be ensured by the pro"ision of dustbins which
ha"e to be emptied each day before closing the business. They will also be an emergency does to
be used incase of dangers as fire break outs in the business.
32
+HAP-ER SIX
6.0 0INAN+IAL PLAN
6.1 PRE-O++UPA-IONAL +OS-S
:articulars =mount
3tarting in"entory, decorations and reno"ation
Tools and e-uipment
'arketing research
/icense fee
lectricity and water deposits
&usiness registration
Insurance
Telephone bill
5(), )))
*+), )))
@, )))
+, )))
(), )))
(, 5))
+, )))
@, )))
T9T=/ 4A4, 5))

33
6.2 1ORKIN, +API-AL
?orking capital is simply the difference between the current =ssets and the total current
liabilities
6.31ORKIN, +API-AL 0OR SMAR- LOOKS AS A- 4ANUAR. 2013
:=8TI!</=8 I=8 ()*+ I=8 ()*@ I=8 ()*5
!<88NT =33T3 K3>. K3>. K3>.
9pening stock *)), ))) *A), ))) *A5, )))
;ebtors A), ))) *+), ))) H), )))
!ash and bank +)), ))) (A), ))) +(), )))
!ash at hand @), ))) **), ))) *(), )))
+@), ))) +H),))) @@), )))
Total current assets
/ess0 !urrent /iabilities
!8;IT983
?98KIN, !=:IT=/
+@), )))
5(), )))
F*(), )))G
@)),)))
+H), )))
D)), )))
F((), )))G
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D*5, )))
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@)), )))
34
6.3. PRO4E+-E/ +ASH0LO1 S-A-EMEN- 0OR SMAR- -AILOR. EN-ERPRISE 0OR -HE
.EAR EN/E/ 31
S-
/E+EMBER 2013
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9?N
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+)),))) 1 1 1 1 1 1 1 1 1 1 1 +)),)))
!=3>
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(*),))) ()),))) ()),))) *H(,+)) *H5,))) ()*,))) *HA,))) (*(,+)) ()+,))) *H5,))) *H(,))) ()),))) (,+AA,4))
8!N
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1 *5,()) *5,()) *@,()) *4,5)) *+,5)) **,))) *5,))) D,))) A,5)) *),))) *(,55) *@),4*)
T9T=/
!=3>
INC/9
?
5*),))) 5*A,D)) 5(@,5D) 5++,5D) 5A+,5A) 55H,HA) 55,5@) 54D,@4) 5D*,)A) 5DA,*A) 5A+,H*) 5HD,D5) 4,45@,)D)
!=3>
9<T
35
C/9?
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>=3
4),))) 45,))) 5H,()) 4),))) D4,))) A),))) D5,))) A(,++) 4*,D5) 4A,))) D*,*)) D(,5)) A+),AA)
3=//=
8I3/?
=,3
*)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *)),))) *,()),)))
/I!N
33
@,))) 1 1 1 1 1 1 1 1 1 1 1 @,)))
?=T
8
&I//3
(,5)) +,))) @,5)) 5,()) (,*)) +,))) (,)() +,5)) (,5)) (,5)) (,5)) (,A)) +D,*()
/!T
8I!ITI
+,4)) @,))) 5,+)) 5,5)) +,()) +,()) +,(@) +,5)) +,@)) +,+() +,@5) +,@5) @,*4)
'=INT
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(),))) (@,))) (+,))) *A,A5) (+,))) (+,@)) (*,5)) (4,A5) (5,()) *H,))) *A,()) *H,()) (4(,())
T8=N3
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@,()) 5,))) 5,5)) 4,*)) +,5)) +,5)) +,+)) +,))) +,()) +,))) +,))) +,))) @4,+))
IN3<8
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*(,))) 1 1 1 1 1 1 1 1 1 1 1 *(,)))
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T9T=/
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9?
()4,5)) ()*,(+) *HD,D5) *H*,+)) *)A,*)) (*5,@@) (*5,+A) ()4,+4) *H4,@)) *H4,(D) *HA,D*) ()*,@D) (,@+(,H+)
NT
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+)+,5)) +*D,@D) +(4,A() +@(,@A) +@5,@A) +@4,5@) +4*,*4) +4*,)A) +D@,4A) +A*,H*) +A5,()) +H4,(A) @,((*,*@)
36
6.4PRO-0OMA IN+OME S-A-EMEN-
0OR SMAR- LOOKS -AILOR. EN-ERPRISE
AS A- 31
S-
/E+. 2013
IT' +*
3T
;!. ()*+ +*
3T
;!. ()*+
3ales
/ess0 !ost of sales
9pening stock
=dd0 :urchase
!ost of goods a"ailable for sale
,ross profit
/ess0
J:N33
?ages and salaries
Telephone
=d"ertisement
lectricity
/icense
Transport
Insurance
Total expenses
*)), )))
A+), AA)
*)), )))
@, )))
@, A))
*), )))
+, )))
@, ())
+, )))
5, +)(, )))
H+), AA)
@, +D*, *()
*(H, )))
37
Net profit before tax
:ro"ision for tax *56
Net profit after tax
@, (@(, *()
4+, +*A
+4, ))5, A)+
6.$PRO-0ORMA BALAN+E SHEE-
0OR SMAR- LOOKS -AILOR. EN-ERPISE
AS A- 31
S-
/E+. 2013
IT' ()*+ ()*+
CIJ; =33T3
'achinery and e-uipment
/ess depreciation F*)6G
!<88NT =33T3
3tock
;ebtors
!ash in bank
5), )))
5, )))
()), )))
*@), )))
@5, )))
38
!ash hand
Total assets
!<88NT /I=&I/I3
!reditors
?orking capital
CIN=N!; &I
9wners -uity
&ank loan
/ess loan repayment
T9T=/ /I=&I/ITI3
+5), )))
D+5, )))
(45, ())
5(), )))
+)), )))
5), )))
*5, )))
DA), )))
+D), ())
6.$BREAK E*EN ANAL.SIS
0OR SMAR- LOOKS -AILOR.
This is the point where the business is making no profit no loss.
Item Cixed asset 2ariable
39
3alaries and wages
=d"ertisement
8ent
/icense
Telephone
Transport
*, ()), )))
4), )))
@, )))
5, )))
@, (D)
Total *, (4@, ))) H, (D)
!alculation 'argin
3ales 7 2ariables
F*, (4@, ))) 7 H, (D)G
K *, (5@, D+)
!ontribution margin percentage
!ontribution margin x *))
3ales
K *, (5@, D+) x *))
*, (4@, )))
40
K HH.+6
Total fixed costs 7 Total operating expenses for the year
&reak e"en le"el of sales K LLLLLLLLCixed costLLLLLLLLLL
!ontribution margin percentage
K *, (5@, )))
HH.+
K *(, D(H.*)
6.6/ESIRE/ 0INAN+IN,
This is the capital re-uired to start the business
Item =mount
?orking capital
Cixed assets
:reoperational costs
D)), )))
5), )))
(A), )5)
Total *, )+@, 5))
41
6.7PROPOSE/ +API-ALI?A-ION
C98 3'=8T /99K3 T=I/98I
Item =mount
Total in"estment
9wners e-uity
&ank loan
&orrowing from friends
Total
*)), )))
+)), )))
5), )))
*)), )))
55), )))
6.8EXPE+-E/ PRO0I-ABILI-. RA-IO
0OR SMAR- LOOKS EN-ERPRISE
3how the rate of return the business will yield after finance being employed to it
,ross profit percentage
,ross profit x *))
3ales
@, +D*, *() x *))
*, (4@, )))
K +@5.A6
42
8eturn on e-uity
Net profit after tax x *))
9wner%s e-uity
+4), ))5, A)( x *))
+)), )))
K *()).*H6
8eturn on in"estment
Net profit after tax x *))
Total in"estment
+4), ))5, A)( x *))
*)), )))
K +4))5.56
43