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CASO Hardware is a new business which is going to establish a retail hardware store in west end mall in
Kisumu. The store will sell hardware of all kinds, quality tools, paint and housewares. The business will
make revenue and a profit by servicing its customers not only with needed hardware but also with expert
advice in the use of any product it sells. CASO Hardware will be operated by its sole shareholder,
Cynthia Ojwang. The business will have a total of four employees. It will sell its products in the local
market. Customers will buy our products because we will provide free advice on the use of all of our
products and will also furnish a full refund warranty.

CASO Hardware will sell its products by three sales representatives. No additional employees will be
needed to achieve its short and long range goals. The primary short range goal is to open the store by
October 1, 2018. Cyntia will invest ksh 887,750 in the business. In addition the company will have to
borrow ksh 500000 during the first year to cover the investment in inventory, accounts receivable, and
furniture and equipment. The company will be profitable after six months of operation and should be able
to start repayment of the loan in the second year.



CASO Hardware will be operated and owned by its sole shareholder, Cynthia Ojwang.


28 years



Resides in Kisumu

Currently at student at Kisumu Polytechnic

1.1 Objectives

1.2 Mission

The mission of CASO Hardware is to offer quality hardware products in a customer-friendly shopping
environment. Our customers will get assistance quickly and will leave the store prepared to get the job
done right the first time. CASO Hardware will also focus on anticipating the seasonal needs of its
customers and providing the best products at competitive prices


2.1 Business Name

CASO hardwares

P.O Box 200-40103,



The business name was derived form the owner's name.

2.2 Business Purpose

It will sell hardware of all kinds, quality tools, paint, and housewares. We will purchase our products
from three large wholesale buying groups.In general our customers are homeowners who do their own
repair and maintenance, hobbyists, and housewives. The business is unique in that we will have a
complete line of all hardware items and will be able to get special orders by overnight delivery. The
business makes revenue and profits by servicing our customers not only with needed hardware but also
with expert advice in the use of any product we sell.

2.3 Form of Business Ownership

The business is a sole proprietorship. The industry is profitable as many investors have resorted to real
estate business. The business will supply investors with equipments and materials that are needed by the

2.4 Business Location

CASO Hardware, retail outlet will be located Kisumu West end mall, which is in a newly developed
retail center. Our location helps facilitate accessibility from all parts of town and reduces our delivery
costs. The store will occupy 7500 square feet of space. The major equipment involved in our business is
counters and shelving, a computer, a paint mixing machine, and a truck.The business is owned by Cynthia


The business falls in the construction sector.

2.3.1 Industry size

The industry is large as the demand of building materials is on the rise in the country. It aslo contributes
largely to the Gross Domestic Product of the country.

2.3.2 Industry characteristics

The business is capital intensive. It is highly profitable.The industry has a stiff competition as it is flooded
with retailers. The industry has employed more 25 per cent of the country's household. It largely
contributes to the national income of the country. There is an increase in demand in this industry. The
business is very lucrative as the materials are on high demand.

2.3.3 Industry Trends

Recent trends in the hardware industry show that external competition has slightly dampened both
industry revenue and profit growth. Hardware stores have shifted business models to deal with heightened
external competition and they will continue to be pressured by online retailers and larger home
improvement stores.

The hardware retail stores landscape has seen tremendous changes in the last 20 years; it has grown from
the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online
store makes it easier for a hardware retailer to reach out to a larger market far beyond the areas where his
physical store is located.
2.3.4 Industry Outlook

Experts projected that in 2019, the hardware stores industry is expected to profit from growing global
economic conditions.


CASO Hardware offers the parts, material and advice to tackle any home repare. The store will satify
customer's needs. The products dealt in are building materials, equipments and paints. CASO Hardware
Stores is in the hardware stores industry to service a wide range of clients and of course to make profits,
which is why we will go all the way to make available a wide range of hardware and other related
products from top manufacturing brands in Kenya.

Our product offerings are listed below;

• Retailing hardware

• Retailing tools and equipment

• Retailing plumbing fixtures and fittings

• Retailing electrical supplies

• Retailing paint and supplies

• Retailing garden products and equipment


CASO Hardware has the following objectives.

2.5.1 Short term goals/objectives

1. To provide jobs within the community.

2. To successfully manage a hardware store.

3. To provide service and products needed by the customers.

2.5.2 Longterm goals/objective

1. Obtain Grant funding to purchase an existing hardware store and rebuild the retail space.

2. Customer Service - Give our customers the highest quality product and service at a fair competitive

3. To create a safe environment for people in the community to come for their hardware store needs.


The main factor for choosing hardware stores business is because of the prevailing environment that
allows for such a business. The government regulations are also not tough for this industry, for instance,
the tax on this kind of business is low compared to others. There is also a quick and ready market for this


2.7.1 Entry Strategy

• The business will employ the following ways to create awareness;

• Encourage the use of word of mouth publicity from our loyal customers.

• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter,
LinkedIn, Snapchat, Google+ and other platforms to promote our business.

• Ensure that we position our banners and billboards in strategic positions all around Kisumu

2.7.2 Growth Srategy

The future of a business lies in the number of loyal customers that they have, the capacity and
competence of their employees, their investment strategy and the business structure. If all of these factors
are missing from a business, then it won’t be too long before the business closes shop. One of our major
goals of starting CASO Hardware Stores is to build a business that will survive off its own cash flow
without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range
of products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies,
paint and sundries and lumber and other building materials et al from different manufacturers (brands) a
little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit
margin for a while.
CASO Hardware Stores, will make sure that the right foundation, structures and processes are put in place
to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive
our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can
get in the industry; they will be more committed to help us build the business of our dreams.


3.1 Potential Customers

Those who patronize hardware stores cut across all genders above 18 years with the financial means, and
who own an apartment or office/business hence the potential customers for the hardware store business is
all encompassing. In essence, your target market can’t be restricted to just a group of people but all those
who reside in and around the store location.


A close study of the hardware stores industry reveals that the market has become much more intensely
competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and
proactive if you must survive in this industry. The business is aware of the stiff competition and we are
well prepared to compete favorably with other leading stores in Kisumu.


Before choosing a location for CASO Hardware conducted a thorough market survey and feasibility
studies in order for us to penetrate the available market. It has a detailed information and data that it was
able to utilize to structure our business to attract the number of customers we want to attract per time. The
business should cover kisumu and its environs.


Aside from quality, pricing is one of the key factors that gives leverage to hardware retail stores, it is
normal for consumers to go to places where they can get hardware and other related products at cheaper

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within
the first 6 to 12 months, our products will be sold a little bit below the average price of various hardware
stores in Kenya. We have put in place business strategies that will help us run on low profits for a period
of 6 months; it is a way of encouraging people to buy into our brand.


Before choosing a location for CASO Hardware conducted a thorough market survey and feasibility
studies in order for us to penetrate the available market. We have detailed information and data that we
were able to utilize to structure our business to attract the number of customers we want to attract per

In other to continue to be in business and grow, we must continue to sell the hardware and other related
products that are available in our store which is why we will go all out to empower or sales and marketing
team to deliver.

In summary, CASO Hardware will adopt the following sales and marketing approach to win customers

• Introduce our hardware store by sending introductory letters alongside our brochure to
residents, businesses and other key stakeholders in Kisumu

• Ensure that we have a wide range of hardware and other related products from different brands
at all times.

• Make use of attractive hand bills to create awareness and also to give direction to our store.

• Position our signage/flexi banners at strategic places around Kisumu.

• Position our greeters to welcome and direct potential customers.

• Create a loyalty plan that will enable us reward our regular customers.

• Engage in roadshows within our neighborhood to create awareness for our hardware retail

• List our business and products on yellow pages ads (local directories).

• Leverage on the internet to promote our business.

• Engage in direct marketing and sales

• Encourage the use of word of mouth marketing (referrals).

Join local chambers of commerce and industries to network and market our products.


3.6.1 Advertising Programme

Here are the platforms we intend leveraging on to promote and advertise CASO Hardware

• Encourage the use of word of mouth publicity from our loyal customers.

• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter,
LinkedIn, Snapchat, Google+ and other platforms to promote our business.

• Ensure that we position our banners and billboards in strategic positions all around Kisumu

• Distribute our fliers and handbills in target areas in and around our neighborhood.

3.6.2 Promotional Programme

• Brand all our official cars and trucks and ensure that all our staff members and management
staff wears our branded shirt or cap at regular intervals.


The goods will be made available to the customer through door to door delivery. The mode of transport
will be by road. The distribution will less costly to the business as the delivery is done for a certain
volume whose profit margin covers the expense incurred from transport.

CASO Hardware Stores do not intend to start a hardware retail store business like the usual mom and pop
business around the street corner; our intention of starting a hardware retail store business is to build a
standard retail store outlet in Kisumu..

Although our hardware retail store business might not be as big as other, Do It Best and True Value
Company et al, but will ensure that we put the right structures in place that will support the kind of
growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to
help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-
sharing arrangement will be made available to all our senior management staff and it will be based on
their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

• Human Resources and Amin Manager

• Sales and Marketing Manager

• Accountants / Cashiers

Roles and Responsibilities

Chief Executive Officer :

Grows management’s effectiveness by employing, selecting, orientating, preparation, coaching,
counseling, and disciplining managers; communicating values, strategies, and objectives; assigning
accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a
climate for offering information and opinions; providing educational opportunities.

Accountable for fixing prices and signing business deals

Accountable for providing direction for the business

Builds, interconnects, and implements the organization’s vision, mission, and overall direction – i.e.
leading the development and implementation of the overall organization’s strategy.

Accountable for signing checks and documents on behalf of the company

Evaluates the success of the organization

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization

Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.

Ensures operation of equipment by completing preventive maintenance requirements; calling for


Defines job positions for recruitment and managing interviewing process.

Carries out staff induction for new team members.

Responsible for training, evaluation and assessment of employees.

Accountable for arranging travel, meetings and appointments.

Oversees the smooth running of the daily office cum business activities.

Sales and Marketing Manager

Manages external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones

Model demographic information and analyze the volumes of transactional data generated by customer
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Develops, executes and evaluates new plans for expanding sales

Document all customer contact and information

Represents the company in strategic meetings

Helps to increase sales and growth for the company


Accountable for preparing financial reports, budgets, and financial statements for the organization

Provides managements with financial analyses, development budgets, and accounting reports. In
control of financial forecasting and risks analysis.

Performs cash management, general ledger accounting, and financial reporting

Responsible for developing and managing financial systems and policies

Responsible for administering payrolls

Ensures compliance with taxation legislation

Handles all financial transactions for the organization

Serves as internal auditor for the organization


The payment policy adopted by CASO Hardware Stores, is all inclusive because we are quite aware
that different customers prefer different payment options as it suits them but at the same time, we will
ensure that we abide by the financial rules and regulation of Kenya.

Here are the payment options that CASO Hardware Stores, Inc. will make available to her clients;

• Payment via bank transfer

• Payment with cash

• Payment via credit cards/Point of Sale Machines (POS Machines)

• Payment via mobile money transfer e.g MPESA


From our market survey and feasibility studies, we have been able to come up with a detailed budget
on achieving our aim of establishing a standard hardware shop in Kisumu and here are the key areas
where we will spend our startup capital;

• The total fee for registering the business in the Kenya – ksh 10500.

• Legal expenses for obtaining licenses and permits as well as the accounting services – ksh

• Marketing promotion expenses for the grand opening of CASO Hardware Stores, in the
amount of ksh 30,000.

• The cost for hiring business consultant – ksh 25,000

• Insurance coverage at a total premium – ksh 24,000.

• The cost for payment of rent for 12 months at ksh 176 per square feet in the total amount of
ksh 105,600.

• The cost for shop remodeling (construction of racks and shelves) – ksh 20,000.

• Operational cost for the first 3 months (salaries of employees, payments of bills et al) –
ksh 60,000

• The cost for start-up inventory – ksh 350,000

• The cost for counter area equipment – ksh 9,500

• The cost for store equipment (cash register, security, ventilation, signage) – ksh 13,750

• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone,
Sound System, tables and chairs et al): ksh 400,000

• The cost of launching a website: ksh 16000

• Miscellaneous: ksh 10,000

We would need an estimate of ksh 1,387,750 to successfully set up a standard hardware retail store in