NAME OF THE BUSINESS : ANNITAS DESIGNS

P.O BOX : 2541 THIKA

TELEPHONE : 0743034932

EMAIL : SHIROH

BUSINESS LOGOO : AWK

PRESENTED BY : ANN WANJIRU KARIUKI

ADM NO. : 540

PRESENTED TO : KNEC FOR PARTIAL FULFILLMENT

AS A REQUIREMENT FOR THE

AWARD OF CERTIFICATE IN

FASHION DESIGN

NAME OF SUPERVISOR :

SUBMISSION DATE :

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DECLARATION

I have declared that my business plan is my original work and has been presented for the award

of certificate in fashion design.

Name: Ann wanjiru kariuki

Adm: 540 Signature: ---------------------- Date:----------------------------

Supervisor name----------------------------------------------------------------

Signature: ------------------------------------------- Date: -------------------------------------------

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ACKNOWLEDGEMENT
I would like to acknowledge my lectures, institution, parent and other family members who

supported and assisted me all through my studies and also ensuring that the business project was

successfully done.

May Almighty God bless them all.

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DEDICATION
I hereby dedicate my business plan to my parent, sister and brother who have supported me all

through my life. I also dedicate it to my lecturers who have equipped me with knowledge of

compiling this business plan.

May God bless you.

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TABLE OF CONTENTS
DECLARATION.............................................................................................................................ii

ACKNOWLEDGEMENT..............................................................................................................iii

DEDICATION................................................................................................................................iv

TABLE OF CONTENTS................................................................................................................v

CHAPTER ONE..............................................................................................................................1

1.1 Sponsors.....................................................................................................................................1

1.2The Business...............................................................................................................................1

1.2The industry................................................................................................................................1

1.3Products......................................................................................................................................1

1.4The entry and growth strategy....................................................................................................2

1.4.1Entry plan.................................................................................................................................2

1.4.2Growing strategies...................................................................................................................2

CHAPTER TWO.............................................................................................................................3

2.0MARKETING PLAN.................................................................................................................3

2.1 Purposes.....................................................................................................................................3

2.2 Customers..................................................................................................................................3

2.3 Competition...............................................................................................................................3

2.4 Pricing strategy..........................................................................................................................4

2.5 Sale tactics.................................................................................................................................4

2.6 Advertising and promotion strategy..........................................................................................4

2.7 Distribution strategy..................................................................................................................4

CHAPTER THREE.........................................................................................................................5

3.0 ORGANIZATION PLAN.........................................................................................................5

3.1 Purposes.....................................................................................................................................5

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3.2 Organization..............................................................................................................................5

3.2.1 Duties of a manager................................................................................................................5

3.2.2 Duties of marketing team........................................................................................................6

3.2.3 Duties of machine operator.....................................................................................................6

3.2.4 Machine technician.................................................................................................................6

3.2.5 Other personnel.......................................................................................................................6

3.3 Supporting staff and services.....................................................................................................7

3.3.2 Insurance services...................................................................................................................7

3.3.3 Consulting services.................................................................................................................7

3.3.4 Legal services.........................................................................................................................7

CHAPTER FOUR...........................................................................................................................8

4.0 PRODUCTION AND PREPARATION PLAN........................................................................8

4.1 FACILITIES/EQUIPMENT AND THEIR CAPACITY..........................................................8

4.2 FIRM LAYOUT........................................................................................................................9

4.3 Production strategy stages in production.................................................................................10

4.4 Regulations affecting operators...............................................................................................10

4.4.1 Health regulations.................................................................................................................10

4.4.2 Safety regulations.................................................................................................................10

4.4.3 Environmental regulations....................................................................................................10

CHAPTER FIVE...........................................................................................................................11

5.0 FINANCIAL PLAN................................................................................................................11

5.1 Pre-operational costs................................................................................................................11

5.2 Working capital.......................................................................................................................11

5.3 PROFOMA INCOME.............................................................................................................12

5.4 Profoma balance sheet.............................................................................................................12

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5.5 Cash flow projection................................................................................................................14

5.6 Breakeven level.......................................................................................................................16

5.7 Desired financing.....................................................................................................................16

5.8 Proposed capitalization............................................................................................................17

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CHAPTER ONE

1.1 Sponsors
Am Ann Wanjiru Kariuki aged 20 years and live in Gatanga town. A student in Uzuri Institute

perusing fashion and design.

1.2The Business
The name of the business is Annitas design which is gotten from my name Annie,tas is an

additional to the name. The business will be located in Gaanga near Thika green resort at edipark

building. I intend to start up the business after having appropriate skills.

The business is a sole proprietorship so that I can enjoy the profits and loses lonely. The business

activity will be dealing with all wears and selling of fabrics and offer training to those who need

to be trained. Customers will be of all gender i.e. men and women.

I will offer unique deigns and to avoid competition from other business.

1.2The industry
The industry of my proposed business is fashion design. This industry have been rapidly growing

since each are every person want to be presentable and also dresses according to the occasion

have been many and people to wear different styles which fit them during this occasions.it will

offer modern designs and I will employ ten employees.

1.3Products
the business will be offering women wear, men and children wear. That is women and men

blazers, skirts and jumpsuits for children, short and also school uniforms. They will be of

different sizes for children, men and women, I will be ensuring that I use the best material which

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the customers can afford and which will be durable. I will ensure I do repairs for my customers

without charging them anything.

1.4The entry and growth strategy.

1.4.1Entry plan
Anitas designs will use various methods to ensure that it penetrate to the business world. This

will be through displaying the designs that my business will be producing, I will post the designs

in Facebook,instagram,twitter and I will also ensure I open or create a channel in You-tube to

show each and every step that I have done. In order to come up with the final product ,I will also

ensure that my business produces unique products .To cope with competition.

1.4.2Growing strategies
To facilitate growth of the business, I will ensure that the product offered to my customers

satisfies them to full. This will be done by ensuring the garments are neatly stitched and packed

properly. I will also employ skilled personnel and serve the customers well.

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CHAPTER TWO

2.0MARKETING PLAN

2.1 Purposes
The business will be in an open place

2.2 Customers
Annitas designs customers will be institution and individuals since the location of the business

will be opposite westridge girl’s high school. The business will also have individual customers

because most of the residents work in offices and they will need to dress up smart. The business

will be of fair prices and the quality of products will be good. The business will also advertise its

products through social media, Facebook and whatsapp.

2.3 Competition
Annitas designs will both look upon what its competitors are doing in order to know the sets .it

will take to penetrate into the market.

Competitors Failure Strength Weakness

Delaying customers Offering product of Pricing is too higher

goods high/good quality

Annitas design will ensure that its products are of good quality,quantity.its pricing will be fair

and it will ensure that the customers are served in a polite language without delaying for the

goods have ordered. The business will also ensure that it offers unique PRODUCTS.

2.4 Pricing strategy

The business will consider the price of the raw materials .its quality and the detail that are in a

garment and also the time spent in coming up with THE FINAL products .In order to come up
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with the selling price .The details that are in a garment and creativity will show the influence of

the profit .If a garment will be having many details its pricing will be higher. There will be

discount offered to my customers if a customer orders two or more garments.

2.5 Sale tactics

Anitas designs will employ personal selling tactics. The business will employ qualified

personnel who have got skills and have experiences in garment making and cutting. The business

will also train the employee to acquire the required skills. It will be paying the sales team

according to level of education.

2.6 Advertising and promotion strategy

The business will use electronic media to advertise its products .The image that I will project to

customer mend is that they have to dress up smart and decently in orders to be respected and also

to protect their bodies.

2.7 Distribution strategy

The business will ensure that its product reach the customers through use of a vehicle in order to

ensure that their products reach them. I will have a whatsapp group to know who has received

his or her product in time..

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CHAPTER THREE

3.0 ORGANIZATION PLAN

3.1 Purposes

3.2 Organization
I will be the manager of the business .i will ensure that employ qualified personnel in order to

achieve the best.

Manager

Marketing team

Machine operators/sewing department

Machine technician

3.2.1 Duties of a manager

The managing director will have ;

 Diploma in fashion

 The owner of business

 Ensures running of the business

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  Paying all the employees

 Making all the decisions

 Motivating the team

3.2.2 Duties of marketing team

Marketing Annitas design products ,showcasing the business product welcoming customers to

Annitas designs.

3.2.3 Duties of machine operator

Analyzing the designs,interpreting and cutting to come up with the garments. I will ensure that I

employ qualified machine operators who have acquired enough skills in garment making.

3.2.4 Machine technician

I will ensure that I employ a qualified technician who has pursued a certificate in workshop

layout and machine operation. His role is to ensure that all the machine are functioning and

working efficiently

3.2.5 Other personnel

Cleaning staff

Their role is to ensure that they clear the workshop to facilitate conducive environment for

workers.

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Watchguard

The role of the watchguard will be ensuring the project Annitas design business ensuring

security.

3.3 Supporting staff and services

3.3.1 Banking services

Annitas designs will open a bank account through a co-operative account to ensure that the

money deposited earn more interest to facilitate expanding to its film.

3.3.2 Insurance services

It will insurance premiums in order to protect it.I w will seek insurance are fire and theft .the

insurance will cost me five thousands per six months.

3.3.3 Consulting services

Consultant will be the managers kichakachi clothing industry. She will be guiding me on how I

will be ensuring that my business is operating well to bring best products.

3.3.4 Legal services

Annitas designs will have to seek a lawyers from Murang’a court.

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CHAPTER FOUR

4.0 PRODUCTION AND PREPARATION PLAN

4.1 FACILITIES/EQUIPMENT AND THEIR CAPACITY

Annitas designs will require the following equipment’s

Equipment No. required Cost of each item Total amount

Manual machine 4 12000 45000

Electrical machine 3 16000 43000

Over lock machine 1 10000 10000

Cutting tables 2 4000 3000

Writing board 2 1500 3000

Threads 10 10 100

Brown papers 20 10 200

Scissors 5 150 150

Plan papers 1 ream 500 500

Tailors chalk 1 doz 25 250

Simreaper 1doz 150 250

Bobbin &bobbin case 1 doz 150 1500

Sewing needle 3packets 25 75

Gum canvas 3mtrs 30 60

Material 30mtrs 500 10000

I will use that at the end of every week, there will be maintenance done to the machines. Annitas

designs will ensure there is expansion of the business in terms of equipment’s and facilities.it

will ensure addition of four machine and one electrical machine.

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4.2 FIRM LAYOUT
Entrance

Reception

Cutting area

Sewing workshop store

Display unit

4.3 Production strategy stages in production

Purchasing raw materials receiving raw materials

Selling coming up with final products storing issuing to production

department

Factors likely to affect the production process will include delay of raw material by suppliers

high taxation ways of dealing with above factors ensuring that the raw materials are ordered

early enough.

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4.4 Regulations affecting operators

4.4.1 Health regulations

I will ensure that the staffs have medical checkups of every end of five months. I will also

ensure that they work in a conducive and clear environment.

4.4.2 Safety regulations

Annitas designs will ensure that it has a first aid kit ,in case any accident happen to anyone, it

will also have set up rules to the workers in order to avoid accidents.

4.4.3 Environmental regulations

Annitas designs will ensure that it lays a big role in environmental conservation clubs in order to

take part in e.g. tree planting days. It will ensure it burns unwanted rubbish or pieces of

materials.

CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 Pre-operational costs

Market research

Advertisement

Licensing

Insurance

Water and electricity bills

5.2 Working capital

Working capital is current assets- current liabilities

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Current assets current liabilities

Stock 55600 creditors 53000

Stationeries 2000 bank overdraft 42600

Cash 4900

Total 62500 42600

CA-CL= 62500-45500=17000 working capital

5.3 PROFOMA INCOME

Cost of sales 200000

Opening stock 90000

Added purchase 50000

Less cost of sales 490000-150000

Gross profit 340000

Less other expenses

Salaries 60000

Rents 72000

License 5000

Net profit 127000

5.4 Profoma balance sheet

The balance sheet will show the financial position of the business for a period of one year

Fixed assets long term liabilities

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Machine 31000 loan 4700

Motor vehicle 50000

Buildings 70000

Current assets capital and liability

Stock 5600 current liabilities

Stationers 2000 creditors 53000

Cash 4900 bank overdraft 42600

Balance sheet 2nd year

Fixed assets

Machine 31000

Motor vehicle 50000

Buildings 70000

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 5.5 Cash flow projection
Cash in sale Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total

Sales 40600 41000 45000 5000 52000 45000 45000 45000 46000 50000 5700 5000 50400

Rent received 61000 61000 7200 7500 6000 6500 7000 7500 6500 6000 7000 6000 19600

Discount 30000 4000 2500 5000 5500 2500 2500 3100 3100 5000 6000 7000 49100

received

Total 761000 57000 62500 63500 54100 54500 55500 55600 31000 7000 7800 710100

Cash out of

transport

Paying for 2000 40-00 2500 3000 1500 2000 2000 2500 3000 3500 2000 2500 53000

bills

Paying for 40000 11000 12000 12000 12000 11500 11600 12500 13000 14000 14000 140000 1147000

salaries

Allowing 500 700 700 600 600 600 700 600 750 300 360 900 31000

discounts

Rents 8000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000

Purchasing 4100 4500 5000 5500 6000 5000 5000 5000 6000 3000 9000 12100 55000

Total 159500 125200 134200 140500 311500 13400 129700 134100 145150 143300 157330 181900 403600

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5.6 Breakeven level
Total fixed cost-contribution unit

Contribution =sp-variable cost

Selling price = 4000

Marginal cost- 1000

Fixed-2000

4000-1000

Fixed=sh=3000

5.7 Desired financing

Item Amount

Pre-operational cost 20000

Fixed assets 15000

Working capital 30000

Total 65000

5.8 Proposed capitalization

Item Amount

Owners contribution 5000

Equity 10000

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Family members 15000

Loans 5000

Total 35000

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