BUSINESS PLAN

LION’S COMPUTER REPAIRS AND MAINTENANCES

P.O. BOX 1979,

KABARNET.
TEL. 0708275191
EMAIL: abigailjesang19@gmail.com

PRESENTED BY: ABIGAIL KIPRONO

INDEX: 5590020016

COURSE CODE: 1920

PAPER 1920/107

PRESENTED TO KENYA NATIONAL EXAMINATION COUNCIL

IN PARTIAL FULFILMENT FOR THE AWARD OF CERTIFICATE IN

INFORMATION TECHNOLOGY

SURPERVISOR: MR. TIREY

SERIES: JANUARY 2021

DECLARATION

I Abigail Kiprono declare that the business plan is my original work and has not been presented

to any other institution. Either to degree, diploma, or certificate.

NAME: ABIGAIL KIPRONO

ADM NO. CIT/15415/19

SIGNATURE: _______________________ DATE: _______________________

SUPERVISOR’S NAME: MR. TIREY

SIGNATURE________________________ DATE: _______________________

i
ACKNOWLEDGEMENT

First, I am most grateful to the Almighty God for good health during the time of my studies as

well as while carrying out my research. I express my sincere appreciation to my lecture for the

professional guidance, advice, and tireless effort that have made this to be successful.

Finally, I acknowledge and salute everyone who contributed towards the successful completion

of this research. May the Almighty God bless you.

ii
DEDICATION

I am proud to dedicate this work to my loving parents, sister, and brothers for their

encouragement, moral and financial support towards the completion of my studies. Thank you

may God bless you.

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 TABLE OF CONTENT

Declaration…………………………………………………………………………………………………………………………………………..i
Acknowledgement………………………………………………………………………………………………………………………………..ii
Dedication…………………………………………………………………………………………………………………………………………….iii
Executive summary……………………………………………………………………………………………………………………………….iv
Executive summary……………………………………………………………………………………………………………………………….v
CHAPTER ONE
1.0 Business description…………………………………………………………………………………………………………………………1
1.1 Business location and address………………………………………………………………………………………………………….1
1.2 Business ownership………………………………………………………………………………………………………………………….2
1.3 Products/ services offered……………………………………………………………………………………………………………….3
1.4 Justification of the business …………………………………………………………………………………………………………….3
1.5 Industry …………………………………………………………………………………………………………………………………………..4
1.6 Short term and long term goals………………………………………………………………………………………………………..4
1.7 Entry and growth strategy………………………………………………………………………………………………………….…….5
CHAPTER TWO
2.0 Marketing plan…………………………………………………………………………………………………………………………………6
2.1 Customers………………………………………………………………………………………………………………………………………..6
2.2 Competition……………………………………………………………………………………………………………………………………..6
2.3 Market share…………………………………………………………………………………………………………………………………….6
2.4 Advertising and promotion ……….……………………………………………………………………………………………………..7
2.5 Pricing strategy ………………………..………………………………………………………………………………………………………8
2.6 Distribution strategy………………………………………………………………………………………………………………………...8
CHAPTER THREE
3.0 Organization plan…………………………………………………………………………………………………………………………….. 9
3.1 Organizational structure…………………………………………………………………………………………………………………… 9
3.2 Management …………………………………………………………………………………………………………………..………………10
3.3 Other personnel ……………………………………………………………………………………………………………………….…….11
3.4 Recruitment and training of staff…………………………………………………………………………………………………..…11
3.4.1 Recruitment………………………………………………………………………………………………………………………..……….11
3.4.2 Training……………………………………………………………………………………………………………………………………..…11
3.5 Licenses, permits and by-laws…………………………………………………………………………………………………………12
3.5.1 Licenses………………………………………………………………………………………………………………………………………12
3.5.2 Permits………………………………………………………………………………………………………………………………………..12
3.5.3 By-laws……………………………………………………………………………………………………………………………………..…12
3.6 Support services, banking services, insurance legal…………………………………………………………………………12
3.6.1 Banking services…………………………………………………………………………………………………………………..………12
3.6.2 Insurance services…………………………………………………………………………………………………………………..……13
CHAPTER FOUR
4.0 Operational plan………………………………………………………………………………………………………………………………14
4.1 Production facilities ………………………………………………………………………………………………………………………..14
4.2 Production strategy…………………………………………………………………………………………………………………………16
4.3 Raw materials………………………………………………………………………………………………………………………………….16
4.4 Production process………………………………………………………………………………………………………………………….17
4.5 Regulations affecting operations……………………………………………………………………………………………………..17
CHAPTER FIVE
5.0 Financial plan…………………………………………………………………………………………………………………………………..18
5.1 Pre-operational cost…………………………………………………………………………………………………………………………18
5.2 Working capital ……………………………………………………………………………………………………………………………….19
5.3 Cash flow projections ………………………………………………………………………………………………………………………19
5.4 Balance sheet ………………………………………………………………………………………………………………………………….21
5.5 Break even analysis………………………………………………………………………………………………………………………….22
APPENDIX………………………………………………………………………………………………………………………………………………24
EXECUTIVE SUMMARY

BUSINESS DESCRIPTION

The business will operate under the name “lions repair and maintenances.” The business will be

located in Kabarnet town along Kenya Women Funds Bank.

The address of the business will be:

LION’S COMPUTER REPAIRS MAINTAINANCES

P.O. BOX 1978,

KABARNET

MARKETING PLAN

Lion’s computer repairs and maintenances will have two categories of customer. Commercial

customers and individual customers. Commercial customers are customers who will buy the

products in bulk and will be selling them. Individual customers who will buy the product and

services from business for their personal use.

They will include residents in the surrounding areas in Kabarnet town.

ORGANIZATION PLAN

Lion’s computer repairs and maintenances will have a total number of eight employees from the

manager up to security offices. There will be recruitment and training to get qualified workers.

iv
OPERATION PLAN

Having the right facilities to start Lion’s computer repairs and maintenances will not only

enhance efficiency in productivity but will also ensure production of quality products.

FINANCIAL PLAN

Creation of documents consisting pre-operation cost the flow projections, balance sheet of

liabilities statement of goods manufactured, income statement, and breakeven point with fixed

cost and variable cost per unit.

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 CHAPTER ONE

1.0 Business description

The business operation under the Lion’s computer repairs and maintenance is located in

Kabarnet town along Kenya Women Funds Bank.

1.1.1 Background of the owner

The owner is Abigail Kiprono. She is 24 years old. Marital status, not married. Education

background Certificate in Information Technology in Chepsirei Technical Vocational College.

Kenya Certificate of Education in Kapluk High School. Skilled to do repair and maintenance.

1.1.2 Business name

The business name is Lion’s computer repair and maintenance. I selected this name Lion’s which

stands for famous person in town who knows how to repair and maintenance of computers.

1.1.3 Business location and address

The business will be located at Kabarnet near the Kabarnet market along the building in Kenya

Women Funds Bank. The business will grow due to the near institutions like government officers

for example governor office and schools.

1
The address of the business will be:

LION’S COMPUTER REPAIR AND MAINTENANCE,

P.O. BOX 1978.

KABARNET.

GOVERNOR OFFICE
K.C.B
HOSPITAL

KABARNET BOYS HIGH SCHOOL

ITEN-KABARNET HIGHWAY KABARNET SHOW GROUND

LION’S COMPUTER
REPAIRS & KABARNET MARKET
MAINTENANCE

KENYA WOMEN
FUND BANK

Map .1

1.2 Business ownership

The business will be sole proprietorship. The owner of the business is one person, the decision-

making allows such as expansion of business.

1.2.1 Type of business

This business is a start-up. Business will be operated in September 21 2020. Early 2021 the

business will be well equipped due to having enough capital to expand it.

2
1.3 Products and services offered

The aim of the business is maintenances of various types of computers, laptops, phones which of

various sizes, colors, and quality. The computer will be sold repairs of computer and

maintenances. The customers will get service in flexible price. The services offered will be

phones and a warranty when a customer’s computer will be repaired.

Repairs Kshs.

Computer 3000

Charging parts 6000

Phones 2000

printer 4000

Table .1

Maintenances Kshs.

Computer 3000

Phones 1000

printers 2000

Table .2

1.4 Justification of the opportunity.

Having surveyed the area, the business will be in a position to prosper because of the availability

of many computers in the area that require all the facilities offered by the business.

Demand for the services will be very high since various computer stores are around. In addition,

the good road network will enable the delivery of the services when required by the customers.

3
1.5 Industry

The business is the Information Communication Technology Industry. The service industry has

also assisted a lot in providing a job to the many jobless people of the country of Kenya. It has

also earned the country a lot of income through taxes thus improving the economy.

1.6 Goals/ objectives of the business

1.6.1 Goals

✓ Acquire potential customers of the target population

✓ Pay back half of acquired loans

1.6.2 Objectives

✓ Expand the business

✓ Exploiting the existing market

✓ Improving the living standard of workers in the business

✓ Serve the customers to their satisfaction

1.6.3 Short-term goals and long-term goals

The main aim of the business is to make profit and it will be achieved by building a beehive of

customers. The business also provides a need to created jobs for others. The business has the aim

of bringing the products close to the people thus satisfying their needs. The business also has the

aim of taking part in and influencing country government agendas and decisions.

4
1.7 Entry growth strategies

The business is intended to start its operation in the month December 2020. We intend to create

awareness through various ways like buying items and making promotional tours thus targeting

potential customers and then displaying the posters and handing out leaflets. The customers will

get better prices, they will be offered and benefits of working with us.

5
 CHAPTER TWO

2.0 Marketing plan

Kabarnet town is a growth town due to the location with a good infrastructure, which is

accessible to the business, presents the only competitors in the market; provide an opportunity to

venture the business of its all act as a level of competition. My service is offered to commercial

customers and individual customers with different prices.

2.1 Market share

Market share is the proportional that a business has out of total market. The bigger the market

share the higher the sales volume and more it is profitable.

The sizeable market shares facilitate the introduction and acceptance of a new product and

services to supplement of already existing product and services.

BETA REPAIRS &

MAINTENANCES

40%
LION’S COMPUTER REPAIRS &
MAINTENANCES
60%

6
2.2 Methods of advertising and promotions

2.2.1 Advertising

Advertising will be done to inform, persuade, and encourage people to come for the services of

repair and maintenances.

Lion’s computer repairs and maintenances will use the following methods of advertising:

I. Posters

Posters will be designed to bear the name and address of the business. Its location and the

services offered by the business.

II. Sign boards

These will be put on the roadsides to inform the pedestrians about the business and the

services.

III. Radio stations

The business is to use radio stations for advertisement to reach people all over the

country.

2.2.2 Promotion

Lion’s computer repairs and maintenance will carry out promotions to increase awareness in the

society in order to increase the service volume. Frequent customers will be requested to give

their telephone numbers in order for their business.

7
2.3 Pricing strategy

A market survey will be conducted to determine the prices of the products of the customers,

which will be determined by considering the cost of production, cost of raw materials and

targeted profit.

2.4 Distribution strategy

Individual customers will come to Lion’s computer repairs and maintenances to get their services

while commercial customers will come to the business and place orders after which services will

be delivered to their premises. Order placed via my email or by phone call will be honored and

fulfilled as soon as possible. The business van will be used for transportation of the products.

8
 CHAPTER THREE

3.0 Organization and management

3.1 Organization structure

Manager

Technician Shop attendant Distributor Reception

Machine

Operation

Position Qualifications Duties Salary

Manager ✓ Must be a degree ✓ Declaration of Varying according

holder in business duties of to the month net

administration workers profit of the

✓ Have good ✓ Formulation of business

management skills implementation

policies

9
 and experience of at organized and

least 5 years control business

operation

Technician ✓ Must be a degree ✓ Assist the Kshs. 20,000

holder in ICT manager

✓ At least 2 years’ supervise the

experience business

Receptionist ✓ Must be a holder of a ✓ Direct Kshs. 15,000

secretarial diploma customers and

✓ Must be compose suppliers

literate good ✓ Typing business

communication skills letters

Driver ✓ Must possess a ✓ Deliver goods Kshs. 8,000

driving license ✓ Acts as a

✓ At least three years’ messenger

experience

Machine ✓ Must be a qualified ✓ Repair and Kshs. 12,000

operator technician maintenance of

✓ Minimum of three computers

years’ experience

Shop attendant ✓ Must be 25 years of ✓ Direct Kshs. 6000

age or above customers to

the service

10
 ✓ Good communication ✓ Acts as cashier

skills ✓ Stock tackily

✓ Should have a

diploma in Business

administration

Total Kshs.

71,000

Table.3

3.3 Other personnel

The business will hire auditors who will help to carry out auditing and legal officers will be

needed.

3.4 Recruitment and training of staff

3.4.1 Recruitment

The applicants with the right qualification will be done where there will be short listing for an

interview. After the interview, letters will be sent to the applicant who will have qualified. This

will contain the date and day to commence.

3.4.2 Training

After recruitment has been done, there will be an orientation to familiarize the employees with

their work. This will include on job training and organizing working areas will be offered by the

business for both old and new employees.

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3.5 Licenses/ permits and by-laws

3.5.1 Licenses

The business will have a training license, which will be acquired from the commerce and trade

industry at a fee of Kshs. 2,000 and it will be renewed on a monthly basis.

3.5.2 Permits

There are operation permits will be renewed annually at the Kabarnet county offices at a fee of

Kshs. 500

3.5.3 By-laws

These are rules and regulations issued by the local government. They will include income tax,

personal health safety.

3.6 Support services, banking services, insurance legal

3.6.1 Banking services

The Kenya Commercial Bank in Kabarnet town will give these services.

12
3.6.2 Insurance services

The business will be insured against fire and will ensure its employees against injuries in their

various working places around Lion’s computer repairs and maintenance. AMACO insurance

company will offer the service.

13
 CHAPTER FOUR

4.0 Operational plan

Operational plan will help the business to strengthen their efforts to attain manner without

overstraining their resources. A tailored operational plan will endure harmonious relationship

between the various departments in the business.

4.1 Production facilities and capacities

To run the business smoothly a business should have all the facilities and capacities. This

includes tools and equipment, furniture and fitting. The equipment required by the business to

run successful.

Types of facilities List of equipment

Tools Soldering iron

Parts Hand lens

Writing materials Socket screw

Labels Flat screw

Cables Lackey

Gloves Star screw

Shelves Brushing wire

Tool box

thinner

Table.4

14
The following is the table of furniture and fittings the business will require in its operation.

Items Quantity Unit price Total price Sources

(Kshs.) (Kshs)

Tables 2 6,000 12,000 Amelo Ltd.

Chairs 10 700 6,000 Supermarket

Benches 2 700 14,000 Hill ten furniture

Desks 5 meters 1,000 5,000 Milan stores

Electric cables 10 400 4,000 Quantity electrics

Bulbs 4 60 240 Quantity electrics

Filling cables 1 1,000 1,000 Quantity electrics

Fire extinguisher 1 7,460 7,460 Antarch

Table.5

4.2 Firm layout

The operation firm layout refers to the various department of the business are located in the

premise to offer accessibility and various department will be located inside the premises.

15
 Store Manager’s office

Reception office Finance office

Table.6

4.3 Production strategy

Having the right facilities to start Lion’s computer repairs and maintenances will not enhance

efficiency in the productivity but will also ensure production of quality services that will meet

customers’ expectations, satisfactions, taste and preferences.

The tools, machines, and equipment will be purchased from Milan stores and Amelo Ltd. The

dealers will be chosen because of the after sale services they offer and guarantee of three months

on items sold.

16
4.4 Production process

These are organized activities, which take place in a routine manner. The business will involve

time consider in order to ensure harmonious relationship and instill responsibility to the

customers.

The customers give credit sale will be requested to pay through the business bank account or pay

cash on due date to avoid bad debt.

17
 CHAPTER FIVE

5.0 Financial plans

The financial plan shows the money to be used to start and run the business successfully. They

include:

Saving Kshs. 50,000

Banking loan Kshs. 100,000

Family Kshs. 50,000

TOTAL Kshs. 200,000

Table.7

5.1 Pre-operational cost

The business will end pre-operational cost before its commencement and they include:

Item Amount (Kshs.)

Premises and renovations 15,000

Machines and equipment 95,000

Stationery 20,000

Permits and licenses 6,000

Advertisement 3,000

Electricity 5,000

Water 15,000

Telephone 6,000

Insurance 10,000

18
 Transport 10,000

Stock 20,000

TOTAL 196,000

Table.8

5.2 Working capital requirement

Cash = Capital – pre-operational cost

Kshs. 700,000 – Kshs. 196,000 = Kshs. 504,000

Out of the Kshs. 504,000, Kshs. 300,000 banked, and Kshs. 204,000 was in hand.

5.3 Lion’s computer repairs and maintenances cash flow projection.

Cash flow projection

New current assets (N.C.A) Kshs.

Premises 15,000

Machine equipment 95,000

TOTAL 110,000

Table.9

Current assets (C.A) Kshs.

Cash at hand 204,000

Cash at bank 300,000

Prepaid license and permit 6,000

Prepaid stationery expense 20,000

19
Prepaid insurance 10,000

Prepaid advertisement 6,000

Prepaid telephone 3,000

Prepaid electricity 15,000

Prepaid water 5000

Prepaid transport 1000

Stock 20,000

TOTAL 590,000

TOTAL (C.A + N.C.A) 590,000 + 110,000

Table.10

Finance by owner’s KCB Kshs. 300,000

Friends and relatives Kshs. 200,000

Bank loan Kshs. 200,000

TOTAL Kshs. 700,000

Table.11

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5.4 Performa balance sheet Lion’s computer repairs and maintenances

Balance sheet as at 1 September 2019

Fixed assets Capital Kshs.

Premises Loan 120,000

Machinery Long term liability 95,000

TOTAL Kshs. 215,000

Current assets Kshs. Kshs. 1,186,000

Cash in hand Kshs. 300,000

Cash in bank Kshs. 938,000

Stock debtors Kshs. 269,000

TOTAL Kshs. 2,693,000

TOTAL (FIXED ASSESTS + CURRENT 2,693,000 + 215,000

ASSESTS)

TOTAL Kshs. 2,908,000

Table.12

Financed by: Kshs.

Owner’s KCB 300,000

Net profit 2,208,000

Friends and relatives 200,000

Bank loan 200,000

Table.13

21
5.5 Break-even point

This is the level at which the business can remain in operation without making any profit or loss.

B.E.P = Fixed cost contribution/ sales

Fixed cost Kshs.

Rent 120,000

Insurance 18,000

Equipment 95,000

Salaries 71,000

Permits 6,000

TOTAL 302,000

Table.14

Variable Cost per unit

Water 10

Electricity 20

Transport 5

Stationary 25

TOTAL 60

Table.15

Return on capital

Net profit x 100% = Kshs. 2,208,000 x 1000

Capital = Kshs. 700,000

22
Return on KCB capital

Net profit x 1000 = Kshs. 2,208,000

Owner’s KCB = Kshs. 300,000

= 73.6%

Proposed capitalization Kshs.

Owner’s KCB 300,000

Friends and relatives 200,000

Bank loan 200,000

TOTAL 700,000

Table.16

Desired financing Kshs.

Owner’s KCB 300,000

Bank loan 500,000

Friends and relatives 100,000

Table.17

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APPENDIX

Map 1……………………………………………………………………………………………………………………………….2

Table 1………………………………………………………………………………………………………………………………3

Table 2………………………………………………………………………………………………………..…………………….3

Table 3…………………………………………………………………………………………………….………………………..11

Table 4……………………………………………………………………………………………………….……………………..14

Table 5………………………………………………………………………………………………………………………………15

Table 6………………………………………………………………………………………………………………………………16

Table 7…………………………………………………………………………………………………………..………………….18

Table 8…………………………………………………………………………………………………….…….………………….19

Table 9………………………………………………………………………………………………………….…………………..19

Table 10…………………………………………………………………………………………………………………………….20

Table 11…………………………………………………………………………………………………………………………….20

Table 12…………………………………………………………………………………………………………………………….21

Table 13…………………………………………………………………………………………………………………………….21

Table 14…………………………………………………………………………………………………………………………….22

Table 15…………………………………………………………………………………………………………………………….22

Table 16…………………………………………………………………………………………………………………………….23

Table 17…………………………………………………………………………………………………………………………….23

24