MACHAKOS UNIVERSITY

BUSINESS PLAN
SOMA BOOKSTORE
P.O BOX 1910
KISII.
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SCHOOL:PURE AND APPRIED SCIENCES
COURSE:MATHEMATICS AND COMPUTER
SCIENCE
UNIT:INTORODUCTION TO
ENTERPRENUERSHIP
PRESENTED BY:BRIAN CHUMA OMWENGA
REG NO.S09-4020-2019
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 DECLARATION
I hereby declare that this business plan is my own
work.
Name ………………………………………………………. Sign ….……………..
Reg no ………………………………………………….……. Date ………………….
CHAPTER ONE BUSINESS DESCRIPTION
Soma bookshop will be sole proprietorship.I will be the
manager of the business and I will aldo appoint an operating
manager in running the business.
The sole proprieter form has the following advantages
A]one becomes his/her own boss
B]one enjoys all the profits realized by the business
C]quick decision making
D]requires small amount of capital to start
OWNER”S DESCREPITION
I am Brian Chuma Omwenga.I stay in Machakos.I intend to start
this business since am skilled and also educated.
NAME OF THE BUSINESS
The name SOMA BOOKSTORE is easily understood and
memorable to many people.The name soma translates to
READ.
VISION OF THE BUSINESS
To make the market reader of quality products.
MISSION OF THE BUSINESS
To provide educational products at the lowest prices to our
customers.

BUSINESS OBJECTIVES
A]To provide quality products
B]To assemble various reading materials to reference.
C]To avail books required by our potential customers
D]To expand the business to other parts of the county.
E]To realize a profit of sh.200000 at the end of the year.

BUSINESS VALUES
 Hardworking
 Transparency
 Trustworthy
 Patience
 Honesty
BUSINESS LOCATION AND ADDRESS
SOMA BOOKSTORE will be located at kisii town along kisii road
Address
SOMA BOOKSTORE
P.O BOX 1910
KISII.
EMAIL:somabookstore@gmail.com
CONTACTS:0718278528
The location will be convenient because;
It is closer to the central business district where there is ready
market.
The location is easily accessible by many.
PRODUCTS AND SERVICES
Soma bookstore will offer the following;
1]Delivery
SOMA intendes to offer delivery services for customers who
buys in larger volumes.
2]Library facilities
We will provide study rooms with ample environment.

3]internet services
We will install WI-FI in our premises for our customers to enjoy
free browsing.

GROUTH STRATEGY
Due to rapid increase in the number of leaning institutions that
require our facilities,there is possibility of exapanding.Also
the number of students is increasing day in day out.
ENTRY STRATEGY
During the opening of the the business,I will make aware the
public and other leaning institutions on the business. I will
employ various modes of advertising.I will also install
billboads.During the first month I will give 10pct
discount.Also I will be giving out free gifts.
KISII
TELL:0718278528

ADVANTAGES OVER COMPETITORS

 Closeness to the town center
 Long established hence well known
 Sponsored by the government thus high finance
 Offer delivery services
 Fair pricing

METHODS OF PROMOTION
Advertising
Occationally I will advertise my business in media.

Pricing
I will set convernient and affordadle prices but considering
other costs.
COST OF PRODUCTION
This includes transportation cost,payement of employers
and the cost that incurs after offering after sell services to
the customers.

Demand for services

The demand for this services is facilitated by the boom

and recession period in the business cycle as it offers this
service.This is because during thi period schools are
opened and students are going back to school.this implies
that more sales are made during this period as the
demand rapidly increases.
Credit and discount to be offered for those who will be
buying in large volumes a discount of 10% will be
allowed.This will facilitate more sales as the clients wil
intend to buy more so as to get the discount.
Also credit purchases will be offered.First the credit
worthyness of the customers must be considered.
By giving credit facilities and discounts to the customers,it
will enable morae sale hence more profits generated.This
will lead to growth and expansition of the business hence
a method to outdo competitors.
SALES TACTICS

1.Direct sales
I will employ sales personnel to facilitate the process.

2.Credit facilities
Credit purchases will be offered to regural customers.

3.Sales force
Spread and relatively cheap to many of the customers to
avoid much expenses.This will reduce the cost of
transportation that can be incurred.

Those who will be involved in the distribution process

should have well link of interconnections with the clients
for easy delivery of goods.

MARKETING SHARE
I will like to start with a market share of 20%.This is
because to the business is starting and competing with
already existing businesses.By this I will make use of the
potential customers to realize the market share.I will use
extensive advertisiments to ezxpand the market.
As the business continues to grow,at the end of year my
business market share will be between 30-40%.This is
realistic since the plans that I have place will be a motive
to achive them.
 CHAPTER 3 ORGANISATION PLAN
INRODUCTION
For and every business to succeed all the workers has to
work as a team.
Organization plan describes how the business shall be
managed.It gives out a clear outline on the flow of
authority in the business.
BUSINESS MANAGER
I will be the manager of the business.
Duties and responsibilities of a manager
 Supervising all the business activities and emplorees
 Delegation of authority to the juniors
 Hiring training of employees
 Development and implementation of new projects
 Ensuring all the employees follow the terms and
regulations of the business.
 KEY MANAGEMENT PERSONNEL
 The business shall involve the following personnel in its
operations.The following are there titles;
 Operating manager
 Accountant
 Sales and marketing manager
PERSONNEL QUALIFICATIONS
RECRUITMENT OF TRAINGING AND PROMOTION
During recruitment of employees, transparence and
accountability will be given to all the applicants on the basis of
merit.Each of the applicant will be treated equally as
others.Application will be sourced through the following ways;
 ADVERTISING
This will be done through the media.
 APPLICATION
This will be done through the email.
 SHORTLISTING OF THE APPLICATION
The applicants who will meet the minimum requirements will
be shortlisted for interview.
 INTERVIEW
It will conducted on the basis of questioning the applicant
regarding their capabilities and perfomances on their previous
job.They will also interview them on their personal
achievements.
 SELECTION
They will be selected according to their competences.
 TRAINING
LEGAL REQUIREMENTS
BUSINESS PERMIT
The business should be allowed to operate by the government.
STAMP DUTY
I will be required to pay a duty of memorandum and articles of
association, registration by KRA.I will be required to file the
certificate of registration and submit to the authority.
SUPPOTIVE SERVICES
Banking services I will source banking services by opening a
current account.This will enable me to borrow and draw the
amount at the front office.
Book keeping and accounting servicesThe accountant should
keep the books of accounting and avail after every one month
to the manager for check-ups.
Legal services
This will be sourced from Chuma advocates on behalf of the
business and clients.
Insurance
I will take an insurance cover for may business at ERS Insurance
company.The cover will be against fire and theft.
Security services
I will install CCTV cameras and also employ guards.
CHAPTER FOUR; OPERATION PLAN
INTRODUCTION
This involves putting plans in place to communicate on how the
operations of the business shall be carried out.It also involves
the organizational management on how they are involved in
process of production and offering of the services.
Production facility and capability
These are all the requirements that assist in the production
process.This includes capital,premises,tools and equipments
Capital
My business will require an approximation of sh. 1million.I
intend to sourse this from
 Personal savings
 Investment sale
 Borrowing from relatives and friends
 Loan from bank

PREMISES OF OPERATION
This premises are located along kisii road.They will cost
approximately sh.100000 per month.The work space for
expansion will be expanded by investing more on the business.
TOOLS AND EQUIPMENTS
This will be sourced by tendering services such as
carpentry,plumbing,welding.This business requires installation
of tools and equipments before the business will commence its
operations.They will cost up to sh.2 M

LABOUR
I will employ skilled personnel since they have competence and
also have the right qualifications that suit them for the job.
PRODUCTION STRATEGY
Monthly requirements for my business are those that assist to
meet its operational requirements including facilities.They will
cost upto sh.102000 .The foolowing will be purchased during
the month;

Material sourse Unit cost Total cost

pens bic Sh.200each 4000
Office pins lend Sh500each 800
ink pend Sh.500each 2000
boxes mud Sh.200each 5000
receipts karatasi Sh.1000each 4000
I will offer transport facilities and front office sevices that are
necessary to the customers.This will make my customers like
purchasing from my bookstore.This will also be provision of
library and internet services to ensure that my clients access all
the information they may require for their studies.Library fees
will be sh.100 for adults for 3 hours and sh.50 for a child for the
same period and it is renewable after the time elapses.
EXTERNAL AND INTERNAL FACTORS
External factors
Legal factors;The government may pass rules that may favour
or discourage businesses.
Competitors;They may use advanced methods of attracting
customers thus reducing may customers.
Economic factors;Such as inflation will make the business to
loss to creditors.
Political factors;Intense political affaires make people to stay
indoors .
Internal factors
Management skills;poor managers can make poor decisions
that leads to failure.
Theft;there is risk of robbery.
Strikes;this leads to closure of the business.
CHAPTER FIVE FINANCIAL PLAN
INTRODUCTION
This covers the amount of capital required, the source of the
capital, income statement and balance sheet.
Important assumptions
The business is basing its assumption on a stable growth and
using the average interest rate.
Year 1 Year 3 Year 4
Plan month 1 2 3
Current 15% 15% 10%
interest rate
Long term 12% 12% 12%
interest loans
Tax rate 25% 25% 25%
Pre-operation costs
Repaire and maintanence 150000
Permits 15000
Licences 10000
Rent 150000
Water 2000
Electricity 10000
Total 337000
Working capital requirements
SOMA working capital
Rent 1200 1310 1290
Water 600 570 630
Transport 1570 1200 1050
Advert 1000 1420 1490
Stationary 288 300 350
Repaires 1710 1520 1640
Interest 823 800 720
Expenses 11601 11615 11652
Net profit 5932 7439 7693
Tax[20%] 1186 1487 1538
Net profit 47145 5951 6154
Pro-forma balance sheet
Particulars year 1 year2 year3
Fixed assets
Machinery 5500000 5500000 5500000
Acc. Dep. -300000 -200000 -100000
Building 1800000 2000000 2500000
Vehicle 1500000 1400000 1200000
Acc. Dep -100000 -200000 -150000
Funiture 500000 670000 750000