ALPHA COMPUTER SOLUTIONS

PRESENTED BY
: NG’ANG’A LINA NJERI

INDEX NO : 2060010145

COURSE NAME : CERTIFICATE IN INFORMATION COMMUNICATION TECHNOLOGY

COURSE CODE : 1920

INSTITUTION : NIBS TECHNICAL COLLEGE

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL IMPARTIAL

FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF

CERTIFICATE IN INFORMATION COMMUNICATION TECHNOLOGY

EXAMINATION SERIES: NOVEMBER 2021

 DECLARATION

I declare that this is my original work and it has never been presented before to any other examination body for
the award of Certificate in Information Communication Technology.

Name : NG’ANG’A LINA NJERI

Signature:

Date :

The business plan has been submitted to the Kenya National Examination Council with the approval of my
supervisor.

Name :

Signature :

Date :

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 DEDICATION
I dedicate this particular business plan to the Almighty God for the gift of life and blessing me with knowledge
and strength to write it. Also to my lovely family members in particular my mum, dad and my sister who
contributed a lot towards this undertaking and documenting it.

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 ACKNOWLEDGEMENT
I take this golden opportunity to acknowledge my Almighty God. Special thanks go to my lovely mum, dad and
my lovely sister who assisted me financially and morally towards the launch of this venture.

I would also like to express my sincere gratitude to all my fellow classmates with whom I worked together hand
in hand to ensure the success of this undertaking.

I cannot forget to thank the entire NIBS fraternity for providing such a conducive environment for studying and
especially to all lecturers involved and in particular my supervisor Mr.Baraza who played a great role ensuring
that the work done meets the standard required.

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TABLE OF CONTENTS

Declaration...........................................................................................................................................pg

Dedication………………………………………………………………...………………………….pg

Acknowledgement……………………………………………………………………………………pg

List of Tables

Table 1.1 (Business Description)……………………………………………………………………..pg.

Table 2.3 (Competition)………………………………………………………………………………pg

Table 3.3 (Duties and Responsibilities)……………………………………………………………….pg

Table 3.6.1 (Remuneration)…………………………………………………………………………...pg.

Table 4.1.1 (Machines, Tools and Equipment)……………………………………………………….pg

Table 5.1 (Pre-operational costs)……………………………………………………………………..pg.

Table 5.2 (Working Capital)………………………………………………………………………….pg

Table 5.3.1…………………………………………………………………………………………….pg

Table 5.3.2…………………………………………………………………………………………….pg

Table 5.3.3…………………………………………………………………………………………….pg

Table 5.4………………………………………………………………………………………………pg.

Table 5.5……………………………………………………………………………………………...pg.

Table 5.6………………………………………………………………………………………………pg.

Table 5.8………………………………………………………………………………………………pg.

Table 5.9……………………………………………………………………………………………….pg

List of Figures

Fig 1.1 (Map)…………………………………………………………………………………………..pg.

Fig 1.6.3 (Bar graph)…………………………………………………………………………………..pg.

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Fig 2.2 (Pie chart)……………………………………………………………………………………..pg.

Fig 3.4………………………………………………………………………………………………….pg

Fig 4.1.2………………………………………………………………………………………………..pg.

Executive Summary…………………………………………………………………………………….pg

1.0 Business Description…………………………………………………………………………….….pg

2.0 Marketing Plan………………………………………………………………………………….......pg.
3.0 Organization and Market Plan……………………………………………………………………....pg.
4.0 Operational Plan……………………………………………………………………………………..pg.
5.0 Financial Plan…………………………………………………………………………………….….pg

Chapter One

BUSINESS DESCRIPTION

1.1 Background of the Business Owner…………………………………………………………………pg.

1.2 Business Name and Location………………………………………………………………………..pg.
1.2.1 Business Name…………………………………………………………………………………..pg.
1.2.2 Business Location and Address………………………………………………………………...pg.
1.3 Forms of Business Ownership………………………………………………………………...…….pg
1.4 Products and Services…...pg.
1.4.1 Products……………………………………………………………………………………...….pg
1.4.2 Services……………………………………………………………………………………...…..pg.
1.5 Justification of the Business Opportunity………………………………………………………..…pg.
1.6 The Industry………………………………………………………………………………………...pg.
1.6.1 Industry Size…………………………………………………………………………………….pg
1.6.2 Industry Characteristics………………………………………………………………………....pg.
1.6.3 Industry Trend…………………………………………………………………………………..pg.
1.6.4 Industry Future………………………………………………………………………………….pg
1.7 Goals of the Business……………………………………………………………………………….pg
1.7.1 Short term goals…………………………………………………………………………………pg.
1.7.2 Long term goals………………………………………………………………………………....pg.
1.8 Entry and Growth Strategy………………………………………………………………………….pg
1.8.1 Entry Strategy………………………………………………………...…………………………pg.
1.8.2 Growth Strategy…………………………………………………………………………………pg.
1.8.3 SWOT Analysis…………………………………………………………………………………pg.

Chapter Two

MARKETING PLAN

2.1 Potential Customers…………………………………………………………………………….........pg.

2.1.1 Households……………………………………………………………………………………....pg.

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2.1.2 Schools…………………………………………………………………………………………...pg.

2.1.3 Passers-by………………………………………………………………………………………..pg.

2.2 Market Share………………………………………………………………………………………....pg.

2.3 Competition………………………………………………………………………………………......pg.

2.4 Promotion and Advertising Strategy………………………………………………………………....pg.

2.4.1 Promotion (Promoting Products)………………………………………………….....................pg.

2.4.2 Advertising………………………………………………………………………………………pg.

2.5 Pricing Strategy……………………………………………………………………………………....pg.

2.6 Sales Tactics…………………………………………………………………………………………..pg.

2.7 Distribution Strategy………………………………………………………………………………….pg.

Chapter Three

ORGANIZATION AND MARKET PLAN

3.1 Management Team…………………………………………………………………………………pg.

3.2 Functions and Roles of Managers…………………………………………………………………..pg.

3.2.1 Functions of Managers…………………………………………………………………………pg.

3.2.2 Roles of Managers……………………………………………………………………………..pg.

3.3 Duties and Responsibilities………………………………………………………………………….pg.

3.4 Organizational Chart………………………………………………………………………...………pg.

3.5 Recruitment, Training and Promotion……………………………………………………………….pg.

3.5.1 Recruitment………………………………………………………………………………………pg.

3.5.2 Training……………………………………………………………………………………………pg.

3.5.3 Promotion………………………………………………………………………………………….pg.

3.6 Remuneration and Incentives………………………………………………………………………pg.

3.6.1 Remuneration……………………………………………………………………………………pg.

3.6.2 Incentives………………………………………………………………………………………..pg.

3.7 Licenses, Permits and By-laws……………………………………………………………………...pg.

3.7.1 Licenses…………………………………………………………………………………………pg.
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3.7.2 Permits……………………………..……………………………………………………………pg.

3.7.3 By-laws…………………………………………………………………………………………pg.

3.8 Support Services……………………………………………………………………………………pg.

3.8.1 Banking Services…………………………………………………………………………………pg.

3.8.2 Insurance Services………………………………………………………………………………..pg.

3.8.3 Consulting Services………………………………………………………………………………pg.

3.8.4 Legal Services……………………………………………………………………………………..pg.

Chapter Four

OPERATIONAL PLAN

4.1 Production, facilities and capacity…………………………………………………………………….pg

4.1.1 Machines, Tools and Equipment…………………………………………………………………….pg

4.1.2 Firm Layout………………………………………………………………………………………….pg.

4.2 Production Strategy……………………………………………………………………………………pg.

4.3 Production Process……………………………………………………………………………………..pg.

4.4 Regulations affecting operation………………………………………………………………………...pg.

4.4.1 Health Regulations…………………………………………………………………………………..pg.

4.4.2 Safety Regulations………………………………………………………………………………….pg.

4.4.3 Environmental Regulations…………………………………………………………………………pg.

Chapter Five

FINANCIAL PLAN

5.1Pre-operational Costs……………………………………………………………………………………pg.

5.2 Working Capital…………………………………………………………………………………………pg.

5.3 Cash-flow Projection………………………………………………………………………………….pg.

5.3.1 Cash-flow projection for the Year 2022…………………………………………………..………...pg.

5.3.2 Cash-flow projection for the Year 2023……………………………………………………………..pg.

5.3.3 Cash-flow projection for the Year 2024……………………………………………………………..pg.

5.4 Proforma Income Statements…………………………………………………………………………..pg.

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5.5 Statements of financial position………………………………………………......................................pg.

5.6 Break Even Analysis……………………………………………………………………………………pg.

5.6.1 Total Contributions……………………………………………………………………………………pg.

5.6.2 Contribution Margin Percentage………………………………………………………………………pg.

5.6.3 Total Fixed Costs……………………………………………………………………………………...pg.

5.6.4 Break Even Point………………………………………………………………………………………pg.

5.7 Profitability Ratios……………………………………………………………………………………….pg

5.8 Desired Financing………………………………………………………………………………………..pg.

5.9 Capitalization…………………………………………………………………………………………….pg

EXECUTIVE SUMMARY

CHAPTER ONE: BUSINESS DESCRIPTION

The proposed business is Alpha Computer Solution. The business is a sole proprietorship and it will be located
in Nakuru County along Njuri Ncheke Avenue on Biashara Plaza building, third floor room number 310.The

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proposed business will major in different computer packages and software’s and its major goal is to ensure that
the county gets the products, goods and services of high quality, quantity and high standards. It will also allow
the customers to access the products and faster. Hence the business is dealing with the computer software’s the
business owner will offer free delivery for the required products and services by the customers within Nakuru
County.

CHAPTER TWO: MARKETING PLAN

The proposed business potential customers will be households, schools and passers-by and the main competitors
of the business will be Swahiba’s Computer Solutions, Salit’s Computer Solutions and Malim Computer
Solutions .Since they have existed in the market for a period of time, it makes a major threat to the proposed
business. It will cub the competition in the marketing by offering software’s and products of high quality and at
slightly lower prices as compared to competitors. The promotion strategy to be adopted is personal selling and
exhibitions and while advertising, it will be done by use of posters and social media which are cost effective.
Both the selling tactics and distribution strategy will be direct and indirect using intermediaries.

CHAPTER THREE: ORGANIZATION PLAN

The owner of the proposed business will be the manager and will be supported by operation manager and
subordinate staff in the business. The manager and his subordinates will have certain academic qualifications
and experience for the business to run smoothly. The subordinates will include sales people, supervisor and a
security guard. The business will adopt external sources of recruitment and the training methods to be used will
be induction and on the job training, the employees will be promoted based on seminars, skills and merits. The
remuneration and incentives will be fair and the business will have license, several permits and by-laws to
follow and also several support services to enable it to run its business effectively.

CHAPTER FOUR: PRODUCTION PLAN

The proposed business will be operational on a full-time basis where each staff will have to work full-time to
enable high production. The proposed business will contain facilities for production and services that will
enhance the business to run smoothly. It will also have strategies to enhance production like storage facilities,
product price and motivation. The business will also require skills that will be needed by the employees through
professional training on how to handle software’s. The business will also conform to the laws by offering safety
regulations in the business such as health, environment and risks that may occur as damage to the products.

CHAPTER FIVE: FINANCIAL PLAN

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The proposed business capital was 1,000,000, the total pre- operational cost was 161,000,working capital was
325,000, the financial position as at 31st December 2022 is 887,450 and the desired financing was 933,000.

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