Professional Documents
Culture Documents
My sincere and kind gratitude goes to my father Evans Mose and my mum Perilus Nyancha and
my brother Kennedy Mandere ,Erick Mose and my sister Thruphena Kerubo and M<ercy
Kemunto for their moral and financial support for completion of this business plan.
Also acknowledge my friend Yunia Moseti and teacher concerned Rev Ndungu having assisted
and guided me to success for this report may Gods bless you.
DEDICATION.
A special dedication goes to my Friends ,Parents and Finally for love moral support and
encouragement that has made me to be what am.
DECLARATION.
I hereby declare that all contents in this booklet is my original work and has never been
submitted to any examination body.
SIGNATURE DATE.
SIGNATURE: DATE
EXECUTIVE SUMMARY.
The owner of the business proposed is GAUDENCIA MOSE aged 21 years and currently
undertaking final year studies in Rift valley Institute of Science and Technology. She s currently
undertaking a craft course in clothing and technology. The business name will be GADEYS
CEREAL SHOP. It will deal with products such as maize ,beans peas ,rice, groundnuts and
millet. It will be located at Nyamira along Kebirig Kisii road.
GAUDENCIAH MOSE.
NYAMIRA
TEL: 0728-380530
The major objectives of the business will be maximizing profits and provisions of quality
produces and services to the esteemed customers.
The business will venture into marketing its products to the following.
i) Individual customers.
This will include the local customers around the town who will buy the commodities for
domestic consumption.
This will include Nyambera High School, Nyamira Secondary .Ranges view academy and
Nyamira district hospital.
These will include Wamete hotel and blue line hotel .The competitor of the business will be
mama shalon ,wakulima stores and manage stores.Thses are parties who willing and have the
ability to entire into transaction with a business in an aim of trying to improve on services.
The business will venture as a sole proprietorship business so Gaudy cereal shop plans to
strategize the management in a way that it will place the right personnel with skills for the
business so gaudys cereal shop intends to employ the following personnel. The manager,
accounts clerk, salesman shop attendants and security man.
The products in this case will be maize ,millets ,sorghums ,groundnuts ,wheat ,rice, peas, yams
and beans will be brought from farmers in the rural areas and transported to the town. The
business will have to hire a lorry to transport the produce to town. The business will buy produce
durting harvesting time in large amounts as the prices are usually and stir them in business
premises.
The financial capability of GAUDEYS CEREAL SHOP will be basically depended on the
following finances.
The amount will be used for preparation expenses and the running of the business.
CHAPTER ONE.
The proposed business is a cereal shop located at Nyamra town. It will be dealing with buying
cereals from the farmers ,taking item to the town and selling them at a fair price.
The business will assist n fighting hunger as it will ensure it does not run out of stock throughout
the year.
The sponsor is GAUDENCIA MOSE. Aged 21 years and who resides in Nyamogwa sub
location Igare location, Sameta division, she was born in 18th June 1989 in Igare location where
she started his primary school at Nyamagwa primary in 1994. She finished his primary school. in
2002 she joined KIoge secondary school in 2006 after excellent performance in hois form for
exams .She was offered a job at cap well industries as an assistant sales manager where she
joined Rift Valley Institute of Science and Technology to pursue a craft curse in garment
making.
RELEVANT EXPERIENCE.
Starting his own business was an idea that comes into her mind after closely observing his aunt
who also runs a similar shop and assisting her day to day running of the business.
For about six months and the salesmanship skills she had obtained at the cap well industries ltd
also the course in garment making that she pursued not only provided her with adequate skills
and knowledge and a merit to experiment but also build a strong pillar in the practical filed of
work.
The business will be called GAUDEYS CEREAL SHOP. The name comes from the first name
GAUDENCIAH of the entrepreneur.
NYAMAGWA
TEL:- 0728-380530.
The business will be located in Nyamirea town 200m from Nyamira police station opposite
D.O’s office plot No 04570 at a building called millennium building.
The area was chosen for the proposed business after consideration of various factors as.
i) Good infrastructure.
The roads and are in good condition thus making transactions of the cereal from farmers to the
town easy.
This place has a high population of people thus making it easy to reach many customers .also
there are many hotels, academy schools, boarding secondary schools, colleges and hospitals.
Availability of police station a few metres from the business ensure a tight security.
The business will give booth wholesale and retail service to the customers’ .This is because a
part from distributing its products In bulk to hotels and institutions t will also give individual a
chance to buy the products in small quantity from the business premises.
The business will offer a variety of products according to the customers need and at a fair price
to attract more customers clean and high quality cereal will be offered since people have
occasionally complained of dirty cereals low quality cereal sold by the competitors this is what
the business will be working to correct. The business will offer discount to customers who buy
frequently and it will design a good and attractive display to its products.
The floor, walls counters will be cleaned daily using water to ensure that no dust prevails in the
room. This will help in ensuring that cereal is clean for human consumption. This will give the
business an advantage over its competitors because the only sweep the floor of their premises
hence dust always prevails hence making the customers to doubt the cleanliness of their
products.
a) Economic factor
As the products offered by the business are necessities of mankind the demand for them
increases as the population, it means such a cereal store will do well. Due to good climatic
condition in the area variety of crops grows very well but due to lack of sufficient market
farmers re usually exploited by the middlemen thus the business will offer a sufficient market for
the business. The business will also assist in fighting against hunger because it will ensure there
is availability of maize and other cereals through the year. The business will also offer self
employment since more people will be willing to do farming because of the availability of
sufficient market for their produce thus making use of the under utilized land resources available
in the area. The business will motivate farmers to grow crops like sorghum and millet which
usually dopes very well in the region but currently not grow due to lack of market.
The business is the agricultural and marketing industry in Kenya, the industry started during the
colonial periods when the British acquired the Africa highlands where they used to grow crops
and export them to their countries and then selling the surplus. It is in this industry where cannot
loose market because food is classified as a basic need for human survival. The business will
have a good strategy cheap prices that are convenient to customers thus enabling it to compete
will with other similar industries.
ii. To provide our customers with quality products at an affordable and fair price.
b) Medium goals
i. Ensuring that the business is recognized all over as modern and quality business.
ii. To be customers friendly and caring and also giving quality services to attract more
customers.
c) Long term goals
i. To decentralize development and offering job opportunity especially to the surrounding people.
ii. To make profit margin of 40% within one year and then expand the business by building
modern methods to protect the cereal from rodents and weevils.
iii. To attract at least five institutions or hotels in the town per year to become our customer
through better and quality produce and services.
a) ENTRY STRATEGY
The sponsor having gained adequate knowledge that is entrepreneur skills management skills
managerial skills tactics skills through training in born abilities and experience helps him to
operate the business successfully and obtain maximum profit. Through these skills she will
communicate the availability of goods products and services in order to satisfy potential target
market needs. This will be done through target market needs. This will be done through;
b) GROWTH STRATEGY
The sponsor is determined about the perpetual growth of the business in future. This is because
she will use the acquired knowledge and skills from learning to exploit the available resources so
as to emerge successfully. She will also ensure that capital invested in business is properly
allocated and used to have high return and minimum expenditure considerably.
CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMERS
Customers are the core necessity in any form of business and for each business customers vary
depending on the type of business and need there in this case the business plans to sell its
products to the following customers.
i) Potential customers
These are the customers located around the business to be started and also those from its
outskirts who will be willing to buy the products in wholesale or even retail.
These will be schools, primary, secondary or colleges, universities for their students’
consumption. The schools will include salient secondary school, Nyamira district hospital;
ranges view Academy and Gusii Institute of Science and Technology etc.
These will buy commodities / products in large quantity for resell purposes and for use in their
business for example Bata bata hotel, Kanyoni hotel, Iga matt supermarket etc.
There is no age limit for my customers or any restrictions as to income, gender or occupation and
due to the business principles and dedication towards serving its customers well.
2.2 COMPETITION
i) Wakiluma stores
This business located 500m freom Nyamira market. The size is medium in relation to other
competitors and it offers a variety of cereals.
Strengths
It is located in an open area where it is accessible to customers duie to large population in the
market.
Weaknesses
Strengths
Weaknesses
They do not offer large variety of cereals they offer only maize and beans
Although they offer fair prices their products are of low quality.
Strengths
Weaknesses
They have less working houirs ie they opens at 2.00pm and closes at 4.00 pm.
Gaudy’s Cereal Shop will be examining the avriouys departments in the competitors that have
weaknesses and then capitalize in them by improving the collecting all this weakness and make
then more attractive and increasing to attract more customers also by sacking ways all other. Its
also aimed at vigourously campaign to creaye awareness to its existence and its quality cereals.
Due to the quality services and produces. This industry is expected to have attained 50% of the
market share within one year of its operaion and to agin at least two thirds of the estimated
population of 10 000 people.
The total number of customers expected is 600 the illustration of the market share is as follows’
= 50%
600
= 25%
600
=xxxx%
600
= 17%
Xxxxxxxx
Xxxxxxxxxxxxxx
The idnsutry has set about 50 000 shillings to be spent on this event. This is to make the business
and its products to be known to the public. The methods of advertising to be used will be media
eg through television, radios etc. Use of posters and road shows also through preparation of
bronchures xcontaining details of the the business and the produces which wqill be spread all
over the country.
Also through awareness campaign where people will be travelling around the existence of the
business and the qualities of the products and even visitinf potential customers and having a one
on one sales promotion through sampling the free gifts. The business will aldso provide calendar
bearing the anme of the of the inudtsry and the picture of the products being offered.
The industries will be using the market penetration oriented pricing method where it shall find
out the prices of cereal in different industries and then establish its price that will be convenient
and affordable to the targeted customers we will then move gradual;l;y to the skimming the
cream price strategy but it will vary form the location of various customers.
The industry will offer 20% discount for those who will buy the produce in bulk.
It wll also introduce credit policy of a discount increase of clearance of debt within a resoanble
time. This will encourage the customer who will be willing to buy from us on credit.
The business will distribute the products directly to the customers. The individual customers will
have a chance to purchase directly from the business for institutional customers who buys in
large quantity transport will be offered at a reasonable charges and also for the commercial
customers like supermarkets and hotels. This transport services will be through lorries and vans
in which the business is expected to hire.
CHAPTER THREE
3.1 ORGANIZING
The business will have sectional authority with the manager at the top and the other employees
will be answerable to him.
ASSISTANT
MANAGER
3.3 ORGANIZATIONS
Gaudy’s cereal Shop will be managed by GAUDENCIAH MOSE as the manager and
also the owner of the business. Her key duties will be to formulate policies and procedures
finding market for the business products overall supervision of the day to day running of the
business and setting goals and plans for acquiring them.
i) OWNER/ MANAGER
AGE: 21 YEARS
NATIONALITY: KENYAN
Qualifications
Experience
The owner of the business had attained an experience of sales and marketing for one year while
working as an assistant sales manager at Cap Well Industries.
Owing top the afct that will be owner of the business shw will be entitled to make a net profit as
her remuneration.
Qualifications
Reporting to the manager, ideal candidate will also act as the business scereatry.
Duties and responsibilities
Qualifications
Qualifications
v) OTHER PERSONNEL
Qualifications
a) Ensuring the shop is clean by wi[ping the shelves and clenainhg the floors
b) Preparing and serving the staff with tea or any other drink at the appropriate time.
Qualifications
a) RECRUITMENT
This is the a managerial; process of selecting the best qualified candidate to fill vacant posts in a
business enterprise. Its helps the management to select well qualified and promising persons for
different purposes. Within the enterprise it also enables the management to get new ideas from
candidates/ applicants who have worked for competitors by intelligently questioning them for
thorough the interview.
The business will advertise the job opportunity through posters printed around the shopping
centre. This will greatly reduce as opposed to the media advertising. A two day advertisement
will also be run through the radio application will be received through the business mail box and
then selections and placement of the qualified personnel will be conducted via an interview
conducted by a panel of experts. The whole process will be based on the academic qualification
and experience.
b) MANAGEMENT TRAINING
Training is updating to recruits to knowledge with the current job situation in relation to the
business requirement .Before employee assimes their respective duties ,training will be
offred .This will be done in order to make the employee conversant withj the duties they will be
performing.
The buisnewss will alos sponsor employees to seminars condicted in the counters concerning the
running of the business will be arranged .This will improve their skills hence a better output.
c) Promotional programmes.
This is the process of motivating the hardworking to higher level in their respective jobs it
involves parallel career tracks for employees who want to develop their skillsbut not interested in
moving managementThis wioll be employed as it enabls employes ,earn more responsibilities
and pay while working in their chosen fields.
d) Remuneration is the paymet of employees in return for their services to their entriproses each
employe will be paid on monthly basisi salary increament will be at 50% per anumm.
A travel allowance will be offered to salesmen who travel out of the shopping centre to deliver to
customers products.
e) Incentives.
Thses are the rewards offered byy busness to motivate the workers apart from the monthly salary
the management will increase the following incentives.
-Giving employees rewads for outstading achievements.
-Giving employees their card this will raise self esteem as well as adding pride to the employees
feel about working in the enmtreprise.
-Awarding bonuses based onb the business profits .This will encoutage hardwork.
-Trating employee with respect and fairness ,medical care will be provided for employees injured
in the course of duty.
a) Licenses .
The entrweprsie will obtain license from the local authorioty for a business to operate legally
under the mionistry of trade and industry licensing act (cap 22)law of Kenya ,it will be obtained
from Nyamira btanch office.
b) By-laws.
i) Legal.
The buiisness will alwsys have a lawyer in its legal matters and must be consulted before a
contract.
ii) Advertsing.
The business will ionvolve itself in adversting and therefore it will work in liason with radio
citizen .which will be offering radio advertsiemnt for the business.
iii) Banking.
This will preovde the bisness a safe custody for cash money belonging to the business .The
business teherfore will rruin a current account with CB bank.
This will be a ppropriate for it offers terms of service with a 10% return on saving per annum &
offers loans at 12% interest ,which is 1% lower than banks.
iv) Insurance.
This is a collection of money into the insured is brought back to his/her financial position once a
risk has occurred.
Risk agisnt fire and burglary will be in this matter Madison Insurance will be engaged. This is
better it has a branch in Nyamira town hence it is close to the business.
CHAPTER FOUR.
GAUDYS CEREAL SHOP will operate in systematic way /manner that it will be able to meet
customers wabnts interms of quality service ,quality products and cost s as to prosper.The
business will consider customers expectations which is changing day to day to increased resrach
on agricultural products by K.A.R.I .Hence leading to roduction of high quality cereals .The
bsiness operation hours will be from 6.00 to 8.00 pm .This ensures that the business hours wioll
be convenient to all customers.
The product and services will be of high quality .The products will be designed in a way that
attercats the customers eg the products will be packed in a clean white sacks with the GAUD’S
CEREAL SHOP and an additional written FIT FOR HUMAN CONSUMPTION.
This will make them look unique fromn thses of competitoive and hece the chances of the
customers consfusion.
Product capacity refers to the basic resources that will enable thebusines to comenece its
operations.
Tools are any appropriate devices that aid in carrying out a job while equipments on the other
hand are a structiure or a machine that performs specific duties.
GAUD’S CEREAL SHOP WILL reqire the following tools and equipments for oits operations.
b) Business lorry.
The business will have a lorry worth kshs 231000.It will be used to transport the cereals from the
rural areas to the town It will be also used to delivere bulk prchses to customers premises since it
will not be in use in overtime no driver will be employed but instead either of the salesman may
drive it to do the duty whenever a neds arise.
The business will be inviting the suppliers of theequipments to do maintainnace and servicing of
the the equipments at regulars occasions as for the lorry business will taking it to KISII MOTOR
repairs for its repairs and maintance.
This is a doagnostic representation on how the premise will be arranged owing to the fact that
most building are rented without being partined the premises to suit the requirements of
business.Hradborads will be used in this regard .This will be done by hired carpenter who will
install any necessary shelves.
The floor layout and the portioning of room will close the business around shs 35000.
For the smooth running of the business ,GAUDY’S CEREAL; SHOP will will have to incur the
following monthly expnses.
The roducts that will be the opening stock of the business and their suppliers will be as shown in
the table below.
This is a plan on how the buisnbess will perform its business activities .This will be performed as
under.
a) Oeders .
The saleman and the manager herself will find market services according and efficiently to
ensure that quality servoice is offered at all times.Also thetime period service is offered at
alltimes.Also the time period between order receipt and product /services delivery will be kept at
minium as mich as possible.,
b) Pirchses.
With the help of saleman .The m,anagement will access the products quality in the market before
purchasing fpr selling .This product will buy from ythe farmers.
c) Transportation.
Using the business loeey the stock will be transpoted to the entrewprsie store.
After the stock has arrived in the store .The shop attendant will weigh the cereals and pack them
in small quantities then arrange them in shelves for proper display.
e) Attending to customers.
Once orders have been received the saleman will immediately deliver the prodicts.
Thios is in case oif instituiional customers ,shop attenmdants will attend rto them.
Imediately and give them the products they want art the right quantity .They will receie cash
from customers and immediately after a receipt .
Incase a customer needs any speciafied information or special order the assistant manager will
attend to such.
Thse are officially laid down customers and orders which will guide and control behavior action
and performance of the employees and the business as a whole.
The health acts stipulates the roles and regulations which must be strictly followed by thye
business operators .The role emphasis more on sanitation of the working area thgus the premises
and its stores should be clean and free from rodents and est .The cereal should be fit for human
consumption the buisnbess attendants should hold amedical certificate from public hospital .
This act stipulates the duties and regulations which must be followed by each employee on issues
regarding payment,insurance ,medical cover and working hours of his employees.
This act stipulates the rate and regulations which should be obsereved by the business
operators .In this case the business will follow the rules regarding yearly payment to the
Municipal council if Kisii town.
CHAPTER FIVE.
This refers to the mandatory expenses that the buisines is bound to incur efore it can consistently
and comfortably open its doors.
Bellow is a table showing the pre-operational costs for GAUDY’S CEREAL SHOP.
This is the excess assts over current liabiulities .It is used to measure the solvency of a
business .It helps the business owner to know wether all assets are economically tilised to avoid
under employment.
CURRENT LIABILITIES.
Short term loans .The Working capital of GAUDY’S CEREAL SGOP will be working
capital=Curent assets-Current liabilities.
W.c =555,000-300000
W.C = 255,000
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
ST MARY’S
CHURCH
MATATU STAGE
NYAMIRA POLICE
STATION
NYAMIRA CHIEF
CAMP
DL’S OFFICE
MILLENNIUM
BUILDING
GAUDY’S CEREAL SHOP