TITLE: BUSINESS PLAN

BUSINESS NAME: Nthiga Vehicle Tracker and Maintenance

BUSINESS ADDRESS: P.0 Box…
TELEPHONE N0 : 0799247956
EMAIL ADDRESS: bmurithi979@gmail.com

PRESENTED BY: Nthiga Brian Muriithi

INDEX: 3042011066

COURSE: Diploma in Information Technology and Communication

INSTITUTION: Meru National Polytechnic

PRESENTED TO: K NEC for award of Diploma in ICT

SUPERVISOR: Isaiah Kamwara

SERIES: November, 2021.

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 TABLE OF CONTENTS
i. DECLARATION......................................................................................................................i
ii. ACKNOWLEDGMENT..........................................................................................................ii
iii. Dedication...........................................................................................................................iii
Executive Summary........................................................................................................................iv
1.0 Chapter 1: Business Description..............................................................................................iv
1.1 Chapter 2: Marketing Plan......................................................................................................iv
1.2 Chapter 3: Organization and Management............................................................................iv
1.3 Chapter 4: Operation Plan.......................................................................................................iv
1.4 Chapter 5: Financial.................................................................................................................iv
2.0 Business description.............................................................................................................1
2.0 Background of the owner......................................................................................................1
2.1 Business Name......................................................................................................................1
2.2 Business Location.................................................................................................................2
2.3 Form of Ownership...............................................................................................................2
2.4 Type of Business...................................................................................................................2
2.5 Products and services offered...............................................................................................3
2.6 Justification of opportunity...................................................................................................3
2.7 Industry.................................................................................................................................3
2.8 Goals and Objectives............................................................................................................3
3.0 Introduction...........................................................................................................................4
3.0 Customer...............................................................................................................................4
3.1 Market share/size..................................................................................................................4
3.2 Competition..........................................................................................................................5
3.3 Methods of Promotion and advertisement............................................................................5
3.4 Pricing strategy.....................................................................................................................5
3.5 Sales tactics...........................................................................................................................6
3.6 Distribution Strategy.............................................................................................................6
4.0 ORGANIZATION AND MANAGEMENT........................................................................7

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4.0 Management Team...............................................................................................................7
4.1 RECRUITMENT AND TRAINING....................................................................................8
4.2 OTHER PERSONNEL.........................................................................................................8
4.3 Promotions............................................................................................................................9
4.4 Remunerations......................................................................................................................9
4.5 Legal requirements...............................................................................................................9
4.6 Support Services...................................................................................................................9
4.7 Insurance Services................................................................................................................9
5.0 Operation and production plan...........................................................................................10
5.0 Production facilities and capacities....................................................................................10
5.2 Firm Layout........................................................................................................................12
6.0 Production Strategy............................................................................................................12
5.4 Methods of stock control we will use include:...................................................................13
5.5 Time Control/Working Schedule........................................................................................15
5.6 Inventory Control................................................................................................................16
5.7 Regulations Affecting Operation........................................................................................16
5.7.1 Health Regulation...........................................................................................................16
5.7.2 Safety..............................................................................................................................16
5.7.3 Environmental Regulation..............................................................................................17
6 FINANCIAL PLAN...............................................................................................................18
6.0 Books Of Account..............................................................................................................18
6.1 Pre-Operational Cost..........................................................................................................18
6.2 ESTIMATION OF WORKING CAPITAL........................................................................18
6.3 ESTIMATION OF FIXED ASSETS..................................................................................18
6.4 CASH FLOW PROJECTIONS..........................................................................................20
6.4 PROFORMA INCOME STATEMENT.............................................................................27
6.5 PRO-FORMA-BALANCE SHEET...................................................................................29
6.6 BREAK-EVEN ANALYSIS..............................................................................................30
6.7 POFITABILITY RATIOS..................................................................................................32
6.8 DESIRED FINANCING....................................................................................................33
6.9 PRODUCTION LOANS....................................................................................................33

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iv
i. DECLARATION
I here verify that the document presented is authentic and original. It originated from my own
thought and research and not a copy of anyone’s work.
Name Signature
Nthiga Brian Muriithi
Supervisor: Mr. Isaiah Kamwara

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ii. ACKNOWLEDGMENT
First I would like to acknowledge my business teacher for the guidance and mentorship provided
which has helped in my understanding of concepts relating to entrepreneurship and business in
general.
Finally, I would also like to acknowledge myself for putting the effort in research so that I could
start complete this business plan on the provided instructions.

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iii. Dedication
I would like to dedicate this business plan to my brother Allan and mother Rose whom without
their financial aid and dedication none of this would have been possible.

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Executive Summary
1.0Chapter 1: Business Description
The business name is Nthiga vehicle tracker installation and maintenance which operates under a
limited company in partnership with google. Our partnership with google will ensure we get the
latest tracking hardware and software from google and thus google has no influence on daily
operations of the business. The business will be located in Mombasa with the main aim being to
maximize profit, reduce the high rate of vehicle using the most reliable yet affordable
technology.

1.1Chapter 2: Marketing Plan

The target market is approximately 3.2 million motorists. The method of advertisement and
promotion will include electronic media, print media, blogs and sponsorships of tech based
events/functions. The business will offer stiff competition by offering free maintenance during
the 1 year warranty period, rewarding clients with a discount when they purchase our services in
bulk, redeem or upgrade their service pack.

1.2Chapter 3: Organization and Management

The business is a sole proprietorship under the management of a manager. Legal documents
required for smooth operations of the business include license, taxation and medical regulations
compliance certificates. External support services like banks, insurance and suppliers within
close reach will ensure smooth running of the business.

1.3Chapter 4: Operation Plan

The business will use rental spaces to carry out its regular operations. Equipment, raw materials
and utilities required will only be purchased from trusted dealers.

1.4Chapter 5: Financial
The business will require an accountant to keep track of the monthly spending in a ledger. Pre-
operational cost will be ksh. 4,000,000, total working capital of ksh. 4,500,000 and a total fixed
asset of KSH. 1,000,0000.

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1
CHAPTER ONE

2.0Business description
The business focuses on vehicle tracker installation and maintenance, it will also install
additional safety features such as alarm system and ignition lock when the vehicle has been
reported stolen.
Nthiga Vehicle Tracker Installation and Maintenance aims towards lowering cases of vehicle
theft that is rampant in the country by ensuring those that engage in such vices are traced and
caught with the help of our security installation.
We would like our business to be one of the best in the country in terms of services rendered and
customer satisfaction in the next few years.

2.0Background of the owner

Nthiga Tracker Installation and maintenance is owned by Nthiga Brian Muriithi, a middle aged
Bachelor with 5 years business experience. He attended the great Allidina Visram High School
and acquired his college Diploma from Meru National Polytechnic thereafter getting a job as a
cyber security expert before venturing into tracker installation and maintenance. His long and
successful career as a cyber security expert enabled him to acquire first hand knowledge of the
tricks used by car thieves to disable tracking and alarm systems used in most cars including high
end luxury brands.

2.1Business Name
The business name is derived from the owner’s name combined with the service rendered. This
name was chosen as it easily identified the business with the owner while showing the services,
this makes it unique and authentic to avoid any confusion that might come as a result of sharing
similar business name not associated with ours.
Business Logo

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 2.2Business Location
Nthiga Tracker Installation and maintenance is a moderately sized business located in Mombasa
Jomo Kenyatta Avenue opposite Magram butchery next to Makini Herbal Clinic, near Gulshan
Restaurant.

Makini Herbal Nthiga Tracker Installation and

Gulshan Restaurant
Clinic Maintenance

Magram Butchery

The location of the business is convenient as the location near a busy road makes our business
easy to locate and the popular businesses bordering us act as a good landmark, there is also good
security both from the police and private firms.
You can contact us via email through bmurithi979@gmail.com and tel:0799247956
History of venture
As an investor in the car rentals industry I faced a lot of vehicle theft where the culprits easily
disabled the vehicle trackers after renting a car from my establishment and then selling the car in
the black market, this made insurance premiums to be more expensive and a lot of businesses
which didn’t have insurance or couldn’t afford the high insurance premiums brought by car
thefts to fail.

2.3Form of Ownership
The business is a partnership between Google and Nthiga Tracker Installation and Maintenance
which guarantees the latest high end technologically advanced tracker hardware and software
without encroaching on the customers’ privacy.

2.4Type of Business
The business is a start up with a lot of potential to grow with the public transport sector growing
day by day. This business falls under the private security industry with a relatively low capital
investment requiring a small number of skilled labourers and technicians, coupled with high end
technology.

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 2.5Products and services offered
Nthiga Tracker Installation and maintenance offers 3 packages for customers looking for vehicle
tracker installation services;
1. Basic-it includes vehicle tracker installation only and is the cheapest plan
2. Gold-it includes basic plan and an alarm system installation for the tracker
3. Platinum-it includes the gold plan features plus ignition lock in case of vehicle theft.

2.6Justification of opportunity
I decided to venture into vehicle tracker installation services to offer more secure trackers that
were hard to remove and would activate a distress call if someone attempted to do so without
entering the unique security key offered for each tracker.

2.7Industry
The business belongs to the private security industry by offering services to better guard your
property against theft.

2.8Goals and Objectives

1.1.1. Goals

The business aims towards dominating the largest market share in the private security sector
while at the same time maximizing profit and reduce the rate of car theft that is currently
rampant in the country. It will use mainstream media advertisement to raise awareness on the
type of services it offers to penetrate the market, most of its competitors offer subpar services but
at a premium rate.

1.1.2. Objecti ves

By offering different packages, unlike our competitors. Nthiga Tracker Installation and
maintenance considers those who can’t afford premium rates by offering them cheaper
alternatives. This will ensure that it capture both private motorists who are its potential premium
plan customers and public service motorists who make up the biggest market share.

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CHAPTER TWO

3.0Introduction
Nthiga Tracker Installation and Maintenance is a business that deals with vehicle tracker
installation and maintenance.

3.0Customer
Its potential customers are private and public transport vehicle owners seeking to secure their
property against theft at an affordable rate. The Kenya Roads Transport estimated the number of
motorists in Kenya to be approximately 3.2million as of 2018 and the numbers keep growing
annually. We mainly target the motorists situated in major cities in Kenya like Mombasa,
Nairobi and Kisumu as we seek to expand our services to other parts of Kenya as soon as we
establish ourselves as a major service provider. Most motorists in Kenya are middle aged i.e. 30-
50 years earning a salary of ksh.70, 000+ thus making them its potential target customers. Most
of its customers will be looking for a reliable tracking software but at an affordable price which
we will be offering but in 3 packages.
Advertisement and promotion
Nthiga Tracker Installation and maintenance seeks to reach its potential customers by advertising
its products through newspapers and television programs. It will also offer packages for half the
marked price for first time customers in the first 3 months of purchase. This will give them a
chance of trying out its services thus building trust for both parties.
Variety of goods and services
The 3 packages will offer its customers different varieties of products to choose from, it will also
offer a discount to those who wish to upgrade their packages.
Credit Facilities
Nthiga Tracker Installation and maintenance business has partnered with Mpesa and KCB to
offer different payment options for its clients. It is also in talks with other credit operators like
Equity and Lipalater to offer its clients more options to choose from in terms of credit providers.
Capability of employees
Nthiga Tracker Installation and maintenance has hired the best and most qualified workforce in
the field. It also seeks to train them yearly to keep them more updated in the IT field as
technology keeps evolving.
Methods of selling
Nthiga Tracker Installation and maintenance aims at interacting and selling directly to its
customers in order to prevent counterfeiting of its products and to ensure customers are satisfied
with services rendered.

3.1Market share/size
Nthiga Tracker Installation and maintenance aims to install 10,000 trackers quarterly which
amounts to 30,000 trackers yearly. The businesses that currently dominate this sector includes
Lions Auto ltd, Track and Trace Kenya, Intel wise Technologies, Kenneth Tracking ltd, Itrace
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Africa ltd. These are its potential competitors based on the market share dominated and quality
of services rendered.

3.2Competition
From the stats gathered by its research team, these service providers have been able to dominate
the biggest market share because they offer some of the most accurate gps software and have a
relatively good aftermarket service and maintenance team. Nthiga Tracker Installation and
maintenance has been able to discover loop holes in the quality of services rendered. The
business mentioned above only have a basic package which doesn’t consider potential customers
with a low purchasing power, this allows Nthiga Tracker Installation and maintenance to gain a
bigger share of the market as it offers different packages with some catering for the low income
earners especially those in the public transport sector e.g. bodaboda operator. By offering a
cheaper package, it will make lower profits from 1 unit scale but gain more profits as the size of
the market increases.

3.3Methods of Promotion and advertisement

Nthiga Tracker Installation and maintenance aims to use both electronic and print media. Print
media will target the older population and electronic media will target the younger population.
Its product will be portrayed as a cheaper but more reliable method of tracker installation and
maintenance, the electronic advertisement will run from 9:30pm to 10:00pm which is the best
time since most of its target audience is more attentive during that time as they watch the
evening news and programs. This will also cut our electronic media advertisement cost since we
will not be requiring a lot of air time. The business estimates the total cost of advertising to be
ksh.300, 000 most of which will be used for electronic media advertisement if we use a popular
media channel like citizen TV. The effectiveness of the methods of advertisements will be
established through monitoring of website traffic before and after using different advertisement
methods. The business will also offer sponsorships to popular tech based events in the country
which will raise awareness of the services we render. Regular questionnaires in partnership with
google will set to measure our level of penetration, age of respondents and how they came to
know of our services.

3.4Pricing strategy
Nthiga Tracker Installation and maintenance plans to use the forces of demand and supply,
income of targeted clients, taxes imposed on services rendered, what competitors are charging
for similar services, cost of technology used and size of labour force to set and adjust our prices
for its products and services.
Loyal clients will have a 10% discount on redeeming the packages they are subscribed to during
black Friday and Christmas Eve and a 25% discount for those wishing to upgrade to a more
premium package. A cash discount of 12% will also apply to those seeking to buy our products
for more than 10 vehicles at a go, while those who pay via cash get a 2% discount on the marked
price. A 1 year warranty will be included for all packages which will consist of repair and
maintenance if the warranty is not voided in any way, trying to tamper with the tracker will result
to the warranty being voided.

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 3.5Sales tactics
Nthiga Tracker Installation and maintenance will use direct selling approach to avoid
counterfeiting of its products and to gain more trust with our clients, our agents will be located in
Mombasa, Nairobi and Kisumu as we seek to expand to other cities as we grow.

3.6Distribution Strategy
The business will not incur additional cost for distribution as it expects its customers to come to
us with their vehicles for tracker installation, but in the event that a customer will prefer to send
their cars to the business for vehicle(s) installation, the cost of transport for the vehicle to and
from the business will be incurred by the customer. Since cost of transporting the vehicle will be
paid by the customer, the business will not incur any transport cost.

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CHAPTER THREE

4.0ORGANIZATION AND MANAGEMENT

Introduction
Nthiga vehicle tracker installation and Management Company is established to combat vehicle
theft, which is rampant in the country.

4.0Management Team
 Human resource manager
He/she must have a master’s degree in human resources or business management
accompanied with a minimum of 10 years’ experience working in a related field from a
reputable company. He/she will be responsible for managing staff that will be working for
our company; this will include hiring and dismissing of the business’ labour force.
 Managing Director
He/she must have a master’s degree in business, marketing or a related field accompanied
with a minimum of 10 years’ experience working in a related field from a reputable
company. He/she will be in charge of controlling and directing all business operations, this
entails giving strategic guidance and directions to the board to ensure that the company
achieves its goals.
 Production manager
He/she must have at least a bachelor’s degree in business management or related field
accompanied with a minimum of 5-year experience working in a related field. He/she will be
responsible for:
1. Assessing project and resource requirements
2. Estimating and agreeing to budget and timescale with clients
3. Ensuring that the health and safety regulations are met
4. Selecting ordering and purchasing materials
5. Supervising and managing the work of junior staff
6. Organizing relevant training sessions
 Finance manager
He/she must at least have a bachelor’s degree in finance or related accompanied with a
minimum of 5-year experience in working at a related field. He/she will provide financial
guidance. The duties under the finance manager includes:
1. Meeting with departments heads
2. Managing and coordinating monthly reporting, budgeting and reforecast processes
3. Providing bank office services such as accounts payable, collection and payroll
4. Monitoring cash flow
5. Providing insight on the financial health of the organization
6. Looking for cost-reduction opportunities

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  Procurement Manager
He/she masters degree in supply chain management or related field with a minimum of 10
years’ experience. He/she will be responsible for finding and evaluating suppliers, products
and services, negotiating contracts and acquiring the most cost efficient deals without
compromising on quality.

4.1RECRUITMENT AND TRAINING

 Accountant
Senior accountant:
Must have a minimum of 3 year experience working as an accountant and have a bachelors
degree in Accounting or related field. He/she will be:
1. Monitoring spending and budgets
2. Auditing and analyzing financial performance
3. Advising on how to reduce costs and increase profits
4. Compiling and presenting financial and budget reports
Junior Accountant
Must have a minimum of 3 year experience working as an accountant and have a diploma in
Accounting or related field. He/she will be:
1. Keeping account books and systems up to date
2. Ensure that financial statements and records comply with laws and regulations
3. Preparing accounts and tax returns

 Engineer
They must have a minimum of 3 years’ experience working as an engineer in their respective
fields; they should have a diploma in automotive or mechanical engineering. They will be
installing the tracker on vehicles and upgrading or carry out regular maintenance on the hardware
when required.
 Technician
Must have a minimum of 3 year experience in software engineering or any IT related field, they
should also have a diploma in ICT or software engineering from a recognized academic
institution. They will be in charge of programming the tracker software and carrying out
software updates and debugging.

4.2OTHER PERSONNEL
Other staffs include:
Guard, secretary, cleaner, clerk and cook.
All positions will be advertised in newspapers and on our official company website and social
media accounts. All qualified applicants will have to go to a mandatory 3 months training

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program which seeks to equip them with all the required skills to manage the business and at the
same time be a team building exercise.

4.3Promotions
Promotions in the company will be based on the quality of work and duration spent working with
us. Promotions will only be carried out when there is a vacant position to be filled.

4.4Remunerations
We will offer a competitive salary scale in regards to the market trend and offer bonuses when
our company market share rises, this will inspire our labour force to work towards growing our
brand.

4.5Legal requirements
Licences
We will acquire all required trading licenses as required by law before running our business. The
purpose of a trading license is to show that your business has been cleared by the relevant
government authorities to operate.
Permit
A permit under the telecommunication and broadcasting category will be acquired in order to
operate our business, a permit will be issued after inspection and is renewable depending on the
duration selected.
By-law
Nthiga Tracker Installation and maintenance will comply with all county and government laws.

4.6Support Services
Nthiga Tracker Installation and maintenance will be situated in a central and developed part of
the country to be close to all relevant support services that will make it easier for the business to
acquire raw materials and a skilled labour force.

4.7Insurance Services
Nthiga Tracker Installation and maintenance has collaborated with Britam who will offer the best
insurance services for the business and interested clients. Because of this partnership, premiums
to be paid will be cheaper compared to other insurance companies. The business has also
partnered with a local law firm who will offer legal services.

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CHAPTER FOUR

5.0Operation and production plan

Nthiga Tracker Installation and maintenance tracking devices come fully manufactured from its
partnered supplier. The business will install and activate the trackers for its clients. A
telecommunication and broadcasting permit accompanied by a trading license will be acquired
before the business can start operating.

5.0Production facilities and capacities

My business will require:

 A garage space for where the vehicles will be parked awaiting tracker installation
 An open office setup for where programming and activation of the tracker will take place
 A landscape office where clients can talk privately with our agents
 A reception area for where clients will be issued with brochures that contain our different
service packs explained in detail
 A waiting area for the clients who are not in a hurry to wait for their turn to talk with our
representatives for further assistance
 Machinery required for our business:
 Computers for our IT and receptionist personnel
 A tool kit for our engineers
 Fixtures:
 Office furniture and stationery at a total of ksh.300, 000
 Sofa set for the reception and office at a total of ksh.600, 000
 Telephone for internal and external communication at a total of ksh.15, 000
 Fire extinguishers at a total of ksh.50, 000
 We will purchase all equipment as it is cheaper than leasing, payment will be made via
bank transfer. Transport and installation is included in the total prices indicated.
Servicing of purchased equipment will cover the 1st year upon purchase of all our
electronic equipment and may be voided if the terms of warranty are broken.
 We have only made purchases from a trusted supplier who have a dedicated team for
offering maintenance to client’s machinery. Maintenance will be after every 3 months
until the expiry or violation of warranty, google will be our main supplier for tracking
devices and any spare parts pertaining to trackers while our office machinery and after
sales services will be sourced from LG.
 Importation of all our equipment will be from a clearing and forwarding company that
will handle all payments of taxes and delivery to our warehouse after partnership. Our
tools have a 7% per annum depreciation rate and a lifespan of approximately 15years.
Our machine, equipment and fixtures should comfortably last for 10 years.

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 5.1 Table: Production, facilities and capacity
Item Quantity Cost Capacity/purpose
Office 4 rooms 100, 000 per month 4 people per open office,
this will require 2 rooms.
1 room for the
receptionist another for
the manager
Store Equipment 1 room 10, 000 per year It will store all stationery
equipment, writing
materials and files
Tow Truck 1 5, 000, 000 Will be used to deliver
cars to and from
customers who cannot
drive their cars to/from
our offices.
Electricity 4 phase 30, 000 per month lease Will power all office and
garage
Garage 3 60, 000 per month lease Will be used by
engineers to install
vehicle tracker
Computers 10 500, 000 Will be used to store
clients data and program
trackers
Printers 3 60, 000 Will be shared among
office personnel
Telephone 3 30, 000 One will be used by
receptionist, manager
and the remaining one
shared among the
remaining staff
Tool box 6 120, 000 2 per garage and will be
shared by engineers
Furniture 12 1, 000, 000 Will mostly include sofa
set, chairs and benches

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 5.2Firm Layout
Fig. Firm layout

Open office for all staffs

Parking Area divided into cubicles
Garage Store
Kitchen Manager
Secretary
Reception Toilet
Ass.
Manager
Waiting Room

Installation, assembling, programming and customer service is going to take place in Nthiga
Tracker Installation and maintenance office building. Production will not be necessary as the
trackers will be purchased, the equipment available are listed on the production, facilities and
capacity table.

6.0Production Strategy
I came up with the business idea as a solution for the rampant cases of vehicle theft and low
quality tracking technology being used by many service providers within the country.
The cost for purchasing the tracking software will be approximately ksh. 1,000,000 , this figure
is expected to rise as we make more purchases after securing a bigger market share resulting in
more clients.
With technology improving at a fast pace, we expect tracking software to become cheaper and
more reliable.
The business’ main suppliers for office equipment and tracker software and hardware will be LG
and google respectively.
Alternative suppliers for office equipment is Samsung and tracking software and hardware can
be outsourced from Huawei. We are constantly monitoring the value for money being offered by
these suppliers to maximize efficiency and profit
The level of expertise required to fill most of the vacant positions in our company is a bachelor’s
degree from a reputable academic institution accompanied by a minimum of 3 years’ experience
from a related field.
The cost of labor and technology required to meet our monthly target quota will amount to
approximately ksh.160,000.
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 5.4Methods of stock control we will use include:
Stock Reviews
My store keeper will take regular stock reviews to determine if new stock has to be ordered. We
will order new stock when more than 80% of our stock is depleted.
Fixed-Level reordering
We will have a regular order/refill date with our trusted suppliers to prevent depletion of our
stock.
Just In Time
Some of our expensive equipment will be ordered when they have been depleted or need to be
replaced. This requires fast delivery from suppliers thus will not be implemented until we
establish a supplier who can deliver on short notice.
Quality Control
Performance
Nthiga Tracker Installation and maintenance will activate and test the trackers and additional
security features after installation to make sure they are functioning at maximum capability.
Durability
The business taken a look at the records of durability tests carried out by google in their test
facilities, and taken time to read customer feedback. We are pleased with the results and have no
reason to doubt the durability of the products we purchased from google
Safety
The materials used in the tracking software do not pose any risk of explosion or body harm to the
pedestrian, drivers and passengers.
Economy
The business aims at maximizing profit but not at the expense of quality or customer satisfaction.
With the increase in affordable technology from Huawei and google looking for cheaper but
durable materials to replace the current ones being used we are confident that there is a bright
future ahead.
Quality tests and control will be undertaken by our supplier’s research and development team.
Labor Control
Nthiga Tracker Installation and maintenance has a monthly labor requirement of 29 people, of
which 3 would be working with us temporarily e.g. during Wi-Fi installation and maintenance of
property not under warranty. The laborers we require include a tow truck driver for collecting
and returning clients cars, secretary, receptionist, IT moderator, Human Resource Manager,

13
Accountant, Software developer, Mechanical engineers, Manager, Assistant Manager,
Procurement officer, Security guard, Store Keeper, Janitors and Cooks.
Activities Skills Education Staff Remarks
Assigned
Driver Driving Level 3 driver’s 2 Hardworking
license
Secretary Coordinating and College diploma no 1 Punctual
handling messages experience necessary
for Manager and
Assistant Manager
Cook Cooking Catering certificate 3 Hardworking
no experience
necessary
Accountant Accounting and Diploma/degree in 1 Efficient
keeping records of accounting with a
spending minimum of 3 year
experience
IT moderator Managing internal Diploma/degree in 1 Fast worker
computer connections ICT or related field
and updating with a minimum of 3
software year experience
Software Programming Diploma/ Degree in 2 Creative
Engineer tracking software software engineering
with customers’ and with a minimum of 3
company database year experience
Janitor Maintaining No experience or 3 Hardworking
Cleanness academic
background required
Security Provide protection to No experience or 2 Dedicated
guard cars parked and academic
frisking background required
Store Keeper Keeping records of A certificate or 1 Focused
stock moving in and diploma in store
out of the store keeping
Receptionist Taking record of A form 4 certificate 1 Polite
clients who have and a minimum of 2
entered the premise years’ experience
while directing them
to relevant offices
Manager In charge of handling A master’s degree or 1 Good leadership
staff, meetings and higher in business skills
coordinating day to management with a
day operations minimum of 5 years’
experience
Assistant Coordinated day to A degree or higher in 1 Punctual

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 Manager day operations while business
listening to clients management with a
grievances minimum of 5 years’
experience
Procurement Making orders for A diploma/ degree in 1 Hardworking
Officer items n behalf of the procurement with a
company minimum of 3 years’
experience
Mechanical Deal with tracker A diploma/degree in 5 Fast paced
Engineer installation and mechanical
maintenance engineering with a
operations minimum of 3 years’
experience
Human Handling hiring and A degree/ master’s 1 Punctual
Resource firing of staff degree in human
Manager resource
management with a
minimum of 5 years’
experience

5.5Time Control/Working Schedule

Staffs are expected to work an 8 hour shift from Monday-Friday which starting from 8am-4pm.
During Saturdays and public holidays only the IT Moderator, Secretary, Receptionist, Software
Engineer, Store Keeper, Manager, Assistant Manager, Security Guard and Engineers will be
available for a 5 hour shift starting from 9am-2pm. The extra working hours will be added to
their salary as a bonus. We will not be open for business on Sundays.
There will a 1hour lunch time break, and small 15min breaks for those who need to visit the
bathroom regularly. The kitchen will serve food during lunchtime for free to those who are
willing, and serve as a cafeteria by selling snacks to staff and customers.
Production Costing
The business will buy ready made products, prices for our services will depend with the package
customers choose.
Purchasing Policy
Goods will be purchased from trusted suppliers, handling of orders and payment will be done by
the procurement officer via cheque. The records of purchase will be handled by the procurement
officer and store keeper, buying goods from trusted suppliers i.e LG and Google will ensure that
no counterfeit products are purchased. In case of counterfeit, damaged or substandard goods our
suppliers would be liable. Buying goods in bulk yearly from trusted suppliers will build our
credit score while our business gets to benefit from economies of scale, cheaper prices because
of elimination of middlemen, and warranty services. A lawyer will oversee the business contract
and agreements are clearly interpreted and put in writing.

15
 5.6Inventory Control
Item Description Supplier Cost Per Quantity Total Remarks
Item
Tracker Tracking Google Ksh.5000 1000 Ksh.5,000,000 Available
hardware
Printer Laser Jet LG Ksh.20,000 3 Ksh.60,000 Available
Printer
Desktop CPU, LG Ksh.50,000 8 Ksh.400,000 Available
Monitor,
Keyboard,
Speakers and
Mouse
Stationery Books, Pens, Nataraj Ksh.5,000 20 Ksh.100,000 Available
Rim paper,
Ruler
Toolbox All essential Maina’s Ksh.12,000 4 Ksh.48,000 Available
parts needed Hardware
in a tool box
in 1 set
Furniture Benches, Maina’s Ksh.100,000 20 Ksh.2,000,000 Available
Chairs, Hardware
Tables and
Sofas
Telephone Post Paid LG Ksh.3000 6 Ksh.18,000 Available
telephones
Calculator Non Cassio Ksh.500 4 Ksh.2000 Available
scientific for
accounting
Kitchen Freezer, gas, LG Ksh.20,000 4 Ksh.80,000 Available
Appliances burner and
utensils

5.7Regulations Affecting Operation

5.7.1 Health Regulation

All staffs handling food items will need to be tested for infectious diseases e.g. Cholera and
cleared to handle food items by the county hospital officials.
The certificate is renewable yearly.

5.7.2 Safety
Nthiga Tracker Installation and maintenance engineering team will be given overalls, helmets,
gloves and safety boots. The Janitor will be given a sign board to indicate wet floors so as to
avoid accidents caused by accidental slipping. The only staffs allowed in the kitchen are cooks
and janitors to avoid people contaminated with infectious diseases from contaminating food.

16
 5.7.3 Environmental Regulation
Disposal of food, human and stationery waste will be handled with care to avoid contaminating
the environment.

17
CHAPTER FIVE

6 FINANCIAL PLAN

6.0 Books Of Account

The business will keep:
Cash book
Ledgers
Purchase ledger
Sales Ledger
In order to keep track of all its spending and income

6.1Pre-Operational Cost
Table summary of pre-operational costs
Item Amount
Loan Processing Fee 1500
Bank Account Opening Fee 1000
Electricity Deposit 30,000
Rent 160,000
Insurance 50,000
Licenses and Permit Fee 50,000
Water 1000
Total 292,500

6.2ESTIMATION OF WORKING CAPITAL

Financial Plan Notes
Employees will get a Christmas bonus and all staffs will get an additional bonus when our
business reaches its targeted profit margin of a financial year
Machines will be replaced after 5 years, we have a deal to receive a trade in discount
Working capital of ksh.3,000,000 will be required to cater for recurring expenditure before the
business starts to make profit
We have additional funds of ksh.500,000 to cater for any miscellaneous expenses

6.3ESTIMATION OF FIXED ASSETS

Item Amount
Computers 500,000
Tow truck 5,000,000
Furniture 1,000,000
Telephone 30,000
Printer 60,000

18
Kitchen Appliances 80,000
Tool box 48,000
Total 6,718,000

19
 6.4CASH FLOW PROJECTIONS
Cash Inflow
Cash Sales-350,000
Bank Interest on Deposits-350,000
Income from tow truck-150,000
Payments made by customers via digital money transfer-450,000
Payments made by customers via banks-600,000
Cash Outflow
Salaries-715,000
Collection from debtors-200,000
Loan-300,000
Bank interest on loan-20,000
Rent-50,000
Electricity bill-160,000
Net Cash=(250,000+350,000+450,000+500,000)-(715,000+200,000+300,000+20,000+50,000+160,000)=455,000
Summary
Year 1
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL
Cash inflow 1,900,000 2,000,000 1,500,000 1,400,000 1,700,000 2,000,000 2,100,000 1,350,000 1,800,000 1,900,000 2,500,000 3,000,000 2315000
0
Cash Sales 350,000 450,000 200,000 140,000 230,000 400,000 470,000 350,000 180,000 170,000 300,000 450,000 3690000
Cash at hand 150,000 100,000 220,000 240,000 180,000 130,000 140,000 470,000 130,000 120,000 180,000 290,000 2350000
Total cash 2,400,000 2,550,000 1,920,000 1,780,000 2,110,000 2,530,000 2,710,000 2,170,000 2,110,000 3,540,000 2,980,000 3,840,000 3064000

20
inflow
Purchases 6,718,000 100,000 120,000 110,000 50,000 70,000 120,000 130,000 110,000 160,000 15,000 20,000 1005000
Salaries 715,000 715,000 715,000 715,000 715,000 715,000 900,000 850,000 715,000 715,000 1,000,000 1,500,000 9970000
Rent 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600000
Electricity 160,000 100,000 120,000 80,000 140,000 130,000 90,000 80,000 70,000 50,000 180,000 250,000 1450000
Advertisement 80,000 60,000 50,000 70,000 150,000 130,000 100,000 70,000 140,000 120,000 150,000 250,000 1370000
License 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600000
Insurance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600000
Opening 1000 1000 0 0 0 0 1000 0 0 0 0 0 3000
account
Miscellaneous 500,000 500,000 200,000 150,000 250,000 700,000 800,000 300,000 240,000 260,000 350,000 700,000 4950000
Telephone 30,000 1000 1000 1000 1000 1000 1800 1000 1900 1000 3000 6000 49700
Water 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Loan 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 3600000
Total cash - -3172000 - - - - - - -2492100 -5323000 -4826000 -6023000 -
outflaw
2863000 218300 198300 246300 286300 295620 245800 1617200
0 0 0 0 0 0 0
Net cash -1,937,000 622,000 263,000 203,000 353,000 333,000 246,200 288,000 382,000 3,133,000 831,000 763,000 1594000
Cumulative -1,937,000 622,000 263,000 203,000 353,000 333,000 246,200 288,000 382,000 3,133,000 831,000 763,000 1594000
cash

Year 2
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL
Cash inflow 1,900,000 2,000,000 2,500,000 2,400,000 2,700,000 2,500,000 3,100,000 2,350,000 3,800,000 2,900,000 3,500,000 6,000,000 3565000
0
Cash Sales 350,000 350,000 400,000 340,000 330,000 450,000 370,000 250,000 380,000 270,000 500,000 550,000 4540000
Cash at hand 450,000 400,000 420,000 240,000 380,000 230,000 240,000 270,000 330,000 420,000 380,000 290,000 4050000
Total cash 2,700,000 2,750,000 3,320,000 2,980,000 3,441,000 3,180,000 3,710,000 2,870,000 4,510,000 3,590,000 4,380,000 6,840,000 39,891,000
inflow
Purchases 200,000 300,000 320,000 210,000 500,000 700,000 320,000 330,000 410,000 660,000 550,000 500,000 5000000
Salaries 715,000 715,000 715,000 715,000 715,000 715,000 900,000 850,000 715,000 715,000 1,000,000 1,500,000 9,970,000

21
Rent 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Electricity 160,000 100,000 120,000 80,000 140,000 130,000 90,000 80,000 70,000 50,000 180,000 250,000 1,450,000
Advertiseme 80,000 60,000 50,000 70,000 150,000 130,000 100,000 70,000 140,000 120,000 150,000 250,000 1,370,000
nt
License 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Insurance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Opening 0 0 0 0 0 0 0 0 0 0 0 0 0
account
Miscellaneo 300,000 200,000 400,000 450,000 550,000 700,000 500,000 300,000 240,000 260,000 350,000 600,000 4,850,000
us
Telephone 1000 1000 1000 1000 1000 1000 1800 1000 1900 1000 3000 6000 20,700
Water 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000
Loan 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 3,600,000
Total cash 1,907,000 -3673000 - 996996 - - - - -6992100 -4923000 -7626000 -12123000 -
outflaw
458300 437500 353300 505720 365800 5363930
0 0 0 0 0 4
Net cash 793,000 923,000 1,263,000 1,003,000 965,000 353,000 1,347,200 788,000 2,482,100 1,333,000 1,696,000 3,283,000 9582100
Cumulative -1,144,000 1,545,000 1,526,000 1,206,000 1,318,000 686,000 1,593,400 1,076,000 2,864,100 4,466,000 2,527,000 4,046,000 21,709,500
cash

Year 3
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER
Cash inflow 3,900,000 4,000,000 4,500,00 2,400,000 4,700,000 3,000,000 3,700,00 4,350,000 3,800,000 4,900,000 4,500,000 5,000,000 48750000
0 0
Cash Sales 350,000 450,000 300,000 440,000 330,000 400,000 470,000 350,000 280,000 370,000 200,000 250,000 4190000
Cash at hand 250,000 270,000 390,000 340,000 580,000 630,000 440,000 570,000 430,000 520,000 480,000 590,000 5490000

22
 Total cash 4,500,000 4,720,000 5,190,00 3,180,000 5,610,000 4,030,000 4,610,00 5,270,000 4,510,000 5,790,000 5,180,000 5,840,000 58430000
inflow 0 0
Purchases 700,000 600,000 320,000 610,000 500,000 700,000 620,000 730,000 910,000 860,000 750,000 800,000 8100000
Salaries 715,000 715,000 715,000 715,000 715,000 715,000 900,000 850,000 715,000 715,000 1,000,000 1,500,000 9970000
R Rent 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600000
Electricity 160,000 100,000 120,000 80,000 140,000 130,000 90,000 80,000 70,000 50,000 180,000 250,000 1450000
Advertisement 80,000 60,000 50,000 70,000 150,000 130,000 100,000 70,000 140,000 120,000 150,000 250,000 1370000
License 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600000
Insurance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600000
Opening 0 0 0 0 0 0 0 0 0 0 0 0 0
account
Miscellaneous 500,000 500,000 200,000 150,000 250,000 700,000 800,000 300,000 240,000 260,000 350,000 800,000 5050000
Telephone 1000 1000 1000 1000 1000 1000 1800 1000 1900 1000 3000 6000 20700
Water 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Loan 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 3600000
Total cash 2,607,000 2,127,000 1,807,00 2,077,000 - - - - -6492100 - -9226000 -9923000 -54707300
outflaw 0 901300 5233000 625720 8058000 912300
0 0 0
Net cash 1,893,000 2,593,000 3,514,00 1,102,300 3,403,000 1,203,000 1,647,20 2,788,000 1,982,100 3,333,000 2,296,000 1,783,000 27537600
0 0
Cumulative 749,000 4,138,000 5,040,00 2,308,300 4,721,000 2,521,000 3,240,60 3,864,000 4,846,000 7,799,000 4,823,000 5,847,000 49,247,100
cash 0 0

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24
SUMMARY OF NET CASH FOR THE FIRST 3 YEARS
ITEM YEAR 1 YEAR 2 YEAR 3
Net Cash 5,480,200 16,229,300 27,537,600

6.4PROFORMA INCOME STATEMENT

(PROFIT AND LOSS ACCOUNT)
Below is the summary of profit and loss expected in the first 3 years.
Year1
ITEM AMOUNT(KSH) AMOUNT(KSH
Total sales 3,690,000
Cash in hand 2,350,000
Cash in flow 23,150,000
Total Income 29,190,000
Debtors 0

Cost of goods sold 18,423,000

Beginning inventory 14,390,000
Purchase 7,723,000
Total cost of goods sold 18,423,000

Salaries 9,970,000
Rent 600,000
Electricity 1,450,000
Licences 600,000
Transport 0
Insurance 600,000
Miscellaneous 4,950,000
Water bill 12,000
Advertisement 1,370,000
Telephone bill 49,700
Opening account 3000
Loan 3,600,000
Total expenses 25,388,000
Gross profit 18,490,000

Tax at 15% 2,773,500

Net profit
Net profit -9,671,500
Year 2
ITEM AMOUNT(KSH) AMOUNT(KSH

27
 Total sales 10,000,000
Cash in hand 4,050,000
Cash in flow 35,650,000
Total Income 49,700,000

Cost of goods sold 5,700,000

Beginning inventory 10,700,000
Purchase 5,000,000
Total cost of goods sold 5,700,000
Debtors 9,671,500

Salaries 9,970,000
Rent 600,000
Electricity 1,450,000
Licences 600,000
Insurance 600,000
Miscellaneous 4,850,000
Water bill 12,000
Opening account 0
Transport 0
Loan 3,600,000
Telephone bills 20,700
Advertisement 1,370,000
Total expenses 25,302,700
Gross profit 44,000,000
Tax at 15% 6,600,000
Net profit 2,425,800
Net profit 2,425,800
Year 3
ITEM AMOUNT(KSH) AMOUNT(KSH

28
 Total sales 13,000,000
Debtors 0
Cash in hand 5,490,000
Revenue 48,750,000
Total Income 54,240,000

Cost of goods sold 800,000

Beginning inventory 5,700,000
Purchase 8,100,000
Total cost of goods sold 800,000

Salaries 9,970,000
Rent 600,000
Electricity 1,450,000
Licences 600,000
Insurance 600,000
Miscellaneous 5,050,000
Water bill 12,000
Opening account 0
Transport 0
Loan 3,600,000
Telephone bills 20,700
Advertisement 1,370,000
Total expenses 23,272,700
Gross profit 53,440,000
Tax at 15% 8,016,000
Net profit 22,151,300
Net profit 22,151,300

6.5PRO-FORMA-BALANCE SHEET
This is meant to show the financial position of our business at the end of a financial period
(usually every year)
i. Assets
 Tow truck=5,000,000
 Furniture= 1,000,000
 Computers= 500,000
 Toolbox=48,000
 Printers=60,000
 Telephone=30,000
 Kitchen appliances=80,000
 Cash at bank=48,750,000
 Cash at hand=5,490,000
ii. Liabilities
Long term liablities

29
  Bank Loan= 3,600,000
Current liabilities
 Rent=600,000
 purchases
 Salaries=9,970,000
 Insurance=600,000
 Licences=600,000
 Miscellaneous=5,050,000
 Electricity bill=1,450,000
 Water bill=12,000
 Telephone bills=20,700
 Purchases=8,100,00
 Debtors=0
BALANCE SHEET FOR YEAR 3
Assets Liabilities
Tow truck 5,000,000 Capital 35,998,300
Furniture 1,000,000 Current liabilities
Computers 500,000 Rent 600,000
Toolbox 48,000 Electricity bill 1,450,000
Printers 60,000 Water bill 12,000
Telephone 30,000 Salaries 9,970,000
Kitchen appliances 80,000 Insurance 600,000
Cash at bank 48,750,000 Licenses 600,000
Cash at hand 5,490,000 Miscellaneous 5,050,000
Electricity bill 1,450,000
Water bill 12,000
Purchases 8,100,000
Telephone bills 20,700
Advertisement 1,379,000
Debtors 0

Long term liabilities

Bank loan 3,600,000
Interest@6%p.a 216,000

Total Assets=60,958,000 Total liablities=60,958,000

6.6BREAK-EVEN ANALYSIS
The point where a business does not make profit or loss

30
Breakeven point I terms of sale and money year 1
Variable expenses Fixed expenses
Item Amount Item Amounts
Purchases 7,723,000 Salaries 9,970,000
Telephone bills 49,700 Rent 600,000
Advertisement 1,370,000 Electricity 1,450,000
Transport 0 Water 12,000
Miscellaneous 4,850,000 License 600,000
Capital 2,842,300 Loan repayment 3,600,000
Opening account 3000
Renovation 0
Insurance 600,000

Total 16,835,000 Total 9970000

Breakeven point in terms of sales and money year 2

Variable expenses Fixed expenses
Item Amount Item Amounts
Purchases 5,000,000 Salaries 9,970,000
Telephone bills 20,700 Rent 600,000
Advertisement 1,370,000 Electricity 1,450,000
Transport 0 Water 12,000
Miscellaneous 4,850,000 License 600,000
Capital 5,591,300 Loan repayment 3,600,000
Opening account 0
Renovation 0
Insurance 600,000

Total 16,832,000 Total 9970000

31
Breakeven point in terms of sales and money year 3
Variable expenses Fixed expenses
Item Amount Item Amounts
Purchases 8,100,000 Salaries 9,970,000
Telephone bills 20,700 Rent 600,000
Advertisement 1,370,000 Electricity 1,450,000
Transport 0 Water 12,000
Miscellaneous 5,050,000 License 600,000
Capital 2,291,300 Loan repayment 3,600,000
Opening account 0
Renovation 0
Insurance 600,000

Total 16,832,000 Total 16,832,000

Breakeven point= total fixed cost

Gross margin percentage
Gross margin%=(gross profit/revenue)*100
Gross margin %= Annual sales-variable sales*100
annual sale
Revenue year 1= 29,190,000 Rev year 2= 49,700,000 Rev year 3=54,240,000
Gross Profit year1=18,490,000 GP year2= 44,000,000 GP year3= 53,440,000
Summary break even point
Item Year 1 Year 2 Year 3
Break even point 106,638 149,021 16,583,740

6.7POFITABILITY RATIOS
GPM: Used to determine whether the profit margin is sufficient enough to cover operations costs
where pricing policy needs to be reviewed, it is computed by driving gross profits by sales.
Gross profit= (gross profit*100)/owners equity
G.P.M is prepared for the first 3 years of business operation

32
Summary: gross profit margin
Year 1 Year 2 Year 3
GPM 1026.99 786.94 2332.30
Comments:
ii. RETURN ON EQUITY RATIO
Determines the rate at which the business is receiving returns on owners’ equity to the business.
It is computed by driving net profits after tax to owner equity.
R.O.E= (Net profit after tax*100)/owners equity
Equity yr1=2,842,300 yr2=5,591,300 yr3=2,291,300
Net profit yr1=-9,671,500 yr2= 2,452,800 yr3= 22,151,300
Summary: Return on equity
Year 1 Year 2 Year 3
NET CASH -340.27 43.96 966.76

6.8 DESIRED FINANCING

Capital required to start business
Item amount remarks
Owners equity 3,000,000 Cash
Loan KCB 5,500,000 Cash
Savings 2,000,000 Cash
Sacco 5,000,000 Cash
Total 15,500,000 Cash
TOTAL PROPOSED CAPITALIZATION=Ksh.15,500,000

6.9 PRODUCTION LOANS

Bank loan= (6/100*5,500,000*5)+5,500,000= ksh.7,150,000
Sacco loan= (3/100*5,000,000*6)+5,000,000= ksh.5,900,000
Total loan amount payable(loan+interest)= ksh.13,050,000

Funding Loan Rate of Period of Interest on Total Remarks

section interest payment loan
KCB 5,500,500 6% per 5 1,650,000 7,150,000 Achievable
annum
Sacco 5,000,000 3% per 6 900,000 5,900,000 Achievable
annum

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