Executive summary

BUSINESS

Murungu Plumbing Services is a private limited company which deals with plumbing works
and it owned by Tafadzwa Murungu a holder of a class one artisan plumber. Aimed at providing
standard services and quality plumbing products to its customers at an affordable price to create a win
win situation to both the client and the service provider. It’s a small private company located in a small
town named Glendale which is 80km outside Harare.

OBJECTIVES

1. To become a company which provides goods and services beyond customers’ expectations.
2. To become an established company that is found all over the country
3. To create a workable environment to the citizens of Zimbabwe
4. To create a sustainable business that will survive on its own cash flow
5. To increase employment in Zimbabwe by 15% through opening of workshops and hardware’s
around Zimbabwe

KEY TO SUCCESS

Providing quality services beyond customers’ expectations

VISION

Becoming number one service provider of quality services at a fair price

MISSION STATEMENT

To become number one service provider and seller of plumbing equipment

1
DESCRIPTION OF THE BUSINESS

COMPANY SUMMARY

Murungu Plumbing Services is a private limited company which is a family business

located in Glendale 80km out of the capital city which is Harare. The business was established after
seeing business opportunity in a small town of Glendale which construction has become a major
activity in the town hence there is a potential for business to become a success

AIM OF THE BUSINESS

In response to the growing of the construction industry the company is aimed at providing modern
plumbing equipment and services

DEALING WITH UNEMPLOYMENT

The unemployment issue will be addressed through the provision of creating permanent workers,
contracted workers and also training aspiring people who would want to become professional
plumbers and drain layers.

SERVICES PROVIDED

MURUNGU Plumbing Services offers plumbing related works which include the following
: Installations of new plumbing works
: drain laying
: Gas plumbing and appliance repair
: Installation of septic tanks, lawn sprinklers and hot water systems
: Irrigation plumbing
: Maintenance related to all plumbing works
OPERATIONS OF THE BUSINESS

Operates during week working days and half day on a Saturday

EQUIPMENT’S AND MATERIALS REQUIRED

1. Set of pipe ranges ranging from 10mm to 36mm

2. Chain tong
3. Set of basin and shifting spanners
4. Hacksaws
5. Set of sewer rods
6. Drills and drill bits
7. Tools boxes
8. Glue (solvent cement)
9. Oxy acetylene gas tanks
10. Set of screw drivers
11. Measuring tapes
12. Safety clothing
13. Shovels and picks
14. Dump level
15. Vehicles
16. Plumbing hardware materials 3
FINANCIAL PLAN

STARTUP OF THE BUSINESS

The business will be started through the money that I Mr Murungu as a professional plumber saved,
investments, loans and overdrafts and also family support.

Sources of finance
Bank loan $11 000
Overdraft $5 000
Savings $22 000
Family financial support $5 000
Investments $5 000
Total expenses $48 000
STARTUP EXPENSES

Rentals $5 000
Fuel $2 000
Salaries and wages $10 000
Water and electricity $2 000
Tools and equipment $10 000
Business license $ 500
Food $1 000
Safety clothing $3 000
Total expenses $33 500
ASSERTS

Motor vehicle $ 4 000

Warehouse/Workshop $ 12 000
Tools and equipment $ 5 000
Total Asserts $ 21 000
IMPORTANT ASSUMPTION

Financial assumption based of the forecast below

General assumptions Year 1 Year 2 Year 3

Current interest rate 4% 7% 10%
Long term interest 5% 5% 5%
Tax rate 9% 11% 13%

BREAK EVEN ANALYSIS

Monthly units break even $ 5 000

Monthly revenue break even $ 20 000

ASSUMPTIONS
Average per unit revenue $ 100
Average per unity variable cost $ 1.00
Estimated fixed cost $2 000
13 PROJECTED PROFIT AND LOSS

Profits

FIRST YEAR SECOND YEAR THIRD YEAR

0.5% 1.75% 5%
Loss
FIRST YEAR SECOND YEAR THIRD YEAR
0.4% 0.3% 0.2%
SALES FORECAST

Units Sales Year 1 Year 2 Year 3

Stream fitting and piping $ 15 000 $17 000 $20 000
General pipe services $10 000 $12 000 $14 000
Gas plumbing and appliance repair $13 000 $15 000 $20 000
Installation of septic tanks $8 000 $10 000 $12 000
Total units sales $46 000 $54 000 $ 66 000

PROJECTED CASH FLOW FORECAST

DETAILS YEAR 1 YEAR 2 YEAR 3
Balance b/f 17 000 27 850
Income
Sales 10 000 30 000 34 000
Cash from debtors 5 000 5 000 7 000
Capital introduced 20 000 7 000 85 000
Total income 35 000 42 000 27 850

EXPENSES

Rentals 200 200 200

Water/electricity 100 100 100
Food 100 200 300
Airtime/Wi-Fi 500 500 500
Fuel 1 000 1 500 3 500
Wages/Salaries 2 500 3 000 5 000
Tools/equipment 3 000 ………… 5 000
Materials 10 000 12 000 12 000
General services 2 000 2 000 2 000

SWOT ANALYIS
STRENGTH
*Highly qualified staff
*Quality services to be provided
*Use of modern equipment and technology

WEAKNESS
*Poor road networking
*Competition

OPPORTUNITY
*Government support through ministry of SMEs and indigenization and empowerment of youth
*Availability of apprentice students and own the job training students from the colleges
*Rapid growth of towns which is supporting construction services

THREATS
*Competition
*Changes in government policies e.g. employment laws
*Changes in economic policies
*Economic hardships
*Outbreak of pandemic diseases

OWNERSHIP AND MANAGEMENT STRUCTURE

The business is owned by Mr. Murungu since it is a small company that is starting he is the manager
and the owner of the small private limited company
 m anager
artisan

accountant
general
hands

Manager
Is the owner of the business and also the head of management? Also deals with the days to day activity
and seeks out contracts for the running of the business. He also deals with the employment of people
and contractors. In general he is the owner and the one who gives out day to day task.

Artisan
Is an experienced plumber who works hand in hand with the general hands in order to deliver the
required plumbing needs and services? She/he is the one who is in charge of maintenance services and
also manages the workers he/she works with.

Accountant
In charge of all the finance of the business. She/he reports directly to the owner. Records the cost of
doing business and receives the money earned through the services, equipment and maintenances and
records the annual income and the monthly income of the business.

General hands
These are mainly contractors hired to do any work and mainly are tasked with manual labor to assist
the artisan in charge of service delivery and to load and of load tools and equipment, ware house
materials and excavation task.

MARKETING PLAN

OBJECTIVES
• Increase income by 12%
• Overcome losses and become credit free
• Provide clients with the best outstanding goods and services

MARKET ANALYSIS

Glendale is a small town outside Harare located 20km outside Mazowe. Since it is a small town there
has been a lot of construction works taking place since it is developing. The growth of commercial and
residential buildings makes it ideal for Murungu plumbing services company to grow in stature and an
ideal market to start a business.

MARKET RESEARCH

Research was carried out through interviews, surveys and questionnaires.

Individuals and households:

Glendale is a small town developing town which makes it ideal for the demand of plumbing services.
Since it is still developing there is the need from each household to require plumbing services.

Corporates
Glendale is growing in corporates hence these makes it an ideal place to located the company which
will ensure the company’s lucrative deals and investments
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Estates owners and Developers
Glendale has become an ideal place for estates owners and land developers since it is located near the
capital city and also near a tourist resort area which makes the Murungu plumbing services company
ideal location and land so endorsement deals with the developers and estates owners.

Government Agencies
Since there are no many plumbing companies in the area, there are high chances to secure contracts
from the government agencies which in return through high quality services provision will earn a
name for the
MARKET ANALYSIS SHOWING POTENTIAL CUSTOMER GROWTH IN HUNDREDS

5.5
YEAR 4 4
3

4.8
YEAR 3 3.8
2.5

4.4
YEAR 2 3.5
2.4

4
YEAR 1 3
2

0 1 2 3 4 5 6

Households and individuals Corperates and Real Estates owners

Government Agencies

TARGET MARKET

Targeted markets

SALES AND MARKETING STRATEGY

Murungu plumbing services in turns to use the market mix as it selling strategy
PLACE
The company is going to be located near the CBD of the township of Glendale to lure the customers in
and around the town of Glendale.
10
PRICE
Plumbing services pricing will vary according to the structure of building or place to be serviced hence
we have come out with plan not overcharge our customers and also taking into account of other
competitors pricing. There would be a discount to the first ten clients of that very day and also the
pricing is negotiable in order for both parties to benefit hence the aim of the business is to make a
profit.

PRODUCT
Products and services will be per customer specifications and of standard and high quality.

PROMOTION
Promotions will be held annually to attract new customers and to increase business profits. These will
be conducted through advertising.

PEOPLE
Preferably local skilled, semi-skilled and unskilled people will be hired or employed to deliver quality
services and to attract new customers through the sweet gospel of quality work.

PROCESSING
Operations of the business will be conducted on site e.g. quotation which services time for both the
client and service provider.

PHYSICAL EVIDENCES
Company may take at a tour or show some clients some of the work that has been done before and
give assurance to the client of quality service delivery.

SALES STRATEGIES

1: Advertising through local newspapers, catalogues, internet and TV and radio stations

2: Offering clients’ money back if they are not satisfied with our services
3: Offering door to door delivery of purchased goods

4: Open to any business suggestion and customer specified requirement

PRODUCTION AND OPERATIONAL PLAN

OPERATIONAL PLAN TIME TABLES

DAYS MORNING LUNCH AFTERNOON

Monday 08.00 – 10.00 10.30 – 13.00 14.00 – 16.00
Tuesday 08.00 – 10.00 10.30 – 13.00 14.00 – 16.00
Wednesday 08.00 – 10.00 10.30 – 13.00 14.00 – 16.00
Thursday 08.00 – 10.00 10.30 – 13.00 14.00 – 16.00
Friday 08.00 – 10.00 10.30 – 13.00 14.00 – 16.00
Saturday Off Off Off
Sunday Off Off Off

Weekends and holidays for emergencies only

APPENDIX

CONSULTANT
MR Vhiriri
Mutare City Council
PO Box 112
Mutare

PROFESSIONALS
Masimba Construction
PO Box 36 MSASA
Harare

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BIBLIOGRAPHY
Judith Mushipe 1998 A level business study publishing house Zimbabwe
Bruce Dual 1992 Management of business working ton, London, UK
Wilson and Philemon 1990 Strategic Marketing Management Butterworth, Heinman
MURNGU PLUMBING SERVICES
123 GLENDALE TOWNSHIP
GLENDALE
CELL:0779598546
EMAIL:tafadzwamurungu20@gmail.com
CONTENTS

1…………………………………………..Executive Summary

2…………………………………………Description of the business

3………………………………………….Operations

4…………………………………………..Financial plan

8…………………………………………Swot analysis

9………………………………………….Ownership

11…………………………………………Marketing plan

14………………………………………….Production plan

15…………………………………………...Appendix

16…………………………………………..Bibliography