CHAPTER ONE BUSINES DESCRIPTION

1.0 introduction

1.1 Business Name

 What is your name( name of the entrepreneur )

 What will be the name of the proposed business? Explain how you arrived at the name of the enterprise -
show creativity-originality
 When were you born ,live or hails from?
 What is your present occupation
 What are your educational, technical and professional qualifications
 (State when and where the qualifications were the qualifications were obtained)
 What is your relevant experience in business you propose to start.(state when and where obtained the
experience).
 How do you plan to compensate for your lack of experience (if any) in the business you plan to start?
 When will the proposed business start its operation? Ensure to state exact date, day ,month and the year for
example
1st January 202-

1.2 Location and Address

 Where exactly will your business be located ?(consider urban/rural areas, trading centre, plot number of
premise, land registration number name of building/house, road street or avenue)
 How does your chosen business location relate to the market area within which you wish to operate?
 What infrastructure exists at your planned business location ?(indicate the availability of roads, railway air
port, telephone network, water and electricity among others)
 How close is your business location to source of raw materials, potential markets, employees home,
potential suppliers and critical services?

1.3 Form and Type of Ownership of Ownership

 What would be the form of ownership of your proposed business eg

solepropriotorship,partnership,company) Ownership
 How much will you contribute to the to your business (equity finance)?
 How much will others contribute to your proposed business .?how will these amounts be accumulated ?
 What percentage of the proposed business will be financed from outside sources eg( 30% from equity)
bank if loan will be acquired what will be the repayment period and what will be the interest rate?
Item type kshs

Owner Equity finance

Other souces Borrowed (……………)

1.4 Products and Services

 What products or services will be proposed business offer

  Indicate the main feature(s)of the proposed services or products[ indicate
size,colour,shape,texture,materials,quality, and packaging of the products].
 What benefits will customers obtain from the products or services? Consider performance, convenience,
economy, durability, comfort, usage, flexibility,servicing,and warranties of the products or services.
 What other unique features of the products or services will give it advantage over existing competitors.

1.5 Justification of Business Opportunity

 What specific needs will the proposed business venture satisfy [consider unsatisfied local demand export
orientation, import substitution ,potential in growth industry]
 What contribution will be the proposed business make to the local community?[consider the following
points ,employment creation ,use of local resources, promotion of indigenous technology or provision of
gods and services].
 Prepare a SWOT analysis on
Internal
External

1.6 The Industry

 Which industry does the proposed business belong to e.g. transport, ict,engineering , banking, teaching
food industry ,tourism etc
 What is the size of the industry generally around the proposed location of business?[consider the total
number of firms in the industry]
 What will be the size of the enterprise in the industry? [indicate whether small ,medium ,large comparative
to the existing ones]
 What kind of technology is used in the industry consider whether labour intensive or capital intensive
 What level of technology will be applied in the industry ? [indicate whether modern,obsolete,or outdated
sophisticated or simple ]
 Whats the average number of employees in the enterprise of the industry
 Whats is the basic capital requirement for the entry into the industry?
 What are the seasonal factors experienced in the industry?
 What are the trends and prospects of technological development and competiveness in the industry?

1.7 Business Goals

 What will be the major goals of the proposed business?

 What would be objective(s) of the proposed business?
 How will the goals or objective(s) be evaluated

1.8 Entry and Growth Strategy

Entry strategies focus short term objectives

Growth strategies focus long term objectives.
 How will the proposed Growth strategies and gain acceptance in the market area? Consider competitive
advantage, weakness among competitors, pricing distribution advertising or promotion methods.
 What opportunities would be there be for the growth of the opportunity in the proposed business?
 What are your plans for growth and expansion beyond the entry products or service?
CHAPTER TWO : MARKETING PLAN

This part of the plan describes how the business intends to sell its products or offer services. It identifies
the customers and the competition and outlines the pricing, promotion and distribution strategies.

2.0 Introduction

2.1 Customers

Potential Customers

 Describe the potential customers of the proposed business

 Who will be the potential customers of the proposed business[classify customers into
homogenous groups]
 What will be the characteristics of each group of customers [indicate the customers
age ,sex,education level ,occupation ,religion or ethnicity where applicable
Customers group Characteristics

 What will the customers be looking for in product or service ?[consider

performance,economy,convenience,safety ,comfort or durability of each product or service ]
Product or service Customers requirements

 When will customers purchase the products/services ?[consider the time of the day ,week,
month of the year
 What are the purchasing partners or characteristics of the customers [consider to indicate the
quantity likely to be purchased at a given time, the frequency of purchase and the desired
mode of payment]

2.2 Market Share

 How many people or firms approximately need the product/services base on the total
population?[calculate the proportion ]
 How many units of each products or service will be expected to be sold in total per month?
  What will be the estimate of expected total sales in units per month?

2.3 Competition

 Describe the potential competitors[those operating similar business to yours]

 Who will be the potential competitors of the proposed business?
 Where are the potential competitors in relation to the proposed business location
Name of competitor Location [distance apart from the proposed one]

 How will the location of the competitor affect the proposed business [state the advantages of
the location in relation to others]
 What size are the competitors ?are they small,medium,large n relation to the proposed
business?[consider assets , sales volume, number of employees ,number of brands or variety]
Proposed business Competitor A Competitor B Competitor C
Assets
Sales volume
Number of
employees
Number of
brands

Provide key guide for the representation above .

 What are the advantages and disadvantages of the size of the proposed business ?
 How do the products or service compare with those to be offered by competitors.?for each
area comparison allocate a score on the scale from I (low) to5 (high). Consider the benefits to
customers technology management ,location, distribution, channels and other areas specific to
the proposed business.
Proposed business Competitor A Competitor B Competitor C
Benefits to
customers
Technology
Management
Location
Distribution
channel
Specify
others

Key guide 1-2 =Low, 3 =Average,4-5= High

 With reference to competitors overall strength and weakness in what ways will be easy or
difficult to compete with them?
 What will be the plans to capitalize on the weakness of the competitors?
2.4 Method of Promotion and advertising

 Describe the method the entrepreneur will use to advertise the products or services to the
customers.
 Which advertising media will entrepreneur use?
 How often will the advertisement and how much will advertisement cost?
 How will the products or service will be portrayed? what image will be projected in the
advertisement ?
 How will the entrepreneur measure the effectiveness of the advertisement?
 Describe the method the entrepreneur will employ to promote the products or services
 What promotional campaign will entrepreneur undertake when introducing the products
/services?
 Which promotional methods will entrepreneur apply on regular basis?[consider using trade
shows,sponsorship,or competions]
 How much will each method of promotion cost
 How will the entrepreneur measure the effectiveness of the promotional campaign?

2.5 Pricing Strategy

 Describe the pricing strategy to be used

 What methods will be used to calculate the selling price of the products or provision of services
 What factors will the entrepreneur consider in setting the selling prices?[consider government
regulated prices ,competitors selling the prices, customer purchasing power .etc
 Will the selling price be fixed or variable?. Give reason for the decision
 What credit terms will suit the products /services of the proposed business?
 What criteria will be used for determination of creditworthy of a customer?
 What will be charged after sales services ?[show the cost of the services]

2.6 Sales Tactics

 Describe the methods the entrepreneur will use to make sales

 What selling methods will be employed.[consider selling direct to customers, personal selling, or
selling indirectly .e.g. through a gents ]
 If the entrepreneur intends to use the agents how will they be selected and motivated, recruited,
retained and remunerated as sales force ?
 What geographical areas will agents cover during the business operation?

2.7 Distribution Strategy

 How will the entrepreneur get the products to/services to the customers ?[consider using sales
representatives ,wholesalers, franchisers ,or distributors]
 What means of transport will he or she use? Consider road and railway
 How much the chosen will means cost per month?
 What specific distribution problems does the entrepreneur is anticipate
  How will the entrepreneur solve the anticipated problems in the proposed business?

CHAPTER THREE: ORGANIZATIONAL PLAN

Purpose

In the organizational plan of the business, you will develop policies regarding staffing and management
of common resources for efficient production of goods or effective performance of services. You will
present, in detail, the job analysis, job descriptions, employee evaluations, training plans and
compensation plans for your staff. You will also indicate the supporting staff and services required for
your business.

3.0 Introduction

3.1 Organization Structure

 Draw an organizational chart for your proposed business

 How will your organisation be structured
 Draw here.

3.2 Managers and Qualifications

 Will you manage the business yourself alone?if not who will assist in the operations?
 What will be your duties and responsibilities in the proposed business
 How much salary will you draw per month?

3.3 Personnel number and duties

 Describe the duties and responsibilities of key members of your proposed management team.
  What will be the exact duties and responsibilities of each member of your proposed
management team? (Indicate the salaries which they will receive commensurate with their
duties and responsibilities).
 What incentives will you provide to members of the management team?
Names of job Qualifications Duties or responsibilities for Proosed slaries

kshs

Other Personnel

 Identify the other personnel you will require in the proposed bsiness.
 How many employees will you require in total?
 What will be their job titles and job descriptions?
 What skills should the employees possess?
 Where will you obtain qualified employees?
Names of Qualifications Duties or responsibilities for Proosed slaries
job
kshs

3.4 Recruitment ,Training and Promotion

 How will employees be recruited in order to join the proposed business enterprise?
 What would be the criteria for recruitment exercise
 What will be your training plans for your employees.(detail plans for staff performing differing
functions)
 How will your employees be promoted?
 What will be the criteria for promotions?

3. 5 Remuneration and incentives

 Describe how you will you remunerate or reward your employees.

 What incentives will you provide to your employees?
Job Number of staff Month Pay Rate Other Benefits Total
category
Kshs Kshs Ksh
3.6 Licences, Permits and By Laws

 Which legal documents will you require in order to operate the business
 How much will it cost you for each of this legal document p.a e.g license, health permit,
environment permits
 Where will these documents be issued from (source)?

3.7 Business Supporting Staff and Services

 Indicate the supporting staff and services you will require for your business.
 Will the proposed business employ the support staff-those who aid the business run its
operations to succeed?
 Who will be your banker?
 Who will be your accountant?
 Who will be your lawyer?
 Who will be your business or management advisor?
 Who will be your other supporting staff or advisors?
 Where will you obtain your postal services?

CHAPTER FOUR: OPERATIONAL (PRODUCTION) PLAN

Purpose

In this phase of the business plan you will describe the kinds of facilities, labour and overheads that
required to manufacture your proposed product(s) or to render your proposed service(s).

 If you are in the manufacturing business you will explain the manufacturing process involved in
making your product. For a service business you will describe the key features in offering
services.
 You should also indicate the regulatory requirements compliances and approvals that will affect
your operations.

4.0 Introduction

4.1 Product/Service design and development

 Describe your intended product design and development.

  What will be the design(s) of your proposed product(s)?
 How do you intend to develop your proposed product(s)?
 What costs will you incur in designing and developing your product(s)
 What kind of technology will you apply in manufacturing your products(s) or offer your services?
 What kind of technology will you use to manufacture your product(s) or offering your service(s)?
 Is your choice of technology the best available? If not, why do you intend to use an alternative
technology?
 How appropriate is your choice of technology? (consider simplicity in utilization, cost
effectiveness, flexibility in adoption efficiency in production extent or local availability or
frequency of maintenance)
 What are your immediate plans to cope with changes in technology which will affect your
proposed business?
 What are your future plans to cope with technological developments which will affect your
proposed business?

4.2 Production Facilities and Capacity

 Describe the machinery and equipment you will require for your production or provision of
service.
 What machinery and equipment will you need to be begin production or service? (give
specification,quantity, date needed,source and cost of equipment?
Specifications Date required Number required Cost per unit Total cost

Which machinery and equipment will be hired and at what cost (if any).

 Explain your plans for repairs and maintenance of the machinery and equipment.
 Who will repair and maintain the machinery and equipment? When?
 Will the spare parts be available locally? If yes, who will be the suppliers? At what cost?
 If spare parts are not available locally, what important arrangements will you make? At what
cost?
 Describe the features of your proposed workshop/shed/factory layout.
 Will you own or lease the workshop/shed/factory space?
 If the workshop will be leased at what cost?
 Draw a ground plan of the proposed workshop space showing the location of machinery and
equipment and various operations.
 Will the workshop space allow for future expansion? If no, what are your plans for expansion?
 Describe the other fixed assets you will require for your business.
 What other fixed assets will you require?

4.3 Production or service Strategy

  Describe your monthly material requirements.
 Will the materials be available throughout the year? If no, what are your plans for months of
shortages?
 How will the raw materials be transported to your business? At what cost per month?
 Describe your monthly labour requirements.
 How many direct and indirect workers will you need?
 What should be your workers level of skills?
 What will be the total cost of production labour per month?
 What will be the total cost of production labour per month
 Describe your monthly production expenses.
 What will be your preliminary production expenses.
 What amounts will be involved?
 What will be your monthly production overheads? ( e.g. rent, electricity, telephone, and water)
 Calculate the cost of production.
 What will be your expected production per week, month, quarter or year?
 What will be the production cost per unit?
 What will be the total cost of production in a given period? ( e.g. week, month, quarter or year).

4.4 Production Process

 Describe in detail the production/service process.

 Indicate the exact production steps which will be involved in producing your proposed
product(s). (indicate main features of offering your proposed service(s)).
 What external factors are likely to affect your production process?
 How do you intend to minimize the impact of the external factors?

4.5 Regulations affecting opperations

 Indicate the government regulations, compliances and approvals that will affect your business.
 What permits and licences will you require? From whom? At what cost?
 What local taxes will you be required to pay? (show an estimate of the local taxes)
 What approvals and compliances will be regularly required and at what cost?
 Which other (specify) regulations are likely to affect the nature of your business opportunity?

4.6 Equipment or other material

 Describe other equipment that you will require for business oppretions
 What other equipment will you need examples compuers,telephone faxmachines,modem ups
item Date needed quantity Cost per unit Total kshs