Professional Documents
Culture Documents
CHAPTER ONE
INTRODUCTORY PAGE.
The sole owner of the business will be FAITH KAPKARICH KIBET. She is 20 years old and
was born in Uasin Gishu county.
The said exercise was Skewedly effected with a view of converting the much acquired
theoretical skills into practical. The business owner has some skills and experience she acquired
from his distant aunt who owns a textile mega shop in Nairobi. Due to the ever thriving nature of
the said shop, combined with the insatiable passion of the owner to own one, the owner was by
the bug of opening a replica of the same. Though her business is almost similar to the course she
is pursuing, she intends to incorporate and consequently apply knowledge she has tirelessly
acquired in her Entrepreneurship Education (E.E) lecturers and this will arguably place the
owner in a proper angle to effectively run his business.
This business in question requires a sizable amount of money to jumpstart and operates it. For
this to be realized, but the owner has devised a number of ways to finance his dream. Below is
the table showing prospective sponsors cum financers from whom the owner will solicit (draw)
and acquire his capital;-
PROPOSED BUSINESS
NAME OF THE PROPOSED BUSINESS
Since owner’s aunt is her town’s sole dealer of textiles and its related items, the owner decisively
named his business FAITH TEXTILES. This name was stemmed from his aunt’s.
In addition, the name was not parent given but customer: meaning she earned that name from her
ever jovial customers, they like calling her FAITH thus the name. With the view of also coping
with stiff & real competition in real business world, the name will insurmountably play a
colossal role in ensuring that the owner is always ahead of the game in his business. Since they
are used to FAITH’s merchandise, so will they to owner’s merchandise. The name will also be
appropriate and conspicuous to some of my customers who are my aunt’s buddies.
PRINCIPLE CUSTOMERS
Most FAITH ’S TEXTILES customers are middle age and young people. They are mostly
women, nurses, sales woman and children, children who come to FAITH TEXTILES are
usually accompanied by their parents. All these customers differ in their expectations of products
and services, most purchasing are conducted during the day and throughout the year having the
highest number in November and December (festive seasons) 10% of the market share in Uasin
Gishu town. With fullness of time, depending with the going of the business, the owner will kiss
24 HRs services. This will in way enable the management of FAITH TEXTILES cope with
influx of customers especially during peak jiffies.
BUSINESS LOCATION AND ADDRESS
MARKET AREA
The business is located in Uasin Gishu town in coast province. It’s the heart of Uasin Gishu
town opposite No Maneno Bazaar shopping centre along Digo Road next to GPO in the Bima
Towers which is among the largest buildings in Uasin Gishu town and is brown and cream in
colour. The business can be easily located since it is one of its own in wider Uasin Gishu town
and is nestled in busy hub of the same town. At the door is a medium-sized silver-coated name
plate with the writings “WELCOME TO FAITH TEXTILES”.
INRASTRUCTURE
The chosen town has a good passable roads connecting for easy transport with good telephone
network for faster and easy communications. Also, the electricity is sufficiently supplied with
high security for the customers who come with their properties like vehicles motorcycles etc.
RAW MATERIALS
Uasin Gishu town being the centres of most of the industries, Faith Textiles can easily access its
raw materisl which it would be selling off the rack (readymade) clothes and other related
merchandise. The market area will be within Uasin Gishu town and its environs.
FAITH TEXTILES
P.O BOX 3450-30100 UASIN GISHU
TEL; 0715-856-226
FAX; 050-300179
Email: Faithtextiles@hotmail.com
FORM OF OWNERSHIP
OWNERSHIP STRUCTURE
The business shall be operating as a sole proprietorship meaning that the business, owned and
managed by one person with employee staff delegated to various. To make operations of Faith
textiles a reality, the entrepreneurs requires ksh 1,000,000
INDUSTRY
Faith textiles is under Clothing and Textile Industries. The size of the proposed business is
medium scale, in the sense that it only sells readymade garments. It also buys materials of
diverse colors which are meant for making quality suits. It is also included as a medium scale
since the basic capital requirement is ksh 1,500,000. The textile industry is considered
industrious with a lot of machines needed at least at every stage of production and since the
textile industry is considered to be all around active industry. Manual work cannot be depended
on since it is very slow and unreliable sometimes.
Clothing and textile is included to be active during daytime and costly during festive seasons like
Christmas, New Year, Easter and other holidays. During this season, people buy a lot of
garments thus clothing and textile industry makes sure there are enough products in the market.
With the steady increase in population the clothing and textile industry proves to be having a
very stiff competition from other industries. Some negative factors that affect this industry
including political instability of a country this affects the industry because when there is a tribal
clashes people tend to move from towns due to fear this reduces the number of customers and
this reduce our sales volume. This also affects the customer base index of our business.
Another negative factor is close down of textile industry due to poor governance. This affects the
customers since there would be low production which leads to high priced due to high demand
and this also affect the quality in fact may lead to low quality garments.
This reduced sales volume, since also a few customers may be able to afford the few productive
garments in the market.
Some seasonal factors can be controlled by the entrepreneur while others such as political
instability cannot but it’s up to the government to ensure that the citizens are protected.
Seasonal factors such as closure of textiles industries, the entrepreneur can find an alternative
source of raw material like in Nairobi. As seen earlier during festive seasons the clothing and
textile industry makes a lot of profit since people tend to celebrate by putting on well with new
classical design thus it is up to this industry to ensure that customers demands are met and this
makes it more competitive hence it grows.
The entrepreneur has selected a place where there was very little service offered by other
clothing malls. She took a great deal of time to investigate and found the real needs of customers,
they did not want to track for long distance for expensive merchandise yet they had little to
spend. The entrepreneur decided to discount his customers for the first two months.
This was as follows;-
Item ksh
Shirt 300.00
Skirts 120.00
Petticoats 50.00
Polo shirts 750.00
B/top 30.00
The entrepreneur also decided that people will be placing orders from there. This convenient to
customers since they are sure of getting our services at convenient time.
Faith textiles also offer to train employees on how to handle its customers with courtesy and in
the humble manner in a way they will appreciate and look forward into coming back again.
Faith textiles competitors don’t have skilled employees; just anybody they think is a salesman or
lady. They don’t have time to listen and talk to customer’s needs and wants. That assume to
know what the customers wants and that is the major weakness. At Faith textiles, we listen to
what our esteem customers have to say by so doing the customer feels free to speak of their
favorites thus makes their choices. This made us to attract more customers thus scaling our
customer base.
As for growing strategy, policies have been set with respect to time. This includes:
Opening other branches in Nairobi and Nakuru.
Improve the services offered
Living by the mission and vision of the business precepts.
In order to achieve the above strategies, Faith textiles growing management will keenly observe
and exploit any opportunity to the maximum.
Other opportunities seen from the above stated trends are;
With the upcoming market share of the garments sales there seems to be less supply of items
which might need to expand its production departments the opportunist, Faith textiles
investment develops, plans to capitalize on advantages the business opportunities arising from
these business trends. The plans are just simple to collect the necessary materials to initiate a
successful business opportunity.
CHAPTER TWO
MARKETING PLAN
CUSTOMERS
Most Faith textiles’ customers are at their teens and young people. Most of who are lawyers,
sales woman and men, teachers, students and children’s. Children who come to Faith textiles are
accompanied by their parents. These entire customers differ in their expectation of product and
services. Most of my customers are believers who believe and trust in God. So due to this reason
they need decent fashions. Others like student needs fashionable outfits like miniskirt, hipsters
thus my textile complex accommodate all of them.
Most of the purchasers are done during the day from 8.am to 8.pm through the year and during
the monthly of November and December (the festival season) Faith textiles has a close of 5% of
market share in Uasin Gishu town. The customers aged between 21-35 who are well educated.
Some work as business men and women, they are known to be successful. Women seem to be
the majority of the customers. They are mostly lawyers, sales man and woman. Their salary
range from 30,000 and above. As for the ladies, they are mostly secretarial and receptionist
telephone operators, clerks and business women.
The Faith textiles owner has a diary where she pens down the contacts of his customers. This is
solely done for easy correspondence between the owner and his client.
The customers buy their goods especially things like handbags, earrings and necklaces on cash
and other things like outfits may be taken on credit (only customers who frequent the premises
enjoys the said services) then they have to pay in installments.
Since the customers like the best quality, Faith textiles complex is ready to improve on its
service delivery. By trying to improve Faith textiles will attract more and more customers thus
increasing the sales. The peak of sales season is toward the end of the year. This is so that
because this time of the year is known by wedding rings, shoes, outfit, hand bags etc for the
occasions.
COMPETITION
Uasin Gishu Municipality has various clothing malls. Faith textiles is nestled in a place where it
is considered to have many competitors. The market size being 3,000,000 the toughest
competitors of Faith textiles are Smart Girl Boutiques.
Monalisa Boutique
Monalisa boutique is located 800 meters away from Faith textiles, it deals in readymade clothes.
Monalisa limits its marketed size because of its workers who do not value customers. They
report late and leave early. They are very hash to them even they shout to customers. Customer’s
needs are simply not in Monalisa employees. Furthermore, they charge high price in their
product and services as compared to other boutiques which will capitalize on and take advantage
of it. A Faith textile employs polite workers who value their customers too much. Since they
understand that the very customers are their bosses. The straight that Monalisa has is that it has
been in business for over 10years thus it has established roots and so its recognition.
The main threat is when or if the textile industries are shutdown. These will greatly affects the
inflow of raw material which is supposed to be constant or supplied through without any
shortage for the continuity of the business.
ADVERTISING AND PROMOTION STRATEGY
METHODS OF PROMOTION AND ADVERTISING.
Faith textile’s owner wants his business to be recognized for it to be promoted thereby making
profits. It is hard rather a very slow process, for a business to rise to recognition without it
engaging in a spirited advertisement. It takes a lot of time for people to notice that certain
business exist.
Since Faith textile does not have experience in Textile Industry, very few people know about it.
The owner uses posters and face to face to create awareness of his business to the customers and
the public as a whole. The most reliable modes of advertisement are through the radio,
Television and newspaper, worth the help of posters. The Faith textiles plans to start with face to
face and use of posters since they are very cheap compared to radio, television and newspaper.
She plans to put the posters around Uasin Gishu town. The owner plans to print 500 copies that
will cost around 1,500 shillings. This will be done by 6 people who are temporary employed to
post and each is paid Kshs. 200 and they will do so in a day. She also contemplates traversing the
town by throwing a mega road show with the aim of advertising his merchandise.
The most reliable mode of advertisement will be the Television and newspaper for those who
reside in town and the radio for those who reside at upcountry. This is because they convey
messages fast and covers wider areas respectively and more so they are reliable. Having this two
great advantages in mind , the Faith textiles uses local radio station BARAKA FM since most of
the residents speak Kiswahili language, the preferred television station is CITIZEN since it has
proved to be competitive than other stations like Nation TV, KBC, and KTN. When it comes to
the newspaper she chooses Daily Nation because it is read by the largest population compared to
Standard and Taifa Leo Newspaper. She chooses all these since they cover a wider geographical
plane.
The owner plans to advertise once a day, five times a week for two weeks. CITIZENS’s
advertisement department gave Faith Faith textiles the following rates to choose from.
CITIZEN Advertising Rates per Minutes per Session
Picture with words Kshs 1,100.00
Words without pictures Kshs 850.00
The Faith textiles chose to use pictures with words thus advertising once a day five times a week
for two weeks which is approximately Kshs 11,000.00. For the newspaper the owner decided to
use the Daily Nation to advertise for 3 days, which cost Kshs 650 per day. The advertisement
through TV will be immediately after the CITIZEN’s News at 7.00 pm inorder to catch up with
the attention of people. Also the advertisement through the local radio station (INOORO) will be
done thrice per day and it will also follows the radio news and this will cost Kshs. 1,200 per day
and it will run three days a week.
PRICING STRATEGY
The pricing policy is to maintain as low prices with a satisfactory profit margin or maintain the
growth of the business. Faith textiles will be buying its goods in Textile Industries in Uasin
Gishu directly which means that at first we may lower than 5% which is about.
Shirts @Ksh.320.00
Skirts @Ksh.130.00
Petticoats @Ksh.60.00
G/Dress @Ksh.280.00
This will adjust upwards to match with the increasing demands and running cost and the
customer’s economic level being considered, thus selling prices being variables. With the above
set prices, Faith textiles, our customers accepts our products thus we maintain them and attract
more others thereby increasing our market share.
The set prices ensures that total sales volume and services provided accounts to all the expenses
including rent, salary and any other bills accounts for. Discount will be considered to those who
buy in bulk, for example where the customer buys 4 shirts, 3skirts and 1 girl dress we will offer
him/her a discount of 10% of the total amount. The services that will be offered are after sales
services and garment mending which we have already sold.
SALES TACTICS
Faith textiles use direct selling where the products are sold on the counter. This is mostly for
customers who come for us during the day. Sales force will be trained and recruitment done in
Faith textiles. They will be required to submit their detailed CV and later to be interviewed in
person i.e. for the short listed candidates only. First the post will be advertised by distribution of
posters all over the town. Faith textiles estimate the cost of advertising at Kshs 2,500.00
Since Faith textiles owner has his own distributors, she motivates them by encouraging those
providing working tools and trying to understand them by sharing their grievances. This gives
the workers morale and they perform better hence provision of efficiency at work place.
DISTRIBUTION CHANNEL.
The Faith textiles will be distributing its products directly to the customers. Transport of the
products will be by business pick-up vehicles. During advertising and promotion of the business
customers will not be paying for full transport fee but as time goes by only a small fee will be
charged.
During distribution many problems are expected which include;
Fraud – In the absence of the manager the products may be stolen by untrustworthy employees.
To solve this problem, records will be kept to show the stock sold and stock in control.
Breakdown – The vehicles may breakdown therefore causes unexpected delays in supply and
distribution of products and to solve this problem specialized drivers who themselves have
mechanical experienced will be employed.
CHAPTER THREE
OVERALL MANAGER
Mrs Faith kapkarich kibet will be the overall manager. She will be also the director of the whole
investment duties and personnel. She will be the key manager of the management administration,
finance and works departments. She oversees and approves decisions from any sources within
the organizations before they are implemented in business main work. The overall manager will
handle the daily administrative matters and she will also review the achievements of all planned
goals and objectives to be achieved. Also she will be providing guidance on staff matters. The
overall manager will deputize Alice Njeri who is also operations head.
QUALIFICATIONS
The manager will be having Certificate in Fashion and design. In addition, she is a computer
literate and having certificate in Public Relation. For a start she would be earning ksh 20,000.
PERSONNEL
Sally will be the personnel manager. She will be sales manager and will be taking care of
employee welfare and oversee the entire workforce to ensure that the work is done appropriately.
He will be responsible in delegating responsibilities to the employees. The personnel manager
will also run the daily activities and provide the documents of the daily work to the overall
manager. He will make the daily attendance of the workers under him and ensure that
disciplinary actions are taken against any worker who is not undertaking his/her responsibility
seriously.
QUALIFICATIONS
He should posses a Diploma in Personnel Management
He should have a certificate in computer applications with a certificate in supplies
management.
He should be able to fluent in written and spoken English and Kiswahili languages.
He will get a start up salary of Kshs 15,000
MANAGEMENT PERSONNEL
The duties and responsibility of key members are:
CASHIER
Christina is a Kenyan aged 20 and still single. She attended her primary and secondary education
at Star of the Sea girls’ primary and secondary school in Uasin Gishu county.
QUALIFICATIONS
Christina has a certificate in Information Technology and she has done KATC II. Apart from
having numerical skills she has the ability to handle basic accounting, she has two years working
experience in similar positions, she has excellent interpersonal and communication skills.
RESPONSIBILTIES
The cashier will be handling cash in and out of the business. She will be also ensuring that the
books of accounts are well balanced off and that they are ready for auditing any time and filing.
SECRETARY
The secretary of Faith textiles is a qualified one to perform her duties. She is a lady aged twenty
three years and holding a certificate in secretarial course.
RESPONSIBILITIES
She will be typing and printing office documents.
She will be filing important documents of the business.
She will be making confirmations and appointments for the boss.
She will be handling visitors and clients to the manager.
She will be receiving and making calls on behalf of the manager.
She will be sending messages to the workers from the manager and also receiving
messages from the public and passes them to the required persons.
She will also ensure that the manager’s office is clean and organized.
QUALIFICATIONS
She must have a mean grade of C+
She should posses a certificate in Office Management III, Secretarial Duties II and
Business English III
Should be computer literate.
Should be able to take dictation and transcribe in shorthand 100/50 words per minute
DRIVERS
Faith textiles for a start will have a driver who will be transporting products from the
manufacturers’ i.e. in Uasin Gishu or Nairobi to our shop premises and also transporting items
bought by customers who buy in bulk. Also he will be required to keep the daily records.
QUALIFICATIONS
He should have three years experience in the same field
He should be proficient in both English and Kiswahili
He should possess knowledge in motor vehicle mechanics
He should possess a valid driving license from a recognized driving school preferably
class B.C.E
The organizational salary structure of Faith Textiles is as shown below
The incentives offered to the key management team will be in form of motivation in order to
ensure that everybody has good morale to work hard and give their best shot. Paying their rent in
good and at the right time and making promotions to them will be considered.
ORGANISATIONAL CHART
OVERALL MANAGER
PERSONELL MANAGER
CASHIER
SECRETARY DRIVERS
Messenger
They will be mostly being sent out to conduct organization business like collecting & posting of
parcels, paying electricity, water and rent bills. Being sent to other shops or supermarkets to buy
items required in the shop which we may be lacking.
Attendant
They will be helping to explain to customers of the products and services we offer move items
wrapping items bought by the customers and loading items to the customer’s car. They are also
expected to encourage customers to buy according to their needs.
Cleaners
These are personnel needed purposely for cleaning matters. They are also expected to clean the
shop, dusting of windows and since they will be casual workers thus they will be paid on a daily
basis. Their wages will be fluctuating depending on the work done, may be it will be ranging
from a hundred and fifty shillings.
Qualification
They should have atleast a mean grade of D+ and above with D+ in Mathematics, English and
Kiswahili.
They should be capable of writing and able to communicate fluently in Kiswahili and English.
The incentives offered to the key management team are to ensure that everybody has the right
morale to work hard. The motivation to be employed includes:
- Good medical schemes, housing and to some extend transport allowances that will cost
Faith textiles about Kshs 35,000 per month.
SUPPORT SERVICES
Faith textiles cannot survive alone but it needs other services for it to run smoothly and
succeeded. They will be used as achievement. There are people supporting the business and they
include:
Banking Services
The Faith textiles will have its own business account with the Commercial Bank of Kenya,
Nakuru Branch. The owner decided to use Commercial Bank of Kenya since they give banking
advices to their clients and also they offer free services.
Legal Services
The Faith textile will have its own lawyer to assist in legal matters and information as far as the
business work relationship is concerned. The lawyer ensures that the requirements as per the
labor Act is adhered to and to make sure that the business operates per the laws required.
Postal Services
The owner of Faith textile will acquire services cheaply and fast since the post office is about
700 metres away from the business premises. To facilitate this entrepreneur shall effectively take
charge as the link between Faith textiles and the post office. The post office charges will be
1,200 per year.
OTHER SERVICES
This includes insurance services from Kenindia Insurance Company at Kshs. 20.00 per year,
Internet installation from Africa region centre for computing at Kshs. 20,000 and Telephone
installation by Telkom Kenya at Kshs 10,000. All the above are resources of external supporting
advices and services. These shall be from customers and workers thus increasing efficiency of
the business.
CHAPTER FOUR
OPERATIONAL / PRODUCTION PLAN
PRODUCTION DESIGN AND DEVELOPMENT
The production design of Faith textiles will be determined by the manufacturers, since the
complex will be selling readymade clothes and other related items. The design will be made and
PACKED BY THE COMPANY (Textile) in question and supplied to us. The products supplied
will be ready for sale immediately after delivery. The customers shall be allowed to take items of
their choice according to the terms agreed.
The repairs are mostly done on computer; serving spare parts of both machines (sewing and over
lock) are easily available in the market/
PRODUCTION STRATEGY
Faith textiles have very few monthly materials to be purchased. This is so because its material or
items are bought on weekly basis. This includes clothes for ladies, children and gents with the
cosmetics items. Their sources are from textile companies in either Nakuru or Eldoret town.
The cost of Faith textiles includes:
TYPE OF COST MONTHLY COSTS (Ksh)
Materials required 40,000
Transportation 15,000
Workers/ labor 10,000
Oversheads 1,500
Other expenses
TOTAL COST Kshs 66,500
Machines 86,000.00
Equipment 66,000.00
Mobile Phone 5,000.00
Advertisement 13,000.00
Market research 13,000.00
Insurance 17,000.00
TOTAL 200,000.00
FINANCIAL PLANS 1
Starting= Initial capital – pre-operational cost
= 1,000,000-225,000
=775,000.00
WORKING CAPITAL REQUIREMENT
Working capital = Current assets – Current liabilities
ITEMS YEAR1 YEAR2 YEAR3
Stock of raw Material 413,000.00 430,000.00 446,666.00
Work in progress 300,000.00 280,000.00 320,000.00
Stock of finished goods 460,000.00 446,000.00 466,667.00
Debtors 94,000.00 125,600.00 126,000.00
Cash in hand 413,000.00 420,000.00 420,000.00
Cash at bank 632,000.00 619,038.00 619,096.00
180,250 142,885
License 24,000 9,000 9,000
DESIRED FINANCING
ITEM AMOUNT (KSHS)
Pre- operational 225,000
TOTAL 1,152,000
PROPOSED CAPITALISATION
Total Investment = Kshs 1,000,000
Your own contribution= kshs 650,000
Funds from borrowing services= kshs 350,000
PROFITABILITY RATIO
Gross profit = Sales-Direct purchase
Year I = 2700,200 -2,000,000
= 700,200