FACULTY OF COMMERCE

DEPARTMENT OF BUSINESS MANAGEMENT

STUDENT ELVIS CHINGUWA

NUMBER L0201285H

PROGRAMME MASTER OF BUSINESS LEADERSHIP

COURSE ENTREPRENEURSHIP

COURSE CODE COBL6104

LECTURER DR. Z. NTINI

Individual Assignment

Business Plan For:

Magagula Welding & Fabrication

 97 Industrial Sites Plumtre

Professionals in Welding & Customer Care Cell: +263 775 262 646

BUSINESS PLAN

Business Name Magagula Welding & Fabrication

Directors Rejoice Magagula

Address: 1266 ZBS Plumtree
Cell: +263 775 262 646
Qualifications: Mechanical Engineering (Bulawayo Polytech)

Business Address 97 Industrial Sites, Plumtree

Phone +263 89 2805519

Whatsapp: +263 775 262 646

Email magagulawelding.fabrication@live.com

Business Type Engineering, Fabrication

Business Description Manufacture and engineering of construction and agricultural products;

Maintenance & Repairs.

Customers Home builders & contractors, Agricultural Farmers, Maintenance & Repairs

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Table of Contents
Lupane University Cover Page………………………………………….. Page i
Business Plan Cover Page…………………………………………………. Page ii
Table of Contents…………………………………………………………….. Page 1
Executive Summary………………………………………………………….. Page 2
Background……………………………………………………………………… Page 3
Management Plan.............................................................. Page 5
Marketing Plan………………………………………………………………… Page 8
Operational Plan……………………………………………………………… Page 11
Financial Plan………………………………………………………………….. Page 13
Checklist/ Milestone……………………………………………………….. Page 15

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Executive Summary
Magagula Welding & Fabrication (MwF) is an established wielding and fabrication
business that is engaged in the production of steel products that will suit and satisfy the
diverse designs and concepts of the customer. We at Magagula Welding & Fabrication
are very much dedicated to providing the highest quality workmanship, reaching the
agreed delivery dates, and actualizing the custom work exactly in accordance with the
customer’s concepts and designs.
Our focus at MwF is to discover the needs of our target clients and develop a marketing
strategy; to expand our operations and distribution profitably while also serving the
community of Plumtree town, Bulilima and Mangwe Districts. Magagula Welding &
Fabrication will be established in Plumtree.
Plumtree is in Matabeleland South province and has two rural districts, Bulilima and
Mangwe RDC. Magagula Welding & Fabrication is a business built or established as
a sole proprietorship and is owned by Rejoice Magagula who has over 30 years of
experience in the wielding and fabrication industry and has built a reputation of
excellence and quality work that is very important in the industry.
Magagula Fabricators plan to manufacture and sell steel products covering agricultural
implements; construction products; and also perform other welding and fabrication
services for trucks and scotch carts etc. At MwF, we plan to gain our market share in the
following target markets: Plumtree town (construction), Bulilima and Mangwe Rural
Council Districts (agriculture), general customers, Public Entities and Local
Municipalities.
We understand that our business being small to medium in nature requires a simple
organizational structure. We believe that the initial implementation of this organizational
form calls for Rejoice Magagula to make all of the major management decisions in
addition to monitoring all other business activities.

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Background
The welding and fabrication industry is growing fast with recent years showing
maximum growth due to technological innovations and improvements. The welding
industry in Zimbabwe has been stated to grow at approximately 6% per year.
Conventional electric arc welding equipment and filler metals represent over two-
thirds of this total.
This industry has many segments and each segment of the industry and each
welding process have its own growth patterns noted after accurate research. It’s
important to note that Welding is now the universally accepted method of
permanently joining all metals. The wielding industry is considered a mature industry
but it is still a growing industry from different perspectives.
The true impact of welding on the metalworking industry should be measured in the
value of the parts produced by welding, the amount of money saved by the use of
welding over other metal fabrication processes, and in the value of products made
possible by welding.
Facts on ground show the growth of the welding equipment and materials industry
which is an indication of the projected growth for the future.
Mission and Vision Statement

 Our vision at Magagula Welding & Fabrication is to become the leading welding
and fabrication service providers in Plumtree and beyond.
 Our mission is to produce the best quality construction and agricultural
products, supply over-the-top service welding and fabrication, and provide
exceptional customer service.

We are committed to the following values:

 Afford a safe work environment to protect employees, the employees

of customers and subcontractors, and the public.
 We will supply safe products for customers.
 We will keep on improving the company’s safety program to reduce the risk
of accidents and occupational illness in a changing work environment.
 We will advise our employees to participate in accident prevention programs
and take personal responsibility for their own and their co-workers’ health and
safety.
 We will ensure regulatory compliance and contribution to high safety
standards for our industry.
 Monitoring workplaces, enforcing safe work practices, and communicating
the company’s safety performance to employees and other stakeholders.
 Our management philosophy is based on responsibility and mutual respect.
 We will maintain an environment and structure that will bring about
productivity
 We will maintain respect for customers and fellow employees.

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 At Magagula Welding & Fabrication everybody is considered as an individual
and we strive to the very last point to respect their dignity and recognize their
merit.
 We believe that our employees will be encouraged to have a sense of security
and pride in their jobs.
 We will also afford equal opportunity for employment, development, and
advancement for those qualified.

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Management Plan
It is very important to note that the backbone and founder of Magagula Welding and
fabrication is Rejoice Magagula. Rejoice Magagula is an ex-combatant and war veteran who
studied welding, boiler making and mechanical engineering soon after the war using his de-
mobilisation funds.

Rejoice also believed that it would be very crucial for him to start a welding business to fulfil
his wartime vision of a self-reliant and prosperous Zimbabwe. Magagula Welding &
Fabrication will be run solely for now by Rejoice. He will be in charge of procurement, order
taking, customer service, and other related activities.

But as the business grows, through hard work and focus, doing all necessary things right, as
well as ramping up sales to maximise profitability, Rejoice Magagula will employ workers
that will cover a wide range of services for the company. These workers include;

 Chief Executive Officer

 Service and Production Manager
 Operations Manager
 Sales and Marketing Executive
 Accountant
 Welding and Fabrication Engineers / Technicians
 Client Service Executive

Job Roles and Responsibilities

General Manager

 Creating, communicating, and implementing the organization’s vision, mission, and

overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
 Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counselling, and disciplining managers; communicating values, strategies,
and objectives; assigning accountabilities; planning, monitoring, and appraising job
results; developing incentives; developing a climate for offering information and
opinions; providing educational opportunities.
 In charge of providing direction for the business
 In charge of signing checks and documents on behalf of the company
 Evaluates the success of the organization

Service and Production Manager

 Serve as project manager of the organization; works directly with employees

 Develops strategic plan by studying new technological developments and linking
them with customer needs, and looking for financial opportunities; safety rules
formulation and recommending other technical objectives.
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  Accomplishing of subsidiary objectives by establishing plans, budgets, and results
measurements; allocating resources; reviewing progress; making mid-course
corrections.
 Coordinates efforts by establishing procurement, production, marketing, field, and
technical services policies and practices; coordinating actions with corporate staff.
 Builds company image by collaborating with customers, government, community
organizations, and employees; enforcing ethical business practices.
 Maintain production efficiency, coordinate employee efforts, and facilitate
communications between management and technicians
 Make sure that the organization works in line with international best practices.

Operations Manager

 In charge of overseeing the smooth running of HR and administrative tasks for the
organization
 Defining job positions for recruitment and managing interviewing process
 Carrying out staff induction for new team members
 In charge of training, evaluation and assessment of employees
 In charge of arranging travel, meetings and appointments
 Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

 Manage external research and coordinate all the internal sources of information to
retain the organizations’ best customers and attract new ones
 Model demographic information and customer data
 In charge of handling business research, market surveys and feasibility studies for
clients
 Supervising implementation, advocating for customer’s needs, and constant
communication with clients
 Develop, execute and evaluate new plans for expanding increase sales
 Create new markets cum businesses for the organization
 Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier

 In charge of preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and
accounting reports; analyses financial feasibility for the most complex proposed
projects; conducts market research to forecast trends and business conditions.
 In charge of financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting for
one or more properties.

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  In charge of developing and managing financial systems and policies
 In charge of administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for the business
 Serves as internal auditor for the business

Welding and Fabrication Technicians

 In charge of developing welding and fabrication techniques, procedures, application

of welding equipment to problems involving fabrication of metals, utilizing
knowledge of production specifications, properties and characteristics of metals and
metal alloys, and engineering principles: Conducts research and development
investigations to develop and test new fabrication processes and procedures,
improve existing or develop new welding equipment, develop new or modify current
welding methods, techniques, and procedures, discover new patterns of welding
phenomena, or to correlate and substantiate hypotheses.
 Builds welding procedures to guide production and welding tasks according to
specifications, materials management, unusual fabrication methods, welding of
critical jobs.
 Evaluating new developments in welding and fabrication for improved application to
current welding problems or production processes.
 Compliance with established welding procedures, restrictions, and standards; testing
welds for conformance with statutory safety requirements; and other welding
certifications.

Client Service Executive

 Welcomes clients and potential clients by greeting them in person or on the

telephone; answering or directing inquiries.
 Front line contact with clients (e-mail, walk-In centre, SMS or phone) and provide the
client with a personalized customer service experience of the highest level
 Serves as after service support
 Consistently stays abreast of any new information on the organizations’ products,
promotional campaigns etc. and to make sure accurate and helpful information is
supplied to clients when they make enquiries

Marketing Plan
Our Products and Services

MWF will primarily weld, fabricate and sell iron and steel products in Plumtree. We also plan
to fabricate and repair truck bodies, and perform general repair jobs. All unused scrap
metals will also be sold to Sino Steel in Bulawayo for recycling.

Effective revenue streams are extremely important to us at Magagula Welding &

Fabrication to help keep the company afloat but also making sure that the welding services
we render are in continued demand despite tumultuous changes in the economy. We also
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strive to make sure that these revenue streams have high margins that will ensure the
profitability of our enterprise on a monthly basis.

We also plan to raise revenues through the distribution of welding supplies, materials, and
related items that will be bought primarily by local clients (and also individuals that do their
own welding). We expect gross margins of 50% on all welding products sold in our company.

Our Suppliers: Africa Steel (Bulawayo); Pump and Steel (Bulawayo); Sino Steel (Bulawayo);
Electro sales (Bulawayo)

Market Analysis (SWOT)

As Magagula Welding & Fabrication, we believe we have the ability and capability to excel
in the welding industry. In the interim we hope to lease a shop suitable for all welding and
fabrication issues. We have concrete plans to make our business the best in the industry,
which is why we ably did a SWOT Analysis for the business.

Ncengilizwe Dube Business Consultants are known for the experience and agility they posses
in terms of business consulting and analysis. They were very thorough with their dealings
and outlined below is a summary of the SWOT Analysis they conducted for us. The following
SWOT analysis captures the key strengths and weaknesses within our company, and
describes the opportunities and threats facing us at MwF.

Strengths

 Our confidence and outstanding reputation.

 Quality – we will give warranty for all our work.
 Customer Care – we will go an extra mile ensure uncontested customer satisfaction
for any service provided.
 Experience – Over 30 years in the fabrication of construction and agricultural
products, in Rejoice Magagula we have a talented, experienced fabricator, with
strong work ethics.

Weaknesses

 Our weaknesses at MwF come from the lack of funding to grow the business. The
approved loan will be used to purchase equipment, restocking, e-commerce, and
hire an employee.

Opportunities

 A bigger market of the diaspora clientele constructing upmarket homes that doesn’t
know we exist.
 Strategic alliances as sources for referrals and joint marketing activities to extend our
reach.

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  Increasing sales opportunities beyond “koTitji” to include the whole Matabeleland
South, Matabeleland North and Bulawayo metropolitan.

Threats

 The only obstacle to our success as Magagula Welding & Fabrication would
be further turbulences in the economy.

Major Raw Materials

Angle Iron (50mmx50mmx6m); Channel Iron (40mmx40mmx6m); Welding Rods; Deformed

bars (6m), Re-enforcement steel (various sizes), Paint (various colours); Iron sheets (various
thickness)

Market Trend

Diligent researches show that the demand for welding will greatly increase. Furthermore, it
is now evident that the following must be considered with regard to the future of welding:

 There will be continuing need to reduce construction and agricultural costs through
engaging local and flexible sole traders who are also agreeable to specifications and
tastes as per order as opposed to standard measurements.
 There is a continuing trend towards the use of higher-strength materials, client
provided particularly in the steels and lighter-weight materials.
 There is a more preference to welding by manufacturing industries, and a
considerable decrease in the use of castings.
 There is a trend towards higher levels of reliability and higher-quality requirements.
 There is an accelerated trend towards aluminium welded products in the
construction industry (aluminium window frames and door frames).

Productivity in this industry is measured by the amount of welding that can be done by a
welder in a day. Productivity is affected by other factors like the Covid 19 pandemic
restrictions; unscheduled electricity load-shedding and erratic power outages.
Different material qualities also determine the method of welding thus creating different
average duty cycles. There is need for smaller mobile welding machines as some jobs need
to be done at the customer premises and some high above the ground.

Efforts will be made to purchase those smaller machines.

Another factor affecting productivity of welders relates to the deposition rate of the welding
process. The higher current processes have the highest deposition rates, thus the
submerged arc welding process and the electro slag welding process will remain important
as costs must be reduced.

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Our Target Market

We hope to focus on our ability to complete any project with the required equipment by
having all the necessary tools. Magagula Welding & Fabrication’ market segmentation
scheme is fairly straightforward, and focuses on the target markets of:

i. The construction industry- window frames; door frames; structural

beams; gates, security bars and screens.
ii. The agricultural industry with scotch carts, ploughs, harrows; digging
irons, hoes and axes.
iii. Other personal requirements like repairs and maintenance work.
We also understand that our prospective customers will prefer a certain quality of work and
timeliness and it is our duty to deliver on their expectations. We know that there will always
be a need for fabrication expertise and we plan to be available and be of service.

We understand that the customers within the fabrication industry want exceptional
workmanship and affordable rates. We believe that our prospective customers will
appreciate the quality service that we are hoping to offer, as well as the knowledgeable and
experience of our owner.

We believe that customers have the option to go elsewhere, but intend to convince them
that giving their business to Magagula Welding & Fabrication will be of more advantage to
them. We believe our production precision coupled with aggressive marketing efforts could
expand company operations and reach many more markets. Our target market therefore
include:

 Plumtree town home builders

 Agricultural entities and individuals in Bulilima and Mangwe districts
 Local Municipalities and public entities maintenances.

Our competitive advantage

It is a known fact that welding will continue to be a highly efficient and economical method
for maintaining structural integrity when joining metals. We also believe that the welding
industry will continue to maintain a strong reputation for producing reliable and cost-
effective welded components in the global market. We also note that the industry is focused
on continual design advancements in welding machines like welding automation which
further enhance efficiency. This means that the competition in this industry is becoming
heavy and unbelievable, which is why we are making all plans to effectively and efficiently
to make sure we claim a considerable share of the market through quality, timeous-ness
and customer care.

We believe we have a strong competitive edge in the industry due to many fabrication
expert services we hope to offer. We hope that by building a business based on satisfying
clients, Magagula Welding & Fabrication will simultaneously build defences against
competition. We plan to continue helping clients understand what we offer them and why
they need it.
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We also plan to become a leading provider of fabrication services in the local area. We
believe that to achieve this, we have to invest in many ways that will pay off in competitive
advantages for our customers, by pre-job conferencing upon request and assisting in the
technical or conceptual design.

Operational Plan
Business Hours: 0800hrs to 1630 hrs
Tea Break: 1000hrs – 1015hrs
Lunch: 1300hrs-1400hrs

Sources of Income

We believe that because of the special manufacturing processes involved for individual
parts, most companies make a limited range of products. After extensive research, we noted
that the industry as a whole is fragmented: the largest 50 companies account for about 20
percent of revenue. But concentration can be high in industry segments such as boiler,
cutlery, metal can, and spring manufacturing.

We plan to get revenues by wielding, fabricating and selling window frames, door frames,
burglar bars and screens to home builders in Plumtree town and rural clients to their
specifications. We also plan to manufacture scotch carts for our rural clientele. We plan to
get extra funds by fabricating and repairing truck bodies, trailers and scotch carts damaged
due to bad roads in the districts, and performing aluminium repair jobs. All unused scrap
metals will be sold to Sino Metal Recyclers in Bulawayo. Such revenue streams are to MwF
as it helps keep us afloat financially as we strive to fulfil our bottom line desire of making
sure that the welding services we render are in continued demand despite deleterious
changes in the general economy. We also believe that these revenue streams have very high
margins and will ensure the profitability of our enterprise every monthly.

We also plan to increase revenues through the distribution of welding consumables and
other related items. We expect gross margins of 50% on all welding products sold in our
company.

Sales Forecast

Through maintenance of excellent customer relation skills and work ethic; we believe we
will make our customers comfortable and believe in us to continue to provide them with our
welding and fabrication services. We believe that maintaining our customer’s satisfaction is
an implicit part of building a relationship that will encourage repeat business.

Our sales projections are based on our promisingly sound foundation, our planned
investment in advertising for our business and future expansion. Our Sales forecast for the
coming three years are as follows:

 First Year-: $6,000

 Second Year-: $10,000

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  Third Year-: $15,000

Marketing Strategy and Sales strategy

We totally understand that satisfied customers will aid our business by referring our
company to other clients who need our services. Our specific choice of target markets is
based on an in-depth understanding of our prospective customer needs.

We believe that our skills and capabilities are key for us to compete and develop
our reputation within our business area. This is the reason why we believe that obtaining
loan funding and developing a marketing strategy will improve our profitability levels and
help us in building a strong customer base.

We plan to use direct sales and relationship selling as strategies to reach intended target
markets. Currently these strategic sales channels are only appropriate and viable because
they are self marketing, have reduced capital requirements, and fast access to established
distribution channels.

We also plan to advertise through social media platforms like whatsapp and facebook which
are relatively cheaper and local also newspapers like the Chronicle and Tjedza. We will
create a website with information on all our promotionals, construction background, and
contact information. References to the website will be pinned in all other forms of
advertising once the website is in effect.

We believe that once our application for loan is approved, our marketing budget will allow
our employed marketing gurus to leverage sales and push us to the top.

Pricing

We know that we are in a purely competitive industry where each business must be a price
taker. Meaning that a business that has no ability to affect the market price of its services,
regardless of how much work it does is destined for a meltdown. Therefore, the marginal
revenue (the revenue incurred by producing or servicing one more unit) will be equal to the
price charged. Furthermore, because we forecast that the demand curves to be essentially
horizontal, we therefore plan to operate at total capacity without affecting the price in the
market. Thus we will charge our clients at the market price (or lower). We believe that the
price we charge will depend on the workload and duration of the said work, and we
understand that as long as marginal costs do not surpass revenues, the method to increase
short-run profits is to service both the construction and agricultural sectors at maximum
capacity.

Payment Options

After extensive research, we understand that payment options are the forces that bring any
business closer to the heart of the people, and we hope to make use of that extensively. We
will be bringing payment options that are unique and will make the payment for the service
we offer very easy for our customers.
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  Payment by via bank transfer
 Payment via POS machine
 Payment via online bank transfer
 Payment via mobile money
 Payment with cash

To provide all these outstanding services, we have partnered with ZB Bank bank in Plumtree
and so we hope to make use of that relationship. Our ZB bank account numbers will be
made available on our website and on all promotional materials so that it will be easier for
clients to make payments any time anywhere.

Financial Plan
We do realise and note that no matter how breath taking our ideas and goals might be or
how attractive our business plan might be, without proper and enough financing; these
ideas are just like water poured on a rock.

It is a known fact that in every business enterprise funding is a big ingredient that can move
a business to the limelight; and invariably without a detailed business plan, a business won’t
be able to get substantial funds from prospective investors. We have analysed the market
and have decided on how we plan to spend our start up funds.

These are the key areas where we will spend our start – up capital:

 Business incorporating fees – $150.

 The budget for Liability insurance, permits and license will cost – $50
 Acquiring a work facility that can accommodate a good number of cars per time for
at least 6 months (Re – Construction of the facility inclusive) will cost – $150.
 The amount required to purchase the needed tool box and repair equipment – $250.
 Equipping the office (computers, printers, projectors, markers, servers / internet
facility, furniture, telephones, filing cabinets, and electronics) will cost – $500.
 Amount required to purchase the needed software applications to run our business
– $50
 Launching an official Website will cost – $50
 Amount needed to pay bills and staff members for at least 2 to 3 months – $1,000
 Additional Expenditure such as Business cards, Signage, Adverts and Promotions will
cost – $50
 Materials and stock will cost -$3500

From our detailed cost analysis above, we will need approximately six thousand dollars
($6000) to start Magagula Welding & Fabrication. Everything has been put in place and
every fact made sure of, that is to enable us achieve our goals and objectives.

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Generating Funding / Start up Capital

Magagula Fabricators (MwF) is an established wielding and fabrication business owned by

Rejoice Magagula that is engaged in the production of window frames, gates, burglary bars
and screen; ploughs and scotch carts that will suit and satisfy the diverse designs and
concepts of the customer. The business will be funded by him until there are interested
investors or partners. Ways we hope to raise our start up capital may include;

 Generate part of the start – up capital from personal savings

 Generate part of the start – up capital from friends and other extended family
members
 Generate part of the capital from the bank (loan facility).

Note: Rejoice Magagula has been able to raise $3 500 ($3,000 from personal savings and
$500 as soft loans from family and friends) and are at the final stages of obtaining a loan
facility of $2500. We have verified all the necessary procedures to actualize or get our start
up cost.

Furthermore, Rejoice Magagula has a van that will be used for transport; 2x heavy duty
welding machines; and 20x 3.6m corrugated iron sheets to make a workshop/ shed.

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Checklist/Milestone

 Business Name Availability Check: Completed

 Business Incorporation: In Progress
 Opening of Corporate Bank Accounts various banks in the United States: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: In Progress
 Purchase of All form of Insurance for the Business: In Progress
 Conducting Feasibility Studies: Completed
 Leasing, renovating and equipping our facility: Completed
 Generating part of the start – up capital from the founder: Completed
 Applications for Loan from our Bankers: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: In Progress
 Drafting of Contract Documents: In Progress
 Design of The Company’s Logo: Completed
 Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In
Progress
 Recruitment of employees: In Progress
 Purchase of the Needed software applications, furniture, office equipment,
electronic appliances and facility facelift: In progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business (Business PR): In Progress
 Health and Safety and Fire Safety Arrangement: In Progress
 Establishing business relationship with banks, financial lending institutions, vendors
and key players in the industry: In Progress

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