ADDRESS: P.

O BOX 30050 – 20100

EMAIL: mutahbrigit@gmail.com

BUSINESS NAME: JB LABORATORY INSTALLATION EQUIPMENT ENTERPRICE

PRESENTER: BRIDGIT WAIRIMU MUTAHI

CENTER NAME: RIFT VALLEY INSTITUTE OF SCIENCE AND TECHNOLOGY

COURSE NAME: CERTIFICATE IN LABARATORY SCIENCE TECHNOLOGY

PRESENT TO: KENYA NATIONAL EXAMINATION COUNCIL PARTIAL FULFILLMRNT

FOR AWARD IN CERTIFICATE IN LABORATORY SCIENCE AND TECHNOLOGY

SUPERVISOR: MADAM ABIGEAL

EXAM SERIES: JULY 2023

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DECLARATION

2|Page
ACKNOLEDGMENT

3|Page
DEDICATION

4|Page
 CHAPTER ONE
BUSINES DESCRIPTION
The name of the business is pin titled as JB Laboratory installation equipment enterprise. The reason
as to why I decided to open such a business to create employment, to improve standard of living of the
employee and also facilitate easy learning of students as of providing suitable equipment.

It also encourages youth empowerment which encourages youth to start their own business without
waiting to be employed after finishing their course.

1.1 BACKGROUND OF THE OWNER

I Brigit Wairimu conducting the business at my age of 20years, I stay in Nakuru sub – location Afraha.
I attended St Mary’s Girls Primary School then Flamingo Secondary School and now currently am in
Rift valley Institute Of Science And Technology where I want to start a small business which its main
focus is in laboratory science where am going to supply and install laboratory equipment.

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 1.2 BUSINESS LOCATION AND ADDRESS

JB laboratory installation equipment enterprise would be located at Nakuru county, sub – location
Afraha, near Afraha maternity along Kanu Street Road. If you want to contact as our telephone
number is 0704663325, p.o box 30050 – 20100, email address: mutahibridgit@gmail.com

JB LABORATORY
INSTALLATION
EQUIPMENT ENTERPRISE

AFRAHA
MATERNITY
HOSPITAL

1.3 VISION SHOP

TRADERS AND MISSION

VISION

To thrive for a big industry and good achievement

MISSION

To ensure students and other people are able to get skills and efficient knowledge and empowerment.

1.4 FORM OF OWNERSHIP

The business would be a sole proprietor type of ownership this is because it is easy to run the business
then there is maximum privacy and it’s easier to change structure, enjoying profit alone but in a
business there is never lack down fall as you have to sort out the loans alone, raising of capital which
is seven hundred thousand can be challenging and unlimited liability

NO. CONTRIBUTION PERCENTAGE AMOUNT

1. Owner 25% 175,000
2. Parents 15% 105,000
3. Friends 25% 175,000

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 4. Loans 35% 245,000
TOTAL 100% 700,000
1.5 PRODUCTS AND SERVICE

This startup business which the main products are equipment e.g. microscope, fridge, oven, autoclave
which branding name of the equipment will be named according to the company.

The service will include free training to the laboratory technician how to operate the equipment. The
warrants are given within 2years.

1.5.1 Product Description

We will be making our own equipment which we will be branding name of the company, the feature
which would be found on our equipment is the details of the equipment.

1.5.2 Service Description

The service will be include free training to the lab technician on how to operate the equipment,
packaging of the equipment, supply and installation.

1.6 JUSTIFICATION OF THE OPPORTUNITY

The reason for doing such a business is to increase variable market for laboratory equipment as for my
area there is very little laboratory installation equipment business.

According to my area there are many schools around which require equipment’s for their practical and
there is also availability of transport to be able to transport our goods. There is also availability of raw
materials for ease making the equipment.

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1.7 INDUSTRY

JB laboratory installation equipment enterprise deals with making of machines which are used in the
laboratory either technical schools or secondary schools

1.7.1 Size

We have different types of sixes e.g. small and big and medium.

Small machines include microscope, calorimeter. Big machines include oven, autoclaves.

1.7.2 Characteristic

The equipment are made from metals which are stainless to avoid rusting according to the use and then
coated to improve the appearance of the equipment our equipment cannot be paint but laminated.

1.7.3 Trend
The trend of my industry is growth simply because I have just started the business.

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1.8 BUSINESS GOALS AND OBJECTIVES

According to every business should have goals and objectives’ which may be short term and long
terms.

1.8.1 Long Term

JB laboratory installation equipment has a goal of after five years it would have grown and produce
two or three companies in different county.

1.8.2 Short Term

The company will be able to employ more staff within a period of two months which will enhance the
company runs smoothly

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1.9 ENTRY STRATEGIES AND GROWTH

According to our business which will advertise using different forms of advertisement which will
enable to tell our customers about our company.

1.9.1 Entry Strategy

JB laboratory installation industries will advertise our business using billboard, posters and on
websites to alter our customers about our business
1.9.2 Growth Strategy

We will be able to offer free training to our trainee to ensure our customers get skills on how to use the
equipment they have purchase for and also offer free delivery to our customers.

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 CHAPTER TWO

2.0 MARKETING PLAN

Market is a regular gathering of people for the purchase and sale of provisions, livestock and other
commodities while marketing is the process of exploring, creating and delivering value to meet the
needs of target market.

The importance of doing marketing is:

i. It allows entrepreneur to test his or her product before launch

ii. It enables the entrepreneur to set better goals for his or her company for market research
iii. It helps the entrepreneur to identify problems before they happen
iv. Market search shows you how to focus your message

2.1 POTENTIAL CUSTOMERS

JB laboratory installation industry likely to receive impulse customers which they have made their
mind to purchase our products without any doubts

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2.1.1 Institution Customers

Most of products are educational which means most of my products will get purchased by schools and
technical collages

2.1.2 Individual Customers

These are customers which will rarely purchase the products but mainly who wants to start a
dispensary nearby which would have to have a laboratory and requires equipment e.g. microscope

2.2 MARKET SHARE

In market sharing include of knowing the competitors who are around in the market who are also
selling the same products as mine this helps in knowing what method i will use to improve or maintain
to be able to get my customers to purchase my products.

2.2.1 Market Share before Entry

Doing my research i found that i have 3 competitors which are doing the same business as mine which
include Jack’s, Josephs and Rose.

COMPANY NAME SALES MARKET SHARE DEGREES

Jack’s laboratory 30,000 30% 108
installation company

Joseph laboratory 40,000 40% 144

installation company

Rose laboratory 30,000 30% 108

installation company

TOTALS 100,000 100% 360

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Jb laboratory 70,000 41% 148.25
installation company

TOTALS 170,000 100% 360

CALCULATION

Jacks CALCULATION

30% x 360 / 100 = 1080/10 = 108 degrees Jacks

17.65% x 360/100 = 63.54/100 = 63.54

Josephs
degrees
40% x 360 / 100 = 720/5 = 144 degrees
Rose’s
Josephs

30% x 360/100 = 1080/10 = 108 degrees

23.53 %x360/100 = 847.08 = 84.7 degrees
Rose

PIE CHART OF MARKET BEFORE ENTRY

JOSEPH'S
JACK'S
JACK'S , 30% ROSE
JOSEPH'S,
ROSE, 30% 40%

2.2.2 Market Share after Entry

After entering the market business the market share was shared among the four companies that is Jack’s
Joseph’s, Rose and JB Company
Company name Sales Market share Degrees
Jack’s laboratory 30,000 17.65% 63.54
installation company

Joseph laboratory 40,000 23.53% 84.7

13installation
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Rose laboratory 30,000 17.65% 63.54

installation company
17.65% x 360/100 = 63.54/100 = 63.54 Jb
degrees
41.8% x 360/100 = 148.25 = 148.25 degrees

Sales

JACK'S
17.65% JACK'S
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JOSEPH'S ROSE
23.53%
JB
ROSE
2.3 COMPETITIONS

Completion is a situation in a market in which firms or sellers independently strive for the patronage
of buyers in order to archive a particular business objective

According to my market research i have 3 competitors doing the same business as i

COMPETITORS STRENGTH WEAKNESS

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 1. Jack’s laboratory 1. Good relation with 1. Delay in delivery of
installation customers good to his customers
company
2. Delivery of products 2. He is goods purchased
on high value
3. Roses laboratory 1. Gives discount to her 1. Poor transport
installation customers 2. Poor quality
company equipment’s
2. Appropriate and
convenience service to her
customers

4. Joseph’s laboratory 1. He offers free sample to his 2. Lack of communication

installation customers towards his customers
about his equipment
company

5. Jb laboratory 1. Offers discount to my 3. Lack of cooperation to my

installation customers fellow competitors

company 2. Offers free delivery to my

customer ‘s

3. Offer training to customers

who purchase and yet do
know to use the equipment

2.4 METHODS OF PROMOTION AND ADVERTISEMENT

Promotion is a marketing tool, used to communicate between the sellers and buyers while
advertisement is call the attention of the public to something like product or services. We have
different promotion and advertisement

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 2.4.1 Methods of Advertisement
We have two types of advertisement which is printing media and electronic media according to my
business both methods are suitable for advertising my business

i. Printing Media

In printing media I will use posters which will cost around 10,000 ksh and they will be posted on posts,
walls signboards will help to welcomed and advertise our busy and bill board will printed to show our
products and direction and location

ii. Electronic Media

In electronic media I will use website Google, radio television which according to me is cheaper and it
is easier were I will require paying 300ksh per month and advertising my products whenever I want.

2.4.2 Methods of Promotions

The importance of promotion is:

 It increases the speed of product and service acceptance

 Aids in the sales of goods and services in imperfect market condition  it provides effective
sales support.

 Promotes employment opportunities

 Pave way for large – scale selling activities

We have three methods of promotion but as for my business i will use discount policy where i will offer
discount to my customers to be able to get equipment on affordable prices

2.5 PRICING STRATEGY

The method and procedures companies employ to determine the rates they charge for their goods and
services.

There are 4 major pricing strategies value – based, on competition, cost plus and dynamic pricing.

Jb Laboratory Company must calculate the cost and marl – up.

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Also set a price based on what the competition charges set a high price and lower it as the market
evolves.

2.6 SALE TACTICS

Doing sale tactics enables to designed to build trust with potential customers and inspire the to buy with
dirty and confidence.

According to my business i will chase direct sale whereby am going to deal with the consumers directly
without passing into retailers or wholesalers to avoid any complication to my customers.

This helps a business to proceeds to avoid over-pricing our customers and know the prices set on the
market.

2.7 DISTRIBUTION STRATEGY

Mine is manufacture directly to customers which is easier because you are able to get demand from the
customers.

According to mode of transport i will use road which is more efficient, reliable and cheaper compared
to air transport.

It is usually normal for business to get challenges which are the customer’s runs away with the money,
poor transport network, competition.

This challenges can be solved by ensuring customers pay all the amount on time, ensuring when
locating a business your consider to be able to be better than your competitors

CHAPTER THREE

3.0 ORGANISATION PLAN

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In any business there must be any organizing plan for planning the future goals at an organization to be
sure everyone on the team to understand what management expects.

The planning include method of recruitment, promotion, training, amount you will pay the employee.

3.1 ORGANISATION STRUCTURE

In any kind of an industry or company there must be staff who help in running the business smoothly
from top to bottom.

MANAGING DIRECTOR

MANAGER

ACCOUNTANT

SECURITY OFFICER COOK CLEANER

3.2 KEY MANAGEMENT PERSONNEL

As for my business I have a manager and accountant who have higher hierarchy in my company where
one should have specific qualification to be able to get the job and who have good experience.

PERSONNEL NUMBER QUALIFICATION DUTIES

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 Manager 1 1. Should have
diploma in CSLT.
2. Should have scored
C+ in his/her KCSE.
3. Should have age 30-
35yrs.
4. Should have an
experience of 5yrs.
5. Should have
certificate of good
conduct
Accountant 1 1. Should have a
diploma in
accounting.
2. Should have an
experience of 3yrs.
3. Should have age 28-
35yrs.
4. Should have scored
a mean grade of C
plain.
5. Should have scored
B+ in math’s and
business.
3.3 OTHER PERSONNEL
In every business should have other workers with minimum work like cleaning, security and cooking
especially for those who have company?
PERSONNEL NUMBER QUALIFICATION
Security Officer 2 1. Should at least
have training on
security.
2. Should be above
25yrs.
3. Should have an
experience of
2yrs.
Cook 1 1. Should have a
Certificate in
catering.
2. Should have
scored C-.
3. Should 2yrs
experience?
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1. Ensure employees
work productively
and develop
professionally.
2. Set policies and
processes.
3. Oversee day to day
operations.
4. Design strategy and
set goals for growth.
1. Prepare budget of the
business.
2. Manage all
accounting
transactions.
3. Publish financial
statements in time.
4. Ensure timely bank
payments.
DUTIES
1. Secreting the
premises.
2. Staying on patrol.
3. Monitoring
surveillance,
equipment.
4. Guarding entry points.
1. Prepare meals.
2. Keep the kitchen
organized and running
efficiently.
3. Proper food handling
and sanitation.
 4. Should have
hygiene and
health.
Cleaner 2 1. Should be above 1. To ensure the offices
20yrs old. and compound are
2. Should have a cleaned.
training of good
sanitation and
hygiene.

3.4 RECRUITMENT, TRAINING AND PROMOTION

According to organizing plan their must be recruitment, training and promotion of staff which
ensure proper functioning of a business.

3.4.1 Recruitment
In a business am going to advertise a job vacancy through websites and posters in order to get many
staff for short time then I will be able to pick one or two according to experience and qualification.

3.4.2 Training

We have different type of method for training the staff as for my business I will use coaching,
ELearning and interactive training which are suitable according to my business.

3.4.3 Promotion

In promotion it’s depends on the qualification of the staff and hardworking.

In promotion they are different methods of promotion they include vertical and horizontal.

As to where horizontal am able to increase salary to a certain staff but not duties e.g. manager.

While vertical is where is I promote the staff by increasing salaries, giving new position.

3.5 REMUNARATION AND INCENTIVES

Remuneration is done to a business to know the amount of money to going to be paid to the
employee to avoid delaying the employee salary.

They should also have to extra motivation like incentives to motivate them to do business.

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 3.5.1 REMUNATION
This helps the directing manager to have statically data on how to pay his/her employee without
favoring anyone.

It is also helps in managing financial amount into a business.

JOB NO BASIC ALLOWANCE TOTAL

TITTLE SALARY MONTHLY
Manager 1 2000 500 2500
Accountant 1 1500 500 2000
Security 2 500 300 800
Officer
Cook 1 300 200 500
Cleaner 2 200 100 300

3.5.2 Incentives
JB Installation Company will provide free holidays, uniform for co-workers, transport and lunch
which will encourage the employees to work hard.

3.6 LICENCES, PERMITS AND BY-LAWS

In every business you must access government policies in order to have a successful business which
the government gives you access to the market and customer to ensure your business is legal.

3.6.1 Licenses

According to my business am going to have a trading licenses. The purpose of this license it shows
that my business is been identified by the government and through the license it shows am paying
taxes.

3.6.2 Permits
This is officially allowing someone to do something. JB laboratory installation company would be
given is cold work permit.

3.6.3 by laws
According to my region we should not pollute the environment, proper disposal of our rubbish.

3.7 SUPPORT SERVICES

JB laboratory Installation Company will have different services like electronic service, banking
service and goggle services which will help in the growth of our company.

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 3.7.1 Banking Services
The co-operative bank will be working together with us as they will give us services as saving
accounts and as debit and credit cards.

Co-operative Bank
P.O.BOX 30058
NAKURU
0798588326

3.7.2 Electronic Services

Pixel electric company will be helping JB Company to ensure all our electronic devices are working on
event installing electricity to our company.

PIXEL ELECTRIC COMPANY

P.O.BOX 30058 NAKURU

0722333997

CHAPTER 4

4.0 PRODUCTION AND OPERATION PLAN

4.1 PRODUCT DESIGN AND DEVELOPMENT
JB laboratory Installation Company produces equipment’s of high quality and better production and
this will assists the business get more customers.

Which will improve the services and products leading to business expansion.

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 JB will use digital technology to manufacture their own equipment and labelling according to a
brand.
4.2 Production facilities and capacity
The JB Laboratory Company is a newly established business one will require equipment and
facilities to start money and acquisition of each of the following fixed assets.

4.2.1 Production facilities

JB Laboratory Company would require facilities which will ensure the business would run
smoothly e.g. lorry for transport.

Facilities Capacity Date Acquired Unit Cost Total Cost

Lorry 19,000 1/07/2023 500,000 500,000
Office 2 4/07/2023 50,000 50,000
Electricity 1/07/2023 10,000 10,000
Shelves 2 5/07/2023 15,000 15,000
Machines 4 1/07/2023 200,000 200,000
Tables and 8 2/07/2023 10,000 10,000
Chair

4.2.2 Repair and maintenance

Repair of equipment will be done on monthly basis unless there is a serious breakdown of machines
maintenance will be done accordingly.

Facilities Name Date for Repair Maintenance Cost

Vehicle Lorry 30/07/2023 500
Computer Lenovo 30/07/2023 1000
Machines Agilent 30/07/2023 6000
Sinks Fiber glass 31/08/2023 2000
Floors Linoleum 30/09/2023 5000
Cabinet To pair 31/10/2023 20,000

4.3 PRODUCTION STRATEGIES

The production design will be flexible to cater for various customer needs and taste.

The flexibility is also to ensure absolute sells of production and offered to the market which offers
the business display effectively to ensure quick sales.

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 4.3.1 Mass Production
JB laboratory will produce substantial equipment of standardized products in a constant flow to
ensure our daily customer does not lack our supply of equipment.

4.3.2 Batch Production

JB

Laboratory Company will also use these production because some of the equipment are needed by
specific people, schools or institute.
4.4 Production Process
Production process is done at the beginning of every month so that goods can be replaced that have
been used.

4.5 Regulation affecting operational and environment

Operating conditions must be put to standards of the government.

They include:-

4.5.1 Health regulation

JB must acquire health permit from the government which will cater even for its employees who
must wear protective gear in the manufacture of the equipment.

4.5.2 Taxation
In any business somebody must start should pay taxes to ensure that the roads are well repaired and
have a good technology.

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 CHAPTER FIVE

FINANCIAL PLAN

5.0 Financial Plan

It is a systematic plan that shows how the owner of CLAIRE ADEL BUTCHERY will manage and
analyze her plans. The business will require 1.2 million Kenya shillings, which will be gotten by the
following ways: family contribution, bank loan, personal saving and donation from friends

Family contribution 100000

Bank loan 500000
Personal savings 500000
Donation of friends 100000

5.1 Pre-Operational Costs

The table below shows the cost that the business incur for the business

ITEM COST (SH)

Transport 130,556

Insurance 10,000

Health Act, Environmental Act& Safety &Regulatory Act 15000

Electricity 20,000

License 5000

Equipment (office) 163750

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 Weighing machine/moisture machine 100,000

TOTAL 444306

Other Operational Expenses

No Item Quantity Price Total

Branding of empty sacks 3000 50 150000

Formulation of store 20000

Purchase of store bags 3000 100 30000

On-off loaders of bags 3000 30 90000

DUTIES 00 00 28,000

Total 6000 318000

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5.2 Estimation of working capital

5.2.1 Working Capital

ITEM AMOUNT

Current Assets KSHS

Cash at hand 1,000,000

Cash at Bank 10,000,000(KCSAP GRANT)

Debtors 00

Stock 20500

TOTAL 11,020 500

Current Liabilities

Bank loan 500000

Total 15,000,000

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5.2.2 Working Capital

Labor for 1st MONTH =KSHS.80, 694

Office Equipment =KSHS.163, 750

Monthly material office requirement =KSHS.72000

Monthly production requirement =KSHS.606, 000

Preoperational Costs =KSHS.789, 556

Branding of 3000 empty sacks = KSHS.150, 000

Formulation of store =KSHS.20, 000

On-off loaders =KSHS.60, 000

Purchase of store bags 3000 = KSHS.30, 000

Duties /Levis =KSHS 28,000

5.3 Projected Cash flow Statement 3 Years

Like said before, the business here is assumed to be proposed, not existing. In which case, the income
statement is pro-forma not a real profit and loss account. For comparison purposes, it is important to
show for the first three years of operation. This will give a clear sense of whether the planning is
leading to business growth or decline.

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 Pro-forma Income statements of 2022 for the years ending……
Particulars 30th June 2022 30th June 2023 30th June 2024

Sales 10264510 30793530 41058040

Less Cost of Sales 1283063 3421033 1283063

Gross Profit 8,981,474 27,372,497 39,774,977

Expenses

Purchases 13,792,901 27,585,802 41,378,703

Payment to creditors 00 00 00

Salaries and wages 484,164 968,328 968,328

Rent 66000 66000 66000

Electricity 27500 27500 27500

Water 55000 55000 55000

Telephone / 22000 22000 22000

Tax 128500 128500 128500

Transport 136000 136000 136000

Advertising 33500 33500 33500

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Insurance 10000 10000 10000

Loan repayment 00 00 00

Interest on loan 00 00 00

Any other expenses (specify) 108000 108000 108000

00 00 00

Total Expenses 1070664 1554828 2625492

Net profit before Tax 42,109,770

Tax (30% of Income)

Net Profit after tax

Show assumptions made

Less cost sale is ¼ of goods available for sales
Net profit = total sales –expenses
=56973335 -14863565
NP=42,109,770
30%of INCOME= 42109770
NP after TAX=42109770-12632931 = 29476839

Next three years Assumption of profit = 12632931

5.4 Preparation of pro-forma income statement and balance sheet

The balance sheet is also pro-forma not for an existing business. As such, you are expected to show a
balance sheet as at start of business, end of year 1 and end of year 2

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 Balance Sheet for MARION’S RESTAURANT as at 31st Dec

ASSETS End year 1Start End of year 2 End of year 3

Current Assets

DEBTORS 2000 5000 8000

STOCK OF FINISHED 10000 20000 40000

GOODS

STOCK 3000 5000 7000

Total Current Assets At Bank

Fixed Assets

Item at cost Thresher M 100000 75000

Depreciation 75000 50000

Item at cost Weighing machine 80000 70000

Depreciation 70000 65000

Item at cost Moisture machine 20000 15000

Depreciation 15000 10000

Total Fixed Assets 160000 135000

TOTAL ASSETS 520000 420000

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LIABILITIES

Current Liabilities 50,000 100000

Total Current Liabilities 50,000 100,000

Long-term Liabilities 00 00

Owner’s equity 1,100,0000 00

Bank loan 00 00

Retained earnings 00 00

Total Long-term liabilities 00 00

00 00 00

TOTAL LIABILITIES & 29476839 43,769,995 48192647

EQUITY

Show assumptions made

Total liability assumed to be income from other business sources

5.5 Break-Even Point Calculation

Show your calculation for the break-even point

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BEP=FC-(TR-VC) Break even= Fixed Cost – (Total Revenue-Variable Cost)

Pre-operational cost 2,000,000

Fixed cost 1,154,500

Revenues 128,500 Variable costs 257,000

2,000,000-(1167300-257,000) 2000000-910300

=1,089,700

Ensure the break-even analysis is included

5.6 Calculation of Profitability Ratio Analysis

Show the profitability ratios for: Gross profit, Net profit, Return on Assets, Return on Equity, Return on
Investment, liquidity ratio, debt ratio, quick ratio and for those doing retail business, calculate the Rate
of Stock/inventory turn over

PRA 1stYR 2nd YR 3rd YR

GP 29476839 43,769,995 48192647

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 NP 42,109,770 62,502,850 68846639

ROA 200,000 160,000 125,000

ROE 1,197,500 1,496,875 1,871,097.75

ROI

Acid test ratio (QUICK RATIO) = Current assets Current liability

ROST= COST OF SALE (COST OF GOODS SOLD) AVERAGE STOCK

5.7 Desired Financing

This simply shows the amount you would wish to have for investment if everything worked out as
planned.

Item Amount (KSHS)

Pre-operational Costs 4,000,000

Working capital 10,000,000

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 Contingency funds 00

Total Desired Financing 0

5.8 Proposed Capitalization

This simply shows the total amount invested in the business

Source Amount (KSHS)

Owner’s equity 3,000,000

EAML 1,000,000

KCSAP GANT 10,000,000

Total Investment 14,000,000

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