BUSINESS PLAN FOR

DISCOUNT CYBER
P.O BOX 400166
NAIROBI
PROJECT CODE 2920
PRESENTED BY
ABOS E JARED
INDEX NO. 4060030391
PRESENTED TO : DEPARTMENT OF BUSINESS STUDIES
KABETE NATIONAL POLYTECHNIC
P.O BOX 29010_00625
NAIROBI
NAME OF SUPERVISOR: MRS IRENE MKANGUA
SUBMITTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL FULFILMENT OF
THE REQUIREMENT FOR THE AWARD OF DIPLOMA IN INFORMATION COMMUNICATION
TECHNOLOGY
KENYA NATIONAL EXAMINATION COUNCIL(KNEC)
P.O BOX 73596 -00200
NAIROBI
 Table of content
DEDICATION................................................................................................................................................V
EXECUTIVE SUMMARRY............................................................................................................................VII
CHAPTER ONE:.............................................................................................................................................1
BUSINESS DESCRIPTION...........................................................................................................................1
BUSINESS NAME......................................................................................................................................1
BUSINESS ADRESS OR LOCATION.............................................................................................................1
FORM AND TYPE OF OWNERSHIP............................................................................................................2
PRODUCT AND SERVICES.........................................................................................................................3
JUSTIFICATION OF THE BUSINESS OPPORTUNITY....................................................................................3
INDUSTRY................................................................................................................................................4
SHORT TERM GOALS................................................................................................................................4
LONG TERM GOALS..................................................................................................................................4
ENTRY AND GROWTYH STRATEGIES........................................................................................................4
GROWTH STRATEGIES..............................................................................................................................5
CHAPTER TWO: MARKETING PLAN..............................................................................................................6
2.1 POTENTIAL CUSTOMERS....................................................................................................................6
2.2 MARKET SHARE..................................................................................................................................6
2.3 COMPETITION....................................................................................................................................8
2.4 PRICING STRATEGY............................................................................................................................8
2.5 SALE TACTICS...................................................................................................................................10
2.6 ADVERTISMENT STRATEGY..............................................................................................................11
2.7 DISTRIBUTION STRATEGY.................................................................................................................12
CHAPTER 3.................................................................................................................................................13
ORGANISATIONAL PLAN............................................................................................................................13
3.1 Organizational structure..................................................................................................................13
BUSINESS MANAGER AND QUALIFICATIONS.........................................................................................14
BUSINESS PERSONERL AND DUTIES.......................................................................................................14
PERSONEL NUMBER AND DUTIES..........................................................................................................17
RECRUITMENT TRAINIG AND PROMOTION...........................................................................................19
REMUNERATION AND INCENTIVES........................................................................................................20
LICENCES PERMIT AND BY-LAWS...........................................................................................................20

II
(A) BANKING SERVICES.......................................................................................................................21
(C) SECURITY SERVICES......................................................................................................................21
TIGRE SECURITY SERVICE..............................................................................................................21
NAIROBI..............................................................................................................................................21
CHAPTER 4.................................................................................................................................................22
PRODUCTION OR OPERATIONAL PLAN......................................................................................................22
4.1 SERVICES DESIGN AND DEVELOPMENT...........................................................................................22
4.2.1 OPERATIONAL FACILITIES AND CAPACITY.....................................................................................23
4.2.2 PREMISES LAYOUT OF ALL COME COMPUTER TRAINING.............................................................23
4.3 OPERATIONAL STRATEGY.................................................................................................................23
4.4 OPERATIONAL PROCESS FOR ALL DICOUNT CYBER..........................................................................25
4.6 INTERNAL RULES AND REGULATIONS..............................................................................................27
CHAPTER 5.................................................................................................................................................28
5.0 FINANCIAL PLAN..................................................................................................................................28
5.1 PRE-OPERATIONAL COST.................................................................................................................28
5.2 ESTIMATION FOR WORKING CAPITAL REQUIRMENT.......................................................................28
5.3 PROFOMA INCOME STATEMENT.....................................................................................................29
5.4 PROFOMA BALANCE SHEET.............................................................................................................30
5.6 BREAK EVEN ANALYSIS.....................................................................................................................33
5.7 CALCULATING PROFIT RATIO...........................................................................................................34
5.8 DESIRED FINANCING........................................................................................................................34
5.9 PROPOSED CAPITALIZATION............................................................................................................35
Appendix....................................................................................................................................................35

III
 ACKNOWLEDGMENT

I cannot stop my gratitude towards my business teacher for her supportive effort and encouragement
towards my work. I also offer my appreciation for the opportunities of learning procedures of writing the
business plan.

Lastly, my appreciation also goes to my father for offering encouragement and financial support towards
my study of this course in general. Thanks all.

IV
DEDICATION
I dedicate this business plan to my loving mum and dad for taking me through this education journey,
my brothers and sisters and friends for their continuous support and encouragement throughout my
proposal work, and above all to almighty GOD

V
DECLARATION

I declare that this Business plan is my work and it has not been presented by anybody for the award.

Name: Abos E. Jared

Signature……………………………………………………….

Date………………………………………………………………

This project has been submitted for the Kenya National Examination council (KNEC) with approval of
my supervisor

Name……………………………………………………………

Signature………………………………………………………

Date…………………………………………………………….

VI
EXECUTIVE SUMMARY

CHAPTER ONE: BUSINESS DISCRIPTION.

The name of the business shall be called Discount Cyber. The business will be under Abos E. Jared who
shall be the manager. The business shall be located at Yaya center along Argwn Kodke Road. Inside the
building it shall be on the first-floor door number 28; for the postal address, Discount Cyber shall be
using will be P.O. BOX192-400 Nairobi. The business shall be operating as sole proprietorship, meaning
the business shall be incorporate which will make it easy to run. The proposed capital to the business will
be generated from owners’ equity ksh 300000, friends’ contributions ksh 400000 and loan from the bank
ksh 200000. The business manager decided to choose this location because of the potential customers
around for example school, private office and non- governmental sectors. The discounted pricing, sales
tactic will make the business grow very fast.

CHAPTER TWO: MARKET PLAN.

The potential customers for Discount Cyber shall be: individual customers, institutional customers and
nongovernmental organizations. All customers for discount cyber shall be eligible for the discount. The
entry of the business into the market which is already has been established competitors is a challenge, but
Discount cyber manager has tactic to curb the challenge, for example opening up the business early and
closing up late of the day. The competitors of the Discount Cyber include: Sasa Cyber having a market
share of 40%, Haraka Cyber with a market share of 30%, baraka and Discount Cyber taking 15% each.
Marketing strategy will be a paramount aspect to the discount Cyber. The business will be marketed
through billboards radio and television.

CHAPTER THREE: ORGANIZATIONAL PLAN

The business organizational shall be hierarchical and it will be comprising of the; the business manager
who will be the owner and three other employees who shall be assisting in the business growth. All
employees shall have best qualifications in order to be employed at discount cyber. The employees shall
also be expected to be performing different duties and responsibilities as per the job. All employees will
be paid their salaries and wages according to their current positions assigned to the business. The business
shall be expected to have three partitions, that is the managers room, accountant room and the secretary

VII
room respectively. The running of the business shall be supported by having: insurance, water, electricity
and license among others.

CHAPTER FOUR: PRODUTION AND OPERATIONAL PLAN.

The business shall be expected to start its operation by the end of the year 31st December 2025. The
services that will be offered include but not limited to: printing, binding, Internet browsing, lamination,
typing among other services. During operation the business shall have rules and regulations that will
govern the employees on their line of work for example office layout, opening hours among others.

CHAPTER FIVE: FINANCIAL PLAN

Financial plan is a document statement that gives guidance to the successful business. Some of these
financial plans include: pre- operational costs, estimated working capital requirements, proforma income
statement projected cash flow statement proforma balance sheet and proposed capital introduced to the
business. The objective of having financial plan include; to make profit and reduce costs of operation and
loss to the business.

VIII
CHAPTER ONE:
BUSINESS DESCRIPTION
BUSINESS NAME
The name of the business shall be called discount cyber, and will be operated under Abos Etyang
Jared who will be the owner of the business. The entrepreneur was born in Busia County. He went to
Aboloi primary school whereby he later transferred to Kabukui primary school to continue his studies
from class six to class eight where he sat for his Kenya certificate of primary education (K.C.P.E) and
joined Kabukui high school for secondary level. The entrepreneur has experience working with cyber
since he has been assisting in printing of document in his friends his cyber Currently the entrepreneur
is undertaking his first Diploma module in information communication technology.
The education background for the manager

Institution Year attended to Level Grade awarded

Kabete National 2020 currently Diploma in ICT Ongoing
polytechnic
Kabukui 2015 2018 KCSE B-
secondary
Kabukui primary 2005 2014 KCPE 300
The owner manager is intending to start discount cyber business with the capital range from 50000-
1000000 Kenya shilling. The capital will be generated as per the table shown below

CAPITAL CONTRIBUTION TABLE

SOURCE AMOUNT PERCENTAGE

Equity savings 300000 33.5%
Friends’ contribution 400000 44.25%
Bank loan 200000 22.25%

BUSINESS ADRESS OR LOCATION

The owner manager is intending to locate discount cyber at Nairobi County. The business shall be at
yaya center mall along Argwn kodke road first floor door number 40
The main reasons for this location are as follows:

1
  Availability of potential customers within the area
 Security of the business within the area due to the police post around
 Accessibility of the business since the building is well accessed
 Availability of good roads around the area which will make people not struggle when
looking for the cyber services
The sketch map below shows how the customers will be locating discount cyber

Central business
plaza

Prestige
plaza Nairobi
hospital

Yaya

Discount cyber

For easy developed off letters, parcels and mails, Discount cyber has the physical address
stated below to facilitate its customers services
P.O BOX 12102
NAIROBI
Etyang Abos Jared
Phone number 0797956811
Email address jaredetyang@gmail.com

FORM AND TYPE OF OWNERSHIP

Discount cyber shall operate as a sole proprietorship. The definition sole proprietorship refers to a
single business owner

2
 The manager of discount cybers chose sole proprietorship as type of business because of the
following advantages
 Decision making is easy as compared to other business ownership
 It is easy to use family labour cheaply
 There is freedom of action at any given time
 It is easy to start as it requires only license
On the other hands this kind of a business ownership can fail due to some disadvantages it
has limited life in case the owner dies he or she suffers loses alone as it operates as sole
proprietorship

PRODUCT AND SERVICES

The table below shows the services offered at discount cyber

SERVICES FEATURES PRICE DISCOUNT

Lamination Long lasting 58 2%
Binding Very fast 40 10%
Photocopy Very fast 4 1%
Typing Quick 1.5 0.5%
Printing Very fast 8 2%
Scanning Very fast 49 1%
Fulscaps Cheap 4 1%
Envelops Cheap 9 1%
Branding Long lasting 8 2%
Passport Cheap 145 5%

JUSTIFICATION OF THE BUSINESS OPPORTUNITY

Discount cyber will be the best business opportunity. After some of the experience from the
friend, the manager starts the business has the following reasons as to why discount cyber
requires little capital to start is only a license, desktop, printer and then the business is meant to
kick off. This equipment’s are relatively cheap to get them .it is easy to run and manage since it is
a sole proprietorship kind of a business. Decision making is easy as it does not require more
people to decide on the operation. Labour can be also provided by the members of the family
cheaply. It is flexible to adopt changes of the technology Maintenance cost is low Sole
proprietorship enjoys the profit alone as he manages the business alone.

3
INDUSTRY
The size of the enterprise will be small for the start up. The vision of the manager of the discount
cyber is to open more branches Discount cyber will use high technological equipment to offer
services to its customers. This will attract more customers and shall grow fast and expand other
branches. Despite good services and profit made there are some of the seasonal factors that are
meant to affect the business during its operational time like public holiday as most offices will be
closed, normal school closing close up of the paper manufacturing industries

1.1 GOALS OF BUSINESS

SHORT TERM GOALS

The short terms services discount is going to offer are as follows:
 To provide branding
 To provide printing
 To provide photocopying
 To provide internet solution
 To provide passport services or solutions

LONG TERM GOALS

 To open other two branches after two years
 To purchase a plotter for heavy printing
 To collaborate with advertising agencies for more work
 To employ at least five people

ENTRY AND GROWTYH STRATEGIES

1.1.1 Method to enter new branch
(i) License acquisition
(ii) Siting of the business location
(iii) Accumulating income for the start of a new branch

4
GROWTH STRATEGIES
Discount cyber will intend to grow fast because of good planned strategic that is collaboration
with other agencies capital accumulation among others. Some of the advertising agencies are
digital marketing agencies, magnetic advertising agencies.

1. Discount cyber!!
2. Watch today at citizen television
Kandanada Ni yetu
Frequency101.1 FM

5
CHAPTER TWO: MARKETING PLAN
2.1 POTENTIAL CUSTOMERS
(a) Individual customers
These are people who will seek services as individual. The manager of discount cyber shall
expect his customers to be most age range from 20-50 years of age as this is the group that are
aware the importance of the internet and the cyber services. The behavior of the customers who
are encouraging, pleasing to open more business. These social activities will make the manager of
discount cyber to have more customer. The economic status of the customer will range from
medium to high level
(b) Institutional customers
Open institution like schools will add value as the enterprise will make more profit from the
school as more teachers will need to print exams and other services.
Discount cyber manager will be giving discount to all of her customers based on the daily coining
commercial work and collaboration. These three groups will get 3%off discount every month
coming customers will get 2% off discount and new customers a free envelop for holding
documents after print sin or photocopying.
(c) Non-governmental organizations (N.G.O)
People working at any of (N.G.O) will seek foe the cyber services around as they need printing,
photocopying, branding, among other services. The customers will also help the discount cyber
grow. The manager shall expect the purchasing power and services from this non organization to
be daily and monthly The religions the manager from discount cyber will be expecting are
Christians, Muslims and Hindus. The education level for these customers is both A-level and O
level

2.2 MARKET SHARE

Below is a table that show market share and comparison

Name of the cyber Percentage share

Peter cybers 40%
Sasa cyber 30%
Haraka cyber 15%
Discount cyber 15%

Convertion of the percentage into degrees in order to represent the market share in a pie chart

6
 1 Peter’s cyber
40/100*360
=144O
2 Sasa cyber
30/100*360
=108O
3 Haraka cyber
15/100*360
=54O
4 DISCOUNT CYBER
15/100*360
=54O

The pie chart below shows the market share of all cyber operations in the mall

MARKET SHARE

PETER CYBER SASA CYBER

HARAKA CYBER DISCOUNT CYBER

7
2.3 COMPETITION
 Competition can be defined as a situation where forms or seller independently struggle for the
profit backing and support of the buyers to achieve a particular business objective. This
competition can be categorized into service and sale competition.
The table below illustrates the competitor’s potential and weakness

COMPETITORS STRENGTH WEAKNESS OPPORTUNITY THREATS

Peters cyber Skilled personnel No discount Schools Theft
Centrally located Late opening N. G. O Increased rental
Early opening Offices fee
hours
Giving of
discounts
Sasa cyber Low charges No discount N.G.O Theft
Early opening Poor working Offices Floods
hours environment
Haraka cyber Good managerial Untimely Schools Theft
skills opening hours N.G.O Floods
Widely known Insecurity Offices
Discount cyber Large capital Loneliness N.G.O Floods
Providing special School Insecurity
services offices
Methods to capitalize on computer weakness
 To open early and close late hours
 To give discount to customers
 To buy new computers
 To provide extra table for the client to write on
 To improve working conditions

2.4 PRICING STRATEGY

 Pricing is the value or sum of money which are charged by the supplier of a product
or a service to the buyer

8
Pricing strategy is the technique of giving price to the service or product offered on the
market
Methods of pricing strategy

Methods Reason for the Service Price

method
Economic It relates generation Passport 145
of revenue
Profit It gives measure of Printing 8
profit cost and
revenue
Psychological It influences the Typing 40
market that has high
price to co-relate to
superiority

Advantages of pricing service

 Helps in sorting of the service
 Reduces loss in the service offered
 Reduce time wasting
 Gives priority to customers
Disadvantages of pricing services
 There is no room for bargaining
 The price is guaranteed
 The price cannot change easily
FACTORS TO CONSIDER ON THE PRICING STRATEGY
 The type of service offered-quality charged more expensive as compared to low
quality services
 The cost of operation –machines like desktop printers and plotters need to be served
this will raise the cost of operation if pricing is not well strategized
 Profit-good pricing yields high profit and low pricing gives a loss to the owner of the
business

9
  Co-operate goals-are achievable through pricing to venture into cooperate business
decision making is time consuming and requires skilled personnel which increases
the cost of the business
 Consumer expectation-it can be only be met through pricing

2.5 SALE TACTICS

 Sale is the exchange of services or commodity for money tactic on other
hand is a strategy that is carefully employed to achieve a specific goal. There
after sale tactics is the exchange pf services and commodities for money in a
strategic and carefully planned manner in order to archive the end goals
 The table below shows target of services offered by discount cyber

Service Jan Feb March April may June July Aug. Sep Oct Nov Dec. Total
Photocopyi 1200 1500 1000 2000 2000 700 1200 750 2500 1000 1500 250 17850
ng 0
Typing 400 600 300 500 300 300 600 450 1000 1200 800 500 6950
Binding 300 900 300 500 800 5500 400 600 1200 450 200 600 6400
Lamination 600 800 350 800 1000 4000 900 700 400 600 700 100 11900
0
Passport 2000 2500 2000 3000 3500 4000 1400 2500 600 4000 2000 300 30500
0
Branding 600 400 800 1000 500 900 800 700 4000 1200 800 500 12200
Printing 6000 5000 8000 10000 4000 6000 300 900 1200 750 450 100 54700
0
Cartridges 4500 3000 12000 12000 9000 15000 8000 3500 15000 8500 7000 750 50004
0
Browsing 600 900 1000 800 1000 700 6000 2500 800 700 800 800 22000
on internet
Scanning 2000 2500 2000 3000 2500 2000 1500 4000 700 4500 1500 100 74500
0 00
Total 2630 1810 27750 33600 24600 39100 2110 24700 28750 22900 2925 274 80100
0 0 0 0 00 0

Advantage of sales tactics

10
 a) To attract more customers
b) To increase profit
c) It builds trust with customers
Disadvantage of sales tactics
 It can make the business collapse if not well employed
 It requires skilled marketing personnel to apply
 It is tiresome due to repetition

2.6 ADVERTISMENT STRATEGY

 It is the method used to increase sale and productivity of an organization or an enterprise

Methods of advertisement

There are many methods used for advertisement of services and product offered in an organization or
enterprise. These include: radio, magazine, newspaper billboard and television

Discount cyber will opt to use billboard to advertise its services offered.

DISCOUNT CYBER!
Photocopying branding

Branding printing papers

Lamination cartridges

Type setting

Printing Welcome
all
Scanning
11
Passport
2.7 DISTRIBUTION STRATEGY
 Distribution strategy can be also called placement method. Distribution strategy refers to the
method used to reach buyers. it entails the channel of distribution, means of transport
warehousing and the routing of the service
IMPORTANCE OF DISTRIBUTION
 To increase profit
 To meet the customer needs
 To meet the market demand
 To reduce overcrowding for the service at the same place where it is stored that is
printing papers and cartridges
CHALLENGES OF DISTRIBUTION
1. Increased cost of operation
2. It requires skilled personnel or professional in the field of transport that is supply
managers and drivers
3. It reduces the profit to the owner of the business as more people are employed

THE MANAGER

Accountant Secretary

12
 Drivers Messager

CHAPTER 3
ORGANISATIONAL PLAN
3.1 Organizational structure
Discount cyber will be having the following organizational structure

Manager

Secretary

Accountant

Trainer

driver

solder

13
BUSINESS MANAGER AND QUALIFICATIONS
The manager of Discount cyber will be required to have the following qualifications, mentally
being able to lead the employees, communication skills have the ability to work under pressure he
or she should be a problem solver and a decision maker
Responsibilities
 Ability to direct people
 He shall solve problems
 Lead as an example
 Be a good time manager
 Oversee all things run into place in the institution
 The business manager will be receiving a monthly salary of fifteen thousand

BUSINESS PERSONERL AND DUTIES

1. THE MANAGER
QUALIFICATIONS
Degree in information communication technology (ICT)
 Knowledge of the business –the Manager is to understand the best practice in a business
and have a good grasp of the overall operation in the business
 Good communication skills-the principal should be able to communicate effectively
 Time management skills-the principal is to have solid time management skills meaning
that he should not only be able to effectively budget his own time but also that of the
business
 Ability to direct-the managers to have the ability to direct others where such an ability
brings people together
 Problem solving ability –the manager is required to regularly solve the problem ranging
from the simple to complex ones

RESPONSIBILITIES

 Employing and discussing the non performing employees the business manager has
the authority to fire any employee who is not doing her work

14
  He Is the official spokesperson of the business and is the head of all workers
 The manager is responsible for the business failure and success and is to be blamed in
case of any failure
 The manager will ensure that quality in relation to the price is maintained this is to
maintain the customers and also ensure that the business does not incur many loses
 The manager is to supervise all things that are done well so that the business will
operate well and smoothly to ensure it gets more profit.

2. SECRETARY

QUALIFICATIONS

 Knowledge of the specific software program

 Experience in data processing
 Bookkeeping
 Diploma in secretarial or Related studies.
 Communication skills and records

Responsibilities

 The arrangement of meetings.

 Preparations of agenda.
 Circulations of relevant papers and pens.
 Taking and producing minutes to record the business transacted managing database
 Typing and preparing and collecting reports filling
 Answering calls taking message and handling correspondence
 Maintaining diaries and arranging appointments
 Prioritizing workload
 Secretary shall receive ksh. 15000 per a month.

3. ACCOUNTANT

QUALIFICATIONS

 Diploma in accounting

15
  Bachelors in business administration
 Proficiency in computer application

RESPONSIBILITIES

 Managing all accounting transactions

 Prepare budget forecast
 Publish financial statement in time
 Handle monthly and quarterly and annual closing
 Reconcile accounts payable and receivable
 Ensure timely bank payment
 Compute taxes and prepare tax returns
 Manage balance sheet and profit loss statement

The accountant will be earning a monthly salary of 15000

4.DRIVER

QUALIFICATION

 Driving license
 Basic motor vehicle maintenance
 Knowledge of traffic rules and guidelines
 Knowledge of protocols
 Communication skills
 Defensive driving

RESPONSIBILITIES

 Safely transport goods or passengers from one location to another

 Ensure that there is enough gas in the tank at all times of their destination
 Arrive at destination on schedule
 Research and plan for traffic construction and weather delays
 Use navigation application to determine the best route
 Fulltime administrative needs like office pick up

The driver will be earning 10000 per month

5. Solder

16
 QUALIFICATION

 Have good communication skills

 Be cheerful
 Be friendly
 Be helpful
 Have welcoming attitude towards the customer

RESPONSIBILITIES

 Controlling access from one point to another

 Maintain records for people who enter in the business premise
 Check the kind of things that one is carrying before allowing them in the business premise
 In charge of the gate
 The soldier will be earning a monthly salary of 5000

PERSONEL NUMBER AND DUTIES

NUMBE JOB TITLE QUALIFICATION DUTIES SALARY
R
1 SECRETAR  Knowledge of the  Arranging meeting 15000
Y specific software  Preparation of agenda
program  Circulations of relevant
 Experience in data papers
processing  Taking and producing
 Bookkeeping minutes to record the
 Diploma in business transacted
secretarial managing database
 Communication  Typing and preparing and
skills and records collecting reports filling
 Answering calls taking
message and handling
correspondence
 Maintaining diaries and
arranging appointments

17
2 ACCOUNTA  Diploma in  Managing all 15000
NT accounting accounting
 Bachelors in transactions
business  Prepare budget
administratio forecast
n  Publish financial
 Proficiency statement in time
in computer  Handle monthly and
application quarterly and annual
closing
 Reconcile accounts
payable and receivable
 Ensure timely bank
payment
 Compute taxes and
prepare tax returns

3 DRIVER  Driving license  Safely transport goods or 10000

 Basic motor vehicle passengers from one location
maintenance to another
 Knowledge of traffic  Ensure that there is enough gas
rules and guidelines in the tank at all times of their
 Knowledge of destination
protocols  Arrive at destination on
 Communication schedule
skills  Research and plan for traffic
 Defensive driving construction and weather
delays
 Use navigation application to
determine the best route
 Fulltime administrative needs
like office pick up

4 Solder  Have good  Controlling access from one 5000

18
 communication point to another
skills  Maintain records for people
 Be cheerful who enter in the business
 Be friendly premise
 Be helpful  Check the kind of things that
 Have social one is carrying before allowing
attitude towards them in the business premise
the customer  In charge of the gate

50000

RECRUITMENT TRAINIG AND PROMOTION

(A) RECRUITMENT
The process of identifying the job vacancy analyzing the job requirements reviewing
applications and screening shortlisting selecting and finding the candidate with the best with
experience and personality to fit the job requirement.
The business will use temporarily requirement professional. The employee will be hired
temporarily or consultant to help recruit team occasionally rather than hiring full time
recruits. This will cut the cost of operation in the business.
The business will use interview the recruit employees this will be possible through
advertising the offer which trade set for interviews after completing the exercise the
successful candidates will be given the reporting dates.
(B) TRAINING
Training is the process of increasing knowledge and skills of the workforce to enables them
to perform their jobs efficiently and effectively.
The business will train its internal members using available materials and this is to be
conducted away from the workplace. The aim of training is to equipping the employees with
required skills, abilities and responsibilities. Discount cyber will have extra computers for
training the employees who will be incoming.

(C) PROMOTION

19
 Promotion is a marketing tool used as a strategy to communicate between the seller and the
buyers
The business will intend to promote the employees on merit basis such as giving
considerations to experience and qualifications
The trainees and employees who will maintain discipline will be promoted in the business
The business will increase the salary cost of the employee who will sell above 70%in or who
will deliver the service as per requirements

REMUNERATION AND INCENTIVES

Remuneration is the total compensation received by an employee .it includes any bonuses
commission payments overtime pay or other financial benefits that an employee receives from
employer.

JOB CATEGORY NO OF MONTHLY PAY YEARLY PAY

EMPLOYEES
Manager 1 20000 240000
Secretary 1 15000 144000
Accountant 1 15000 144000
Driver 1 10000 120000
Solder 1 5000 60000
TOTAL 5 65000 708000

LICENCES PERMIT AND BY-LAWS

LICENCE/PERMIT SOURCE DURATION AMOUNT

National hospital County government 1-2 years 40000
Insurance fund
Kenya Revenue National government 1-4 years 50000
Authority
Fire clearance County government 1-3 years 50000
Certificate
Advertising agreement Billboards 1-2 years 50000

20
 License
TOTAL 190000

3.7 SUPPORT AND SERVICES

For the business to expand on its activities it requires support and services from different
organizations and people that will be required internally or externally to provide backup
They include:
(A) BANKING SERVICES
The services will be provided in the Kenya commercial bank branch which will be offering
loans to the business when needed the following is their postal address
KCB- BRANCH A LONG ARGWIN KODKE ROAD
P.O.BOX 1074-90115
NAIROBI
TEL 0797956871

(B) INSURANCE SERVICES

The business will be insured against losses and theft such as damages, theft and other
emergencies which may be needed by the all come computer training school. The business
will also insure personnel and premises in the insurance company.

(C) SECURITY SERVICES

The security of the business will include maintaining the secret of the business within its
customers who will provide confidential in case there will be a problem of theft and other.
There will also be guard on duty supervision and this will make premises and place for the
customers of service or are being served the security postal addresses is
TIGRE SECURITY SERVICE
P.O BOX 1081-90115
NAIROBI
TEL-20800012

21
CHAPTER 4
PRODUCTION OR OPERATIONAL PLAN
4.1 SERVICES DESIGN AND DEVELOPMENT
Discount cyber shall develop and design a website. This will help in marketing. The business again will
be using online marketing that is through magazines television, radio and face book pages, with the aim
of marking sure that all customers get the location of the business. While advertising, the manager will
make sure that each service is offered at the discount cyber is well indicated on the advert for example the
billboards.

The business shall use both English and Kiswahili as its official language because the two languages are
easy and one is able to understand them with ease.

The business shall use technology to automate time. Booking and reporting will be done online so that the
staff can have an easy time while compiling reports and makes sure that no information will be missing
when required to make business decision. The technology is trusted that it shall give the business the right
to access right information at the right time for a smart business strategy.

The manager will ensure that customers are warmly welcomed in the business and with the help of the
receptionist and the secretary.

22
4.2.1 OPERATIONAL FACILITIES AND CAPACITY

4.2.2 PREMISES LAYOUT OF ALL COME COMPUTER TRAINING

The business shall have an open layout that one will be able to access the place that he or she wants to

Accountant Manager’s
Reception desk office
Secretary
room

Store for damaged Waiting bay 2

computers and
other materials

Washroom

Consultation
desk

4.3 OPERATIONAL STRATEGY

The business shall make orders for some products that are used in carrying out our services monthly

23
Type of Frequently Supplier Partners Quantity Cost per unit Total
product required

Printing Weekly Twiga supply 10 reams 500 5000

papers

Ink for the Weekly Twiga supply 20 boxes 700 14000

printers

Markers Weekly NAIVAS 100 pieces 50 5000

SUPERMARKET

Pens Weekly NAIVAS 200 pieces 20 4000

SUPERMARKET

Beams Monthly Hero printing 10 rims 10000 20000

printing papers supply
papers

Dusters Weekly Twiga supply 20 pieces 100 2000

Visitors book Weekly Twiga supply 2 pieces 150 300

Mark pen Weekly Twiga supply 20 pieces 30 600

Notebook Weekly NAIVAS 50 pieces 100 5000

SUPERMARKET
Identity Monthly TAJIRI DESIGNS 10 pieces 200 2000
budges

Cables Weekly NAIVAS 50 pieces 200 10000

SUPPERMARKET

24
 4.4 OPERATIONAL PROCESS FOR ALL DICOUNT CYBER
The business shall run on a defined operational process that customers shall walk into business make their
inquiries and book appointment at the reception desk as they shall then be guided by the solder to the
waiting bay where they shall wait to be served. Thereafter they will move to the secretary where the
secretary will take the customers to room where they will receive the service. He or she will then be
guided to the accountant room where he or she will be required to make his or her payments. The
accountant will then give a receipt that will enable them secure a place in the all come computer training
school the trainee will then be able to attend the classes since he or she has already paid for the services

Directed and shown

the printing room
Customers wait at the
Customers appointment and browsing
waiting bay
computers.

Services provided

Payment of the Directed to the

service offered accountant

25
4.5 REGULATIONS AFFECTING BUSINESS OPERATION

TAX PAYMENT

The business shall be expected to pay taxes to the government of Kenya the tax paid shall be used ro raise
revenue for the government which shall be used to maintain the level of peace and security and the social
welfare of the people the tax will also be used for economic stability.

STANDARD OF THE BUILDING

The name of the training school shall be visible on the building to indicate that it is a registered institution
rooms reserved for the business shall be closed with a door to prevent third parties from entering during
service delivery the frontline area and service room of the training institution shall be adequately lit. The
billboards will be used to display the logo of the school but under Discount Cyber.

INSPECTION BY THE CITY COUNCIL

The business shall be inspected by the council before registration and they shall continue to inspect the
establishment every six months if a validation shall be found the opportunity would be given to correct
the matter and failure to do so shall result in the revocation of the standard compliance permitted issued to
the business.

HEALTH CODE

The business shall create an unwanted inherent exposure to the trainees the business in order to avoid this
shall make certain that it has reviewed its health code as it pertains its particular like of business the
equipment that shall be used shall be fumigated and undusted to avoid trainees from falling sick

PREMISE LIABILITY

The term premise liability refers to the liability a training owner assumes in the event a customer is
injured on site. The business shall have duty to inspect the premises for dangerous and hazard it shall also
have the responsibility to warn customers in the event a hazard is present in the building and take extra
precaution that one required.

26
EMPLOYMENT ISSUES

The business shall be keenly aware of the federal and state laws affecting its employees. The proper use
of overtime sick leave and the minimum wage shall be in its compensation.

4.6 INTERNAL RULES AND REGULATIONS

 Time management

The business shall expect all its workers report on the stipulated time implemented by the manager

 unexpected

So as to avoid pouring the food stuff on the machines that will lead to damage.

 Do change computer settings

To avoid the computers from differing with what the trainer will be teaching

 Learners should properly save all unfinished and unfinished works

To avoid learners or trainees work from getting lost or falling into unknown destinations.

 Print only when necessary

To avoid wastage of materials and resources in the institution and at least save for future. The staff should
only do the printing when asked to do so.

 Only use the computer that you have been allocated

To allow every trainee have their work stored and saved in one computer in order to avoid data from
getting lost

27
 CHAPTER 5
5.0 FINANCIAL PLAN
5.1 PRE-OPERATIONAL COST
ITEMS AMOUNT
Rent 8000
Advertisement 5000
Insurance 5000
Furniture and fitting 20000
Postal charges 2000
Transport 52500
Machinery and equipment 123000
TOTAL 215500

5.2 ESTIMATION FOR WORKING CAPITAL REQUIRMENT

Items 2025 2025 2026 2026
current asset
stock of the raw 123000 223000
material
stock of working capital 100000 200000
stock of furnished 60000 100000
goods
cash in hand 50000 100000
cash in bank 300000 400000
Debtors 20000 40000
total current asset 653000 1063000
Less current liabilities

Creditors 50000 100000

estimated working cost 653000 1063000
total current liabilities 603000 963000

28
5.3 PROFOMA INCOME STATEMENT
Discount cyber for the year ending 31st dec 2025

DEATAILS 2025 2025

Sales 8650000
Less cost of goods sold
Opening stock 0000
Purchase 2173000
Closing stock 8650000
Cost of goods sold 6477000
Gross profit 2173000
Less expenses
Rent 96000
Electricity 19800
Insurance 5000
Loan repayment 72500
Advertisement 5000
Furniture and fitting 20000
Water 4200
Transport 52500
Machinery 123000
Postal charges 2000
Salaries 90000
Total less expenses 1300000
Profit before TAX 873000
Less VAT 16% 139680 733320
Profit after tax

29
5.4 PROFOMA BALANCE SHEET
DISCOUNT CYBER END 31ST DEC 2025

DETAILS 2025 2025

Fixed asset 123000 100000
Equipment and machinery 23000
Less acc depreciation 20000 18000
Furniture and fitting 2000
Less accumulative depreciation 118000
Total fixed asset
Current asset
Stock of raw materials 123000
Stock of working capital 100000
Cash in hand 50000
Cash in bank 300000
Debtors 20000
Total current asset 653000
Current liabilities
Creditors 50000
Working capital 603000 661000
Net total asset
Represented by
Capital introduces to business 900000
Add net profit after tax 812700
Capital employed 1735700

30
 5.5 PROJECTED CASHFLOW STATEMENT

Discount cyber projected cashflow statement from the period ending 31 st dec 2025

etails Jan Feb mar apr may jun jul aug sep oct nov dec total
l bf 0000 897600 11296900 1743400 224200 2794900 3396900 4048900 475100 5512700 6313000 7165000 37105500
0
les 400000 500000 550000 6000000 650000 7000000 7500000 8000000 850000 900000 95000000 1000000 86500000
0
apital 900000 900000
tal cash inflow 1300000 1397600 1846900 23430400 2892500 3494900 4146900 4848900 561000 6412700 7263000 8165000 49721800
0
ss expenses
achinary 123000 123000
ent 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000
laries 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 900000
vertisements 5000 5000
ansport 3000 4000 7000 5000 2500 3500 4000 4000 4500 5000 7000 3000 52500
rchases 123000 150000 2000000 2000000 150000 200000 300000 250000 250000 100000 1500000 100000 2173000
surrence 5000 5000
rmit 3000 3000
stal charges 2000 2000
rnitures 20000 20000
an intrest 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 30000 30000 36000
an repayment 10100 9000 8100 7000 68000 6500 6000 5500 4500 4000 3000 2000 72500
ater 300 200 400 400 300 500 600 400 300 200 200 400 4200
ectricity 1000 1500 2000 2500 2000 1500 1000 1000 2000 1500 1800 2000 19800
rniture dep 2000 1000 2000
achinary dep 23000 23000
tal cash outflow 402400 100700 103500 100900 97600 98000 98000 97900 97300 97700 98000 93400 1399200
tcash flow 897600 12969000 1743400 2242500 2794900 3396900 4048900 4751000 551270 6313000 71650000 8071600 42552700
0

31
32
5.6 BREAK EVEN ANALYSIS
A) GROSS PROFIT

=sales-cost of goods sold

8650000-6477000

=2173000

B) GROSS PROFIT MARGIN

=gross profit\sales *100%

2173000\8650000*100%

=25.12%

C) TOTAL OVERHEAD EXPENSES

ITEMS Amount
Rent 96000
Salary 900000
Insurance 5000
Postal charges 2000
Transport 52500
Water 4200
Electricity 19800
Loan repayment 72500
Advertisement 5000
Furniture and fittings 20000

33
 Machinery equipment 123000
Total 1300000

Break even analysis=total overhead/gross profit*100%

= 1300000\2173000*100%

=59.825%

5.7 CALCULATING PROFIT RATIO

A) GROSS PROFIT\SALES *100%

2173000\8650000*100%

25%

B) RETURN ON EQUITY

=NET PROFIT\OWNERS EQUITY

733320\300000*100

244

C) CURRENT RATIO

= CURRENT ASSET\CURRENT LIABILITIES*100%

653000\661000*100

99%

5.8 DESIRED FINANCING

DESCRIPTION OF ITEM 2025
pre-operational cost 215500
fixed asset 118000
working capital 60300
TOTAL 830300

34
5.9 PROPOSED CAPITALIZATION
SOURCE AMOUNT
equity saving 3000000
Friends 400000
bank loan 200000
Total 900000

Appendix

35