BUSINESS PLAN

LOICE HOLLOW POT MAKERS AND SUPPLIES.

P.O. BOX 114 – 01000
NAIROBI
PHONE NUMBER: 0793834888
EMAIL: loicehollowpotmakers&Supplies@gmail.com
LOICE HOLLOW POT MAKERS AND SUPPLIES

PRESENTED BY ACHIENG LOICE

INDEX NUMBER: 1061200896
PRESENTED TO KENYA NATIONAL EXAMINATION COUNCIL
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR
AWARD OF DIPLOMA IN BUSINESS ADMINISTRATION.
SUPERVISOR………………………...........

NOVEMBER 2022

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DECLERATION
I hereby declare that the Business plan is my original work and that it has not been presented
to award of Diploma to any Institution.
NAME: ACHIENG LOICE
INDEX NUMBER: 1061200896
UNIT CODE:…………………….
SIGNATURE :……………………
DATE:……………….…………….

SUPERVISOR’S NAME: MR. OHASA AGGREY

SIGNATURE:………………………..
DATE…………………………………

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 ACKNOWLEDGEMENT .
I would like to appreciate our supervisor MR. Ohasa Aggrey for the full support and guidance
he has offered out through the project. I also wish to acknowledge all those who assisted me
in ensuring that the Business plan project report was successfully done.

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 DEDICATION .
I would like to dedicate this project to my family, MR. Damian Bugo . To few friends of
mine in whom have been giving me support and advising me and giving me different ideas
through out the project .

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EXECUTIVE SUMMARY .
Business Description
The name of the company will be “HOLLOW POT MAKERS’’
It will be located along Kangundo Road , Embakasi West , Nairobi County .
The business contacts will be :
P.O.BOX 114 – 01000
NAIROBI
Tel no : 0793839888
Email:loicehollowpotsmakers&supplies@.Gmail.com
Opportunity and Entry
The business will produce quality product and services to it’s costumers and the market in
which will be standard and also extending the business into other areas .
Marketing
The business targets in strategy ways to make profit of about 20% in the first four years of the
business .
Management
This is where by different staffs members will be given different roles in which they will be
responsible for the day to day activities of the company to take place .
Financial Plan

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Detailed financial plan will be shown , the predicted sales, liabilities and assests among other
financial details .
Overall Schedule
A well documented work schedule for the employees will be shown within the company
Problems and solutions
Qualified employees will be employed into the company so as to improve company’s
performance so as to encounter any problem that may appear .

TABLE OF CONTENTS .
Declaration ……………………………………………...……………….. 2
Acknowledgement …..……………………………...………….…………3
Dedication……...……………………………………...…………………..4
Executive summary ……………………………………...………………..5
Table of contents ……..………………………………...…………………6
CHAPTER 1
……...…………………….………………………………………..............8
1.0 General introduction ………………….…………...…….………..8
1.01 Business description …………………………………..……………8
1.02 Mission statement of the business …………………..………………8
1.03 Business Sponsors ……..…………….……………...………………8
1.07 Form of ownership ………………………..………..……………….8
1.08 Business Address and its Advantages …………………......……......8
1.09 Products and services …………….………………….……………..10
1.10 Products features …………………………………………………...10
1.11 Benefits Obtained …………………..…………….…...……………10
1.12 Competitive advantage ……….………………….…………………10
1.13 Industry ……………………………………………………………..11
1.14External motivation …………………….…….……....………………11
1.15Objectives ………………………………….
……………………..12
1.16Entry strategy ………………………...……………………………..12
1.17Growth strategy ……………………….…………….……………….12
1.18Opportunity Arising …………………………………….……………13

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 CHAPTER TWO .........................................................................................14
2.01 MARKETING PLAN ………………..……………....……………..14
2.02 Marketing Environment ………………………………....…………..14
2.03 Customer Behaviour …………………….………….………………16
2.04 Market Share ………………………………...…..…………………..17
2.05 Competition ………………………………..…………..…………….18
2.06 Advertisement Strategy …………..………………...……………….20
2.07 Promotion strategy …………………...…………...………………….20
2.08 Pricing Strategy ………………………………………...…………….21
2.09 Sales Strategy ……………………………...………….….…………..21
2.10 Distribution Channel …………………….………………..………….21
2.11 Means of Transport ………………………………………..……….. ...22
2.12 Anticipated Problems …………..……………………..…….…………22
CHAPTER 3 …………………………………………..………...……………23
3.00 ORGANISATIONAL PLAN …………………..……………...………23
3.01 Human resource /Manpower planning ………………….....……….….23
3.02 Organizational Structure ……….……………………………...……....24
3.03 Functions of Management ……………………………..…..………….27
3.04 Recruitment ,Training and Promotion ……………………….……..…28
3.05 Remuneration and incentives …………………………….…...…….…29
3.06 Supportive Services …………………………………………………...30
CHAPTER 4……………
……………………………………………………………..………….……….32
4.01 PRODUCTION PLAN …………………..……………………………..32
4.02 Site office plan ………………………………………………………….33
4.03 Cost of production …………..……………………………..………...….34
4.04 Production process …………………….…………………..…………...35
CHAPTER 5……
……….………………………………………………………………………....36
5.01 Financial Plan …………………………………………………………..36
5.02 Pre-operational Cost …………………………………………….………36
5.03 Estimation on Working Capital …………………………………..……..36
5.04 Projected Cash Flow of the year 2019 ………………………………….37
5.05 Pro –Forma Income Statement……………………...………………….38
5.06 Pro – Forma Balance Sheet at 31st 2022 …………………..………..….40
5.07 Break Even Point ……………………………………………………….42
5.08 Desired Finance ……………………………………….…………..…..44

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CHAPTER ONE
1.01 General introduction
1.01 Business description
Loice Hollow Pot Makers and Suppliers is a firm that deals in the making of hollow pot
structures in which are used in building of especially upper floors in buildings , The business
is located along Kangundo Road , Embakasi West in Nairobi County .

1.02 Mission Statement of the business

To be the most referred business enterprise the distribution of hollow pots in Nairobi County
and neighboring Counties .

1.03 Business Sponsor

Since the business is a sole proprietor it is sponsored by Loice Achieng.

1.07 FORM OF OWNERSHIP

The business is a sole proprietorship and is managed by a professional in building

construction.

1.08 ADVANTAGES OF SOLE PROPRIETORSHIP

One enjoys profit alone; Being as a sole proprietor business activity, one enjoys the whole
profit from the business personally.
Flexibility; Being a sole proprietor business one is able to make any decision by him / herself
without involving any other people and hence saves time for business activities .
Decision making is easier; Since the business is a sole proprietor one makes decision making
is much easier

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No age limit; Since one is self-employed there is no age limit of carrying out the business
activities .
Income is unpredictable; Since none is on a fixed payment income from the business

activities hence the income from self employment it is very unpredictable .

1.09 BUSINESS LOCATION AND ADDRESS.

The business will be located along Kangundo road ,Njiru Embakasi west in Nairobi county .
Business address information
Name = Loice Hollow Pots Makers & Supplies
Address = P.O.BOX – 114 -10100 , Nairobi .
Phone = 0793839888
Email = hollowpotsmakers@.Gmail.com.

ADVANTAGES OF THE PLACE .

Business place of location - Since one is able to connect to the various roads around there
linking them to the various by-pass roads for example Southern Bypass and Outer-ring
Bypass and also other interior roads in the area .
Availability of labour - There is a good number to be employed into the business for them to
work in.
Availability of Market - Since there are some development projects taking place along
Kangundo Road there will be a large order of the hollow pot structure from the building
project taking rapidly around the area .
Availability of Materials - Since there is good supply of good sand from Machakos County
which is about 50km from our site in which is more convenient and good supply of cement
from Bamburi Cement in which is along Mombasa road about 30km from Njiru .
Accessibility - The roads around the business are easily accessible anytime when one
requires to use .

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TERRAIN
The area is generally flat served with good conditioned tarmacked
roads.
RUAI CENTRE
TO RUIRU TO MOMBASA ROAD

TO MWIKI NJIRU LOICE HOLLOW POT

MAKERS & SUPPLIES.

TO THIKA ROAD OUTER –RING

ROAD

1.09 PRODUCT AND SERVICES

The business will be producing hollow pots structures to be used in the construction of
buildings in which are made of different sizes depending on the floor size required also we
can carry out orders from our client .
Services to be offered are…

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Free transportaion of the hollow structures , in which is limited around Nairobi County and if
required outside an extra fee will be imposed to the client. Also special order design from our
clients we will also make for them their required designs .

1.10 PRODUCT FEATURES

The hollow pot structure is a structure in which is mainly used in the flooring process of
houses especially upper floors in the construction of buildings of in where by less weight of
the upper floors want to be attained .
Hollow pots structures are made of a mixture of Sand , Cement , Dust and water , In where
by they are mixed according to the right ratios and are then placed into there mould
structures of right sizes in where by they are left to the sun to dry up , so attain there
strength .Since they are very fragile products they should be stored well
As our customers purchase this products from us we only offer free transportation around
Nairobi County and we charge an extra fee transportation outside Nairobi County .

1.11 BENEFITS OBTAINED

Social benefits .
Creation of job opportunity around the area , in which will be able to employ the people
around and especially the youth .
Economical benefits .
It will lead to the higher living standards of the people who are employed , since they will be
receiving salary enabling them to live a better standard .

1 .12 COMPETITIVE ADVANTAGE .

Being as a sole proprietor business , it requires for one to be competitive in the market one
has to be able to identify his/her business competitors learning on the strengths and
weaknesses and is able to take advantage of them so as to enable one to acquire more
customers in the market .

Competitor Strength Weakness

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 1. Erath Hollow Availability of Poor customer services .
potters . Machinery.

2.Highways hollow pots. Availability of capital . Lack of skilled

Personnel .

3.Eagle Makers Availability of Lack of machinery.

Customers .

In conclusion , I would take their weakness as my competitive advantage ,I will have a good
customer relationship so at to still maintain and attract other customers into my business ,
Employ skilled workers and purchase new machinery into my business so as to enable easier
works and will also enable good efficiency production in work and also improvise good work
management in the company .

1.13 INDUSTRY
Justification
The report from the government housing sector released a report in which was stating that the
building sector has rapidly growing at a rate of about of 3,6% per year in which has led to
various fields of construction to employment .

EXTERNAL MOTIVATION
Availability of market - Since there are construction sites on going they require proper
construction material in which are required to build the houses set-up ,so being a hollow pot
company our products are much needed in the construction of houses .
Availability of infrastructure - Good roads which are assessable at anytime encourages
business activities to be carried out at any time the product is required hence promoting
business activities to run .
Government policy - Encourages contracts to be carried out which can either be offered by
either National or County government in whom may open a tender in supply of materials to
their construct sites

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Availability of labour - Since there is availability of cheap labour around the company from
the people living around there hence this promotes work to be done .
Good Security - Since the government has improved security around the country by settting
up street light to all places hence promoting business activities to be carried out 24/7 in the
country .
Availability of Materials - Since there is good supply of hollow pots building materials of
sand, cement and dust from the companies near –by hence promoting the making of the
hollow pot structure .

1.15 OBJECTIVES.
Short term objectives .
To maintain good relationship between workers and our customers .
To maintain good relationship of the business name ,so as to become a refferred centre of our
product .
To make a profit out of the business of about 10% profit within an year
To advertise our company products and services in which will enable us to acquire more
customers from the market .

Long term objectives .

The company plans to purchase a truck ,in which enable transportation of the hollow pots
from the business premises to the required sites .
The company plans onto purchase more land in which it plans to be a new branch in where
by it will be involved in the making of hollow pots and also making of other building
materials such the window seals, cabros .

1.16 ENTRY STRATEGY

The company business name and activities and what we involve ourselves with should be
known well by the public which includes the County Authorities , police and even to our
clients .
Through advertising and branding our company name , in where by the sales manager of the
company will come up with ways in which we will be able to reach out to our clients .

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Having business licenses which are required to permit as to carry out the business activities ,
so as to follow the government laws as required .
By ensuring we make good products in which are selling out to our clients , in where by we
make them to refer back to us if they require back the same products .

1.07 GROWTH STRAREGY .

By employing skilled personell into the business since they are required to have the technical
skill on the making of the hollow pots and therefore boosting business efficiency to run and
also those employed in the offices are required to do their work properly and also enable the
company to run on smoothly .
Maintain our loyal clients and searching and attracting more buyers into our business and to
ensure we become a reference point to them .
Embracing the new technology world in the building industry , so as to adapt the new change
and apply it into the fields since the world is becoming more digitalized daily .
We also require to come up with ways in which we will in still into the business in which
enable us to to grow and also attract more clients into our business.

1.18 OPPOURNITY ARISING .

The business plans on opening other two branches one will at Ruai and the other along
Mombasa Road since the area will have major development later in the coming years .

Advantage to take opportunity ,

Availability of works in which the branch at Ruai will be able to serve the Southern by by-
pass highway and the one at Mombasa road will serve parts of the Mombasa road .

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 CHAPTER TWO .
2.01 MARKETING PLAN .
Marketing is the process in which the management process through which goods and services
move from concept to the customer .
Importance of marketing .
Marketing is helpful in development of an economy – marketing is the kingpin that sets the
economy to be more strong and stable .
Acts as a source of new ideas since one is able to understand on production and distribution
and also the new demand pattern of goods.
Creates job oppournities – marketing employs various people in whom are involved in
buying, selling, financing, transport, warehousing.
Enables in raising the standards of living of the community – since it has maintained that
everything that is used by the three social classes i.e rich , middle and poor is available to
them .
Marketing helps in transfer , exchange and movement of goods – the goods are made
available to the customers through by wholesalers , retailers one is able to know the demand
from the customers and therefore one can be able to sastify them .

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2.02 MARKETING ENVIRONMENT .
Location -The business will be located at Njiru , along Kangundo Road since there are a lot
of development activities taking place along the Kangundo Road .
Geographical factors - The geographical area of the land is generally flat and therefore
accessable since there are good roads to facilitate easier movement around the area . The
area generally has a hot and dry climatic conditions , so it receives seasonal rains around the
year .
Business environment- There are a lot of business activities taking place around the area
such of the market place, shops , mechanic services therefore promoting the area to be a
business center .

Political environment .
Legal policy - The company name should be registered under some authorities such as the
County Government ,and the environmental organization of Kenya [NEMA ] so as for
them to know which business activities we are carrying out and also to give as necessary
permit to carry out the business .
Ethnic of marketing - In Nairobi county business activities are allowed to be carried out
through the week , hence it will be more advantageous to our business since the hollow pots
will be much available to our customers throughout the week .

Government policy - The government enabled the construction of both two major roads in
which are serving Kangundo Road the two major roads are The Southern By-pass and The
Outer RING Road in which will be able to facilitate easier movement of people and goods
due to the availability of infrastructure .
Economic Environment .
Income levels . - The income levels of the people of Nairobi County is neither low or high ,
since the bigger population comprises of the middle class people and whom mainly many
business people from the market places , industries , offices and are able to sustain
themselves .
Income distribution .- By the coming up of devolution in every county government , that
Nairobi County has attracted a lot of investors in the various fields of business activities
around Nairobi and hence making more people to be employed in whom many of them
receive their salaries at the of every month so therefore making buying activities to peak up
good at every end month and evenly distributed around the month .

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Social Environment .
Population .
The population of Nairobi County is of about 2,800,0000 people in whom major comprises
of the youth mainly , and few number of aged people ,average number of children .

Competition Environment
There are also other upcoming hollow pots markers and bricks makers in whom are targeting
major developments along Kangundo Road are a competition to my business .

Customer Environment .
Private property developers - There is a good number of private property developers in the
areas .
Individuals - This includes families of Nairobi in whom require our product in the
construction of their builidings .

County Government of Nairobi - Since there are some construction developments

around Nairobi county mainly of building houses , Our company tends to sell out our
products to the County Government of Nairobi .

1.03 CUSTOMER BEHAVIOUR .

This is the way in which our customers react out on how we offer our provision and services
and products to them and how they describe .

Psychological factors .
This is mainly comprises of the various different characters in which the customer has .In
which the seller should know how to handle each and every customer so as to maintain the
relationship with all of the customer one has .

Cultural factors .

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This are the behaviors in which an individual acquires from his, her living surrounding in
which includes the families, relatives , religion As a seller one should be able to learn the
cultural trend of the people around the business activities carried out .

Social factor .
This are roles and responsibility in which an individual should play his, her in the
community .
Most families in the society comprises of the middle class and high class and they mainly
target on developing themselves .

Personal factor .
It mainly comprises of people between the ages of 24 – 44 years in whom mainly are both in
the private and public sector , and are mainly to be of the high and middle classes in the

community .

MARKETING STRATEGY .
This is a method in which I am targeting to apply in which will enable me to sell out my
products and services to my customers of the hollow pots , and also to maintain and attract
more customers into my business and also to become the most preferred company.
Maintaining customers - Keeping and maintaining good relationship with customers by
offering them the best of services and products.
By opening a website -This will enable our clients to easily assess our services on the online
platform when they need it .
Employing highly qualified workers - Both in the offices due to the management who can
offer good services and also in the field who can construct our products efficiently.
Through advertising - One can advertise the company through by posters , television
advertisements in which may capture a population in which people can purchase their
products .

2.04 MARKET SHARE .

This is the percentage share of the market sales in which we share with our other competitors
in whereby we can learn about our strength and weakness from the market and comparing it
with our other business competitors .
The following methods will enable us to know the market share; Observation, questionnaire
and interviews .

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Observation -This is done by daily encounter by our clients in which we evaluate them and
also learning from them , this will enable us to maintain our customers .
Questionnaires -There will be a set of questions in which will be used to examine our
customers on about our products and services offered to them , and will enable us to analyze
on either on our strength and weaknesses on offering our services .
Market share = No. of questionnaires /questions issued x 100
Interviews -We will carry this interviews orally to our customers asking them on how we are
fairing in the market and our performance generally .
Also knowing if we are good or bad compared to our other

Market share

Sales

9%
10% Others

3rd Qtr
4th Qtr
23% 59%

58% - BLUE – OTHERS .

9% - YELLOW – Erath Hollow Potters .
10% - GREY – Highways Hollow Pots .
23% - Brown – Eagle Makers .

Potential Customers = 30

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 Market share =30
Percentage Market Share = Market Share x 100/market return

2.05 COMPETITION .
Competitors

-Our business faces competition from other Hollow Pot Makers in the area in whom
we are competing with them .

County male female total No of Land Density

hhs area ares per
sq .km sq. km
Nairobi 1,420,000 1,100,000 2,520,000 700,000 582,650 10,000

Name of our competitors and their addresses .

1. Eagle Makers
P.O.BOX 4567 – 10100,
Nairobi .
2. Highways Hollow Pots
P.O.BOX 231- 10100,
Nairobi.

Analysis Table .

Item Competitors
Hollow Pot
Eagle Makers Highways hollow
Makers .
pots .

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 1.labour 3 5 5
3
2.Services 4 4
4
2 5
3.Price 5
5 3
4.Adversitement 5
4 5
5.Technology

Key .
5 – Excellent .
4 - Very good
3 - Good
2 - fair
1- poor

Coping with competition .

In order to cope with the competition from my competitors I must take up some measures so
as to ensure me that I grab and maintain my customers in the market .
By offering good prices of our products in which will be affordable to our customers .
Having good relationship with our customers so as maintain them and also have good
cooperation with them .
Offering discounts to our customers in which is a way to maintain them.
By embracing new technology into the business in which will enable us to be ahead of our
customers.
By training of employees so as to give out competitive results.

2.06.ADVERTISEMENT STRATEGY
ADVERTISEMENT STRATEGY

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The business implies to use new ways of selling out itself , so as to attract more buyers from
the market , in more affordable means. Online Advertisement

The business will advertisement its products through its own blog , facebook and instagram
in which will enable us to tap some more cutomers through social media ,it may cost about
Kshs. 20000 annually .

Radio Advertisement
The business implies to use radio means since most people have radios at home and this may
help us to attract more customers in whom shall be hearing about our products and
services .It may cost about Ksh.45000 annually .

2.07 PROMOTION STRATEGY .

This is a way in which the business will find ways in which it will be able to attract more
customers and maintain them , also people to understand on what about their products and
service they are offering out .
The business implies to use the following ways so as to promotion way of the company and
their products and services to be known;
By making of company diaries and calendars in which our customers are given out , in which
the calendars bear our company name products and services offered .
Giving out discounts in large contracts to our customers .
By advertising our company through the internet and also in the media in which enable us to
tap more buyers .

2.08 PRICING STRATEGY .

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This will entail on cost of labour,different prices of our products, cost of transportation of our
products to required sites .
The following are ways in which the company will come up a price strategy .
Market Demand -If the demand is high , the cost will also be high .
Competitors Price .-If my competitors price is higher , I will tend to lower my price slightly
below theirs , so that I will be able to attract more customers .
Selling Price= Buying Price + Cost Price +VAT [16%] +Transport Price .
Government policy-If the government imposes high taxes , then the price will be high .

2.09 SALES STRATEGY .

This is a way in which the company will use so as to attract more customer , maintain them
and to make them aware .
It will include;
Personal Selling -This is done by when one is getting involved by clients by buying out the
products and services.
Credit Facilities - One offers credit to the customers so as to maintain them and attract them
also.
Advertisement And Promotion - It is done by making the public to know more about our
products and services in which our company are offering and it will enable us to attract more
customers.

2.1 DISTRIBUTION CHANNEL

Distribution Strategy-This is the movement of the products [Hollow pots] from where there
are produced to where there are required by the clients .
Distribution strategy includes;
Direct Distribution
Indirect Distribution

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Direct Distribution involves direct contact between the buyer and seller who are in contact
While Indirect Distribution involves a longer chain in the movement of the product to get into
a contract because the buyer and seller are not in contact .

Advantages of direct distribution

The company is able to solve disputes easily with their clients since the two will be in contact
with each other .
There will be easier communication in between the company and client since their will more
interaction in between them .
There will be room for negotiation between them for the product and services they are
offering .

2. 11 MEANS OF TRANSPORT

The most effective means of transportation in the area is by use of

roads since the area is well networked by it .
Adavantages of road transport .
Accessibility - Most of the roads in the area are accessable because most of them have been
tarmacked .
Availability - Since it is the most convenient means of transport it is readily available .
Flexibility- Roads can be built anywhere and can be accessed anytime .

2.12 ANTICIPATED PROBLEMS .

Since some of the roads are not in good condition in which some of them have huge pot holes
some are not tarmacked , and it will be difficult in the transportation of the hollow pots in
which they are very fragile products .
Solution to the problem .
By requesting the County Government to improve some of the roads condition in the area
especially the interior roads so as to allow business activities to take place.
The company to purchase a vehicle in which can withstand all road conditions

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CHAPTER THREE

3. 00 ORGANSIONAL PLAN .
This is the process of identifying the company`s long term and short terms objectives and
which are formulated and monitored and proper strategies are implemented so as to achieve
them, it also includes the management process of the company in where by employees are
given different position regarding to their qualification and they play different roles in the
company in order to assist in achieving the company objectives and goals set .

1.01 HUMAN RESOURCE /MANPOWER .

The company places and selects qualified people in the to various positions in the
company and will be assisting in the management of the company, hence they will help
in achieving the goals of the company .

Motivation needed for manpower planning

An Organization requires a good number of qualified personnel in whom will be able to
perform their roles in the management process of the company and hence the organization
goals and achievements can be attained.

Advantages of a good man power planning .

Good performance – from the company since qualified employees will deliver quality work
hence increasing company’s overall performance .
Employees whom are inducted into the company will be skilled so as to fully perform their
roles and responsibilities required by the company since there are training programs in the
company .
Attraction of new clients into the company since the have been offered quality products and
services by the company’s employees .
It helps to ascertain and identify critical shortages of skilled staff and take corrective action
by timely recruitment so as to prevent production break-down or under-utilization of plant
capacity .

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 3.02 ORGANIZATIONAL STRUCURE .

Managing Director

Head of Sales Accountant

Labour Manager

RECEPTIONIST LABOURERS
SECURITY DRIVERS
GUARD

Managing Director .
Qualifications
One has to have a degree in the field of business management .
Has to have an experience of about 3 years in the field of business .
Has to be of 27 years and above .
Has to have good business skills in all sectors .
Should be computer literate .
DUTIES

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To organize on how the work is to be carried out in the organization .
To handle all works of contract to the company .
To be able to perform all his duties and responsibilities to the company as expected of
him/her .
To make all decision involving the company .

OTHER PERSONELL .
Sales manager .
NUMBER = 1

Qualifications.
Diploma/Degree in sales marketing and management .
3 years experience
25 years and above of age .

Duties
Maintain all sales documents of the company is involved in .
Able to make strategy on how to brand and advertise the company’s product and services .

ACCOUNTANT
NUMBER =1

Qualifications
Diploma in accounts .
Computer literate .
2 years of working experience .
25 years of age .

Duties
To keep all accounts records properly and recording them specifically

Head of labour .

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NUMBER = 1 .

Qualifications .
Craft certificate in Building technology grade [ III ] .

Duties .
Supervising and arranging daily labour work .
Inspecting products made .
Represiting issues of the other labourers .

Receptionist .
NUMBER =1

Qualification .
Diploma in front desk management .
Should know both Kiswahili/English languages .
Computer literate .
25 years of age .

Duties .
Receiving of clients in the office .
Filing and recording of records
Word processing and dispatching them to employees .

Driver .
NUMBER = 2

Qualifications .
30 -35 years of age .
Valid driving license of class [BCE]

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4 years of driving experience .

Duties .

They should be able to transport the hollow pots to the required sites .

Security guard
Number = 1
Qualification
A minimum of D+ In Kcse examinations .Have a good conduct document .
Conversant with both English/Kiswahili languages .

Duties .
Have a good record of everyone entering into the company including visitors and the
employees recording time of entry and exit and signing .
To keep all places in the company safe both in the offices and outside of the offices .
Directing of all visitors to the required offices .

Labourers .
Number = 9

Qualification.
Should have a good conduct document .
should well be conversant with Kiswahili and English languages
Should have a minimum of D- in kcse examination.

Duties .
To perform their work efficiently as aspected by the company .
To obey all laws and rules of the company .

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3.03 FUNCTIONS OF THE MANAGEMENT .
Co-ordinating
This is the process in which all workers playing different roles in the management of the
company are united together in order to work together among themselves .

Planning
This is the process in which decisions of the company which mainly are goals and objectives
are made for and their arrangement for them are made in order to achieve them .

Organising
This involves on how day to day daily activities are runned in the business and it requires a
proper organizational structure management to keep the business to run all through .

Directing
It involves issuing official orders and building effective work climate by motivating and
disciplining supervising employees .
Controlling .
This is ensuring that the functions of the organization are in place and operating
successfully ,also checking on all workers working performance and records .

3.04 RECRUITMENT ,TRAINING AND PROMOTION

This is the process in which the company employees new workers in case of any vacany in
any of its vacant position in the offices and it follows a certain order so as to get the most
qualified worker also it offers training to all its workers and the company provides
promotions to it’s workers as a way to motivate them .

PROCEDURE
Advertisement
The company will be able to advertise various job vacancies through social media which it
involves the company’s website and newspaper.

VACANY ANNOUNCEMENT
Hollow Pots Makers are seeking to recruit various personnel to the company in the vacant
positions. Those who qualify can kindly apply.

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Application
Those who qualify are requested to send in their application letter attached with their
curriculum vitae and academic papers and other important documents which may be also
required at the interview and all documents should be sent to the Managing Director of the
company by online means.

Shortlisting
The board members of the company will select the most qualified persons by going all
through the applications and selecting the qualified applicants.

Interview
All the applicants who qualified will be informed on when the place and time where the
interview will take place , and the board members will select the qualified applicants .

Selection .
Those applicants whom may ,have qualified the interview will be selected by the board of
directors of the company to be their employees .
Appointment letter
Appointment letters will be sent to all the qualified applicant and the letter will be able to
provide with information on about their position,roles and responsibility , salaries and
allowances .

Acceptance
The selected employees who were selected may have to write a letter to the company so as
sign to show they have accepted the offer to work in their company .

Training
This is the process in which the company will offer training education to its staff members ,in
which will enable them to carry out their duties as expected , improve their skills on how they
manage their customers and hence will enable to improve general performance of the
company .

Promotion

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The company will offer promotion to its members such as endorsing some members of the
company to higher positions and this will enable to show staffs members that the company
recognizes the hardwork of every member in the company .
The company will also be awarding its staffs members after every year in which will be
checking on their performances of work in which the awards will be held at every end of the
year and will be holding appraisal to the appointed members due to their headwork .

3.05 REMUNERATION AND INCENTIVES .

Remuneration .
This is the compensation given to all the employees of the company in consideration to the
work they have done . It is a sign that the company appreciates every work done by the
employees to make the company to run .

Personnel no Salary per month Salary per annum

1. Managing Director 1 25,000 300,000

2. Sales Manager 1 20,000 240,000

3. Accountant 1 15,000 180,000

4. Head of labour 10,000 120,000

5. Receptionist 1 10,000 120,000

6. Drivers 2 18000 216,000

7. Security Guard 1 9,000 108,000

8. laboures 9 67,500 810,000

TOTAL 16 174,500 1,266,000

INCENTIVES

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This are motivational offers that are given to the employees as a way to motivate their work
done. In Hollow Pot Makers we will make dustcoats, Overrolls ,gloves , pens in which shall
be printed the company name and shall be well distributed to all workers .

LICENSE PERMITS AND BY-LAWS

The company business license permit shall be collected through the office of the county
government of Nairobi , in which will enable us to carry out our business activity legally in
the county and also to follow their rules and regulations.

3.06 SUPPORTIVE SERVICIES

This are services in which the company requires to as to run its business effectively .
This includes;

Banking services
The company will be offered it sercives with Donholm Co-operative Bank of Kenya
P.O.BOX456-100100, Nairobi .

Insurance .
The company will be offered insurance services by against any problem that may occur and
affect the company by Jubille Insurance Of Kenya .

Postal services
This will enable the company the company to get and receives mails documents sent to the
company .

CHAPTER FOUR .
PRODUCTION PLAN .
Items Quantity Capacity Make Suppliers Unit rate Total c

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 Concrete 10HP 400L Qingado Esl group 462,000 462,00
mixer
Lorry 8 Ton Isuzu General Motors 3,250,000 3,250,0

Power back- 17550kVa CAT 1,330,375 1,330,3

up generator DE50E0
[C]
Computer 1 TB HP Hp Kenya 40,000 40,000
5,082,375 5,082,3
This this are decision in where the company will take so that it improves on how it will offer
better products and services and it will be able to improve also general performance of the
company .

4.02 BUSINESS PLAN OFFICE LAYOUT .

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 security

Store Area

Parking Area

Working
Toilet Area
Area
Business Offices

4.03 Cost of Production .

Production strategy .

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This are actions in which the business takes to operate offer services and finally come up with
a final product .
Cost of Production=Cost labour+ Cost of materials+ Overhead cost .

Cost of labour

Personnel No Salary per month

Managing Director 1 25000
Sales Manager 1 20000
Accountant 1 15000
Head of labour 1 10000
Receptionist 1 10000
Drivers 2 18000
Security Guard 1 9000
laboures 9 67500

TOTAL 17 174,500

COST OF MATERIALS .

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 Item quantity Amount
Cement 700 490,000
Sand 10 lorries 150,000
Dust 12 lorries 156,000
concrete 15 lorries 300,000

TOTAL 1,096,000

OVERHEAD COST

Items Amount
Water 100,000
Electricity 30000
Fuel 75000
Telephone 68000
TOTAL 273,000

4.04 PRODUCTION PROCESS .

Hollow Pots Makers will be involved in the production of hollow pots in which are made on
the company’s working area and then are transported to the required site .

Process .
The building materials will be brought to the site .
The place of the process to be take should be clean .
STEP ONE - Proper mixtures of the materials which are sand, dust , cement and concrete in
addition of water should be well mixed up together in the right propotions .
STEP 2- Take the mixture and place them into their difffrient sizes of moulds carefully .
STEP 3 – Place the mixture out to the sun so that they can dry
up completely for about 1-2 days for them to dry up .
Store the dry hollow pots properly since they are fragile materials and they are ready for sale

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CHAPTER FIVE .

5.01 FINACIAL PLAN .

This involves the current evaluation of money and the future status of current performance
and also identifying cash in flow and out flow of the business .

5.02 PRE – OPERATIONAL COST .

This is the cost incurred before starting a business .

Items Amount
lorry 3,250,000
Equipments and 200,000
tools

Electricity 1,500
Water 2,000
salaries 174500
TOTAL 3,628,000

5.03 ESTIMATION ON WORKING CAPITAL.

This is the capital amount on which is
set a side to carry out day to day activities of the business ,
It is determined by;

Working Capital =Current Assests – Current liabilities .

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The following table below shows the estimation of working capital for the year 2019 .

Items Amount Current Liabilities Amount

Cash in hand 95,000 Creditors 126,000
Cash at Bank 196,000 loan 106,000
Debtors 39,100
Stock 500,000
TOTAL TOTAL 232,000

Working Capital = Current Assests - Current Liabilities .

830,100– 232,000 = 598,100
= Kshs.598,100

5.04 PROJECTED CASHFLOW OF THE YEAR 2023 .

Item Jan Feb Mar Apr Ma Jun Jul Au Sep Oct No Dec Tota
y g v l
Cash
in
flow
Balan - 120 180 200 150 170 130 160 210 145 175 156 1,79
ce ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 6,00
B/F 0 0 0 0 0 0 0 0 0 0 0 0
Cash 6,0 7,0 8,0 10, 8,0 6,0 900 7,0 9,0 7,0 10, 8,0 95,0
in 00 00 00 000 00 00 0 00 00 00 000 00 00
hand
Cash 20, 12, 21, 20, 15, 10, 12, 17, 18, 15, 16, 20, 196,
in 000 000 000 000 000 000 000 000 000 000 000 000 000
Bank
Debt 3,0 5,0 1,5 2,5 300 2,0 4,0 3,0 6,0 160 600 1,5 39,1
ors 00 00 00 00 0 00 00 00 00 0 0 00 00
Cash 240 240 280 240 250 280 240 210 240 250 26 280 3,01
sales ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 0,0 ,00 0,00
0 0 0 0 0 0 0 0 0 00 0 0

loan 10, 11, 10, 6,0 9,0 11, 10, 9,0 12, 13, 14, 14, 129,
000 000 000 00 00 000 000 00 000 000 000 000 000

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 Total 138 121 120 150 130 94, 148 102 111 92, 77, 116 5,26
inflo ,00 ,00 ,50 ,50 ,00 000 ,00 ,00 ,00 500 000 ,50 5,10
w 0 0 0 0 0 0 0 0 0 0
Cash
outflo
w
Purch 17, 20, 14, 25, 10, 20, 18, 12, 15, 20, 15, 11, 197,
ases 000 000 000 000 000 000 000 000 000 000 000 000 000
Salari 174 174 174 174 174 174 174 174 174 174 174 174 2,09
es ,50 ,50 ,50 ,50 ,50 ,50 ,50 ,50 ,50 ,50 ,50 ,50 4,00
0 0 0 0 0 0 0 0 0 0 0 0 0
Rent 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 180,
000 000 000 000 000 000 000 000 000 000 000 000 000
Loan 11, 8,0 9,0 10, 8,0 7,0 6,0 5,0 15, 900 10, 8,0 106,
Repa 000 00 00 000 00 00 00 00 000 0 000 00 000
ymen
t
Loan 100 100 100 100 100 100 100 100 100 100 100 100 12,0
intres 0 0 0 0 0 0 0 0 0 0 0 0 00
t
Credi 10, 6,0 9,0 15, 8,0 12, 7,0 20, 11, 10, 12, 6,0 126,
tors 000 00 00 000 00 000 00 000 000 000 000 00 000
Electr 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 18,0
icity 00 00 00 00 00 00 00 00 00 00 00 00 00
water 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 24,0
00 00 00 00 00 00 00 00 00 00 00 00 00
Total 232 228 226 244 220 233 225 231 235 233 231 219 2,75
,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 ,00 7,00
0 0 0 0 0 0 0 0 0 0 0 0 0

Net cashflow = Total Cash in flow – Total Cash out flow

5,265,100 – 2,757,000 = 2,508,100

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5.05 PRO – FORMA INCOME STATEMENT .

 Items Amount
Sales 3,010,000
Purchases - 197,000
Gross profit 2,813,000

Expenses
Loan intrest 12,000
Creditors 126,000
Electricity 18,000
Water 24,000
Salaries 2,094,000
Rent 180,000
+ = 2,454,000
Net profit before Tax 359,000

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5.06 BALANCE SHEET AS AT 31ST 2022 .

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 Assests Liabilities .
FIXED ASSESTS .
-Lorry Loan 78,000
3,045,000
TOTAL = 78,000
-Computer 40,000
-Power back –up
CURRENT LIABILITIES .
1generator 1,330,375
Creditors 126,000
-Concrete mixer
VAT 392640
462,000 TOTAL = 518,640
TOTAL =4,877,375
CURRENT
ASSESTS .
Cash in hand
82,000
Cash at Bank
186,000
Debtors +
35000
TOTAL
303,000
Owner Equity
4,583,915

Grand Total Total Liabilities 596,640

Fixed +Current Assests

= 4,877,375
+ 303,000 TOTAL =5,180,375

TOTAL 5,180,375 .

43 | P a g e TOTAL = 5,180,375
5.70 Break Even Point .

Items Amount
Fixed Cost

Salaries 2,094,000
Rent 180,000
Loan Repayment 106,000
Total + 2,380,000

Variable Costs
Electricity 18,000
Water 24,000
Purchases 197,000
Total
+ 239,000

Contribution Margin .

= Total Sales – Variable Costs

2,500,00 - 239,000
= 2,261,000

Contribution Margin Percentage .

= Contribution Margin /Sales x 100
= 2,261,000 /2,500,000 x 100 = 90.44%
Break even point = Fixed Costs / Contribution Margin
2,380,000/90.44 =
26,315.78

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 Profitability Ratio .
Preoperational Costs Ratio
= Net profit after tax/Total preoperational costs x 100
301,560/3,627,500 X100 =8.313

Current Ratio Assests

= Net profit after tax /Current Assests x 100 =
301,560/303000 X 100 = 99.54%

Long term liability ratio

= Net profit after tax /long term liabilities x 100
301,560/78,000 X 100 = 386.615%

5.80 Desired finances .

Item Amount
Preoperational Cost 3,628,000
Working Capital
- 598,100

Total 3,029,900

Proposed Capitalization

Item Amount
Longterm Liability
Loans 78,000
Owners Equity 4,583,915

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Total 4,661,915
APPENDIX
MR. OHASA AGGREY BUSINESS PLAN DOCUMENT.

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