BUSINESS PLAN

LEONE TECH AND ELECTRONIC SHO P

DOCUMENT : BUSINESS PLAN

INDEX NUMBER : 6101010059

PRESENTER : LEONE OKUMU OMOLLO

CO LLEGE :BUNYALA TVC

COURSE : ELECTRICAL ENGINEERING

PRESENTED TO KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL FULFILLMENT

FORAWARD TO CRAFT ELECTRICAL AND ELECTRONIC ENGINEERING

DATE OF PRESENTATION: JULY SERIES

CANDIDATES NAME : LEONE OKUMU OMOLLO

DATE : 20 / 4 / 2022

NAME O F SUPERVISOR : REENAH AJIAMBO

SIGNATURE :

APPROVAL DATE :

SUBMISSION OF BUSINESS PLAN IN PARTIAL FULLFILLMENT OF CRAFT IN ELECTRICAL AND

ELECTRONIC SENGINEERING.
EXC UTIVESUMMARY

1. Bus ine s s name

The name of the business will be dynasty electronic company

It will be located in Busia along busia-Kisumu Road.

It`s addressis P.O.BOX532 BUSIA emal leoneomollo@gmail.com

It’s a sole propriatorship

MARKETING PLAN

The customers will be with in the area and across the country,retailers and consumers.

2.1 market share

The business is under soleproprietor,it means the intiatoris under insuarance and has timetable of money in and out.

2.2 competition

It has acompetition such as mwenda pole electronic,JBentreprice.

2.3 advertising and promotion

It has asocial media platform that is used to display material and their prices.

Discount will be offered on material purchased.

2.4Distribution

The good will be delivered on door to door basis

3.ORGANIZATIONALPLAN
It will be under manager,finane manager,sale manager,cashier.

The manager should have a diploma in electrical engineering . the least worker should have atleast certificate on the same area of study.

The company will be recruiting people basing on the above qualification.

The company will be under government policy where it will be lisenced.

4.OPERATIONAL PLAN

The business will be operating from monday to surtarday as from 6AM to 10PM

5.FINANCIAL PLAN.

The business needs 2.6 Mostartandran.

CHAPTER1.

BUSINESS DESCRIPTION

1.1 Business name.

The business is to be named Dynasty electronic company because the owner is into the business and isr ready to help many retailers on getting goods that they have to sell.The name
was chosen due to retailer hard time in getting the product to their shops.
The company will attract customer sand retailers since it has reduce travelling cost and it brings quality goods at price where retailers and consumers can afford.

1.2 Businesrs location and address.

The business is to be located in sokom jinga whichis along Busia-Kisumu highway.
The reason for choosing these business location is due to easy transportation , network communication is not a problem.
 The security a round that place is reliable.
The address of the place is P.O.BOX 532 BUSIA [K].
Email:leoneomollo@gmail.com
Phone number:0793935558

1.3 Form of ownership.

It will be a sole proprietorship form a business where the initiat or will enjoy the profit and loss alone and also the decision maker of the business and not forgetting on how to manage
the time.
The initiat or has worked in three and more companies hence the work put on ground is well familiar about it and is ready to encounter all the ups and down of the business.
The business will be opened at 6AM and close at 1OPM.
The company contain 10 workers plus one cleaner.

1.4 Type of business.

The business is under well programmed finance that will support the company for 5years for it to best able and well known.
The employees will be both skilled and unskilled thus helping the business in smooth running of activities.

1.5 Product and services.

The product are to be sold at affordable price.There will be a notice earlier if there is changes is product prices and there will be no fluctuation of prices since they are first quality and
also first hand delivery.
The product will be high quality capacitor , resistors ,PVC ,trunking, switch, sockets and e.t.c.

1.6 Justification of opportunity.

The business is variable since its on BUSIA–KISUMU Highway.
The company product are to be given at agood price that will favour class of people.

1.7 Industry.
Dynasty company falls under secondary industry of electronics thus receiving goods from manufactured industry since it offers ready made goods.

1.8 Goal so the business.

The company is to provide effective services to its customers while also improving the standard of living to its employees.
It also creat self employment to all the trainees and workers who will be learning in the firm education to the youth who are willing to train.

1.9 Entry strategy.

The proposed business will be highly targeting to improve and succeed the marketing field.
The customers targeted are individuals, schools, hospitals due to demand in marketing since people in the field are tending to forget.
It will also be giving discount depending on how the
 CHAPTER2.

MARKETING PLAN.

Customers.

The customers of the business will be the customers, retailers, schools, hospitals and people around and far.

The business will also have some of there quest since the business will be writing request to different institution so as to supply and also install electricity when needed.

The customers will be from different background

Market share

The proposed business will have 50% of demand for the services and goods.

The figure bellow shows a piechart on how the business will be targeting its potential customerse. product and services that will be sold and their demand.

A:PRIVATE OFFICE

B : lNSTITUTION

C: COUNTY GOERNMENT.

A
B
C
Competition.

The business has acompetition such as mwenda pole electronics, jB enterprise.

JB has ahigh strength in the business where it is well known and it has been giving services for many years there foregaining popularity.

Its weakness is that the worker sarelazy and is located where there is poor transportation.

Mwenda pole electronics is huge and work veryfast,they offer discount and promotions.There weakness is that are not skilled and other rare trainees hence not familiar with sells and marketing.

They do small task that bring about poor conductivity on workdone.

Advertising and marketing

The company has social mediaplatforms which is used to market materials,it also hasmainstream,printingmediae.gmagazinesandnewspapers.
Discountwillbemadeonproductpurchased.
Workersgoingtothefieldforinstallationanddeliver ywillweart-shirtswiththecompany’slogo.

Pricing strategy.
Theproductwillbeatanaffordablepricewhereallcustomersareservedequally.
Incaseofchangeinpricethecustomerswillgetanupdateimmediatelyinthenewspaper,socialmediaandpostersbeforethechangeismade.
ThepromotionwillbedonebythepeoplelivinginBusiasoastopreparethempsychologicallyforthebusinessabouttostartinthecommunity.

Salestactics.
Thebusinesswillofferdiscountongoodpurchased.
Thebusinesswillhaveonlinemarketingwherecustomerswillbeabletoordergoodsandbeabletohavethemwithinashortperiodoftime.
Thebusinesswillsellgoodsdirecttoconsumers,institutionsandevenofferdeliveryservices.
Therewillalsobedoortodoordelivery.

Distribution strategy.
Goods/productswillbedistributedtocustomersandinstitutionsatasmallfee.
Therewillbedoortodoordeliverywiththecompany’svehicledependingonquantityoftheproductspurchased.

CHAPTER3.
ORGANIZATIONAL PLAN.
i).Organizationalstructure.
 MANAGER

FINANCE LAISON OFFICER

SALES MANAGER CASHIER DRIVER SECURITY CLEANER

ii).Key management personel.

a) Managerduties.
Over seeing the business s.
Hiring and firing the workers .
making final decision .

b).Financial manager duties.

Recording thei in flow and out flow of the money.
Reporting all financial reportst othe manager.

c).Liason officer
Co-ordinate the surbodinate staff.
Play arole as the surpervisor in the business.

Qualifications.

a)MANAGER.

Well versed in sales and marketing and also has done diploma in electrical engineering.
Should have 3year experience in electrical marketing.

b)FINANCIAL MANAGER.

Adiplomain accounting.
2 years experience in the field.

c)LIASON OFFICER.
 Diplomain business management

d).OTHER PERSONEL.

Duties Qualifications.
Cleaning of the premises : Good teamwork.
Electrician: Certificate in electrical.
Advertising of the business: form four leaver.
Taking care of the business: good communicationskills.

III).RECRUITMENT TRAINING AND PROMOTION.

Theadvertisementwillbemadebeforethestartofthebusinessonemonthearlier.

Afterthefeedbacktheapplicantwillbeshortlistedandbegiventhedateoftheinterview.

Aftersomeperiodtheywillbecalledandstarttrainingbasedontheapplicantfieldofstudyandlunchwillbeprovided.

Themanagerwillfollowuponhowtheemployeearedoingtheirworkanditsthroughthefollowupthattheywillbegivenpromotion.

IV).REMUNERATIONANDINCENTIVES.

JOBTITLE SALARY ALLOWENCES TAX10% NETPAY GROSSPAY

Manager 30000 3000 3300 26700 33000
Financemanager 25000 3000 2800 22200 28000
Liasonofficer 18000 2000 2000 16000 20000
Sellsmanager 15000 1500 1650 13350 16500
Cashier 12000 1500 1350 10650 13500
Sellsperson 10000 1000 1000 9000 11000
Driver 10000 1000 1000 9000 11000
Security 10000 1000 1000 9000 11000
Cleaner 10000 1000 1000 9000 11000
Installer 16000 1000 1760 14400 17600

Theabovetablerepresentthejobtitleofpersonsoperatingwithinthecompanyandtheirsalary,allowance,grosspay,taxesandnetpayrespectively.
V)LICENCEPERMITBYLAW.

The company
willrequireatradelicenceofsh.2000,themoneywillbeobtainedfromthebusinessapartfromthefirst2months.Thetradelicencewillbeobtainedfromthecountygovernmentofficesundertrademanagement.Itwill
havelawwhichwillgoverntherunningbusinesse.gputtingonadustcoatfortheinstaller,cleaner,sellperson.numberofdrugsordrinkingduringworkinghours,gooddressingmodeandpantualityinreportingtime.

VI).SUPPORT SERVICES.

The company will have legal document forfunctuality.

Alicenseisalegal document giving official permission to do abusiness.

Permitis to allow something to happen.

The support service of the company shall rely on all government legal forms and permits.

The company will follow alllegal form so fownershipinessenceorI,e

a).insuarance.

b).banking services.

c).government policy.

The business shall use Kenya commercial bank (KCB)to carry out all the business finances to both staff and customers.

CHAPTER4.

OPERATIONAL PLAN.

Operational facilities and equipment.

The company will require at seller used by the financial manager.

It will also require CCTV and also two computers.

Dynasty electronic company will have avehicle which will be used as a carrier for goods or equipment for door to door delivery.

MACHINEOREQUIPMENT NUMBER COST TOTAL

CCTV 3 2000 6000
Computer 2 15000 30000
Toyotahillax 1 750000 750000
Teller 1 15000 15000
TOTAL 782,000 801000

PRODUCTION STRATEGY.

MATERIAL NUMBER COST TOTAL

Singlesocket 40 130 5200
Doublesockets 30 190 5700
2gangswitch 50 150 7500
1gangswitch 50 150 7500
Intermediateswitch 50 150 7500
Doublepole 15 500 9000
CCU 20 1500 30000
Mks 200 50 10000
Patrays 200 50 10000
4.5wire(red) 2ROLLS @12000 24000
4.5wire(black) 2ROLLS @12000 24000
4.5wire(yellow) 2ROLLS @12000 24000
2.5wire(red) 5ROLLS @9000 45000
2.5wire(black) 5ROLLS @9000 45000

2.5wire(yellow) 5ROLLS @9000 45000

1.5wire(red) 5ROLLS @8000 40000

1.5wire(black) 5ROLLS @8000 40000

1.5wire(yellow) 5ROLLS @8000 40000

Heavygaugepipe 70PIPES @90 6300

Lightgaugepipe 70PIPES @70 4900

Trunking 50 @120 6000

Metrebox 10 @500 5000

Cutout 10 @500 5000

Circuitbreaker15A 20 @200 4000

Circuitbreaker32A 20 @200 4000

Circuitbreaker5A 20 @200 4000

Circuitbreaker10A 20 @200 4000

TOTAL 462,600

Labour cost will add upto 20,000

Other material cost will add upto 500,000.

OVERHEAD COST
RENT 120000
INSUARANCE 12000
ELECTRICITYBILLS 20000
TELEPHONECHARGES 6000
TOTAL 158,000

Material cost + labour cost + overhead = total cost

962,600+200000+158,000=1,320,600
TOTAL SALES – TOTAL COST = NET PROFIT.

962600=100%

110%=110x962600

100=1,058,860.

Totalsales=1,058,860

Totalcost=962,600.

Netprofit=1,058,860-962,600=96,260

DESCRIBE THE PRODUCTION PROCESS.

The business will handle activities that will always be ongoing.

All services needed will be handled by skilled personel.

Customers will receive their services according on how it should bedelivered.

All customers will be treated the same nomata what they purchase.

TYPEOFREGULATIONS COST
Labourlaw 100,000
Environment 75000
Safety 15000
Tradeact 12000
Total 202,000
CHAPTER5

PRE-OPERATIONALCOST.

Expenses Cost
Overheadproduction 15000
Labour 200000
Tax 50000
Total expenditure 275,000

DYNASTY ELECTRONIC COMPANY WORKING CAPITAL FOR THE YEAR ENDED 2021.

CurrentAsset Sh.
Cashinhand 10000
Cashatbank 30000
Deptors 20000

Pre-payment 20000

TOTAL 80,000

CurrentLiability Sh.
Craditors 3000
Shorttermloans 90000
Unpaidbills 5000
TOTAL 18,000

Networkingcapital=currentasset–currentliability.

=80000-18000=62000.
 PREPARATION OF CASH FLOW STATEMENT.

CASH FLOW JAN,FEB,MAR,APR,MAY,JUN,JULY,AUG,SEP,OCT,NOV,DEC.

CASHINFLOW JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC TOTAL
CASHSALES 40000 90000 80000 50000 70000 20000 20000 30000 10000 15000 100000 120000 645000
CASHINHAND 20000 40000 50000 20000 100000 5000 25000 80000 50000 15000 30000 45000 460000
CASHATBANK 50000 45000 100000 20000 15000 80000 75000 30000 25000 10000 90000 20000 560000
LOANS 200000         150000       100000     450000
DONATIONS     100000           200000       300000
DEPTORS 189000   50000 18000 20000 80000 15000 10000 15000 20000 70000 10000 458000
TOTALINFLOW 490000 175000 380000 108000 205000 335000 135000 150000 280000 160000 290000 195000 2,903,000
CASHOUTFLOW                          
PURCHASES 100000         200000   50000   10000 30000 40000 430000
CREDITORS             150000     10000   50000 210000
LOANREPAYMENT 300000       20000       70000       390000
ELECTRICITY 1500   5000   1500   1500   6000     15OO 15000
RENT           80000           80000 160000
WATERBILLS 2000     1000       1500     500   5000
TOTAL                         1,210,000

PREPARATION OF PROFORMAIN COME STATEMENT AND BALANCE SHEET.

DYNASTY ELECTRONIC COMPANY PROFORMAIN COME STATEMENT FOR THE YEAR ENDED 2021.

PARTICULAR 2021
SALES 405900
LOSSCOSTOFSALES 329000
GROSSPROFIT 76900

PARTICULAR 2021
SALARYWAGES 139300
WATERBILLS 5000
TOTALCASHOUTFLOW 1,210,000

NETPROFITBEFORETAX 1,693,000

PROVISIONFORTAX10% 169,300

NETPROFITAFTERTAX 1,523,700

PROFORMER BALANCE SHEET.

ASSETS SH. LIABILITY SH.

EQUIPMENT 429,300 CAPITAL 800,000
PREMISES 400,000 ADDNETPROFIT 169,300
CASHINHAND 460,000 CREDITORS 210,000
DEPTORS 458,000
TOTAL 1,747,300 1,179,300

BREAKEVENPOINT.

FIXEDCOST SH.
SALARYWAGES 139,300
RENT 160,000
LICENCEPERMIT 5,000
TOTAL 304,300

VARIABLECOST SH.
COSTOFSALES 10,000
WATERBILLS 5000
ELECTRICITYBILLS 15000
TELEPHONEBILLS 6,000
TOTAL 36,000

Breakevenpoint=Fixedcost.

100%-(variablecostx100)

Sales.

304,300-36,000x100

10010,000

=2,683.

DESIRED FINANSING.

Pre-operationalcost 275,000

Workingcapital1000

Fixedasset304,300

TOTAL580,300

PROPOSED CAPITALIZATION.

ITEM COSTS
OWNERKCB 1,000,000
FRIENDSDONATION 800,000
LOANS 450,000
DONATION 300,000
TOTAL 2,550,000