BUSINESS PLAN

TITLE : BUSINESS PLAN

PRESENTED BY : AUSTINE OTIENO OCHIENG

INDEX NUMBER : 5521050420

PAPER NUMBER : 1305/316B

CENTRE NAME : RIFT VALLEY INSTITUTE OF SCIENCE AND

TECHNOLOGY

COURSE NAME : CRAFT CERTIFICATE IN PLUMBING

CENTRE CODE : 552105

PRESENTED TO : THE KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILLMENT FOR THE AWARD
OF CERTIFICATE IN PLUMBING

SUPERVISOR : ABIGAEL AYUKO

DATE OF PRESENTATION: JUNE 2023

 EXECUTIVE SUMMARY
This summary gives a brief description of the business plan. It helps the business management on
the prospect of the owner without going so deep into the project.
1.0. BUSINESS DESCRIPTION
The name and address of the business will be
FIRM STEEL DEALERS
P.O. BOX 30100-0010
ELDORET
TEL: 0110427733
E mail – firmsteel@dealers.com
The business will be located in Eldoret town in Eldoret East District along Eldoret-Nairobi
highway. It will be managed as a sole proprietorship with the main objective of making
profit. This is aimed at improving the living standards of the community in the region and
around Eldoret East district by creating some job opportunities to the individuals who will be
employed at the business to help in managing and running of the business.

2.0. OPPORTUNITY AND ENTRY.

The products offered by firm steel dealers will be readily available all times that customers
may be in need of them. The operating hours of the business shall be: from 7.00am-6.30pm
all week days and from 8.30am-4.30pm weekends. The lunch breaks will be from as from
12.30pm-1.30pm. The rules and regulations affecting the operation will be trade license act
(cap 47) of commerce. For entry in the market; advertisement will be done through radios,
posters and through giving such things like caps to the people.
The existence of some related business in the area may result in competition thus this may be
overcome by providing good services to customers to attract more people to buy these goods
from the business

3.0. TARGET MARKET

The potential customers will be those living around Annex and the upcoming structures and
building who are in need of steel materials to put up and maintain structures from steel
dealers has 30% compared to other related businesses in the area. The management of the
business is working up and down to ensure that the business capture more customers in the
area.

4.0. COMPETITIVE ADVANTAGE

The major competitor to the business is Royal millers which covers about 32% but since the
firm steel dealers is still new in the market and according to the plan put down it will work to
 ensure that it emerges the best of all the competitors in the region. Firm steel dealers also has
an advantage that the business is located along the main highway. This therefore gives easy
entry and exit of customers. Firm steel dealers also gives transport to those who buy goods in
bulk which is not applicable to other competitors.

Name of Strength Weakness Opportunity Threat

business
Royal millers Stable Credibility More of the Less profit
financially creditors
Khan Hardware Already in Expensive Known in the Losing
market market customers
TMT dealers Already in Expensive Known in Less profit
market market
Firm steel Trained New in the Capturing many Realizing more
Dealers personnel market customers profit

5.0. MANAGEMENT TEAM

Since the business is sole proprietorship the final decision is made by the owner after
consulting from various people to ensure that the decision reached at is vivid and can help in
running of the business. The business will have a total of 8 employees comprising of the
manager who is the overall person in the business. The employees shall remain constant over
the first 3 years in which the business is introduced into the market.
6.0. FINANCIAL PLAN
The following are the sources of finance for the business
i. Owners’ equity – 11,300,000
ii. Family contribution 489,350
Total 11,789,350

7.0. OVERAL SCHEDULE

The operating time shall be as follows
Day/time
Monday- Friday 7.00am-12.30pm and 1.30pm-6.30pm working hours
Saturday &Sunday 8.30am-4.30pm working hours
8.0. CRITICAL RISKS
Problems incurred by direct selling are:-
i) One has to cope with rude customers
 ii) Some customers even after buying less goods would want to be offered transport hence
may lead to more expenditure
iii) Some employees may not have good communication with the customers

The solution to these problems is that workers should be trained and the managing director
should ensure that there is good relationship between all workers.