BUSINESS PLAN

BRIAN BENCH TOP HARDWARE

P.O BOX 9 KERINGET

Email: brotich815@gmail.com
TITLE : BUSINESS PLAN

PRESENTER : BRIAN KIPKURUI

INDEX NO :

CENTRE NAME : RIFT VALLEY INSTITUTE OF SCIENCE AND

TECHNOLOGY

CENTRE CODE : 552105

COURSE : CERTIFICATE IN SCIENCE LABORATORY

TECHNOLOGY

PAPER NO :

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL

PARTIAL FULFILMENT FOR THE AWARD OF

CERTIFICATE IN SCIENCE LAORATORY

TECHNOLOGY

SUPERVISOR : MRS. ABIGAEL AYUKO

EXAM SERIES : JUNE /JULY 2023

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 TABLE OF CONTENT

Contents Page
DECLARATION......................................................................................................................................i

DEDICATION.........................................................................................................................................ii

ACKNOWLEDGEMENT......................................................................................................................iii

EXECUTIVE SUMMARY........................................................................................................................iv

CHAPTER ONE..........................................................................................................................................1

1.0 BUSINESS DESCRIPTION..................................................................................................................1

1.1 BACKGROUND INFORMATION......................................................................................................1

1.4 MISSION AND VISION.......................................................................................................................2

1.5 FORMS OF BUSINESS OWNERSHIP................................................................................................2

1.6 TYPE OF THE BUSINESS...................................................................................................................2

1.7 PRODUCT AND SERVICES...............................................................................................................2

1.8 JUSTIFICATION OF THE OPPORTUNITIES....................................................................................3

1.9 THE INDUSTRY..................................................................................................................................3

1.10 GOALS OF THE BUSINESS.............................................................................................................3

1.11 ENTRY AND GROWTH STRATEGIES...........................................................................................4

1.11.1 ENTRY STRATEGY.......................................................................................................................4

1.11.2 GROWTH STRATEGY...................................................................................................................4

CHAPTER TWO.........................................................................................................................................5

2.0 MARKETING PLAN............................................................................................................................5

2.1 CUSTOMERS.......................................................................................................................................5

2.2 MARKET SHARES..............................................................................................................................5

2.2.1 MARKET SHARES BEFORE PENETRATION...........................................................................5

2.2. 2 MARKET SHARES AFTER PENETRATION.............................................................................6

2.3 COMPETITIONS..................................................................................................................................7

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2.4 METHOD OF PROMOTION AND ADVERTISEMENT....................................................................7

2.4.2 ADVERTISEMENT...........................................................................................................................8

2.5 PRICING STRATEGY.........................................................................................................................8

2.6 SALES TACTIC...................................................................................................................................9

2.7 DISTRIBUTION STRATEGY..............................................................................................................9

CHAPTER THREE...................................................................................................................................10

3.0 ORGANIZATION AND MANAGEMENT........................................................................................10

3.1 ORGANISATION STRUCTURE.......................................................................................................10

3.2 KEY MANAGEMENT PERSONNEL NUMBER AND TITLES......................................................11

3.4 RECRUITMENT TRAINING AND PROMOTION...........................................................................13

3.5 RENUMERATION AND INCENTIVES............................................................................................13

3.6 LICENCE PERMIT AND BI-LO LEGAL REQUIREMENTS...........................................................14

CHAPTER FOUR.....................................................................................................................................17

4.0 PRODUCTION AND OPERATIONAL PLAN..................................................................................17

4.1 PRODUCTION DESIGN AND DEVELOPMENT............................................................................17

4.1.1 PRODUCT DEVELOPMENT PRODUCT DEVELOPMENT........................................................17

4.1.2 QUALITY CONDITION MEASURES...........................................................................................18

4.2 PRODUCTS FACILITIES AND CAPACITIES.................................................................................18

4.2.1 PRODUCT FACILITIES.................................................................................................................18

4.2.2 MAINTENANCE AND REPAIR OF EQUIPMENT.......................................................................18

4.3 PRODUCTION STRATEGY..............................................................................................................18

4.4 OPERATIONAL /PRODUCTION PROCESS....................................................................................19

4.5 GOVERMENT REGULATION AFFECTING OPERATION............................................................20

CHAPTER FIVE.......................................................................................................................................21

5.0 FINANCIAL PLAN............................................................................................................................21

5.1 PRE OPERATIONAL COST..............................................................................................................21

5.2 ESTIMATION OF WORKING CAPITAL.........................................................................................21

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5.3 PREPARATION OF CASH FLOW PROTECTION...........................................................................22

5.4 PRO FORMA INCOME STATEMENTS...........................................................................................23

5.5 PREPARATIONS OF PERFORMER INCOME STATEMENT AND BALANCE SHEET..............23

5.6 CALCULATIONS OF BREAK-EVEN POINT..................................................................................24

5.7 CALCULATIONS EXPECTED OF PROFITABILITY RATIO........................................................25

5.8 DESIRED FINANCE..........................................................................................................................25

5.9 PROPOSED CAPITALIZATION.......................................................................................................25

REFERENCE................................................................................................................................................26

APPENDIX 1 BUSINESS LAYOUT MAP..............................................................................................27

APENDIX II BUSINESS LAYOUT.........................................................................................................28

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DECLARATION
I hereby declare that this prepared work is more through experience, participation and inventions
and therefore submit the business plan to Kenya National Examination Council for award of
academic qualification certificate in science laboratory technology.

CANDIDATE NAME : BRIAN KIPKURUI

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

SUPERVISOR NAME : MADAM ABIGAEL

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

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DEDICATION
I would like to dedicate this business plan to my beloved parents and the whole family for their
financial support and my entire classmate for support and their co-operation they gave towards
the research and information concerning the business.
May almighty God bless them.

ACKNOWLEDGEMENT
I wish to extend my gratitude’s to the following for their assistance in the course of writing this
business plan. First I thank all the personnel that the research was conducted and special thanks
goes to them for providing me with the information and my parents for seeing me through all

6
financial support. Sincere thanks to my supervisor for advising and correcting me on this
business plan.
May God bless them all.

EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
This is a general description which gives a detailed introduction of business. This chapter entails
the nature of the business it's location from ownership the type of the business product and
services such as the justification of opportunities the industry, business goals and the entry and
Growth strategies that proprietor has in plan to help in business plan to be during an entry into
the market.
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2.0 MARKETING PLAN
This chapter entails the marketing plan. It describes how the business intends to sell the products
or offer it services for the business now to have significant success and wide market. it should
advertise its products and services to the member of the public this is necessary competitors
which are competing with.

3.0 ORGANIZATION
the business will be under assistance of 7 people who will have to be empowered on skills
experience and knowledge to embark on carrying out the business plan people that will guard
ways of motivating such employees will depends on if they will be competent in their duties the
owner will ensure availability of support services.

4.0 OPERATIONAL PLAN

The required materials needed for the operation of the business will include shelves, receipts
books, calculators, fire extinguisher and dust coat which are white in colour for the workers,
especially in shift attendants. The business will be using a lorry as a means of transport for
supply goods in an act of business and the operational process.

5.0 FINANCIAL PLANS

The financial plan will give an overview of the cost to be involved in the initial stage of the
business operation which will be obtain from relatives friends well-wishers savings and the bank.
They will contribute as follows
Relatives 50,000
Savings 50,000
Bank 100,000
Total 200000
Total capital will be 20,000 Kenya Shillings. It will be all the financial transactions and the
business performance for the first one and that have year of the business on implementation this
will make the customers have ample time and feels comfortable to visit the business at any time
of the day.

CHAPTER ONE

1.0 BUSINESS DESCRIPTION

The kind of business is a sole proprietorship which will be owned and managed by Brian
kipkurui the business will be dealing with sale and supply of bench tops the owner is a form four
leaver is a form four graduate and undertaking across in science laboratory technology the
business name will be Brian laboratory bench top hardware .
The address will be PO Box 8700 20200 Kericho this type of business will be wholesale because
of adequate market in the area and will be opening under automobile industry

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The business will set goals and objectives to enable the business stay ahead of its computer and it
will be offering good services the business will attain its legal operation by applying for license
permit and by-laws to govern the business insurance will also be provided to the business it will
also consider production facilities and capacity that production strategy appendix will be
indicated clearly to be accessed by customers without strain

1.1 BACKGROUND INFORMATION

I the owner of the business Brian Kipkurui aged 23 yrs old . I was born in the 1999 in kericho
county ,kericho west sub county, sigowet /soin constituency , sigowet ward kebeneti location
kiptenden village where I grew up and life up to date .
I started education journey where joined kapkores primary school in belgut constituency in the
2004-2016 where I sat for kcpe and scored a total marks of 287 and then I proceeded to
secondary education where I joined Keringet Boys in keringet constituency where I sat for kcse
in 2019 .
Before I joined college in year 2021 september , I was employed and worked as an assistant for 2
years . During this period I got inspired and motivated to start my own hardware furniture and
also through experience I got skills on how to run the business .
In the year 2021 , I joined Rift Valley Institute of Science and Technology to pursue a two year
training in science laboratory where I will complete in November 2023 .
Am now planning to start my own Hardware of making and preparing Bench Tops after getting
skills on how the bench tops should be . Due to lack of good Bench Tops which lead to customer
unsatisfaction I decided to start this business to satisfy and treat fairly and adequately through
fair pricing and provision of good and quality materials for bench tops which are durable and
long lasting also due to ready market motivated me on starting the business and good security .

1.2 NATURE OF THE BUSINESS

The business will start after completion of my course on 25th November 2023. My business will
be located at Kericho – Nakuru highway near Mauritius circle in Kiptere Kericho County. The
major activities that my business will offer is to sell and supply sinks and taps. The main agenda
for establishing the business is to be able to supply materials to schools Laboratories and
hospitals.

1.3 BUSINESS LOCATION AND INDUSTRY

1.3 BUSINESS LOCATION
The business will be located at Kericho Nakuru road opposite mali mali shop next to kapsoit
sondu kapsoit road . After a thorough assessment with the area, are fine and promising views was
achieved that shows the site is ideal for the business due to means of transport, communication
and security.

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JOSKI
HARDWARE
 KAPSOIT

1.3.2 Business address

BRIAN BENCH TOP HARDWARE
P. O box 556
Kericho
Email address brotich815@gmail.com
Tel no. 0726598246

1.4 MISSION AND VISION

1.4 .1 vision
The vision of the business is to earth most customer-centric company. To create a better
everyday life for many people for customers but also for our work co-workers and the people
who work at our supplies.
1.42 missions

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 Being a key resource in sells supply of bench tops we work closely with other department and
industry nearby Kericho town to provide training and manufacture of laboratory products to
provide relevant education and meaningful technical services.
1.5 FORMS OF BUSINESS OWNERSHIP
The business will be sole proprietor. Is deal with sales and supply of bench tops . The sole
proprietor receives products from the companies at agreed price utensils to the customers.
Business start at 7:00 a.m. to 9:00 p.m. From Monday to Saturday. The business shop is well
stocked with all kind of laboratory sink and taps. Some of the employees are employed so as to
give assistance to her in the business work. The employee and the owner can make their business
grow well or expand quickly hence getting more profits.

1.6 TYPE OF THE BUSINESS

The business is likely a trading business because it is concerned with all types of laboratories
bench tops for selling bench tops and their fitting. The owner may go out for the marketing of
these laboratory bench tops while employee continues with work in the shop. The owner
receives products from companies that are wholesale at agreed price then sells to the customers.

1.7 PRODUCT AND SERVICES

The product available in the shop is bench tops , taps and their fitting. The product is of high
quality and affordable. Different product have their price tag in order to motivates customers, gift
are given to those who buy high quantity of the product.

1.7.1 Product descriptions

The product available in the shop is bench tops and their fitting. The products are of high quality
and affordable. Different products have their price tags in order to motivate customers gifts are
given to those who buy high quality of the product.

1.7.2 Services
The services in the business are offering good bench tops and taps. This customers are able to
get their goods services because they are getting their satisfaction and well usage of language to
them.

1.8 JUSTIFICATION OF THE OPPORTUNITIES

The reason for choosing this business is highly profitable it is locations within the town will
targets most important customers living within the town and outside town due to high demand of
bench tops and taps there is also less competition. The owner started this laboratories and turf
supply business in a towel because of good means of transport and many schools and college
around the town. Do it is somehow competitive but not really some have started the same
suppliers and tabs but they are not succeeding well because of less knowledge and skills of
manufacturing comma installation and supply. Also lack of all planning before commencing of
the business.
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 The owner also intends to attend retreat and seminars in order to know how to handle customers
due to change of technology. The owner also meat price of product as required by distribution or
direct price control from prospect distributors. The town has good structure like roads and
electricity and telecommunication lines which will enable telecommunications services and his
transportation of the product to the customers.

1.9 THE INDUSTRY

The business will be under manufacturing industry
1.9.1 Industry character
As of the fast-growing industry the owner wants to take advantage of the growth of the
government institution to install and supply bench tops and taps to do different institutions
country.
1.9.2 Industry future
when it comes to responsible sales of laboratory bench tops and taps our members are fully
cooperative for measures to help raise the general standard of training and will often go much
further to ensure they are operating the highest standard with regards to the retails of products.
1.9.3 Industry trend
Modern technology used by industry in handling of equipments is closely monitored by the
Kenya bureau of standards. The industry is average in the market.
1.9.4 Industry size
The industry is average and is performing well in the market the business is likely to proceed in
the industry because of the measures that the government has taken in place.

1.10 GOALS OF THE BUSINESS

The business will be classified as trade industry which is under Kenya association
manufacturing of laboratory bench tops and tabs because it will be dealing with manufacturing,
buying selling and supply of laboratory bench tops and taps which will be sold to an institution
and people. The industry will be using the latest form of technology the size of business will be
medium size and the number of employees will be trained and a path where they will be paid
according to their position where buy the monthly income will increase as time goes. The
industry will also welcome anyone who is committed to work to increase profitability

1.10.1 Short-term goals

Short terms goals are as follows
Profit: the main intention of starting of starting this business was to earn income
Implement monthly giveaways for customers on social media.
Self employment the need to enter into this proposed business was to become self reliance.
Increase product price by 3% over the next naked women 3 months
1.10.2 Long-term goals
The long term goals are as follows

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 1. To expand the business the proposed business will intended to expand its branches within the
two countries
2. Purchasing of vehicles which will be used in transporting laboratory bench tops and taps to
where it is wanted to be transported to
3. Buying of large piece of land for the building of large shop where business can be operated.
4. Increase the total income of your company by 10% over the next two years
5. Increase overall brand awareness

1.11 ENTRY AND GROWTH STRATEGIES

The proposed business is well advertised in everywhere through posters, radio station and
televisions. It has been offering good price to the customers and providing good quality of
product hence bringing more customers.

1.11.1 ENTRY STRATEGY

The proposed business has come up with good and quality bench tops and taps that is through
only advertisement and availability of all kinds of laboratory bench tops and taps with their
fittings. Also the services to our customers are good and act has launched where there is
availability of customers.

1.11.2 GROWTH STRATEGY

The business has given out enough discounts to their customers and traders of their products.
Also there is credit given out of some transaction. This can attract many customers hence the
business is run smoothly day by day. It also provide for debts, good price of the product. The
labour is flexible to their work and well skilled. They have knowledge on how to work out or
scan the business. This improvement leads to opening of other branches.

CHAPTER TWO

2.0 MARKETING PLAN

The major customers will be people living within town and outsider. The owner will advertise
their business through posters, signpost, newspapers, radios and Tvs. It will offer a unique
opportunity for productive discount between employee and leaders of an organization and also
provide good communication within the company. The market plan will allow the market team
to examine their post decision and understand their results in order to better prepare for the
future. It also left the marketing team to observe and study the environment they are operating in.

2.1 CUSTOMERS
The potential customers are in different classes namely
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 Public customers
Local institutions
(A) Public customers include
1. Business person within Kericho and outside Kericho town.
2. Individuals these are people who come and buy laboratory signs and that for their own like
those that need to install it on kitchen and bathrooms.
(b) Local institution
This is include school around and within Kericho town that may require a laboratory bench tops
and taps so as to use in their schools laboratory to perform a general cleanliness to operate.

2.2 MARKET SHARES

Population in the town and nearby areas is general high and new premises are build since there
is no much competition the number of customers is expected to increase. The owner of the
business would carry out investigation on the information from customers and asking questions
full stop the owner directs the information on how products work and inform the customer
inform the product in business.

2.2.1 MARKET SHARES BEFORE PENETRATION

Kipla Mauzo Kilel Brian

Sales 50000 20000 30000 100000

Market shares 50 % 20% 30% 100%

Kipla= 50/100 x 360 Mauzo =20/100 x 360 Kilel=30/100 x 360 TOTAL = 100/100X360
= 1800 =720 =1080 =3600

KEY
1080
Kipla
1800
Mauzo
Kilel

720

2.2. 2 MARKET SHARES AFTER PENETRATION

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 Kipla Mauzo Kilel Brian Total

Sales 10000 20000 30000 40000 100000

Market 10 % 20% 30% 40 100%
shares

Kipla = 10/100x360 Mauzo =20/100x360 Kilel=30/100x360 Brian = 40/100X360

=100/100x360
= 360 =720 =1080 =1440 = 3600

360
KEY
KIPLA
1440
720
MAUZO

KILEL

BRIAN

1080

2.3 COMPETITIONS
at the start the business fails on competition due to the fact that advertisement mean was not
employed after the business was brought to life the deliver products from wholesalers who has
improved and encourage. Brian laboratory bench tops and taps supply to employee
entrepreneurship skill personnel and sells quality products at affordable price.
Within trading centre of Nakuru from where they will be three other major companies who will
give competition to my proposed business the list is laboratory bench tops and taps. These
include the plan laboratory bench tops and Mauzo taps sink and taps supply any Kilel neighbor
algorithm and tap Kipla supply.
NAME STRENGHTS WEAKNESS
Kipla laboratory -good management skills Poor quality v goods
Sinks and taps supply Know customers needs Don’t offers sales services
Quick services Poor pricing policy
Offers discounts after sales services Face financial problems
No accommodation
Mauzo laboratory Well known in the area High prices
sinks and taps supply Had an already existing business Very slow in production
Trained staff Lack of enough manpower
Provide accommodation Poor pricing policy
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 Cannot be notified easily
Kilel laboratory Sales are relatively cheap Poor motivation to employees
Sinks and taps supply Large scale for services No accommodation
Quick services and production Cannot be notified easily
Face financial problems
Brian laboratory sinks Sales are relatively cheap Face financial problems
and taps supplies Well trained staff Poor pricing policy
Trained staff
good management skills
Know customers needs
Quick services and production
Good management skills
Provides after sale services
Sales different varieties of products
Offers free gift to customers

2.4 METHOD OF PROMOTION AND ADVERTISEMENT

2.4.1 Promotion
Promotion creates more awareness of the business. There are various methods that solicitors
laboratory bench tops and taps supply will employ to catch the attention of the customers. This
is when the business has sells good of high-quality to customers of over 3,000 in sales promotion
trade exception there will be free cliff and printed books which car drawing of objects. The
business will also offer free services by delivering some product to the customer. The business
will measure the effectiveness of the promotion campaign its customer will come and buy more
products.

2.4.2 ADVERTISEMENT
Advertising about a business can help in successful of the business. Also helps the customers to
know what kind of the business location of the business and type of products being sold. The
product will be advertise using print media sign board posters electronic media and radios
PRINT MEDIA
Printing media the shop uses posters and signs in order to pass information to the customers
enter.
POSTERS
The shape uses signpost so as to pass information to customers at different areas uses 400
shillings in each post

SIGN BOARDS
The shop uses sign boards to advertise the laboratory bench tops and tap supply by print very
coloured photographs so as to attract more customers. Uses 500 shillings in each sign board.

ELECTRONIC MEDIA
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This is the use of radio and television in order to pass information.

RADIO
Brian use radio as a mean of advertisement because it is cheaper and faster means of
advertisement. Uses 100 shillings per hour.

2.5 PRICING STRATEGY

Brian laboratory bench tops and taps shall set a price in a manner that will be affordable for
customers. The business will reduce at least 10% from every product from that of its
competitors. This will be done so as to remove customers from being exploited and two german
stamp to buy more of the business products. The business will offer credit to loyal customers and
will be back after 2 weeks. Transportation and warranty will also be provided to loyal customers.
The price shall be compared with those of competitors and the price list will be set as follows.

ITEMS BRIAN MAUZO KILEL KIPLA

Sinks 8000 8500 8550 8700
Taps 2000 2100 2300 2350

According to above investigation Kipla sell higher compare with Brian .

2.6 SALES TACTIC

Brian’s laboratory bench tops and tabs supply has been set in a manner that the customer are
able to purchase the product at any quantity.
The business will reduce the price of every product from that of its competitors. The salesperson
will be in contact with customer so as to exchange ideas direct. Salespersons obtain first-hand
information things help to solve uprising problems in the business. The business offer credit
services to frequent customers. The business with employee to interview with employee and
manager will manage the business by motivating employees through increase main of salaries
hence the performance they work successfully.

2.7 DISTRIBUTION STRATEGY

Bench tops and taps are bulky cars will be used to distribute goods to the customers. The
business will use the following distribution.

PRODUCER CUSTOMER

PRODUCER RETAILER CUSTOMER

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 PRODUCER WHOLESALER RETAILER CUSTOMER

CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT

This chapter entails the management and organization plan of business. It included managing
personnel involving in the operation of the business the qualifications job specification training
and promotion of their remuneration and incentives.

3.1 ORGANISATION STRUCTURE

This business will be headed by the manager who is also the organizer the proposed business.
She will be one playing for workers and ensure that the business runs smoothly. The structure
below show how the proposed business will run.

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The proposed business is organized in a way that all the workers are in the right position. This
will help you and smooth running of the business and also will increase profits health workers
will receive their salaries in time

3.2 KEY MANAGEMENT PERSONNEL NUMBER AND TITLES

Manager post
The name is Mwever Ndengwa 25 years old hardworking and very determined in expanding
business and create more jobs for youth.
Qualification
Diploma holder in business related field.
At least three years of working experience.
25 years of age.
Hard-working and Christian

Duties and responsibilities

And to our day-to-day activities run smoothly
Manage all the business activities

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Welcome visitors who come from other companies
Paying salaries to employees
Attending to every customer equally

Assistant Manager
Qualification
Have diploma in business management
Have 3 years experience
Must be Kenyan citizen by birth
Must be 25 years and above

Duties and responsibilities

Attending to every customer equality
Evaluating business performance
Ordering new stock
Assisting his or her manager in decision making end
Business finance accounting and acts as clerk

ACCOUNTANT 1 POST
Qualification
Diploma holder in accountants
At least two years of experience
25 years of age

Duties and responsibilities

All the accountant transaction is for daily activities
Ensure smooth operation by financing activities

3.3 OTHER PERSONNEL NUMBERS AND DUTIES

Technician’s one post
Qualifications
Must be holder in certificate or diploma in manufacturing installation
At least 2 years experience
Duties and responsibilities
Responsibilities for all technical work in the business
Rendering quality services is expected by customer
Help in production process

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Driver
Qualification
Must be having three years of experience
Must be professional driver
Role and responsibilities
To help in transportation of good and product from one place to another
Hold all tender for transport.

WATCHMAN
Qualification
Should be 18 years and above
Train from a recognized institution
Roles and responsibilities
Taking care of the premises security
General security purpose day and night shift
Hold workers attendance sheets

Cleaner
Qualification
Must have experience in cleaning
Must be hardworking
Roles and responsibilities
Ensuring that the premises is clean
Assisting in kitchen to prepare food for workers
General cleaning duties
Weed the flowers around premises
Watering flowers

3.4 RECRUITMENT TRAINING AND PROMOTION

3.4.1 Recruitment
The manager will recruit, appoint and designate all employees to carry out special or specific
work in the business. The availability of vacant position in the business will be advertised in the
media for the interested or qualified parties with or outside the town to apply after the application
has been made the shortlist will be done for the qualified application to be called for interview
will be appointed for the post advertised.
3.4.2 Training
The training of employees will be done through workshop and seminars. This will enable
employees to be well conversation with job he/she is supposed to be doing.
3.4.3 Promotion
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The employment will be promoted after training and after attaining qualifications and
experience. The business will promote its employees by increasing their salaries after every year
and also giving them presents when they perform well in their various duties they handle in the
business. The employees are given gift and also t-shirts for free bearing the name of the business.

3.5 RENUMERATION AND INCENTIVES

The worker salary will be paid monthly together with their wages commissions’ incentive
bonuses and other perks

3.5 1 RENUMERATION
Worker salaries will be on a monthly basis and any advance will be considered by the manager.
The manager will be withdrawing his remuneration monthly and also gets an advance if there are
not good financial
3.5.2 Incentives
The table below shows the position of the workers and their monthly salaries respectively
Position number of stars salaries allowance total

Position Number of staff Salaries Allowance Total

Manager 1 25,000 House, transport 32,000
and
medical=7000
Assistant 1 22,000 House, transport 27,000
manager and
medical=5000
Accountant 1 20,000 House, transport 25,000
and
medical=5000
Technician 1 17000 House, transport 20,000
and
medical=3000
Driver 1 15000 House, transport 18,000
and
medical=3000
Cleaner 2 10,000 each House, transport 26,000
and
medical=3000
each
Watchman 2 13000@ House, transport 32,000
and
medical=3000@
Total 9 145000 35,000 180,000

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3.6 LICENCE PERMIT AND BI-LO LEGAL REQUIREMENTS
3.6.1 License
Supply of laboratory bench tops and taps will be registered by the county council of the ritual
and will require a license permit of ksh 7,000 per year. The purpose of license is to identify the
business to protect the public health and safety and keep track of your finances for tax purpose.
3.6.2 Permit
The business will you get permit from lighting company and Kenya police for alert alarm
3.6.2 by-laws
The business will hire to comply with by laws because it directs the inner workings of a business.

3.7 SUPPORT SERVICES

The business needs support for its daily running an activity this includes power and postal serves
also they should be water availability legal and insurance service. Good communication network
should be implemented for the effectiveness of the business. The enterprise will open its current
account with Kenya post bank the electricity will obtained from Kenya Power Lightening
Company.

3.7.1 Banking service

The business will own an account using national bank and its branches is in Kericho town it is a
business banking account because the business banking account give out loan checking account
allows deposit and save money. Charges100 shillings for deposit more than 500 shilling.
Equity bank
P.O box 2400
Kericho
Account number 018112267
Telephone number 0542-516112

3.7.2 Insurance Services

Amaco insurance company is the farm that will ensure brian laboratory bench tops and taps. The
business need to be insured against fire or theft this will in position in care of risk. The
compensated insurance will take at most 4500 per year.
Amaco insurance company
Po box 2500
Kericho
Tel number 0700 171 400

3.7.3 Consulting services

ballistic laboratory bench tops and taps supply will require provisional since the business will
be dealing with bench and taps and service since the business will look advice from energy

23
officer once per week to obtain information asking questions and seeking for assistant in case of
any problem. They will create satisfaction to all customers. It will charge 500 shillings for
consultation.
Swan advocates
P.O Box 72
Kericho
Tel number 0710101600

3.7.4 Legal Services

The business will reward legal services when writing a contract in separating labour laws and
employment the business will use lighting company close farms as their legal services. The
business choose these farm because they have held many business and a half men at forget who
can attend to a business very fast when they are needed. What's the tire services are not
expensive and their offices are located within our account our county. It will charge 200 shillings
per services.
Legal services
Kericho post office
P.O box 105
Kericho
Tel number 0144-662 451

CHAPTER FOUR

4.0 PRODUCTION AND OPERATIONAL PLAN

This is where the model of the production are required to be sold are created. In this stage the
manager and employee sit down and decide the best method to make their product to be best.
When the employees and the manager together will come up with the best design for product
and operation plan

4.1 PRODUCTION DESIGN AND DEVELOPMENT

This is where the model of product which are required to be sold or created. In this stage the
manager and the employees sit down and decide the best method to make their product to be the
best. When employer and the manager can sit there they will come up with the best design for
product.

24
 4.1.1 PRODUCT DEVELOPMENT PRODUCT DEVELOPMENT
After the best design the products and services will be of high quality which is going to be
approved by the business so as to be in order to capture the target number for customers. Will be
used in order to educate the customer support and services offered by the farm.
Business layout

4.1.2 QUALITY CONDITION MEASURES

the company will have a quality policy across the organization in order to make sure that
measure measures across the organization is followed. It will make sure the company policy and
any government rules or regulations are followed.

4.2 PRODUCTS FACILITIES AND CAPACITIES

The business will be having various facilities to facilitate its work according to that it can
achieve its objective the production of brian laboratories bench tops and taps supply.
The production for solicitors’ laboratory sink and taps supply
Company are shown below

4.2.1 PRODUCT FACILITIES

Facility Quantity Cost per unit Total cost
Lab fittings 20 80 17,000

25
 Bench 15 200 1,500
Taps 12 70 1,000

4.2.2 MAINTENANCE AND REPAIR OF EQUIPMENT

This will be done as to increase the efficiency of the equipment
The proposed layout will be made in a way that the customers will be able to see clear and work
efficiency inside.
Items Suppliers Cost involved in maintenance
Tractor Peter 5,000
Computer Super market 2,000
Weighing machine Hardware 500
Total 8,000

4.3 PRODUCTION STRATEGY

The company management team will work on long-term plans for the production of goods and
services in order to achieve its goals and objectives.

4.3.1 Monthly Material Requirements

The company will require more products to ensure the stock does not run-out
Material Quantity Price Total cost
Taps 500 100 50000
Bench 300 400 120000

4.3.2 Monthly Labour Requirements

Employers are obligated to execute written employment agreement with full time employees
within one month since such employees start to work
Positions Monthly salary Allowance Total cost ksh
Manager 25,000 7000 32,000
Assistant manager 22,000 5000 27,000
Accountant 20,000 5000 25,000
Technician 17,000 3000 20,000
Driver 15,000 3000 18,000
Cleaner 20,000 6000 26,000
Watchman 26,000 6000 32,000

4.3.3 Monthly Production Expenses

The business will incur the following expenses to produce the product and service offered
Items Amount

26
 Power 5000
Telephone 7000
Advertisement 4000
Water 2000
Salaries and wages 10000
Total 21,000

4.3.4 Cost of Production

This is the total cost incur by the business in production on services offered
Cost of production Amount
Material required 7,000
Labour required 45,000
Production expenses 55,000
Total 10,700

4.4 OPERATIONAL /PRODUCTION PROCESS

The business will sell sink and tap as already manufactured product the prices are fair and the
business allow their good profit margin in pricing.

4.5 GOVERMENT REGULATION AFFECTING OPERATION

There are requirement that must be available to premise where business is located to health
worker in case of risk or danger

27
The following legal requirements in brian laboratory bench and taps supply are government act,
government policy, health regulation, environmental regulation.
4.5.1 GOVERNMENT ACT
The business owner will get permit and license from local authority at a payment fee of Ksh
2000
4.5.2 Government policy
The government may bring changes on the price of product and taxes .this policy can affect how
the business can operate
4.5.3 Health regulations
My proposed will adhere to the following health regulations
1. Isolate asset process and substance so that work do not come into contact with them
2. Maintained preventive medicine programmers that develop health regulations
3. To carry out pre employed medical examination.

4.5.4 Environmental Regulations

My business will adhere to the following environmental regulations
1. Maintained plant and equipment to eliminate the possibility of harmful apparatus and
fittings
2. Eliminate the hazards of source through designed and process of laboratory sink and taps

CHAPTER FIVE

5.0 FINANCIAL PLAN

The process of financing planning in the business is designed to forecast future financial results
and determine how best to use the business financial resources. In pursuit of the business short
and long range objectives. This is because planning involves working well into future. It is
highly creative thinking process as well as analytical. Companies that make a concerted effort of
accelerated pace than organizational that have insufficient planning process.
Financial planning provides numerical logic and discussion making. It shows where the business
should concentrate its resources for maximum effectiveness in building revenue and managing
cost.
An efficient financial management allows more funds to be available for marketing expanding
operation and product development which in turns bring more growth.

5.1 PRE OPERATIONAL COST

Brian laboratory bench and taps will be required to consider the pre-operational cost. This will
cost required before starting the business.
And this is shown below
Equipment Units Cost Total
Bill post 1 7,000 7000
Insurance 1 2500 2500
Bench 1 2000 2000
License 1 1500 1500
28
 Table 1 2000 2000
Storage unit 1 5000 5000
Total 20,000

5.2 ESTIMATION OF WORKING CAPITAL

The business will subtract current liabilities from current asset as listed on the company balance
sheet.
Current assets Sh 15,000
Cash at bank Sh 300,000
Pre-payment Sh 80,000
Debtors Sh 20,000
Total Sh 415,000

29
 5.3 PREPARATION OF CASH FLOW PROTECTION.
The company will list every likely expense the business may incur, such as payroll, accounts payable and vendors rent and loan
payment.
Jan Feb March April May June July KSHS AugKS Sep Oct KSHS Nov KSHS Dec Total
KSHS KSHS KSHS KSHS KSHS KSHS HS KSHS KSHS KSHS
Cash inflows
Cash sales 420000 430000 450000 520000 560000 570000 580000 620000 640000 610000 650000 656000 6,76000
0
Collection from 10000 8000 9000 72000 9000 7800 8000 8000 9000 8000 7000 10000 101,000
debtors
Cash in bank 50000 60000 60000 45000 50000 50000 60000 60000 50000 50000 50000 50000 635,000
cash at hand 150000 100000 150000 150000 100000 100000 150000 150000 100000 150000 150000 100000 1,550,0
00
Total cash 639000 598000 669000 722200 719000 727800 798000 8,991,0
inflow 00
cash out flow
Cash purchases 100000 100000 100000 150000 100000 150000 1,500,0
00
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60,000
Salaries and 90000 90000 90000 90000 90000 90000 90000 90000 90000 90000 90000 90000 1,080,0
wages 00
Telephone 1000 1200 900 720 12,370
Transport 10000 12000 8000 7800 118,500
Electricity bills 1500 1000 1200 1400 1400 1000 12000 15,000
Water bills 2000 1800 2200 2000 2300 1700 2000 1800 2000 1900 1600 2000 23,300
Advertisement 10,000 9000 9000 6000 340,000
Bank loan 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 66,000
repayment 10%
Total cash 225000 216500 271600 218020 265850 317700 223600 213800 232000 268100 268100 244100 2,909,1
outflow 70
Net tax before 40500 381500 456100 450600 500980 461950 614400 585200 586000 588900 480300 571900 6,082,8
tax 30
Less tax 5% 20250 19075 22805 22530 25049 23098 24015 30720 29260 29300 29445 28595 304242
Net profit after 384750 362425 433295 428070 495931 438852 456285 583680 555940 556700 559455 543305 5,77868
tax 8
Accumulated 384750 747175 118047 160854 208447 2523323 2979608 356328 4119258 4675928 5235383 5778688

30
cash 0 0 1 8

31
5.4 PRO FORMA INCOME STATEMENTS
The business will use pr-forma income statement to draw potential investors focus to specific
figures when a company issues an earnings announcement.
For the year 30-th December 2021
Sales Sh 1,047,000
Cost of goods sold
Opening stock 75,000
Purchase 324,000
Less closing stock 20,000
Gross profit Sh 668,000
Cost of sales Sh 379,000
Expenses Sh
License 1,500
Insurance 2,000
Transport 2,600
Salaries and wages 180,000
Rent 24,000
Total 229,600
Net profit 438,000
Less taxes 131,520
Net profit after taxes 306,880

5.5 PREPARATIONS OF PERFORMER INCOME STATEMENT AND BALANCE

SHEET
The business will report the company’s earnings that exclude an usual or non-recurring
transactions and the adjustment made on the company balance sheet that fix accounting errors
from prior years.
Fixed assets Ksh
Building 300,000
Land 80,000
Motorbike 340,000
Total 720,000
Current assets Ksh
Stock 15000
Cash at bank 300,000
Debtors 20,000
Pre-payment 80,000
Total 415,000
Less liabilities
32
 Creditors 10,000
Accrual 8,000
Draft 5,000
Total 23000
Total assets 1,112,000

5.6 CALCULATIONS OF BREAK-EVEN POINT.

Break-even analysis is where the total revenue equal to the total cost i.e break-even
analysis=TIR=TIC the firm is earning profit or zero profit. If the total revenue is greater than the
total cost, the firm makes abnormal profit or super normal profit. If total revenue is less than the
total cost, then the firm will make losses. Break-even analysis is also known as cost volume
analysis.
i) Numbers of unit to break even.
BEP (UNITS) =Fixed cost
Contribution (units)
Contribution (units) = selling price-marginal cost
=600-500
=sh 100

Bep(units)=365,250
100
=3,652.50
ii) Contribution/sales ratio
Contribution sales/sales ratio=contribution x 100
Selling price
=100 x 100
500
=20%
iii) Target profit (what number of units would need to be sold in order to achieve profit of
sh, 4,888.50
Sales target=fixed cost + net profit x selling price
Contribution unit
=3652.50+306,880+600
100
=shs 4,032.780

33
5.7 CALCULATIONS EXPECTED OF PROFITABILITY RATIO
Gross profit ratio=gross profit x 100%
Sales
=30, 6880 x 100
104.7000
=29.31%
Turnover ratio=sales revenue
Assets (P.A+C.A)

=1047000=0.92
1135000
Liquidity ratio=current assets, (CA)
Current liabilities (C.L)
=41500= 18.04
23000

5.8 DESIRED FINANCE

ITEM AMOUNT
Pre-operational cost 376,000
Working capital 949,000
Fixed assets
Furniture’s and fittings 30,000
Machinery and equipment 300,000

TOTAL 1,655,000

5.9 PROPOSED CAPITALIZATION

Owners contribution 413,500
Borrowed capital 50,000
Total 463,000

34
REFERENCE

Abell, D.F., 1993. Managing with Dual Strategies: Mastering the Present, Preempting the
Future. The Free Press: New York.
Abraham, R., 1997. The relationship of vertical and horizontal individualism and collectiv-
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elopement Journal: Bingley.

Baden-Fuller, C. and Stopford, J.M., 1994. Rejuvenating the Mature Business: the com-
petitive challenge. Harvard Business School Press: Boston.
Baghai, M. and Quigley, J., 2011. As One: individual action, collective power. Penguin
Group: London.
Burns, T. and Stalker, G.M., 2001. The Management of Innovation. Oxford University
Press: Oxford.

Cameron, K.S. and Quinn R.E., 2006. Diagnosing and Changing Organizational Culture.
Jossey-Bass: San Francisco.
Čančer, V. and Mulej, M., 2006. Systemic decision analysis approaches: Requisite tools
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List of references
358
Cooper, A.C., 2002. Network, Alliances, and Entrepreneurship. In: Hitt M.H., Ireland R.D.,
Camp S.M. and Sexton D.L., 2002., Strategic Entrepreneurship. Blackwell Publishing:
Malden.
Cooper, D.R. and Schindler, P.S., 1998 (2010). Business Research Methods. 6th (11th) ed.
Irwin/ McGraw Hill: Boston.

35
APPENDIX 1 BUSINESS LAYOUT MAP

MANAGER OFFICE STORE LIBRARY

RECEPTION SECRETARY OPERATIONAL UNIT

OFFICE

CORRIDOR

36
 APENDIX II BUSINESS LAYOUT

BOMET ROAD
FELISTERS
LAB SINKS
AND TAPS
TEACHERS COLLEGE

SUPPLY JIMMY
FASHIONS
FINLAY ROAD
KERICHO

IMARISHA
SACCO

KERICHO

TOWN

37