DERICK´S CCTV INSTALLATION SHOP

NAME OF THE CANDIDATE: DERICK OCHIENG

INDEX NO: 5820010002

COURSE: DIPLOMA IN INFORMATION COMUNICATION

TECHNOLOGY

COIRESE CODE: 2920

PAPER CODE: 108

INSTITUTION: MAASAI MARA TECHNICAL VOCATIONAL TRAINING

COLLEGE

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN PATRIAL

FULFILMENT FOR THE AWORD OF DIPLOMA IN INFORMATION COMMUNICATION

TECHNOLOGY

EXAM SERIES: JULY 2023

SUPERVISOR: MARY KAIRO

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DECLARATION
I hereby declare that this is my original work and it has never been presented to Kenya national
examination council for the award of certificate or Diploma.

Name……………………………………..

Date……………………………………….

Signature………………………………..

Name of the supervisor…………………………………

Date………………………………………………………………

Signature……………………………………………………..

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DEDICATION
I wish to dedicate this document to almighty God for the guidance through the preparation period. I would
also dedicate to my family my parents George Opiyo and Lilian for parental support and finally my good
friend Elvis Omondi for the support during the period.

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ACKNOWLEDGMENT
I would like to take this opportunity to thank God for this mercy and grace that were sufficient through the
source period. Also my teacher Mary Kairo for her competence and guidance in giving me the directives
in making business.

I also appreciate my parents for their financial support and my friend Elvis for continuous support in
motivating me through the preparation of the plan thank you very much and may God bless you.

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Table of Contents
DECLARATION .............................................................................................................................................. ii
DEDICATION ................................................................................................................................................ iii
ACKNOWLEDGMENT ................................................................................................................................... iv
CHAPTER ONE ..............................................................................................................................................1
1.1 BUSINESS DESCRIPTION..........................................................................................................................1
1.2 BACKGROUND OF THE OWNER ..............................................................................................................1
1.4 LOCATION OF THE BUSINESS AND ADRESS.............................................................................................1
1.4.1 LOCATION ........................................................................................................................................1
A MAP SHOWING THE LOCATION OF THE BUSINESS ................................................................................2
1.5 PRODUCT AND SERVICES ........................................................................................................................3
1.5.1 PRODUCT .........................................................................................................................................3
1.5.2 SERVICES..........................................................................................................................................3
1.6 GOALS AND OBJECTIVES .........................................................................................................................3
1.6 .1 GOALS .............................................................................................................................................3
1.6.2 OBJECTIVES......................................................................................................................................3
1.7 INDUSTRY ...............................................................................................................................................4
1.8 FORMS OF BUSINESS OWNERSHIP .........................................................................................................4
SOURCE OF CAPITAL .................................................................................................................................4
TYPE OF BUSINESS ....................................................................................................................................5
1.9 JUSTIFICATION OF OPPORTUNITIES........................................................................................................5
1.10 ENTRY AND GROWTH STRATEGY ..........................................................................................................5
1.10.1 ENTRY STRATEGY ...........................................................................................................................5
1.10.2 GROWTH STRATEGY ......................................................................................................................5
CHAPTER TWO..............................................................................................................................................6
MARKETING PLAN ........................................................................................................................................6
2.0 INTRODUCTION ......................................................................................................................................6
2.1 CUSTOMERS ...........................................................................................................................................6
2.2 COMPETITORS ........................................................................................................................................6
THE TABLE BELLOW SHOWING THE OVERAL ANALYSIS ............................................................................6
2.1.1 MARKET SHARE ...............................................................................................................................7
2.2 PRICING STRATEGY ................................................................................................................................8

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2.3 SALES TACTICS .......................................................................................................................................8
2.4ADVERTISING AND PROMOTION STRATEGY............................................................................................8
2.4.1ADVERTISING STRATEGY ..................................................................................................................8
2.4.2 PROMOTION STRATEGY ......................................................................................................................8
2.5 DISTRIBUTION STRATEGY .................................................................................................................8
CHERPTER THREE .......................................................................................................................................10
3.0 ORGANISATION/MANAGEMENT PLAN .................................................................................................10
3.1 ORGANISATION STRUCTURE ................................................................................................................10
3.2MANAGEMENT OF THE BUSIINESS ........................................................................................................10
3.3 RECRUITMENT, TRAINING AND PROMOTION ......................................................................................11
3.3.1 RECRUITMENT ...............................................................................................................................11
3.3.2 TRAINING.......................................................................................................................................12
3.3.3 PROMOTION ..................................................................................................................................12
3.5 RENUMENERATION AND INCENTIVES ..................................................................................................12
3.5.1RENUMENERATION ........................................................................................................................12
3.5.2 INCENTIVES....................................................................................................................................12
3.6 LICENSES PERMITS AND BY LAWS ........................................................................................................12
3.6.1 LICENSES ........................................................................................................................................12
3.6.2 PERMITS ........................................................................................................................................12
BY LAWS .................................................................................................................................................12
3.7 SUPPORT SERVICES ...........................................................................................................................12
CHAPTER FOUR ..........................................................................................................................................14
4.0INTRODUCTION .....................................................................................................................................14
4.1 PRODUCTION FACILITY AND EQUIPMENT ............................................................................................14
4.2 MONTHLY LABOUR ...............................................................................................................................14
4.2.1 TOTAL COST FOR PRODUCTION .....................................................................................................15
4.3 PRODUCTION PROCESS ........................................................................................................................15
4.4 REPAIR AND MAINTANCE .....................................................................................................................15
4.5 BUSINESS LAYOUT ................................................................................................................................16
4.6 PRODUCTION AND SERVICE STRATEGY ................................................................................................17
4.7 REGULATIONS AFFFECTING THE BUSINESS ..........................................................................................17
4.7.1 TAXATION ......................................................................................................................................17

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 4.7.2 HEALTH REGULATIONS ..................................................................................................................17
4.7.3 SAFETY ...........................................................................................................................................17
4.7.4 HEALTH REGULATIONS ..................................................................................................................17
4.7.8 INTERNAL RULES AND REGULATIONS ............................................................................................17
CHAPTER FIVE .............................................................................................................................................18
5.0 INTRODUCTION ....................................................................................................................................18
5.1 PRE-OPERATIONAL COST ......................................................................................................................18
5.2. INCOME AND EXPENDITURE ACCOUNTS .............................................................................................18
5.3.1 PROJECT CASH FLOWN FOR THE YEAR 2024 .....................................................................................19
5.3.2 PROJECTED CASHFLOW FOR THE YEAR 2025 ...................................................................................20
5.3.3 PROJECTED CASHFLOW FOR THE YEAR 2026 ....................................................................................21
5.4 PROJECT BALANCE SHEET .....................................................................................................................22
5.5BREAK EVENT POIN ...............................................................................................................................22
5.6 DESIRED FINANCING .............................................................................................................................23
5.7 PROPOSED CAPITALIZATION.................................................................................................................23
5.8 EXPECTED PROFITABLE RATIO ..............................................................................................................24
5.9 APENDIX I .............................................................................................................................................25
A MAP SHOWING THE LOCATION OF A BUSINESS......................................................................................25
APENDIX 1:business location ..................................................................................................................25
APENDIX II ..................................................................................................................................................26
APENDE II A MAP SHOWING THE LAYOUT OF THE BUSINES ..................................................................26

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 EXECUTIVE SUMMARY

CHAPTER ONE: BUSINESS DESCRIPTION

The proposed business will be DERICK CCTV’s installation shop It will be located along side ugunja
siaya road. The business will operate under a sole proprietorship type and acquire its capital from personal
savings, family contribution, friends’ contribution and bank loans. The business will deal with services
such as installing cctvs and products such as cameras, cctvs and laptops. The business fits in the
technology industry since it involves use of electronic devices. The business will have entry strategies
such as advertisement and sign posts and growth strategy such as selling product to the customers
consistently.

CHAPTER TWO: MARKETING PLAN

This chapter clarifies customers, competitors, market size, pricing strategies, sales tactics, advertising,
promotion strategy and distribution strategy. Therefore the business will have to handle both individual
and institutional customers since it is located in a town and in an easily accessible area. Since the business
is not common in the town, it will have few competitors which the presenter has illustrated using a pie
chart. The pricing strategy is well described and how the business will dominate alongside competitors.
The business owner has also come up with a good selling tactic which will be good and comfortable to the
business and the customers. Since the business will be a start up business, the business owner has
described the methods that will be used for advertising and the promotion strategy that will be suitable for
the business.

CHAPTER THREE: ORGANISATION AND MANAGEMENT PLAN

In this chapter, the business owner will be dealing with the organization and management plan of the
business. Therefore the owner has well described the business organization by using a chart. Also the
business has discussed how remuneration will be done. Since the business will not run without a license,
permit and by-laws, the business owner will therefore come up with a way in which the business will
conduct recruitment, training and promotion. The support services also have been discussed and where
they will be found.

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 CHAPTER FOUR: PRODUCTION AND OPERATION PLAN

The chapter deals with production and equipment, monthly labor requirements, production process repair
and maintenance, production and service strategy, business layout and finally the regulations affecting the
business and rules of the business. The business owner has elaborated where it will get its production
facilities from and described after how long they will be serviced. The owner has also drawn a chart to
explain all the information about the equipment’s that will be used. The monthly labor has been clearly
illustrated using a chart. The business owner has also elaborated after how long the equipment’s will be
repaired and explained the maintenance measures together with the cost incurred. The business owner has
also drawn a map which shows the business layout. Production process and service strategy has been well
elaborated and their cost. Finally, the business owner has explained all the regulations affecting the
business and come up with rules that will govern the business.

CHAPTER FIVE: FINANCIAL PLAN

The chapter mainly deals with calculations and how much money will be spent for the three years. It deals
with financial plan for the business, pre-operation cost that is the amount of capital required before
starting the business. It has also a cash flow and a balance sheet for the three consecutive years that the
business will be operating. At the end is a map and a layout of the business.

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 CHAPTER ONE

1.1 BUSINESS DESCRIPTION

The name of the business will be DERICK´S CCTV INSTALLATION SHOP the business will be located
in siaya ugunja high way on a busy great north road and the business town will be Rangala the reason that
suit the business there is availability of large population which are in secured and the high rate of robbery
in the town which require a lot of security. It is near Ugunja police station where the investigation of
crimes is always done and requires more sources which can provide evidences in time.

1.2 BACKGROUND OF THE OWNER

The owner of the business will be Opiyo Derick Ochieng he went to Pal Pal primary school and later on
he went st mary´sukwala high school where he completed his O level. After completion of high school he
happened to work in Baba John cybercafé and in the year 2022 he joined maasai mara vocational training
college.

1.4 LOCATION OF THE BUSINESS AND ADRESS

1.4.1 LOCATION
The business will be established 5km from siaya ugunja highway, it will be located near ugunja police
station, the location will the best position of the business this is because the place will be a high way and
also presence of tar marked road hence enabling easy transportation of products. It will also require
enough security since it will be located directly opposite ugunja police station there will also be a number
of potential customers which can enable the business acquire maximum profit this is because the place
will be near police station, school and hospital which will require a lot of security, it will be also located
near siaya ugunja highway which will require street security cameras to provide evidences on drug
trafficking and accidents.

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 A MAP SHOWING THE LOCATION OF THE BUSINESS

AMBIRA
HIGH
SCHOOL SIGOMRE
UNIVERSITY

EVANS CCTV
INSTALLATI
UGUNJA POLICE ON SHOP
AMBIRA
STATION
PRIMARY
SCHOOL
UGUNJA
UGUNJA
SIAYA MARKET

HIGHWAY

DERICKS CCTV ELVIS CCTV

INSTALLATION
SHOP
SHOP

KONJA

BURUNGU
CHURCH
HOTEL

2
 ADRESS: P.O BOX 275-40600 SIAYA

NUMBER: 0792241234
EMAIL: OPIYODERICK02@GMAIL.COM

1.5 PRODUCT AND SERVICES

1.5.1 PRODUCT
The business will also offer variety product to enable customers satisfactions for example security

evidences and witnesses in criminal court of justice and it also offer free network and printing of

documents like calendars and clothes

1.5.2 SERVICES
The business will also offer services to their clients for example CCTV camera installation service and

screen projection.

1.6 GOALS AND OBJECTIVES

1.6 .1 GOALS
The aim of starting that business will be due to a number of goals which will hence enable customer

satisfactions some of the of the goals will be establishment of a good relationship with the customers this

will then help to ensure that the recommendations are accurate and hence by following they adapt to

change needed to improve themselves and their organizations will also ensure attention to developing the

project and relationship between me and my customers

1.6.2 OBJECTIVES
The objective of this project will be:

To provide relevant security to the security to community this will enhance proper securement of their

goods and products

To develop and embrace new technology

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To provide evidence during court trials this can be used against suspects

To provide good working environment for workers

1.7 INDUSTRY
The business will belong to telecommunication industry

1.8 FORMS OF BUSINESS OWNERSHIP

The business will be located at the headquarters of siaya highway and it will be a sole proprietorship

business Being a sole proprietorship manager has a number of advantages for example it is easy to start

and run a business the owner has the total control of the business

The owner has personal control of the business

The owner has personal contact to the customers or employees

The owner enjoy all the profit alone

SOURCE OF CAPITAL
DETAILS AMOUNT

Inheritance 300000

Business loan 400000

Contribution 800000

TOTAL 1500000

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TYPE OF BUSINESS
The business will be a start up business

1.9 JUSTIFICATION OF OPPORTUNITIES

The business will meet the population in the area located because it justify that there is a problem in

security to the customers since the area has been surrounded by various institutions which may be in need

of security to guard and protect their properties .

1.10 ENTRY AND GROWTH STRATEGY

1.10.1 ENTRY STRATEGY

The business will enter in the market by the use of advertisement by magazines, radio and even by local

advertisement, there will be code indicating the location of the business and even benefits of the business

given to buyer of goods and services to enable them know more about the business. The business will also

offer free commodities to the clients such as cables to enable the acquire a large number of customers to

increase profit of the business

1.10.2 GROWTH STRATEGY

The business will show their growth if there will be an increment in customers buying the goods and

services in the business the demand of many products will also show that the business is doing well in the

market

Increase in profit will also show that the business is growing since the profit are not the same each and

every day activities.

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 CHAPTER TWO

MARKETING PLAN

2.0 INTRODUCTION
The purpose of this chapter is to know my competitors my customers, market share, pricing strategy, sales
tactics, methods of recruitment, selling price and the product to be distributed.

2.1 CUSTOMERS
The business will serve all type of customers because these are the most important people in the time of
my business they are the target customers who will be buying my products and my services therefore my
business will enable them to buy my products at affordable price this include school around the high way
and the police station the hospitals and nearby shops which will be in need of security the business will be
in need of security the business will sign orders with these instructions such that they can access my
products and pay at the end of the month. This will help in boosting operations financially I will also be
serving individual customers and those who own their own apartments who may be passing through the
road.

2.2 COMPETITORS
Those competitors who will be existing around my business will be Elivis CCTV shop and Evans CCTV
shop is located just opposite Burungu church and adjacent to the ugunja market five hundred meters from
ukwala high school Evans CCTV Installation shop is located near ugunja police station and opposite
Ambira high school Evans CCTV will be quite competitive simple because it is located near ugunja
market where there are many administrations offices

Though even if it is in that position my business will it since my products will be of good quality of and at
an affordable price.

Elvis CCTV shop also will be competitive since it will be tasking one of my institution customers since it
is just 20metres opposite burungu church but this will be curbed since I will enter into agreement with
burungu church about taking my products at a loan and paying monthly sometimes elvis CCTV shop
cannot do that I will also extend my agents who are trained and can install a CCTV without complains
from the customers so that my business remain consistence in the market.

THE TABLE BELLOW SHOWING THE OVERAL ANALYSIS

BUSINESS STRENTH WEAKNESS OPPORTUNITY THREATS
Elvis CCTV Near highway Unskilled Poor service
installation shop for exposure trained Large space Inadequate fund
Sells at a hire personnel sell Located near
purchase law quality highway
products
Evans CCTV Near police Poor services Many employees Poor services

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 shop station delivery well constructed Far from
Enough space shortage of infrastructure highway
for expand products
Derrick CCTV Sell quality Poor Skilled trained Far from police
installation shop products construction personnel station
Open and close Few customers High quality
hours fits the products
customers

2.1.1 MARKET SHARE

Ugunja market has approximately seven thousand people despite being the presence of other CCTV
shops like Evans CCTV shop and Elvis CCTV shop my business will offer a variety of products and
services and of good qualities

The business will also interact with the customers in settling the price of some products that are not under
government policy to encourage them and motivate them to continue buying products

Sales
0%

29%
DERICK CCTV INSTALLATION
SHOP
EVANS CCTV SHOP

57% ELVIS CCTV INSTALLATION

SHOP
14%

4000/7000 =57% 1000/7000 =14%

1000/7000 =14%

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2.2 PRICING STRATEGY
The pricing strategy will determine the price in the giving market depending on demand and supply forces
of demand force. When the demand is high the price will be high. If the demand of my products will be
high the price will be high the price of my products also will be high to meet my expenses. The business
will have be slightly law in terms of price compared to my competitors because customers are sensitive of
prize maximize profit. The quality of the product will also determine the prize of the products

2.3 SALES TACTICS

The business will offer direct services to customers and personal selling the achievements will be
depending on the management and how the government will implement its policies. Skilled and trained
personnel will be employed to carry out sales activities. Offering discounts will also help the business
achieve its sales target per given period that is either annually or monthly. The employees will experience
increment in their salaries depending on one’s job though all the employees will be motivated and also
the customers.

2.4ADVERTISING AND PROMOTION STRATEGY

2.4.1ADVERTISING STRATEGY
The business open awareness of its products services and price in order to stay in the market through
media the business will chose a media which is cheap and one that can be easily reached by people the
business will advertise so that more customers can be attracted and also create awareness of its existence
in the market and to maintain the number of customers. Business will use sign posts which will be located
at junctions and on top of tall buildings the sign posts will show the location of the business and the trade
marks this will cost ksh 20000 the will also use local radio stations and ensure that the information reach
local people the cost of radio advertisement will cost ksh 40000 and it will be advertised at least once after
morning news and twice after evening news. The business will also create awareness through newspapers
which will cost 20000 which will be only two lines in every newspaper.

2.4.2 PROMOTION STRATEGY

This shows the attention that would be applied by the advertisement team to draw the attention of products
and services. The total price of this will be ksh 30000 per month the following techniques will be used

Trade discount will be given to customers who will purchase products at large and frequently. Courtesy
customers will be treated with a polite language and a lot of care the employees will be trained how to
deal with customers in a well manner.

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 2.5 DISTRIBUTION STRATEGY
The mode of distribution will be from the manufacturer to the consumers

Manufacturer Retailer consumers

The business will use means of road to transport products from manufacture to the retailers this
transportation will be twice a week and it will cost 7000 the problem the business will encounter will be
breaking down of transport cars and disagreement with manufactures about my payments. To avoid
disagreement about payments the money will be always deposited in the bank and payment will be done
through bank for records to be available to avoid unnecessary complains

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 CHERPTER THREE

3.0 ORGANISATION/MANAGEMENT PLAN

The purpose of chapter is to show organizations structure management of the business recruitment training
and promotion of the business enumerations and incentives license permits and by-lows governing the
business and the support services.

3.1 ORGANISATION STRUCTURE

The owner of the business will operate under employees with me being the manager.

Manager

Secretary Account

Supervisor

Electrician cleaner Security

3.2MANAGEMENT OF THE BUSIINESS

The owner of the business will manage the business. The duties qualifications, responsibilities and salaries
are displayed in the table below.

Personnel Duties Responsibilities Qualifications Salary per

month
Manager Manages the Chairing staff Diploma in 20000
business meeting information
employees and Advertising job communication

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 junior staff vacancy technology
Attending
conferences on
behalf of the
business
Supervisor Handle case of Responsible for Certificate in 12000
exploitations taking records information
and identify communication
business abilities technology
Secretary Keep records Receive message Certificate in 10000
and write of the office and secretariat
minutes during writing minutes
meetings
Account Handle finance In charge of Diploma in 10000
and pay junior welfare and accountancy
staff make payments
Cleaner Cleaning the Ensure all Certificate of 4000
working place equipments are good conduct
clean
security In charge of Ensuring Certificate of 2000
the safety of security all the good conduct
the business time at the
premises business
premises
Electrician In charge of Always make Certificate in 4000
connecting sure that the electrical
CCTV to the CCTV is engineering
electric sources working and
well connected
to the power
sources
TOTAL
62000

3.3 RECRUITMENT, TRAINING AND PROMOTION

3.3.1 RECRUITMENT
Recruitment will be done to identify the right and qualified personnel for the business it will be done by
the manager and the protocols that will be involved will be:

I. Knowing the level of education

II. Age
III. Interviewing through both oral and written
IV. The vacancies will be gazette and done in local radio station this enable to
evaluate the performance of the employees resulting to promotion and demotion
of some workers who did not do well this process is aimed at improving the
productivity of the business
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3.3.2 TRAINING
The employees will be introduced to other colleagues and given per visit of the work place and also their
roles they will then be trained and given responsibilities

3.3.3 PROMOTION
Workers and any other employee in the business who will work hard towards the success of the business
shall be reworded promoted and given other priorities depending on how much work was done the
business will award those workers whom are hard working by giving them tokens and promoting them to
other levels

3.5 RENUMENERATION AND INCENTIVES

3.5.1RENUMENERATION
The owner of the business should be in a position of paying the salary of his or her employees at the end
of the month so that the employees may develop a good relation to the owner. This helps the employees to
collect and calculate the expenses and how much money do they set aside as their savings.

3.5.2 INCENTIVES
The owner of the business decides to introduce tea for the employees during break time and lunch hours to
increase their activeness and to be able to work for long during day time.

3.6 LICENSES PERMITS AND BY LAWS

3.6.1 LICENSES
The owner of the business is granted a business licenses at a county government of siaya the ministry of
technology which allows the business to operate in selected region

3.6.2 PERMITS
The permits officially allow the business owner to do something or anything in his business, success its
issued by the director of security services since the business involves the provision of security. The permit
will be obtained from siaya town and the officer will be offered ksh 10000 to ensure it is clearly approved.

BY LAWS
The business will operate all its activities by observing by laws of the county government which sets
conducts for acceptable and non-acceptable behaviors in the business providing access to justice keeping
safe from insecurity

3.7 SUPPORT SERVICES

The business shall use the following services for its effective operations

BANKING

The business shall bank its money and access loan from Equity bank

EQUITY P.O BOX 799 SIAYA

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This shall secure the money and earn the business interest

INSUARANCE

When the business will have grown it will ensure its assets and premises stock and other equipment’s
against fire and theft risks this will give business security and continuity of business in case of risk
involved

The business will insure with CLEAN COVER INSURANCE COMPANY P.O BOX 275 SIAYA

SECURITY SERVICES

The business will be protected from theft and therefore the security agencies will be involved in guarding
this BEDROCK SECURITY FARM P.O BOX 2007 SIAYA

POSTAL SERVICES

The will receive its postal address through postal office that is located in siaya town

SIAYA POSTAL OFFICE P.O BOX 789 SIAYA

CLEANING SERVICE

Cleaning will be done on daily basis therefore cleaning services farm will be deployed through signing of
contract with Busara cleaning services

BUSARA CLEANING SERVICE P.O BOX 1992 SIAYA

HEALTH SERVICE

The health of the workers will be determined whereby they will be allowed to have health allowances
which will be approved by the ministry of healthy SIAYA COUNTY P.O BOX 144 SIAYA

ELECTRICITY POWER SERVICES.KENYA POWER AND LIGHTENING COMPANY P O BOX 278

40600 SIAYA

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 CHAPTER FOUR

4.0INTRODUCTION
This chapter comprise of production facility and requirement and regulations affecting business operation

4.1 PRODUCTION FACILITY AND EQUIPMENT

The business will operate along siaya-ugunja highway at shoping center my facilities will be acquired
from Ensen company and it will be helpful to the customers because it will it will increase security in the
area and it will be serviced for a period of five years

items Equipment 1.4.0 supplier quantity cost Total

1 computer Ensen company 2 20000 40000
2 table Nkule enterprise 2 500 1000
3 chair Nkule enterprise 4 600 24000
4 Generator DAVIS electronics 1 20000 20000
5 Fire Rescue team 3 500 1500
extinguisher
6 cables Ensen company 7 200 1400
7 Security Ensen company 5 1000 5000
light
8 Office Davis electronics 4 2000 8000
telephone
9 Cctv Ensen company 4 10000 40000
cameras
10 files John book shop 5 200 1000
11 windows Ben enterprise 5 5000 25000
12 Doors Ben enterprise 6 7000 42000

TOTAL 208900

4.2 MONTHLY LABOUR

PARTICULAR AMOUNT

Manager 200000
Supervisor 12000
security 2000
Account 10000
Secretary 10000
Cleaner 4000
Electrician 4000

TOTAL 62000

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4.2.1 TOTAL COST FOR PRODUCTION
ITEM AMOUNT
Monthly labor requirements 620000
Production expense 115000
TOTAL 177000

4.3 PRODUCTION PROCESS

The business will purchase CCTV cameras screens and cables from view TECH company then transport
the products to the required customers where by CCTV CAMERAS will be installed by the skilled
laborers from the business.

4.4 REPAIR AND MAINTANCE

The transportation cars will always be repaired after every trip and also computers for programming the
cctv for proper work will always be updated are repaired for it to increase working speed and the cost of
repair will amount up to 50000

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 4.5 BUSINESS LAYOUT

ELECTRICIA SECURITY
SUPERVI N
SOR

MANAGER

ACCOUNTANT
SECRETARY

CLEANER

16
4.6 PRODUCTION AND SERVICE STRATEGY
The business will acquire goods from Ensen company which will be taken at my business premises and
stored in the business stores each product being stored in appropriate store when a customer come to buy
the products he or she will be attended by attendant and all amount will be paid through bank to avoid
problems of account and transportation cost will be offered to the customers

4.7 REGULATIONS AFFFECTING THE BUSINESS

GOVERNMENT REGULATIONS

4.7.1 TAXATION
The business will have to pay tax as per required by the government and this will be done through the
management

4.7.2 HEALTH REGULATIONS

NHIF deductions

All employees will have to deduct some amount of money from their salaries to carter

4.7.3 SAFETY
The owner of the business will install fire extinguisher at different points to carter for fire break

4.7.4 HEALTH REGULATIONS

The business will also observe health regulation commonly channeled by NEEMA toilets will be bult
drainages will be well made and dustbins located at various points.

4.7.8 INTERNAL RULES AND REGULATIONS

1 Customers to pay through banks

2 Incase of complain a customer to visit the office of supervisor

3 No smoking during working hours

4 No drinking alcohol during work hours

5 No worker should use or abuse language to the customers

17
 CHAPTER FIVE

5.0 INTRODUCTION
This chapter consists of pre-operational cost, income and expenditure accounts, projected cash flow
statements for the three consecutive years, projected balance sheet, break-even point, desired financing,
proposed capitalization and profitability ratio.

5.1 PRE-OPERATIONAL COST

NO PARTICULARS AMOUNT(KSH)
1 RENT 3000
2 INSURANCE 15000
3 ELECTRICITY 45000
4 LICENSE 10000
5 WATER 10000
6 ADVERTISEMENT 10000
7 SALARY 62000
8 TOTAL 145000

5.2. INCOME AND EXPENDITURE ACCOUNTS

2024 2025 2026
Income
Cash sales 140000 143000 15400
Parking fee 20000 20000 10000
Total 160000 163000 164000
Expenses 30000 25000 32000
Salary 62000 62000 62000
Electricity bill 10000 10000 10000
Water bill 4000 4000 4000
License 10000 10000 10000
Rent 3000 3000 3000
Advertisement 10000 10000 10000
Total 129000 124000 131000

Net profit 31000 39000 33000

18
5.3.1 PROJECT CASH FLOWN FOR THE YEAR 2024

JAN FEB MARCH APRI MAY JUNE JULY AUG SEP OCT NOV DEC

Bal b/f - 52500 93300 96200 106000 105900 108800 110600 116500 119300 120800 122000
Cash sales 140000 142000 143000 146000 148000 150000 152000 156000 158000 159000 160000 161000
Parking fees 20000 24000 26000 30000 31000 32000 32000 34000 35000 36000 36500 37000
Total cash 16000 166000 169000 176000 179000 182000 184000 190000 193000 195000 196500 198000
inflow

Salary 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000
Rent 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Insurance 100000 - - - - - - - - - - -
Electricity 5000 5200 5300 5500 5600 5700 5900 6000 6200 6700 7000 8200
License 10000 - - - - - - - - - - -
Water bills 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500
Advertisement 15000 - - - - - - - - - - -
Total cash 107500 72700 72800 73000 73100 73200 73400 73500 73700 74200 74800 73700
outflow
Accumulated 52500 93300 96200 106000 105900 108800 110600 116500 119300 120800 122000 124300
profit

19
5.3.2 PROJECTED CASHFLOW FOR THE YEAR 2025
JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
Balb/f 122000 71500 108000 110400 111500 112000 112300 112500 113900 112000 115000 116200
Cash sales 154000 158000 159500 160000 161000 162000 163000 1653000 164000 167000 168000 169000
Parking fee 20000 21000 22000 23000 23500 23800 24000 24100 24500 25000 25500 26000
Total cash 174000 179000 181500 183000 184500 185800 187000 189400 188500 19200 193500 195000
inflow
Salary 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000
Rent 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Insurance 10000 - - - - - - - - - - -
Electricity 3000 3500 3600 4000 5000 6000 7000 8000 9000 9500 9800 10000
License 10000 - - - - - - - - - - -
Water bills 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500
Advertisement 15000 - - - - - - - - - - -
Total cash out 102500 71000 71100 71500 72500 73500 74500 75500 76500 77000 77300 77500
flow
Accumulated 71500 10800 110400 111500 112000 112300 112500 113900 112000 115000 116200 117500
profit

20
5.3.3 PROJECTED CASHFLOW FOR THE YEAR 2026

JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
Balb/f 124300 43500 84300 85500 90500 92500 93500 93500 97500 98500 100500 102500
Cash sales 143000 144000 145000 150000 152000 153000 153000 157000 158000 160000 162000 163000
Parking fees 10000 18000 14000 16000 17000 18000 19000 19000 20000 21000 22000 23000
Total cash 153000 157000 159000 165000 168000 170000 171000 172000 178000 181000 184000 186000
inflow
Salary 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000 62000
Rent 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Insurance 10000 - - - - - - - - - - -
Electricity 5000 5200 6000 7000 8000 9000 10000 11000 1`2000 13000 14000 1500
License 10000 - - - - - - - - - - -
Water bills 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500
Advertisement 15000 - - - - - - - - - - -
Totalcash out 107500 72700 73500 74500 75500 76500 77500 78500 79500 80500 81500 82500
Accumulated 45500 84300 85500 90500 92500 93500 93500 97500 98500 100500 102500 103500
profit

21
5.4 PROJECT BALANCE SHEET
ITEMS YEAR 2024 YEAR 2025 YEAR 2026
FIXED ASSETS
LAND 80000 90000 100000
FURNITURE 30000 42000 50000
BULDING 100000 120000 130000
TOTAL 210000 252000 280000

CURENT ASSETS
CASH AT HAND 300000 350000 360000
STOCK 140000 150000 200000
CASH AT BANK 125000 130000 140000
TOTAL 565000 630000 700000

LIABILITIES
BANK LOAN 275000 282000 330000
CAPITAL 500000 600000 650000
TOTAL 785000 882000 980000

5.5BREAK EVENT POIN

5.5.1 VARIABLE C0STS
PARTICULAR AMOUNT
SALES INCOME 300000

5.5.2 FIXED COSTS

PARTICULAR AMOUNT
ELECTRICITY 5000
LICENSE 10000
SALARY 62000
RENT 3000
TOTAL 80000

Therefore, the breakeven point will be calculated as;

SALES -FIXED COST*100

SALES

300000-80000 *100 =73.33%

30000

22
5.6 DESIRED FINANCING
ITEM AMOUNT
PRE -OPERATIONAL COST 100000
WORKING CAPITAL 200000
FIXED ASSETS 954000
TOTAL 1254000

5.7 PROPOSED CAPITALIZATION

PARTICULAR AMOUNT
PERSONAL SAVINGS 400000
FAMILY CONTRIBUTION 400000
FRIENDS CONTRIBUTION 20000
LOAN FROM BANK 500000
TOTAL 1320000

23
5.8 EXPECTED PROFITABLE RATIO
Is calculated as follows;

Year 2024

Gross profit *100%

Sales

1276200*100%

1815000

=60.3%

Year 2025

Gross profit *100%

Sales

1215600*100

1957300

=62.1%

Year 2026

Gross profit *100%

Sales

1087800*100%

1687000

=64.4%

24
 5.9 APENDIX I

A MAP SHOWING THE LOCATION OF A BUSINESS

APENDIX 1:business location

AMBIRA
HIGH
SCHOOL SIGOMRE
UNIVERSITY

EVANS CCTV
INSTALLATI
UGUNJA POLICE
AMBIRA ON SHOP
STATION
PRIMARY
SCHOOL

UGUNJA UGUNJA
MARKET
SIAYA

HIGHWAY
DERICKS CCTV ELVIS CCTV
INSTALLATION
SHOP
SHOP

KONJA

BURUNGU
CHURCH

25
APENDIX II

APENDE II A MAP SHOWING THE LAYOUT OF THE BUSINES

ACCOUNTANT

SUPERVISOR

SECRETARY ELECTRICIAN

MANAGER

SECURITY

CLEANER

26