MELOGASTER COPUTER STUDY PACKAGES

NAME OF THE CANDIDATE :LEMAYIAN ROTIKEN

INDEX NUMBER :5820010045

INSTITUTION CODE :582001

INSTITUTION NAME : MAASAI MARA TECHNICAL AND VOCATIONAL
COLLEGE
COURSE CODE :2920

COURSE NAME :INFORMATION COMMUNICATION

TECHNOLOGY

PRESENTED TO :KENYA NATIONAL EXAMINATION COUNCIL FOR

THE AWRD OF DIPLOMA INFORMATON
COMMUNICATION TECHNOLOGY

SUPERVISOR’S NAME : MARY KAIRO

EXAM SERIES : NOVEMBER 2023
DECLARATION
I declare that this business plan is my original work and it has never been presented to Kenya

National Examination Council for the award of any certificate of diploma.

i
DEDICATION
I dedicate this project to my cousin Soila, Christine as they are very interested to this kind of business.

ii
ACKNOWLEDGEMENT
Acknowledging God for being the protector, provider and guider in all through the journey.

Also, my parents for being supportive in terms of paying fees and providing clothes, food among

others. For the follow students being humble, caring and providing a conclusive environment for

learning. Trainers also played a big role of dedicating their time to train to their maximum.

iii
 EXECUTIVE SUMMARY

1.0 CHAPTER ONE: BUSINESS DESCRIPTION

The proposed business will be called Melonogaster Computer Study Packages. It will be located

along Narok highway. The business went through research within the area and so managed to get

the needs and opportunities at the area due to lack of computer packages and the goals of the

business will be to satisfy the people of the area and to expand my business within the county

and the neighboring counties. Form of ownership is sole proprietorship and some assistance will

come from family members. Source of capital of the business will be personal savings, loans

from banks, personal assets and family help.

2.0 CHAPTER TWO: MARKETING PLAN

The purpose of this chapter is to inform my customers, competitors, price strategy, sales tactics,

prizing my products and distribution strategy. The business will deal with all type of customers,

domestic customers and institutional customers. The competitors will make my business to sell

high quality products at affordable prizes, pricing strategy is well and how the business will deal

with customers despite having the competitors. Advertising strategy the business will create

awareness of its stock and price in order to stay in the market through advertising media. The

business will choose to advertise so as to persuade more customers of the upcoming business.

The mode of distribution will be from the manufacturer to the consumer.

iv
3.0 CHAPTER THREE: ORGANISATION
The purpose of this chapter is to organization structure, management of the business,

recruitment, training and promotion of the business enumerations and incentives, license, permits

and support services. The business will operate under employees with me being the manager.

The workers will enable them to have knowledge and basic skills and how to maintain the

facilities available and also recruitment will be done to identify the bright qualified personnel.

Employees who will work towards the success of the business will be rewarded and promoted.

The business manager will also be a position to pay salary to its employees at the end of every

month. The owner of the business will get license from Narok county council and obtain his

permits document from Narok office of permits. The business will obey all by-laws so that it has

good working environment.

4.0 CHAPTER FOUR: OPERATION PLAN

Melonogaster Computer Study Packages will operate along Narok highway and it will acquire

the commodities of the business in Narok town because it is near and will reduce the cost of

transportation. When a customer comes to our business and requires a service he/she will start

from security guard up to the accountant where he/she pays for service. The business will ensure

that there is enough electricity to operate in case there is power off the generator is powered on.

The environmental regulations will be no pollution of the environment, no smoking, no misuse

of water. Also having a license offered by county government of Narok and having a permit to

show the business is legal. All employees should adhere to safety regulations, health regulations

and internal rules of the business.

v
5.0 CHAPTER FIVE: FINANCIAL PLAN
In this chapter it deals with pre-operational cost, income and expenditure, projected balance

sheet, projected cash flow statement, break even analysis, desired financing, proposed

capitalization and profitability ratio.

vi
TABLE OF CONTENTS
DECLARATION..............................................................................................................................i
DEDICATION................................................................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
EXECUTIVE SUMMARY............................................................................................................iv
1.0 CHAPTER ONE: BUSINESS DESCRIPTION.......................................................................iv
2.0 CHAPTER TWO: MARKETING PLAN................................................................................iv
3.0 CHAPTER THREE: ORGANISATION...................................................................................v
4.0 CHAPTER FOUR: OPERATION PLAN.................................................................................v
5.0 CHAPTER FIVE: FINANCIAL PLAN...................................................................................vi
CHAPTER ONE..............................................................................................................................1
BUSINESS DESCRIPTION...........................................................................................................1
1.0 INTRODUCTION.................................................................................................................1
1.1 BUSINESS NAME................................................................................................................1
1.2 BACKGROUND OF THE OWNER.....................................................................................1
1.3 FORM OF BUSINESS OWNERSHIP..................................................................................2
1.4 PRODUCTS AND SERVICES.............................................................................................3
1.4.1 PRODUCTS....................................................................................................................3
1.4.2 SERVICES......................................................................................................................3
1.5 LOCATION AND ADDRESS OF THE BUSINESS............................................................3
1.5.1 ADDRESS.......................................................................................................................3
1.5.2 LOCATION.....................................................................................................................4
1.6 GOALS AND OBJECTIVES OF THE BUSINESS.............................................................6
1.6.1 GOALS............................................................................................................................6
1.6.2 OBJECTIVES.................................................................................................................6
1.7 JUSTIFICATION OF OPPORTUNITY................................................................................6
1.8 INDUSTRY...........................................................................................................................7
1.9 ENTRY AND STRATEGY GROWTH................................................................................7
1.9.1 ENTRY STRATEGY......................................................................................................7

vii
 1.9.2 GROWTH STRATEGY..................................................................................................7
CHAPTER TWO.............................................................................................................................8
MARKETING PLAN......................................................................................................................8
2.0 INTRODUCTION.................................................................................................................8
2.1 CUSTOMERS........................................................................................................................8
2.2 COMPETITORS....................................................................................................................8
2.3 MARKETING SHARE........................................................................................................10
2.4 PRICING STRATEGY........................................................................................................10
2.5 PROMOTION AND ADVERTISING STRATEGY..........................................................11
2.5.1 ADVERTISING STRATEGY......................................................................................11
2.5.2 PROMOTION STRATEGY.........................................................................................11
2.6 SALES TACTICS................................................................................................................11
2.7 DISTRIBUTION STRATEGY............................................................................................11
CHAPTER THREE.......................................................................................................................13
ORGANIZATION.........................................................................................................................13
3.0 INTRODUCTION...............................................................................................................13
3.1 ORGANISATION...............................................................................................................13
3.2 ORGANIZATION STRUCTURE.......................................................................................13
3.3 DUTIES, RESPONSIBILITIES, QUALIFICATION OF THE PERSONNEL..................14
3.4 RECRUITMENT, TRAINING AND PROMOTION.........................................................15
3.4.1 RECRUITMENT...........................................................................................................15
3.4.2 TRAINING....................................................................................................................15
3.4.3 PROMOTION...............................................................................................................15
3.5 RENUMERATION AND INCENTIVE..............................................................................16
3.5.1 RENUMERATION.......................................................................................................16
3.5.2 INCENTIVE..................................................................................................................16
3.6 LICENSING, PERMITS AND BY-LAWS.........................................................................16
3.6.1 LICENSE.......................................................................................................................16
3.6.2 PERMITS......................................................................................................................16
3.6.3 BY-LAWS.....................................................................................................................16
3.7 SUPPORT SERVICES........................................................................................................16

viii
 3.7.1 Kenya power electricity services...................................................................................16
3.7.2 Postal services...............................................................................................................16
3.7.3 Banking services............................................................................................................17
3.7.4 Insurance.......................................................................................................................17
3.7.5 Water service.................................................................................................................17
3.7.6 Security services............................................................................................................18
CHAPTER FOUR.........................................................................................................................19
PRODUCTION PLAN..................................................................................................................19
4.0 INTRODUCTION...............................................................................................................19
4.1 PRODUCTION FACILITIES AND EQUIPMENT............................................................19
4.2 MONTHLY, MATERIAL AND EQUIPMENTS...............................................................19
4.2.1 MATERIAL AND EQUIPMENT.................................................................................19
4.2.2 MONTHLY LABOUR REQUIREMENT....................................................................21
4.2.3 TOTAL COST OF PRODUCTION..............................................................................21
4.3 PRODUCTION PROCESS..................................................................................................22
4.4 REPAIR AND MAINTANANCE.......................................................................................22
4.5 BUSINESS LAYOUT.........................................................................................................23
4.6 PRODUCTION AND SERVICE STRATEGY...................................................................24
4.7 REGULATIONS AFFECTING BUSINESS OPERATION...............................................24
CHAPTER FIVE...........................................................................................................................25
FINANCIAL PLAN......................................................................................................................25
5.1 INTRODUCTION...............................................................................................................25
5.2 PRE-OPERATIONAL COST..............................................................................................25
5.3 INCOME AND EXPENDITURE STATEMENT...............................................................26
5.4 PROJECTED BALANCE SHEET......................................................................................27
5.5.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2026..........................29
5.5.2 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2027..........................30
5.5.3 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2027..........................31
5.6 BREAK EVEN ANALYSIS................................................................................................32
5.7 DESIRED FINANCING......................................................................................................33
5.8 PROPOSED CAPITALIZATION.......................................................................................33

ix
 5.9 PROFITABILITY RATIO...................................................................................................34
APPENDIX 1.................................................................................................................................35
MAP SHOWING BUSINESS LOCATION..............................................................................35
APPENDIX 2.................................................................................................................................36
BUSINESS LAYOUT...............................................................................................................36

x
 CHAPTER ONE

BUSINESS DESCRIPTION
1.0 INTRODUCTION
This chapter compresses of the business name, background of the owner, location and address of

the business, product and services, justification of opportunities, goals and objectives, the

industry, form of ownership and entry and growth strategy.

1.1 BUSINESS NAME

The business name will be Melanogaster computer study packages. The business name

originated from the old man in the society. The man got a lot of favors in everything he does.

The business has expanded countrywide. The business name will attract a lot of customers and

this will be a big factor contribution since it will be able to attain its goals.

1.2 BACKGROUND OF THE OWNER

He was born in a local village called Olokurto, Olorte location in Loita ward Narok South. At the

age of 2 years, he joined a nursery school in Kanunka primary school up to class two. Later he

transferred from Kanunka to Olorte primary school, where he did his Kenya Certificate of

Primary Education. He thereafter joined Loita High School where he happily did his Kenya

Certificate of Secondary Education. After his high school he took a hustle from the nearby

company in the local area of which he worked for 3 months. He proceeded to extend his level of

education beginning with the study of computer packages. He took a duration of 3 months in the

institute whereby he developed a skill of typing, recording, storing files, computer devices (input

and output), printing, photocopying, lamination and computer programming. He developed a

positive attitude in the in institution of opening up the same business in their local area. This has

given him a force to continue and pursue his studies in one of the colleges in Kenya. He went to

1
Maasai Mara Technical and Vocational College to study Diploma in Information

Communication Technology. He is optimistic to learn more about computer in the course to

ensure he will later on open up the business of computer study packages in their local area. This

will bring in fulfillment of his desires.

1.3 FORM OF BUSINESS OWNERSHIP

The business will fall under sole proprietorship form of business. This is because it will be easy

to establish and dismantle due to lack of government involvement, making them popular with

small business owners and contractors. It is the simplest type of business structure and not a legal

entity.

SOURCES OF CAPITAL AMOUNT

Personal savings 200000

Loans from banks 400000

Personal assets 350000

Family help 100000

TOTAL 1050000

2
1.4 PRODUCTS AND SERVICES
1.4.1 PRODUCTS
The products of the business basing computer study package will be as follows to ensure that

there will be full services that will reach to customers in the local area center. These products are

desktop, laptop, notebooks, netbook workstation or server computer, printing computer.

1.4.2 SERVICES
The business will have the following services to the customers to making sure that they meet

their needs in the local center. This will make them happy as the expense will reduce. The

services include, data processing services, internet services, electronic mail services, electronic

message services or information or data stored in connection therewith. This will enable many

people to access the knowledge of computer study in the local village and the local center.

1.5 LOCATION AND ADDRESS OF THE BUSINESS

1.5.1 ADDRESS
The proposed business will operate under the following address

LEMAYIAN MELONOGASTER COMPUTER STUDY,

PO BOX 50-3001,

NAROK.

TEL:0728219412

rotikenlemayian@gmail.com

https://www.melonogastercomputerstudypackages.com

3
1.5.2 LOCATION
The business will be located in the Ngongoni Joseph shop room 3, opposite the police station

near Mama Kayaya clinic, along Mausa entasirira road near KCB bank before Kamau Great

shop, After Bishop Solomon Saiguran church (overflowing ministry)

4
 MAP SHOWING THE LOCATION OF THE BUSINESS

POLICE
STATION

KAMAU’S
GREAT SHOP

KCB
BANK

MELONOGASTER
COMPUTER
PACKAGES

MARTIN’S SHOP

OVERFLOWING
LIFE MINISTRY

5
1.6 GOALS AND OBJECTIVES OF THE BUSINESS
1.6.1 GOALS
As the business is sole proprietorship, the goals of the business will be;

i. To open up another business in the next 3 years in the nearby center.

ii. To expand the business from one room to three room business within the local center to

ensure that the customers are not limited to the use of resource in the center.

iii. To create more jobs for the youth in the community.

iv. To introduce new products in the business.

1.6.2 OBJECTIVES
The business is a startup business

i. There will be a measurable result in the business.

ii. Profits will be maximized. This will help in the attaining of the goals of the business.

1.7 JUSTIFICATION OF OPPORTUNITY

The business will satisfy the demand of the customer in the local center as the service and

products are available. This will help them to reduce the cost of going far to find the services of

the business. The availability of the resources satisfies them most. The location of the business

also matters a lot to the customers as they can access the services easily. This location will be

advantageable to the customers as they can access other different things from the nearby shops.

They have enough security, hospital for the sick and also kcb bank for loans.

6
1.8 INDUSTRY
The business fall under telecommunication industry. It is made up of all telecommunication/

telephone companies and internet services. Providers plays a crucial role in the evaluation of

mobile communications and information society, within the sector of information and

communication technology.

1.9 ENTRY AND STRATEGY GROWTH

1.9.1 ENTRY STRATEGY
The business will outline the goals, an overview of the target, market precisely what will be sold,

that is computer study packages which will be 3000 per term which goes for 3 months. The

expected sales will be typing, printing and saving and storing of files in a computer. This will be

achieved t ensure that customer will exploit the problem of computer knowledge.

1.9.2 GROWTH STRATEGY

The aim of the business will increase the sale of the existing products or services on existing

markets, this will increase the market share. There will be a market development to ensure that

there is introduction of existing products to new markets. There will be diversification growth

strategy. That is entering into new market or industry, one that the business doesn’t currently

operate in-while also creating a new product for that new market.

7
 CHAPTER TWO

MARKETING PLAN
2.0 INTRODUCTION
This chapter compress of customers, competitors, market size, prizing strategy, sales tactics,

advertising and promotion strategy, and distribution strategy.

2.1 CUSTOMERS
Local customers will be the people around the area and will make sure that they will be attracted

by the business name. There will be individual customers where they will be sure bet to the

business. They will be natured to the best for them never to miss Also they will be international

customers from abroad to acquire services in the business.

2.2 COMPETITORS

COMPETITOR STRENGTH WEAKNESS OPPORTUNITY THREATS

Lemayian’s Near the hospital Few employees Open new Far from police

computer study and computer branches station

Poor construction
packages college
Adequate funds

Sell high quality

Sell products at
products.
medium cost

Opening and
It opens daily
closing hours are

customary

8
 friendly.

Martin’s computer Enough room for Unskilled Adequate funds. Poor services.

study packages expansion personnel

Centrally located. Sell low volumes

Expensive of products

products

Low quality

products.

It does not open

daily.

Kamau’s Have enough Poor services. Adequate funds. Poor entrance.

computer study capital.

Sell one product. Skilled personnel. Poor services.
packages
Enough room for
Unskilled Its open every Quality of product
expansion
personnel. day. is low.

9
2.3 MARKETING SHARE
There will be an estimation of 100,000 people in the area around the business. This number of

people will be shared among the three competitors in different ratio. The number of the

customers shared in the market area.

MARKET SHARE IN PERCENTAGE

35%
40%

LEMAYIAN'S SHOP 25%

KAMAU'S SHOP MARTIN'S SHOP

2.4 PRICING STRATEGY

The cost-plus prize will be applied in the business to ensure that the goals and objectives of the

business will be meet. Also, they will be applied to avoid the collapse of the business. The

business will have competitive prize to ensure that many customers will visit the business

regularly.

10
2.5 PROMOTION AND ADVERTISING STRATEGY
2.5.1 ADVERTISING STRATEGY
The business will be advertised by use of posters which will be posted all over the area and the

far end part for easy out rich of the inform to the institutional customers among others. Use of

speakers to attract the nearby customers which will improve the business to attain its goals. The

business as well will be advertised in television which will attract and pay attention to many

customers.

2.5.2 PROMOTION STRATEGY

Promotion will be allowed in the business to make sure the number of customers will be attracted

and pay attention to the individual customers. These promotion to customers includes buy many

get one discount, this will ensure the customer will acquire a lot of services in the business which

will give them a discount. Also, there will be credit to the individual customers to make stable

and strong customers. Charging system will be free to ensure that there is no complicates of

customers having communication.

2.6 SALES TACTICS

The business sale tactics will be indicated basically in three types. This will make easy the work

of customer by acquiring the services. There will be direct scaling, is the indication of the price

other than printing and post in the business rooms. Indirect scaling, also will be operated to boast

the business by meeting those customers who will not be able to reach the shop, personal scaling

also will be operated in the business to ensure that there is smooth provision of services.

2.7 DISTRIBUTION STRATEGY

The methods used in the business as the mean of transport will be road network, which is easily

accessible in the market. This means the transport is important to the customers. This will lead to

the growth of the business.

11
Retailor Customers

Wholesaler Retailor Customers

Retailor Wholesaler

Wholesaler Retailor

12
 CHAPTER THREE

ORGANIZATION
3.0 INTRODUCTION
This chapter compress of organization, organization structure, manager and personal duties

wages pay, recruitment train and promotion. Renumeration train and incentives, licenses, permits

and bylaw and supportive services.

3.1 ORGANISATION
There will be several numbers of employees which will make sure the business will run

smoothly. The business will have the manager which will be the owner of the business. The

secretary with the experience working of two years and 25 years; supervisors will be also

required in the business to ensure all services and product supply are in order; it should be of 30

years old and working experience of 3years. the security man will be the one at the gate of exit

and entrance are located at the same place and should be above 18years old.

13
3.2 ORGANIZATION STRUCTURE
The manager will be the organizer of the business and give out the duties to the subordinate staff

to ensure the business will run out well.

Manager

Secretary

Supervisor

Cleaners Security man

14
3.3 DUTIES, RESPONSIBILITIES, QUALIFICATION OF THE
PERSONNEL
PERSONNEL QUALIFICATION DUTIES RESPONSIBILITIES SALARY

Manager Diploma in ICT Employees Advertising job Ksh 20000

Diploma in the staff. vacancy.

education science Manages the Announcing the staff

and technology. business. meetings

Keeps the

record of the

job.

Secretary Experience in data Organizing Answering calls Ksh15000

processing and book and Taking messages and

keeping servicing handling

meeting correspondence

Managing

data bases

Supervisor Diploma in Keeping Providing more Ksh 18000

accounts. records facilities.

Certificate in Writing Training more

business letters to the employees

management. office.

Diploma in Ensures all

accounts. duties

assigned to

15
 employees

are well

done.

Security man Birth certificate Provides Making sure the Ksh 8000

KCSE certificate. security to security is maintained.

Certificate of good the computer Call for help in case of

conduct. room. any attack

Making

patrols

around the

compound.

3.4 RECRUITMENT, TRAINING AND PROMOTION

3.4.1 RECRUITMENT
The recruitment will bas according to the individual employee, this will make the employee to

acquire enough skill basing on the area of working

3.4.2 TRAINING
The personnel will be trained on a duration of two weeks to ensure that they gate enough tactics

of working. This will improve the from not getting a lot of mistake during working areas. The

trainers also will develop self-courage and confidence of working.

3.4.3 PROMOTION
The employees will be promoted after every three years of working perfectly 3.5 RENUMERATION

AND INCENTIVE

16
3.5.1 RENUMERATION
The employees will be paid a quarter of their salaries per two weeks of the month before end

months

3.5.2 INCENTIVE
There will be no food will be provided to the employees as the business is a startup and growing

business.

3.6 LICENSING, PERMITS AND BY-LAWS

3.6.1 LICENSE
The business will obtain the license at county council of Narok county.

3.6.2 PERMITS
The business will get permit from the county government of Narok.

3.6.3 BY-LAWS
The business will operate its own activities by observing these by-laws include: Kenya power

banking services insurance.

3.7 SUPPORT SERVICES

3.7.1 Kenya power electricity services
PO BOX 111-011

NAROK

3.7.2 Postal services

The business will get postal services from Kenya postal services

Postal Kenya

PO BOX 1300-9031

NAROK

17
3.7.3 Banking services
The business will have banking services from Kenya commercial bank (KCB) through which we

will be depositing, withdrawing and acquiring loans from

KCB bank

PO BOX

28-4612

NAROK

3.7.4 Insurance
The business will be insured by the Mawengo insurance company for the risk of fire

emergencies.

Mawengo insurance company

P.O BOX 9679

NAROK

3.7.5 Water service

The business will have its water supply from the Narok water company

Narok water Company

PO BOX 200-401

NAROK

3.7.6 Security services

Melonogaster Computer Study Packages will have its main activity from the government and

G4’S

18
G4|S Kenya

PO BOX 109-1302

NAROK

19
 CHAPTER FOUR

PRODUCTION PLAN
4.0 INTRODUCTION
This chapter compress of production facilities and their equipment, monthly equipment

production and maintenance proposed workshop layout production strategy production process

and regulation affecting operation.

4.1 PRODUCTION FACILITIES AND EQUIPMENT

The location of the business will be located near the school of Loita Girls Secondary School in

the left side and upper side of the Olorte Primary School as well as right side of the Maasai

Academy. The surrounding areas will help the business to grow to its maximum expectation as

the product facilities will be fully utilized. The printing machine will make work easier to the

customers in the surrounding areas by using short period of time, about 10 to 20 giving out

maximum of 300 to 500 examination papers to the nearby school when ever necessary. This

service equipment will draw nearby more customers to the business.

4.2 MONTHLY, MATERIAL AND EQUIPMENTS

4.2.1 MATERIAL AND EQUIPMENT
ITEM NO PARTICULARS SUPPLIERS QUANTITY AMOUNT TOTAL
1 Computers Hitech 2 27,000 54,000
Company
P.O BOX 230
NAIROBI
2 Printers Gilgil 4 20,000 80,000
Company
P.O BOX 400
LIMURU

20
3 Tablets Linux 10 2,000 20,000
Company
P.O BOX 100
NAROK
4 Chairs Ken chair 20 400 8,000
Company
P.O BOX
1250
NAIROBI
5 Dustbin Motat 2 200 400
Company
P.O BOX
1000
NAKURU
6 Monitors Hitech 2 25,000 50,000
Company
P.O BOX 230
NAIROBI
7 Mouse Hitech 2 500 1,000
Company
P.O BOX 230
NAIROBI
8 Cables Yards 12 300 3,600
Company
P.O BOX 219
NAIROBI

TOTAL 217,000

21
4.2.2 MONTHLY LABOUR REQUIREMENT

ITEM PARTICULAR AMOUNT

1 Manager 20,000

2 Supervisor 18,000

3 Subordinate 15,000

4 Security guard 12,000

Total 65,000

4.2.3 TOTAL COST OF PRODUCTION

PARTICULAR AMOUNT

Material and equipment 217,000

Monthly labour requirement 65,000

Total 282,000

4.3 PRODUCTION PROCESS

The final product will be acquiring in stock from Kamau supplier and the product will be stored

in the appropriate shelf. When a customer come for the service like learning he/she will start

passing his or her information and details from the security issue. The customer finally will enter

the working areas to acquire the resource required in his/her service. This will make sure there is

a lot of improvement in the market coming to be studying of computers.

22
4.4 REPAIR AND MAINTANANCE
The equipment will be repaired at least 2 years of usage to improve the services to customers.

The some of the equipment that require repair and maintenance will be printers, computers,

cables and monitors. The appropriate cost of all the equipment’s will be 217,000 that will make

them to work properly.

23
4.5 BUSINESS LAYOUT

SECURITY SECRETARY
OFFICE
MANAGER’S
OFFICE

ENTRANCE
SUPERVISOR’S
OFFICE
PARKING AREA

ACCOUNTANT’S
OFFICE
WORKING AREA

EXIT

SURBODINATE
STAFF WASHROOMS

GENTS LADIES

24
4.6 PRODUCTION AND SERVICE STRATEGY
The appropriate total cost that will take during the production process will be a maximum of

140,000 and a minimum of 100,000. This will ensure that process cost will be well skill in the

operation which will be store in an orderly manner for them to be secure and safe. This will

improve the service of business as the customers will acquire the document safely.

4.7 REGULATIONS AFFECTING BUSINESS OPERATION

Government regulation should be two which will make and ensure the business will run succeful.

The one of them is license which will be giving regulations to the business from the government.

The permit also is a government regulation that will guide the business for it to workout

smoothly and successfully without any other disturbance. Safety Aid Health regulation are quite

a number that will guide the business operation to avoid some diseases. Some baskets in every

entrance in the business, wearing off face mask, use of spectacles while operating the machines,

use of appropriate sits or chairs while operating the machines, opening of windows while using

the room, cleaning of the room every morning before the working hours and no use of loud

music equipment in the rooms. Internal rules are also there for them to guide the service and

production of the business. The some of the rules are; no idling, no smoking, no noise making in

the room and no eating in the rooms.

25
 CHAPTER FIVE

FINANCIAL PLAN
5.1 INTRODUCTION
This chapter comprises of pre-operational cost, income and expenditure statement, projected

balance sheet, working capital, projected cash flow statement, break even analysis and

profitability issues and desire financing.

5.2 PRE-OPERATIONAL COST

PARTICULARS AMOUNT

Electricity 4,000

Rent 10,000

Water 1,000

Insurance 6,000

Advertisement 6,000

Licenses 10,000

Salary and wages 100,00

TOTAL 137,000

26
5.3 INCOME AND EXPENDITURE STATEMENT

INCOME 2026 2027 2028

Sales 120,000 500,000 700,000

Parking fee 10,000 150,000 25,000

Refreshment 25,000 50,000 75,000

Total Income 155,000 365,000 800,000

EXPENSES

Licenses 10,000 10,000 10,000

Insurance 6,000 6,000 6,000

Salary and wages 100,000 100,000 100,000

Rent 10,000 10,000 10,000

Advertisement 6,000 6,000 6,000

Water bill 1,000 1,000 1,000

Electricity bill 4,000 4,000 4,000

Total Amount 137,000 137,000 137,000

Profit 18,000 428,000 663,000

27
5.4 PROJECTED BALANCE SHEET

ITEMS YEAR 2026 YEAR 2027 YEAR 2028

FIXED ASSETS

Buildings 150,000 160,000 180,000

Furnitures 50,000 75,000 90,000

Machines 60,000 65,000 75,000

Equipment 40,000 60,000 80,000

TOTAL 300,000 360,000 425,000

CURRENT

ASSETS

Cash at hand 200,000 200,000 200,000

Cash on bank 150,000 160,000 190,000

Debtors 20,000 20,000 30,0000

Stock 80,000 100,000 175,000

TOTAL 450,000 480,000 495,000

CAPITAL

LIABILITIES

Bank loans 450,000 500,000 550,000

Creditors 400,000 450,000 500,000

28
Long term liabilities 350,000 400.000 450,000

Friend loans 975,750 995,800 1,015,850

TOTAL 2,175,750 2,345,800 2,515,850

29
5.5.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2026
JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC

Bal/bf 14800000 1334100 1327900 1379500 139950 1418800 1429100 142750 1476800 1423400 1423400
0 0

Cash sales 1575000 1405000 1400000 1450000 14750000 149050 1500100 1499000 155010 1495000 1490100 1500150
0 0

Tax 4000 5000 3000 5000 2000 45000 5000 45000 4000 45000 4500 45000

Parking 2000 2100 1900 2000 1500 1800 2000 1000 1200 1400 4000 4100

Debtors 6000 7000 5000 4000 45000 55000 6000 6500 6000 65000 8000 7000

Total cash 1587000 1419100 1409100 1409900 1461000 148300 1502300 1511000 156130 1507400 1506600 1515250
flow 0 0

Expenses

Electricity 9000 10000 8000 7000 85000 9000 9000 8500 9000 85000 10750 10750

Salary 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500

Advertisement 4500 - - - - - - - - - - -

Rent 9500 9500 9500 9500 9500 9500 9500 9500 9500 9500 9500 9500

Water 5500 5000 4000 4500 5000 4500 5000 5000 5500 5500 8000 8500

Total cash 99000 85000 81500 83500 84000 83500 84000 83500 84500 84000 88750 89250
outflow

Accumulated 1488000 1334100 1327900 1379500 1399500 141880 1429100 1427500 147680 1423400 1417850 1426000
cash/profit 0 0

30
5.5.2 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2027
JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC

Bal/bf 142600 158117 167642 172172 1624920 167742 1523870 152387 157662 162447 162272 163082
0 0 0 0 0 0 0 0 0 0

Cash sales 167000 175000 179500 169550 16250500 165000 1595500 165020 169505 169050 170010 175020
0 0 0 0 0 0 0 0 0 0

Tax 5000 3000 4000 45000 3000 5000 45000 5000 45000 48000 47000 4000

Parking 2500 2000 3000 2500 2000 2500 2500 2000 3000 4000 2000 2000

Debtors 4500 4000 3000 50000 45000 5000 4000 4000 4000 4500 4600 4900

Total cash 168200 175900 180500 170750 16260000 166250 1606500 166120 170655 170380 171140 176110
flow 0 0 0 0 0 0 0 0 0

Expenses

Electricity 6000 6500 7000 6500 5000 5000 65000 6500 7500 7500 6500 7000

Salary 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500

Advertisemen 9000 - - - - - - - - - - -
t

License 10000 - - - - - - - - - - -

Rent 9580 9580 9580 9580 9580 9580 9580 9580 9580 9580 9580 9580

Water 5750 6000 6200 6000 5500 6000 5550 8000 4500 3500 4000 8000

Total cash 100830 82580 83280 83280 82580 81080 82630 84580 82080 81080 80580 85080
outflow

Accumulated 158117 167642 172172 162492 16177420 158142 1523870 157662 162447 162272 163082 167602

31
cash/profit 0 0 0 0 0 0 0 0 0 0

5.5.3 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2027

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

Bal/bf 167602 186034 185617 192217 182217 187997 182497 178587 174527 168079 172135 171377
0 0 0 0 0 0 0 0 0 5 0 0

Cash sales 195000 192500 199050 189050 195010 189050 185070 181070 175050 179500 178550 179080
0 0 0 0 0 0 0 0 0 0 0 0

Tax 4000 5000 45000 4000 4500 5000 4500 3400 3500 2600 5000 5000

Parking 2000 3000 2500 1500 1200 1800 2000 2500 5500 4000 3000 3000

Debtors 6000 6500 7000 65000 7000 75000 7000 6625 6625 6600 6650 6625

Total cash 196200 193950 200450 190250 196280 190480 186420 182260 176612 180820 180015 180542
flow 0 0 0 0 0 0 0 0 5 0 0 5

Expenses

Electricity 7080 7000 7500 6000 7500 6000 5000 4500 8000 9210 8600 8610

Salary 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500 60500

Advertisemen 4000
t

License 10000

Rent 9830 9830 9830 9830 9830 9830 9830 9830 9830 9830 9830 9830

Water 5250 6000 4500 4000 5000 3500 3000 2500 7000 7310 7450 7490

Total cash out 101660 83330 82330 80330 82830 79830 78330 77330 85330 86850 86380 86430
flow

32
Accumulated 186034 185617 192217 182217 187997 182497 178587 174527 168079 172135 171377 171899
cash/profit 0 0 0 0 0 0 0 0 5 0 0 5

33
5.6 BREAK EVEN ANALYSIS

Sales income 1,500,000

Variable cost

Electricity bill 100,000

Water bill 60,000

Total 160,000

Total sales-variable costs*100

Sales

1575000-160,000=1401000

1,340,000*100 = 89%

1,500,000

FIXED COST

PARTICULARS AMOUNT

License 15,000

Advertisement 70,000

Rent 10,000

Insurance 5,000
Total 100,000

34
Total-fixed costs *100

Sales

1,500,000-10,000*100 =94%

1,500,000

5.7 DESIRED FINANCING

PARTICULARS AMOUNT
Pre-operational cost 40,000
License 15,000
Electricity 100,000
Insurance 50,000
Water 60,000
Rent 120,000
Total 385,000
FIXED ASSETS
Building 100,000
Machines 80,000
Furniture 70,000
Total 250,000

5.8 PROPOSED CAPITALIZATION

PARTICULARS CAPITALIZATION
Personal savings 500,000
Loan from banks 450,000
Personal assets 350,000
Family help 200,000
Total 1,500,000

35
5.9 PROFITABILITY RATIO

Year 1 Gross profit *100=

Sales

21331840*100 = 96%

22379800

Year 2 Gross profit *100 =

1694850*100 =95%

17829950

Year 3 Gross profit*100

Sales

3401759*100 = 98%

34892550

36
 APPENDIX 1
MAP SHOWING BUSINESS LOCATION

POLICE
STATION

KAMAU’S
GREAT SHOP

KCB
BANK

MELONOGASTER
COMPUTER
PACKAGES

MARTIN’S SHOP

OVERFLOWING
LIFE MINISTRY

37
 APPENDIX 2
BUSINESS LAYOUT

SECURITY SECRETARY
OFFICE
MANAGER’S
OFFICE

ENTRANCE
SUPERVISOR’S
OFFICE
PARKING AREA

ACCOUNTANT’S
OFFICE
WORKING AREA

EXIT

SURBODINATE
STAFF WASHROOMS

GENTS LADIES

38