1.

BUSINESS DESCRIPTION

In This Chapter I Will Talk About: Background of The Owner (Sponsor), Nature of Business,
Product (S) Or Service (S), Goals and Objective, Entry Strategy, Growth Strategy.

A) Background of Owner

Sarun Video Service is a business that is owned by Harun Salat. He is a young enthusiastic
entrepreneur (born in 1994) who decided to hold the status of his business at par, after
completing his university education at east Africa institute of certified studies. Harun has a
Diploma in Broadcast (journalism) with over 2 years of experience in the production industry,
working for some of the leading brands in Kenya. Harun lives in Garissa and he is single.

The table below shows how the capital would be raised.

Source of Capital Amount in Kshs. (1,900,000)

Owner’s equity 1,000,000

Loan 900,000

B) Nature of Business

Sarun Video Services, is a standard Video production company that will be located in Garissa
Town next to Equity Bank. I have been able to lease a facility that is big enough to fit into the
design of the kind of standard Video production company that I intend launching and the
facility is located in a corner piece along a major road close to one of the largest residential
estates in Garissa.

The business shall be a sole proprietorship form where Harun Salat will be the liable person to
run and oversee the growth of the business. The major activities are; Video editing, Wedding
coverage, Photography, Funeral coverage, Parties coverage. Other activities include; Retailing
production, retailing video production products and equipment, Repairing and maintaining
cameras among many others.

C) Product and Services

Sarun Video Service, is in the Video production industry to service a wide range of clients and of
course to make profits, which is why I will go all the way to make available a wide range of
production and other related products from top manufacturing brands in Kenya and other
countries of the world.

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My services offerings are listed below;

Video editing, Wedding coverage, Photography, Funeral coverage, Parties coverage,

Consultancy services, Transportation services, Repair and maintenance.

Main feature of service

I offer original products from genuine and most trusted manufacturers and suppliers all over
Kenya and other parts of the world. Sarun Video Services offers a variety of services at an
affordable cost, genuine services that will serve the purpose intended, the services that will
serve you for a long time. The 21st century offers the best in terms of technology. It’s a
technological error. Sarun brings technology to clients and with proper advice from my experts,
the final render of the products becomes much interesting.

D) Goals and Objectives

Goal

To be my boss and to make money.

Objectives

To increase my capital by 10% by end of the year.

Employ two more employees every year.

Increase sales by 10% every month.

Attract a pull of loyal customers by the end of the year.

Open other branches in every two years.

SWOT Analysis

My intention of starting just one outlet of my studio in Garissa is to test run the business for a
period of 2 to 4 years to know if I will invest more money, expand the business and then open
other outlets all over major towns in Garissaand key cities in Kenya.

I am quite aware that there are several studios all over Garissa and even in the same location
where I intend locating mine, which is why I am following the due process of establishing a
business.

I know that if a proper SWOT analysis is conducted for my business, I will be able to position my
business to maximize my strength, leverage on the opportunities that will be available to me,
mitigate my risks and be equipped to confront my threats.

Sarun Video Service employed the services of a Business Analyst with bias in service business to
help me conduct a thorough SWOT analysis and to help me create a business model that will

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help me achieve my business goals and objectives. This is the summary of the SWOT analysis
that was conducted for Sarun Video Service.

Strength:

Ability to control stock on hand, experienced work force and having a loyal customer base are
some of my core strengths. So also, my location, the business model I will be operating,
varieties of payment options, wide range of production and other related products from
different manufacturing brand and my excellent customer service culture will definitely count
as a plus for Sarun Video Service.

Weakness:

A major weakness that may count against me is the fact that I am a new production studio
outlet in Garissa and I don’t have the financial capacity to compete with multi – million shillings’
production studio outlets like Kulmiye Fm, Risala Fm and Master video studios when it comes to
production at rock bottom prices.

Opportunities:

The fact that I am going to be operating my production studio in a corner piece property along a
major road close to one of the largest residential estates in Garissa provides me with unlimited
opportunities to sell my production and other related products to a large number of individuals.

I have been able to conduct thorough feasibility studies and market survey and I know what my
potential clients will be looking for when they visit my Video production company outlet.

Threat:

Just like any other business, one of the major threats that I am likely going to face is economic
downturn. Another threat that may likely confront me is the arrival of a new Video production
company in same location where mine is located. So also, unfavorable government policies may
also pose a threat to businesses such as mine.

Sarun Video Service do not intend to start a production studio business like the usual mom and
pop business around the street corner; my intention of starting a production studio business is
to build a standard studio outlet in Garissa.

Although my production studio business might not be as big as Kulmiye Fm, Risala Fm and
Master video studios but will ensure that I put the right structures in place that will support the
kind of growth that I have in mind while setting up the business.

I will ensure that I hire people that are qualified, honest, customer centric and are ready to
work to help me build a prosperous business.

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E) Entry Strategy

A close study of the Video production company industry reveals that the market has become
much more intensely competitive over the last decade. As a matter of fact, you have to be
highly creative, customer centric and proactive if you must survive in this industry.

I am aware of the stiff competition and I am prepared to compete favorably with other leading
studios in Garissa and throughout Garissa. Sarun Video Service is launching a standard one stop
Video production company that will indeed become the preferred choice of residents of Garissa
and every other location where my outlets will be opened.

One thing is certain; I will ensure that I have a wide range of production and other related
products from leading manufacturers available in my studio at all times. It will be difficult for
customers to visit my studio and not see the type of production they are looking for. My
excellent customer service culture, online service, various payment options and highly secured
facility will serve as a competitive advantage for me.

Lastly, my employees will be taken care of, and their welfare package will be among the best
within my category in the industry meaning that they will be more than willing to build the
business with me and help deliver my set goals and achieve all my aims and objectives. I will
also give good working conditions and commissions to freelancers that I will recruit from time
to time.

Before choosing a location for Sarun Video Service, I conducted a thorough market survey and
feasibility studies in order for us to penetrate the available market. I have detailed information
and data that I am able to utilize to structure my business to attract the number of customers I
want to attract per time.

I hired experts who have good understanding of the production industry to help me develop
marketing strategies that will help me achieve my business goal of winning a larger percentage
of the available market in Garissa.

In order to continue to be in business and grow, I must continue to sell the production and
other related products that are available in my studio which is why I will go all the way out to
employ sales and marketing team to deliver.

In summary, Sarun Video Service will adopt the following sales and marketing approach to win
customers over; Introduce my Video production company by sending introductory letters
alongside my brochure to residents, businesses and other key stakeholders in Garissa and
Kenya as a whole.

Ensure that I have a wide range of production and other related products from different brands
at all times.

Make use of attractive hand bills to create awareness and also to give direction to my store.

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Position my signage/flexi banners at strategic places around Garissa.

Position my greeters to welcome and direct potential customers.

Create a loyalty plan that will enable me reward my regular customers.

Engage in roadshows within my neighborhood to create awareness for my production

company.

List my business and products on yellow pages ads (local directories).

Leverage on the internet to promote my business.

Engage in direct marketing and sales

Encourage the use of word-of-mouth marketing (referrals).

Join local chambers of commerce and industries to network and market my products.

Place adverts on community-based newspapers, radio and TV stations.

My Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to production retail
stores, it is normal for consumers to go to places where they can get production and other
related products at cheaper price.

In view of that, my prices will conform to what is obtainable in the industry but I will ensure
that within the first 6 to 12 months, my products and services will be sold a little bit below the
average price of various Video production companies in Nairobi. I have put in place business
strategies that will help me run on low profits for a period of 6 months; it is a way of
encouraging people to buy into my brand.

Payment Options

The payment policy adopted by Sarun Video Service is all inclusive because I am quite aware
that different customers prefer different payment options as it suits them but at the same time,
I will ensure that I abide by the financial rules and regulation of Kenya. Here are the payment
options that Sarun Video Service will make available to her clients;

Payment via bank transfer, Payment with cash, Payment via credit cards/Point of Sale Machines
(POS Machines), Payment via online bank transfer, Payment via check, Payment via mobile
money transfer, Payment via bank draft.

In view of the above, I have chosen banking platforms that will enable my client make payment
for my production and other related purchases without any stress on their part. My bank
account numbers will be made available on my website and promotional materials to clients
who may want to deposit cash or make online transfer for my products.

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F) Trends That Signal Growth or Opportunities

Those who patronize Video production companies cut across all genders above 18 years with
the financial means, and who own businesses or office hence the target market for the Video
production company business is all encompassing. In essence, my target market can’t be
restricted to just a group of people but all those who reside in and around my studio location.
In view of that, I have positioned my production studio to service the residents of phase v-
phase II,Garissa and every other location where franchise and outlets of my production
company will be located.

I have conducted my market research and feasibility studies and I have ideas of what my target
market would be expecting from me. I am in business to retail a wide range of production and
other related products to the following groups of people and corporate organizations;

Video editing companies, Wedding coverage organizers, Photography companies, Funeral

coverage organizers, Parties coverage organizers, Real Estate Owners, Developers, and
Contractors, Schools (High Schools, Colleges and Universities), Hotels, Sport Facilities and
Individuals and households

The future of a business lies in the number of loyal customers that it has, the capacity and
competence of its employees, its investment strategy and the business structure. If all of these
factors are missing from a business, then it won’t be too long before the business closes down.

One of my major goals of starting Sarun Video Service is to build a business that will survive off
its own cash flow without the need for injecting finance from external sources once the
business is officially running.

I know that one of the ways of gaining approval and winning customers over is to retail my wide
range of products such as Video editing, Wedding coverage, Photography, Funeral coverage,
Parties coverage, a little bit cheaper than what is obtainable in the market and I am well
prepared to survive on lower profit margin for a while.

Sarun Video Service will make sure that the right foundation, structures and processes are put
in place to ensure that my staff welfare are well taken care of. My company’s corporate culture
is designed to drive my business to greater heights and training and retraining of my workforce
is at the top burner.

I know that if that is put in place, I will be able to successfully hire and retain the best hands I
can get in the industry; they will be more committed to help me build the business of my
dreams.