BUSINESS TITLE: KIBET COMPUTER UPGRADING SERVICES

PRESENTED BY: DISMAS KIPNGENO BETT

INDEX NUMBER: 703101/0172

INSTITUTION: KISII NATIONAL POLYTECHNIC

ADMISION NO: R/DICTM23/0918

SUBJECT CODE: 1920/107

DEPARTMENT: ICT

PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL FOR THE AWARD OF CERTIFICATE IN
INFORMATION COMMUNICATION TECHNOLOGY

SUPERVISOR: MR. OSBORNE MOKAYA

SERIES: MARCH 2024

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 DECLARATION
I affirm that this proposal is entirely my own work and has not been previously submitted for certification
in any other institution.

Name: DISMAS KIPNGENO BETT

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

SUPERVISOR: MR. OSBORNE MOKAYA

SIGNATURE……………………….

DATE………………………………

DECICATION
I dedicate this work to those who have supported me throughout my journey, to trainers and my
supervisor who have imparted knowledge and ignite my passion for learning and continuous support of my
supervisor during this work.

ACKNOLEGEMENTS
I am greatly indebted to my supervisor for their academic guidance in this work. I am equally grateful for
my friends and classmates for their support in their support in the course of study.

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EXECURIVE SUMMARY
CHAPTER ONE

BUSINESS DESCRIPTION

The proposed business will be KIBET COMPUTER UPGRADING SERVICES

Kibet computer upgrading services will deal with replacing computer product with new version at the same
product, generally a replacement of hardware system of firmware with a new or better version in order to
bring the system up to date.

CHAPTER TWO

MARKETING PLAN

Kibet Computer Upgrading Service is a business plan focused on providing high-quality computer upgrading
services to customers. With a team of skilled technicians, the company aims to help customers improve the
performance and functionality of their computers. Whether it is upgrading hardware components such as
RAM, hard drives, or graphics cards, or optimizing software performance through updates and configuration
adjustments, Kibet Computer Upgrading Service is dedicated to providing exceptional service to its
customers.

CHAPTER THREE

MARKETING AND ORGANIZATIONAL PLAN

This chapter details the management team for Mannu Computer Upgrading Service thus will consist of
three key individuals. The General Manager will be responsible for overseeing all aspects of the business. The
Sales Manager will be responsible for managing the company's sales strategies and monitoring market
demand. The Assistant Sales Manager will implement the sales strategies and ensure customer satisfaction is
achieved.

CHAPTER FOUR

PRODUCTION AND PRE-OPERATIONAL COST

This chapter will focus of the business operations cost and machineries to be used. It will revolve around

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generating sales by providing consultation services to both individuals and other businesses. The business will
require a salesperson, IT experts, networking equipment, and a technician to perform diagnostic checks on
the diagnosis tools, and computers systems of customers.

CHAPTER FIVE

FINANCIAL PLAN

This chapter will outline the projected revenue and expenses, cash flow projections, capital requirements,
and funding sources for the business. By having a carefully crafted financial plan in place, the enterprise will
be able to make informed financial decisions and manage its cash flow effectively, leading to the achievement
of the financial goals

TABLE OF CONTENTS
DECLARATION II
SIGNATURE…………………………. II
DECICATION III
ACKNOLEGEMENTS IV
EXECURIVE SUMMARY V
CHAPTER 1 1
1.0 BUSINESS DESCRIPTION 1
1.1BACKGROUND OF THE OWNER 1
1.2 BUSINESS NAME 1
1.2.1 LOGO 1
1.3 BUSINESS LOCATION 2
1.4 BUSINESS OWNERSHIP 2
1.5. PRODUCT AND SERVICES 3
1.7 JUSTIFICATION FOR OPPORTUNITY 4
1.8 INDUSTRY 4
1.9 GOALS OF THE BUSINESS 4
1.9.1. LONG TERM GOALS 5
1.9.2 SHORT TERM GOALS 5
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 1.10 ENTRY AND GROWTH STRATEGY 5
1.10.1 ENTRY PLAN 6
1.10.2 GROWTH PLAN 6
CHAPTER 2 7
2.0 MARKETING PLAN 7
2.1 CUSTOMERS 7
2.2 MARKET SHARE 7
2.3 COMPETITION 8
2.4 METHODS OF PROMOTION AND ADVERTISEMENT 8
2.5 PRICING STRATEGY 9
2.6 SALES TACTICS 9
2.7 DISTRIBUTION STRATEGY 10
CHAPTER 3 11
3.0 ORGANISATION AND MANAGEMENT PLAN 11
3.1 MANAGEMENT TEAM 11
3.2 OTHER PERSONEL 11
3.3 RECRUITMENT, TRAINING AND PROMOTION 12
3.3.1 RECRUITMENT 12
3.3.2 TRAINING 12
3.3.3 PROMOTION 12
3.4.1 REMUNERATION AND INCENTIVES 13
3.4.2 INCENTIVES 13
3.5 LICENSES, PERMIT AND BY-LAWS 13
3.5.1 LICENSE 13
3.5.2 PERMITS 13
3.5.3 BY-LAWS 13
3.6 SUPPORT SERVICES 14
3.6.1 BANKING SERVICES 14
CHAPTER 4 14
4.0 PRODUCTION PLANNING AND OPERATIONAL PLAN 14
4.1 PRODUCTION FACILITY 15

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 4.1.1 FIRM LAYOUT 15
4.2 PRODUCTION STRATEGY 16
4.2.1 OPERATION STRATEGY 16
4.2.2 PRODUCTION STRATEGY 16
4.4.1 PRODUCTION PROCESS 16
9.4.2 QUALITY CONTROL 17
4.4 REGULATIONS AFFECTING OPERATION 18
CHAPTER 5 19
5.0 FINANCIAL PLAN 19
5.1 PRE-OPERATIONAL COST 19
5.2 PRO-FOMA BALANCE SHEET 20
5.2.1 BALANCE SHEET AS AT 31ST DEC 2025 20
ST
5.2.2 BALANCE SHEET AS AT 31 DEC 2026 20
5.3 WORKING CAPITAL 21
5.3.1 ESTIMATION OF WORKING CAPITAL 21
5.4 CASH FLOW PROJECTION 23
5.4.1 PROJECTED CASH INFLOW FOR THE YEAR 2025 23
5.4 PROJECTED CASH INFLOW FOR THE YEAR 2026 24
5.5 PROFOMA INCOME STATEMENT GRADING PROFIT AND LOSS 26
5.5.1 PROFORMA INCOME STATEMENT AS AT 31ST DEC 2025 26
5.5.1 PROFOMA INCOME STATEMENT AS AT 31ST DEC 2026 27
5.6. BREAK EVEN ANALYSIS 28
5.6.0 PREPARATION OF BREAK EVEN POINTS 2025 28
5.7 DESIRED FINANCING 28
5.7.1 CAPITALIZATION 29
APPENDIX 31

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vii
 CHAPTER 1
1.0 BUSINESS DESCRIPTION
KIBET COMPUTER UPGRADING SERVICES

Kibet computer upgrading services deals with replacing computer product with new version at the same
product , generally a replacement of hardware system of firmware with a new or better version in order
to bring the system up to date .

1.1BACKGROUND OF THE OWNER

The business will be run by me a young entrepreneur called Dismas Kipngeno Bett who is age of 21 years and
still single. Anyone can easily find me on the address, which is P.o. Box 74.The proposed business plan will be
run by me a entrepreneur who is currently studying and determined to complete my studies at Kisii
National Polytechnic perusing certificate in ICT

1.2 BUSINESS NAME

KIBET COMPUTER UPGRADING SERVICES

Name selection; Derived from my father's name Kibet and added some extension letters to make it
attractive and easy to refer to by customers

1.2.1 LOGO

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 1.3 BUSINESS LOCATION
The business will be allocated along Kitengela highway petrol station. The address will be P.0 BOX4200 Nairobi Kenya

1.4 BUSINESS OWNERSHIP

Sole proprietorship _ The proposed business will operate as a sole proprietorship, with the
ownership and control vested solely in one individual. This legal structure offers simplicity in
management and taxation, but also entails unlimited personal liability for the business's
debts and obligations.

Advantages

a) Start-up costs are low

b) There is maximum privacy

KIBET COMPUTER UPGRADING

SERVICE c) Establishing and operating your business is simple

d) You are the boss

Disadvantages

a) It can be hard to take holidays

b) Your capacity to raise capital is limited

c) Unlimited liability for debts as there's no legal distinction between private and business
assets

d) Many responsibilities like making all the decision are yours.

1.5 Type of business

The business will be in its initial stage, with plans to gradually expand its reach and customer base through
strategic marketing and exceptional service delivery and the services will be as follows:

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1.5. Product and services
Services:

1. Computer hardware upgrades, such as installing new processors, graphics cards, or memory

2. Software installation and updates, including operating system upgrades and security patches

3. Virus and malware removal and system optimization

4. Data backup and recovery services

5. Computer repair services, such as replacing damaged components or fixing hardware failures

Goods:

1. Computer components, such as processors, graphics cards, and memory modules

2. Computer peripherals, including monitors, keyboards, and mice

3. Software licenses, such as operating systems and productivity software

4. Data storage solutions, including external hard drives and cloud storage services

5. Network hardware, such as routers and switches

1.7 JUSTIFICATION FOR OPPORTUNITY

As technology continues to play an increasingly important role in both personal and professional life, the
demand for reliable and efficient computer services is growing rapidly. Many individuals and businesses rely
on their computers to manage critical tasks and data, and any disruption or downtime can have serious
consequences.

Despite this growing demand, many computer repair and upgrade services are expensive, unreliable, or
inconvenient. There is a significant opportunity for a business that can offer high-quality, affordable, and
convenient computer upgrading services to meet this need.

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Additionally, the rise of remote work and digital communication has created new opportunities for IT
consulting services and network configuration. Businesses and individuals need expert advice and support to
ensure that their digital infrastructure is secure, efficient, and effective.

1.8 INDUSTRY
It belongs to the computer services industry. This industry includes businesses that provide computer-
related services, such as computer repair, upgrading, networking, and software installation. The computer
services industry is a growing and dynamic industry, as more individuals and businesses rely on technology
for their daily operations.

1.9 GOALS OF THE BUSINESS

Goals:

1. Expand the business's service offerings to include more advanced and specialized computer services,
such as cybersecurity consulting, cloud computing solutions, and IT project management services.

2. Develop a strong online presence and build a loyal customer base through digital marketing
strategies and customer engagement initiatives, such as online forums, social media, and email
marketing campaigns.

3. Establish strategic partnerships with hardware and software vendors to offer competitive pricing
and access to the latest technology solutions.

4. Expand the business's physical presence through the opening of additional branches in key locations,
both locally and nationally.

1.9.1. LONG TERM GOALS

 The business will offer quality services to all its client as well as creating employment for all the
eligible parties.

1.9.2 SHORT TERM GOALS

 To make profits in providing quality services.

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Objective:

1. Build brand awareness and recognition through targeted advertising and local outreach initiatives,
such as flyers, billboards, and partnerships with local businesses.

2. Develop a strong customer service and support infrastructure, including a comprehensive ticketing
system and a knowledgeable and responsive technical support team.

3. Build a strong reputation for high-quality and reliable services through word-of-mouth
recommendations and customer testimonials.

4. Develop a strong financial management system to ensure sustainable growth and profitability,
including establishing cash flow projections, financial reporting, and budgeting processes.

1.10 ENTRY AND GROWTH STRATEGY

1.10.1 Entry Plan

Kibet Computer Upgrading Services aims to establish a strong presence in the market as a trusted provider
of exceptional computer upgrading solutions. With market research and competitive pricing, we will position
ourselves as the go-to choice for tailored services. Our marketing strategy includes targeted online
advertising, social media campaigns, and strategic partnerships. We prioritize operational efficiency and
quality control to ensure timely service delivery and customer satisfaction. Through careful financial
analysis and continuous monitoring, we will secure funding and adapt our strategies for long-term success.

1.10.2 Growth Plan

Kibet Computer Upgrading Services' growth plan focuses on expanding service offerings and geographic reach
to seize emerging opportunities. We will diversify services by identifying complementary computer-related
solutions through market research. Geographic expansion will target untapped markets after careful
analysis of dynamics, competition, and regulations. Local collaborations and alliances will aid market entry
and credibility establishment. Prioritizing customer satisfaction and high service standards, we will monitor
performance indicators, evaluate strategies, and adapt to evolving market conditions. Through this growth
plan, MANUU Computer Upgrading Services aims to achieve sustainable expansion, bolstered market presence,
and increased profitability.

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 CHAPTER 2
2.0 MARKETING PLAN
2.1 CUSTOMERS
Kibet Computer Upgrading Service is a business plan focused on providing high-quality computer upgrading
services to customers. With a team of skilled technicians, the company aims to help customers improve the
performance and functionality of their computers. Whether it's upgrading hardware components such as
RAM, hard drives, or graphics cards, or optimizing software performance through updates and configuration
adjustments, Mannu Computer Upgrading Service is dedicated to providing exceptional service to its
customers. The company values professionalism, transparency, and customer satisfaction, and strives to
build long-term relationships with its clients through reliable and efficient service.

2.2 MARKET SHARE

Market share chart

9%
10%

Business owners
23% 58%
personal
hospital computers
schools

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Kibet Computer Upgrading Service aims to excel in providing computer-upgrading services in a competitive
market by providing quality services, competitive pricing, and building strong customer relationships.
Focusing on small businesses and technology-reliant individuals, it plans to expand its market share via social
media advertising and networking events. The company hopes to attract more customers and increase its
market share with its reliable and effective services.

2.3 COMPETITION
Kibet Computer Upgrading Service will establish itself as a top provider of computer upgrading services in
Mwea Tebere town by offering unique and specialized services that the competitors do not provide, such as
same-day repair services, personalized and customized computer upgrades, and free computer diagnosis. In
addition, the company will provide affordable pricing, exceptional customer service, and fast turnaround
times to attract more customers. The company will also leverage social media platforms and local
networking events to market its services and build relationships with potential customers. By continually
monitoring its competitors' prices and services, Kibet Computer Upgrading Service will adjust its pricing and
service offerings to remain competitive in the Mwea Tebere town computer services market.

COMPETITION LOCATION %SHARE STRENGTH WEAKNESS STRATEGIES

HENRY Mwea Tebere 45 Flexible to Overcharging Opening
COMPUTER deliver quality clients branches with
REPAIRS services the same
services
ARUNA SMART Mwea Tebere 25 Good relation Few Expand itself
IQ COMPUTER with the operational across the
REPAIRS customers hours Mwea tebere
2.4 METHODS OF PROMOTION AND ADVERTISEMENT
Kibet Computer Upgrading Service will use various methods of promotion to increase brand awareness and
attract more customers. One of the key strategies will be to leverage social media platforms such as
Facebook, Twitter, and Instagram to advertise its services and engage with potential customers. The
company will regularly post about its services, share informative articles, and run social media campaigns
to increase its following and reach. Additionally, Kibet Computer Upgrading Service will attend local
networking events, trade shows, and community events to showcase its services and interact with potential
customers. The company will also offer referral incentives to encourage satisfied customers to refer new

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customers to the business. Finally, the company will distribute flyers and business cards in strategic
locations throughout the town to increase visibility and awareness of its services. Also branded T-shirts will
be given randomly

2.5 PRICING STRATEGY

Kibet Computer Upgrading Service will use a cost-based pricing method, taking into account all costs and
adding a mark-up to cover the desired profit margin. The enterprise will also consider external factors
such as competitors' prices, market demand, and customers' willingness to pay when setting prices. To
remain competitive, the company will regularly review its pricing strategy. Kibet Computer Upgrading
Service will also offer credit terms to customers who require more flexible payment options through
partnerships with financial institutions. To ensure customer satisfaction, the company will provide after-
sales support, including warranties and guarantees. A dedicated customer service department will handle
inquiries and complaints from customers and work to resolve any issues promptly.
2.6 SALES TACTICS
To track my business's performance, Mannu Computer Upgrading Service plans to use sales statistics like the
number of service requests received, revenue generated, and customer satisfaction levels. To boost sales, we
will employ various selling tactics such as promotional discounts, referral programs, and loyalty rewards.
Additionally, we will leverage social media and local networking events to expand our reach and build
strong customer relationships. Collaborating with complementary businesses to offer bundled services or
discounts to their customers is another option we may explore. Indirect sales will be implemented through
an agent program that covers specific geographical areas, where agents will be responsible for promoting
our services and generating leads. We will provide training and support to ensure our agents provide high-
quality customer service. By implementing these strategies, Kibet Computer Upgrading Service aims to
increase sales and establish itself as a leading computer upgrading service provider in the market.

2.7 DISTRIBUTION STRATEGY

To increase market reach, Kibet Computer Upgrading Service will use a combination of direct and indirect
sales channels. Direct sales will be done through social media and local events, leveraging promotional
discounts, referrals, and loyalty rewards. Indirect sales will be via an agent program in specific

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geographical areas, with agents trained and supported to generate leads. Collaboration with
complementary businesses will offer bundled services/discounts to expand the customer base while improving
the brand image.

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 CHAPTER 3
3.0 ORGANISATION AND MANAGEMENT PLAN
3.1 MANAGEMENT TEAM
The management team for Kibet Computer Upgrading Service will consist of three key individuals. The
General Manager will be responsible for overseeing all aspects of the business. The Sales Manager will be
responsible for managing the company's sales strategies and monitoring market demand. The Assistant Sales
Manager will implement the sales strategies and ensure customer satisfaction is achieved.

3.2 OTHER PERSONEL

TITLE QUALIFICATION DUTIES
General Manger Diploma in HRM To offer Managerial skills to the
company and overseeing all
aspects in the business

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Sales Manager Diploma in Accounting and Business To responsible for managing the
Management company sells strategies and
monitoring market demands
Assistant Sales Manager Diploma in Business Management To implement the sales strategies
and ensure customer satisfaction
are achieved
Technicians Diploma in To fix the computer diagnosis
computer science tools
Driver Driving license To transport promotion teams
and carry technicians to field
3.3 RECRUITMENT, TRAINING AND PROMOTION
3.3.1 RECRUITMENT
The recruitment process for Kibet Computer Upgrading Service will involve posting job vacancies, receiving
resumes, conducting interviews, and selecting the most qualified candidates for each role based on their
experience and qualifications.

3.3.2 TRAINING
To ensure that the employees of Kibet Computer Upgrading Service have the necessary skills and knowledge
to perform their roles effectively, training programs will be developed and implemented. The programs will
cover technical skills, customer service, and management training.

3.3.3 PROMOTION
Our promotion strategy for Kibet Computer Upgrading Services focuses on targeted digital marketing to
increase brand awareness and credibility. This includes creating a user-friendly website highlighting our
services and utilizing SEO techniques for better online visibility. Social media platforms will play a key role,
with engaging content and paid advertising campaigns to expand our reach. Partnerships with
complementary businesses will provide mutual referrals and exposure. Traditional marketing methods like
print ads, direct mail, and participation in industry events will be explored. A customer rewards program
and referral incentives will encourage loyalty and word-of-mouth marketing. Continuous monitoring and
analysis will refine our strategies. Through this comprehensive promotion strategy, we aim to establish
MANUU Computer Upgrading Services as the trusted choice for computer upgrading solutions.

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 3.4.1 REMUNERATION AND INCENTIVES
.

3.4.2 INCENTIVES
To encourage customer loyalty and word-of-mouth marketing, we will implement two key incentives.
Firstly, we will introduce a Loyalty Rewards Program, offering discounts or exclusive benefits to customers
who repeatedly choose our computer upgrading services. This program aims to foster long-term
relationships with our clients and incentivize them to continue utilizing our services.

Additionally, we will establish a Referral Program to reward customers who refer new clients to us.
Through this program, customers will receive incentives such as discounts on future services or referral
bonuses. By incentivizing referrals, we aim to tap into the power of word-of-mouth marketing, expanding
our customer base and increasing brand visibility.

3.5 LICENSES, PERMIT AND BY-LAWS

3.5.1 LICENSE
We will obtain the necessary licenses and permits required to operate Kibet Computer Upgrading Services.
This ensures compliance with regulatory requirements and instils trust and confidence in our customers,
solidifying our reputation as a legitimate and professional service provider.

3.5.2 Permits
We will diligently acquire the required permits to operate Kibet Computer Upgrading Services. Complying
with legal regulations ensures our business operates in a lawful and responsible manner, building trust with
customers and demonstrating our commitment to professionalism and adherence to industry standards.

3.5.3 By-Laws
We will establish clear and comprehensive by-laws that govern the operations of Kibet Computer Upgrading
Services. These by-laws will define internal processes, roles, and responsibilities, ensuring efficient and
consistent business operations while promoting transparency, accountability, and compliance with legal and
ethical standards.

3.6 SUPPORT SERVICES

In addition to our internal support services, Kibet Computer Upgrading Services will establish partnerships
with external providers to enhance the overall customer experience. We will collaborate with reputable

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vendors and specialists to offer additional support services such as data recovery, software installation, and
hardware repairs. By leveraging the expertise and resources of these external partners, we can provide
comprehensive solutions and ensure that our customers receive the highest level of support and assistance
for their computer upgrading needs.

3.6.1 BANKING SERVICES

Kibet Computer Upgrading Services will establish strong relationships with banking institutions to access a
range of essential financial services. We will collaborate with reputable banks to set up business accounts for
efficient cash management and transactions. These banking services will include merchant services to accept
various payment methods, credit lines for working capital needs, and digital banking platforms for
convenient financial management. By leveraging reliable banking services, we can ensure smooth financial
operations and enhance the overall efficiency of our business.

CHAPTER 4
4.0 PRODUCTION PLANNING AND OPERATIONAL PLAN
The primary focus of the business operations will revolve around generating sales by providing consultation
services to both individuals and other businesses. The business will require a salesperson, IT experts,
networking equipment, and a technician to perform diagnostic checks on the diagnosis tools , and computers
systems of customers.

4.1 PRODUCTION FACILITY

The business will primarily operate in an office setting rather than a production facility. However, the
business may require some basic equipment such as computers, printers, and networking equipment for day-
to-day operations. These items will be housed in a secure and organized workspace that allows for efficient
workflow and effective collaboration among team members. The focus will be on providing high-quality
consultation services rather than producing physical products, so the production facility requirements will
be minimal.

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4.1.1 FIRM LAYOUT

4.2 PRODUCTION STRATEGY

4.2.1 OPERATION STRATEGY
The operation strategy for Kibet Computer Upgrading Services is centered around providing high-quality
computer services to customers while ensuring efficient and cost-effective operations. The strategy
prioritizes customer satisfaction, continuous improvement, lean and agile organization, and strong
partnerships and collaborations with vendors and other industry players. By following these principles, the
business aims to achieve long-term success and growth.

4.2.2 PRODUCTION STRATEGY

The production strategy for Kibet Computer Upgrading Services prioritizes delivering high-quality computer
services to customers while maintaining efficient and streamlined operations. The strategy involves investing
in ongoing staff training and development, leveraging technology solutions to streamline processes,
optimizing scheduling and resource allocation, and implementing quality control processes to ensure that all
services meet customer expectations. By following these principles, the business aims to deliver exceptional
service to customers and achieve long-term success and growth.

4.4.1 PRODUCTION PROCESS

1. Customer requests a specific service - Customers request a specific computer service, such as an
upgrade or repair, from Kibet Computer Upgrading Services.

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2. Service request is logged into the system and assigned to a technician - The service request is
recorded in the system and assigned to a technician who has the necessary skills and resources to
complete the service.

3. Technician reviews the service request and determines necessary equipment and resources - The
technician reviews the service request and determines what equipment and resources are needed to
complete the service, including any necessary hardware, software, or other tools.

4. Technician begins service process, using specialized tools and equipment as needed - The technician
begins the service process, using specialized tools and equipment as needed to complete the service.

5. Technician uses software tools to track progress, update customer on status, and ensure
completion - The technician uses software tools to track the progress of the service, update the
customer on the status of the service request, and ensure that all necessary steps are completed.

6. Technician communicates with customer to provide updates and answer questions - The technician
communicates with the customer throughout the service process, providing updates on progress and
answering any questions that arise.

7. Technician performs final quality check to ensure high standard - Once the service is complete, the
technician performs a final quality check to ensure that the work has been completed to a high
standard.

8. Service request is marked as complete and customer is notified - The service request is marked as
complete in the system, and the customer is notified that the service is ready for pickup.

9. Business prioritizes customer satisfaction, sustainability, and efficiency throughout the process -
Throughout the product process, the business prioritizes customer satisfaction, sustainability, and
efficiency to ensure that high-quality computer services are delivered efficiently and effectively.

9.4.2 Quality Control

1. Standard operating procedures (SOPs) - Developing SOPs can help to ensure consistency in the
service delivery process. SOPs should clearly outline each step in the service process, including the
necessary equipment and resources, and any quality checks that need to be performed.

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2. Quality checklists - Providing technicians with quality checklists can help to ensure that each step
of the service process is completed correctly. The checklist should include all necessary quality
checks, such as verifying that all components are installed correctly and that the computer is
functioning properly after the service.

3. Staff training and development - Providing ongoing training and development opportunities to staff
can help to ensure that they are up-to-date on the latest technologies and service best practices.
This can help to improve the quality of the services offered and ensure customer satisfaction.

4. Customer feedback surveys - Implementing customer feedback surveys can help to identify areas for
improvement in the service delivery process. The feedback can be used to refine the service process
and ensure that customer needs are being met.

4.4 REGULATIONS AFFECTING OPERATION

1. Business licensing requirements - The business may need to obtain certain licenses and permits from
the government to operate legally. Failure to comply with these requirements can result in fines or
even closure of the business.

2. Data privacy regulations - The business may be required to comply with data privacy regulations
to protect customer data. These regulations can vary depending on the region and could include
requirements such as obtaining customer consent before collecting data or implementing specific
data security measures.

3. Environmental regulations - Depending on the location and nature of the business, the government
may impose regulations on waste management and environmental impact. For example, the
business may need to properly dispose of old computer components or comply with energy efficiency
standards.

4. Labor laws - The business may need to comply with labor laws regarding employee rights, wages,
and working conditions. These laws can vary depending on the location and could include
requirements such as minimum wage rates, mandatory breaks, and overtime pay.

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 5. Tax regulations - The business may be required to comply with tax regulations, including income
tax, sales tax, and payroll tax. Failure to comply with tax regulations can result in fines or legal
action.

6. Intellectual property laws - The business may need to protect its own intellectual property, such
as trademarks, patents, or copyrights. At the same time, the business may also need to respect the
intellectual property of others and avoid infringing on their rights.

CHAPTER 5
5.0 FINANCIAL PLAN
It will outline the projected revenue and expenses, cash flow projections, capital requirements, and funding
sources for the business. By having a carefully crafted financial plan in place, the enterprise will be able to
make informed financial decisions and manage its cash flow effectively, leading to the achievement of the
financial goals.

5.1 PRE-OPERATIONAL COST

The following list shows cost to be incurred before the start of the proposed business.

ITEMS KSH

Advertisement 15,000

Registration 10,000

Recruitment 3,000

Rent 4,500

Machinery 60,000

Interview Cost 3,000

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Business Installation 3,000

TOTAL 98,500

5.2 PRO-FOMA BALANCE SHEET

5.2.1 BALANCE SHEET AS AT 31ST DEC 2025

Assets Amount Liabilities & Equity Amount

Opening Stock 14,000
Purchases 180,000
Cost of Goods Sold 176,000
Closing Stock 4,000
Gross Profit 340,000
Total Assets 194,000
Expenses
Water 1,200
Advertisement 10,100
Salaries 866,000
Transport 12,000
Stationary 12,000
Tax 33,000
Electricity 12,000
Repairs & Maintenance 12,000
Rent 180,000
Telephone 12,000
Postage 12,000
Hazards 12,000

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Total Liabilities & Equity Net Profit 47,700

Total 1,224,000 Total 1,224,000

5.2.2 BALANCE SHEET AS AT 31ST DEC 2026

Assets Amount Liabilities and Equity Amount

Opening Stock 14,000
Purchases 180,000
Goods Available for Sale Cost of Goods Sold 190,000
Closing Stock 4,000
Gross Profit 1,315,200
Total Assets 1,509,200
Expenses
Water 11,400
Advertisement 10,100
Salaries 866,000
Transport 11,900
Stationary 11,500
Tax 33,000
Electricity 12,000
Repairs & Maintenance 11,000
Rent 180,000
Telephone 11,500
Postage 12,000
Hazards 12,000
Total Liabilities and Equity Net Profit 132,800

Total 1,642,000 Total 1,642,000

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5.3 WORKING CAPITAL
5.3.1 ESTIMATION OF WORKING CAPITAL

CURRENT ASSETS AMOUNT CURRENT LIABILITIES AMOUNT

Cash at hand 435,000 Creditors 10,000

Bank 200,000 Salaries 120,000

Debtors 15,000 Taxation 10,000

TOTAL 650,000 TOTAL 140000

Working Capital = Current Assets - Current Liabilities

Current Assets = Cash at Hand + Bank + Debtors

= 435,000 + 200,000 + 15,000

= 650,000

Current Liabilities = Creditors + Salaries + Taxation

= 10,000 + 120,000 + 10,000

= 140,000

Working Capital = Current Assets - Current Liabilities

= 650,000 - 140,000

= 510,000

20
5.4 CASH FLOW PROJECTION
5.4.1 PROJECTED CASH INFLOW FOR THE YEAR 2025

5.4 PROJECTED CASH INFLOW FOR THE YEAR 2026

21
22
5.5 PROFORMA INCOME STATEMENT GRADING PROFIT AND LOSS
5.5.1 PROFORMA INCOME STATEMENT AS AT 31ST DEC 2025

OPENING STOCK 14,000 SALES 516,000

ADD PURCHASES 180,000

GOODS AVAILABLE FOR SALE 194,000

LESS CLOSING STOCK 4,000

COST OF GOODS SOLD 176,000

GROSS PROFIT C/D 340,000

TOTAL 516,000 TOTAL 1,224,000

ALL EXPENSES

WATER 1,200

ADVERTISEMENT 10,100

SALARIES 866,000

TRANSPORT 12,000

STATIONARY 12,000

TAX 33,000

ELECTRICITY 12,000

REPAIRS & MAINT 12,000

RENT 180,000

TELEPHONE 12,000

23
POSTAGE 12,000

HAZARDS 12,000

TOTAL 1,176,300

NET PROFIT 47,700

5.5.1 PROFORMA INCOME STATEMENT AS AT 31ST DEC 2026

OPENING STOCK 14,000 SALES 1,505,200

ADD PURCHASES 180,000

GOODS AVAILABLE FOR SALE -

LESS CLOSING STOCK 4,000

COST OF GOODS SOLD 190,000

GROSS PROFIT 1,315,200

ALL EXPENSES

WATER 11,400

ADVERTISEMENT 10,100

SALARIES 866,000

TRANSPORT 11,900

STATIONARY 11,500

TAX 33,000

ELECTRICITY 12,000

REPAIRS & MAINT 11,000

RENT 180,000

TELEPHONE 11,500

24
POSTAGE 12,000

HAZARDS 12,000

TOTAL 1,182,400

NET PROFIT 132,800

5.6. BREAK EVEN ANALYSIS

5.6.0 PREPARATION OF BREAK EVEN POINTS 2025

FIXED EXPENSES KSH

WAGES 120,000
RENT 56,000
STATIONARY 12,000
TOTAL 188,000

VARIABLE EXPENSES
ELECTRICITY 13,000
TELEPHONE 15,000
TREANSPORT 15,000
ADVERTISEMENT 9,000
POSTAGE 14,000
WATER 13,000
REPAIR & MAINTENANCE 12,000
TOTAL 91,000

5.7 DESIRED FINANCING

FIXED EXPENSES KSH
WAGES 220,000
RENT 56,000
STATIONARY 12,000

25
 TOTAL 288,000

VARIABLE EXPENSES
ELECTRICITY 13,000
TELEPHONE 15,000
TREANSPORT 15,000
ADVERTISEMENT 9,000
POSTAGE 14,000
WATER 14,000
REPAIR & MAINTENANCE 13,000
TOTAL 93,000

BREAKEVEN POINT= FIXED COST X SALES

SALES – VARIABLES

288,000*516,000

516,000-91,0000= KS 65,000

5.7.1 CAPITALIZATION
FIXED EXPENSES KSH
WAGES 220,000
RENT 56,000
STATIONARY 12,000
TOTAL 288,000

VARIABLE EXPENSES
ELECTRICITY 14,000
TELEPHONE 17,000
TREANSPORT 17,000
ADVERTISEMENT 10,000

26
 POSTAGE 14,000
WATER 16,000
REPAIR & MAINTENANCE 13,000
TOTAL 101,000

BREAKEVEN POINT = FIXED COST X SALES

SALES-VARIABLES

288,000*1,505,020

288,000-101,000 = KS 187,000

27
 APPENDIX
1.1. Sketch map for the business location.

AHERO

ibet Computer

pgrading service

1.2 Various data entry offered in chart.

Market share chart

9%
10%

Business owners
23% 58%
personal
hospital computers
schools

28
1.3 Office layout.

29