DEMI ICON TECHNOLOGIES

SUN TECH COMPUTERS LIMITED

TITTLE : BUSINESS PLAN.

INSTITUTION : THE KITALE NATIONAL POLYTECHNIC.

ADM NO : IT_DICT/291192/22

BUSINESS NAME : DEMI ICON TECHNOLOGIES.

PRESENTER :KAYINZIRI VIVIAN.

SUPERVISOR : MADAM MARY NDUTA.

PRESENTED TO : KNEC

i
 DECLARATION

I declare that thers is my original work and has never been submitted by anybody else to any examining body
elsewhere or institution for the purpose of award of diploma in Information Communication Technology
which is bound to be legit and more lucrative.

i
 DEDICATION

I dedicate thers work to my loving and hardworking parents, friends and other mentors for their tireless
support in ensuring that my business plan is completed and to my brother for hers financial and moral
support. God. Has made it concrete sure that I give it all it takes to finish that which I have started. And my
supervisor Madam Mary Nduta for the good job she has been doing to ensure that my business plan is
successful.

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 ACKNOWLEDGEMENT

I thank the Almighty God WHO obviously guided me to work even during the night. Without hers grace
thers work would not become a reality. I also thank my parents who greatly motivated me in making my
business plan splendid . I do feel happy in taking thers opportunity to sincerely thank my supervisor Madam
Mary Nduta for her valuable guidance and advice she inspired to me so as to work on thers business plan.
Her willingness to motivate me contributed tremendously to my work.
I am thankful to all my lecturers and friends who have always been helping and encouraging me, I have no
valuable words to express my gratitude towards them.

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 ABBREVIATION
KNEC – Kenya National Examination Council.
SWOT – Strength Weakness Opportunities Threats.
CCTV - Closed Circuit Television.

HTTP-Hyper Text Transfer protocol.

SMTP-Simple Mail Transfer Protocol.

Table of Contents
DECLARATION.......................................................................................................................i
DEDICATION..........................................................................................................................ii
ACKNOWLEDGEMENT......................................................................................................iii
ABBREVIATION....................................................................................................................iv
EXECUTIVE SUMMARY.....................................................................................................vi
CHAPTER ONE.......................................................................................................................1
BUSINESS DESCRIPTION.............................................................................................................................1
1.1 INTRODUCTION...............................................................................................................................2
1.2 NAME OF THE BUSINESS...............................................................................................................2
1.3 BUSINESS LOCATION.....................................................................................................................2
1.4 OWNER’S PROFILE..........................................................................................................................2
1.5 FORM OF OWNERSHIP....................................................................................................................2
1.6 TYPE OF BUSINESS..........................................................................................................................2
1.7 PRODUCTS.........................................................................................................................................2
1.8 THE INDUSTRY.................................................................................................................................2
1.9 GOALS OF THE BUSINESS.............................................................................................................2
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 2.0 ENTRY STRATEGIES AND GROWTH...........................................................................................2
CHAPTER TWO......................................................................................................................4
MARKET PLAN...............................................................................................................................................5
2.1 INTRODUCTION...............................................................................................................................5
2.2 CUSTOMERS......................................................................................................................................5
2.3 MARKET SHARE...............................................................................................................................5
2.4 COMPETITION..................................................................................................................................5
2.5 METHODS OF PROMOTION...........................................................................................................5
2.6 PRICING STRATEGIES.....................................................................................................................5
2.7 SALES TACTICS................................................................................................................................5
2.8 DISTRIBUTION STRATEGIES.........................................................................................................5
CHAPTER THREE.................................................................................................................4
ORGANIZATION MANAGEMENT PLAN..................................................................................................5
3.1 INTRODUCTION..............................................................................................................................5
3.2 ORGANIZATION STRUCTURE......................................................................................................5
3.3 MANAGEMENT PERSONNEL........................................................................................................5
3.4 RECRUITMENT, TRAINING AND PROMOTION METHOD......................................................5
3.5 REMUNERATION AND INCENTIVES FOR PERSONNEL.........................................................5
3.6 LICENSES, PERMITS AND BY-LAWS...........................................................................................5
3.7 OTHER SUPPORT SERVICES..........................................................................................................5
CHAPTER FOUR....................................................................................................................4
PRODUCTION/OPERATION........................................................................................................................5
4.1 INTRODUCTION...............................................................................................................................5
4.2 PLANT FACILITIES..........................................................................................................................5
4.3 PRODUCTION STRATEGY..............................................................................................................5
4.4 PRODUCTION PROCESS..................................................................................................................5
4.5 REGULATIONS AFFECTING OPERATIONS.................................................................................5
CHAPTER FIVE......................................................................................................................4
FINANCIAL PLAN...........................................................................................................................................5
5.1INTRODUCTION...............................................................................................................................5
5.2PRE-OPERATIONAL COST..............................................................................................................5
5.3PROJECTED CASHFLOW................................................................................................................5

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 5.4PROFOMA BALANCE SHEET.........................................................................................................5
5.5BREAK-EVEN ANALYSIS...............................................................................................................5
5.6EXPECTED PROFITABILITY RATIOS............................................................................................5
5.7DESIRED FINANCING......................................................................................................................5
5.8PROPOSED CAPITATION.................................................................................................................5

EXECUTIVE SUMMARY

1 BUSINESS DESCRIPTION

The entrepreneur grew up in a family where both parents were engaged in different businesses, and he
therefore got the knowledge and skills about the business. The entrepreneur decided to come up with a
business which will be Called DEMI ICON TECHNOLOGY. The proposed business will deal with the sell
of Computer Services such as; domains, webhosting, Article writing and production of jingles and sound
trucks for music studios. The proposed bussines will be located in a trading center in Bungoma town. The
owner of the business took hers studies from Kitale National Polytechnic where he did a business-oriented
course. The capital needed to start the business is Kshs.500000 and the form of the business will be sole
proprietorship.

2 MARKETING PLAN

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The entrepreneur intends to market hers products and services to the individual customers and the
commercial customers where the owner will target the commercial customers the most because they usually
order the proposed services in large scale. The owner targets a population of 25000 people which is equal to
60% of the total population and cover an area of 50km 2. The owner of the business will use posters,
billboards, social media, use of TV and radios in advertising the business. The owner aims to market hers
services in direct and indirect channels of distribution. The form of transport will be through telegram and
also posters since they are readily available..

3 ORGANIZATIONAL /MANAGEMENT PLAN

The proposed business will be headed by the manager who will be the owner of the business. The proposed
business will have the key management personnel who will be the manager, ass manager and the accountant,
apart from those there will be also other personnel including the computer experts, security and the cleaners
whereby each and every person has the qualifications in order to be employed. The advertisements will be
done for the job vacancies. Increment of the salary will be done as the profit also increases, promotions will
be done to the well discipline and hardworking employees. The proposed business will get license and the
permit from the county council office to cover the business.

4 PRODUCTIONS/OPERATIONAL PLAN

The proposed business will have enough space to keep the goods and some of the equipment needed to be
used in running the business, there will be facilities needed by the business such
a ;printers,wifi ,computers ,monitors, etc. The management intends to adopt strategy that will minimize the
cost of operation of the business to grow. The business will have both fixed and current assets, the Services
will be of high quality. The business will use all means to overcome and face the challenges.

5 FINANCIAL PLANS

The proposed business will have some requirements; the business will require a capital of Ksh.500,000 to
start the business. THE DEMI ICON TECHNOLOGYwill be moderate and the first year’s profit. The
project cash flow statement on a monthly basis will add up to Ksh 500,000. The proposed profit in years will
be 1.5 million shillings. The proposed business capital will be Ksh. 500000.
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 CHAPTER ONE

BUSINESS DESCRIPTION

1.1 INTRODUCTION

The entrepreneur grew up in a family where both parents were engaged in the business of selling computer
accessories and other Internet Services where she acquired the knowledge and skills about the business. The
entrepreneur learnt a lot and also become interested in the business and decided to start which will be called
DEMI ICON TECHNOLOGIES. She chose the name because it will attract customers. The proposed
business will deal with the sell of computer accessories such as flash disks and other computer solutions .
Thee proposed business will be a trading center at Bungoma town. The business will be located opposite
khetias supermarket. The owner of the business choose that place because of availability of security and the
presence of the ready market, availability of good transport and availability of labor because of because of
available people around the place.
The entrepreneur being a graduate of the KITALE NATIONAL POLYTHECNIC and did business
management which made her to choose the course knowing that that she acquire the knowledge to help her
run the business smoothly.
The form of ownership of the proposed business will be a sole proprietorship kind of business. The type of
business will offer services because of the ready market and the owner chose that type because she can
manage and control it properly.
The owner expects to have competitor and due to thers she will use all methods to make sure that she
improve the business. The owner will reduce price and increase stock in order to attract more customers. She
intends to make her community look smart and neat and in the entry to the market the owner will use
advertisement in radios and television as well as social media She will put notices in different places
showing the direction of the location of the proposed business.

1.1 NAME OF THE BUSINESS

The name of the business will be DEMI ICON TECHNOLOGIES . The entrepreneur chose the name
because it will attract the customers. The products to be produced and services to be offered will be modern
and of high quality. The entrepreneur also chose the name because it will portray the image of business that
the entrepreneur will engage in.

1.2 BUSINESS LOCATION

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The proposed business will be located in a trading center in Bungoma town, at Uchumi Plaza 1 st floor, room
number two along Ukwala street.The owner of the business chose the place because of good security due to
the existence of administration police post around the region, presence of ready market, availability of good
roads for transport and available labour from the people living around there.
The contact address of the business will be.
P.O BOX 2651- 50100
BUNGOMA

TELEPHONE: 0725290272
EMAIL: Kayanzirivivian@gmail.com
Facebook:DEMI ICON TECHNOLOGIES.

MAP REPRESENTATION OF THE BUSINESS

DEMI ICON
TECHNOLOGIE
S KIBABII UNIVERSITY

APPROVED SCHOOL

SKYPRINT
TECHNOLOGIE
S

UMOJA GROUP

MOON LIGHT 2 BUNGOMA

COMPUTER KMTC
ACCESSORIES.
The place will be facilitated with social amenities like electricity, water, toilet and shops, making it suitable
place

1.3 OWNER’S PROFILE.

The business will be owned by KAYANZIRI VIVIAN and resides at Kibabii in Bungoma town
She later joined The Kitale National Polytechnic for further studies in Diploma in Information
Communication Technology up to date.
Following her skills, the entrepreneur will be able to run the business well. The entrepreneur will be seeking
for advice from other managers from other industries that are well performing to gain more experience.

1.4 FORM OF BUSINESS OWNERSHIP

The business will be a sole proprietorship because of the following reason.
Quick decision making
A sole proprietor being the single owner has full freedom to take business decision without consulting others.
Right decision will be taken at right time.
Confidentiality of information
As a sole proprietor can keep all business information to himself i.e confidential and maintain secrecy
because he is not bound by law to publish hers accounts.
Simple formation and closure
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Not many legal formalities are required to start as sole proprietor in business. Also the closure of the
businesses can also be done easily.
Direct intuitive of prophet
The proprietor gets all the profits of the business as there is no anyone else to share the business profit. It is a
big incentive the more he works the more he gains.
Sense of accomplishment and achievement
When the business is successful it leads to self-certification of the sole proprietor and creates a sense of
accomplishment and achievement.
Flexibility of operations
Under sole proprietorship all decisions are taken by a single individual therefore, there are no delays and the
business quickly adapts itself to the changing business environment.
Personal Touch
In a sole proprietorship firm generally all the work is carried out by the proprietor himself so he is able to
maintain a direct contact with the customers and employees and can make change in products according to
demands of customers.
Encourages self-employment
Sole proprietorship form business organization leads to creation of employment opportunities of people. Not
only is the owner self-employed sometimes you also create job opportunities for others.

1.5 TYPE OF BUSINESS

Thers type of business in Bungoma town will be of higher profits because of the population. There will be
high quality material while transportation and means of communication is easy as per the location. The
business will be operated and conducted from day-to-day basis to ensure there is good income to generate the
good profit in order to give the outcome of expanding the business.
The business will be easy to manage and control since it is small. The entrepreneur will able to carry out the
stock checking without any disturbance.

1.6 PRODUCTS

The product offered by DEMI ICON TECHNOLOGIES includes the following;

 Keyboards.

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  Mouse.
 Hard disks.
 Routers.
 Surge Protectors.
 Graphics Cards.
 Ram-Memory Cards.
 Pen drives.

SERVICES
The business will offer quality services which include the following.
 E-Citizen Services
 Software Solutions
 Web Design
 Waiver Application
 DL Renewal
 CR12 Application
 AGPO

1.7 BUSINESS INDUSTRY

DEMI ICON TECHNOLOGY will be under the trade industry. The enterprise will be medium sized with the
capital layout of Kshs 500,000. There will be a modern technology used in the business with stock items and
accounting systems computerized. Thers would also be a capital intensive business for it will have eleven employees
who will help deliver the services immediately. The survey taken in the industry in Bungoma county indicates that
there will be a high turnover with an average sales level on the capital employed.

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 1.8 GOALS OF THE BUSINESS

The basic aim of the business will be to improve the people living standards through employment of people
to work in the business premises. The following wiil be the short term goals of the business: Make profits,
Fulfill ambition of the owner ,Source of employment to the community, Promote living standards in the area and
Improve education standards in the area. The long term goals of the business will be: b est service provider in the
industry, best network with many branches in the area and Expansion of the business. Other goals of the business will
be: To attract more customers in the premises the entrepreneur to make entrance in market, Use the right
prices for the services offered, To have good infrastructure due to upcoming center, Profit maximization.

JUSTIFICATION OF BUSINESS
DEMI ICON TECHNOLOGIES is a legalized business by the national government and the county
government.

1.9 ENTRY AND GROWTH STRATEGIES

ENTRY STRATEGIES

Before putting up strategy, the following will be done in order to ensure the business will be accepted to the
market: there will be use advisement which will be done through the local radio Citizen which has a large number
of listeners, Posters and billboards will be put on all major roads e.g. Bungoma –Webuye road other places, there will
be use of social media platforms, television and newspapers and all these will lead to the business location.

GROWTH STRATEGY

The efficiency service will enable the enterprise to grow rapidly. There will be need for the enterprise to own a pick-up
for fast delivery even to distant customers. As the business grows, it will open branches to make the service even closer
to intend customers and delivery cheaper and faster. T he price of the products and services will be fair to attract
more customers.

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SWOT ANALYSIS
NAME STRENGTH WEAKNESSES OPPORTUNITIES TREATS
DEMI ICON To use high and Don’t have the High demands of Having
TECHNOLOGIES. new technology constant goods technology
To promote goods customers Having seasonality changes
and quality Highly taxes changes Government
products regulation goods.
To have well
equipped products
SKYPRINT Have operated for Their pricing is  Improved
TECHNOGIES. longer period high method of selling
Lack of team goods
work Regulations in
Delays in paying tax payment
salary Stiff competition
Low quality
products
MOON LIGHT It has good No time Stiff competition
COMPUTER invention of management
ACCESSORIES. products High pricing of
the products
Low quality
products

The business will lay strategies in order to allow for its growth and expansion

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 CHAPTER TWO

MARKETING PLAN

2.0 INTRODUCTION

The proposed business will be a trading center at Bungoma town. The business will be located opposite
Khetias supermarket. The owner of the business chose that place because of availability of security and the
presence of the ready market, availability of good transport and availability of labor because of available
people around the place.
The entrepreneur being a graduate of the KITALE NATIONAL POLYTHECNIC and did business
management which made hers to choose the course knowing that that she acquires the knowledge to help her
run the business smoothly
The capital requires to start the proposed business will be Ksh 500,000
The form of ownership of the proposed business will be a sole proprietorship kind of business. The type of
business will offer services because of the ready market and the owner chose that type because she can
manage and control it properly.
The owner expects to have competitor and due to thers she will use all methods to make sure that she
improves the business. The owner will reduce price and increase stock in order to attract more customers.
She intends to make her community look smart and neat.

2.1 CUSTOMERS

The organization will target customers who will include.

1. INDIVIDUAL CUSTOMERS
Thers will be the daily customers who will be walking in on a daily basis at their convenient time.
The customers will include friend’s family and neighbors and other citizens within the town and
entire catchment area.
2. ORGANIZATION CUSTOMERS

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 The organization customers targeted will include schools such as Kibabii University, KENYA Medical
Training College and many other institutions.
3. OTHER CUSTOMERS
Other customers include the passers-by and other visitors to Bungoma town in need of the business
services and products.

2.2MARKET SHARE

The business is expected to attract more customers due to the quality of products and service and the high
population of students within the town. THE DEMI ICON TECHNOGY will attract many customers from
commercial sector learning institution and also from general public.
The business intends to dominate up to 60% of the market share because of the quality services that will be
offered and the quality of products produced. DEMI ICON TECHNOLOGY competitors will hold at most
40% of the market share.
The estimated number of the people within the area is 60000.
Demi Icon Technology
If 100% = 6000x 60
60% 100
=3600 people
Skyprint Technology
If 100% = 6000x 15
15% 100
=1500 people
Moon Light Computer Accessories
If 100% = 6000x 25
25% 100
=1900 people

Figure 3.1 Sales

9
 Sales

15%

25%
60%

2.3 COMPETITION
The main competitors to business will be;
 Skyprint Technology
 Moon Light Computer Accessories
The two competitors have been in the market for a period of four years and through the research that the
entrepreneur did they have do not satisfy the people within Bungoma, due to their poor products and services.

Skyprint technology

It will be located one kilometer away from the proposed DEMI ICON TECHNOLOGY.
Despite the fact that they have been in the market for so long, they are still struggling to retain their
customers as many of them are opting to buy their products and services from outside Bungoma town.

It will be selling high quality products and giving outstanding services to get rid of all the customers.

Moon Light Computer Accessories

It will be located two kilometers away from the proposed DEMI ICON TECHNOLOGIES Building
They have been on the market for more than four years but they have poor customer service despite having
products of a better quality.

10
It will take that advantage to give all her customers exemplary services to get rid of more customers.

2.4METHODS OF PROMOTION

Demi Icon Technology owner has laid strategies on the modes of promotion that he is going to use once the
business starts running. Below is a brief definition of each.

ADVERTISEMENT

The entrepreneur will have to persuade people through advertisements by use of billboards, posters,
newspapers and posters. Thers will lead to the good growth of business whereby more goods will be sold to
more customers.

The table below gives a summary of the advertisement methods.

MEDIA FREQUENCE AMOUNT (KSH)

Newspaper One month 5,000

Bill boards Once a year 2,000

Posters Two months 1,000

TOTAL 8,000

PROMOTION STRATEGY

Through thers method there are ads that will help the business to attend the main objective of making profit.
Thers will promote the methods such as;

SERVICES

Unlike our competitors we will offer the high-quality services with reduced prices, affordable to our
customers.

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SUPPLIERS

We will be able to offer the supply of products to our customers to facilitate the food delivery of products to
our customers for easy and steady supply of goods.

PRODUCT PROMOTION

The product of the business will be enhanced to the customers mainly through offering sampling of good to
their customers to enable them to see the quality of the goods found at DEMI ICON TECHNOLOGY.

2.5 PRICING STRATEGY

For the Demi Icon Technology business to succeed, the entrepreneur will determine the price of the services
that will be offered and promotion. Customers who will be purchasing products in bulk will be offered free
transport as a form of motivation. The selling prices of our products will be calculated basing on the cost and
also the pricing objectives of the firm which includes return on investment stability in prices,maintenance
and increase of market share meeting competition and finally maximizing profits
Other factors to consider in pricing determination includes the maximum and minimum price controls that
are normally set by the government and also competitors selling prices.the selling prices are to be variable i.e
,negotiable to the extend after which it will be fixed.

2.6 SALES TACTICS

The business will be opening from 8 a.m. to 8 p.m. thers will be done on daily basis as to enable their
customers to have full satisfaction.
There will be motivation of the distribution agents through bonuses. Thers will enhance hard work and
honesty among them and therefore high profit will be expected.

2.7DISTRIBUTION STRATEGY
The business will be hiring marketing agents who will be distributing the products to customers’ door steps.
Thers strategy ensures that the products reach every part of Bungoma town and its catchment areas.

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The company will be hiring two distribution agents per day and they will be paid Ksh. 500 per person. The
distribution shall be done from 8:00 in the morning to 5:00pm daily.

Now that the proposed business will be located in town where the road network is good, the entrepreneur and
the customers doesn’t expect any delays in products delivery and hence attracting the customers even more.

The distribution agents will also be hired depending on the kind of language they are conversant with.
Therefore, the agents must be in a position to communicate in the language that the majority speaks in
Bungoma town. Thers is due to avoidance of language barrier when they negotiate with clients.

CHAPTER 3

ORGANISATION AND MANAGEMENT PLAN

3.0 INTRODUCTION
Demi Icon Technology is an enterprise that operates on a simple hierarchy of the management and running
affairs of the business it is a sole proprietorship.
Thers help to utilize the human resource and the department resources effectively as thers helps the business
meeting its objective. The key management personnel will be the managing director will be assisted by the
assistant manager, accountant, the other personnel will be sales officer, storekeeper, security guard and the
cleaners. the employees needed will have to meet some of the qualifications in order to be employed. The
entrepreneur will seek professional assistance and the manager will visit grown companies to gain
knowledge, the employees will be taken for training and opened bank accounts so that the payment will be
through their accounts. The advertisements over the positions needed will be done both internally and
externally , applications will be done by the interested members, the interview will be conducted to the
applicants and those who will qualify will be given the date of reporting to work. Workers will be trained due
to the change in technology and the employees will be promoted according to their performance and
discipline in their work. Increment of the salary will be done as the profit also increases. The worker's salary
will be paid monthly according to their positions holding license and the permit will be acquired from the
county government office in order to cover the business. The proposed business also will give tax and
government revenue accordingly.

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3.1 ORGANIZATION STRUCTURE

Managing
director

Supervisor

Accountant Security Cleaner Secretary Sales officer

Officer

3.2 MANAGEMENT PERSONNEL

The business will use a simple flow of power in running of its affairs since it is a sole proprietorship kind of
business. Thers will help to utilize human resources effectively as thers will enable the business towards
meeting its core objective
Through the split of the organization gives each partner great operation and strength. The business will help
in finding out ideas that will be vital to the business.

3.3 MANAGING DIRECTOR

Qualifications
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 1. Should be a Kenyan citizen
2. Be a holder of Kenya certificate of secondary education with a minimum grade of C plain and above
3. Should be less than 35 years old
4. Be a diploma or degree holder in business management
5. Must have at least three or more years’ experience from a busy firm
6. Should be honest humble god fearing and have good relation with public
7. Ready to work under minimum supervision
8. Have strong leadership qualities skills
9. Should be a computer literate and a role model to other staff members.

Duties and responsibilities

1. Making policies in regard to the business
2. Providing financial and capital requirement.
3. Signing of Cheques
4. Auditing and checking books of accounts
5. Preparing and implementing comprehensive business plan to facilitate achievement.
3.4 SUPERVISOR
Qualifications
1. Must be a team player
2. Must be creative and innovative
3. Must have a degree or diploma in business or office administration
4. Must have 3 years’ experience in the relevant field
5. must have good written and verbal communication skills
6. should be less than 30 years of age and be a Kenyan citizen by birth
Duties and responsibilities
1. To carry out any other duties as prescribed by the law
2. To make regular reviews of budget
3. To make passbook audit
4. To confirm cash regularly and reconcile with the records
5. Check balance sheet and income expenditure statement to ensure they are accuracy
6. Manages the activities of the workers and organize their work
3.5 ACCOUNTANT
Qualifications

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 1. Above 23 years
2. 2 years’ experience in related firm
3. Holder of certificate or diploma in accounting
4. Fluent in both English and Kiswahili
5. Should work under minimal supervision
6. Should possess a strong interpersonal skill in record-keeping
Duties and responsibilities
1. Keep financial records of the business
2. Collect cash from customers
3. Withdraw and deposit cash to banks
4. Signatory of the bank account
5. Making all payments as approved by the management

3.6 SECRETARY
I. Must have a diploma course in Secretarial Studies from a recognized college or university
II. Must have two years’ experience
III. Must be at 30 years of age and above
IV. Must be a computer literate
V. Must have good communication skills and fluent in English and Kiswahili
Duties and responsibilities
1. Perform clerical duties in the organization
2. Presenting reports and statistics
3. Controlling budget
4. Completing request by greeting customers in person or in the telephone answering or referring
enquiries
5. Writing minutes during meeting in organization

3.7 SALES OFFICER

Qualifications
1. Must have a degree or diploma in sales and marketing
2. Must be 28 years of age and above
3. Must have two years’ experience in the relevant field
4. Must have good communication skills
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 5. Must be a Kenyan citizen
6. Having a driving license will be an added advantage
Duties and responsibilities
1. Meet marketing and financial sales objects by forecasting requirements
2. In charge of sales and report to the manager
3. To sell the goods advertising to customers
4. He or she should be able to present sales revenue and expense report

3.8 CLEANER
Qualifications
Be a KCSE certificate holder with grade D plain and above
Duties and responsibilities

1. Should ensure their premises are clean all the time

2. Give direction to customers
3. Make sure the machines and computers are well kept and clean
4. Clean storage equipment
5. Cleaning the stacking and supplying design facility.
3.9 SECURITY GUARDS
Qualifications
1. Be self-driven and honesty
2. Should be able to survive in any environment condition
3. Kenya Certificate of Primary Education holder
4. Age above 30 years old
5. Must have at least 3 years’ experience
6. Must have a certificate of good conduct and be physically fit.
Duties and responsibilities
1. Keep the visitors book of records
2. Safeguarding the premises and taking note of deliveries to customers
3. Takes care of the business equipment
4. Direct visitors to various places within the business premises
5. Take care of the business premises

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 4.0 REMUNERATION AND INCENTIVES FOR PERSONNEL

Before remuneration is considered there are some factors that must be put into consideration
 Educational consideration
 The net income of the business
 The task to be carried out by the staff
 Salaries offered by other premises in order to pay the qualified employees
Send the business and entrepreneurs shall be considered as two separate entities the entrepreneur shall
receive a salary and allowance as other employees of the firm
Remuneration table
Title No of Gross House Medical Net
employee salary allowance insurance Salary
required
Manager 1 20,000 2000 500 21,500
Supervisor 1 15,000 2000 500 16,500
Accountan 1 15,000 2000 500 16,500
t
Secretary 1 12,000 1500 500 16,000
Sale 1 10,000 1500 500 11,000
officer
Cleaner 1 9,000 1000 500 9,500
Security 1 9,000 1000 500 9,500
TOTAL 100,500

5.0 RECRUITMENT, TRAINING AND PROMOTION METHOD

Demi Icon Technology intends to take the following procedure in recruiting of its employees.
 Advertising the position
 Interviewing of the applicants to confirm qualifications
 Selecting best candidates and issuing them appointment letters indicating salary terms of
appointments and other condition.
 Orientation of the employees.

The business will offer on-the-job training to its staff as the staff will be working, they will be gathering new
skills and gain knowledge on computer technology.

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The entrepreneur shall carry out the following to enable and motivate the staff to attend the main goals.
 Give equal opportunity in decision-making.
 Increment of their wages and salaries
 Provision of annual leaves
 Overtime payments

6.0 LICENSES, PERMITS AND BY-LAWS

The Company will be registered on the third day of operation i.e., on 6th Febuary, 2022. The normal
deadline for registration is 14 days after the business starts.
The particulars below will be required following the registration: -
The name of the business i.e., Demi Icon Technology.
The general nature of the business i.e., offers Computer Accessories Such as like ;routers, pen drives and
hard disks.
The principal location of the business i.e., Bungoma town
The owner’s nationality and usually residential address.
The Entrepreneur will get the business license from the Bungoma County. The license will be issued under
Demi Icon Technology at a cost of Ksh. 5,000. Other licenses required for the business to operate include;
Operation permit which will be required by 16 th February, 2022 from the Bungoma Municipal Council at
Ksh. 3,000 per year.
The By-laws or made by local authorities include;
 Trading in legalized goods
 Payment of workers accordingly

7.0 OTHER SUPPORT SERVICES

The business will require both internal and external support services to enable its successfulness.
Bank Services
The Company will operate with the cooperative Bank.
The bank will be beneficial to the business since it will be keeping money for the company, lending loans to
boost the business.

19
Insurance services
Life insurance
In case a member dies there will be life insurance to hers or her family in order to compensate the loss.
Medical coverage
Members of staff will be encouraged to register for NHIF in that they will be able to access medical services
without using cash money.

Water Services
The business will install tapped water thers will ease cleaning and other uses. The business will pay for the
water bills on a monthly basis

Telephone services
The business will be using telephone services to pass information within and out of the organization.
Therefore, the business owner will have to pay for the telephone expenses. The secretary will be in charge of
the telephone and other communications channels within the organization.

Electricity Bill
Electricity will be very essential for the business to run successfully the business will prefer paying the bills
through tokens. The cost of the electricity bills deposit will be Ksh. 500 per annum. Electricity will be used
for lighting the rooms and running the machines.

Water Bill
Water is a very important resource needed by the company. The water bill deposit will cost Ksh. 500.

4.6.7 Contracted services

For the business to work effectively for maximum profit the business will hire painters, designers, drivers
and personnel for interior design. Once a contract is over the business will pay for the services offered.

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 CHAPTER FOUR

OPERATIONAL/ PRODUCTION PLAN

4.1 INTRODUCTION

The management intends to adopt the strategy that will minimize the cost of operation of the business in
order to grow. The proposed business will have both fixed and current assets, the materials will be of high
quality. The entrepreneur will use all means to ensure that she overcomes the challenges. The proposed
business will operate all days except on Saturday. The business will offer wide range of items and also the
latest fashion wear. The proposed business will have some regulations such as health, safety and government

Health regulations

The entrepreneur will make sure that each and every employee acquires a medical cover NHIF in order to
cater for their medical bills in case of any illness.

Safety regulations

The proposed business will have to provide protective clothes to the employees, aprons, face masks dustcoats
and gloves will be issued, other than that each employee will have to be vaccinated against covid-19virus
which is a hazardous disease in the world.

Government regulations

The proposed business will have to adhere to the government rules and regulations, in thers case the
entrepreneur will acquire license and permit in order to cover the business and make it legal, the proposed
business will also pay government revenues and taxes accordingly.

4.2 OPERATION PLAN

System
The business will operate in 24 hours a day will the opening time will be 7 in the morning and closing at 7
p.m.
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Technology
The business will be use new technology whereby an expert with skills and knowledge on how to operate the
machine in hired.
Appropriateness
They are appropriate in working for better profitability of the business and will have to be changed after a
period of two years to enhance their appropriateness.

4.3 PRODUCTION FACILITIES

Demi Icon Technology will offer a wide range of the latest Computer Accessories. It will be offering of
competitive buy and trade services to assist in lowering our inventory acquisition costs and making the store
more attractive to our customers.

Repair
In case of any breakdown, the repairs shall be done by the employees themselves because they will be
equipped with skills through trainings.

Maintenance
The Company will be running an annual maintenance to service all the equipment and replace the faulty
equipment and machinery within the organization.
The maintenance service shall be offered by Umoja Group, who are also located in Bungoma town, at a cost
of Ksh. 5,000

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WORKSHOP LAYOUT

Shelf of latest Computer Shelf of Counter

Accessories Surge
Protectors and
Keyboards.

Washroom
WAITING SPACE

Security
office

ENTRY
EXIST

4.4 PRODUCTION STRATEGY

In order to achieve better goals in the business, they must be regulation in the place which must be followed.
For thers case the business owner will ensure only competent workers are employed to ensure smooth
running of the day-to-day activities. Thers will enable effectively record keeping

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 4.5 PRODUCTION PROCESS

Tausi Fashion and Design shop will lay strategies and procedures to follow in order to achieve their goals
and objectives. All the products will be acquired in bulk from specific companies at a specific cost,
thereafter, they will be stocked in the shop, sampled
Tausi Fashion and Design shop being a business like any other, it may encounter internal and external factors
that may affect the normal running of the business. The internal factors likely to affect the business includes;
internal conflicts amongst employees which may affect their performance and the performance of the
industry at large and thers can also strengthen the competitors. External factors that may affect the business
include; competition from other industries which may advance in the long run. Theft and fire outbreaks might
also affect the smooth running of the business because they might make the company run at a loss.

Tausi Fashion and Design shop will train the entire staff on how to solve conflicts amongst themselves to
avoid all kinds of losses that may occur due to conflicts. The employees will also be trained on effects of
conflicts so that they avoid conflicting with each other.

The management will ensure that Tausi Fashion and Design shop is on the same level with well performing
fashion and design shops in the nation to make sure that the competitors do not attain a big market share.

The business premises will be installed with burglar proofed doors and windows to avoid an easy access in
case of robbery. There will also be fire extinguishers installed to help fight any fire outbreaks to avoid loses
to fire outbreaks.

4.6 REGULATION AFFECTING OPERATIONS

The company is fully aware of the government policies and regulations governing business operations and
will comply with them

HEALTH REGULATION

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The staff will be subjected to clean water and healthy food at all times. And also it will ensure a pleasant
environment for workers such that there will be a proper air circulation to avoid high or too low
temperatures.

SAFETY REGULATION

The Company will provide protective clothes to the employees i.e. aprons face masks,lab coats and gloves
so that they may not infected in case they come to contact with infected surface. First aid kits will be installed
in the business premises to help in case of an emergency

GOVERNMENT REGULATION

The Company will also comply with the government rules and regulation in that it's based on their licenses
the permits and also the taxes which are imposed by the county government. The business shall commence
after approval from the County Government of Bungoma. The entrepreneur shall possess the certificate of
Incorporation at a cost of Ksh. 6,000, and will be paid annually. A business permit which will cost Ksh.3,000
and a license to run the business at a cost of Ksh. 5,000 which is payable to the county government on an
annual basis.

25
 CHAPTER FIVE

FINANCIAL PLAN

5.1 INTRODUCTION

The proposed business will have some requirement that have to be fulfilled before the business commences.
The business will require a capital of Ksh.500,000 in order to start the business. The Demi Icon Technology
will be moderate and the first year’s profit. The project cash flow statement on a monthly basis will add up
to Ksh 600,000. The profit will be used to add stock and to the firm and also do repairs in the business
premises to ensure workers have good working environment and also customers are served well and faster.
Thers will enable proper running of the business the whole year hence to services and productions are
provided to the customers. The company will also use part of the profit reward workers who have been loyal
to the company and performed well in terms work and gaining more profit for the company.
The business will also save some percentage of the profit in the bank to ensure that the company does not run bankrupt
in case of losses or damages which may cause the closure of the business premises .The money will also be used in
expansion of the business premise in future so that it may open more branches .The employee’s salary will also be
paid through a certain percentage of money collected despite the employee salary being on monthly basis thers will
ensure good relation of worker and avoidance of salary delay which can make worker become lazy and sometime be
absent for work

5.2 PRE – OPERATIONAL COSTS FOR THE PERIOD OF ONE YEAR

ITEMS AMOUNT IN KSH.

Rent 60,000
Rent deposit 5,000
Certificate of incorporation 6,000
Electricity deposit 500
Water deposit 500
Permit 3,000
License 5,000
Installation cost 2,000
Furniture 11,500
Telephone deposit 600
Partitioning cost 18,000
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 Transport 28,800
TOTALS 140,900

WORKING CAPITAL

The table below shows Companies Working capital for the first three years.

ITEM YEAR 1 (Ksh.) YEAR 2 (Ksh.) Year 3 (Ksh.)

Stock of raw materials 123,000 180,000 250,000
Stock of materials in 100,000 150,000 200,000
progress
Stock in finished goods 180,000 220,000 250,000
Debtors 4200 7500 11500
Cash at hand 200,000 250,000 250,000
Cash at bank 200,000 90000 150,000

5.3 PROJECTED CASHFLOW STATEMENT

ITEM JAN FEB MA APR MA JUN JUL AU SEP OC NO DE TOTAL

R Y G T V C

Balance b/f 10,0 30,0 25,0 20,0 30,0 40,0 50,0 20,0 15,0 10,0 250,000
00 00 00 00 00 00 00 00 00 00

Cash sales 220, 230, 240, 250, 270, 300, 320, 315, 350, 340, 350, 390, 3,575,500
000 000 000 000 000 000 000 000 000 000 000 500

Loan 200, 200,000

000

Debtors’ 5,00 1,00 10,0 10,0 25,0 21,0 30,0 30,0 40,5 172,000
receipts 0 0 00 00 00 00 00 00 00

TOTAL 260, 240, 270, 320, 370, 320, 380, 345, 380, 380, 365, 400, 4,030,000
RECEIVE 000 000 000 000 000 000 000 000 000 000 000 000
D

CASH 288, 200, 200, 95,0 110, 120, 200, 230, 225, 200, 215, 210, 2,293,500
OUTFLO

27
W 550 000 000 00 000 000 000 000 000 000 000 000

Cash 93,5 30,0 25,0 30,0 15,0 30,0 20,0 30,0 35,0 30,5 34,5 40,0 413,000
purchases 50 00 00 00 00 00 00 00 00 00 00 00

Creditors 10,0 40,0 20,0 30,0 40,0 20,0 10,0 20,0 10,0 200,000
paid 00 00 00 00 00 00 00 00 00

Wages and 130, 130, 130, 130, 130, 130, 130, 130, 130, 130, 130, 130, 1,566,000
salaries 500 500 500 500 500 500 500 500 500 500 500 500

Rent 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 60,000
0 0 0 0 0 0 0 0 0 0 0 0

Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Electricity 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Stationery 1,00 1,000

0

Transport 2,40 2,40 2,40 2,40 2,40 2,40 2,40 2,40 2,40 2,40 2,40 2,40 28,800
0 0 0 0 0 0 0 0 0 0 0 0

Insurance 3,50 3,500

0

Maintenanc 5,00 5,000

e 0

Advertisem 8,00 8,000

ent 0

Taxes 5,00 5,000

0

TOTAL 249, 168, 173, 208, 173, 168, 203, 189, 183, 189, 182, 178, 2,272,400
PAYMEN 900 900 900 900 900 900 900 900 900 400 900 900
TS

NET 10,1 71,1 96,1 111, 196, 151, 176, 155, 196, 190, 182, 221, 1,756,700
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CASHFL 00 00 00 100 100 100 100 100 100 600 100 100
OW C/F

5.4 PRO-FORMA BALANCE SHEET

DEMI ICON TECHNOLOGY BALANCE SHEET AS AT 31ST DECEMBER

ITEM OPENING DATE (Kshs) END OF YEAR DATE

(Kshs)

ASSETS

Current assets

Cash at hand and bank 400,000 1,726,700

Debtors - 172,000

Stock of finished goods 15,000 180,000

Stock of work in progress 8,300 100,000

41,000 123,000
Stock of raw materials

TOTAL CURRENT ASSETS 464,300 2,129,700

Fixed assets

Machinery and equipment 52,300 52,300

TOTAL FIXED ASSETS 52,300 52,300

TOTAL ASSETS 516,600 2,182,000

Liabilities

Current liabilities

Creditors 200,000 -

TOTAL CURRENT LIABILITIES 200,000 -

Long term liabilities - -

Bank loan - -

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 Capital employed(equity) - -

TOTAL LONG-TERM LIABILITIES - -

TOTAL LIABILITIES 200,000 -

5.5 BREAK EVEN ANALSIS

Total sales = Ksh. 4,000,000

Total direct cost = Ksh. 2,272,400

Gross profit = Ksh. 4,000,000-Ksh. 2,272,400=Ksh. 1,727,600

Gross profit margin = Ksh. 1,727,600 x 100% = 43.19%

Ksh. 4,000,000

Total overheads/expenses = Ksh. 2,272,400

Break-even level = Ksh. 2,272,400 x 100% =Ksh. 5,261,403

43.19%

5.6 EXPECTED PROFITABILITY RATIONS

Calculation of rations;

Gross profit percentage = Gross profit*100

Sales

= Ksh. 1,727,600 x 100% =43.19%

Ksh. 4,000,000

Return on equity = Net profit after tax *100

Owner’s equity

= Ksh. 1,756,700 x 100 =6.1%

Ksh. 288,550

Return on investment = Net profit after tax * 100

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 Total investment

= Ksh. 1,756,700 x 100 =4.4%

Ksh. 400,000

Return on sales = Net profit after tax * 100

Net sales

=Ksh. 1,756,700 x 100 = 91%

Ksh. 1,736,500

5.7 DESIRED FINANCING

Total pre-operational

Rent deposit: = Ksh. 5,000

Water deposit: = Ksh.500
Electricity deposit =Ksh.500

Installation cost: = Ksh. 2,000

Machinery and equipment: = Ksh. 52,550

Total = Ksh. 60,550

Working capital
Working capital = current Assets – Current Liabilities

=Ksh. 464,300-Ksh. 200,000 = Ksh. 264,300

Fixed assets = Ksh. 52,300

TOTAL START UP FINANCE

= Ksh. 249,900

5.8 PROPOSED CAPITALIZATION

WORKING CAPITAL =Ksh. 200,000

Bank loan = Ksh. 300,000

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TOTAL INVESTMENT = Ksh .500,000

32