CHAPTER ONE

1.0 EXECUTIVE SUMMARY

1.1 BUSINESS DESCRIPTION

The business will be called ’BARINGO KIDS UNIFORM SHOP. It will be located
will be located at marigat town opposite camco hotel (tallest building). It will be shop
number 3 at Baraka business centre after Soko supermarket where most clients will
have easy access of it. All products we shall be offering will be able to be sold at
affordable prices. We shall offer quality products to all our customers. The business
will be a sole proprietorship and the product sold will be kids uniforms. They are
highlighted more in chapter one.
1.2 MARKETING PLAN

The business having being located in the vicinity of town will be able to attract more
customers every day. We also got friends from within the town so friends will go
telling friends and in that way more and more customers will come. There shall also
be someone in charge of marketing i.e. he or she knows the procedures of letting the
farm knowing by looking for clients. The entrepreneur will also have other social
media accounts where he will be posting the products on a regular basis. Most
recorded videos about the farm will be posted on TikTok and Instagram. These
methods will be preferred because they are very cheap and can reach many people at
a time.
The entrepreneur will print posters. These posters will be put on electric poles and on
social places. The posters will contain the name of the business, the location of the
business the products and services available and the official contacts of the business.
The posters will be budgeted for 15000 Kenya shillings.
Additionally, the entrepreneur will make signboards and position them on various

parts of the neighboring towns. These posters will clearly show the direction to the

location of the business and also inform unaware people of the existence of the farm.

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1.3 ORGANIZATION AND MANAGEMENT

The form of business unit will be in form of a sole proprietorship. This is because of

putting up something big and legit to everyone, with this there will be an easy way of

acquiring the capital we need for us to put up the business.

1.4 PRODUCTION PLAN

The business will be operating on a daily basis.

1.5 FINANCIAL PLAN

The business will require a minimum of ksh 780,000 to start a small business

enterprise. With the money, we shall acquire as profit we shall use it to expand the

business. We also got support from banks since we are as a partnership. With this, the

business will thrive and got expanding little by little.

ITEMS AMOUNT
Personal savings 30,000
Bank loan 400,000
Family and friends 80,000

Total 780,000

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 CHAPTER 2
2.0 BUSINESS DESCRIPTION

2.1 BUSINESS NAME

The owners business name will be ‘’BARINGO KIDS UNIFORM SHOP ‘’.This
will be a uniform making and selling business specifically school uniforms for
children who are of a school going age ;this is four years old up to age of 15 years old
this means that lower primary and those in junior secondary and considered apart
from making and selling uniform .we also do repairs of buttons and minor repairs
also.
The business name ‘’Baringo kids uniform shop’’ will be a marketing strategy to
the business since both literate and illiterate parents understands the term uniform as
it is basically known that its one of the requirement that a child is needed to have in
order to be able to fit in certain group i.e to be identified with other pupils as part of
the school.
2.2 BUSINESS LOCATION AND ADDRESS
The owners business will be located at marigat town opposite camco hotel(tallest
building). It will be shop number 3 at baraka business centre after Soko supermarket.
The business postal address will be:
P.O BOX 176,
MARIGAT.
Telephone number - 0702797257
Email address - baringokidsuniformshop@gmail.com

The business owner will choose to locate the business opposite Camco hotel which
is the highest building and it will be easily accessible since its on your way towards
the market. If the owner will display some uniforms outside the walls also have
drawings that are child friendly , this will lure customers and attract children also to
come and see what service the business offers.

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The Business location will be close to its raw materials since opposite camco hotel
building has an Indian shop at the second floor and sells fabric and all types of
materials at a favorable price and have requirements needed for the business owner’s
sewing machine.
Since the business owners shop is located at a conducive place near a roundabout that
leas to the town whereby the hospital and schools are located , it will attract
employees as customers since there is no other route to lead to the town.
2.3 OWNERS PROFILE OR BACKGROUND
The business owner of the proposed business will be twenty four years , a
resident of marigat town, in three years time after completion of a diploma course.
Apart from being a child care and protection officer the business owner will prefer to
pursue a fashion and design course in order to be entrepreneual and to be able to earn
a n extra income.
2.4 FORM OF OWNERSHIP
The business owner will choose sole proprietorship as a form of ownership since the
business will require little capital to start. The business owner will be the one making
his/her decision , flexibility of the business also comes in and the business owner will
be able to cope or adjust with situations that may have been caused by seasonal
factors since such business will be easy to start and operate .the business owner will
enjoy profits of the business alone.
2.5 TYPE OF BUSINESS
The business owner will be dealing with secondary production since it’s a
manufacturing business and it requires conversion of raw materials into finished good
through the use of labor and machine.
2.6 PRODUCTS AND SERVICES
The business owners products will be school uniforms depending with the color that a
school will choose to have as their attire ,the business owner will be able to adjust to
whichever the situation with the best and quality material and service required.
The benefits that the customers of the business will enjoy free of charge is ironing of
the uniforms and repairs or adjustments needed immediately after a purchase of a

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uniform and a small booklet showing the type and kind of products the business
owner makes and sells.
The unique feature in the business will be that the business owner will be able to
write letters or admission numbers using a sewing machine and this will be a great
advantage over the business competitors.
Since the business owner will be a sole proprietor, all the secrets of the business will
be within him and therefore there will not be any leakage of information outside the
business and the business will be flexible enough to make decisions.
2.7 INDUSTRY ANALYSIS
Since the business owner will be dealing with cloth making and selling ,the business
will be a textile industry and is primarily concerned with the design and production of
uniforms. however since the business owner will be running a small scale business ,
the owner will be having two firms one for uniform making and another one for
uniform selling.
Seasonal factors may affect the business since the owners sales tend to be high from
December to April but since the business is flexible the owner can respond to
seasonal changes by making an adjustment.
The trends in business will be neck tie making and fixing school ‘’logo’’ on the t-
shirts since junior secondary have introduced that as part of their uniform.
2.8 GOALS OF THE BUSINESS/JUSTIFICATION OF THE OPPORTUNITY
To make profit. through the running of the business the main aim is to make profit
and it can be achieved through minimizing risks.
To fill a gap in the society. The business owner can achieve this since there is
demand of such business of making uniforms in the society.
Provision of services to the society. This is through ensuring that the business
owner will serve the society with the basic skills and knowledge they have.
Promotion of the right to education and equality among children in the society.
Through uniform selling and making this means that the business owner encourages
education and with all pupils putting on the same uniform their background status is
difficult to be discovered since it should be confidential to avoid lowering their
esteem hence promoting equality .

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 Mobilizing children to go to school since the owner of the business has allocated
the business where the customers easily access this will lead to mobilization of
children to be taken to school as part of the right.

The need of the business in terms of demand is high since most families are
polygamous and there is high competition between families who would like to have
educated children to reduce dependency.
The business will be contributing to the local community through offering its services
and it will have made it easy for customers to access the good in near market than
formally when they need to travel to urban centers to acquire and they could increase
transportation cost.
2.9 ENTRY AND GROWTH STRATEGY
The business owner will gain acceptance in the market area since the owner will
be having skills and knowledge which acts as strength and it will create opportunity
to the business owner since most cloth makers are not skilled and therefore its hard
for them to cope with the trends that require knowledge and skills

Plans for growth and expansion beyond entry of products and services
probably to make profits and minimization of risk in the business.
to make use of local resources available and utilize them fully.
To make use of the trends to earn profit that will make expansion easy once the
business stabilize.

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 CHAPTER 3

3.0 MARKETING PLAN

INTRODUCTION
The Baringo kids uniform shop intends to sell its products both online and at the shop
premises . The loyal customers of the business will be the residence of marigat town
since that is the nearest station to the premises where Baringo kids uniform shop is
located. According to how the people have lived the nuclear settlements of different
communities the customers will be able to spread information about the uniform
center.
The Baringo kids business shop through online selling the identified customers will
receive their orders at any convenient place they will like to be delivered since the
town is not that much wide the business can deliver the services within 24 hours to
the customers this will enhance trust and good relationship with our customers.
Though there is high competition in the market the business will ensure the services
offered to the customers is of standard quality and fair price since this will help the
business to gain acceptance in the community , this also will motivate the customers
towards buying goods and services from the business,
The business owner on matters concerning pricing or selling price of the uniforms to
the customers will vary since during the festive seasons there will be offers and gifts
but on daily basis the price will remain favorable. The mode of promotion the
business will intend to us e is through advertisement on local radio , direct ,marketing
and personal selling this will raise brand and product familiarity within the targeted
market.

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3.1 CUSTOMERS
Beside having individuals being the potential customers also alongside the business
owner will be having instutions too as potential customers exceptions customer
services will help the business since the business owner will be knowledgeable about
the products and help the individual customers through providing personalized
assistance and create a welcoming atmosphere.
Happy customers are more likely to become loyal , refer buyers and recommend the
business store to others. The individual customers will be living around and near the
uniforms shop. These will be the communities near marigat town both employed and
self employed since the community is well off and the products will be available at
affordable prices and the shop operates for 17 hours in a day.
Instutions being one of the potential customers of the business mentioned above, the
business owner will be intending to link with nearest institution management to
ensure supply of uniforms to schools of required sizes on time with the agreed price.
The business will help the institution to maintain its uniform color and design since
their will be different types of cloth to make uniform but the business will choose the
desired quality and standard to maintain good relationship with the intuition and
preserve its name.
The individual customers characteristics in matters such as age , most customers are
of twenty years and above to fifty years since the community living around are
polygamous and have large numbers of children who need to be in school , each
family will be having not less than ten children in one woman’s family. This will help
increase the demand of uniforms for the right of education of the children to be
catered for.
Most customers who will be living near the uniform center will be self employed with
most engaging in business activities others in pastoralism that will be doing well in
that area so the level of the income will be medium and the potential individual
customers will be able to purchase at agreed price , also the business will accept
bargaining as a way of selling its uniform until to that agreed price that both the
business and customer will accept.

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The level of education of the business customers will be secondary level and tertiary
level leavers though there are those will be in occupation this will help the business
owner to understand the customers need and purchasing power. the beliefs held and
values in the communities near Baringo kids uniform shops affected the business past
10 years ago but the rise and demand for mobilization of children to go to school will
be high and it will turn to competition that each family will have a need to take their
children to school and this will help the business to offer its services towards meeting
the community needs.
3.2 MARKET SHARE
The approximate target market population size or area in square kilometers will be
about 976.4km2 with population of 60,000 people. This means that the business will
be serving a large population where there is a high demand.
3.3 COMPETITION
The existing and potential competitors of the business will be the medium scale
businesses that will have employed workers to work in their premises also the cloth
making business that existed before that will adjust to situational changes easily and
may not be affected by physical , social, cultural and political factors but the
advantage with the business will be that the mentioned owner will be skilled and will
be having links with instutions this will help the business in its operation.
The location of the competitors in relation to the above mentioned business will not
be far in terms of kilometers but different centers and it will be located in different
blocks whereby each business will be carrying out its activities and offering services
differently depending on the objectives that each have. The size of the competitors in
the business will be medium scale business but since small business will be a
backbone of a local; community the business will benefit through ensuring that they
think beyond their competitors and become creative and innovative towards ideas that
comes on their way this will help the mentioned business stay ahead of the
competitors mentioned above.
Since the business will be flexible and requires little capital to start and operate the
losses that it will undergo through is less compared to a medium scale business that
has a lot of expenses to cover i.e. payment of workers ,calculation of profits and loses

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and other expenses meaning when the business will experience unfavorable situation
there will be more loss than profits which is the main goal of every business that
exist.
The business products in comparison with the product and service of competitors is
slightly different since the business owner will have specialized on uniform making
and selling and the competitors cloth and uniform making at once. The business
owners objective will be outlining on the best interest of the child and will be
knowledgeable on what color or feature is child friendly this will help the business
owner to improve on the services the business will be offering.
Since the business owner will be aware on child friendly colors the business
packaging will become a marketing factor beside the favorable high quality and good
quantity of uniforms the business will produce . also the business will be having
varieties of uniforms that will help incase there arises a demand of such in the market
the business will be able to fill the gap and continue with its operations effectively
ahead of the competitors.
The strength of the business mentioned above will be its good relationship with
customers ,knowledge of the market ,easy adjustments when requires to e able to
survive a situation in terms of decision making, also the business owner is able to
make alone without consultation compared to their competitors while the weakness of
the business will be lack of workers to assist in making and selling of the uniforms.
also coping with the modern technology will become a challenge to the business
owner.
The strength of the competitors is the easy adaptation to the use of technology and the
competitors will be having large numbers of workers to assist them in their operations
, also the number of firms they will be having in the town becomes their strengths .
the weakness of the competitors is on packaging of their services also the quality of
the goods they offer , linking with instutions also can be a challenge since they may
not understand the legal procedure to go out, it becomes difficult also even for the
competitors to adjust to the trends in the uniform making and selling venture since
they are not only specialized in that.

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The plans of the business to capitalize on the above stated competitors weakness the
business will ensure standard quality of goods , special packaging make use of the
trends and offer its services to the public in a presentable manner also there will be
need for the business to enhance good relationship with the instutions s that require
the services.
3.4 METHODS OF PROMOTION AND ADVERTISING
The business owner will be able to reach to the potential customers through the local
radio , this is through understanding the demographic radio stations will help the
business tailor their adds to resonate with specific group. The level of target ensures
that the business message will be heard by the right people increasing the chance of
conversation and return on investment.
Image that the business owner will be expected to project regarding the firm.
The business name which will be Baringo Kids Uniform shop” projects the services
that the business will be offering at a particular geographical location ,the personal
history about the business will make impression to the public . the advertisement that
will be selected by the business and the goal and the vision/mission helps the
customers perception to be positive and the customers will be able to interpret about
the business.
The business will decide on the frequency of the business to be at lease thrice in a
year since schools have three terms in a year hence the advertisement will be carried
out at the beginning of each term this will be through us e of family members to use a
banner printed all types of uniforms and free samples and the location emphasis to
attract more customers.
The business will incur advertisement cost for the advertising period , the cost will
amount to five thousand shillings whereby the printing of the banner will be around
two thousand five hundred and the allowance of five family members who will carry
out the advertisement facilitated.
How the business owner will measure effectiveness of their advertising efforts, this
will be through observing and keeping proper records after the advertisement will be
through observing and keeping proper records after the advertisement period the
business owner will expect to receive customers who may have seen the

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advertisement and who will have interest to confirm if really the business is in
existence in the market.

The business owner will be having expectations that the demand of their products and
services be high after an advertisement has been carried out.
The promotion methods that the business will use will be direct marketing this will be
reaching out to specific campaign to inform people of the services upcoming cells and
new products direct marketing will include emails, direct mails ,phone calls and
flyers . This promotion method is fast and efficient way to promote a product . the
business also will use digital marketing . this involve online or web advertisement
this will help connection with wider audience . general advertising will also become a
promotional method since it will not target particular audience but aim to promote
general awareness of the business this will be more sustainable.
Plans for initial promotional campaign will be chalk your target this means that the
first part of the business promotion Campaign is to locate its target audience and
market .secondly the business will mark its channels this will help the business to
know where it will its audience who are the customers . Craft campaign content once
the business will focus on content lastly the business will monitor its campaigns.
The business will have plans for regular promotional campaigns after understanding
the objectives ,determining required resources , create a timeliness and track progress.
Since this promotion events cost will be a future plan the business will identify the
cost in future and it will be able to determine its cost.
Measuring of the effectiveness of the promotional efforts is through analyzing the
profits ,sales , volumes, customers satisfaction and achievement of targeted goals
within a period of time.
3.5 PRICING STRATEGY
The business will calculate its selling price through estimation of materials used and
inclusion of labor cost also this will help to find the most suitable price that favors the
customers both with high to low level of income the price will affordable and a
customer can bargain till the business comes into agreement to retain customers.

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The factors that will influence the price setting of the business will be the purchasing
power iof the customers , not all customers will be able to afford all products and
services this is because of the economical instability or difficulty in the area where
the business will be located.
Competition from the competitors also can affect the price setting of a business since
the competitors may sell at a cheaper price so as to influence the customers.
The originality or quality of material used to make uniforms also may influence
pricing of the business since the quality the material the higher the expense to
acquire.
The actual selling price of the business owner will be

Baringo kids uniform price List

CODE DESCRIPTION QUANTIT PRICE
Y
1 Short sleeve t- 1 150
shirt
2 Short trouser 1 200
3 A skirt 1 200
4 A dress- 1 250
sleeveless
5 School Tie 1 100
6 Socks 1 100
7 Admission 1 20
writing
8 Black shoes 1 800
9 Track suit long 1 350
10 Track suit T- 1 100

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 shirt
11 Track suit 1 150
jacket
12 Sport shoes 1 500

The business will be offering credit terms to instutions whereby there is assurance
that the payment will be made at the end of the month failure the business will charge
some fee for late payment as they will agree.
There will be minimal credit given to the customers (individuals)since the firm may
experience loses or may delay the operation of daily activities of a business.
The business will offer discounts to its customers in accordance with the products or
number of uniforms bought and this will motivate the customers to purchase more
and more commodities from the uniform mentioned above.
The after sale services that the business will be like word of mouth referrals .happy
customers are valuable assets because they almost always refer your brand to family
and friends . positive word of mouth from satisfied customers can drive up to 50% of
as business total sales. since majority on new business comes from referrals ,
delivering superior after sale-services significantly increase the number of customers
willing to provide referrals.
Positive brand image will be be the second aftersales this will be because almost 9 out
of 10 customers will read reviews before making a purchase and negative customers
will read reviews before making a purchase and negative customers review hurts even
the most well known brand recently excellent purchases experiences attract positive
reviews slowly enhancing the overall brand image.
Customers loyalty will be the third after sale a great product with poor customer
support will be a tragedy. However when it will be backed by excellent customer
service , pre- and post sale an average product will do exceedingly well.t he purpose
of this after sale will be to increase loyalty among customers and promote brand
advocacy.\
3.6 SALES TACTICS

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The business will use indirect selling technics when it will be offering its services I.e
through distribution ,merchandising, franchising this will be standing for the lease of
a well known trademark also through dealership which the indirect sales will help the
business owner to increase the sale network .To maintain efficiency in the current
work ,the business owner will be ready for expansion of the target audience , and to
raise the level of product distribution.
The business owner will also decide to use direct selling or personal selling this will
be through face to face selling in which the business owner will try to convince. The
customers buying the product through this business will be able to use its skills and
abilities in a attempt to make a sale, this will have facilitated two way communication
and immediate customers feedback, convey more information that will be detailed, it
will improve the brands image.
The business will not be able to recruit , select and retain sale force since it’s a sole
proprietorship and the business will have no funds to cater for that but as the
business will grow and stabilize in future it will have that considered since the
business will have be expanded , this will remains as future plan of the business.
The business will be offering its services to approximately large geographical area of
about 976.4 km2 with the population of 60,000(2019 census). The population
comprise of many children than adult ,this will help the business run well since the
acceptance in the community is a significant and the community will receive its
services to enable their children to enjoy the right to education and eradicate poverty
in the area.
The population will be assuring profit for the business owner and it will be a
motivational factor that will enable the business to move on.
3.7 DISTRIBUTION STRATEGY
The distribution channel the business will use will be from the producer to the
customer. this will help the business owner to minimize cost. i.e payment of
middlemen. Through this distribution channel the customers will acquire factual
information from the owner and this will lure many customers to the business since
the information will be factual and it will help customers have a positive image brand
towards the business.

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Reason for choosing producer to customer as distribution strategy will be because
there will be a number of factors that the owner will have to consider i.e nature of the
market , number of prospective buyers, the size of order, geographical concentration
of the market, buying habits of the customers.
The business owner will use road as a mode of transport and bicycle as means of
transport in delivering products to customers who are the business premises or within
the town , this will reduce transportation in terms of fuel.
The transport cost per month will vary since it depends with the orders , the owner
will receive and require delivery since the business owner will not incur any cost
when making a delivery to institution as they will agree with the instution to
transport their orders using school vans.
Time management will be anticipated distribution problem since bicycle may be slow
means of transport and the urgency of the need which maybe a customer needs
delivery to be quick and how the business owner will intend to overcome is ensuring
that time keeping and management becomes a key factor.
Looming competition will be anticipated factor that will affect distribution since the
competitors might use faster but expensive means to deliver their products to the
customers at which the business owner will not be in apposition to afford to curb this
the business owner will ensure to improve on the means of transport to enhance
efficiency and stay ahead of the competitors.
Security of the products supplied . this will be a problem since use of a bicycle is a
little bit unsafe but the business owner will intend to use a closed means of transport
to enhance safety of delivery goods this will help to minimize risk of transportation
and minimize loss that may arise due to robbery or attack.

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 CHAPTER 4

4.0 ORGANIZATIONAL / MANAGEMENT

PLAN

INTRODUCTION
4.1 ORGANIZATIONAL STRUCTURE
On the organizational structure of Baringo kids uniform Centre with consideration of
it being a sole proprietor business the owner will make all the decisions and will be
responsible for all aspects of the business . the business owner will assign some of the
family members to assist in tasks such as customer service or maintenance.
The business owner will oversee day to day operation especially if the business will
be manageable and maybe will not require more hands on management. The
customers and clients will be the primary stakeholders who utilize the services of the
business such as uniforms , renting and laundry services.
The business owner will be the supplier to provide the business with necessary
supplies and materials to operate such as uniforms ,cleaning , supplies or

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equipment’s. The business owner will be a service provider and will engage in
service providing like cleaning , maintenance or IT support for special needs.
The structure will be straight forward with the sole proprietor having full control and
responsibility for business success.
4.2 KEY MANAGEMENT PERSONNEL/BUSINESS MANAGERS
The business member s will be the family since the business owner will be operating
as a sole proprietor . The family will assist in management of the business this is
through contributing to ensure management of the business this is through
contributing to ensure that the business runs well .The family members will not only
contribute but also enjoy the success of the business this are the profits.
The position of manager the business owner will occupy and the qualification will be
should be capable to run the business be able to make decisions for the
business ,should have adequate capital to start and maintain. Should be flexible
enough to adjust to changes and should have good managerial and communication
skills to convenience the customers about the venture.
The business owner will be required based on qualification to have at least a diploma
or degree in fashion and design or cloth making(tailoring) with experience of two
years in a cloth making textile industry . Also one will be required to have good
communication skills and convincing skills and one who will be able to interact with
both parents and children. Who will be the clients.
Also to work in a uniform making shop, experience In sewing , pattern making and
uniform construction Is typically required depending on the specific role , additional
skills such as embroidery , fabrics cutting and alteration might also be necessary.
Experience in industrial sewing machines and other equipment’s commonly used in
uniform production is valuable , additionally knowledge of different fabrics and their
properties is beneficial for creating high quality uniforms.
The duties and responsibilities of manager of Baringo Kids uniforms shop will be
Business operation- this will include overseeing day to day operations including
inventory (stock )management , sales and customers services
Financial management – the business owner will be handling finances such as
budgeting , accounting and managing expenses.

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Marketing and sales -the business owner will develop a marketing strategy to attract
customers and increase sales.
Human resource- The business owner will be hiring , training and managing staff if
applicable even if from the family.
Compliance-the manager will ensure that compliance with the operation in relevant
laws and regulation such as business licensing , tax requirement and health and
safety standards are followed.
Customer relations – The business owner will ensure that he/she build’s and maintain
good relationship with customers to ensure satisfaction and repeat business.
Vendor Relations- The business owner will ne ensuring managing relationship with
suppliers and vendors to ensure timely and quality product deliveries.
Strategic planning – the business should be able to develop a long term business goals
and strategies for growth and expansion.
Quality control- the business owner will ensure that the business products and
services meets or exceeds customers expectations Problem solving- the business
owner will be required to have the ability to address any issue or complains that arise
in timely and effective manner.
4.3 OTHER BUSINESS PERSONNEL’S
In a uniform shop operated as sole proprietorship, other business personnel might
include:
Sales associates/shop assistants- their responsibility will be assisting customers in
finding and trying on uniforms, processing sales , transactions, maintaining
cleanliness and organization of the store , restocking depending on the sole
proprietorship , the business owner may need on or two shop assistants.
Skills and qualifications of shop assistant: good customer service skills . basic math’s
for handling transactions, ability to work in a team and familiarity with the products
being sold.
Tailor / seamstress: responsibility will be : altering uniforms to fit customers
properly, repairing damaged uniforms, ensuring the quality of alterations and repairs.
Typically one tailor will be able to handle unless the shop is very large.

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Proficiency in sewing and garment alteration , attention to details , knowledge of
different fabrics and sewing machine also techniques.
Inventory manager/assistant : responsibility will be managing inventory
levels ,restocking merchandise, conducting inventory audits, coordinating with
suppliers for refreshment ,ensuring accurate record keeping of inventory , one
inventory manager /assistant should be sufficient for a mall business to medium sized
shop.
Qualifications and skills will be organizational skills , attention to details , basic
math’s skills, familiarity with inventory management software (if applicable)
Delivery personnel: responsibility. Delivering uniforms to customers , ensuring
timely and accurate deliveries, maintaining the cleanliness and organization of the
delivery bicycle .one delivery personnel will be required in a sole proprietor
depending on delivery volume.
Skills and qualifications. Valid bicycle riding license , good driving
records ,familiarity with the local area , customers service skills.
Cleaner/custodian responsibilities will be cleaning and maintaining the cleanliness of
the store including floors , windows and emptying trash, receptacles , restocking
supplies . one cleaner will be enough for a sole proprietor operating a small shop.
Skills and qualifications; attention to details, ability to work independently ,
knowledge of cleaning products and techniques.
4.4 RECRUITMENT TRAINING AND PROMOTION OF PERSONNEL
Recruitment method for a shop operating under a sole proprietor may include
advertising job vacancies in local news papers , online jobs boards or on the business
website. Additionally word of mouth referrals from current assistant family
members . the proprietor may also direct approach potential candidates who have
skills and experience needed for the job.
Qualifications and experience
Manager; a manager in a uniform shop may need a combination of retail
management , experience , knowledge of the uniform industry and strong leadership
skills. They may also need a degree in business administration or related field.

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Sales personnel :sales personnel will be required to have excellent customer service
skills ,knowledge of the products being sold and previous retail experience.
Tailors . tailors will be required to have experience in garment construction and
alterations as well as the ability to work with different types of fabric and sewing
machines.
Training.
On the training new family members or staff will receive training on shops products ,
services and techniques
On the product knowledge . training will be provided to ensure employees are
knowledgble about the uniforms and other products sold in the shops.
Customer service. Training on customer service skills will be provided to ensure
employees can effectively interact with customers.
Performance appraisal and promotion
This will be conducted periodically to evaluate the family members performance
based on pre-determination criteria such as sales targets, customers feedbacks and
adherence to business policies.
Promotion may be based on performance approval results with a family member who
meets or exceeds expectation being considered for advancement to high positions
within the shop.
Family staff separation procedure
In a sole proprietor it will include providing a notice to the workers conducting an
exit interview to ensure that all business properties are returned.
This will be done in consideration to fairness in treatment of family members.
4.5 RENUMERATION AND INCENTIVE PERSONNEL
In a sole proprietor uniform shop renumerations and incentives will be playing a
crucial role in attracting , retaining and motivating the family members. A sole
proprietor who will be the owner of the business and operator of the business he/she
will establish fair and competitive compensation structures to ensure the shops
success. This section will explore the renumeration guidelines ,wages , structures
bonus, awards, allowances , retirement benefits and other incentives that may be
offered to personnel in a sole proprietor shop.

21
Renumeration guidelines in a sole proprietorship uniform shop should be fair,
transparent and aligned with the business standards’ sole proprietor will establish
clear policies regarding wages structure , commissions , awards, allowances ,
retirement benefits and other incentives to ensure consistency and fairness across the
organizations.
Salary and wages for family members or position holder in sole proprietorship
uniform shop will be based on factors such as job responsibilities , qualifications,
experience and performance. The business owner might consider conducting regular
wage review to ensure family members are fairly compensated based on market
trends and the shops financial performance.
Commission /bonus awards . it will be effective incentives for motivating employees
in a sole proprietorship i.e sales staff will receive commission based on the number of
uniforms sold while others will receive bonus through meeting as or exceeding
performance targets ,this awards will be properly communicated to family members
to avoid misunderstandings.
Family members in a sole proprietor uniform shop may be eligible for various
allowances including house ,medical, hardship, holiday and other allowances. this
allowances are designed to help them meet their basic needs and will improve their
overall wellbeing.
A house allowance may be provided this will help to assist housing expenses .the
housing allowance vary depending on factors such as employees jobs level and
location, medical allowance will help to cater for medical expenses not covered by
health insurance .this allowances cab help to access quality health care and maintain
good health.
Hardship allowances will be provided to cater for working challenges or remote
locations. This allowance will help acknowledge the additional challenges faced by
those employees and will provide them with additional financial support. Other
allowances such as transportation or meal allowances may be provided depending on
shop policies and practices.
Retirement benefits are an important consideration for employees in a sole
proprietorship uniform shop . the sole proprietor will consider offering retirement

22
benefits such as retirement saving plans or pension schemes to help family members
save for retirement . it will help to achieve financial security in retirement years.
Other incentives may be discounts, family members will be offered discounts on
uniforms or others products sold in the shops also recognition program can help
motivate family members by acknowledging their hard work and contribution to the
shops success.
Training and development opportunities . this will provide the family members with
opportunities for training and development that will help them grow professionally
and improve the skills. Flexible working arrangements through offering flexible
working arrangements such as telecommunicating or flexible hours can help
employees achieve a better work life balance.
All of the above will be done in order to attract retail and motivate family members
leading to more productive and successful business.

4.6 LICENCES, PERMIT AND BY LAWS

To acquire a license or permit to operate a uniform shop as a sole proprietorship the
owner will typically need to follow the following steps.
Business registration. Register the business name with appropriate government
agency .this will involve registering a doing business as in operation under a name of
the business owner.
Based on business structure being a sole proprietor the owner is the business entity so
there will be no need to register as a separate entity or structure . Based on the local
business license the business owner will obtain license or permit from the city or
county where the business will be located, this often involves filling out an
application, paying fee and meeting any specific requirement set by the local
government.
The business owner will be required by the state or local jurisdiction on imposition of
sales taxes, the owner will need to register for a sale tax permit to collect and remit
sakes tax on uniform sales on the compliance with regulation the owner will have to

23
comply with any other applicable regulation such as safety standards for uniforms if
they apply.
4.7 OTHER SUPPORT SERVICES
Banking services will be essential for managing the financial transactions of the
uniform shop . this will include opening a business bank account to separate personal
and business finance , receiving payments from customers , Paying suppliers and
managing payroll. banking services will also involve obtaining loans or lines of credit
to financial business operations or expenses.\
For a sole proprietorship its important to choose a bank that will offer suitable
business banking products such as low cost. checking accounts business credit cards
and online banking services .the business owner will also consider compliance with
banking regulations and maintenance of accurate financial records for tax purposes .
Bookkeeping and accounting services .this will be crucial for maintaining accurate
financial records, tracing income and expenses and ensuring compliance with tax law
s in a sole proprietorship ,the business owner will handle book keeping and
accounting themselves to hire professionals, accountants or bookkeepers.
Bookkeeping involves recording financial transactions such as sales , purchases and
payments in a systematic manner , accounting involves interpreting analyzing and
summarizing financial data to prepare financial statements such as income
statements ,balance sheet and cash flow statements.
Legal services . this will be essential for ensuring the uniform shop complies with
laws and regulations related to business operation ,contracts employment and taxes. A
sole proprietorship may require legal services for various purposes such as drafting
and reviewing contracts resolving disputes and complying with licensing
requirements.
Legal services also include advising on business structure , intellectual property,
protection and risk management. It will be important for sole proprietor to consult
with a qualified attorney to understand and address legal issues that will arise in the
course of business operation.
Business management consulting services provide services valuable advice and
guidance to improve the efficiency and profitability of the uniform shop. Consultants

24
can help with business planning ,marketing strategy , operational improvements and
financial management.in a sole proprietorship business management consultancy
services can be particularly beneficial for developing a business plan, identifying
growth opportunities and implementing best practices . consultant also will provide
insight into competitive analysis to help the business owner make informed decisions.
Postal services . they will be important for sending and receiving mail , packages and
documents related to the uniform shop operations . this include. Mail invoices ,
correspondence with supplies and shipping orders to customers . A sole
proprietorship may also use postal services for market materials such as direct mail
campaign .
Other support services . other sup[porting services that may be needed for a sole
proprietorship uniform shop will include insurance services . insurance services will
be essential for protecting the business from risk such as property damage , liability
claims and employee injuries . a sole proprietor will consider obtaining insurance
coverage tailored to their specific needs.
IT services. IT services will be important for managing uniform shops technology
infrastructure including computer systems, software’s and networks this may involve
cutting up and maintaining a website , managing online sales platform and ensuring
data security.
Cleaning and maintenance services. Cleaning and maintenance services are essential
for keeping the uniform shop premises clean and well maintained . this includes
regular cleaning, repair and maintenance of equipment and fixtures.
Marketing and advertising services. Marketing and advertising services will be
essential for promoting the uniform shop and attracting customers This may include
creating advertisement campaigns , managing social media accounts and conducting
market research.
In conclusion , sup[porting services play a crucial role in success of a sole proprietor
uniform shop by utilizing banking , book keeping, legal business, management
consultancy , postal and other services. The business owner can effectively manage
operations comply with regulations and achieve long term growth and profitability.

25
 CHAPTER 5
5.0 PRODUCTION/OPERATIONAL PLAN
Type of Facilities required will be shop space. A sole proprietor uniform shop
requires space where customers can browse and purchase uniforms, work space will
be required a dedicated space for sewing ,cutting and other production services.
Office space also will be required this will be an area for administrative tasks such as
customer service, billing and record keeping
List of equipment and machinery showing cost and model ;
Sewing machine cost 10,000-15000 each model; single heavy duty 4452
Cutting table cost 5000-10000 each model; industrial cutting table
Stream iron cost 5000-10000 each model; rowenta steam iron
Embroidery machines cost 7500 each model; Brother SE600
Computer cost 30000-45000 each model; dell inspiron
Printers cost 20000-30000 each model; HP Deskjet

26
Any other facilities that will be required is internet connection cost 5,000-10000 per
month, security system cost 10,000-15000 for installation model; ATD security
system, utility connection cost 20000-50000 for set up
The business owner plans for repair and maintenance of the machinery will be
establishing a regular maintenance schedule for all machinery and equipment, the
business owner will hire a qualified technician for inspection and repair also maintain
a stock of spare parts for quick replacement.

The work place layout will be at the shop front there will be display rocks show
casting uniforms for sale,workshpp area there will be sewing machines, cutting tables
and ironing station, office areas there will be computers, printers and office supplies
and lastly storage area whereby there will be inventory and supplies storage.
The business level of production will begin with small production to meet local
demand. Scale production based on demand and market growth.
The business plan for future expansion will be allocated space for additional sewing
machines, cutting table and embroidery machines. Also there will be consideration
for adding a separate area for customers orders or specialized services also the
business owner will plan to increase storage space for inventory and supplies.

List of other fixed assets in future will be like additional sewing machine leased to
commence in 2 years, embrioidery machines leased to commence in 3 years,
additional display racks purchased in 2 years
Repair and maintenance of machinery, regular inspection and servicing by qualified
technician also immediate repairs for any breakdown to minimize downtimes

Suppliers for main equipment and machinery will be for sewing machines suppliers
will be singer sewing company, suppliers for cutting table will be from industrial
equipment CO, for computers and printer suppliers will be HP and Dell.

5.2 PRODUCTION STRATEGY

27
Ideation; Brainstorming and research for uniform style and research. Design; creating
sketches and patterns. Development; selecting fabric, colours for testing. Testing
assessing fit, comfort and durability. Refinement; making adjustment based on
feedback. Production; scaling up based on finalized design
Monthly materials required and their costs. Fabrics 50 yards at 1500 per yard ,
Thread; 50 spools at 200 per spool totaling 10000, Buttons; 500 buttons at 50 each
totaling 2500, Zippers; 50 zippers at 300 each totaling 15000
Technology employed will be sewing machines, singers heavy 4452 for sewing ,
embrioidery machines, Brother SE600 , computer; Dell inspiron for design and
administration task, Printers; HP Deskjet for printing patterns and documentation.
There will be no labour required since a sole proprietor handles all tasks . source of
raw materials, the fabrics, zippers, interfacing sourced from local suppliers and fabric
stores,
a sole proprietor labour consideration. A sole proprietor as the owner handles all tasks
without hiring additional workers with labour costs based on owners time spent on
activities.

5.3 PRODUCTION PROCESS

The production steps will be based on design, sourcing, cutting, sewing, quality
control and packaging. Design ; create or select uniform design based on customers
requirements, sources; procure raw materials such as fabric buttons and zippers from
suppliers, cutting; cut the fabrics according to the pattern of uniform design. Sewing ;
assemble the cut fabrics pieces to create the uniform . quality control; inspect the
finished uniforms for any defects or issues. Packaging; pack the uniforms for delivery
or display in your shop

Main features of the services that will be merchandised will be as follows;

customization; offer customization options for uniforms to meet the specific needs of
customers. Quality; the business owner should ensure high quality material and
craftsmanship in every uniform produced. Timeliness; provides efficient production
and delivery times meet customers deadline.

28
The internal factors that will likely to affect the operation process will be like labour
available. Availability of skilled labour for sewing and other production task.
Equipment also will be one of the factor this is because of maintenance and
availability of sewing machines other production equipment, inventory will also be
another factor that will be ensuring management of inventory

Plans to overcome the internal factors mentioned above will be about labour the
business owner will consider trainings regularly to improve the skill of production
team on equipment maintenance .The business owner will implement regular
maintenance schedule for sewing machine and equipment on inventory material. The
business owner will use inventory management software to track and manage
inventory level effectively.
Some of the external factors that will likely to affect production will be like; market
demand fluctuation in customers demand for uniforms . supply chain disruption.
Disruption in the supply is affecting the availability of raw materials. Economic
condition. Economic condition changes affecting customers spending on uniforms.
The plans to minimize the impact of external factors include; diversification. The
business owner will be required to diversify their products offering to cater different
market segments suppliers relationships. Build strong relationships to minimize
supply chain disruptions. Market research. Conduct regular market research to
anticipate change in market demand and adjust production accordingly.

5.4 REGULATIONS AFFECTING OPERATIONS.

Health regulations. The business owner should ensure compliance with local health
regulations regarding hygiene standards in production and handling of uniforms. The
business owner will maintain a clean and safe working environment to prevent health
hazards for the people working around and customers.

Trade marks, patents and copyrights. The business owner should ensure that any
logos ,design or brand names that will be used in uniform are not infringing on

29
 existing trademarks or copyrights consider registering the business trademarks or
design to protect your intellectual property.
Safety regulations, the business owner will have to adhere to safety regulations
regarding the use of machinery and equipment in the production process. Provide
safety training to prevent work place accident.
Environmental regulations. The business owner will be required to dispose waste
materials such as fabric,scarps,buttons, and packaging in an environment responsible
manner. The business owner will consider the use of co-friendly materials and
production method to reduce environmental impact.
Compliance and approvals. The business owner will be required to obtain necessary
business permits required to operate a uniform shop in their locality. Comply with
zoning regulations regarding the location of the shop.
Cost associated with compliance and approval. The business owner cost for obtaining
business license and permits required to operate a uniform shop vary depending on
the location and business level or type.
Costs of complying with health, safety, and environmental regulation may include
training equipment upgrades and waste disposal fee.
CHAPTER SIX

6.0 FINANCIAL PLAN

6.1 PRE OPERATIONAL COST
This will be the cost that shall be incurred before the proposed business starts to operate.
Items Amount Kshs
fixed assets, machines and equipment 243,000
Office supply and stationary 70,000
Rent deposit 13,000
Advertisement 40,000
installation cost (electricity and water) 10,000
Labour cost 30,000
Legal expenses 10,000
Permits and licenses 6,000

30
 Spare parts 57,200
staff clothing 4,800
Overheads 14,000
Total 500,000

6.2 ESTIMATION OF WORKING CAPITAL

Working capital for year 2025, 2026, 2027
Year 2025 Year 2026 Year 2027
Current assets
Stock spare parts 600,000 720,000 768,000
Debtors 360,000 864,000 840,000
Bank deposits 600,000 660,000 702,000
Cash at hand 180,000 180,000 194,000
Total 1,800,000 2,424,000 2,504,000
Less current
liabilities
Creditors 420,000 444,000 436,000
Loan payment 140,004 104,004 52,002
Total 5,241,000 548,004 488,002
Working capital 1,275,996 1,875,996 2,015,998

31
 6.3 BUSINESS PLANED PROFORMA CASHFLOW STATEMENT FOR THE YEAR 2025
AUG
JAN FEB MARCH APRIL MAY JUNE JULY SEP OCT NOV D
54307 106369
50000 179833 31754 435819 2 649295 760088 861061 96634 7 1159290 1263
W
M 32400 30000
0 326000 32900 315000 0 314000 316000 308000 304000 310000 315000 324
37400 84307 107608 137369
0 505833 646546 750819 2 963295 8 1169061 400634 7 1474290 1587
OW

) 45000 35000 40000 60000 45000 55000 60000 48000 55000 60000 60000 65
D
76500 76500 76500 76500 76500 76500 76500 76500 76500 76500 76500 76
15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15
ENT
ION 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24
12000 13000 12000 13000 15000 16000 16000 17000 17000 18600 17500 20
1000 1000 1000 900 1200 1000 1300 1200 1100 1000 900 1
5000 6000 7000 7300 8500 8000 10000 9500 8000 9700 8000 10
850 700 700 800 850 900 700 700 800
NT 6667 6667 6667 6667 6667 6667 6667 6667 6667 6667 6667 6
ST 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2

8000 14000 5000 6500 7000 8000 11500 6500 3450 10000 8000 6
6
ES 200 120 210 180 210 240 210 270 240 210 270

E 1000 2500 4000 3000 2000 4000 4500 4000 3000 4000 5
OUS 800 1000 1000 1500 2000 2000 3000 3250 3400 4000 2000 3
15116 21474
7 195287 217727 214727 7 200667 210207 209227 214137 221407 214667 230
VE 17983 64929 113929
3 317546 433819 543072 5 760088
32 861061 966834 1067097 0 1263653 1358
33
 6.4 BUSINESS PLANED PROFORMA INCOME STATEMENT FOR THE YEAR 2025
JAN FEB MARCH APRIL MAY JUNE JULY SEP OCT NOV DEC
31000
ES 324000 326000 329000 315000 300000 314000 316000 308000 304000 0 315000 324000
GOODS
45000 35000 40000 60000 45000 55000 60000 48000 55000 60000 60000 60000
25000
OFIT 279000 291000 289000 255000 255000 259000 256000 260000 249000 0 255000 204000

AND
76500 76500 76500 76500 76500 76500 76500 76500 76500 76500 76500 76500
15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000
EMEN

ON 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000
ITY 12000 13000 15000 16000 16000 17000 18500 18000 17000 18600 17000 20000
1000 1000 1000 900 1200 1000 1300 1200 1100 1000 900 1500
AGE 5000 6000 7000 7300 8500 8000 10000 9500 8000 9700 8000 10400
ARY 850 700 700 800 850 900 700 700 800 850
8667 8667 8667 8667 8667 8667 8667 8667 8667 8667 8667
NT
REST 8667
ARGES 200 120 210 180 210 240 240 210 210 270 240 270
ND
ANCE 1000 2500 4000 3000 2000 4000 4000 4500 3000 4000 5000
NEOUS 800 1000 1000 1500 2000 2000 2500 3000 3250 3400 3000 2000
22140
151167 195257 217727 214747 200777 210207 222027 209227 214137 7 217037 230317
IT
AX 127833 95713 71273 40253 54223 48973 33973 50773 34863 28593 37963 33683
ION 2557 1914 1425 805 1084 976 679 1016 697 572 572 759
IT
X 125276 93799 69484 39448 53139 47817 33294 49757 34166 28021 37204 34356

34
 6.4.1 BUSINESS PLANED PROFORMA INCOME STATEMENT FOR THE
ITEMS JAN FEB MARCH APRIL MAY JUNE JULY SEP

CASH SALES 350000 340000 450000 360000 335000 420000 335000 450000 50000
COST OF GOODS
SOLD 40000 30000 60000 45000 50000 30000 35000 25000 40000

GROSS PROFIT 310000 310000 390000 315000 285000 390000 300000 425000 460000
EXPENSES
SALARIES AND
WAGES 76500 76500 76500 76500 76500 76500 76500 76500 76500
RENT 15000 15000 15000 15000 15000 15000 15000 15000 15000
ADVERTISEMEN
T AND
PROMOTION 24000 24000 24000 24000 24000 24000 24000 24000 24000
ELECTRICITY 14000 13200 13000 12000 13000 11000 14000 12000 18000
WATER 1000 1200 3000 5000 1000 7000 4500 5000 7500
TEL/POSTAGE 7100 7300 7000 6000 6500 7000 6000 4000 5000
STATIONARY 200 300 700 700 850 900 650 500 750
LOAN 8667 8667 8667 8667 8667 8667 8667 8667
REPAYMENT
AND INTEREST 8667
BANK CHARGES 200 100 200 300 200 100 400 300 200
REPAIR AND
MAINTENANCE 2500 1000 1000 500 1000 1500 2000 1000 3500
MISCELLANEOUS 1200 1000 800 900 1500 1400 1800 1000 900
TOTAL 150367 131267 148867 159667 147717 153067 153517 146267 155367

35
 6.4.1 BUSINESS PLANED PROFORMA INCOME STATEMENT FOR THE YEAR 2027
JAN FEB MARCH APRIL MAY JUNE JULY SEP OCT NOV DE
40000
EXPENSES
S 180000 300000 290000 320000 215000 180000 170000 0 185000 400000 230000 3500
NET PROFIT
ODS
BEFORE TAX 159635 178733 191133 155333 137263 186933 146483 178733 240635
30000 30000 40000 32000 40000 30000 35000 38000 50000 40000 60000 300
2% TAXATION 3193 3575 3823 3107 2746 3739 2930 3545 4093
175000 36200 170000
NET PROFIT
FIT 150000 270000 250000 288000 0 1500000 135000 0 2350000 360000 0 3200
AFTER TAX 156440 175158 187310 15226 134537 183194 143553 175158 200540

ND
76500 76500 76500 76500 76500 76500 76500 76500 76500 76500 76500 765
15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 150
MEN

N 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 240
Y 8000 10000 12000 13000 9000 8500 9000 10000 8000 9800 10000 110
1000 1100 900 1200 1300 900 800 1000 1200 1000 1000 12
GE 4000 3500 6000 5000 4500 3000 3200 4000 3000 5200 5000 45
Y 800 600 400 300 300 100 800 500 500 800 5000 10
8667 8667 8667 8667 8667 8667 8667 8667 8667 8667 86
T
EST 8667
GES 100 300 300 100 200 150 200 300 200 100 300 4
D
NCE 1000 500 800 1000 500 700 900 500 1000 500 400 10
EOUS 800 1000 1200 900 700 1200 1000 1200 1500 1000 900 6
15136
129867 133667 165367 145367 133443 130373 127467 7 133367 250467 139267 2003

X 20133 36633 84633 92633 41557 19623 25533 21063 101633 109533 30733 1196
ON 403 733 1693 1853 831 392 511 4212 2033 2191 615 23
20642
19730 35930 82940 90780 40726 19231 25022 1 99600 107342 30118 1172

36
37
 6.5.1 PROFORMA BALANCE SHEET FOR YEAR ENDING 2025
DETAILS AMOUNT
FIXED ASSETS
Machines 243,000
Less: Depreciation 15% 36,450
206550
Furniture and fittings 188,000
Total fixed assets 324550
CURRENT ASSETS
Stock (spare parts) 57200
Tool, equipment and materials 101,250
Debtors 300,000
Rent deposit 15,000
Bank deposit 40,000
Cash at hand 10,000
Total current assets 223,450
LIABILITIES
Less: Current Liabilities
Creditors 48,000
Working capital 175,450
Employed capital 500,000
Financed by:
Capital owner equity 300,000
Add: Net profit 935,400
Long term liabilities
Bank loan 200,000
Totals 1,509,400

6.5.1 PROFORMA BALANCE SHEET FOR YEAR ENDING 2026

38
DETAILS AMOUNT
FIXED ASSETS
Machines 243,000
Less: Depreciation 15% 36,450
206550
Furniture and fittings 121,000
Total fixed assets 328150
CURRENT ASSETS
Stock (spare parts) 660,000
Tool, equipment and materials 101,250
Debtors 360,000
Rent deposit 15,000
Bank deposit 600,000
Cash at hand 18,000
Total current assets 1,916,250
LIABILITIES
Less: Current Liabilities
Creditors 42,000
Working capital 1,496,250
Employed capital 1,824,400
Financed by:
Capital owner equity 900,000
Add: Net profit 974,550
1,874,550
Less: Drawings 50156
Totals 1,824,400

6.5.1 PROFORMA BALANCE SHEET FOR YEAR ENDING 2027

DETAILS AMOUNT

39
FIXED ASSETS
Machines 243,000
Less: Depreciation 15% 36,450
206550
Furniture and fittings 188,000
Total fixed assets 3231,650
CURRENT ASSETS
Stock (Spare parts) 720,000
Debtors 864,000
Rent deposit 15,000
Bank deposit 660,000
Cash at hand 180,000
Tools and equipment and materials 109,300
Total current assets 2,548,300
LIABILITIES
Less: Current Liabilities
Creditors 444,000
Working capital 2,104,300
Employed capital 2,435,950
Financed by:
Capital owner equity 706835
Add: Net profit 807715
Long term liabilities 2514550
Bank loan 78600
Totals 2,435,950

6.6.1 BREAK EVEN POINT FOR YEAR 2025

Items Ksh
Salaries and wages 834,000

40
Rent 180,000
Loan payment 80,004
Loan interest 24,000
Licenses 6,000
Depreciation 36,450
Total 1,210,464

VARIABLE COST
Items Ksh
Advertisement and sales promotion 108,000
Electricity and power 124,200
Water 9,200
Telephone and postage 96,000
Stationers 7,930
Payment of creditors 271,500
Bank charges 2,460
Repair and maintenance 36,000
Purchases 436,000
Totals 1,091,290

41
6.6. BREAK EVEN ANALYSIS FOR YEAR 2026
Items Ksh
Salaries and wages 834,000
Rent 180,000
Loan payment 80,004
Loan interest 24,000
Licences 6,000
Depreciation 36,450
Total 1,210,454

VARIABLE COST
Items Ksh
Advertisement and sales promotion 108,000
Electricity and power 124,200
Water 9,200
Telephone and postage 96,000
Stationers 7,930
Payment of creditors 271,500
Bank charges 2,460
Repair and maintenance 36,000
Purchases 436,000
Totals 1,091,290

42
6.6.3 BREAK EVEN ANALYSIS FOR YEAR 2027
Items Ksh
Salaries and wages 834,000
Rent 180,000
Loan payment 80,004
Loan interest 24,000
Licenses 6,000
Depreciation 36,450
Total 1,210,454

VARIABLE COST
Items Ksh
Advertisement and sales promotion 228,000
Electricity and power 119,300
Water 12,100
Telephone and postage 94,400
Stationers 7,880
Payment of creditors 273,000
Bank charges 2,660
Repair and maintenance 37,000
Purchases 503,000
Totals 1,437,310

6.7.1 CONTRIBUTION MARGIN FOR YEAR 2025

Contribution margin = Sales – Variable costs

= 3,785,000 – 1,091,290 = 2,693,710
Contribution m arg in
x 100
Contribution margin % = Sales

43
2693710
x 100=71 .17 %
3785000

Total fixed expenses

x 100
Break even level = Contribution m argin %
1210454
=17007 . 92
71 .17

EXPECTED PROFITABILITY RATIO

Gross profit
x100
Gross Profit % = Total Sales
3202000
x 100=54 . 60 %
3785000

Post tax profit

x 100
Post tax profit % = Sales
646125
x 100=17 . 07 %
3785000
Post tax profit
x 100
Return on investment = Total Sales
646125
x 100=17 . 07 %
3785000

6.7.2 CONTRIBUTION MARGIN FOR YEAR 2026

Contribution margin = Sales – Variable costs

= 3,785,000 – 1,091,290 = 2,693,710
Contribution m arg in
x 100
Contribution margin % = Sales

44
2168710
x 100=66 . 52 %
3260000

Total fixed expenses

x 100
Break even level = Contribution m argin %
1210454
=18 , 196
66 . 52

EXPECTED PROFITABILITY RATIO

Gross profit
x100
Gross Profit % = Total Sales
2450000
x 100=68 . 05 %
3260000

Post tax profit

x 100
Post tax profit % = Sales
1995418
x 100=61 .20 %
3260000
Post tax profit
x 100
Return on investment = Total Sales
1995418
x 100=161 .20 %
3260000

6.7.3 CONTRIBUTION MARGIN FOR YEAR 2027

Contribution margin = Sales – Variable costs
= 3,440,000 – 1,437,310 = 2,002,690
Contribution m arg in
x 100
Contribution margin % = Sales
2,002,690
x100=58.22%
3,440,000

45
 Total fixed expenses
x 100
Break even level = Contribution m argin %
1210454
=20791 . 03
58 .22

EXPECTED PROFITABILITY RATIO

Gross profit
x100
Gross Profit % = Total Sales
2865000
x 100=83 . 28 %
3440000

Post tax profit

x 100
Post tax profit % = Sales
875080
x 100=25 . 43 %
3440000
Post tax profit
x 100
Return on investment = Total Sales
575080
x 100=25 . 43 %
3440000

6.8 DESIRED FINANCING

ITEMS AMOUNT
Pre-operational costs 200000
Estimated working capital 230000
Assets 35000
Total 780000

6.9 PROPOSED CAPITALIZATION

ITEMS AMOUNT

46
Personal savings 30,000
Bank loan 400,000
Family and friends 80,000

Total 780,000

47