EXECUTIVE SUMMARY
1.0. Business Description
The name of the business will be Modern Woodworks Furniture Store. The business will be
located along pipeline in Dandora Phase III, Nairobi County. The business name is based on the
products and services it offers. The name indicates that the items in the shop would match the
needs of housing contractors and furniture workers. The business logo will also be a reflection of
the services offered.
1.1 Business Name
The name of the business will be Modern Woodworks Furniture Store.
1.2 Business Vision
To be a leading furniture manufacturer offering innovative and superior quality products
1.3 Business Mission
To create value for our customers through reliability and flexibility
1.4 Business location
The business will be located along pipeline in Dandora Phase III opposite Dandora Terminus
Seventh Day Adventist Church. The business aims to serve customers from Dandora Phase I, II,
III and IV. This is a strategic point as it will be directly accessible to many people from all the
locations. The business is also located in an area with a mosque, a hospital, a catholic church,
two primary schools and one secondary school; hence more people will be aware of the business’
existence.
Sketch of the business location
1.5 Type of business
This business will be a retail business that sells items and services to customers. The business
will purchase goods in large quantities from suppliers and sell them in small quantities to
consumers. The business will be in the wood and furniture industry as it will be concerned with
timber trade and the production of wood products such as furniture.
1.6 Form of ownership
Modern Woodworks Hardware will start as a sole proprietorship registered in Nairobi County,
Njiru ward and managed by Nelly Awuor Abuor. The business will be registered under the
Registration of Business Names Act under the name Modern Woodworks Hardware. The
advantage of sole proprietorship to the business is that there is simplified management as the sole
proprietor is in charge of the business without any need to defer to a board unlike in a company
where decisions are deferred to the board for approval.
As a business registered under sole proprietorship, only the proprietor of the business name will
be entitled to the business’ profits unlike in a company where profit is split among shareholders
in form of dividends. As the sole proprietor under the business name, taxation will be done at the
personal level as business expenses are deducted from all income including business income
unlike in a company which has taxes at the corporate and dividend level.
1.7 Product Description
Modern Woodworks Furniture Store will provide a wide range of products and services which
include:
Products Services
Plywood Delivery and transport
services for goods above KES
5000 within a 5 KM radius
Door frames Repair services at a subsidized
cost
Cloth and shoe rack Installation services at no cost
Tables Warranty for goods damage in
transit by the business
Chairs Warranty for goods lost in
transit by the business
Desks
Beds
Book cases
Firewood
Sawdust
Timber
1.8 Justification of opportunity
The business is necessary because with the fast growing economy of Kenya and the ever
increasing need for home improvement and investment in real estate building which remains one
of the most profitable businesses in the market. The owner of the business also has experience in
this industry because the owner’s family has a business of the type hence making her competent
to run this business.
1.9 The Industry
The business will be in the wood and furniture industry which is currently growing rapidly as
more people are seeking for office and home accommodation and so does the demand for wood
products. Furthermore, the rise in Kenya and Africa’s economy due to its vast and quickly
growing urban population are some of the reasons the timber and furniture industry is thriving in
Kenya and in Africa. In Kenya, the wood and furniture industry is growing at a Compound
Annual Growth Rate of 10% over the past five years making this business a good place to
venture into. Within this business’ location, over two businesses have opened within the last one
year and all are still operational.
1.10 Entry Strategy
The business will enter the market by charging for products and services at a slightly discounted
price with regard to profit making and client attraction. The business will conduct promotions
and advertisement through use of media tools such as Facebook and WhatsApp messenger.
Brochures will also be distributed in the surrounding location specifying the products, the
business location and contact information of the owner. Posters will also be placed at strategic
positions to attract customers’ attention. There will also be an opening ceremony to launch the
business to create awareness of its existence to potential customers.
1.11 Growth Strategy
The business will invest back the profit gained into the business to obtain more products and
expand the business. The business will recruit skilled and competent employed who are
knowledgeable in the field of furniture making and can be able to efficiently interact with
customers. The business will also conduct training to the staff on customer interaction,
equipment management and overall management of the business. As the business grows, the
business will consider partnering with other entrepreneurs to make management easier and to
expand the business further. As the business grows, there will be product diversification in order
to sell more products to a wide range of customers.
CHAPTER TWO
2.0 Objectives of the business
2.1 Customers
2.2 Market share, size and competition
2.3 Promotion methods
2.4 Pricing strategy
2.5 Sales tactics
2.6 Distribution strategies
2.7 Location premises and their influence to marketing
