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Astone Derick

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BRIAN CLIFF
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16 views5 pages

Astone Derick

Uploaded by

BRIAN CLIFF
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER ONE

BUSINESS DESCRIPTION
1.1 Name of the Business
The proposed business shall be “DERICK ELECTRICAL EQUIPTMENT SHOP”. The title fits
the business because it fines the state of the business as own idea and innovation to the family
benefit and back to the community in order to help other local people get employment and also
in earning profit.
1.2 Business Location
The business shall be located at Makongeni Road, in Homabay County. The place is suitable for
the business because there are many people both from Homabay and outside the county who
normally use electrical equiptment and the transport is easy since it has suitable roads. It shall
200m away from the main road off Homabay town.
1.3 Business identity
DERICK ELECTRICAL EQUIPTMENT SHOP will be te proposed name for the business.
P.O BOX 0365-40300
HOMABAY
astonederick@gmail.com
0791159038
1.4 Form of Business Ownership
The business shall be sole proprietorship. This shall enable easy decision making in the business,
all profit shall be enjoyed by the owner as well as taking all risks.
I chose the business because of the following reasons.
a. small capital required to start the business.
b. easy to operate
c. the owner enjoys all profits alone.
d. risk are also faced by the owner.
1.5 Type of business
The about to be started business is sale type of business. It shall deal with selling of electrical
equiptments.
1.6 Product and Services
There shall be provision of electrical equiptments in Homabay town as well as selling to an
individual within Homabay town as well as selling to an individual.
1.7 The Industry
The business falls under Electrical that deal with selling of electrical equiptments. The industry
shall be open in 5 years coming. It shall have branches in two years after opening one in
Homabay town and the other one in Kisumu.
1.8 Justification of opportunity
The business shall be successful in the town because of the accessible roads in the town where
the owner of the business shall use to transport the items to the customers that shall order for
them and this shall also enable individuals with cars to reach the eletrical shop in the town where
the business shall be situated there are a number of people that shall buy from the shop this shall
enable it to be successful.
1.9 Entry and Growth
1.9.1 Entry
The business shall be advertised through banners, posters and personal selling. Radio Stations
such as Ramogi FM shall be used to advertise the business. Billboards shall be placed off along
Makongeni road.
1.9.2 Growth
The business shall have its branch at Makongeni. Workers shall increase by ten people. There
shall be an increase of capital of one hundred and fifty thousand to start another branch.
1.9.3 Goals
The business shall have both long- and short-term goals to achieve.
1.9.3.1 Short Term Goals
Training all workers on the customer relation
Employing five more workers within the first year
1.9.3.2 Long Term Goals
Opening other branches of business within five years
The mission statement of the business will be to "experience the future with us"

1.10 Swot analysis


1.10.1 Strengths
They are elements which will empower our business in terms of continuity and
survivability. They include:
• Good relation with customers
• Affordable price
• Qualified personel
• Good quality products
• Reliable services
• Good management
• Good will of existing customers
• Adequate initial capital from personal savings and bank loan is guaranteed.

1.10.2 Weaknesses
These are factors that affect the business internally. They include:
• Bad customer relations
• Lack of adequate transport facilities
• Unaware of customers
• High operation cost
• Operation in small scale
• Serves a limit market
• Nature of the product.
1.10.3 Opportunities
They are elements in external environment that the business may use as its advantage.
They include
• Availability of real markets
• Type of the business adopted by the owner
• Cheap and readily skilled labour
• Room for expansion
• New and rapidly growing market.
1.10.4 Threats
These are external challenges that the business could face. They include:
• High taxation by the government
• Economic inflation
• Laws and policy governing the industry
• Frequent challenges in technology
• Stiff competition on the area
• High rental fee charges due to high demand for the strategic and convenient sites.
• High interest rate charged on bank loan thus reducing the profitable of the firm.
1.10.4 Anticipated problems
These are problems faced by the business during its operation time. They include:
• Lack of government support
• Bad customer relations
• Lack of finance for expansion
• Staff turnover
• Negative group influence.

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