CHAPTER ONE

1.0 Business description

The business to be generated will bear the name Jacob wholesale. It will be located at Busia town
along Matunga Ogalla road. The business will deal with selling different types of goods like
clothes

1.2 Market plan

My business will be located at Busia town at the round about opposite Mama watoto
supermarket and along Matunga Ogalla road. The place is very unique and is near a bus station
which facilitate transportation of product from my product. My business will control the market
and overcome the competitors by socializing well with customers and providing quality services
strategies will be analyzed to ensure that the business meets its profit level. Advertisement will
be put place so that clients will know he the business is situate and all the services provided.

1.3 Organization and management

The business will be organized and managed by myself as the manger. I will be responsible for
directing the activity to other staff for planning and coordinating. The staff wills management,
marketing manager, accounts clerk, watch and cleaners

The team will jointly work together to bring success of business. Experience people can be hired
to advice the enterprise in which way to follow

1.4 Operational plan

Business activities will be divided by the manager among the staff

This will be done depending on their qualified personnel facilities to be used and their capacity.
The set up rules and regulation will be followed strictly by all workers so as to perform
wonderful job. This will market my business and hand employment of quality workers will be
easily. Each worker will be expected to perform his or her assigned duty carefully and perfectly
so as to avoid accidents such as fire outbreak due to bad connection of cable
1.5 Financial plan

For effective smooth running of the first option hardware rules a total of kshs 8,422,980 as
starting capital, 90,650 will be used for salary payment to employees in the first month. Kshs
5,000,000 will be used for preoperational cost and 7,832,330 o buying stock
CHAPTER TWO

2.0 BUSINESS DESCRIPTION

2.1 BUSINESS NAME AND ADDRESS

The name of the business will be Comfort Rentals. As the name suggests the business shall be
built in a way that will enhance comfort to family couples and single individual, the address of
the business is

COMFORT RENTALS

P.O. BOX 2098

KISUMUM

Email homecomfort@gmail.com

2.2 BUSINESS LOCATION

After completion of m secondary education I opened a small venture shop where I was selling
small things I did this a year I gained experience. I traced the idea of opening and launching my
business to compete with others in order to succeed

Sketch map

Home of comfort rentals

To nyalenda

kakamega road kisumu road

kodele surbubs

To airport
2.3 FORMS OF BUSINESS OWNERSHIP

My business will be a sole proprietorship whereby I will be the owner of the business and I will
perform all the duties

Reasons why I choose sole proprietorship

(i) to enjoy profit alone

(ii) easy in decision making
(iii) the business will create employment opportunity in the community hence improving
their living standards

2.4 TYPE OF BUSINESS

The business will be wholesale. This will boast morale among the wonders hence cater for high
market share. This business will deal with rentals and with anything that is associated with
houses that it will be very available for customers at anytime so the risks taken and noted by the
owner without any consultations from anyone. Expansion is based on the income ie profit margin
and it is according to the decision of the owner

2.5 PRODUCTS AND SERVICES OFFERED

The business will deal with renting of houses varnish the business. 2.6 JUSTIFICATION AND
OPPORTUNITIES

The business will be very competitive with other types of rentals because I will offer
transportation to customers place around rarely do and this will attract more customers

The business will therefore survey on their weakness and capitalize on them and ensure that they
gain more profit

2.7 INDUSTRY

The business is likely to grow at high rate due to increase in population of people who require
my products.
2.8 GOALS OF THE BUSINESS

The goal of the operation of the proposed business project the entrepreneur shall attain the
following basic goals

(i) provide employment opportunities to the surrounding population

(ii) make more profit hence expanding the business
(iii) provide quality products and accompanying services at the most competitieve prices
(iv) encourages self reliance
(v) improve living standards

Increase in high population growth will lead to increase in demand of the rental house hence
industry will succeed mostly during month of April, December, January and during Easter
season..

2.9 ENTRY AND GROWTH STRATEGY

The entrepreneur shall do everything possible to gain in the market by instuting appropriate
strategy which shall include

a) advertisement

The business will introduced to the entire public through

(i) using signboards at strategic places

(ii) magazines newspaper and posters
(iii) radio TV etc
b) pricing strategies

Ensuring that the products and services are acquired at the economical cost to provide for profit

c) supplier strategies

Establishing and maintaining good relationship with the surrounding

d) product and services strategies

To provide products of the right qualities and accompanied services of higher quality
CHAPTER THREE

3.0 MARKETING PLAN

3.2 CUSTOMERS

The owner aims at individual families to form a large portion of his customers. The houses shall
be built with specific provision for different family needs in ration to number and status

3.3 Market share

This wholesale will establish the largest market which has strength over the other businesses
around because of quantity and quality products we sell and low prices offered to the customers

Sales

home of comfort
janam homes
jafot easy homes

3.6 COMPETITION

The highest competitors of our business are Janam and Jafot rental houses but due to our strong
competitor we able to compete them because of
Competition strength weakness threat

Products (quality) high low technology

Suppliers’ reliable low seasonal change

Location reliable seasonal change

Finance high low technology

Public utilities low high technology

3.7 Advertisement and promotion

The method used for advertisement of our products is bill boards, posters and radio because of
their reliability tour customers. The method used to promote our products is sales promotion
such as gifts such as buy one get one for free

3.8SALES PROMOTION

The business will try its best to attract and retain her customers through the following ways

a) special offer to her customer

b) price reduction
c) target promotion
d) gifts like calendars overall, helmet and T shirts

3.9 PRICING STRATEGY

The price of the houses shall be determined by the cost of materials from manufacturing
industries plus transportation costs and marginal profit

Fair affordable prices with relatively organized selling during services

Price = cost of production + profit + advertisement and transport expenses

3.7 SALES TACTICS

The house will be on cash basis and also on installment eg rental purchase terms here paid in
majority two installment at the term of placing order and 2nd installment will be at stay

3.8 DISTRIBUTION STRATEGY

The business shall get materials from manufacture company directly and also through
distribution. It shall sell to retails and also sell to finally customers in order to increase the sale
volume
CHAPTER FOUR

4.0 ORGANIZATION AND MANAGEMENT PLAN

Being the owner of the business I will be the boss for that case the managing director, there will
be of course other officers to work with who will form part of manger

Accountant who will be mainly concerned with coordinating planning and working on day to day
business transactions

Down the ladder there is the security for safety of the business

4.1 ORGANIZATION STRUCTURE

Managing Director

Chief account marketing manager

Accountant Watchman

Cleaner

4.2 KEY PERSONNEL

Title: Managing director

a) Manager

Qualification

(i) Holder of a certificate of fabrication

(ii) Have experience in fabricating
(iii) Have knowledge in entrepreneurship
(iv) Have 23 years
Title Accountant

(v) Aged 34 years and above

(vi) Should have a diploma in general agriculture
(vii) Work experience of not less than 2 years in any field

Duties and responsibilities

b) Accountant

Qualification

(i) Should attain certificate / diploma in accounts

(ii) Should prepare cheques and pay slips for all staffs
(iii) Should prepare clear report on financial matters records of the business

Duties and responsibility

(i) Concerned with production and marketing

(ii) Venturing new market for the product
(iii) Control quality of product and pricing

Qualification

(i) Holder of diploma in sales and marketing

(ii) Has knowledge in supplier
(iii) Has 3 years experience
(iv) Has ability to make his own decision correctly

Title Account clerk (cashier

Duties and responsibility

(i) Report to the chief accountant on accounts mattes

(ii) Receive revenue fro customers
(iii) Banking of cash received
Qualification

(i) Holder of certificate in account

(ii) Ability to handle cash
(iii) Has 2 years experience

Title Security officer

Duties and responsibility

(iv) Report to chief accountant on security mattes

(v) Keeps of strangers for the business
(vi) Mans the business properties

Qualification

(i) Be strict and hones

(ii) Be physically fit
(iii) Trained in security matters
(iv) Have 24 – 34 years
4.3 RECRUITMENT, TRAINING AND PROMOTION
(i) Recruitment

Is to be done accordance with the farm the personnel to be recruited need to forward their
respective certificates for qualification. The farm will announce recruitment thought, barazas
posters, radios and churches

(ii) Training

Is to be done through seminars on marketing sales and customers care in order to upgrade the
employees thus improving effectiveness and efficiency of the business

(iii) Promotion

Promotion is to be offered to the most productive employees ie salary increment and allowance.
4.4 REMUNATION AND INCERTIVES

Employee’s salary depends on individual job position and qualification in order to boost the
employees. Hardworking will also enable the manger to provide good working condition to the
employees.

The business shall also motivate workers by providing leave study for the workers who are
willing house and full payment of salaries in time.

Remuneration summary

Job title No of Basic salary Allowance Medical Total

employees allowance
Manager 1 14,000 3,500 2,500 20,000
Accountant 1 7,000 1,800 1,200 10,000
Account clerk 1 5,000 1,500 500 7,000
Marketing manager 1 5,000 15,500
watchman 2 2,500 500 x 2 500 x 2 8000

4.5 LEAVE DAYS PER ANNUM

Each employee should apply in writing in which the leave is to be offered. Non application of the
leave in the stipulated time may lead to a forfeit of the same in accordance to the code of
regulation

Maternity leave for women are provided for an d its 60 days this will be with approval by the
doctors consent and the written document (signed) filled clearly.

4.6 Employee work schemes

A retirement or pension scheme is provided and mandatory to all Members of staff. A monthly
contribution is deducted at 5% rate of the basic salary and the prospective employee contribute
25% of the officers monthly basic salary towards the scheme
The contributed amount will finally be handled to the retire after needing contract. Also the
employees will be registered to the NATIONAL HOSPITAL INSURANCE FUND

4.7 SUPPORTING SERVICES

Banking

The business will open current account with the cooperative bank to offer banking services like
loans, cheques and overdraft.

Insurance

To be insured the business will pay certain amount of money to an insurance company to cover a
risk which might be incurred in future.

4.8 LEGAL REQUIREMENT

I will alias with the county council to issue me with the trading license, authorizing me to operate
the business without any disturbance for the council

Trading licence

The legal document is obtained from the local council and is required to show that the authority
has been granted for the business to operate

Business permit

A permit is a legal document obtained din order to warrant a certain product to the sold. Various
condition must be observed before it is issued to the business owners. The sanitation of the
business place is checked the conduction of the product among others
CHAPTER FIVE

5.0 OPERATION PLAN

5.1 FACILITIES AND CAPACITY AND OTHER COSTS

The option hardware enterprise will have various facilities running of the business. The facilities
will be bought through hire purchase and each price terms

Hire purchase terms

Will be used to purchase the most expensive assets that will be required by the business

Advantages

i) It does not call for security in acquiring its assets

ii) It give the buyer a chance to use the assets before acquiring it fully

Disadvantages

i) It is an expensive way of acquiring assets

ii) It involved a lot of formalities to obtain the assets

Cash Price

This is where the buyer pays the entire amount immediately to acquire the asset

Advantages

(i) It is cheap compared to hire purchase terms

(ii) The ownership is immediately transferred to the buy
(iii) The buyer is entitle to cash discount

Disadvantages

(i) Very difficult to raise money

Facilities

Description no Capacity Rates Amount

Building liensed 50000
Tables 1 purchase 500000 500000
Vehicle 4 Upendo suppliers 3000 12000
Counters 3 Kupendelea supplier 1800 4000
Calculators 2 Kupendelea supplier 30000 60000
Computers 10 Kupendelea supplier 500 5000
Generators 10 Kupendelea supplier 250 2500
Cookers 5 Jambo manufacturer 200 1000
Fire extinguishers 4 Purchase 30 120

429000

5.2 PRODUCTION CAPACITY

Production process of first option hardware will be as follows

Purchasing /ordering of goods

After assessing the demand of the goods the market, the business will make order for the goods
to be purchased form agents Nyalendai suppliers Kisumu. A list of the goods to be supplied will
be sent to them

Transport

The Nyalenda supplier is will transport and deliver the goods orders offered at the business
premises that is Jacob wholesaler

Receiving and verification of goods

The business will receive and verify the goods delivered against the order note to ensure that the
goods delivered are the owners ordered by the business
Storage

Goods delivered and accepted will be favaourbly stored in the conditions in the business store
sharp objects will be kept and handled with great care to avoid injures

Making payment

First option hardware will make payments to the purchased good from Ukweli suppliers within
period of 7 days since the goods were delivered.

5.3 PRODUCTION STRATEGY

These are strategies to be used in order to attain the objectives of the business

They include;

1. Quality houses
2. Variety of house
3. Genuine houses
4. Advertisement

5.4 FUTURE PLAN

Other branches

Jacob wholesaler intends to one another branches in Ugenya town. This is because in this area
there is high demand due to high population

Motor vehicle

The business plans to by along on hire purchase basils instead of leasing

The owner also intend to buy a van for private purposes

 5.5 REGUALTIONS AFFECTING OPERATION ENVIRONMENT

Both internal and regulation will be observed by first option hardware

External regulation

Trading licence act cap 487

Is an act of parliament for every business to have a trading licence. Therefore first option
hardware will acquire license from Kisumu Municipal Council

Employment act cap 226

Is an act of parliament which sets our contacts of services and provision on such, matters as
dismissal notice of termination of services of an employer and keeping records of employees

Weight and measured act cap 513

The act provides for law relating to the sue manufacture and sale of weights and measures and
provides for introduction of sale units SCC of the act states, any person who sells goods of any
weight of lesser quantities will be held responsible. It also provides that no person sells products
of lesser quantity which do not correspond with price, this person will be guilty of an offence
 CHAPTER SIX

6.0 FINANCIAL PLAN

6.1 Financial requirement

The effective and smooth running of first option hardware the owner will require a total of ksh 8,
422,980 as capital to start the business, 90 650 will be used for salary payment to employees in
the first month. Kshs 5,000,000 will be used for pre operational cost and ksh 7,832,330 on
buying stock. The finance will be needed as at 1 st January 2017 when the business will start
operation

6.2 Desired funding

The business owner will require funds from the following sources

- Personal savings
- Loan from bank
- Friends and relatives contribution

Sources of funds Amount Loan interest Security

Personal saving 785,650 - -
Loan from cooperative 105,000 10% Shares
Borrowing from friends 500,00 - -

6.2.1 Total desired financing

Personal savings 785,650

Pre operations cost 500,000

Bal C/f to cash flow statement 285,650

Add loan from KCB 105,000

Add friends contribution 500,000

Total 2,176,300
6.3 PRE OPERATIONAL COSTS

ITEMS COSTS
Licence 8,000
Permits 6,000
Advertisement 3,000
Fixed asset 483,000
Total 500,000

6.4 operation cost

Item s 2017 2018 2019

Electricity 12000 12000 12000
Telephone 6000 6000 6000
Salary wages 1097800 1097800 1097800
Insurance 10000 10000 10000
Selling and dist 15000 15000 15000
Expenses
water 9600 9600 9600
1140800 1150400 1150400

6.5 Personal expenses

expenses COSTS
Fees 36,900
Traveling 7,200
Medical 6,000
Entertainment 10,680
Total 60,080
 6.3 PROJECT CASH FLOW FOR FIRST YEAR 2017

Particulars Jan Feb. Mar Apr may Jun July Aug Sept Oct Nov Dec
Cash flow 50000 30000 50000 74500 94500 119000 135000 149000 193500 193500 212500 237000
starting cash
Cash sales 20000 25000 30000 25000 30000 20000 20000 25000 25000 30000 30000 25000
Total cash 70000 55000 80000 99500 124500 144000 155000 174500 218500 242500 242500 23200
purchase 30000
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Salary 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
Advertising 3000 3000
Transport 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Stationary 1000
Miscellaneous 500 500 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Total cash out 40000 5500 5000 5500 5500 5500 5500 5500 6000 5500 5500 5500
flow
Ending cash 30000 50000 74500 94500 119000 135000 149000 193500 193500 212500 237000 226500
 6.4 PROJECT CASH FLOW FOR FIRST YEAR 2017

Particulars Jan Feb. Mar Apr may Jun July Aug Sept Oct Nov Dec
Cash flow 50000 30000 50000 74500 94500 119000 135000 149000 193500 193500 212500 237000
starting cash
Cash sales 20000 25000 30000 25000 30000 20000 20000 25000 25000 30000 30000 25000
Total cash 70000 55000 80000 99500 124500 144000 155000 174500 218500 242500 242500 23200
purchase 30000
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Salary 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
Advertising 3000 3000
Transport 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Stationary 1000
Miscellaneous 500 500 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Total cash out 40000 5500 5000 5500 5500 5500 5500 5500 6000 5500 5500 5500
flow
Ending cash 30000 50000 74500 94500 119000 135000 149000 193500 193500 212500 237000 226500
 6. Home of comfort rentals quarterly project for the year ended 31st December 2018

Narration 1st quarter 2nd quarter 3rd quarter 4th quarter Total
Beginning cash 871440 555040 609365 684715 27205660
Credit sales 299000 310450 609450
Sales of stock 279000 650425 660450 670450 2560325
Total cash flow 1150440 1205465 1269815 1355165 4980885
Expenses license 8000 8000
Permit 1000 1000
Advertisement 281000 3000 3000
Purchase 150000 297500 305000 31000 1193500
Credit purchase 3000 210000 80000 60000 500000
Electricity 271950 3500 2500 3000 10878000
Salaries 10000 271950 271950 271950 10000
Insurance 20000 6500
Sett & distribu 2400 1500 1000 2000 60000
Water 1050 2600 2100 2500 4200
Loan interest 595400 1050 1050 1050 2382100
Total cash 296100 585100 60500
Out flow
Closing balance 555040 609365 684715 749665 2598785
 6. Home of comfort rentals projected for the year ended 31st December 2018

Narration 1st quarter 2nd quarter 3rd quarter 4th quarter Total
Beginning cash 749665 756570 773820 731175 3011230
Sales of stock 600000 600000 540300 600000 2340300
Total cash flow 1347665 135570 131420 1331175 5351330
Expenses license 8000 8000
Permit 1000 1000
Advertisement 500 500
Purchase 305545 305500 305045 305500 1221590
Electricity 3400 2600 3500 2500 12000
telephone 200 100 50 350
Salaries 271950 271950 271950 271950 1087800
Water 2500 2600 2400 2500 10000
Total cash 593095 582750 582945 582450 23411240
Out flow
Closing balance 756570 773820 731175 748725 3010290
 6. Home of comfort rentals quarterly project for the year ended 31st December 2017

Narration 1st quarter 2nd quarter 3rd quarter 4th quarter Total
Beginning cash 871440 555040 609365 684715 2720560
Credit sales 299000 609450
310450
Sales of stock 279000 650425 660450 2560325
670450
Total cash flow 1150440 1205465 1269815 1355165 4980885
Expenses license 8000 8000
Permit 1000 1000
Advertisement 3000 3000
Purchase 28100 297500 3050000 1193500
31000
Credit purchase 150000 210000 80000 500000
60000
Electricity 3000 3500 2500 12000
3000
Salaries 271950 271950 271950 1087800
271950
Insurance 10000 10000
Sett & distribu 2000 1500 1000 6500
2000
Water 2400 2600 2100 9600
2500
Loan interest 15000 15000 15000 60000
15000
Total cash 1050 1050 1050 4200
1050
Out flow 595400 596100 585100 2382100
60500
Closing balance 555040 609365 684715 2598785
749665
6.7 Break even point

Contribution = sales – total variable

Year 2017 1162000 – 47600 = 1114400

Year 2017 1162000 – 31000 = 113900

Year 2018 1162000 – 22850 = 1139150

Contribution margin (contribution x 100

Sales

Year 2017

114400 x 100

2404390

46.35%

Year 2018

113100 x 100

2559325

44.19%

Year 2017

1139150 x 100

1276470

89.24%