UMOJA ELECTRONICS

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TITLE : BUSINESS PLAN

PRESENTED BY : EDWIN KIBIWOT RUTO

INDEX NUMBER :5520011275

PAPER NO :

ADM NO :BS22/185005

CENTRE NAME :RIFT VALLEY INSTITUTE OF SCIENCE AND

TECHNOLOGY

CENTER CODE :552001

SUBMITTED TO : KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL FULFILMENT

FOR THE AWARD OF DIPLOMA IN HUMAN RESOURCE MANAGEMENT

SUPERVISOR :MR SUMUKWO MICAH

EXAM SERIES :July 2023

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 EXECUTIVE SUMMARY

CHAPTER ONE:

Business Description

In this chapter it shows business name,the location and address of the business.

also shows of ownership acquired and products and services offered in the business.It also shows justification of
the opportunity, the industry and business goal which is classified into short term and long term goals.It also
shows the entry growth strategy which would enable it into the business.

CHAPTER TWO:

Marketing plan

This chapter describes different way of trading and types of customers the business Target to serves.Its growth will
be determined by the quality of goods and services offered hence determining the profit of the business.

It will also show the competitors of the business, also indicate how the business will capitalize on their
weakness,hence its success method of promotion and advertisement made to improve the business are clearly
shown.It also shows pricing strategy,sales tactics and distribution strategy of the business.

CHAPTER THREE:

Organisational plan

This chapter contain the management of the business and it's organization structure.The business has personnel
management with stated responsibilities respective for their qualifications.

Recruitment employees, training and promotion of workers and others important exercise are clearly shown this
chapter.It also show how remuneration and incentives are done and also the legality of the business.

CHAPTER FOUR:

Operational and production plan

This chapter contain production and operational plan for the business.The business is largely dealing with sales
and repair of electrical tools and equipment hence their estimated cost are shown.

It also show the business layout,production strategies, designs and development of the business, calculation of
monthly materials required for the business to operate.

CHAPTER FIVE:

Financial plan

In this chapter will include calculation and totals of different finance plan like the operational cost ,the working
capital etc.

It also shows the cash flow projection for one year which is tabulated and the accumulated cash.
The other calculation and include balance sheet,income statement which has net profit after taxation,break even
level of the business and break even level of sales .

It has probability ratios which shows how the level of success of the business are calculated.

1.0: BUSINESS DESCRIPTION

Umoja electronics will sell and service customers and it's accessories.It will also offer custom built computer
networking solution and other accessories concerning electronic services. Umoja electronic will be located in
Nakuru around serein college.

1.1: BUSINESS NAME

Umoja electronic is the preferable name for the proposed business.Umoja is the choosed name because it would
bring people together,so it acts as an advertisement.

1.2: BUSINESS LOCATION AND ADDRESS

Umoja electronics will be located at Nakuru around serein college.Its 1km from the main stage .The reason for
choosing this location is because it's along the road hence enhancing easy transportation of goods and services and
also many students are around there ,thus would promote the business and also people may find easy to relocate
when they have problem with their electronic gadgets and also buying them at affordable prices

The business address is;

UMOJA ELECTRONICS

P.O BOX 4115

NAKURU

Telephone No:0705451624

EMAIL; rutozedu15@gmail.com
1.3:FORM OF OWNERSHIP
The proposed business will be owned and operated by one person therefore classified as sole proprietorship.For
this business to run smoothly the owner,needs a good idea,a lot of determination and an endless supply of
energy.Unlike other form of business,sole proprietorship is simple and inexpensive to create and operate and the
owner report profit or loss on his or her personal tax return.

Thus capital contributed and invested is as follows.

MAIN CONTRIBUTION AMOUNT

PERSONAL CONTRIBUTION 400000

LOAN FROM BANK 800000

FRIENDS AND RELATIVES 300000

FAMILY SAVINGS 500000

Totals 2000000

1.4:PRODUCTS AND SERVICES

It is important that people have a quality resources for buying and selling computers.Umoja electronics will
provide it's client with such quality resources.Thus services offered would be;

• Offering a variety of computers which covers customers preference and taste.

• Will make available available of CCTVs cameras ranging from customers to big business and help in
installation of those cameras
• Offering of full networking solution.
• Offer surge protectors that protects all circuit of a house from a surge in current emanating
• We also sell electrical materials like cables, switches, lighting system, phones, laptops, woofers etc.

1.5:TYPE OF BUSINESS
I decided to start the business from the start-up capital which would be used to buy new mechandise.Umoja
electronics which will amount to approximately 2000000.

1.6: JUSTIFICATION OF OPPORTUNITY

The assurance that the success of business will be profound because of the following:

• Availability of knowledge and skills required to run any business which I had studied.
• The business will be situated in an area which would be accessible to everyone thus enhancing the
business to grow well.
• Research would be done and more consultation on how to grow into the business.
1.7: INDUSTRY
The business will be both commercial and service industry as it will base on purchasing materials etc to sell them
to customers as well as doing services like repairing of motors.This industry is suitable because transportation of
material will be easy due to access of roads.

1.8: BUSINESS GOALS

1.8.1:Short term goals
a) The business will create job opportunity to self and other people around.
b) Will provide the business with the best and quality products and services
c) Would establish very successful business thus promotes income

1.8.2: Long term goals

a) Will maximise profits and lose.
b) To venture into other small business besides video shows and installation of electrical
materials
c) To open other branches elsewhere so as to reach many people with our services and products
hence grow into bigger business.

1.9: ENTRY AND GROWTH STRATEGY

1.9.1:Entry strategy
The business will employ many tactics and ways of penetrating into the market ,which include the following;

• By lowering prices of some products and services so as to attract customers .

• Offering promotion like giving out discounts and incentives to customers.
• Making more advertisement through posters,social medias etc so as to promote our business

1.9.2:GROWTH STRATEGY
For business to grow into a large enterprise, the following is required,

• Creating more space for expansion of the business.

• Steady carrying out advertisement and frequent promotion.
• Employing dedicated and qualified personel who can manage the business well

2.0: MARKETING PLAN

Umoja electronics has a strategic plan to achieve it's objectives and to reach the market
demand.This plan is likely to make the business expand it's operations and space. The business will
be located in a centrally place which can be accessible by many people . The pricing of items and
services would be relatively cheaper compared to other competitors.

2.1: POTENTIAL CUSTOMERS

The business targets is to win both domestic and commercial customers.

• Commercial customers-this would be middle men and hawkers who will buy goods from the
business and sell them in the existing market.
• Domestic customers-This would be general public especially students in the nearby college who
are the most targeted,as they will bring their electronics gadgets for repair and as well buy items from the
enterprise

The total targets of market plan of umoja is to bring up products and services near to customers. It will also
ensure sufficient supply of goods and services to customers and to make sure products are readily available.

2.2:MARKET SHARES
Through research done thoroughly on the market in the area the business is expected to reach and
serve 3000 potential who are in the area . There will be stiff competition from other business like
Metro,James and Bush electronics shop.

BEFORE PENETRATION IN THE MARKET

METRON JAMES BUSH TOTALS

ELECTRONIC ELECTRONICS ELECTRONICS

SALES 30000 25000 40000 95000

MARKET SHARE 35% 25% 40% 100%

AFTER PENETRATION INTO THE MARKET

METRO JAMES BUSH UMOJA TOTALS

ELECTRONIC ELECTRONIC ELECTRONIC ELECTRONIC

SALES 30000 25000 40000 20000 115000

MARKET 27% 23% 30% 20% 100%
SHARE

2.3 COMPETITION

Umoja electronics will face stiff competition from other business such as, Metro, Bush and James
electronics shop which were established three years ago. The business will base on the competitors
weakness ,so as to conquer the business. Despite competition, the enterprise would have
measures to cope and analyze competition as surmmarised below