BUSINESS PLAN

TITLE: CLARE TECH COMPUTER DESIGNS

INSTITUTION: KISII NATIONAL POLYTECHNIC

DEPARTMENT: COMPUTING AND INFORMATICS

NAME: CLARE KERUBO OBIERO

ADMISSION: DCSM24/0346

COURSE: COMPUTER SCIENCE

PRESENTED TO: KISII NATIONAL POLYTECHNIC FOR THE AWARD OF CDACC

MARKS

SUPERVISOR: MD RUTH MARABU

i
 DECLARATION

I declare that this business plan has never been presented before and it’s my original work and

idea.

Name. CLARE KERUBO OBIERO

Signature……………………………………………….

Date …………………………………………………….

Supervisor name MD RUTH MARABU

Signature……………………………………………….

Date…………………………………………………….

ii
 ACKNOWLEDGEMENT
I would like to thank my supervisor together with department for giving me fully support to

complete my business plan.

iii
 DECLARATION
I dedicate this business plan to my beloved ones and my lectures for encouragement and advice

may the blessings of almighty be upon them.

iv
Table of Contents
ACKNOWLEDGEMENT.................................................................................................................................iii
DECLARATION.............................................................................................................................................iv
Customers..............................................................................................................................................vii
Managers and qualifications..................................................................................................................vii
1PRODUCT OR SERVICE DESIGN AND DEVELOPMENT..........................................................................viii
PRE OPERATIONAL COSTS.....................................................................................................................viii
1.2 Business location and address...........................................................................................................1
1.3 Form and type of ownership..............................................................................................................2
1.4 Products and services........................................................................................................................2
1.5 Justification of opportunity................................................................................................................2
1.6 Industry..............................................................................................................................................3
1.7 Goal of the business..........................................................................................................................3
1.8 Entry and growth strategies...............................................................................................................3
CHAPTER TWO.............................................................................................................................................4
MARKETING PLANNING...............................................................................................................................4
2.1 Customers..........................................................................................................................................4
2.2 Market share......................................................................................................................................4
2.3 Competition.......................................................................................................................................4
2.4 Method of promotion and advertising...............................................................................................5
2.5 Pricing strategy..................................................................................................................................5
2.7 Sales strategy.....................................................................................................................................6
2.7 Distribution strategy..........................................................................................................................6
CHAPTER 3...................................................................................................................................................7
3.1ORGANIZATION STRUCTURE...................................................................................................................7
Flow chart of organization.......................................................................................................................7
3.2 Managers and qualifications..............................................................................................................8
Responsibilities of a manager..................................................................................................................9
3.3 Personal number and duties..............................................................................................................9
3.4 Recruitment, Training and Promotion..............................................................................................11
3.5 Renumeration and incentives..........................................................................................................11
3.6 Licenses, permit and by law.............................................................................................................13

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 3.7 Support services..............................................................................................................................13
CHAPTER 4.................................................................................................................................................14
DESCRIPTION PLAN....................................................................................................................................14
4.1PRODUCT OR SERVICE DESIGN AND DEVELOPMENT........................................................................14
4.2 PRODUCTION OR OPERATIONS FACILITIES AND CAPACITIES...........................................................14
4.3 PRODUCTION OR SERVICE STRATEGY...............................................................................................16
4.4 PRODUCTION PROCESS...................................................................................................................17
4.5 REGULATION AFFECTING OPERATIONS...........................................................................................17
CHAPTER FIVE............................................................................................................................................18
5.0FINANCIAL PLAN...............................................................................................................................18
5.1 PRE OPERATIONAL COSTS................................................................................................................18
5.2WORKING CAPITAL............................................................................................................................19
5.3PREPARATION OF CASH FLOW PROJECTION.....................................................................................20
5.4 PREPARATION OF PROFORMA INCOME STATEMENTS AND BALANCE SHEET...................................22
5.4.1 PROJECTED INCOME STATEMENT.................................................................................................22
5.4.2 PRO FORMA BALANCE SHEEET.....................................................................................................23
5.5CALCULATION OF BREAK EVEN POINT..............................................................................................24
5.5.1 CONTRIBUTION MARGIN..............................................................................................................24
5.5.2CONTRIBUTION MARGIN%............................................................................................................24
5.3DETERMINE THE TOTAL FIXED COST.................................................................................................25
5.5.4BREAK EVEN LEVEL OF SALE IN SSIT...............................................................................................25
5.5.5BREAKEVEN POINT TO UNITS.........................................................................................................25
5.5.6BREAK EVEN POINT IN SALES.........................................................................................................25
5.6CALCULATION OF PROFITABILITY RATIOS..........................................................................................25
5.6.1GROSS PROFIT MARGIN.................................................................................................................25
5.6.2RETURNS ON EQUITY.....................................................................................................................25
5.6.4RETURNS ON ASSETS.....................................................................................................................26
5.6.5CURRENT RATIO.............................................................................................................................26
5.7 DESIRED FINANCING........................................................................................................................26
5.8PROPOSED CAPTALIZATION..............................................................................................................27

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 EXECUTIVE SUMMARY

Business Name

The name of the business will be Clare Tech computer designs. The business name will be

attained from the knowledge i gained back in my college where by I pursued computer science

from Eldoret National Polytechnic hoping that my skills can enable my prosperity in designing

and provide the best services to the community’s personally come from Nairobi county, Pipeline

subcounty since I don't have experience in the business world I will use the skills that i learned

back in college and also get from my colleagues. The business will offer graphic design and web

design services and it will commence on May 2026 to May 2029.

Customers

The proposed business will be entirely targeting all class of people in the whole community.

This includes high class earners, middle class and low class.The business will approximately

have a thousand people taking our services per week

Managers and qualifications

I will be the manager in the proposed business

I will fund the business and be a general leader

Qualifications of a manager

1 Diploma or a degree in business management

2 Has three years’ experience

vii
1PRODUCT OR SERVICE DESIGN AND DEVELOPMENT

The business will meet with the client to understand their specific needs target audience, and

desired message for the designing. Through the following I will intend to develop my proposed

products or services by sourcing, selecting, pricing and service department. By inventory

purchases, staff training and technology equipment will be costly I will incur in designing and

developing my service. Service technology will be the kind of technology i will use in offering

my service. The business management will strive to select the best available technology for our

needs considering factors like cost, functionalities and reliability, continuous monitoring and

training development will be the plans to cope with changes in technology and their effect on

service

PRE OPERATIONAL COSTS

Before the proposed business enterprise starts its operation, advance preparation will be taken

into acquiring of the facilities that will be necessary for the business to start its operation. The

business will have the following incur for the commence

viii
 CHAPTER ONE

Business Description

1.1 Business Name

The name of the business will be Clare Tech computer designs. The business name will be

attained from the knowledge i gained back in my college where by I pursued computer science

from Eldoret National Polytechnic hoping that my skills can enable my prosperity in designing

and provide the best services to the community’s personally come from Nairobi county, Pipeline

subcounty since I don't have experience in the business world I will use the skills that i learned

back in college and also get from my colleagues. The business will offer graphic design and web

design services and it will commence on May 2026 to May 2029

1.2 Business location and address

Clare Tech computer designs will be located in Nairobi CBD area, Bazaar plaza, on the junction

of Moi Avenue and Biashara street

The address of the business will be:

Clare Tech computer designs

P.o Box 2_40200 Nairobi

Tel 0746116048

Email Clarekerubo@gmail.com

1
1.3 Form and type of ownership

The business will be a sole proprietorship kind of business since l will run the business by

myself. I will have a plan of widely expanding through the help of adverts on social media,

billboards and other marketing strategy

1.4 Products and services

The business will have the following services: logo designing, web designing, print designing

and others .The services will be of high quality since I will have computers with the best

workings .The products provided will be custom postcards,publications,Adverts,posters and

many more. The following will be the benefits of my services and products :they will be of high

quality,affordable price and compatible to customers

1.5 Justification of opportunity

Clare Tech computer designs seize a unique opportunity in the market by addressing the growing

demand for customized and professional postal materials. There are several social and economic

developments in the area that have readily expressed a need for this business. Claretha computer

designs will be encouraged by some factors to grow and develop without any challenge i.e.

government policies are friendly to the business

2
1.6 Industry

The business will fall in a servicing industry which can also use digital platform that will enable

the promotion of our services. Since it's a sole proprietorship kind of business I believe that the

shop will create more income that exceeds up to more profits that will expand my business

1.7 Goal of the business

My goals will be to enhance technological integration and social media engagements to attract

more customer also to market the business to other regions in the country and to all companies

and institutions in the country

1.8 Entry and growth strategies

To start my business i will ensure i do market research to identify my competitors and what

changes i will make and how the community will like to be served. I will offer free products and

services strategy where applicable to ensure the customers are happy Music strategy will also be

adopted to attract people especially the youth to the business

3
 CHAPTER TWO

MARKETING PLANNING
2.1 Customers

The proposed business will be entirely targeting all class of people in the whole community.

This includes high class earners, middle class and low class.The business will approximately

have a thousand people taking our services per week.

2.2 Market share

The approximate population in this area is eight hundred thousand people. The business will take

almost 55%of the population where by Vera’s takes 21%, Cynthia's takes18%and John's takes

16% in the area depending on the services and products they provide

2.3 Competition

Vera’s graphic design is almost 2km away from ours

Cynthia's posters design is 1.5km away from ours and

John's web development is 1km away from ours .The size of my competitors are small compared

to theirs. Their assets are approximately ksh1000 sales are low because of the less quality of

products and services .The volume of their businesses are small compared to mine

Competitors strengths weakness Distance

Vera’s graphic design Has been in the field Low profits due to its 2km away from my

for a long time nature proposed business

Cynthia’s poster Good location and Personnel are not 1.5km away from my

design well marketed competent proposed business

4
 John’s web Well marketed Location not well 1km away from my

development diversified activities planned proposed business

Clare Tech computer Will be well

designs advertised and have

good communication

skills

2.4 Method of promotion and advertising

The business being new in the market there is a need of applying much advertising strategies as

well as promoting the name of the business to be famous in the market. The business will use

print media, electronic media and media advertisements to advertise our services. The business

will put aside ksh.20,000 for advertisement that will complete familiarization of our business

2.5 Pricing strategy

We will use the following factors to calculate in setting the selling prices of our services :taxation

policies ,market demand, competition and cost of service.

The business will take cash purchase or using cards There will be a 3%discount of original price

cost

5
2.7 Sales strategy

We Will employ the transporting sell service and customer self-service. We will be intending to

use agents we will recruit them perfectly if they really qualify and have agent experience.

Actually, the agent will be covering a wide area for proper success of the business

2.7 Distribution strategy

Clare Tech computer designs will facilitate transportation of the products taking to where the

customers will access easily. The mode of transport that is reliable around the business is "bode

bode" at a times

1%
1%

clare
46% verah
cynthia
52%
john

Taxi will also be used.The road transport will cost ksh.40,000 per month Their will be

deterioration of paper based materials in case of harsh weather conditions like rain

6
 CHAPTER 3

3.1ORGANIZATION STRUCTURE

Flow chart of organization

Manager

Accountant

Supervisor
Computer designs Cashier

7
3.2 Managers and qualifications

I will be the manager in the proposed business

I will fund the business and be a general leader

Qualifications of a manager

1 Diploma or a degree in business management

2 Has three years’ experience

8
Responsibilities of a manager

1Approving decisions proposed by other members

2Ensuring quality service is rendered to all customers as well as staff

3 Resolving problems in the business

3.3 Personal number and duties

Name Qualification Duties/ Proposed salary

responsibilities

Accountant KCSE certificate Organizing financial 30,000

with c+ and above plan in the business

Certificate of good plan

conduct Generating and

Proficiency in carrying out monthly

computer programs financial report of

business

Keep and managing

account of the

business

Cashier Kcse certificate Organizing and 12,000

Certificate of good paying bills and rent

9
 conduct of the business

Proficiency in Sales record and sales

computer programs managing

Keeping records of

each transaction made

in business

Computer design Diploma in ict Website designing of 25,000

Good communication upon a request by the

skills customer

Certificate of good Graphic design in

conduct regard to customer

preferences

Supervisor Diploma in business Controlling daily 20,000

management operation in business

3 years of experience Supervised operation

of the business

10
3.4 Recruitment, Training and Promotion

Clare Tech computer designs will recruit the staff and the personnel of the business through the

following methods:the job will be advertised in newspapers, the selection of candidates will then

take place after applications duration is over, the shortlisted candidates will be called for

interviews succeeding Candidates in the interviews will be appointed in the business. After an

appointment letter has been issued the business will organize for training for the appointed

candidates. Clare Tech computer designs will consider the following methods in order to make

the staff be competent and be able to handle issues in the real practical scenarios; workshops,

coaching, seminars. Clare Tech computer designs will carry out promotions in all other

departments of the business

3.5 Renumeration and incentives

All the staff will be under a permanent basis and will therefore be paid by means of monthly

salary. The business manager will ensure that employees are awarded according to their

qualifications and other allowances

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Renumeration table

Job category NUMBER OF MONTALY OTHER TOTAL KSH

STAFF PAY RATE BENEFITS

MAGAGER 1 50,000 15,000 65,000

SUPERVISOR 2 20,000 9,000 29,000

ACCOUNTANT 1 28,000 11,000 39, OOO

CASHIER 2 12,000 8000 20,000

SECURITY 2 16,000 1,000 17, OOO

COMPUTER 1 25,000 10,000 35,000

DESIGN

12
3.6 Licenses, permit and by law

For the business to start operating it must be registered and acquire licenses and permits from the

respective departments of the government. The business will also have insurance cover that will

compensate the business in case of hazard destructions leading to losses

3.7 Support services

The business will require support services like advisors and services like banking and provide the

best possible products and services to our customers

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 CHAPTER 4

DESCRIPTION PLAN
4.1PRODUCT OR SERVICE DESIGN AND DEVELOPMENT

The business will meet with the client to understand their specific needs target audience, and

desired message for the designing. Through the following I will intend to develop my proposed

products or services by sourcing, selecting, pricing and service department. By inventory

purchases, staff training and technology equipment will be costly I will incur in designing and

developing my service. Service technology will be the kind of technology i will use in offering

my service. The business management will strive to select the best available technology for our

needs considering factors like cost, functionalities and reliability, continuous monitoring and

training development will be the plans to cope with changes in technology and their effect on

service

4.2 PRODUCTION OR OPERATIONS FACILITIES AND CAPACITIES

The following are the measures required to be adopted in the business to ensure efficient

supervision, minimum cost and maximum output as per objectives of this particular business,

accounting for each and every material used in the business and ensuring that the final product of

that raw material will bring in the maximum profit required, delegation of duties will be taken as

an important aspect in the business to ensure every procedure has the maximum support required

to maximize output in the business as well as minimizing the cost

14
Table of machinery cost

Equipment source Cost ksh

Display shelves and Local furniture shops 100000

counters

Computers/laptops Electron stores 150000

Point of sales system Payment service 30000

provider

CCTV security Security companies 50000

systems

The management will have regular maintenance of computers,cctv system to check for proper

operations .The work shop will be designed in such manner that communication and flow of

information will be enhanced . The work shop will have two rooms in which the first room will

have three work stations and the other have two work stations. The first work station in the first

room will accommodate any of two designers but will strictly cater for graphic designing

activities. Work station two will be taken by the web designer which will be responsible for all

activities that include web designing, web development and web creation. The third workstation

will be taken by the operating manager of the business who will be incorporating all activities in

the business. The other room will take two work station not as big as room one the fourth work

station will be answerable for the accountant and accounting is the major activity will be taking

place here.The fifth work station is which the cashier in the company which will be responsible

15
for pays and bills clearance. The business will focus on future expansion plans on online sales

platform and also will have motorbikes and Nissan for delivery since will offer online orders

4.3 PRODUCTION OR SERVICE STRATEGY

The business will have the following list of monthly material requirements

Table for monthly material requirements

Type of material Frequency source Quantity Cost per Total cost

required unit ksh.

Printing papers Monthly Copier force ltd 13 1000 13,000

Laminating Monthly Copier force ltd 4 5000 20,000

porches

Paper cutter Weekly Conrad Kenya 2 4000 8000

service

Scanner Monthly Conrad Kenya 2 7000 14000

service

DVDs /CDs Weakly Conrad Kenya 2 300 600

envelops service

The transport of the material will be personal transport local delivery from wholesalers. I will

have 1-5 direct workers and 1-4 indirect workers. The workers will have products knowledge

and skills depending on services offering. The estimated labor cost will be 15000 to 40000 per

month depending on number of employees. The initial cost of the stock will be 40000-50000

with license permit of 4000-10000

16
4.4 PRODUCTION PROCESS

The business will have the following exact production steps sourcing and procurement, stock

inspection and storage, display and marketing, customer sales and transactions with after sales

service. The following will be the external and internal factors likely to affect production

process. External will be like :market competition, supplier delays and economic factors while

internal will not be there since i will have the best team to work with. The business will have the

following plans to minimize the impact of external on one source we will work with multiple

suppliers to avoid depending on one source. We will also have to adjust pricing strategy based on

market trends

4.5 REGULATION AFFECTING OPERATIONS

The business will have the following permit and license depending from whom and what cost.

Table

License/permit required Source cost

Business permit County government 18000

Tax compliance certificate KRA 1000

Fire safety certificate County fire department 5000

The business will also comply on local taxes customer protection laws and employment

regulations.

17
 CHAPTER FIVE
5.0FINANCIAL PLAN
5.1 PRE OPERATIONAL COSTS
Before the proposed business enterprise starts its operation, advance preparation will be taken

into acquiring of the facilities that will be necessary for the business to start its operation. The

business will have the following incur for the commence.

Items Amount

License 1500

Permits 1000

Deposit for water 500

Raw material 50000

Equipment’s 60000

Machineries 83300

Insurance 1000

Advertisement 1200

Telephone supply 1500

Total 200000

18
5.2WORKING CAPITAL
The proposed business will have different between the current assets and current liability of a

firm on a given data below.

Current KSH

assets

Cash at hand 90000

Cash at bank 50000

Debtors 500

Stock 35000

Total 500000

Current liability 200000

Creditor 20000

Bank loan 200000

Total 420000

19
5.3PREPARATION OF CASH FLOW PROJECTION
The proposed business will have the projection below

Cash Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

inflow

Receipt 8000 9000 7000 6000 8000 9000 7000 8000 1000 4500 7000 8000

0 0 0 0 0 0 0 0 00 0 0 0

Loan 0 1500 2100 0 0 4000 0 2000 1500 0 0 0

receive 0 0

Total 8000 9150 9100 6000 8000 9400 7000 8000 1150 4500 7000 8000

cash in 0 0 0 0 0 0 0 0 00 0 0 0

flow

Cash 4000 5000 7000 9000 8000 8790 8000 8900 7000 6000 6000 6000

out of 0 0 0 0 0 0 0 0 0 0 0 0

flow

Payme 0 1500 2100 0 0 4000 0 2000 1500 0 0 0

nt to 0 0

credito

rs

Purcha 1500 2000 2200 2500 2600 2800 3200 3500 3800 4000 4200 4000

se 0 0 0 0 0 0 0 0 0 0 0 0

20
(cash)

Wages 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000

and 0 0 0 0 0 0 0 0 0 0 0 0

salaries

Transp 500 400 500 500 550 400 600 500 560 450 500 400

ort

Electri 400 464 680 500 400 500 400 600 400 500 460 500

city

Loans 0 1500 2100 0 0 4000 0 2000 1500 0 0 0

repaym 0

ents

Total 1500 1460 1730 1300 1260 1460 1430 1280 1690 1380 1650 1420

cash 00 00 00 00 00 00 00 00 00 00 00 00

outflo

Net 9000 1000 8700 9900 7900 9200 8100 8900 8900 8700 7800 9700

cash 0 0 0 0 0 0 0 0 0 0 0 0

brough

forwar

5.4 PREPARATION OF PROFORMA INCOME STATEMENTS AND BALANCE SHEET

5.4.1 PROJECTED INCOME STATEMENT

21
Using the table below will show how the projected income of my statement will be

Sales Year 1 Year 2 Year 3

Phones 200000 250000 200000

Repairs services 250000 220000 110000

Gross profit 260000 270000 30000

Selling and 710000 740000 60000

distribution

General 20000 40000 90000

administration

Salary and wages 300000 500000 250000

Telephone 150000 20000 50000

Water 40000 50000 50000

Electricity 60000 50000 60000

Stationary 10000 70000 80000

Interest on loan 20000 15000 20000

Maintenance 250000 35000 400000

Trading profit and 300000 450000 500000

lose

Less taxation 30000 50000 70000

Net profit after 270000 400000 430000

taxation

5.4.2 PRO FORMA BALANCE SHEEET

ASSTS AMOUNT

22
FIXED ASSETS

Loan 80000

Building 90000

Furniture 30000

Machinery 50000

Total 223000

Current assets Amount

Raw materials 90000

Work in progress 100000

Finished goods 9000

Debtors 5000

Cash in bank 20000

Cash in hand 1000000

Total 234000

Liabilities Amount

Capital liabilities

Share capital 200000

Profit and loss 50000

23
 Bank loan 150000

Total capital 400000

5.5CALCULATION OF BREAK EVEN POINT

The following will be the level of sales that would cover the expenses

5.5.1 CONTRIBUTION MARGIN

Sales-total variable cost

710000-500000= 160000 year 1

740000-500000=190000 year 2

5.5.2CONTRIBUTION MARGIN%
YEAR 1 p.m. *100

160000*100

710000 =23%

Year 2

190000*100

740000 =26%

5.3DETERMINE THE TOTAL FIXED COST

Expense = 500000

5.5.4BREAK EVEN LEVEL OF SALE IN SSIT

Fixed cost = 500000

p.m. in percentage 23 = 52888

24
5.5.5BREAKEVEN POINT TO UNITS
Fix cost / p.m.

500000/160000 =3.125

5.5.6BREAK EVEN POINT IN SALES

= fix cost/p.m. per unit * sales price per unit

710000-160000

=550000

5.6CALCULATION OF PROFITABILITY RATIOS

5.6.1GROSS PROFIT MARGIN
=gross profit * 100

160000*100

710000 =23%

5.6.2RETURNS ON EQUITY
Net profit*100

Owners ‘equity

430000*100

710000 =60.6%

5.6.3NET PROFIT MARGIN

Net profit *100

710000 =56%

5.6.4RETURNS ON ASSETS
Net profit *100

25
Total assets

270000*100

500000 =54%

400000*100

500000 =80%

5.6.5CURRENT RATIO
=current assets

=current liabilities

400000

=400000

5.7 DESIRED FINANCING

Item description Year 1 Year 2 Year 3

Pre operation cost 300000 310000 300000

Working capital 1000000 1000000 1000000

Fixed assets 950000 950000 950000

Total 4950000 5050000 4950000

26
5.8PROPOSED CAPTALIZATION
ITEM DESCRIPTION AMOUNT

Owners contribution 500000

Bank loan 20000

Loan from friends and relatives 10000

Total 700000

27