STARLING CEMENT STORE

EMAIL: chepkemglado21@gmail.com

PHONE 0726543986

PRESENTED BY: GLADYS CHEPKEMOI

INDEX NO: 3011010168

CENTER NAME: MACHAKOS UNIVERSITY COLLEGE

COURSE NAME: DIPLOMA IN CIVIL ENGINEERING

COURSE CODE: 2707

UNIT CODE: 306

SUPERVISED BY: MUNYUA MN

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN

FULFILMENT OF THE AWARD OF DPLOMA IN CIVIL

ENGINEERING

SERIES: JULY SERIES

 DECLARATION
I declare that this business plan is my original copy and has not submitted to any other
examination body for the award of diploma in civil engineering.

Name: GLADYS CHEPKEMOI

Sign: …..gladys……

Date: 30/6/2025

This business plan project has been submitted for examination with my approval as college
supervisor.

Supervisor:

Sign ………………..

Date 30/05/2025

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 ACKNOWLEDGEMENT
I would like to sincerely thank God for the far he has brought me and seen me through my 3year
course in the institution. I acknowledge with thanks my course supervisor for her guidance and
support she accorded me throughout and until completion of this business plan.

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 DEDICATION
I dedicate this business plan to my beloved parents who helped me financially, my siblings for
their encouragement and friends who helped me to complete this business plan project.

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 TABLE OF CONTENTS
DECLARATION..............................................................................................................................i

ACKNOWLEDGEMENT...............................................................................................................ii

DEDICATION...............................................................................................................................iii

ABBREVIATION........................................................................................................................viii

EXECUTIVE SUMMARY............................................................................................................ix

CHAPTER ONE..............................................................................................................................1

1.1 BACKGROUND OF THE OWNER.....................................................................................1

1.2 NATURE OF THE BUSINESS............................................................................................1

1.3 PRODUCTS AND SERVICES.............................................................................................3

1.4 ENTRY STRATEGY............................................................................................................4

1.5 GROWTH AND STRATEGY..............................................................................................4

CHAPTER TWO.............................................................................................................................6

2.1 MARKET PLAN...................................................................................................................6

2.2 POTENTIAL CUSTOMERS/CLIENTS...............................................................................6

2.2.1 DOMESTIC CUSTOMERS...........................................................................................6

2.2.2 COMMERCIAL CUSTOMERS....................................................................................6

2.3 COMPETITION....................................................................................................................7

2.3.1 METHOD OF COPING UP WITH THE COMPETITORS..........................................8

2.4 PRICING STRATEGY.........................................................................................................8

2.5 SALES TACTICS.................................................................................................................8

2.6 ADVERTISING AND PROMOTION STATERGY............................................................9

2.6.1 METHOD OF BUSINESS PROMOTION....................................................................9

2.6.2 METHOD OF ADVERTISEMENT.............................................................................10

2.7 DISTRIBUTION STRATEGY...........................................................................................10

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CHAPTER THREE.......................................................................................................................12

3.1 ORGANIZATION PLAN...................................................................................................12

3.2 ORGANIZATION STRUCTURE.......................................................................................12

3.3 KEY MANAGEMENT PERSONNEL...............................................................................13

3.4 OTHER PERSONNEL........................................................................................................16

3.5 SUPPORTING ADVISERS AND SERVICES...................................................................17

CHAPTER FOUR.........................................................................................................................19

4.1 OPERATIONAL AND PRODUCTION PLAN.................................................................19

4.2 PRODUCT/SERVICE DESIGN DEVELOPMENT...........................................................19

4.3 PRODUCTION AND OPERATION FACILITIES............................................................20

4.4 PRODUCTION SRATEGY................................................................................................21

4.5 PRODUCTION /OPERATIONAL PROCESSES..............................................................22

4.6 PRODUCTION PROCESS CHAT.....................................................................................23

4.7 FACTORS THAT AFFECT THE OPERATION PROCESS’............................................23

4.8 GOVERNMENT REGULATION AFFECTING PRODUCTION SAFETY.....................24

4.8.1 SAFETY REGULATION............................................................................................24

4.8.2 INTERNAL AND EXTERNAL FACTORS LIKELY TO AFFECT BUSINESS......25

CHAPTER FIVE...........................................................................................................................26

5.1 FINANCIAL PLAN............................................................................................................26

5.2 INTRODUCTION...............................................................................................................26

5.3 PRE-OPERATIONAL STAGE...........................................................................................26

5.4 PRE- OPERATIONAL COST............................................................................................26

5.5 WORKING CAPITAL REQUIREMENTS........................................................................27

5.6 PRO-FORMA INCOME STATEMENT............................................................................27

5.7 PRO-FORMA BALANCE SHEET.....................................................................................28

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5.8 PROJECTED CASH FLOW FOR THE YEAR 2025.........................................................29

5.9 BREAK EVENT LAVEL....................................................................................................30

5.10 DESIRED FINANCING...................................................................................................31

5.11 Proposed capitalization......................................................................................................32

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 LIST OF FIGURES
Figure 1Business Location..............................................................................................................2
Figure 2 Organizational Structure.................................................................................................12
Figure 3 Production Design...........................................................................................................19
Figure 4 Production Strategy.........................................................................................................21
Figure 5 Production Process Chat..................................................................................................23

LIST OF TABLES
Table 1 Production and Operation Facilities.................................................................................20
Table 2 Materials and Cost............................................................................................................22
Table 3 Pre-Operational Stage.......................................................................................................26
Table 4 Pre- Operational Cost.......................................................................................................26
Table 5 Working Capital Requirements........................................................................................27
Table 6 Pro-Forma Income Statement as at 30th...........................................................................27
Table 7 Balance sheet as at 30th December 2025.........................................................................28
Table 8 Projected Cash Flow for The Year 2025..........................................................................29
Table 9 Break even analysis..........................................................................................................31
Table 10 Desired Financing...........................................................................................................31

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 ABBREVIATION
Ksh Kenyan shillings

viii
 EXECUTIVE SUMMARY
CHAPTER ONE

The proposed business owner is Gladys Chepkemoi aged 24 is currently studying at Machakos
University College pursuing diploma in civil engineering. She is intending to start a business
after completing school on 10/12/205. The business requires Ksh. 2000000 to start its operation.
The money will be used to pay rent, insurances, wages transport electricity and miscellaneous
operation incurred. The operation of the money will be from personal savings, friends, relative’s
contributions and events lending from institution e.g., bank. The business intends to deal with all
types of cement products. The proposed business owner will be operating under two main
production processes receiving from wholesalers and issuing goods to customers.

License is required to start up and run its operation.

CHAPTER TWO

This will be having categories of customers like individuals, companies and residents of Maraba
at large. In order to retain and attract customers the business establishes a well laid strategy of
pricing as far the process is concerned. The proposed business owner intent to face stiff
competition from Liza and Evans but due to research made she come up with a lot of strategies
to but in place for betterment of business operation.

CHAPTER THREE

The business has a well establish staffs. The management itself will promote and motivate
workers and encourage them to work hard so as to achieve objective of the organization. The
business itself will have supportive advisers and services e.g., telephone

CHAPTER FOUR

Operation is needed for production to go high. Machines will be needed for transportation of
goods and services. The proposed business owner developed steps that will be involved in
production process and production layout strategy that will show how cement store is arranged.
Government regulations will be able to able to govern the security of the staff.

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CHAPTER FIVE

Financial plan will have efficient arrangement to finance in order to discourage the outflow of
funds.

Financial plan will act as motivating tool in the business; it will govern all requirements that are
required before the start of the business i.e. License and all the requirements while business in
running up. All the statements of the business will be recorded thus balance sheet will be able to
show financial stability of the business.

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 CHAPTER ONE
1.1 BACKGROUND OF THE OWNER
The proposed business manager is Gladys Chepkemoi aged 24 years old. She was born in Nandi
County, Tinderet District, Meteitei Location. She is the last born of Mr. and Mrs. Langat. She is
single.

The proposed business owner is currently studying at Machakos University where she is
pursuing diploma in Civil Engineering. The propose business owner stated school in the year
2007 at Kamelil primary school and acquire certificate in the year 2016. She proceeded to Sigoti
Complex 2017 for secondary school and acquire secondary certificate. On the year 2021 she
proceeded to Machakos University for diploma in Civil Engineering up to now.

The proposed business owner was able to run home business that deal with sales of construction
products. And also, the proposed business owner has worked in industry which was supplying
construction materials at Kisumu for 5 months and acquire skill on how to handle customers.
She is also planning to start selling and distributing cement product.

The capital for the start of business will be 600000. The amount will be obtained from:
Personal income –Ksh 300000
Friend’s contribution-Ksh 100000
Bank loan - ksh 200000

1.2 NATURE OF THE BUSINESS

The proposed business owner will be operating under the owner’s name. The business owners
name is easy to be remembered by customers due to its brief pronunciation. Business intended to
start to from 10/12/2025 after the proposed business owner has completed her course and
acquire skill for her business.

The proposed business will be located near Maraba Center, Nandi County. The location choose
is very suitable since it is business growing center due to the present of many people
constructing rental houses, schools and many people in the area constructing permanent house.

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Figure 1Business Location
The business will be sole proprietorship business. The proposed business owner chosen to use
this form because it is easy to start and run.
This type of business requires little capital to start and manage. The proposed business owner
will be enjoying profit of the business alone. The sole proprietor can only acquire money from
friends, family and bank for the start of the business.

Major activity for the business will be selling and distributing cement to the customers. The
business is intent to deal with all type of product. The business owner will be operating under
two main productions, its process of receiving goods from wholesalers and issuing of goods and
services.

The proposed business owner will be having categories of customers like individual, schools and
residents of Maraba at large. This location chosen can be reached by both air and road as the
means of transport and is reached after travelling 20km from Kobere.

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1.3 PRODUCTS AND SERVICES
The cement shop will be providing people with cement and cement product of high quality,
there will be different type of cement in the store i.e., white cement, ordinary cement, rapid
hardening cement and sulphate resistant cement. It will be upon the customer to choose type of
cement he/she wants. White cement will be more expensive since since is used for decoration.

There will be transparent glass on the wall for easy look of customers during fitting. Very good
discount will be offered to those customers who buy more than fifty bags of cement. And there
will be free sample given to shoppers. I feel that there is opportunity in his area for the business
due to the following factors.

Population increases in the area leading to high demand

Modern drainage influence as the place is near and central to the targeted people

The business will get to employ the people from the community because it is a sales person
delivering of product thus employ people to run the business

The business will be reliable and open all time save on time of customers between 7.00am-
8.00pm from Sunday to Friday. I will be closed on Saturday. Cement product will be unique so
as to attract customers and client

The space of the business will be bigger enough to allow display of the product, and the
temperature will be provided adequately to avoid damage of the cement. The proposed business
owner will give much information on how to store the cement and how to maintain product
especially during rainy season.

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1.4 ENTRY STRATEGY
The requirement to start up a business are; licenses and other requirement that may be required
by the community area for the business.

The proposed business owner researched on the strong competitive advantage that enable to
have more customers, some of competitive advantage is delivery service offered to customers
using vehicles owned personally and offering discount

The proposed business owner research on various weakness of competition established business.
Challenges facing the industry come up with inadequate capital to keep the business running,
requirements to set up business licenses is a long process thus one might lose the morel and exit.

On taking advantage for example supplying goods to customers its givers opportunity to have
many customers and retain them. Bank loans will increase thus increase bank borrowing which
help to expand business. Business owner have to offer discount and deliver goods to customers
in order to maintain them.

Vehicles for delivery should be there and be quick as possible and offer free delivery to
encourage and bring many customers.

1.5 GROWTH AND STRATEGY

Entry

The business will entirely put and develop the latest modern and ensuring that clients are
attracted to the business and they get good and quality service. Qualified staff of employees at
the business center will lead to sales of free samples being allowed and offering of discounted
price on our items will be a good strategy put in place in our business.

The proposed business owner will have to ensure number of bags required by customers are put
into consideration. Delivery to be delived on specific day and time. This will help the business
owner know which quality of cement to be added in the store.

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There are various opportunity that rise from the trend of enquires. The opportunity include
stocking up more product that is mostly sell to customers. Getting more information from the
clients about how activity should be done. This will open minds on better way necessarily.

Exit

Challenges facing the industry are coming up with adequate capital to keep the business

Running. Capital is very crucial in business if there is no extra money to keep the business
running the business might fall. Break down of vehicles need money in case of any injury
happens to our workers money have to e used.

Competition from other existing business makes its difficult to start up business, requirements to
set up business,

Acquiring licenses is a long process since you have to apply then wait for some time. You also
need to seek for consultancies to assist on this process thus one might lose morale and exit

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 CHAPTER TWO
2.1 MARKET PLAN
Proposed business owner aim and targets most strong and potential customers of the surrounding

Area and some from outside who may have a visit to the area. In the sales side service to
customers

Will be offered in consideration of the customers need and a convincing degree of satisfaction
will

Be reached.

2.2 POTENTIAL CUSTOMERS/CLIENTS

The proposed business owner aim and target most strong and potential customers of the
surrounding area who may have a visit to the area.

In the sales side services, the customers will be offered in consideration of customers need and a
convincing degree satisfactory will be reached.

The business will sale product to different age group I.e.

2.2.1 DOMESTIC CUSTOMERS

Domestic customers refer to people who to center to purchase product and item for their own use
and for family consumption. These are people who can be at the position of affording the prices
of various item being offered by our business. Domestic people involve sellers of the
surrounding who may include both male and female and the people of all ages considering
middle and lower classes.

2.2.2 COMMERCIAL CUSTOMERS

Commercial customers refer to people who buy items and goods for sales at a wholesale price.
The proposed business owner will offer change to all customers who will purchase goods in
large amount for sales at their local destination. The most regular customers will be offered

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transport facilities also I will serve institution customers who include purchase from learning
institution like polytechnics, schools and organization groups.

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The approximate number of customers 30-50 depending on specific day and date of the month in
this approximate number others will want to know the price and not purchasing it.

Those who will purchase this service will be approximately 30-40 daily.

The business owner will have a level of income obtain from business after encountering
expenses and losses. Approximately income earn per day will be 10000 obtain as profit after
encountering all loses and expenses used in that day.

Education attainment of the business manager is Diploma in civil engineering and the main
occupation is selling and distributing cement.

2.3 COMPETITION
The business has a stiff competition from Liza and Evans and their scabby analysis i.e., strength,
Weakness, opportunity and threats. It’s clear that enterprises will not have a huge market share.

According to the latest research carried it shows that Liza and Evans businesses has independent
Growth and weaknesses

COMPETITOR STRENGTH WEAKNESS OPPORTUNITY THREAT

LIZA Located in the It has relatively Food location Low customers

HARDWARE market center small work force turn up due to
near the road not skilled for Employ skilled unavailability of
customers personnel some products
perfect need

EVANS Qualified Has limited Stocking enough The business not

CEMENT personnel stock product and they growing due to
SHOP offer quality high prices
services

GLADYS
CEMENT
STORE

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2.3.1 METHOD OF COPING UP WITH THE COMPETITORS
The proposed business owner is expected to face a very stiff competition and very challenging
from its surrounding trading partners. After carrying out through extension research finally the
business owner come up with a lot of strategies that will put in place for the betterment of Its
business operations.

A) The proposed business owner intends to penetrate extensively and take route to the
interior Locality by taking in the market through its establishment.

B) The proposed business owner intends to employ a qualified staff which is skilled and
experienced in business related area so as to ensure a wide range of good customer’s
service.

C) Aiming at putting into use of the modern method of technology in business for easy
services

Like the use of computers in point of sales terminals including the use of terminal
cards

2.4 PRICING STRATEGY

In the case of prices of goods will be largely depend on the time of the year or seasonal like in
the month of December price of goods are likely to rise and shoot rapidly since most people are
home for holydays.

The proposed business owner will have increased the number of employees since the level of
Demand from customers is very high and also distribution of goods will be high.

Discount will be offered for the most regular customers and heavy shoppers thus the reduction in
price will be made to them.

2.5 SALES TACTICS

On the other hand, the business experts to offer discount to customers who buy goods regularly

And depending on their amount they buy.

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Sales will be done directly from the shop and other orders will be done online. To ensure
successful Sales strategy. Business owner will ensure effective hiring process i.e., structural
interview role playing Scenarios and skill assessment.

When selecting distributors, local market knowledge should be equipped for sellers. This will be
identified by the business manager during interview.

He/she should be able to understand the local behavior competition and strategy.

2.6 ADVERTISING AND PROMOTION STATERGY

The proposed business owner will have to involve itself with method of ensuring business Is
known out in large scale.

2.6.1 METHOD OF BUSINESS PROMOTION

To promote means to advertise by making certain product or item well know and be liked most
in the market and this is done to bring the already existing customers who are potential from the
State of friends and relatives’ awareness to point of adopting them that ones the business does
not Know the relationship between the seller and the buyer.

Method of business promotion are:

a) GOOD PUBLIC RELATION

Proposed business owner currently will ensure that customers are handle and served without

Harassment.

b) USE FREE SAMPLES

Gift will be given to those customers who will buy some special goods like flying water closet

Worth 10000 will be added a drainage pipe worth 2000 on top

c) DISCOUNT

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For the most regular customers and the heavy shoppers a reduction in price will be made.

2.6.2 METHOD OF ADVERTISEMENT

The proposed business owner will have to involve itself with the method of ensuring the
Business is known out in large scale. The business hopes to put into use both points and Scale.

The business hope to put into use both points and electronic in reaching its customers.

The methods:

a) DISPLAY

The business goods and services will well-arranged and displayed in an open and see

Through the window making it easier for customers to have a look at the product and

Their prices to avoid strain in choosing their best.

b) USE OF POSTERS

Posters will be mainly used to inform the prospective customers around this center about

The goods and services the business will be having and some offers of relatively cheap
prices

From some time during sales

c) THE RADIO AND TELEVISION

The proposed business owner will make its advertisement, the use of radio and television
by

Broadcasting and making announcement promotion to make people aware of the business

Existence and the varieties they offer including the site and the location of the business.

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2.7 DISTRIBUTION STRATEGY
The business intends to use the following method so as to ensure it has achieved scale of goods
and services.

Discount

The business will allow discount by allowing reduction in prices so as to retain existing
customers

And attract new customer.

Psychological pricing

It involves the unique pricing so as to attract more buyers and making regular customers

Advertisement

Through advertisement customers will be aware about the goods that the business will

Be having.

This will not cost much since discount has to be done but at the end of the day profit has

To be made. What will cost is advertisement but cost will be 3000 per month.

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 CHAPTER THREE
3.1 ORGANIZATION PLAN
Proposed business owner being establish for the first time a few of the main employees
Will be employed. As time goes by the business will be stable and it will be able to increase
The staff and it will expand on the future so that the large number of employees will serve
And cater for increasing volume to services being spelled and offered to the customers.

3.2 ORGANIZATION STRUCTURE

MANAGER

ASSISTANT MANAGER

SECRETARY

Accountant Driver Salesman

Store

Figure 2 Organizational Structure

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3.3 KEY MANAGEMENT PERSONNEL

BUSINESS MANAGER

The responsible head of business in the management area will be appointed on the merit of

His/her academic qualification and the manager having him/her in any business for more than six
months, will give out a good experience in business.

QUALIFICATION AND EXPERIENCE

The manager of the business will be required to attain a degree in the field of business
administration. In this case any qualification higher than a degree either masters will be

Added advantage. The manager is also required to have experience of not less than two years in
business industry.

DUTIES AND RESPONSIBILITIES OF A MANAGER

 To organize, coordinate and control all business activities

 To monitor all daily activities of the business.
 Determine the salary and incentive scheme for the business.
 Responsible for keeping all books of accounts.
 To establish the aim of the business.

ASSISTANT MANAGER

Duties

To formulate the duties and ensure that there is proper attention of staff role of various

Departments.

In charge of the driver’s accountant, the supervisor, the store man and sales staff.

Qualification Skills and Experience

Require to have a minimum level of Diploma in business management and business

administration and the level above Diploma will be added advantage.

He/she must have worked in the business industry for not less than three years.

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ACCOUNTANT

Duties

To help in the preparation of the profit and loss account and balance sheet.

To prepare cashbook and ledgers and update them

To present both annual and monthly financial report for the business

Qualification Skill and Experience

The accountant must be qualified with CPA from a recognized institution and having attain a
Bachelor in commerce.

Must be conversant with computerized accounting and working experience show be more than
Two years.

SECRETARY

Duties

Typing letter, internal memos and other report

Writing business minutes

To receive letters, documents for the business and welcome visitors

Qualification Skills and Experience

The secretary should have a minimum level of diploma in secretarial studies willing and perfect
to work Using computers

Experience should be more than one year.

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DRIVER

Duties

To report any failure in vehicle to the assistant manager

To drive to the disregard place as assigned

To maintain the vehicle that will be assigned to him/her

Ensure that the engines are in good condition before vehicle move out for trips

Qualification Skill and Experience

Should have a valid driving license

Should be aged between 25-45 years

Driving experience for more than two years

Should be a Kenyan citizen

SALES MAN

Duties

Keep the items records

Assist in the placement procedure of items and products making of order on the items that are
out of stock.

Customer relationship management, he/she identify and approach potential customers’

contractor. Also build and maintain good relationship with new customers

He/she plays a role in order management and coordination by taking and processing orders
efficiently and ensuring timely delivery to customers.

Assist in coordinating with logistics and supply chain department to manage product delivery
and stock levels

Assist in following up with customers to ensure timely payment collection and managing
customers credit limit and reduce outstanding dues.

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Qualification Skill and Experience

Should have at least certificate in store management

Should worked in the same or related field for not less than one and half years

Should excellently verbal and written communication.

3.4 OTHER PERSONNEL

CLEANER

Duties

Trimming and weeding up flowers, ground and general cleaning of compound of business houses

Cleaning he flowers wall and window for the business premises

Qualification Skills and Experience

Should have attained a certificate of Kenya Primary Education

Should be 18 years and above

The staff will be earning a monthly basic salary that will depend on their position in the business.
As shown below.

POSITION NUMBE BASIC HOUSE MEDICAL TOTA YEARL

R SALAR ALLOWANC ALLOWANC L Y
Y E E
MANAGER 1 16000 3000 1000 20000 240000
ASSISTANT 1 10500 3000 1000 14500 174000
MANAGER
SECRETARY 1 8000 2500 1000 11500 138000
ACCOUNTAN 2 9500 2500 1000 13000 156000
T
DRIVER 3 7500 1000 1000 9500 114000
STORE 3 7500 1000 1000 9500 114000
KEEPER
SALESMAN 3 7500 1000 1000 9000 108000
CLEANER 2 6000 1000 1000 8000 96000
TOTAL 16 72500 15000 8000 95000 1140000

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On the side of empty vacancies will be placed in the media through any person willing to occupy
the fast will be free to apply. Therefore, the blank fixed and the one who will emerge successive
will be employed and fill respective post.

For efficiency and quality customers services some training will be done to every employee so as
to make them conversant with their duties.

In this case the employee is likely to be promoted according to their hard work in term of
academic qualification level of production and general attitude their role in their daily lives. The
business will consider one’s individual performance and capability for one to get salary increase
and the business expand leading to opening of more branches.

3.5 SUPPORTING ADVISERS AND SERVICES

The supporting services include the key principle that will help support the business to run
smoothly

And support its success;

I. TELEPHONE-PAULINE CEMENT STORE - will operate by being connected to a line which

will be in the office as a contract for any required information. Telecom line will be given out to
the clients and should reached out also through the posters and other media forms of
advertisement as soon as the business will be operating.

The following are the contacts:

LANDLINE: 036476

MOBILE: 0746648030

II. POSTERS – The business will own a box number that will be purchased for the postal
cooperation of Kenya and through the posters all letters, bills, documents will be posted.

III. INSUARANCE- As a support service mainly entitled t cover the staff from risk in case of
nature and its risk. A personal cover will be required for compensation of PAULINE CEMEN

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STORES premises including products and goods its holds will be insures also against fire and
theft.

IV. LEGAL SERVICES –legal services involve issues of law and the matters concerning on the
note. The business will have its lawyers who will represent will represent the business in the
court matters.

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 CHAPTER FOUR
4.1 OPERATIONAL AND PRODUCTION PLAN
In this business section some important operation needs to be carried out for production level to
go high.

The machines that will be required to transport goods and product from manufacturing factory to
the Business store to fill the stock. Also, vans will be needed to take the manager to the seminars
and other official trips including taking the staff member to the training.

4.2 PRODUCT/SERVICE DESIGN DEVELOPMENT

The propose business owner like the other business aim to make higher profit whatever cost and
minimize as much as possible its operation cost. Customers will encourage to spend more
purchase of our product and goods. In section of machine care must be taken by engineers
serving them and secure safety running during work.

The cost of designing a product or service is doing research like conducting laboratory testing of
cement blends, designing the plant layout this is done by involving engineering expertise.

Technology to design product involved preheater to reduce the use of fuel. Automated control
system as a real monitoring system after sometimes.

In coping with technology changers Io T sensor will be use as a continuous monitoring of

process variable and equipment health. Also, digital twin will be use to optimizing plan
operation.

ENTRANCE RECEIVING
WATCHMAN ROOM

SELLING RECEIVING

ROOM CHECKING
AND

STORE
RETURNING
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Figure 3 Production Design
4.3 PRODUCTION AND OPERATION FACILITIES
This involves equipment and machinery that will help in supporting the storage, handling and
distribution of cement.

Features of workshop will include; equipment’s and maintenance

Safety equipment management, like and testing of safety gears of vehicles

Waste management and recycling; this is reworking or recycling damage packaging or waste
cement dust.

Below is the table showing the location, maintenance, repair, deprecation period and the
operations of equipment’s.

Table 1 Production and Operation Facilities

DEPRECCIATION
UNIT COST Ksh

CONDITION

SUPPLIER
NUMBER

REPAIR
ASSET

VEHICLES 2 24m Owned General 2weeks 21/2years

WASHING 1 20000 Owned Equipment 2months 3years
MACHINE
CLOTH 1 10000 Owned Equipment monthly 3years
BURNER
GAS 1 10000 Owned Equipment monthly 1year
BURNER
CLOTH 1 10000 Owned Equipment monthly 1 year
WASHING
MACHINE
TOTAL 7 125000
0

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There is space for future expansion for equipment since it is repaired and checked repaired and
after 2 weeks and 2months.

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4.4 PRODUCTION SRATEGY

SHELVERS SHELVES SHELVES

ENTRANCE TELLER 2 SHELVERS

FITTING
EXIT TELLER 1 STORE
ROOM

Figure 4 Production Strategy

The business will entirely target customers from up the country and those visitors from outside
province touring Maraba. Due aim of attaining many customers the business will required to
carry out a very informed and well structure advertisement of goods and services. Advertisement
booklet will be painted including the other and advertisement will be done over radio, television
through internet to business familiar to the people. plans that will the business is well known
include; road shows being guided by the sales person giving free sample and gift to people.

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The proposed cost of monthly required materials includes the following.

Table 2 Materials and Cost

ITEM COST Ksh

Water 8000
Food 3000
Electricity 4000
Salaries 11500
Maintenance 10000
Office equipment 8000
Telephone 4000
Marketing 5000
Overheads 150000
Total 172000

4.5 PRODUCTION /OPERATIONAL PROCESSES

It this section packages will be prepared locally and marketed by both local and broad means and
electronic media through the use of the internet in the advertisement. Shops will be built in a way
that the clients will have two exits and entrance to make the movement of the clients easier and
release congestion and cause meant Price tag will be possessed by the respective item depending
on their material and durability. Alongside the shelves the sales staff will be available to assist
customers in any service.

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4.6 PRODUCTION PROCESS CHAT
(Steps involved in production process)

ENTRANCE
RECEIVING ROOM
WATCHMAN

RECEIVING CHECK AND

SELLING ROOM
INSPECTION

STORE RETURNING ROOM

Figure 5 Production Process Chat

4.7 FACTORS THAT AFFECT THE OPERATION PROCESS’

When setting up and running a cement store several factors can influence operation such factors
include:

Inflation and fluctuating of cement prices.

This can be minimize building a relationship with multiple

Suppliers to negotiate better prices

Interest rates affecting loan and financing, this can be minimized by maintaining a flexible
pricing

Strategy.

Licensing requirements; some license issued by some people are does not meet the legal and
regulations required for a business thus before starting a business, business owner need to
consult with legal experts before setting up.

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Taxes and import duties will also affect the operation process of the cement store, for every
business tax needs to be paid. If tax is not paid cement enterprise will be closed up. Thus, this
can be minimized by ensuring that you regularly review and comply with government
regulations.

Weather condition impacting transportation and storage of cement: change in weather condition
affect operational process of cement i.e., rain falls while cement is transported and the vehicle is
open at the back where cement product is kept, the rain will affect cement quality and this
cement will neither be used for construction. This can be minimized by ensuring that there is
waterproof material carry on with incase rain falls also get proper insurance for natural.

4.8 GOVERNMENT REGULATION AFFECTING PRODUCTION SAFETY

4.8.1 SAFETY REGULATION
They include the measure and control that will be taken and the rules to be followed so as to
ensure the safety of the customers and the business staff. Security as an issue will be vital and it
will be given the first priority by the staff and the management. Necessary requirement will be
provided to them depending on their nature of work like in the case of the cleaner’s proper
protection, clothing, marks, gumboots and caps will be provided to maintain safety in their
working environment.

In case of fire outbreak, firefighting equipment will be available at the business premises. Alarm
will be installed in the compound to help in dealing with hard insecurity situation.

As a physical measure of insecurity, a very strong well build fence made of concrete blocks will
be put up and it will be under good care whereby the security personnel at the entrance charge.

In order to maintain high standard of hygiene the compound will be made clean always. All
employees will be responsible on the cleanness of the compound by not dumping any litter
around and proper waste disposal.

Instead, the litter bins will be provided to collect the rubbish, all the staff will be required to pass
the health examination before being employed and through checks will be conducted from after
every five months to ensure that individual are medically fit. Fresh water will be available
drinking and this will help customers quench their thirst.

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27
This is also anther requirement for the business legal order of operational business license will be
therefore obtained from the local county council offices that will be responsible for the issue of
the trading permit will be obtain and with valid stamps.

4.8.2 INTERNAL AND EXTERNAL FACTORS LIKELY TO AFFECT BUSINESS

Internal factors

Operational include high rate of import tax and the parts. The import duty is likely to affect the
growth of the business as heavy tax is being likely to affect the growth of business as heavy tax
is levied on other product from outside the country.

Other factor include: the involvement of some of the staff members as in plans of stealing the
stock and this cause heavy losses. Improper prices of goods and products loads to losses as a
minor factor.

External factor

They include issues that indirectly affect the business operation to staff with the acquiring the
license from the council be a problem since some exaggerate figure or they demand to the bribed
for them to offer license renewal service on the health sector, health official might be so much
demanding during the giving’s of reports on the medical concern of the staff. Insecurity is also
another issue in case of any destruction of property making the business stagnate and leading o
losses.

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 CHAPTER FIVE
5.1 FINANCIAL PLAN
5.2 INTRODUCTION
The business will have efficient arrangement to finance, to purchase assets, payment to lab and
purchase of material to be used in business. The business proposed will always discourage the
outflow of funds therefore financial plan regarded as tool of morning the inflows expenses

The business will be dealing with plastic, product of different colors and of quality goods

5.3 PRE-OPERATIONAL STAGE

Table 3 Pre-Operational Stage

ITEM COST PER YEAR

Licensing 1400
Transport 5000
Designing 8000
Electricity 10000
Total 37000

5.4 PRE- OPERATIONAL COST

Expenses that will be included before the start of the business as shown in the table below;

Table 4 Pre- Operational Cost

PARTICULAR AMOUNT PER YEAR

Labor salaries 800000
Tools and Equipment 300000
Insurance 8000
License permit 5000
Advertisement 6000
License permit 8000
Total 1127000

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5.5 WORKING CAPITAL REQUIREMENTS
This is the estimated capital required for the first year. As shown in the table below

Table 5 Working Capital Requirements

ITEM FIRST YEAR

Current Assets 500000
Purchase 800000
Cash at hand 600000
Cash at bank 600000
Debtors 200000
Total 2700000
5.6 PRO-FORMA INCOME STATEMENT
PRO-FORMA INCOME STATEMENT AS AT 30TH

Table 6 Pro-Forma Income Statement as at 30th

PARTICULARS 30TH 12/2025

Sales 238000
Purchase 500000
Gross profit 1900000
Expenses ---
Creditors 100000
Electricity 96000
Water 31900
Telephone 8600
Insurance 60000
Advertisement 60000
Salaries 1140000
Stationary 17000
Transport 24000
Total expenses 3829500
Total Net profit before tax 105000700
16% Vat tax 1067291
Net profit after taxation 88813308

Net profit=income – expenses

105000700 - 3829500 = 101171200

16% of vat 16/100 of 101171200 = Ksh 16187392

105000700 -16187392=88813308

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Net profit = 88813308-3829500 =84983808

5.7 PRO-FORMA BALANCE SHEET

Balance sheet as at 30th December 2025

Table 7 Balance sheet as at 30th December 2025

PARTICULARS AMOUNT (KSH)

Fixed Assets 1150000
Equipment tools and machines
Premise
Land
TOTAL FIXED ASSETS 1150000
Cash at hand 800000
Cash at bank 300000
Debtors 160000
Stock
Total current assets 1260000
Total assets= (current liability + fixed assets) –current liability+ long term

LONG TERM LIABILITY AMOUNT

Owners’ equity 230000
Friends 200000
Relatives 100000
Inheritance 780000
TOTAL LONG TERM 1310000

CURRENT LIABILITY
Creditors 174000
Tax Payable vat 126000
TOTAL CURRENT LIABILITY 300000

Total current asset= (1150000+1260000) – (1310000+300000)

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 =2410000-1010000

=1400000

5.8 PROJECTED CASH FLOW FOR THE YEAR 2025

Table 8 Projected Cash Flow for The Year 2025

RECEI JAN FEB MA AP MA JUN JUL AU SEP OCT NO DEC

PT R R Y G T V
Openin 264 268 272 274 2767 278 280 282 2883 2857 285 2865
g stock 000 600 100 500 00 700 500 100 5000 000 700 000
0 0 0 0
Loan -- --- - - - - - - - -- - -
Debtor 650 660 670 680 6900 700 710 720 7300 7600 800 8100
s 00 00 00 00 0 00 00 00 0 0 00 0
Sales 134 136 138 140 1420 144 145 147 1480 1490 150 1540
cash 000 00 000 000 00 000 000 000 00 00 000 00
Discou 720 730 750 760 7700 780 800 810 8300 8400 850 8600
nt 00 00 00 00 0 00 00 00 0 0 00 0
TOTA 291 296 300 302 3055 307 310 312 3139 3156 317 3156
L 100 100 100 900 000 900 100 000 000 00 200 000
0 0 0 0 0 0 0
Payme -- -- - - - - - - - - - -
nt
Purcha 640 660 680 700 7100 730 740 760 7700 8000 840 8800
se 00 00 00 00 0 00 00 00 0 0 00 0
Salary/ 570 580 590 600 6100 630 640 650 6600 6700 680 6900
wages 00 00 00 00 0 00 00 00 0 0 00 0
Credit 260 270 280 300 3100 320 340 350 3600 3700 380 4000
ors 00 00 00 00 0 00 00 00 0 0 00 0
Discou 400 500 600 610 6200 630 640 650 6600 6700 680 7000
nt 00 00 00 00 0 00 00 00 0 0 00 0
allowe

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 d
Tax 380 390 400 410 4200 430 440 450 4700 4800 490 5000
00 00 00 00 0 00 00 00 0 0 00 0
Total 225 240 256 262 2680 274 280 288 2120 2990 307 3170
000 000 000 000 00 000 000 600 00 00 000 0
0
Cash 268 272 274 276 2767 278 280 282 2847 2885 286 2869
flow 600 100 500 700 000 700 500 100 000 7000 500 000
0 0 0 0 0 0 0 0
Balanc 264 268 272 274 2767 276 278 280 2835 2847 285 2865
e b/d 000 600 100 500 000 700 700 500 000 000 700 000
0 0 0 0 0 0 0
Balanc 268 272 274 276 2788 278 280 282 2847 2857 286 2896
e b/c 600 100 500 700 7000 700 500 100 000 000 500 9000
0 0 0 0 0 0 0 0

5.9 BREAK EVENT LAVEL

Preparation of break event points

Break event level = fixed cost contribution margin%

But contribution margin % = (contribution margin/sales) %

Fixed cost = operation margin for the first year

For year 2025 2400000 -248000 =2151400

Contribution percentage margin (2151400/2400000)100%

=89.64%

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Break even analysis

Table 9 Break even analysis

Particulars Amount Ksh

Fixed cost 120000
Salaries 6000
Insurance 12500
Advertisement 19000
Total fixed cost 157500
Variable cost 107450
Water 38250
Stationery 20000
Postage 15000
Transport 101200
Total variable cost 281000
Total liability 4394000

5.10 DESIRED FINANCING

Table 10 Desired Financing

Particulars Amount Ksh

Pre-operational cost 1197600
Working capital 649000
Total 1846800

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5.11 Proposed capitalization
There are the source of capital to finance the business

Particulars Amount Ksh.

Owners’ equity 1200000
Friends 1100000
Relatives 899000
Inheritance 1180000
Total 437900

35