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Business Plan Keter Kibet Geofrey
Business Plan Keter Kibet Geofrey
PAPER CODE:
OPTION)
i
DECLARATION
I declare that this plan is an original product of my personal work in the field of my study. No one else
has ever presented it for any academic award in any other institution.
Signature................................................ Date.................................................
This plan has been submitted for examination purpose with my approval as Eldoret National Polytechnic
supervisor.
SUPERVISOR:
Signature............................................. Date.....................................
DEDICATION
This business plan is highly dedicated to my lovely parents for their upbringing me to be who I
am and their contribution in financing my education throughout the course
I would like to send my sincere gratitude to people who contributed to publication of this booklet
by providing kind of assistance I needed.
I also wish to extend my gratitude’s to my parents, my best teachers, who led me believe very
early in life that could be and do anything I set my mind to .Also special thanks goes to my
supervisor who tirelessly guided me.
TABLE OF CONTENTS
DECLARATION..............................................................................................................................i
DEDICATION...............................................................................................................................iii
ACKNOWLEDGEMENT..............................................................................................................iv
CHAPTER ONE..............................................................................................................................1
EXECUTIVE SUMMARY.............................................................................................................1
CHAPTER TWO.............................................................................................................................3
2.3.1 MAP........................................................................................................................................5
CHAPTER THREE.......................................................................................................................11
3.1 , MARKET PLAN....................................................................................................................11
3.4 COMPETITION......................................................................................................................12
CHAPTERFOUR..........................................................................................................................17
CHAPTER FIVE...........................................................................................................................22
CHAPTER SIX..............................................................................................................................31
EXECUTIVE SUMMARY
The product services offered are suspension system repair and maintenance and engine overall.
The business employs modern tools and equipment in operation with qualified personnel to
provide customers the best quality services. The industry continues as well as expanding to
become established firms.
The main goals of the business were to attain a profit of over 600,000 annually and quality
services provided to many customers and opening the business across the country. Before the
business commencing advertisement is done through newspaper and posters to reach mass of
people. Also theme is free service offer to customers with miner faults as a means of attracting
customers.
The market expectation is expected to cover areas like Elodret , Sotik, Bomet, and Litein. The
major competitors mentioned are green star Auto Generator works , Sun-shine Generator and
Umoja auto Generator .
The firm will employ all the machines and equipment to ensure time is utilized, good, quality
services at fair price are offered and competent employees are required to the firm the
business will employ both direct and indirect distributors.
1
1.3 OPERATION PLAN
In this chapter the aspect of the employee are dealt with different angle. This included duties
qualification and recruitment, responsibilities, selection, motivating employees and training
strategies laid to cab the changing technology
The operation is also featuring in this chapter as follows reception, work shop manager job
guard, services and payment receipt issue. The regulations affecting the operations are also
described in this chapter.
2.1 BUSINESS
DESCRIPTION Introduction
This chapter entails the following: Business name , Business location , address form of
ownership, production and service in the business, justification of opportunity , industry , goals
of the business and entry into growth strategy
BUSINESS LOGO
2.3 BUSINESS LOCATION AND ADDRESS
The proposed business will be allocated in Uasin Gishu County , Nakuru town just forty Five
kilometers from ELDORET town. It will be operating opposite. Tea land petrol station operates
for 24 hours. This will help the business to have more generators to be serviced throughout the
day.
The premises is a permanent building and it has enough space for parking and a conducive shade
for the customers to rest while waiting their generators. This building has electricity, WATER
AND TELEPHONE SERVICES. Also there is availability of security because the premises is
next to Nakuru police station .
The means of communication is also very effective since it is situated along a tarmac road which
will facilitate a smooth running of the business. Rent for the premises is only Ksh. 4000 per
month and from the people comment operating in the same building the owner of the premise has
no intension of increasing the rent for they have been paying the same amount for the last five
years .
Electricity supply, water and telephone bills are charged separately and according to the
metrereading,
PO BOX 150
MOISBRINGED
TELEPHONE:0798844831
2.3.1 MAP
VALLEY INSTITUTE
WARENG HIGH
SCHOOL
The owner of the proposed business will contribute ksh. 600,000 to finance the project. He
intends to rent s premise which rental as KSH4000 per month. The building is required with
electricity and piped water.
A sole proprietor can undertake any lawful business activity for profit nature. The proprietor has
to develop an idea set the goals and then develops it into profitable operations.
The performance of the engine is being disorganized first before final decision of overhang
the engine.
In case the engine does not require complete overhaul only faulty parts will be disorganized
removed and replaced by new one or repair. Regular cleaning and checking of the engine will
also be done.
Generators repair service industry has a high potential generating income for economic growth.
The manager of the business feels that the kinds of a venture chosen will be no doubt succeed
because the technical know-how having in the field of generators technology, skill and practical
experience acquired will be able other personnel to provide the customers the best quality
services.
The site to which the business is located contributes greatly to satisfy the kind of business
opportunity since it is in the term and near highway where targeted customers are.
With the advancement of the technology, the manufactures are producing more complicated
generators which the Jua- kali Generators are not able to service.
According to the research carried out by the proprietors showed that 2/3 of the people around this
area who owe personal generators are not satisfied with services they are being offered by these
existing Generators .
Generators technology, however, has continued to develop from those early times and a great
change has at the increased compound to the generators we have at the current times. These
changes have been done in all modern generators, right from the body transmission suspension,
noise regulation, braking, and any other system within a generator.
They have put much emphasize in the development of the engine as a unit and the transmission
whereby in the gearbox and differential unit.
The future of the industry is clearly defined as new technology will continue to advance, this
is to say Keter’s Metai Recycling and Modification stands a very good chance to grow within
the advancing technology as well as expanding to become an established firm in future.
The generator industries which have expanded are Toyota Kenya,Honda and D.T Dobie.
Therefore generator services industries have proved a major income generating especially in
terms where generators are involved in almost all activities.
The local technicians have been trained new technologies and some have been sponsored to
manufacturing industries in different countries e.g. China, India and Japan in order to cope with
new.
2.8 GOALS OF THE BUSINESS
The proposed business will have the following goals .
i. The firm aims at satisfying the needs of her customer in relation to the quality of
service being offered.
ii. Ensuring that the machine and equipment required are purchased in the year
before the commencement date.
I. The Keter’s Metai Recycling and Modification aims at ensuring smooth running
of the business by making a good duty assignment to employees
II. The business aims at expanding its firm by installing modern machines and
equipment and open branches as much as possible.
III. The firm aims at training their employees to improve the capabilities in performing
their duties thus utilizing available labour force.
The owner of the business is also planning to offer free services to customer with minor faults as
a means of attraction and retailing customers. The business will offer the services at a reasonable
and competitive price.
The business will assess the current prices being charged by the existing similar business and
reduced a small percentage of those prices so as to attract more customers.
Another free service which the business will offer is generator cleaning free of charge. The
owner of the business is also planning to open new branches within three years where he will
introduce another services so as to facilitate the requirement of the customers.
CHAPTER THREE
This chapter entails the following: market goals potential customers’ competition, advertisement and
promotion strategy and distribution strategy
a) Institutional customers
Schools such as Nakuru Boys High School, AIC Girls High School &Kabarteka Boys High
School have school generators. This will also form the main targeted group of business
customers to the proposed business who dependent on generator as a source of power during
electricity breakdown since they are not more than three kilometers away from the Generator .
b) Commercial customers
The major retarget customers are Tea Factories and pineapple processing factories which are
eight hundred metres away from the premises business.
These factories have generators for generating power during electric shortage so as to enhance
continuous production
c) Petrol station
The farmers Tealand petrol station which is opposite the business premise will greatly contribute
to Generators. The petrol station uses generator as a source of power during electricity
shortages. Maintenance and repair of the generator will be done by the premise
3.4 COMPETITION
There are many competitors at Nakuru as a whole and it is so risk to start a such a business when
it is clear that there are many established Generator in the town.
These competitors will be manly the Jua – kali people who are currently spread all over the town.
These competition are Green starts Auto-work, sun shine Umaja Automobile Generator .
This is well established Generator which has been in existence for more than six years. It is
situated at Sotik- Bomet Junction road which is one kilometer away from the proposed site of
the Keter’s Metai Recycling and Modification
The owner of the business was formally an employs at one of the tea factor in the area. It is
situated two kilometers away from KETER’S METAI RECYCLING AND MODIFICATION
From the data collected , it was found that the population of the Nakuru town is 15,000 persons
and out of this population statistical analysis show that the potential customers were found to be
30% of the total population. According to the research carried out, majority of this customers
come from parastatal bodies, factories and transit generators transporting goods to various towns
.
The total Generator sales for each of the competitors’ is to be ksh 12,000 per month , burying
up a total of Ksh. 36,000 for the three contributors whichMchile sun-shine Auto works &Umoja
Automobile Generator . Within one year, the proposed business will have the total average sales
to be Ksh. 900,000 when the business becomes fully operations, it will aim at getting 65%of this
total sales.
The proposed business will employ free services promotions like generator cleaning which
will attract more customers. This promotion offered to customers who are regularly setting
services in KETER’S METAI AUTOMOBILE GENERATOR .
Advertisement
The advertising methods of the name of the business will include;
a) Sun-Posts
The sun-posts will bear the name of the business, a address, telephone, location and services. It
will be placed at the main road junction.
b) Posters
Posters will pin at a strategic point before the business starts so as to inform the public of the
new business.
The owner of the business will organize with the requital heads so that as they held their
meeting, barazas fund raising and he/she will set a chance to give to adherence.
Environment Policy
This will include taxes imposed on the permits, insurance and other requirements. These factors
will arise. The factors will raise the cost of service hence resulting cost price rise.
The business will recruit new employees through advertisement, interview and posters. It will
advertise the available posts and qualification in regional meetings through local regional
leaders. Also the owner will interview the meeting orally as per the posts.
In the indirect channel of distribution, he owner of the vehicle will go directly to the workshop
after being allowed to enter in and take to the mechanic who will direct him to the right
department where he/she will be served.
The mechanics prepares a report on what has been done on the vehicle is handled over to the
owner.
The manager will make sure that he will retain his customers by offering credit facilities to
them. Those that he is sure they are creditworthy. Also through washing the vehicle after
service. Also through free inflation of the tyres . Again by testing the vehicle to make sure that it
is in good condition.
CHAPTERFOUR
This chapter entails the following: organization structure, management personnel and other
business personnel
The following are the qualification that the business intent to look for a manager.
POSITION QUALIFICATION
MANAGER 1. Should be 28-32 years
2. Should be married
3. Should be having experience of at least two years
4. Should be Diploma holder in Motor- vehicle, automotive,
engineering with the managerial skills from recognized
institution.
4.3 PERSONNEL NUMBER AND DUTIES
POSITION NUMBER DUTIES
MANAGER One i. He will be responsible for the employed salary
ii. He will be the overall Generator manager
iii. Planner – he will be responsible for all the activities to
be planned in the business on daily basis and ensure that
the services are directed to customers effectively.
iv. Organizer- He is responsible for purchasing of the
materials recruiting procedure for the personnel as
well as dividing the work as per specialized among the
employees
v. Controller- He is responsible for the control of running
for the business that is by injecting the performance
and advertising his employees
vi. Coordinator- His responsibilities are for coordinating
and reconciling of individual, social and organization
interest of all the employees.
SUPERVISOR ONE i. He should be time conscious
ii. He should have ability to set achieve
personnel objectives
iii. He should be good aiming and quick in decision making
ELECTRICIAN TWO - They will be in charge of charging process and
repairing electrical systems and equipments.
MANAGER
Watchman
Toilet
Manager office
Workshop
DESCRIPTION AMOUNT
Raw materials 52,000
Labour cost 12,000
Operating expenses 16,000
TOTAL 80,000
B) Average monthly production capacity
DESCRIPTION AMOUNT
1. ENGINE OVER HAULINE 60,000
Petrol 60,000
Diesel 80,000
8
8
10
2. SUSPENSION REPAIR
leaf spring 50,000
Mac-Pherson strut 70,000
Wesh bone 60,000
5
7
Keter’s Metai Recycling and Modification will try and produce more quality products even
through machines and equipment at the beginning the business will attain them as the business
continues operation.
As the business has become a stable and generate enough source of income. It will open a
spare part shop to sell to customers and also attracting more customers who will boast the
business.
Quality Control
The services given to the customer should be made sure that they are of high standard and
should be maintained this through checking and testing of the generator by checking fuel system
and break system.
Before the generator is handed over to the customer it is washed and make sure that everything
in generator was processing is returned i.e good for the owner.
RECEPTION
WORKSHOP
JOB GUAD
SERVICE
i. Workshop manager
To check the car and direct the customer to the job guard
This is the final stage where payment is made and issuing of receipt.
The proposed business will abide by the all at government rules for its smooth running so as to
accomplish its set goals which are expressed below.
i. Health regulation
The working condition of the business should be made favorable by cleaning , collecting all
the rubbish in the compound like used tins and chips which might cause injuries to the
workers or customers health standards good advantage and proper ventilation should be
considered in order to experience good production in the area of the business.
To maintain the environment, the premises should have dust pit for disposal of waste and
dust bins will be provided to ensure that litter does not spread around.
iii. Security
Employees should be having insurance policy incase insured by machine . The premises should
be insured against fire.
Before the commencement of the business, the license should be acquired from the local
government for its smooth operation.
v. Building regulations
The proposed business is bulky following building set by the government. This building has
been partitioned into sections but was not grow enough room for ventilation.
The employee will ensure that there is good sanitation. The owner of the business will also,
ensure that the fire extinguisher is always filled and inspected for safety purposes.
LICENSE
This is a legal requirement for the start of any business which is obtained from country council
within the county the business jurisdiction. The business trade license will get from Bureti
District head quarter at a fee of 2500.
PERMITS
It will be certificate of registration fee from the registrar of the business name act. The trading
permit will be get from county council of Bureti and Litien town at a cost of Ksh. 2,000
BY-LAWS
The business will formulate its By-laws and will be appointed the premise.
The following will be required the employee to adhere to them strictly. They includes
Labour regulation act requires every employee of the purpose business to be register.
Health regulation ac entails that maximum cleanliness of employee should also be maintain
in the processed business safely of employee and should also be maintained.
iii. Employment regulation act cap 226
This employment regulation act entails the rule and regulations which should be adhered to
employment Acts advocate for equity and fairness to the workers should be given good
remuneration as per work done.
i. Insurance services
The business will insure its structure, tools, equipment products and services and employs are
insured against risk and uncertainty. Information concerning insurance for the business s to
be obtained from AMACCO insurance company.
The posters will have postage at Nakuru postage office. The Kenya telecommunication and post
services is to provide telephone services and installation and letter posting services to the
business.
The business will apply banking services from equity BANK Nakuru 3000 metres away
from the business. The business deposits money and operates a current account.
The bank will provide services such as provision of loan keeping enterprise financial and
giving dividends.
iv. Water and electricity
The council has big water project tame supply and half kilometers away from the business. The
payment fee and monthly charges depend on the amount of water individual use.
The electricity supply is well equity all over the place. It is only installed by the Kenya
power and lightening company asset paying ksh. 30,000.
CHAPTER SIX
540,000-60,000
= 480,000
Keter’s Metai Recycling and Modification proforma income for the year ending Dec, 2020
PARTICULARS AMOUNT
Sales 1400,000
Stock 350,000
Grass Profit 1750, 000
Expenses 120,000
Wages & salaries 30,000
Insurance 12,000
Telephone 15,500
Loan 180,000
Repair & maintenance 264,000
Advertisement 230,000
TOTAL EXPENSE 415,000
Tax at 10%
10x 660500 =
100
Net profit after
tax 660500-
66050
= 594450
PROFOMA BALANCE SHEET
Current liabilities
Creditors 240,000
Short term loan 430,000
720,000
5,956,800-594450
Advertisement 23,000
1400, 000-68900
= 1, 3311,100
= 95.08%
= 162,000x 100
95.1
= 70,347.00
= 1750,000 x 100
1400,00
= 125%
= 10.8%
= 594,450 x 100
370,000
=160.7 %
842,000