CHAPTER ONE
EXECUTIVE SUMMARY
1.0. BUSINESS DECLARATION
The business is called MUHUDUMU computer repairs. The business deals with all kinds of
computers which have problems and get a proper resolutions for them to function properly
again
1.1. BACKGROUND OF THE OWNER
The name of the owner is MARTHA SALOME aged 23 years old and she has qualified in
information and communication technology, she stays at MALAVA market.
1.2 BUSINESS NAME AND LOGO
1.2.1 BUSINESS NAME
The business name will be MUHUDUMU computer repairs, the name was favorite for my
business plan because ‘MUHUDUMU’ is a Kiswahili word meaning the services. The
business will be offering services, and that is quality services
1.2.2 BUSINESS LOGO
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1.3 BUSINESS LOCATION AND ADDRESS
1.3.1 BUSINESS LOCATION
The business will be located at Malava market along webuye- kakamega road. The business
will be on the right hand-side on your way to kakamega town at malava stage and that is
opposite the safaricom shop malava branch.
Catholic
church
malava
Safaricom MUHUDUMU
shop computer
repairs
1.3.2 BUSINESS ADDRESS
Name: MUHUDUMU computer repirs.
Address: P.O BOX 66
Town : malava
Telephone No: 0795032176
Website: www. Muhudumu computer repairs.co.ke
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1.4 FORM OF BUSINESS OWNERSHIP
The business will be a sole proprietorship type of business. I choose this type of business
because I wanted to have a close supervision to my business, quick decision making, enjoy
all profits and have contact with my customers directly.
1.5 TYPE OF BUSINESS
This will be a startup business and I wish to start up in 2025. This will give me more time to
assemble all products and have enough capital to start and run smoothly.
1.6 PRODUCTS AND SERVICES
1.6.1 PRODUCTS
The business will offer computer accessories, printing, scanning, editing, and photocopying
and software installation.
1.6.2 SERVICES
The business will offer online services, network maintenance, computer repair and
maintenance, free internet, consultation and free delivery to all customers
1.7 JUSTIFICATION OF THE BUSINESS
I chose this type of business because there is ready available market, materials and trained
people who will manage the business. The market are the nearby schools and customers from
the same market.
1.8 INDUSTRY
This business is under the ministry of Information Communication Technology thus
providing better and qualified computer services and products.
1.9 GOALS AND OBJECTIVES
1.9.1 GOALS
The business will have both long and short term goals. Short term goal will improve standard
of living to increase personnel wealth. On the other side long term goal will be to improve
business from sole proprietorship to partnership type of business to create job opportunities to
unemployed. Open different branches in the county and outside the county too
1.9.2 OBJECTIVES
Supply of goods and services create employment to unemployed and improve the standard of
living of many people.
1.10 ENTRY AND GROWTH
1.10.1 ENTRY
The business starts up with a capital of sh. 800,000 which I will obtain from my personal
savings, loans, and contribution from family and friends.
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1.10.2 GROWTH
The business will be targeting most learners from nearby schools and outside the market. I
will make use of radios, newspapers and creating awareness as a method of advertisement tis
will enhance the growth of the business as their success attracts more customers.
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CHAPTER TWO
2.0 MAKETING PLAN
The business will mostly be offering computer repairs and maintenance, computer
accessories, phone accessories, printing, scanning and editing. It will make good use of
radios, posters, newspapers creating awareness a mode of advertisement.
2.1 POTENTIAL CUSTOMERS
The business will be targeting schools repairing their computers, students doing
photocopying and online services and local people as the potential customers. The business
will also supply goods and services to a group of customers.
2.2 COMPETITORS
The types of competitors will be MWALA computer engineering, Mama mary computer
services and azimio computer technician and accessories.
competitors Strength weakness opportunity threat
Self-employed Many employed Availability of Lack of enough
Mama mary customers hence but poor goods and funds.
computer services are reliable in communication services at high
payment. skills. quality.
Azimio computer More customers Low goods and Affordable and Lack of skilled
technician and from all routes of services are reasonable goods personnel.
accessories the market. produced. and services.
MWALA Average number High cost of Active and Inadequate
computer of customers. goods and convincing mode number of
engineering services of advertisement. customers.
2.3 MARKET SHARE AND SIZE
At the start the business has about 20000 potential customers. The market is at a high chance
to grow since the county government is trying its level best to ensure that the construction of
a modern market is enhanced and completed on time.
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Market share before entering the business pie chart.
muhudumu
computer repairs
mwala computer
engineering
mama mary
computer ser-
vices
azimio technician
and accessories
Market share after entering the business
muhudumu computer
repairs
mwala computer en-
gineering
mama mary computer
services
azimio technician and
accessories
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2.4 METHODS OF PROMOTION AND ADVERTISEMENT
2.4.1 PROMOTION
i) Free delivery
Goods and services will be delivered to customers without paying in transportation cost. This
will encourage the growth of the business since bringing more customers building customer
ratio. This will be when a customer has ordered a product online like a computer accessories
or phone accessories and wants it to be delivered.
ii) Employ qualified personnel
Employing qualified personnel who will promote the products .This is to educate the
customers on the prices and products to increase knowledge of that customers has and also to
have a warning of any fraudsters at them
iii) Offer discounts
The business will offer discounts so as customers to purchase goods in terms of installments
and pay deposits .This will promote products and services in the market.
2.4.2 ADEVERTISEMENT
Is the familiarizing with products you are producing to the customers?
i) Posters
The business will post posters in different places as a mean of advertising the products
hence enabling customers to increase.
ii) Facebook
The pages will be created on Facebook account to advertise the products and services.
iii) Posts
The sign posts will be located at different places in the market around the town. This will
be a mode of advertising products and services since it will describe different prices
offered by the business.
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2.5 PRICING STRATEGY
The business will be offering products and services and a discount allowed depending on the
quality and quantity of the products and services offered. The type of credit offered will be
hire purchase prices and customers will be able to access prices of different products and
services on the checklist provided at the entrance. Factors to consider;
i) Transportation cost
The higher the transport the higher the price of products and the lower the transportation,
lower the price of goods and services at the market.
ii) Demand and supply
The highest the demand of products the lower the supply of products hence the products cost
is low and the lower the demand of goods and services the high the demand and high prices
of products.
2.6 SALES TACTICS
i) Free delivery
The prices of goods and services will be sold according to the delivery of goods and services
in the market.
ii) Directly
The business will have qualified employees with personnel skill who will be able to conduct
customers directly.
iv) Hire purchase
The business will be offering goods and services at higher purchase to where by it will offer
deposits and a method of credit terms.
2.7 DISTRIBUTION STRATEGY
The business will offer directly distribution to customers.
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Zero channel
PRODUCER CUSTOMERS
One channel
PRODUCER MANUFACTURER CUSTOMERS
CHAPTER THREE
9
3.0 ORGANIZATION STRUCTURE
The owner of the business will be the manager since it is a sole proprietorship type of
business. The owner will be assisted by supervisor who will be on ground to ensure the
technician, accountant and others do their duty
3.1 TOP MANAGEMENT
MANAGER
SUPERVISOR
SECURITY ATTENDANTS TECHNICIAN
OFFICER
3.1.1 DUTIES AND RESPONSIBILITIES
i) Manager
She will be the owner of the business, plans on how the business operates, coordinates the
entire staff and settle disputes among employees.
ii) Supervisor
Consults the manager in decision making, supervises the junior staff and arranges the jobs in
businesses.
iv) Maintenance Technician
Cares and ensures all computers are in good condition, helps in deciding which computers to
buy and maintains network of business.
v) Attendants
He will be helping in carrying out of day to day activities in the business premises.
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3.2 QUALIFICATION
i) Manager
Good in communication skills
Have skills in ICT
Good in enterprenual skills
Diploma/degree in ICT or related studies
ii) Supervisor
Good in communication skills
One year experience
Diploma/degree in ICT
iv) cook
Two year experience
Neat and presentable
At least a certificate in food and beverage course.
v) Technician and repair
Good in communication skills
Two years’ experience
Certificate in lab tech
3.3 OTHER PERSONNEL
Personnel No. of personnel Qualifications Duties
Technician and repair 1 Good in Cares and ensures all
communication computers are in
skills good condition, helps
Two years’ in deciding which
experience computers to buy and
Certificate in lab maintains network of
tech business.
Cook 1 Two year He will be helping in
experience carrying out of day to
Neat and day activities in the
presentable business premises.
At- least a
certificate in food
and beverage.
Security 1 Form four Ensure there is
certificate security in the
Good in business and also
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communication welcoming
skills customers to the
business
3.3 RECRUITMENT, TRAINING AND PROMOTION
3.3.1 RECRUITMENT
These will be based on the level of education, experience and the person’s skills in ict as the
business is ict oriented.
WAYS OF RECRUITMENT
Use of advertisement on posted newspapers. An interview will be conducted to individuals to
confirm capability for the post.
3.3.2 TRAINING
The business will be offering short term training to its workers .training offered to the owners
will be done free of charge. Training shall be conducted by an expert of good knowledge and
experience thus this will keep my workers in awareness of all that is required in an ict
business oriented.
3.4 RENUMERATION, SALARY AND INCENTIVES
Remuneration No. of personnel salary allowance Total
Manager 1 13500 500 14000
Supervisor 1 10000 10000
I.C.T accountant 1 7000 500 7500
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Technical 1 6000 1500 7500
Driver 1 4000 1000 5000
Guard 1 3500 500 4000
Total 6 48000
3.5 LICENCE AND PERMITS
3.5.1 LICENCE
The business will validate the access of the permit and license for running the business and
also to adhere to the government by laws as concerned.
3.6 SUPPORT SERVICES
3.6.1 INSURANCE
The business will have an insurance cover for life for all the workers in the business in case
of an outbreak of fire or an accident.
3.6.2 BBANKING SERVICES
The business will have a bank account from Equity bank of Kenya Kitale branch as it easily
accessible from various agents countrywide with an activation fee of sh 500.
3.6.3 POSTAL SERVICES
The business will have an address for sending and receiving important postal documents
letters and information.
3.6.4 ELECTRICITY
The supply of electricity will be maintained to prevent damage of computers.
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CHAPTER FOUR
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4.0 OPERATIONAL/PRODUCTION PLAN
This contains products facilities, production strategy, production process, government
regulation and external rules and regulation.
4.1 PRODUCTIION FACILITIES AND CAPACITY
The business will have some facilities and equipment that will enable the smooth running of
the business for example a vehicle for transportation power back up facilities to ensure
smooth running of the enterprise.
4.2 FIRM LAYOUT
B D
G H
C E
KEY
A. Front office
B. Computer room
C. computer room
D. Kitchen
E. Technician room
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F. Accountant office
4.3 PRODUCTION STRATEGY
The business production of goods and services will greatly be enhanced by the purchase of
the following machine as shown in the table.
DESCRIPTION QUANTITY COST PER ITEM TOTAL COST
Blinder 2 1500 3000
Printer 2 3500 7000
Packing equipment 10 1000 10000
Laminating machine 1 3000 3000
Motor vehicle 1 20000 20000
Total 16 223000
4.4 PRODUCTION PROCESS / OPERATIONAL PROCESS
All computer accessories shall be ordered from the main company stores and transported to
the business contacts. There after products from the business will be offered from customers
both directly and indirectly and a receipt will be issued out to confirm purchase and payment
made after service.
4.5.1 FACTORS AFFECTING PRODUCTION PROCESS
Every enterprise has regulations imposed that governs them or affect it directly or indirectly.
They include:
4.5.2 EPLOYMENT
It is a regulation that needs you to ensure that all your employees are treated fairly end having
pension and leave.
4.5.3 CONSUMER RIGHTS
The law wants you to ensure that production and services must be;
As described
Satisfactory
Fit for purpose and use.
4.5.4 GOVERNMENT POLICY
These are policies amended by the government on businesses to ensure the businesses are
licensed, taxed and ae legal.
Breach of these regulations leads to business closure.
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CHAPTER FIVE
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5.0 FINANCIAL PLAN
Their will have support from family, friends, personal savings and loans from banks.
5.1 PRE-OPERATIONAL COST.
These are the cost that will be incurred before starting the business:
ITEM COST
Promotion and advertisement 10000
License and permit 14000
Insurance 10000
Installation of equipment 35000
Electrical installation 35000
Opening stock 70000
Building of rooms 20000
Total 176000
5.2 ESTIMATION OF THE WORKING CAPITAL
ITEM COST
Accounts payable 100000
Bank loans 100000
Total current liabilities 200000
5.3PROFORMA BALANCE SHEETS
ITEM COST
Machinery and equipment 1000000
Acc depression 100000
Net value 900000
Premises 300000
Acc depression 5000
Net value 295000
Furniture 300000
Acc depression 15000
Net value 285000
TOTAL 1480000
CURRENT ASSETS COST
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Cash in hand 200000
Cash at bank 400000
Inventory 24000
Accounts receivable 100000
TOTAL 724000
ITEM COST
CURRENT LIABILITIES
Accounts payable 100000
Bank loan 100000
TOTAL 200000
LONG TERM LIABILITIES
Long term loan 150000
Capital 900000
TOTAL 1050000
5.4PROFORMA INCOME STATEMENT
Sales 1500000
Cost of goods sold 500000
Gross profit 1000000
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Expenses
Salaries and remunerations 20500
Business premises 30000
Electricity 10000
Stationery 10000
Transport and fuel 15000
Repair and maintenance 10000
Loans and interest 50000
Promotions and advertisements 15000
TOTAL 160000
Net profit before tax 590000
16% taxation 94,400
Net profit after tax 495600
5.5 CALCULATION OF BREAK-EVEN POINT
BREAK-EVEN ANALYSIS
Variable costs
ITEM COST
Transport and fuel 300000
Repair and maintenance 10000
Advertisement 15000
Water 10000
TOTAL 65000
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FIXED COSTS
ITEM COST
Tax 5000
Salaries and wages 50000
Insurance 5000
Loan interest 10000
Electricity 25000
License and permits 4000
TOTAL 99000
Contribution margin will be acquired by;
Sales-total variables
1500000-65000
=1435000
Contribution margin percentage
Contribution margin/sales*100
=1435000/1500000*100 =96.67%
Break-even of sales
Fixed costs/contribution margin*100
99000/1435000*100=6.9%
Break even revenue
Total sales-cost of sales
1500000-50000=1450000
Break even turn over
Fixed costs/contribution margin*100
99000/1435000*100=6.9%
Break even unit
Contribution margin/fixed costs
1435000/99000=14.49 units
5.6 CALCULATION OF PROFITABLE RATIOS
Gross profit ratio
Gross profit/sale*100%
750000/1500000*100=50%
Net profit ratio
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Net profit/sales*100%
495600/1500000*100=33.04%
Return on equity
Net profit/owners’ equity*100
495600/1666000*100%=29.75
5.7 DESIRED FINANCING
ITEM COST
Pre operational cost 202000
Working capital 594000
Fixed assets 870000
TOTAL 1666000
5.8 PROPOSED CAPITALISTION
The business will have to acquire the finances from the following sources
Personal savings 60%
Loans and grants 25%
Family and friends’ contributions 15%
Sales
11%
Personal savings
25% loans and grants
family and friends
64%
Personal savings
If 100% is 594000
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What of 60%
60*594000/100%=356400
Loans and grants
100=594000
594000*25/100%=148500
Family and friends’ contributions
100=594000
594000*15/100=89100
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APPENDIX
JAN FEB MAR APR MAY JUN JUL AU SEP OCT NO DEC TOTAL
G V
SALES
BANK LOANS
DEBTORS
CAPITAL
INTRODUCED
SALARIES AND
WAGES
INSURANCE
REPAIR AN
MAINTENANCE
ADVERTISEMENT
ELECTRICITY
AND WATER
TRANSPORT
LOAN INTEREST
LICENCES AND
PERMITS
TOTAL
PREPARATION OF CASH FLOW PROJECTIONS FOR THE SECOND
YEAR
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