ENTREPRENEURSHIP

KNEC BUSINESS PLAN FORMAT

Your KNEC business plan format is as follows
a. Cover page
b. Front matter
c. Table of contents
d. Executive summary
e. Business description
f. Marketing plan
g. Management and organizational plan
h. Production and operational plan
i. Financial plan
j. Appendices
k. References
NOTE
a, b, and c – constitutes Milestone No 1
d- constitutes Milestone No 2
e, k – constitutes milestone No 3

COVER PAGE
a. Name of the business(and logo or other trademarks if so desired )
b. Business address( and telephone , social media contacts and email if desired)
c. Title of the document (i.e. business plan )
d. Name of the presenter:
i. Presented by……
ii. Index No…….
iii. Name of the institution….
e. To whom it is presented :
f. Presented to the Kenya national examinations council in partial fulfillment of the
requirement for the award of higher diploma/ diploma / certificate in….
g. Date of presentation ( e.g. December 2021)
h. Examination series- either NOV/DEC 2021 series or June /July 2022 series

FRONT MATTER
May include items such as
a. Declaration
b. Dedication
c. Acknowledgements
TABLE OF CONTENTS
a. Items of content and corresponding pages
b. Items reflected in the body( list of tables, list of figures)

EXECUTIVE SUMMARY
Business Description
 Describe what the business is involved in, who are the owners, the location of the
business
Marketing plan
 Indicate the high-level marketing activities that will be carried out in executing the
business the plan. Mentioning all the Ps of marketing recommended
Management and organizational plan
 Explain briefly how the management and organization of management /supervisory
activities will be carried out.
Production and operational plan
 Explain in brief how the production and operational activities will be done in a
coordinated manner to ensure that the final product/service is produced.
Financial Plan
 Mention what business projections are expected from the business. This will entail
source of the funds, cost that will be incurred and the profitability levels. These can be
derived from the income statement, balance sheet, cash flow statements etc.

CHAPTER ONE BUSINESS DESCRIPTION

1.1. Sponsor (s)
 Provide a brief background of the Sponsor of the business who in most cases is the
student writing the business plan unless otherwise stated.
1.2. Business Name
 Think of a name for your Business
1.3. Location and Address
 State exactly where you are located and indicate the address.
1.4. Form of Ownership
 Sole proprietorship
 Joint partnerships
 Limited liability company-
− Whichever form of ownership you choose, explain why you have chosen that form of
ownership and highlight some of the advantages associated with it?
1.5. Products or Services
 State and explain the exact product (s) /service(s) that you plan to offer.
1.6. Industry
 Explain the industry under which your business falls under. Explain how it is
characterized and the key players in the industry/sector.
1.7. Justification
 Justify why you are considering that business.
  Explain the compelling personal reasons to go into that kind of business
 Identify and explain the opportunities in the environment that makes you think of
selecting the business that you have selected?
1.8 Business Goals and Objectives
 Indicate /list what goals your business is expected to achieve within a given time frame
usually short/medium or long term.
1.9 entry and growth strategies
 Use the Ansoff product model- product development, marketing development, market
penetration, and diversification.
 Choose the relevant strategy (ies) and apply them to your business be in the short
term/medium or long term?
1.10 SWOT Analysis
 Internal vs. external analysis and identify opportunities and threats and how your
business will respond

CHAPTER TWO MARKETING PLAN

2.1 Customers
− Define who will be the target customers for the product/service that you will
produce.
− This can include their profile – sex, age, gender, income levels, and
even where they are located. You might include their lifestyle.
− Understanding of the customers is important as it helps in developing the
right products for the target market/segment.
2.2 Market Share and Trend
− Analyze the market and estimate the market share (total, and what each
player in the industry has; include the shares of substitute
products/services)
− NB- Substitute products are those that serve a similar need as the ones that you
are offering
2.3 Competition
− Analyze competition in terms of substitutes to the products / services that you
will offer; the other organizations that offer similar products.
2.4 Sales Tactics
− Generally, explain the tactics that you will use so that you increase the sales of
your product/service. Price skimming
− Price penetration strategies
2.5 Marketing Mix
− Will cover the key ingredients of marketing - This will include the Ps
of marketing that are referred to as the marketing mix. The Marketing mix
includes all the elements associated with a product which influences the
customer to buy a product or not. These are referred to as the Ps of Marketing.
2.5.1 Price – how much are customers charged for the product and what are the terms of
payment
Price you will charge depends on an objective that you may have i.e., penetration
objectives, positioning objectives.
− Therefore, explain some of the pricing strategies that you may consider
helping you achieve your objective like Price skimming, Price penetration
etc.
2.5.2 Product – includes the features of the product, such as design, quality, reliability,
features, and functions.
2.5.3 Place/ distribution strategy− is the way the product is distributed. Is the product sold
directly to the customer or through retail outlets?
2.5.4 Promotion- the way in which a firm communicates information about the product to the
customer e.g. use of advertising or sale force. Promotion also includes the image customers
have other product. Sales promotions- personal presentation to prospective / potential
customers.
− Advertising
− Word of mouth marketing
− Point of sale marketing
− Public relations
− Digital marketing
2.5.5 other Ps of Marketing that include:
− People
− Physical facilities

CHAPTER THREE MANAGEMENT AND ORGANIZATIONAL PLAN

3.1 Organizational Structure
− Shows the reporting structure and the span of control
− Can either be a flatter structure or long structure
− In most cases it shows the position and the level it is graded
3.2 Key Management Personnel
− Define who the key personnel are. These will include the staff who will be
controlling the various key/core functions in the enterprise.
 Qualifications
 Duties and responsibilities
3.3 Other Personnel
− These are key support personnel
 Qualifications
 Duties and responsibilities
3.4 Recruitment, Training and Promotion
− Explain how you the HR functions of Recruitment, Training and Promotion
will be done.
3.5 Remuneration and Incentives
− Discuss and explain the various incentives that will be provided.
3.6 Support Services
− Explain and discuss the other support services for your business and how they
will be offered.
3.7 Licenses, Permits and By-laws
− Explain all the licenses, permits that you will acquire for the business and the
 relevant laws that the business will adhere to.

CHAPTER FOUR PRODUCTION AND OPERATIONAL PLAN

4.1 production and operational facilities and capacity
− List and discuss all the facilities that you will use in your production process.
− Indicate possible source
4.2 production and operational strategy
− Explain the strategy that you will use to produce the desired product or the
service that the business intends to offer.
− You may also indicate the source of the inputs/ materials for production, the
pricing etc.
4.3 production and operational process
− Explain how you will go about producing the product by identifying the inputs,
processes, and the output. This can involve an estimate of various quantities.
− Design a process flow explaining how the production process will take place.
− Include a layout /sketch of the production area
4.4 regulations affecting production and operations
− Explain the relevant applicable laws to your business especially that you will
comply with regarding production.

CHAPTER FIVE FINANCIAL PLAN

Includes profit and loss, cash flow, balance sheet, break-even analysis, assumptions,
business ratios, etc.
5.1 Pre-operation Costs
− Identify the costs that the business will incur prior to the commencement
of operations.
5.2 Working Capital Requirements
− Identify the capital that the business will require to be circulating within
the business but is part of capital that is required to purchase current assets.
− Working Capital include Current Assets and Current Liabilities
5.3 Projected Cash-flows
− Establish/project the amount of cash that is sufficient that the business
will require monthly. It is vital to have enough money to meet your immediate
debts; otherwise, the business`s reputation can be at stake.
5.4 pro-forma income statements
− Establish and project the profitability/ loss position for the business by taking
into account all the incomes and the expenses incurred over a particular period
usually on an annual basis.
5.5 pro-forma balance sheets
− Establish and project the net assets position of the business. This will require
you taking into account the assets and the liabilities of the business.
5.6 Break –Even Point (BEP)
− Establish the level at which the business costs are met by the business revenues.
 5.7 Profitability Ratios
− Identify and determine key profitability ratios for the business.
5.8 Desired Financing
− Establish the finances required to start off the businesses.
5.9 Proposed Capitalization
− Establish the required capital for the business and it sources.

APPENDICES AND REFERENCES

a. Appendices
− Could be sketches of the location of the business and other designs etc.
b. References
− Indicate the sources of the material used in the project. In cases of textbooks
use the APA format of referencing

Other Points to Note

a) Recommended Font Type – Times New Roman
b) Font Size – 12
c) Bold Sub Titles
d) 1.5 Line Spacing