BUSINESS NAME: BEATRICE CYBER CAFE
BUSINESS PLAN PRESENTED BY BEATRICE JERUTO
INDEX NUMBER : 5401010002
CENTRE NO: 5401010
COURSE CODE:
DEPARTMENT: BUSINESS DEPARTMENT
INSTITUTION: KAIBOI TECHNICAL TRAINING INSTITUTE
SUPERVISOR: KENNEDY TOGOM
PRESENTED TO KENYA NATIONAL EXAMINATION
COUNCIL IN PARTIAL FULFILLMENT FOR THE AWARD
OF CERTIFICATE IN LIBRARY AND INFORMATION
SCIENCE
EXAM SERIES: NOVEMBER 2022
DECLARATION
I declare that this business plan is my work and has never been submitted by any
examination body for awards.
NAME OF CANDIDATE: BEATRICE JERUTO
INDEX NUMBER: 5401010002
DATE: ……………………………………....
SIGN: …………………………………………
NAME OF THE LECTURER: MR.KENNEDY TOGOM
DATE: ……………………………………....
SIGN: …………………………………………
DEDICATION
I dedicate the project to my friends and relatives who gave me full support when I
was researching and writing this project.
ACKNOWLEDGEMENT
My special thanks go to my parents who gave me support to pay my school fees. I
would also thank my friends. Lastly to my teachers who gave me words of
encouragement during my project.
iii
TABLE OF CONTENTS
Declaration ………………………………………………………………… i
Dedication………………………………………………………………….... ii
Acknowledgement ………………………………………………………….. iii
CHAPTER ONE
1.0business description …………………………………………………. 1
1.1 proposed ownership structure for the business ………………………. 2
1.2 Location of business ………………………………………………… 3
1.3 Choice of the business ………………………………………………… 4
1.4 The industry ………………………………………………………….. 5
1.5 Products and services ………………………………………………… 6
1.6 Growth strategy ……………………………………………………… 7
1.7 Justification………………………………………………………………8
CHAPTER TWO
2.0Marketing plan ………………………………………………………. 9
2.1Customers ……………………………………………………………. 9
2.2Market share …………………………………………………………. 10
2.3Competition ………………………………………………………….. 10
2.4Advertising and promotion strategy………………………………… 11
2.5Pricing strategy ……………………………………………………… 11
2.6Sales tactics …………………………………………………………. 12
2.7Distribution strategy……………………………………………………….12
CHAPTER THREE
3.0 Organization and management ……………………………………. 13-14
3.0.1 Business qualifications and management ……………………………. 15-1
3.1salary of employees per month ………………………………………. 17
3.2Training……………………………………………………………………18
3.3Recruitment ………………………………………………………….. 18
3.4Developing rules …………………………………………………… 19
CHAPTER FOUR
4.0Production plan ……………………………………………………. 20
4.1 Production operation…………………………………………….. 21
4.2 Labour requirement …………………………………………… 22
4.3 Expansion overheads …………………………………………. 22
4.4 Cost of production ……………………………………………. 23
4.5 Government regulation …………………………………………. 24
CHAPTER FIVE
5.0 Financial Plan ………………………………………………….. 25
5.1 Pre – operational cost …………………………………………. 26
5.2 Working Capital requirements ……………………………… 27
5.3Profoma cash flow……………………………………………… 28
5.4 Break event Level …………………………………………… 29-30
Appendix I………………………………………………………… 31
Appendix II ………………………………………………………… 32
EXECUTIVE SUMMARY
BUSINESS DESCRIPTION
The name of the proposed business is Beatrice Cyber Café. It is situated at pipeline Estate along
Autering road next to national petrol station.
MARKETING PLAN
The business is meant to generate profit and bring investors to the firm. It will have the largest
market share than the competitors due to strategic position where competition is minimal and
development and infrastructure are improved. The business intends to offer products at fair and
reasonable price to attract many customers included Nairobi Aviation College, Tumaini
Supermaket and Uchumi Supermarket.
ORGANIZATION PLAN
The management team consist of general manager, purchasing manager,accountant and
subordinates. Their communication is based on a qualification and experiences.
Their performers is measure using performance appraisal report.
PRODUCTION PLAN
Production process start from the part where imformation are collected,print, sorted,transportws
and lastly payment in terms of cash. The product are high quality and are good for customer’s
satisfaction.
FINANCIAL PLAN
This is management of financial available to the intended cost to be incurred and working
capital,cash flow projected,balance sheet and finally profitability of the business performance.
CHAPTER ONE
1.0BUSINESS DESCRIPTION
My name is BEATRICE JERUTO the owner of the business I am 24 years old
working as a sole proprietor. I live in Nandi county Nandi Hills sub county Siret
location and a student at Kaiboi Technical Training Institute for my first year.
The business will be dealing with printing, editing, typesetting, photocopy, internet
services, lamination and typing.
1
1.1 PROPOSED OWNERSHIP STRUCTURE FOR THE BUSINESS
In order the proposed business to be successful there must be the sponsors to assist
to contribute some money. The owners of the business will be sole proprietor.
The owner prefer this type of business due to the following reasons;
1. She wanted to enjoy all the profits alone.
2. She wanted to keep secrets of all the business success and failures.
3. She wants to be the boss of her own.
4. She needs to be making decision and implementing them.
The proposed business requires a maximum of two million to be stable.
The amount is expected as follows
SOURCE AMOUN PERCENTAGE
T
Personal 170,000 40%
contribution 20%
Friend 350,000 20%
Family 550,000 20%
Bank loan 100,000
TOTAL 500,000
2
1.2THE LOCATION OF THE BUSINESS
The business is located at Kabiyet - Kaiboi road highway near total petrol station.
Petrol station
KIPKAREN ROAD
UPPER HILL PRINTERS AND
PHOTOCOPY
KAIBOI KABIYET HIGHWAY
OUTERING ROAD
Our room is 200m from town. It is third floor room written BEATRICE CYBER
CAFE. This is the Address;
BEATRICE CYBER CAFE
P.O BOX 937
ELDORET.
TEL: +0790899380
FAX: 294019
Immediately after contribution I will ensure that the business starts.
3.
1.3 CHOICE OF THE BUSINESS
The business will be located in a well improved infrastructure and where there is
well improved electricity. In order to ensure that there is no power shortage during
the business should have machines to operate well like, Laptops, Computers and
files.
The business will offer job opportunities to some well-educated and hard work
people.
1.4 THE INDUSTRY
The sole proprietor ensures that there is co-operation in business. This is because
there must be goals to ensure continuity in business in the county and should be a
well-known market. Those who transport and sell should be social to people and
speak politely.This business will fall under the category of marketing with only finished
products e.g Textbooks, Exercise books,Calenders and any others this is just to state a view .The
reason for choosing this kind of business is to kill of the dominance of Kabiyet ICT Center
Limited which has been the only industry to provide this all sorts of services in the county.
1.5 PRODUCTS AND SERVICES OF THE BUSINESS
The service rendered by the business will majorly depend on the demand and
population in this town.
They are offered to anyone who needs and there is a discount for customers during
rendering of services.
1.6 GROWTH STRATEGY
a) Prestart up stage
As a manager, I will ensure all the effective plans in this business are well
organized. I should aim higher by arranging this business well.
b) Growth stage
I will encourage the workers inside the business to be hard work and run the
business smoothly and also be faster when serving customers.
c) Maturity Stage
As this stage the business has fully developed and I will be expecting a profit of 60
earnings.
7.
1.7 JUSTIFICATION OF OPPORTUNITY
BEATRICE CYBER CAFE will serve the people in the area effectively and
improve the economy of the area through revenue payments. It helps the residents
of this place to get Cyber services easily without travelling far, hence reduce
amount spent in transporting costs. The center will also take growth steps in
industrialization. The surrounding community will benefit from the business
through employment of trained youths. The community will benefit from newly
technology services provided by BEATRICE CYBER CAFÉ are offered locally
and with reasonable prices.
8.
CHAPTER TWO
2.0 MARKETING PLAN.
The market for the services varies with need for the required services
2.1 CUSTOMERS
The expected customers for the services mainly the students from the institutions
that surrounds Nandi County and are all people in this town who wants to get
them. Customers should be able to access our services daily at all time shown as
follows:
Week days
Monday –Friday 6:30am -7:00pm
Weekends
Saturday REST
Sunday 1:30pm-4:00pm
9.
2.2 MARKETING SHARE
Anybody who wants an encouragement in starting our market there is a room for
customers for negotiation and international. We offer our services depending with
those who want to start either locally or external.
2.3 COMPETITION
The competitors are the local market around the market .There is high competition
but we should not surrender but focus for our goals.
10.
2.4 ADVERTISING AND PROMOTION STRATEGY
Our form of advertising, use of flag cards, business cards and promotion by use of
radios televisions and magazines and also sometimes social media social media
and we use language that all people understand well.
2.5 PRICING STATEGY
The price of the service will be affordable to all customers. We lower our price
when other markets increase and we increase when they lower but not increasing
only, but giving the high quality and quantity services .When there is also high
demand for this service the price will increase .We do this by ensuring that there is
profit.
11.
2.6 SALE TACTICS
Although the customers are local people we transport our products to Eldoret
where there is high demand.
2.7 DISTRIBUTION STRATEGY
The products are distributed to customers who are in some bookshops and other
industries the money should be paid first since the demand is high most of the
time. There are Lorries for new mature standards to distribute the product.
12.
CHAPTER THREE
3.0 ORGANIZATION AND MANAGEMENT
3.0.1 BUSINESS MANAGEMENT AND QUALIFICATION
The owner of the business will employ a manager .The manager will have the
following duties
Setting up measures to ensure that business succeeds
Analyzing the market conditions
Supervising other employees
Maintain and assessing business records
13.
Qualifications of the manager
Should have good leadership skills
Should have positive attitude work
Should have 24 years and above
Should be a holder of a Kenya Certificate Of Secondary Education
(b) Security personnel
He/she will have duties and responsibilities
- Safeguard the business premises and assets
- Ensuring that there is peace around the compound.
Qualifications
- Have age of between 20-40 years
- Be a well trainee solder
- Well conversant with the business
14.
- (c) The cashier
His /her duties involve:
- Prepare trade profit and loss statement
- Prepare the financial statements of the business.
Qualifications
- Should be computer literate
- Be better in calculations
- Be a college trainee
- Diploma in accountancy
15.
d) Sales person
- Looking for tender for the business
- Formulation of market analysis
- Writing of receipts
His / her qualifications
- Be of age of 20 – 40 years
- Have good public relations
- Have experience at least a year in the post
16.
3.1 SALARY OF THE EMPLOYEES PER MONTH
Employee Amount in Ksh. Number of employees needed.
Manager 7000 1
Security personnel 6500 1
The cashier 5,000 1
Sales person 5,000 1
Driver 4,500 3
The salary to be paid to employee depends on his/her work. They are all paid fairly
without any delay of the money each month. This is to ensure that the employees
work in a positive way.
17.
3.2 TRAINING
In order to train any person, there is an institution around the town which offers
more training like and skills, Computer studies, Driving School, Business
Management and many others for those who need to be employed in New Mature
Standard.
This training is technical on business depending on the job to be taken.
3.3 RECRUITMENT
This will be carried out by the management ad it will be done to fill particular
posts. The advertisement for these posts will be done through leaders’ local Chief,
Radios and social media.
A person will qualify if only pass well in the interviews.
18.
3.4 DEVELOPING RULES
The rules of the employees are also there, they should
- Be hard work
- Polite to everyone
- Be present everyday of the work
- Not allow jokes in the business
19.
CHAPTER FOUR
4.0 PRODUCTION PLAN
The operation needs high quality service. It will also ensure effective and efficient
use of management and the resources to achieve the business goals.
Production operation objectives
- To provide services to the customers effectively
- To achieve high level of resources
- To attract more customers
- To provide customers with high quality products
4.1 PRODUCTION OPERATION FACILITIES
In order the business to be run, there are materials and equipment needed for the
business to start, there are funds needed to allocate to meet the requirements. They
are as follows.
Items Number of items Cost per item Total
Computers 3 50,000 150000
photocopier 2 40,000 200,000
stapler 9 500 4,500
Printer 5 250 1,250
TOTAL 255,750
21.
4.2 LABOUR REQUIREMENT PER MONTH
The business will require qualified laborers who will work adequately to achieve
the goals.
The following are labor requirements per month;
Staff Amount No. of Employees Total Amount
Manager 8,000 1 8,000
Security personnel 7,500 1 7,500
Cyber attendants 5,000 1 5,000
Messengers 4,500 3 13,500
Cashier 5,000 1 5,000
TOTAL 39,000
4.3 EXPANSION OVERHEADS
Particulars Amounts
Transport 20,000
Promotion 10,000
Electricity 40,000
marketing 100,000
Miscellaneous 50,000
TOTAL 220,000
4.4 COST OF PRODUCTION
These are the expenses incurred by the business in the production of materials,
labor requirements and expenses.
Particulars Amounts
Materials requirements 255,750
Labor requirements 39,000
Expansion overheads 220,000
TOTAL 514,750
23.
4.5 GOVERNMENT REGULATIONS
The rule of the government is only to ensure that the business has licenses in
order to run well. There is no much regulation affecting the business.
a) Public health requirements
This will be required by the ministry of health, the business environment should be
well conducive for customers and any other people. Conducive environment
enables good human health. All compounds should be cleaned.
24.
CHAPTER FIVE
5.0 FINANCIAL PLAN
New mature standard will have the following objectives;
Striving to gain profit
Aim at having satisfactory return on invested in the business
Aim of gaining profit
5.1 PRE-OPERATIONAL COSTS25.
Before the business starts to operate there is money needed to install facilities.
The table below shows the expenses incurred before starting its operation.
Items Description Amount (Ksh)
1 Machine and equipment 255,750
2 Advertising and promotion 10,000
3 Licenses and permits 25,000
4 Transport 20,000
5 Insurance 30,000
6 Electricity installation 40,000
7 Repair and general fitting 14,000
8 Starting stock 50,000
9 Miscellaneous 50,000
10 Office expenses 15,000
Totals 509,750
5.2 WORKING CAPITAL REQUIREMENT
26.
Working capital for two years
PARTICULARS 1ST YEAR 2ND YEAR
CURRENT ASSERTS
Cash at hand 2,000,000 250,000
Cash at Bank 10,000,000 500,000
Starting Stock 50,000 60,000
Debtors 10,000 -
TOTAL CURRENT ASSERTS 306,000 810,000
CURRENT LIABILITIES
Creditors 20,000 10,000
Other liabilities 15,000 20,000
TOTAL LIABILITIES 35,000 30,000
NET WORKING CAPITAL 271,000 780,000
5.3 PROFOMA CASH FLOW FOR THE FIRST YEAR AS AT 31ST
27.
DECEMBER
PARTICULAR JAN FEB MARCH APRIL MAY JUNE AUG SEP OCT NOV DEC
S
Repair & 2000 2,000 2,000 - - - - - 2,000 2,000 2,000
maintenance
Insurance 30,000 30,000 10,000 10,000 5,000 30,000 - 30,000 20,00 5,000 5,000
0
Electricity bill 40,000 2,500 25,000 1,000 1,000 5,000 10,000 5,000 5,000 5,000 2,000
Pre- 509,750 - - - - - - - - -
operational
expenses
Purchases - - - - - - - - - -
Creditors 20,000 - - - - 10,000 - - - -
Debtors 10,000 - - - 20,00 - - - - -
0
Loan 100,000 - - - - - - - - -
Transport 20,000 15,000 10,000 5,000 7,500 6,000 4,500 3,500 10,00 5,000 11,000
0
License 300 300 300 300 300 300 300 300 300 300 300
Water bill 500 500 500 500 500 500 500 500 500 500 500
Office 15,000 5,000 10,000 5,000 6,000 3,000 2,500 1,500 1,000 500 300
expenses
Wages & 45,000 45,000 45,000 45,000 45,00 45,000 45,000 45,000 45,00 45,000 45,000
Salaries 0 0
5.4 BREAK EVEN LEVEL
28.
i) Fixed Costs
Salaries 540,000
Insurance 360,000
Total 900,000
ii) Variable Cost 29.
Electricity 40,000
Advertisements 10,000
Transport 20,000
Total 70,000
Total contribution = 970,000
30.
APPENDIX I
Petrol station
KIPKAREN ROAD
DIGITAL RIO’S PRINTERS
OUTERING ROAD
KAIBOI KABIYET HIGHWAY
31.
APPENDIX II
