BUSINESS PLAN

TITLE: BELRAZ SMART FASHION ENTERPRISE M3 = 14/15

P.O BOX 32
BUNGOMA.
EMAIL: beletrael@gmail.com

PRESENTED BY: BELET RAEL CHEBET

INDEX NO: 6021011110

CENTER: THE BUNGOMA NATIONAL POLYTECHNIC.

DEPARTMENT: CLOTHING

COURSE: CERTIFICATE IN FASHION DESIGN AND GARMENT MAKING

CENTRE CODE: 602101

PRESENTED TO: KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULLFILLMENT
REQUIREMENT FOR AWARD OF
CERTIFICATE IN FASHION DESIGN AND
GARMENT MAKING.

SUPERVISOR: MADAM WILDAH KHAUYA

SERIES: JULY 2025

DECLARATION.
I hereby declare that this business plan is my original work. And that it has not been presented
for the award of certificate to any institution. .

NAME: BELET RAEL CHEBET

SIGNATURE:

DATE:

SUPERVISOR NAME: Madam Wildah Khauya

SIGNATURE:

DATE:

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ACKNOWLEDGEMENT
I wish to thank my course mates for giving me humble time and materials necessary required
during this particular period of time. I also thank my lecturer Madam Wildah Khauya for her
guidance towards my study and work. I also thank my parents for their financial support.

ii
DEDICATION.
I dedicate this business plan to my beloved parents for their financial support and encouragement
towards achieving my goals and future dreams during my studies.

iii
Table of Contents

DECLARATION. i

ACKNOWLEDGEMENT ii

DEDICATION. iii

CHAPTER ONE 1

1.0 EXECUTIVE SUMMARY 1

CHAPTER TWO 2

2.1 BUSINESS DESCRIPTION 2

2.2 FORM OF OWNERSHIP 2

2.3 BUSINESS LOCATION 2

2.4Type of Ownership 3

2.5 SERVICES 3

2.6 Justification of opportunity 3

2.7 Industry 4

2.8 Goals of Business/Objectives 4

2. 8.1 Goal 4

iii. OPPORTUNITIES 5

iv. THREATS 5

CHAPTER THREE 6

3.0 MARKETING PLAN 6

3.1 Market Size and Growth 6

3.3 Competition 6

Makutano Collection 7

Mvumilivu Collection 7

Vision Fashion and Design Store 7

iv
Weakness 8

3.4 Methods of promotion and advertisement 8

3.5 Pricing Strategy 9

Marginal pricing 9

3.6 Sales tactics 9

3.7 Distribution strategy 10

CHAPTER FOUR 12

4.0 ORGANIZATION AND MANAGEMENT 12

4.1 Management team 12

4.1.1Duties and Responsibilities 12

Job title: owner manager 12

Assistant manager 13

4.2 Other personnel 13

Organization chart 14

4.3 Recruitment, Training and Promotion 15

4.3.1 Recruitment 15

4.3.2 Training 15

4.3.3 Promotion 15

4.4.1 Remuneration 16

4.4 Licenses, permits and by-laws 16

4.5.1 Banking services 16

4.5.2 Insurance services 16

4.5.3 Legal services 16

CHAPTER FIV 17

5. 0 Production/ Operation plan 17

5.1 Production facilities and capacity 18

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5.2 Production strategy 18

5.3 Production process 19

CHAPTER SIX 19

6.0 Financial Plan 19

6.1 Pre-operational expenses 20

BUSINESS REGISTRATION 20

4000 20

6.2 Working capital 20

6.3 Projected Cash flow statement 21

6.5 Balance sheet for Belraz Smart Kids Fashion Enterprise for the year ending December 2024, 2025, 202623

6.6 Break even for Belraz Smart Kids Fashion Enterprise for the ending year 2024, 2025, 2026 23

6.7 Probability Ratios 24

6.8 Desired financing 25

6.9 Proposed capitalization 25

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CHAPTER ONE
1.0 EXECUTIVE SUMMARY

Business description
The sponsor’s business name shall be Belraz Smart Kids Fashion Enterprise. The business is
located in Webuye town along Kakamega Webuye highway
P.O BOX 32
BUNGOMA.

MARKETING PLAN
The business shall have individual institution and industrial customers. The competitors of the
business are within the same locality. An enterprise shall capitalize on their weakness so as to
overpower them. The b business shall apply ways to cope with competitors like credit facilities
advertising in the town.

MARKETING AND ORGANIZATION PLAN

The enterprise shall have employees including owner manager. They perform different duties
and responsibilities to areas of specialization. They earn salary at the end of the month basing on
the duties perfumed and the owner manager is the boss of the business and controls all activities
that takes place in the industry. The business shall have banner on the entry strategies advertising
in town.

PRODUCTION AND OPERATION PLAN

Belraz Smart Kids Fashion Enterprise will have more resources for the business. It will offer
highly quality products for customers. At the end month I will be paid every Monday to
Saturday.

FINANCIAL PLAN
The services of capital will come from my friends, my family members and savings of the
sponsor. Other services of capital will come from bank investments.

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CHAPTER TWO
2.1 BUSINESS DESCRIPTION
The background of the owner business is Belra. . A twenty-three years old.
The business will be dealing with selling of kids cloths.
2.2 FORM OF OWNERSHIP
The name of the business is Belraz Smart Kids Fashion Enterprise, the business will be dealing
with selling of kids clothes and making.

2.3 BUSINESS LOCATION

The business will be located in Bungoma county, Webuye town along the busy Webuye
kakamega highway

BELRAZ SMART KIDS FASHION ENTERPRISE

WEUYE TOWN TO KAKAMEGA

2.4Type of Ownership
The business will be sole proprietorship form of business. It will be a sole proprietorship Kind of
business. The advantage of this form of business proprietorship is that.

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Decision making and implementation is fast and does not have to consult anybody. The owner
will enjoy all the profit alone.

Also the owner will be able to maintain top secrets of the business opportunities.
The disadvantages of this form of ownership is that if the owner falls sick the business will
experience difficulties because the business will not be concluded.
His expansion of the business may be limited by sanity of capital
Also I will bear the risk in case of lose.

2.5 SERVICES
The business is a startup business. The activities that is going on here is selling of kids cloths.
I will be selling all different sizes, colures and materials of goods quality that everyone will like.

2.6 Justification of opportunity

According to the experience that I gained during the training enabled me to enter the business
with confidence and be sure to come out with a big knowledge that I acquire d in the business. I
ensured the customers are served well at affordable prices.
They will provide employment in the community around the area.
I will ensure that there is enough material and equipment in the industry so that I will not lose
my customers to competitors. The business will utilize resources in the area.

2.7 Industry
The collection will be having all kind if clothes and it will involves production of clothes
services.

2.8 Goals of Business/Objectives

2. 8.1 Goal
a) _To provide goods and services to the customers.

b) To ensure rapid growth of the business.

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2, 8.2 Objectives

To ensure at most 100% of customers are satisfied with the services i8 will offer to them

To apply more knowledge during learning period

To create job opportunity for growth

To achieve financial independence in that three years from time it shall start.

2.9 Entry and growth strategy

Posture and notice will be distributed at the entry. This will grow by skilled lab our to the
customers about the learned sells men use different marketing mix.

2.9.1 Entry plans (Road shows)

Offering discounts to the customers they will enjoy other profit.

Posters and mouth communication where I will be meeting a group of people and talk about

The products and services.

The business shall organize seminar in different region about its product and services. A

2.9.2 The Growth strategy.

The proposed business will aim to grow larger in some years to come by opening up more
branches at various places at places within the same locality and nearby towns

Carrying out SWOT analysis

1. STRENGHT
a. Have entrepreneurial skills
b. Good infrastructure, electricity
c. High security and secure environment
ii. WEAKNESS

a. Insufficient funds to increase quality of product

b. Increase financial status

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iii. OPPORTUNITIES
a Opening up more branches within the locality

b Increasing number of employees

c Borrow finance for better development

iv. THREATS
a. Competition from other companies that supply same commodity
b. Government policies for example high taxation issuing of trading licenses.

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CHAPTER THREE
3.0 MARKETING PLAN
The major target customers of this business are the residence who live around the town or area.

This is due to high demand for the product that exists around the place and merchandising

activities of the middleman in that business.

The promotion of the business products will be through the following:

 Free samples
 Demonstrations
 Discounting
The above mentioned promotional too it will enable the business to secure a large market share
and increase the share and the volume of sale fringe services are after sale service like transport
demonstration and will be used to inform or educate the customers on how to use the products on
issue of warranty will create the confidence of the customers in the buyer.

3.1 Market Size and Growth

The business will operate under the manufacturing industry. This is because it will be required to
comply with all the regulations required by the low of country in order to carry out its operation.

The business will start operating in the two years and it will as a partnership and then grow to a
public limited company. If the circumstance will face the business as expected.

The business will grow by four percent units and the diversification where by the branches of the
business will be growing by two percent each year.

3.3 Competition
Competitors are the people running some business of the sponsor. The factors that contributed to
their success is good transport and communication customers can buy goods in large quantity. I
will make connection and advertise my business. I will be selling at cheaper price all sizes in
terms of assets. The sponsor will sell the products in large quantities and large quality strength
and weakness to the competitors.

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Makutano Collection
Strength

It’s started its operation long this is wide.

Because of employees. It’s well-equipped and build

Weakness

It needs more capital to get fabric is a bite expensive

It is restricted to kids wear collection through the years.

Mvumilivu Collection
It is limited to accessories alone in that it has no fabric to sell so being much involved in
accessories, leads to high competition.

Strengths

The business has sufficient workers

The business is being countered accessories alone

Weakness

Customers would like to match kids cloths with the accessories but Mvumilivu accessories has
no hence low sales.

It has poor public relationship with its customers.

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Vision Fashion and Design Store
Strengths

It is well located

Employees have good public relation

The owners has technical skills

Employees have undergone training hence high quality product

Weakness
The business is now in the fields

It has few employees

The sponsor lack enough capital to run the business.

This is the plan to capitalize on the weakness of the competitors.

Mvumilivu Makutano Adhiambo’s

Assets 200,000 100,000 200,000
Volume 400,000 500,000 30,000
Market 400,000 500,000 200,000
Shares 1200,000 1200,000 1200,000
Profit Plan 80,000 100,000 60,000
No. of employees 3 4 2

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3.4 Methods of promotion and advertisement
The business will use the following channels to achieve its goals.

a) Zero level channel

b) One level channel
c) Two level channel
Processor consumer

Processor retailing consumers

Processor whole selling retailing consumers

These channels will enable the business to meet the demands of both customers and business
itself.

Whole selling

This is the business that will be selling the product in bulky. This channel will enable the
business work of breaking the bulk

Retailing

This channel of distribution will help the business in breaking the bilk and link the business to
various customers.

Selling direct to customers

This channel will enable the business to have a direct contacts with the customers and it will be
the appropriate to the business in order to determine the desire and profitability of the customers.

3.5 Pricing Strategy

The pricing of the product will depend on the channel of distribution, cost of processing and the
quality purchase.

The method of pricing will include:

 Competitive pricing
 Discounting
 Marginal pricing

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Competitive pricing

The method of pricing will highly depend on the competitor’s price i.e. charge slighting lower
than the competitors price to source more sales and at the same time keeping watch on cost and
profit.

Discounting pricing

This will involve providing discounts to customers and will favor the high purchasing power.

Marginal pricing
This method of pricing will involve taking into account all the direct or prime costs involved
processing of the product and then charge the customer just slightly higher the prime cost.

3.6 Sales tactics

These are the selling procedure that the business will develop to help in marketing namely:

a) Cash sales
b) Credit sales
c) Windows display
d) Discount selling
e) Cash sales
The method of sale will be used to consent most if the product into cash.

Credit sales

This method will be used only to the customers who will be potentially liable to the business
those who use credit worthiness with the business will be at a low rate.

Window display

This method of selling will be used to maintain customer’s faithfulness with the business and it
will be used in consideration with the amount of produce bought by the customers.

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3.7 Distribution strategy
The business will market its product through personal selling advertising and other promotion.

These method will be intended to help in sourcing a large market share for the product.

Advertising strategy will include;

1. Electronic media advertisement

This will include advertisement through the radio and television in order to attract more
customers

2. Printing media
This will include the newspaper, magazines and journals to make information accessible to those
who do not frequently access the electronic media

3. Facial boards and bill boards

This will make information accessible to accessible to access travelers and customers

4. Calendars
As a promotion tool will enable to secure a large market demand because people look on
calendars often and this will keep on reminding them about the business.

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CHAPTER FOUR
4.0 ORGANIZATION AND MANAGEMENT
Organization of the business is important as it assist in allowing responsibilities to human
personnel. The business a sole proprietor, the owner manager shall be the top most.

4.1 Management team

1. The owner manager
2. Assistant manager
3. Production officer
4. sellers
5. Watchman
4.1.1Duties and Responsibilities
Job title: owner manager
Section: management

Answerable to: None

Duties

 Decision making
 Business budgeting and controlling
 Employing of staff
 Noticing of workers

Responsibilities

 Ensuring workers are paid in time and the right amount

 Ensuring that there should be adequate provision of capital for the business
 Ensuring that budget business shall be fulfilled

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Qualifications

 Has a diploma in clothing and textile

 Has knowledge in entrepreneurship

Assistant manager
Section: management

Answerable: owner manager

Duties

 Shall the duty of the owner manager in the absence

 Shall be coordinating between the owner manager and other personnel
 Shall assist the owner manager in budgeting and controlling

Responsibilities

 Giving direction to workers

 Acting as a link between the owner manager and the staff
 Paying other employees on behalf of the owner manager

Qualifications

 Shall have a certificate in clothing and textile

 Shall be 18years and above
 Shall have some knowledge on management and designing
 Shall always be neat and have good public relation

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4.2 Other personnel
Title No. Qualifications Duties
Accountant 1 R.com(pack) Budgeting financial
reports.
Paying of sales
Sales representative 2 KCSE (CT) diploma Distribution of
in sales and products
marketing Sales promotion
Security officer 1 KCSE at least Premises security
experienced

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Organization chart

OWNER MANAGER

ASSISTANT MANAGER

PRODUCTION OFFICER
SALES OFFICER

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SELLER 1 SELLER 2 WATCHMAN
4.3 Recruitment, Training and Promotion
4.3.1 Recruitment
In the process of finding and hiring the best qualified candidates for the job opening in a timely
and cost effective manner.

Produce investors

Receipt of application from interested candidates

Secretory of application received

Writer tests and psychological test of candidates

Find selection interview

Medical examination followed by actual appointment.

4.3.2 Training
The owner will make an agreement for employees to update the especially those majority in
production sections to the employees on various jobs.

The employees are also going to be encouraged and assistance to attend full time training in any
organized institution which provide relevant training and also to attend the seminar so as that to
improve their skills and knowledge.

4.3.3 Promotion
The workers will get promotion if he/she meets the equipment of the certain job such
requirements are like hardworking and good conduct and also being faithful. Any avenue will be
product for open communication so that each employee can measure his success and connect his
inadequateness.

The employees recorded to the work allocation to them when each individual will be paid
according to the work performance.

Employees shall also be provided with houses after four years of operation when has become
stable.

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 4.4.1 Remuneration
To earn drawings of up to and not exceeding ksh. 10,000

TITLE No. Monthly pay Allowance Total

Owner manager 1 40000 20000 60000
Production manager 1 3000 150000 45000
Marketing manager 1 25000 25000 50000
Security officer 1 5000 3000 8000

Incentives

The sponsor will provide lunch for incentives, airtime and also overtime allowance will be
provided.

4.4 Licenses, permits and by-laws

Any legal activities

Have valid legal business license from the ministry of the local government. Also the business
being the providers of consumable products.

Therefore, 100 will be the ministry of health and 2000 for municipal council respectively. The
total cost will 200 per year as the permit and licensed will be renewed on yearly basis.

4.5.1 Banking services

The business shall be able to open its own accounts with cooperatives in Busia. It will be able to
make its financial transaction by depositing its cash and with drawing the same from the bank
when required.

4.5.2 Insurance services

These will be highly needed for the purpose of requiring communication flows smoothly and in
the good terms between the business and the client manager and the employee. The insurance
will be for my business it will cost ten thousand per month.

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4.5.3 Legal services
The enterprise will be a sole proprietorship form of business and the ownership will rested if the
business and the ownership will be reused.

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CHAPTER FIVE
5. 0 Production/ Operation plan
The proposed business shall be equipped with the following tools:

1. Scissors
2. Tape measure
3. Rulers and French curves
4. Table
5. Sewing machine
6. Iron box

7. Scam riper
Equipment

Machinery Quality Unit cost

Embroiling 3 100000
Overlock 2 140000
Kneating machine 11 300000
Button machine 4 120000
Button hole machine 5 130000

Repairs and maintenance shall be done yearly

5.1 Production facilities and capacity

Item Quality Cost Capacity
Office Room 20000 5 office personnel
Store 2 room 40000 1 tone of tools
Pick up 1 200000 Cc 18.000
Electricity 3 phase 30000 1000 kw

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5.2 Production strategy
Belraz Smart Kids Fashion Enterprise shall serve customers six days in a week.

The kind of method will use direct method.

Direct cost production

Item Quality per Cost per Total cost Cost per month Cost per
weeks unit ksh year
Felbric 20 rolls 80 1600 76800
Buttons 100 20 3000 24000
Threads 150 5 200 144000
Zippers 200 10 200 22000
Poess stanel 250 6 1500 24000
Concers 120 10 1500 24000
Total 10800 40200 195000

5.3 Production process

Since the business is rented to service to the customer, there will be definite way in which
customer will be served to ensure best results.

Stage 1

The sponsor will ensure that no machine or item of plant is given a job and number recorded.
The job will be given to the foremen and the work done written

Stage 2

Workers will perform work written on the job card.

Their names will be written down or on the job work when work is finished. The foreman will
inspect the plan and the problem is rectified.

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CHAPTER SIX
6.0 Financial Plan
The proposed business will keep records of the financial plan including, the pre-operational
expenses, the working capital, income statement and statement of affairs.

6.1 Pre-operational expenses

The proposed business keeps the records of all the expenses incurred as soon as it commences
the business operation.

ITEMS COST (KSH)

Business Registration 4000

Post Office Box rental 1000
Telephone 1000
License & permits 4000
Electricity 1000
Water 500
Advertisement & promotion 1000
Equipment 41,700
Stock 330,000
Insurance 20,000
Rent 500
Miscellaneous 3000
TOTAL 412200

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 6.2 Working capital
This part shows all the records of the business movement in working capital as shown by its
current assets and current liabilities.

YEARS 2019 2020 2021

CURRENT ASSETS
Cash at Hand 40000 822000 6400
Cash at Bank 600000 550000 80000
Debtors 1000 2500 4000
Stock 300000 450000 570000
TOTAL CURRENT LIABILITIES 75000 1073500 1157000
Creditors 2000 3500 3000
Bank Loan 60000 40000 40000
TOTAL CURRENT LIABILITY 1000 32500 43000
WORKING CAPITAL (CA-CL) 1868100 2974000 1903400

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6.3 Projected Cash flow statement
Belraz Smart Kids Fashion Enterprise for the year ending 2025

The proposed business also keeps the records showing the total cash inflows to the company and
the total cost out flows, in order to project the amount of net cash in the business.

Item Jan Feb Marc April May June July Aug Sep Oct Nov Dec
Cash flow 20000 - - - - - - - - - - -
0
Opening 21600 3150 3150 4000 4000 2000 2000 3150 4500 4700 66000 6700
cash 00 00 00 00 00 00 00 00 00 00 0 00
Debtors 75000 7000 7500 1000 1000 1110 1110 1200 1250 1250 13500 1370
0 0 00 00 00 00 00 00 00 0 00
Sales 20000 2000 2000 1500 1500 1500 2000 2150 2150 2150 20050 2005
0 00 00 00 00 00 00 00 00 00 0 00
Purchases 95000 9500 9500 9500 9500 1150 1150 1155 1500 1500 15000 1500
0 0 0 0 00 00 00 00 00 0 00
License 35000 - - - - - - - - - - -
Electricity 500 500 500 500 600 650 700 700 600 650 700 500
Advertisem 3500 2500 2500 2500 2500 2500 3000 3500 3500 4000 4000 4500
ent
Salary 60000 6600 6700 5000 6700 6070 4000 8000 8000 9000 12000 5000
0 00 00 00 00 00 00 00 00 00 00 00
Loan 10000 1000 1000 1000 1000 9000 1000 1500 1500 1550 19500 2000
interest 0 00 00 00 00 0 00 00 00 00 0 00
Water 1000 1000 1000 1000 1000 700 700 750 750 800 850 1200
Transport 2500 2500 2500 2500 2500 2000 3000 3000 3000 3500 4000 5000
Credits 95000 9500 9500 9500 1000 9000 9000 9500 1000 1200 12500 1300
0 0 0 00 0 00 0 00 00 0 00

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 6.5 Balance sheet for Belraz Smart Kids Fashion Enterprise for the year ending December 2024,
2025, 2026

PARTICULARS 2025 2026 2027

Fixed assets
Machine and equipment 24700 24700 35000
Furniture and fittings 17000 17000 25000
Total fixed assets 41700 41700 60000
Current assets
Cash on hand 69300 91650 89400
Cash at bank 580000 1010000 1700000
Stock 330000 363000 3993000
Debtors 1000 17000 12000
Total assets (net assets) 1022000 1523350 2260700
Financed by
Equity capital 446925 1071277 1638012
Net profits 501075 418072 606687
Bank loan 72000 24000
Liabilities
Creditors
Total liabilities 102200 1523350 2260700

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 6.6 Break even for Belraz Smart Kids Fashion Enterprise for the ending year 2025, 2026, 2027

Fixed costs 2024 2025 2026

Rent 60000 60000 60000
Salary & wages 330000 333000 360000
Insurance 20000 20000 20000
Interest on loan 4200 7200 3600
License and permit 4000 4000 4000
TOTAL 418200 421200 447600
Variable costs
Purchase 589500 743000 846000
Electricity 10000 11400 11800
Water 5700 9000 9000
Telephone 13100 10800 10800
Advertisement & promotions 7000 7600 4400
Postage 4800 5250 5250
Stationery 3200 640 6400
Renovation 1000 1500 2000
Miscellaneous 662300 826950 928650

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 PARTICULARS 2025 2026 2027
BREAK EVEN fixed 418,200 421200 447600
cost 662300 1-826950 928650
Variable cost 1670000 1740000 2.09000
Sales 418200 421200 = 447600
(1-0.39569) (1-0.47526) (1.044433)
418200 =421200 447600
0.60341 0.52474 0.55567
=ksh 693061 =ksh 802683 =ksh 805514

6.7 Probability Ratios

Ratio type FORMULA 2024 2025 2026
Gross profit Gross profit 1080500* 100% 997000*100% 1244000*100%
*100% 1670000 174000 2090000
Total sales 64% 57% 59%
Return on Net profit after 501*100% 565627.5*100% 606,687.50*100%
equity tax *100% 496925 1071277.50 1638012.50
Total sales 112% 52% 37%
Return on Net profit after 501075*100% 565627.5*100% 606,687.50*100%
investment tax*100% 1022000 1071277.50 22607000
Total investment 49% 37% 26%

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6.8 Desired financing
The desire financing for the proposed business will be as per the table below

ITEM AMOUNT
Preoperational cost 140000
Working capital 60000
TOTAL 20000

6.9 Proposed capitalization

ITEM AMOUNT
Owners contribution 50000
Borrowing from friends 50000
Family contribution 50000
Bank loan 50000
TOTAL 200000
INVESTMENTS

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