EXECUTIVE SUMMARY

1.0 BUSINESS DESCRIPTION

The proposed business will be owned by fetus wsmbua.ie will be loactd at mlolongo.it will be sole

proprietor type of business.

2.0MARKET PLAN

The proposed business investigated a market research and sought analysis to determine appropriate

distribution of sales. the proposed business will advertise its products though magazines and online.

3.0OGANIZATION MANAGEMENT

The proposed business will have two employees who will be selling the products. Their salaries and

wages will be indicated.

4.0 PRODUCTION PLAN

Proposed business will have equipment’s required for its prosperity. Production strategies will be found in

chapter four will be used to produce remarkable products.

5.0 FINANCIAL PLAN

The proposed business will have finance that will be utilized by the business.
CHAPTER ONE

1.1 BUSINESS NAME

The business will operate under the name Festo Fashions.It was chosen from the name of the owner and

it also reflects the kind of products offered in the same business. The clothes and other wearing materials

will be will be of quality and classic not forgetting style. Objectives and each is being held in order for the

business to be stated.

1.2BUSINESS LOCATION

The business will be located at mlolongo maket in mavoko sub-county, easten province of Kenya.it will

be suited at implala building along old Mombasa road opposite kakanya supermarket. The owner found

that this location is suitable because there is very high chances of customers since its near a supermarket

and other neighboring shops. Another reason is because the building is located near the main high way in

terms of infrastructure, therefore it is easy to transport .There is also availability of raw materials which

are cheap and easily available.

Sketch of the business location

gap hill Olympic petrol station

FESTOH
FASHIONS
The owner requires minimum and maximum of ksh 500,000 in order to stat the business. The owner plans

to acquire the cash from savings, loan, finds and family contribution

Loan-200,000

Savings-100,000

Family-100,000

Friends =100,000

Total=ksh 500,000

Business address

The following address is to make good communication between customers and festoh fashions.

Festo fashions

Po box 324

Mlolongo

Tel:073964812

Email:festohfashions@gmail.com

1.3 FOMS OF OWNERSHIP

It will be a sole popietoship.it will be owned by the owner. He will be responsible and will also make

decisions ,takes all the risks in the business, he will also control the business. The owner will manage the

business, he/she will also enjoy all the profits. He will also interact with his/he customers on daily basis

together with the employees where by supervisions of the employees becomes easy and effective.

1.4 TYPE OF BUSINESS

Festoh fashions will be a stat up business and it will deal with tertiary level materials. The business

intends to diversify he business by variety of services and products such as clothes, shoes, belts, hats,

caps and others.

1.5 PRODUCTS AND SERVICES

Products offered will be ready made and will be of different types and styles. When it comes to services,

where customers approach the shops, they will always be ushered in by sales ladies and men and

directed to where different products are kept. After a customer is through with his /he choices, is directed

to the counter for payments, then his/he luggage is well packed for him/he of ready transport. The

customer then leaves at his /him pleasure. The owner also offers after sales discounts to customers who

buys products worth ksh 7000 and above.

Other benefits customers will obtain are;

The business will offer reasonable prices to its products for easy purchase

Products will also be of high quality and classic.

No delay will be encountered

Products will be readily available

Future developments

The future plan of the business is that it will open branches in other towns to avoid operating only in

mlolongo. The business also looks forward to creating job opportunities to the youth in order to facilitate

their living standards .The business also looks forward to making more profits from the business.

1.6 JUSTIFICATION OF OPPORTUNITY

Decision to stat this business came up after research and observation of the business market. When it

comes to market, the research shows that people handling the same business did not off quality goods yet
customers are available and needs quality products. Although there is competition in the town, owner

plans to offer quality goods yet customers are available and needs quality products. Although there is a

competition in the town, owner plans to offer quality goods and classic and make the prices affordable for

many.

1.7 INDUSTRY

The shop will deal with tertiary level goods which are already made. The owner will be ordering the

products directly from the manufacturer to be delivered to the shop for him/he sell to his /her customers.

The owner will also import products from outside the county depending on quality, classic and style. This

will attract more customers to the business for more profit.

1.8 BUSINESS GOALS AND OBJECTIVES

The business wishes to equip itself with the necessary equipment that will facilitate to capture a range of

market share which will facilitate it own customers, the owner and also the employees.

The business will also look forward to making enough profit for the owner which will make easy

payments of the employees.

The business also looks forward to making enough profit for the owner which will make easy payments

of employees. The business also looks forward to avoid losses and other mistakes by the employees of the

owner.

The business also looks forward to purchasing its own land and build its shop to avoid paying rent.

payment is very expensive so the business wishes to avoid that.

1.9 GROWTH AND ENTRY

On entry strategies, the owner shall offer fee offers on the first day of the market .This is a way of

attracting customers to the business. Whne it comes to growth, the owner is planning to employ quality

people who are able to handle the products and also relate well with the customers.

The owner plans to deal with products of both kids and adults in order to give him room for everyone to

enjoy the services.

CHAPTER TWO

2.1 MARKETING PLAN

In order to have full exposure in the maket, the owner wills use several means which will help him

understand the market. The owner has done several surveys and research will help him understand the

market. The owner has done several surveys and research of market and identified their competitors and

their weaknesses.

2.1.0MARKET GOALS

Increase market share which will help achieve some business plan goals

To ensue continuous flow of goods

To make sue goods are of high quality

To ensure prices are affordable

Capitalize on competitors weakness so as to succeed.

2.11 CUSTOMERS

The business will have a wide range of customers of all ages and levels of finances. This is because the

business looks forward to target all ages from childen, youth and also the adults. The business intends to

deal and offer the best and stylish products for both children and youths.

Geographical area to cover.

The area is in a flat region and all the roads going to that area are tarmacked about 16km from the

business site.

Religion

All the residents in the location targeted by festoh fashions are Christians. All ages such as men, women

and children will be comfortable with the goods.

Characteristics of customers

Most customers in the area are businessmen.

They have average income to buy the products.

They have friends who can lend the cash to buy the products

Some have kiosks like women where they earn income to buy the products.

Performance

Customs will be motivated by good advertisement and poster, free offer and good business to custome

relationships.

2.2MAJET SHARE

The business aims to capture a market share of 20% within the entry time of duration which will help in

obtaining objectives s to set in the period of 2 years.

2.3 COMPETITION

The business will have competitors who has been established for about years and they have established

customers.

These competitors include;

Shop 1000 fashions

Kairi wears

Kings and queens best wear

Gucci collection shop this will be a stiff competition since most of the competitors deal with similar

products and also they have been in the game for quite some time.

Competition analysis

competitor Strength weakness Opportunity

Shop 1000 fashions Several years of Far from the main Produce quality

operations. market poducts

Established customers
Kairi wears Low production Not well established Fair pricing
Gucci collections Established customers Poor products Skilled labor and

Established prices technology

Kings and queens wear Several years of Poor quality goods Skilled labor

operations Technology

Fair pricing

2.4METHODS OF PROMOTION AND ADVERTISEMENT TO TACT AND MAINTAIN

CUSTOMERS

By promoting and advertising, it creates awareness so that the customer knows more about the product

and service offered.

This will increase the sales as the number by of customers increase.

Potion methods

The business which is festoh fashions will use a wide-angle of promotion designed to stimulate market

responses

Some are;
Fee product samples

Special offers on sale

Also extra services to be offed.

Methods of advertisement

These will inform about festoh fashions which will help in achieving some of the business goals.

Posters

These shall contain name, contents of the business, directions and the market.

Business cards

These will contain name and products of festo fashions

SALES PERSON

These people will be used as a tool for advertising of products and services this form of advertising is fee.

2.5PRICNG POLICY

The following pricing policies will be used to determine prices of festoh fashions products;

Penetrative price

Will be used by the business to penetrate in the market. These will be the first pieces to familiarize with

the customers.

This will be offered for short period of about a month and a half.1

Cost oriented pricing

The owner will price products according to the cost of producing them.th business will ensure fair and

cheap prices in order to increase sales.

2.6 SALES TACTICS

The business will offer a discount of 2.5% price for goods who 250 an above .Free samples, calendars

will be given to customers and also chats who will buy products worth ksh 300 hence attracting

customers.

2.7 distribution strategy

Methods of distribution will be applied to ensure that goods each customers on time, safe and also in good

conditions.

Goods shall be packed in delivery bags so that the distribution is in good condition.

Mode of transport

Goods shall be transported by means of the road.

CHAPTER THREE

3.0ORGANIZATION AND MANAGEMENT

Organization helps the management in bringing policies. Management is the section and control over the

various activities for the attainment of objectives keyed by the administration.

3.1 MANAGER

Business manager

The business will be owned and managed by Festus Munywoki who is 20 years of age currently

undergoing certificate in information Science in Thika technical training institute.

Duties and Responsibilities

Making decisions in all situations involved in all functions of management.

The manager must plan, organize, motivate and control; staff and direct all business activities.
Duties of the manage

Keep co-operation among all the staff members so as to ensure an effective output.

Maintain discipline and keep control of the employees of various sections.

Ensuing all staff members are paid don time.

Suggest new ideas.

Guiding and training for all staffs so that they can attain high skills.

Salary and benefits

The management will be earning ksh 20,000

Other incentives and privileges

The manage will enjoy incentives such as

Overtime payment

Parties

Tea

3.2 OTHER PERSONNEL’S

Festoh fashions will have three employees

Manage1: 1

Sales people: 2

Qualifications of the sales people

Compute literate

Certificate in marketing

Form four levels

Good communication skills

Duties of sales people

Marketing the business

Selling goods for festoh fashions

Sallies = 15,000 each.

3.3 RECRUITMENT, TRAINING AND PROMOTION

RECRUITMENT

Staff recruitment is the process of searching for prospective employees and stimulating them to apply for

a job in an organization

The business will undergo the following process of recruitment

Identification of a vacant post

This will be identified by the manager

Advertisement of the vacant post

This will be done by use of public notice boards

It will take the following format

Vacant post

Qualifications
Responsibilities

Contacts

Interviewing

The organization will form an interview panel that will judge and obtain the preferred qualified personnel.

Orientation

The appointee after accepting tem and conditions of employment by sign in a copy of appointments form

will be directed to the manager who will perform orientation.

Training

Is the process which proprietor will upgrade the skills of the workers by applying different methods of

training.

Seminars

The staff will attend business seminars when they will gain different skills and ides.

Promotion

Process of identifying staff members who qualify to higher position in the organization. Promotion will

only be issued to the most qualified to a high employees.

Promotion will be done according to the qualification, experience, merits and loyalty.

3.3 REMUNERATION AND INCENTIVES

Enumeration is the process of paying employees according to their performance. festoh fashions is

expecting to always gain high profits every month at a high rate. Therefore is expecting to always gain

high profits every month.

This will help in motivating them and encouraging them to perform their best.
Incentives

The proprietor will motivate his employees by giving them overtime payment and even tea to encourage

ages of members for improvement of quality and effectiveness in their wok.

Overtime

Staff members who work overtime will be paid per hour which will be sh100.

Parties and tea

This will be offered in order to give the workers a break from work. This will help them best their mode

and put more effort in their work. Parties will enable workers discuss personnel mattes through their in an

and also discuss business relationships.

LEGAL REQUIREMENTS

TRADE LICENSES

The business will require license from county council at ksh 2000

PERMITS

Health/medical permits will be bought from athi-river level five hospital. All staff members are expected

to undergo medical tests.

The permits and the license are expected to renewed yearly before expiring.

3.5 OTHER SUPPORT SERVICES

The business will open an account to deposit money especially profits for late use.

The business shall wok had in hand with bank so as to seek terms of funds and money deposits.

Thee will also be co-operation with and shoes so that it may have its own postal codes for one to be able

to send several customers for good services.

CHAPTER FOUR

OPERATIONAL/PRODUCTION PLAN

4.1 PRODUCTION FACILITIES AND CAPACITY

4.2 PRODUCTION PROCESS

Production process will involve the following;

By becoming the customer’

This will be by taking he/he around the shop exploiting details about the materials that are available.

Knowing and understanding the need of the customer.

The customer will spit out his/her satisfaction for them to get the morale of visiting the shop more and

more times.

Extra services will be offered by the customers.

External factors that might affect operation process.

Delay of product materials from production companies which my lead to customers shopping from other

shops.

Lack of co-operation with the processing companies and other shops

Low pricing of materials in other competitive business o shops are required and in good time.

4.3 OPERATION STRATEGY

Operation for the running of services in this business shall highly be considered in deed to achieve the

goals of the business.

Which are; expand the business to other place and different parts of the county.

Marketing the products to targeted customers for wised knowing.

Promoting high prices in terms of internet and technology.

The manager will ensue e has to get advising companies and also personnel. The manage will also make

that sure that he uses the right means after advisement to each his target customers.

The manager will also ensue that his goods are of good quality for customers.

He will also make sure customers are treated in a good manner and given each and every detail about the

products.

4.4EGULATIONS AFFECTING OPERATIONS

When it comes to mattes of health in the business area, the manager will ensure that the place is kept

clean by the workers by washing and dusting every cone of the house.

The manage will also ensure that the workers themselves are clean and well groomed. Once compliance

and approval of the business place though county government of the area, The manager will take full

responsibility of the business. The money set aside for the renewal of the business license yearly shall be

paid as the compliance and approval of the business.

The manager shall ensure that safety are followed in the business thus ensuring that the place is well

highlighted installation of fie extinguishes and also well management of goods to ensure that the

customer move smoothly as they view the goods. He will also ensure that there is enough space for the

customers to avoid oncoming and accidents.

CHAPTER FIVE

FINANCIAL PLAN

The business shall run under financial aspects following the potential of the business manager.
5.1 PRE- OPERATIONAL COSTS

Following the materials required by the manage in the business, the manager summarized some of the

materials which will guide him in running of the business.

No Item Amount
1 rent 30000
2 Enovation 7000
3 Installation cost 20000
4 Electricity 5000
5 Water deposits 5000
6 licenses 2000
Total 69000

5.2 WORKING CAPITAL

Working capital=current asset-current liabilities

Item 2022 2023 2024

Current asset 200,000 300,000 350,000
Stock 100,000 200,000 210,000
Cash in hand 100,000 200,000 205,000
Debtors 100,00 200,000 260,000
Pre-paid expenses 100,000 200,00 200,000
Total 600,000 1100,000 1171000

5.3LIABILITIES

Item 2022 2023 2024

Cunt liabilities 50,000 30,000 10,000
Bank overdraft 70,000 50,000 30,000
Creditors 20,000 5,000 3000
Unpaid expenses 140,000 85,000 43000
Total current liabilities 440,000 1015000 1128000

5.4POFOMA BALANCE SHEET

Item 2022 2023 2024

Moto vehicle 300,000 350,000 450,000
Personnel 70000 78,000 85,000
Total fixed asset 370,000 428000 535,000
Current asset
Debtors 60,000 80,000 100,000
Stock 50,000 100,000 150,000
Cash at bank 100,000 150,000 200,000
Cash at hand 40,000 60,000 80,000
Prepaid expenses 5,000 10,000 15,000
Total current asset 255,000 400,000 454,000
Current liability
Creditors 60,000 40,000 20,000
Bank overdraft 80,000 60,000 40,000
Unpaid expenses 4,000 3000 2000
Total current liability 144,000 103000 62,000
Capital employed 769,000 931000 1142000
Finance by
Capital 500,000 500,000 500,000
Net profit 200,000 350,000
Dawing 50,000 0 0
Total 550,000 700,000 400,000
 5.5PROJECTED INCOME STATEMENT

Item Jan Feb Ma Apl May Jun Jul Aug Sep Oct Nov Dec Total
Cashflow
Sales 10000 50000 50000 15000 10000 10000 1500000 10000 10000 15000 20000 25000 1500000

0 0 0 0 0 0 0 0
Collection from

debtors
Total cash 10000 50000 50000 16000 10000 10000 100000 15000 13000 10000 15000 20000 1500000

inflow 0 0 0 0 0 0 0 0
Total cash

outflow
Water expenses 100 50 50 200 150 50 50 100 100 50 50 50 1000
Salaries 70000 70000 70000 70000 70000 70000 70000 70000 70000 70000 70000 70000 840000
Licenses 2000 2000
rent 3300 3300 3300 3300 3300 3300 3300 3300 3300 3300 3300 3300 39600
Insurance 2000 2000
Electricity 500 600 500 550 650 450 550 500 450 600 500 550 6400
Total cash 27790 17395 17365 48405 27410 27380 373900 33390 27385 37385 37395 47358 4061000

outflow 0 0 0 0 0 0 0 0 0 0 0
Net cash flow 52350 22220 27600 16430 30050 32150 166100 50200 34100 23200 10565 75565 886570

0 0 0
Beak even analysis
At BEP

Sales-fixed cost = variable cost

Fixe cost table

item Amount
Salaries 170,000
rent 40,000
License 2,000
Insurance 2,000
total 214,000

i)1500,000 -=214 + variable cost

variable cost=1500,000-214000

=1286000

ii)contribution as % of sales=contribution x 100/sales

=1286 000 x 100/1500000

86%

iii)contribution pe unit=fixed cost/contibutin214000/1286000

=0.16 pe unit.

5.7 profitability ratio

i)net profit after tax x 100/sales

=704340 x 100/1500000

=469.56%

ii)gross profit ratio x 100/sales

1000000x 100/1500000

=66.66%

5.8 DESIRED FINANCING

Item Amount
Pre-operational 69000
Working capital 600000
Fixed asset 370000
Fixed cost 214000
total 1253000

5.9 PROPOSED CAPITALIZATION

Item Cost
Owner 100,000
Donations 200,000
Bank loan 200,000
total 500,000

5.3PEFOMA INCOME STATEMENT

Item 2022 2023 2024

Sales 1500,000 2400,000 3300,000
Cost of sales 500,000 750,000 1000000
Gross profit 1000,000 1500,000 2000000
Expenses
rent 40,000 40,000 40,000
Salaries 170,000 170,000 170,000
Electricity 6400,1000 6400 64,00
Water expenses 217,400 1000 1000
Total expenses 4217400 217400
Net profit 782,600
Provision for tax(10%) 782600 128260 1782600
Net profit after tax 704340 1154340 1604340