TITLE : BUSINESS PLAN

BUSINESS NAME : JARSO G SURVEY FIRM

PRESENTED BY : JULIUS JARSO GUYO

INDEX NUMBER : 3271040138

COURSE : CERTIFICATE IN LAND SURVEY

INSTITUTION : KARUMO TECHNICAL

TRANING INSTITUTE
PRESENTED TO : KENYA NATIONAL
EXAMINATION COUNCIL
FOR THE AWARD OF
CRAFT CERTIFICATE IN
LAND SURVEY

SERIES : NOVEMBER 2024

i
DECLARATION
I declare that this is my own original work and that it has not been presented before to any examining body
for the purpose of examination and award. This work is presented to the Kenya National Examination
Council as partial requirement for the award of Certificate in Land Survey.

STUDENT’S NAME: JULIUS JARSO GUYO

INDEX NUMBER: 3271040138

SIGNATURE: ……………………………………………

DATE: ……………………………………………………..

SUPERVISOR’S DECLARATION

I hereby declare that the Preparation and Presentation of the Business plan Were Supervised in Accordance
with the Guidelines on Supervision Laid down by Kenya National Examination Council.

SUPERVISOR’S NAME: HILDA KOECH

SIGNATURE: ……………………………………………….

DATE: ……………………………………………………….

ii
DEDICATION
I dedicate this project to my loving father Mr. and Mrs.Guyo for the support they have given me to pursue

education this far.This project is a proof of my hard work and appreciation and may almighty God bless you.

I also dedicate this project to my siblings for the love they have given me.

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ACKNOWLEDGEMENT
I give special thanks to the Almighty God the father for giving me life, strength and knowledge that

significantly helped me in coming up with this project.

I want to acknowledge the help of the school for availing reference materials in the library to enhance

research on the project at hand and for the lecturers for giving a sense of direction on how to go about the

project and proceed and finish with ease.

I also extend my acknowledgement to my friends for the ideas we shared which assisted me in producing

this project and the selfless support of my sister Bore for always believing in what I do.

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CONTENTS
DECLARATION ........................................................................................................................................................... II
DEDICATION ............................................................................................................................................................. III
ACKNOWLEDGEMENT ............................................................................................................................................ IV
EXECUTIVE SUMMARY ....................................................................................................................................... VIII
CHAPTER ONE ............................................................................................................................................................. 1
1.0 BUSINESS DESCRIPTION ..................................................................................................................................... 1
1.1 INTRODUCTION .................................................................................................................................................... 1
1.2 MISSION.................................................................................................................................................................. 1
1.3 FORM OF OWNERSHIP ......................................................................................................................................... 1
1.4 BUSINESS LOCATION .......................................................................................................................................... 2
1.5 PRODUCTS AND SERVICES ................................................................................................................................ 3
1.6 INDUSTRY .............................................................................................................................................................. 4
1.7 JUSTIFICATION OF INDUSTRY .......................................................................................................................... 4
1.8 OBJECTIVES AND GOALS OF THE BUSINESS ................................................................................................. 4
1.8.1SHORT TERM GOAL ........................................................................................................................................... 4
1.8.2 LONG TERM GOAL ............................................................................................................................................ 5
1.9 ENTRY STRATEGY ............................................................................................................................................... 5
1.9.1 GROWTH STRATEGY ........................................................................................................................................ 5
CHAPTER TWO .............................................................................................................................................................. 6
2.0 MARKETING PLAN. ................................................................................................................................................ 6
2.1 INTRODUCTION .................................................................................................................................................... 6
2.2 IMPORTANCE OF MARKETING .......................................................................................................................... 6
2.3 MARKETING ENVIRONMENT ............................................................................................................................ 6
2.4 ETHICS OF MARKETING PRACTICES ............................................................................................................... 6
2.5 ECONOMIC ENVIRONMENT ............................................................................................................................... 7
2.6 CUSTOMER ENVIRONMENT............................................................................................................................... 7
2.6.1 COMPETITORS ENVIRONMENT ...................................................................................................................... 7
2.7 MARKETING STRATEGIES .................................................................................................................................. 8
2.8 MARKET SHARE ................................................................................................................................................... 8
2.8.1 COMPETITION .................................................................................................................................................. 10
2.8.2 COMPETITIVE ADVANTAGE ANALYSIS ..................................................................................................... 10
2.8.3 COPING WITH COMPETITION ....................................................................................................................... 10
2.9 ADVERTISING AND PROMOTION.................................................................................................................... 11
2.9.1 ADVERTISING STRATEGY ............................................................................................................................. 11
2.9.2 PROMOTION STRATEGY ................................................................................................................................ 11
2.9.3 PRICING STRATEGY ........................................................................................................................................ 12
2.9.4 PRICE LIST ........................................................................................................................................................ 12
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2.9.4 SALE TACTIC .................................................................................................................................................... 13
2.9.5 DISTRIBUTION CHANNEL .............................................................................................................................. 13
2.9.6 MEANS OF TRANSPORT ................................................................................................................................. 14
3.0 ORGANIZATIONAL PLAN ................................................................................................................................. 15
3.1 INTRODUCTION .................................................................................................................................................. 15
3.2 ORGANIZATION STRUCTURE .......................................................................................................................... 15
3.3 MANAGING DIRECTOR ..................................................................................................................................... 16
3.4 OTHER PERSONNEL ........................................................................................................................................... 16
3.4 RECRUITMENT, TRAINING AND PROMOTION ............................................................................................. 18
3.5 TRAINING ............................................................................................................................................................. 19
3.6 PROMOTION ........................................................................................................................................................ 19
3.7 REMUNERATIONS AND INCENTIVES............................................................................................................. 19
3.7.1 INCENTIVES ...................................................................................................................................................... 20
3.8 LICENSE, PERMIT AND BY-LAWS ................................................................................................................... 20
3.BY-LAWS ................................................................................................................................................................. 20
3.11SUPPORTIVE SERVICES ................................................................................................................................... 21
CHAPTER FOUR ........................................................................................................................................................ 22
4.0 PRODUCTION/OPERATIONAL PLAN ............................................................................................................... 22
4.1 INTRODUCTION .................................................................................................................................................. 22
4.2 PRODUCTION FACILITIES AND CAPACITIES ............................................................................................... 22
4.3 BUSINESS LAYOUT ............................................................................................................................................ 23
4.4 COST OF PRODUCTION ..................................................................................................................................... 23
4.5 COST OF LABOUR............................................................................................................................................... 24
4.6 OVERHEADS ........................................................................................................................................................ 24
4.7 PRODUCTION PROCESS .................................................................................................................................... 24
4.8 REGULATIONS AFFECTING PRODUCTION ................................................................................................... 25
CHAPTER FIVE .......................................................................................................................................................... 26
5.0 FINANCIAL PLAN ............................................................................................................................................... 26
5.1 INTRODUCTION .................................................................................................................................................. 26
5.2 PRE-OPERATIONS COST .................................................................................................................................... 26
CHAPTER FIVE .......................................................................................................................................................... 27
5.0 FINANCIAL PLAN ............................................................................................................................................... 27
5.1 IMPORTANT ASSUMPTION ............................................................................................................................... 27
5.2 PRE-OPERATIONAL COST ................................................................................................................................. 27
5.3 PROJECTED PROFIT AND LOSS ....................................................................................................................... 27
5.4 ESTIMATING OF WORKING CAPITAL ............................................................................................................ 28
5.5 ESTIMATION OF FIXED ASSETS ...................................................................................................................... 29

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5.6 CASH FLOW STATEMENT FOR YEAR ONE ................................................................................................... 30
5.6.1 CASH FLOW STATEMENT YEAR TWO ........................................................................................................ 32
5.6.2 CASH FLOW STATEMENT YEAR THREE ..................................................................................................... 33
5.7 PROFORMA INCOME STATEMENT ................................................................................................................. 34
5.7.1 PROFORMA INCOME STATEMENT YEAR TWO ......................................................................................... 34
5.7.2 PROFORMA INCOME STATEMENT YEAR THREE ..................................................................................... 35
5.8 THE BALANCE SHEET ....................................................................................................................................... 36
REFERENCES ............................................................................................................................................................. 37

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EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION

The business name is JARSO G SURVEY FIRM is located along Moyale-Isiolo Road at Isiolo market in

isiolo County where it will offer survey works, offering consultancy and also selling and renting out of

survey instruments.

OPPORTUNITY AND ENTRY

The business opportunity will arise from a gap in the market. The business will achieve to cover this gap

through advertising, sales promotion and offer good services and high-quality products to grasp target

clients.

MARKET TARGET

The business target markets are potential clients that are within the area of the business and beyond. As the

business owns 10% market share at the beginning but expects to expand it with time.

COMPETITIVE ADVANTAGE

The business competitive advantage entails the strength and weakness of business itself against competitors

of which the business will use its competitors' weakness to its benefit and help it to rise.

MANAGEMENT TEAM

The business management team comprises of managing director and other personnel who will ensure the

smooth running of operations in the business.

FINANCIAL PLAN

The financial plan of the business portrays performance of the business whether it’s making a profit or loss

through balance sheets and various financial statements.

viii
CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1 INTRODUCTION
JARSO G SURVEY FIRM is the name of the firm. The company will be operating mainly in Isiolo town

due to the improvement of the economy and standards of living in the county. The firm’s aim will be;

provision off land survey services such as topographical survey, cadastral survey, general boundary and

selling of survey instruments e.g.; tapes, scale rules, GPS, total stations etc.

1.2 MISSION
To provide quality product and services in order to be the best survey firm in my county and beyond

1.3 FORM OF OWNERSHIP

JARSO G SURVEY FIRM is a sole proprietorship form of business.

Advantages of Sole Proprietorship form of Business

• There is full ownership since I get to manage the business alone 8without pressure from

management.

• There is no hindrance in implementation of new ideas since am the sole owner.

• One enjoys the profit alone and is able to decide the amount to invest into more business.

• There is high level of confidentiality

• The business is easy to form as very little paper work is needed.

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1.4 BUSINESS LOCATION
Name : JARSO G SURVEY FIRM

Address : P.O.BOX.20890

Telephone : 5645876098

Mobile : +254727082039

Email : guyoj@gmail.com

Business Location Map: ISIOLO TOWN

Business Location Map: MERU

MOTTI PLAZZA ISIOLO

PARLIAMENT

MOYALE NAIROBI ROAD

ISIOLO TOWN

MOHAMMED SURVEY AGNEX SUPERMARKERT

FIRM

BULA PESA ROAD

2
Advantages of location

• Commercial centre – Isiolo is a town which is developing rapidly and whose growth in size is very

fast since there are several businesses being established and many being undertaken.

In addition, there are too many land issues and I believe my firm will attract many clients who would

want their land issues solved.

• Security – security for the business is key and considerable factor which is crucial for the owner,

employees and the assets including the survey instruments. I consider security keenly and that’s why

I will locate it not too far from Isiolo Police Station hence the firm will be protected from access by

unauthorised people.

• Improved infrastructure – the business is located just adjacent to Mwangaza tarmacked road passing

through commercial towns thus transportation is eased and delivery of materials. The location is also

accessible through other major roads which will ensure reliable services.

• Availability of communication network- due to improved technology, the area has developed

communication system that makes it easier to communicate services via the telephone and the

internet.

• Availability of labour- the area has a high population therefore the man power required to run the

business will be easily provided by the locals.

1.5 PRODUCTS AND SERVICES

Products:

The following products will be offered;

• Tapes

• Scale rules

• Total stations/Theodolites

• GPS
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 Services:

The services will be offered;

• Engineering survey

• Cadastral survey

• General boundary

• Sub-division and demarcation of land

1.6 INDUSTRY
With the economic survey information, the business is under civil works.it shows a significant of

performance in relation to 2017 – 2018 data analysis which shows that the civil works sector expands by 5.5

% up from the growth 4.8 % registered in 2017 as for 2018.

1.7 JUSTIFICATION OF INDUSTRY

Having done the research and obtained credible data collected from attached statistical economic survey, I

proved the viability of the business in the industry since the survey data shows a significant increase the

housing sub-sector recorded a growth in the value of the building plans approved and completed building.

the value of plans approved shows a significant increase of 34.2% from Kshs 18.1 billion in 2017 to Ksh

243 billion in 2018.

1.8 OBJECTIVES AND GOALS OF THE BUSINESS

The business aim at achieving both short- and long-term goals in order to 9maximize profit and increase sale

volume.

1.8.1SHORT TERM GOAL

✓ To attract more customers through provision of precise and skilful services offering at affordable

prices, obtain popularity through advertisement s and also to establish a business website within the

first month of operation.

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 ✓ By the end of first six months the business aims at increasing its sales by at least 8% through practice

of good public relations skills.

✓ By the end of the first year the business should be able to employ more skilled and semi-skilled

labourers.

✓ The business aims at increasing the profit margin to 15% within the first year proposed to be

achieved through increase in sales and production.

1.8.2 LONG TERM GOAL

✓ By the end of at least 5 years, the business should be able to open up other branches country wide.

✓ It should also have acquired one track and 2 pick-ups to facilitate the transportation of goods and

services.

✓ The business will also improve its filling system by using digitalised improved and computerized

systems.

1.9 ENTRY STRATEGY

• Advertisements and promotion sales: using of posters to advertise the latest improvement on my

products or new products in the market will create awareness to the general public on the 8latest

products offered.

• Branding on t-shirts and caps: the business will offer free t-shirts and caps to all the customers. The

t-shirts and caps will be branded with the name Mohamed Survey Firm.

1.9.1 GROWTH STRATEGY

The firm will open up other branches country wide so that it can reach a large market.

The business will also embrace modern technology e.g. modern filling to ensure proper record

keeping.

The business will also increase the number of skilled labours to provide and reliable services to the

clients.
5
CHAPTER TWO

2.0 MARKETING PLAN.

2.1 INTRODUCTION
Marketing is a set of activities put in place that directs the flow of goods and services from the producer to

satisfy the consumer and accomplish and objectives of the company to achieve the market.

2.2 IMPORTANCE OF MARKETING

• Creates employment- marketing creates employment to many people. This is achieved in

employment in the business supply and offering services to the customers.

• Sources of income and revenue – marketing is important because it is the only way which the

government generate income and brings profit by buying and selling products.

• It builds company reputation as marketing builds brand name of business

• It creates healthy competition as word spreads out on pricing of products and services which reach

intended potential clients but also reaches other business competing in the same field

• It helps identify strength and weakness of business thus finding ways of improving on weakness.

• Through marketing reveal demand and supply position of the business in the market.

2.3 MARKETING ENVIRONMENT

The business will be located in Isiolo town, Mwangaza road. The location of the venture was chosen due to

good transport network which makes easy accessibility to the premise. Good security and infrastructure thus

the possibility of attracting several potential customers seeking these services and are in demand of the

survey instruments and services.

2.4 ETHICS OF MARKETING PRACTICES

The business will ensure that it offers the best choice products and services to its customers and accorded the

ultimate priority. The business will be operating six days a week with only Sundays excluded.

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2.5 ECONOMIC ENVIRONMENT
Income level

The region largely depends on farming and trading as a way of generating income.

According to the economic outlook 2015 the operationalization of the development budget in the country

has led to further economic growth.

There is a notable enhanced performance and innovations in financial sector in the country, which has

maintained the current growth path in the region.

Distribution of income

This shows how the business income is divided among the groups of individuals, households, social classes

or factors of production to compute an average for comparison purposes.

2.6 CUSTOMER ENVIRONMENT

The customer comprises majorly of land sector i.e. land sellers and private companies who own land. Land

sectors has high income in the business for they generate high profit from buying and selling. People who

are middle class and especially farmers support the business for as much as they have low income, some do

land businesses of purchasing and selling at a profit. This way of business enhances the expansion and

growth of the business in the region.

2.6.1 COMPETITORS ENVIRONMENT

Direct Competition

The business will experience direct competition from ISIOLO SURVEY CENTRE which is located uptown

and deals with survey services but overcharge customers.

Industry Competition

The well-established industry in the region and which is a major challenge is MOTI SURVEY. It is the

biggest but faces a problem of poor workmanship in the offering of its services.

7
Indirect Competition

The general competition in the region is low since the competitors are very few and their weaknesses are

very significant and create a gap to venture into the industry and take over.

2.7 MARKETING STRATEGIES

JARSO G SURVEY FIRM is aiming to be the best business in the country and in the region as well as

enhancing offering of quality services to the clients in order to make more profit.

The advertisement of my services will be done by the owner alone through making door to door adverts,

putting posters as well as doing it through social media like Facebook, WhatsApp etc., so as to promote the

business growth.

Employment of capable and skilled personnel who can welcome clients to the business and receiving them

and introduce modern technology into the business so as to improve the quality of services offered so as to

attract more customers in the business.

Employment of sufficient labour as enough labour force will bring out efficiency in work and will maintain

the high standard of construction and will ensure construction is finished on the time stipulated.

2.8 MARKET SHARE

This is the percentage of the market occupied by the business in relation to other businesses, who are the

competitors of similar trade. The share percentage is to be determined through the following means:

i) Observation: this is done through evaluation, a process that involves assessing the competitors

based on:

a) Assets – The items of economic value owned by the company

b) Customers – The approximate number of people visiting the company

c) Profit margin – These are what boosts their trade including services offered and their quality

d) Sales volume – The range within which their purchases are estimated to fall and an approximate

capacity of their supply.

8
Observation also involves analyzing the manpower and the general work force the competitor has put

in place.

The business after studying the above processes which involves market research and various

inquiries will establish an approximate share after which appropriate action is necessary to be taken

to emerge the ultimate trader in the market.

The pie chart below shows the market share whereby my business will occupy about 40% market

share.

Market Share

13%

40%

22%

25%

KAGUMO SURVEYS 13%

WASO LAND MATTERS 22%

MOTI SURVEYS 25%

MOHAMED SURVEYS 40%

9
2.8.1 COMPETITION
The business faces stiff competition from already well-established businesses. Competing businesses are:

Competitor Address Asset

KAGUMO SURVEYS P.O. Box134-10600 isiolo Skilled workers

WASO LAND MATTERS P.O. Box 15-10600 isiolo Enough equipment

MOTI SURVEYS P.O. Box 1246 isiolo Use of modern technology

2.8.2 COMPETITIVE ADVANTAGE ANALYSIS

Item Competitor Mine

High quality product 4 5

Price 3 4

Equipment 4 5

Services 3 5

Capital 4 3

Asset 4 3

2.8.3 COPING WITH COMPETITION

Public relations as business will offer one on one communication between client and personnel of the

business thus client will feel a sense of personal touch in any transaction.

Competitive pricing as business will set prices that attract clients but still meet the quality of products and

services to be offered.

Training for personnel of the business should be provided at regular basis so as to be able to beat the

competition and enhance their skills.

10
Advance technology should be implementing as business will be kept in the know with the changing trends

in construction.

Advertising and promotion should be applied so as to create awareness and information to reach potential

client thus this will grasp a wider market and increase in number of clients.

Skilled labour should be increased to ensure there is maximum output and work done is efficient and

satisfies client’s needs.

2.9 ADVERTISING AND PROMOTION

2.9.1 ADVERTISING STRATEGY

Advertising is used to make a product and service popularly known in the market.

Media- media chosen to use are billboards, posters, business cards, and branding of business information on

t-shirts, key holders, umbrellas, mugs etc.

Cost- media chosen is affordable as other forms of media are expensive at this time of the business.

Effectiveness of media- the media chosen will attract potential clients and will reach a large number of

people will be keen when they see something new in the market.

2.9.2 PROMOTION STRATEGY

Promotion is used to attract more clients.

Availing gives away like t-shirts, umbrellas, mugs, key-holders that are printed with the services business

information on them after being provided.

Exposing the business through exhibitions where the business showcases the product and services the

business offers and lots more.

11
2.9.3 PRICING STRATEGY
Method of determining price is

Selling price Profit margin

Buying price Value added tax

Cost of production

Factors Considering when coming up with price

❖ Market demand- when the demand for product and service increases the price also increases.

❖ Government policy- taxes put by government increases price of the product and service.

❖ Cost of production- the cost of production dictates price to be quoted for a product and service

cannot be sold at a loss.

❖ Profit Margin- price to be set is according to percentage the business has calculated to earn from sale

of business as profit.

❖ After sale service- as price to be put will put into consideration maintenance of a product and also at

offering advice on quality and service.

2.9.4 PRICE LIST

Services & Quantity Prices (KSh)

Products (selling price)

Cadastral survey 1 acre 40,000

Mutation works 1 acre 12,000

Topographical 1 acre 30,000

survey

consultation 1 person 300

Tapes 1 500

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 Scale rule 1 850

GPS 1 60,000

Theodolite/Total Renting out 2,000 per hour

stations

2.9.4 SALE TACTIC

Direct Sales Tactic

Personal selling- Achievable by offering potential clients our best quality portrayed in the products and

service so as to gain influence over competitors in the market.

Indirect sales tactic

Use of agents- will be achieved by using people employed by the business who will work on behalf of the

business who will be able to reach clients that are in area that are uncharted by our competitors and give

them with the products and services offered.

Credit Facility

Will be achieved as frequent and loyal clients who will be buying our products and services will be able to

purchase products on credit basis thus the business will gain strength over competitors as a good business

and clients

2.9.5 DISTRIBUTION CHANNEL

Direct channel; this will be done by supplying services to customers who are potential by physically meeting

with them or through contact by phone. The clients will be approached in the field by the surveyor alone as

to see the advantage of the services offered

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Also, clients can visit my offices for further consultations or through postal address that I have in the

company.

Indirect Channel; This will be done by the surveyor through agents to the customers. Distribution of services

may be done through internet like Facebook by receiving questions from clients and answering them. Also,

it can be distributed physically through field agents who will approach the clients and giving them the

benefits of the services offered in my company.

2.9.6 MEANS OF TRANSPORT

Transportation is by road as there is access roads near the business and target client will be easily

approached.

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CHAPTER THREE

3.0 ORGANIZATIONAL PLAN

3.1 INTRODUCTION
The business will be run by a number of personnel who are qualified so as to achieve the goals of the

business.

3.2 ORGANIZATION STRUCTURE

General Manager

Accounts Manager

Surveyor

Sales Personnel

Secretary

Watchman

Cleaner

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3.3 MANAGING DIRECTOR
Qualification

❖ Have at least 3 years at managerial post and assigning of duties.

❖ Should be fluent in both Kiswahili and English

❖ Must be mentally and emotionally stable and fast decision maker

❖ Have a certificate in Business Administration.

Duties

❖ Planning; makes important decisions and assigns duties and responsibilities to workers as personnel

are allocated to different work stations and are given work according to post they are in.

❖ Controlling; ensures activities of business run as are supposed to for efficient output as he/she checks

operations of the business on regular basis to ensure smooth flow of work.

❖ Organising; he/she forms a work structure used in managing various activities to avoid as he/she puts

various people in charge to manage various post so as to bring an order in the work structure.

❖ Co-ordination; he/she ensure a good working relationship is maintained among workers as he/she

provides a good conducive working environment which makes workers to work together

harmoniously.

3.4 OTHER PERSONNEL

Personnel Number Qualification Duties

Degree or higher holders in Managing all the finance flow

Accounts manager 1 accounting, finance or any in the company.

other related field.

16
Surveyor 1 Diploma in land surveyor Maintaining survey equipment

Engineering survey with a and repair and will be in

minimum of 2 years in charge of all survey works.

Experience.

Sales manager 1 Should be well trained in Responsible for sales of goods

sales and marketing. Also, and services in the company.

should be fluent in both

Kiswahili and English.

Secretary 1 Must be fluent in both Takes minutes during

English and Swahili. meetings.

Must be a computer literate Directs visitors to appropriate

offices.

Watchman 2 .Should be strong and Ensuring total security.

energetic. Receiving visitors and

.Should be 25 years and customers.

above.

.Should be of sound mind.

.Have a minimum D+ in

KCSE.

Cleaner 1 .Well conversant in Maintaining cleanliness in the

environment hygiene and premise at all times.

conscious in cleanliness.

.Honest and humble.

.Above 18 years in age.

17
3.4 RECRUITMENT, TRAINING AND PROMOTION

Recruitment procedure

This is the process of getting applicants for job vacancies available so that the one who portrays best

qualifications gets the job.

The procedure is as follows;

1. Advertising; the business will advertise vacant positions over media like newspaper, radios and

television to ensure information reaches the public.

2. Application; people interested in post advertising by the business will apply by sending letters to

address of the business or by sending an email to the business email address.

3. Shortlisting; people who applied for posts will be identified so as to choose some of the best who

have higher qualifications than others and experience among other factors.

Criteria;

• Skills; experience will be highly considered

• Qualifications; applicants who will be well qualified will be considered first and put as priority number

one.

• Punctuality; applicants who will come on time for interview will have an added advantage.

4. Interview; this will be done after the shortlisting. The interview will be done on an oral basis where

questions will be asked according to the post that has been applied for and more personal details will

be required of the applicant.

5. Selection; this will be on basis of how an applicant performs in the interview. Age will be considered

as young people will be more efficient.

6. Appointment; the selected applicants will be given the respective job posts they applied for.

7. Acceptance; the applicants who will be appointed to the various post will write a letter of acceptance

to acknowledge they will take the job and submit it.

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 8. Employment; the people appointed will report back to work and be given an orientation of what they

are supposed to do.

3.5 TRAINING
The employees will be introduced to courses which will enhance their skills and thus in the long run add up

in their qualifications.

Advance training will be provided on semi-annually basis where the employees will attend workshops and

seminars which will enhance their view and skills in general.

3.6 PROMOTION
Promotion will be used as a tool to motivate the employees to put more effort in their work and it will be

based on;

a. Experience; the more working years’ experience an employee has the higher the chances for him/her

to be promoted.

b. Qualification; the more qualified an employee is the higher the chances for him/her to be promoted.

c. Merit; how well an employee does his work and how efficient he/she is will be given a chance of

being promoted to a higher post.

3.7 REMUNERATIONS AND INCENTIVES

Personnel No Salary Per Month (kshs) Salary Per

Annum(Kshs)

Accounts Manager 1 15,000 180,0000

Surveyor 1 12,000 144,000

Sales Manager 1 9,000 108,000

Secretary 1 7,000 84,000

Watching 2 8,000 96,000

Cleaner 1 3,000 36,000

TOTAL 7 54,000 648,000

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3.7.1 INCENTIVES

It is a tool that will be used to improve working conditions and boost the morale of employees. They

include;

• Provision of tea. All employees will take tea provided by the business from Monday to Friday.

• Provision of medical. Employees will be insured that in the case of an accident business will take

care of payment and compensation

• Provision of allowances. All employees will be allocated allowances according to the job they do.

3.8 LICENSE, PERMIT AND BY-LAWS

Business licensed-This will be obtained from a legal authority at an amount of kshs 5,500 per year.

Government Trade license-This license will be obtained from the national chamber of commerce at an

amount of ksh 3,700 per year.

Business name license-It will be obtained from the registrar of companies and society at an amount of kshs

3,200 per year.

3.BY-LAWS

Resource compensation act-an employee is liable for compensation for any damage occurring from

accidents in course of employee discharge.

Income Tax (cap. 470)-an act of parliament which provides for taxation of income by an individual to a

business.

Rent Restriction Act- the act regulates land lords/tenants relationship which requires eviction on an increase

of rent in report of delivery.

Employment Act (cap. 226/89)-act of parliament which sets out contracts of service of an employee and

keeping employee records.

20
3.11SUPPORTIVE SERVICES

These are services obtained from the outside by the business which will help in efficient running of

operations.

They include;

a. Banking Services-the business will have an account entitled to it which will not be a personal

account. It will be from Co-operative Bank of Kenya and the accountant and managing director will

be the signatories to it.

b. Medical Services- the employees will be availed to medical services from various hospitals and

clinics allocated to them that will be catered to by the business.

c. Transport Services- vehicles will be availed to cater transportation of employees of the business to

get from one site to another of which the payments will be made.

d. Audit Firm- an audit firm will be checking the books of the business on a regular basis to ensure

everything runs smoothly.

e. Legal Firm- legalities concerning the business will be handled by lawyers employed by business so

as to prevent fraud and ensure authenticity is maintained.

21
CHAPTER FOUR

4.0 PRODUCTION/OPERATIONAL PLAN

4.1 INTRODUCTION
Production entails operations conducted in the business to attain a high-quality finished products whereby

production facilities are used, the cost of production is considered and production process itself is efficiently

done to attain intended results.

4.2 PRODUCTION FACILITIES AND CAPACITIES

ITEMS QUANTITY CAPACITIES MAKE UNIT TOTAL REMARKS

PRICE PRICE(kshs)

Motor bike 2 Japan Inherited After 2

months

Computer 1 HP.Co 38,000 38,000 After 3

months

Wheelbarrow 1 China 6,000 6,000 After 1

month

Office chair 1 Victoria 5,000 5,000 After 1

courts month

Other facilities to be required by the business are the premises and parking space will be leased.

➢ Premise kshs 5,000 per month

➢ Parking space kshs 2,400 per month

The business will also intend on checking repair and maintenance being carried out across all facilities so as

to maintain the efficiency which will 0improve the quality of the services offered.

22
4.3 BUSINESS LAYOUT

Back-up
Storage
generator

Offices

Parking

Washrooms

Main gate

4.4 COST OF PRODUCTION

The cost that the business will incur will be for the developing own products and services, which will be in

transportation electricity, consultation etc.

The table below shows cost of products per month incurred in developing the business:

Items Cost (ksh)

Transportation 3,000

Electricity 4,000

Salaries 47,000

Legal fee 1,200

23
4.5 COST OF LABOUR
Personnel No Salary Per Month

Surveyor 1 12,000

sales manager 1 9,000

Secretary 1 5,500

Watchman 2 8,000

cleaner 1 3,000

Total 6 37,500

4.6 OVERHEADS

These are expenses incurred during production

ITEM AMOUNT

Electricity 4,000

Water bill 1,200

Purchase /materials 8,000

Legal 1,200

TOTAL 14,400

4.7 PRODUCTION PROCESS

The operation of business in order to help in production of services will take some steps for the benefits of

the customers which are;

• Receiving some orders from potential customers

• Giving alternatives to orders made or placed if customers find others too expensive.

24
 • Agreeing on terms and conditions of payment benefits in given amount. The main factor that will

affect the production process will be competition and this can be minimized by improving the quality

of services offered, affordable prices and availability in the market.

4.8 REGULATIONS AFFECTING PRODUCTION

There are various regulations, governing rules and conditions which govern the scope of production process

and they include;

a) Health Act

The staffs should register with the National Hospital Insurance Fund (NHIF) to ensure good health and

welfare progress. The business will be subjected to this regulation at large.

b) Environmental Act

The government has a body that deals with waste control known as NEMA, which according to various

environmental resources is responsible to govern everything concerning the environment.

c) Copyrights Act

This act deals with the business trademarks as well as products and this body is KEBS is the one regulating

this.

d) Labor Act

In Kenya there is an act according to the constitution that deals with giving directions on terms and

conditions of various levels of employment, contract modes and wage distribution and allocation.

e) Business Act

This governs operations of various enterprises in trading and contacting which has to be adhered to.

25
CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 INTRODUCTION
The financial plan portrays the financial statements of the business and how the business is performing.

5.2 PRE-OPERATIONS COST

These are the start-up capital for the business.

ITEMS AMOUNT( Ksh)

Equipment/Purchases 1,030,850

Salaries 564,000

Rent 6,400

License 21,600

Electricity 4,000

Water 1,000

Advertisement 10,000

TOTAL 1683500

26
CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 IMPORTANT ASSUMPTION

My financial plan depends on important assumptions. From the beginning, I recognize that collection days
are critical, but not a factor I can influence easily. Interest rates, tax rates, and personnel burden are based on
conservative assumptions.

5.2 PRE-OPERATIONAL COST

Before the business starts official, there were some costs which I incurred for some operation as illustrated
below.

Pre-operational cost

16% 9%

19% Research
Licence
32% Advertisement
24% Professional fees
Design

5.3 PROJECTED PROFIT AND LOSS

Initial marketing and training expenses will be relatively high as I will seek to become known in the market
and staff get trained in provision of my services.

This will be brought about by the development of sales literature, advertising expenses, and function
expenses as indicated above.

As my market share increases and capital is generated, further marketing programs and the expansion of
those in existence at the time will be undertaken, to ensure market development.

However, with time, these programs will start generating revenue for the business, which I shall reinvest.
27
5.4 ESTIMATING OF WORKING CAPITAL
During my daily operation of my business, I will be incurring some cost on its operation. Below is the
summary of estimated working capital.

Current Assets Amount Total

Computers 80,000.00

Cash in hand and Bank 200,000.00

Total current Assets 280,000.00

Current liabilities

Creditors

Transport 30,000.00

Bank overdraft 40,000.00

70,000.00

Total current Assets 140,000.00

Working capital=Current Assets-Current Liabilities

=280,000-140,000

Working capital=140,000

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5.5 ESTIMATION OF FIXED ASSETS
Below is the summary of fixed assets.

ITEM NO PARTICULARS AMOUNT KSHS

20 Computers 300,000.00

16 Chairs 20,000.00

8 Tables 8,000.00

10 Shelves 15,000.00

29
 5.6 CASH FLOW STATEMENT FOR YEAR ONE
Below is a cash flow statement for MOHAMED SURVEY FIRM for year ONE

ITEM J F M A M J J A S O N D TOTAL

Cash in Flow

Cash Sale 600 550 200 400 500 4500 350 700 6500 7500 6700 900 5850

0 0 0 0 0 0 0 0

Loan 170 300 180 300 120 1500 300 2600

00 0 00 0 0 0 0

Cash in Hand 170 160 215 200 140 1300 130 210 1000 1700 1100 100 1940

00 00 00 00 00 00 0 0 0 0 00

Cash out Flow 290 108 250 225 270 1850 200 200 2750 1950 2250 240 2790

00 00 0 00 00 0 00 00 0 0 0 00 00

Purchase 140 200 100 260 400 1000 100 150 2000 1100 1200 150 9500

0 0 0 0 0 0 0 0

Creditors 200 100 1500 200 150 1200 2200

0 0 0 0

Salaries 200 400 600 400 400 8000 200 100 2000 4000 8000 600 5100

0 0 0 00 0 0 0 0 0

Transport 400 600 500 100 200 600 400 200 500 600 1000 200 9800

0 0

License 600 6000

Total 980 860 165 760 110 1210 540 420 4500 1560 1140 950 1162

0 0 00 0 0 0 0 0 0 0 0 00

30
Net Cash 129 151 120 100 700 1090 510 103 2500 1590 4500 205 1570

00 00 00 00 00 00 0 00 0 00 0

Cumulative 129 280 400 500 570 6790 830 993 1068 1267 1378 157 3524

00 0 0 00 00 0 00 00 00 00 00 00 00

31
 5.6.1 CASH FLOW STATEMENT YEAR TWO
ITEM J F M A M J J A S O N D TOTAL

Cash sale 600 4000 650 800 4000 5000 3500 4500 6000 5000 4000 8000 6450

0 0 0 0

Loan 2000 1000 3000 2000 8000

Cash in Hand 150 2500 270 300 2500 2800 3100 3000 2800 2500 2600 2950 3195

00 00 00 00 0 0 0 0 0 0 0 0 00

Total 210 3100 335 380 6600 3300 3750 3450 3400 3000 3200 3750 4280

00 00 00 00 00 0 0 0 0 0 0 0 00

Cash out Flow

Purchase 150 2000 300 100 500 1500 2000 1600 2000 3000 2000 4000 2410

0 0 0 0

Creditors 300 200 500 2000 1000 1300

0 0 0

Salaries 200 2000 400 600 2000 4000 2000 2000 4000 2000 4000 6000 4000

0 0 0

Transport 500 300 200 700 500 400 600 1000 200 500 400 600 5900

License 600 6000

Total 130 4300 720 970 3000 6400 6600 4600 6200 5300 6400 1150 8440

00 0 0 0 0

Net Cash 800 2670 263 283 6300 2660 3090 2940 2780 2450 2560 2600 3431

0 000 00 00 0 0 0 0 0 0 00

Cumulative 800 3470 610 893 1323 1789 2098 2392 2670 2195 3170 3431 3457

0 0 00 00 00 00 00 00 000 00 00 000 00

32
 5.6.2 CASH FLOW STATEMENT YEAR THREE
ITEM J F M A M J J A S O N D TOTAL

Cash sale 500 600 300 800 500 400 2000 600 1000 8000 9000 7000 7300

0 0 0 0 0 0 0

Loan 500 7000 2000 9500

Cash in Hand 2000 1500 180 160 140 250 2700 300 3100 3000 2900 3150 2865

00 00 00 00 00 0 00 0 0 0 00

Total 2500 2100 245 190 290 360 3600 410 4000 3800 3850 2100 3600

0 0 00 00 00 00 0 00 0 00 0 00

Purchase 2000 1500 300 450 400 250 1000 150 2000 3500 4000 2000 3150

0 0 0 0 0 0 0

Creditors 1500 200 200 6000

0 0

Salaries 2000 4000 800 600 400 600 2000 600 8000 4000 1000 2000 6200

0 0 0 0 0

Transport 500 300 400 100 600 300 500 200 700 200 400 200 4400

License 6000 6000

Total 1100 5800 112 109 810 370 3300 103 1020 8200 1420 4400 1015

0 00 00 0 0 00 0 0 00

Net Cash 1400 1520 980 136 109 253 3270 250 3080 2580 3410 2675

0 00 00 00 00 0 00 0 0 0 00

Cumulative 1400 2920 390 526 635 888 1215 147 1778 2096 2334 2675 1443

0 00 00 00 00 00 00 00 00 00 00 00 900

33
5.7 PROFORMA INCOME STATEMENT
Below is a proforma income statement for my company year 1

ITEM AMOUNT KSH TOTAL AMOUNT KSH

Cash Sale 59,500

Loan 27,000

Cash in Hand 195,000 281,500

Total

Purchase 22,000

Creditors 9,500

Salaries 61,000

Transport 9,900

License 6000

Total 108,400

Less expense 90,300

Net profit 180,200

5.7.1 PROFORMA INCOME STATEMENT YEAR TWO

ITEM AMOUNT KSH TOTAL AMOUNT KSH

CASH SALES 645,000

LOAN 8,000

CASH IN HAND 319,500

34
TOTAL 392,000

PURCHASE 24,100

CREDITORS 13,000

SALARIES 40,000

TRANSPORT 5,900

LICENSE 6,000

TOTAL 89,000

LESS EXPENSE 89,000

NET PROFIT 30,300

5.7.2 PROFORMA INCOME STATEMENT YEAR THREE

ITEM AMOUNT KSH TOTAL AMOUNT KSH

CASH SALES

LOAN

CASH IN HAND

TOTAL 369,000

PURCHASE

CREDITORS

SALARIES

TRANSPORT

LICENSE

TOTAL 149,500

35
 LESS EXPENSE 149,500

NET PROFIT 219,500

5.8 THE BALANCE SHEET

Hereby is the summary balance sheet of my business as at 31st Dec. 2023 of the 1st year.

PARTICULARS AMOUNT AMOUNT PARTICULARS AMOUNT AMOUNT

FIXED ASSET

VEHICLES(TRANSPORT) 1500 CAPITAL 105000

CHAIRS SHELVES 1000 NET PROFIT 178000
TABLES 1500 LESS 4500
TOTAL DRAWINGS
CURRENT ASSET TOTAL
CASH AT HAND
4500 198500

194000
TOTALL ASSET 198500

36
REFERENCES
stocky, D. and P. Bobko, "Computer Versus Paper-and-Pencil Administration Mode and Response Distortion in
Noncognitive Selection Tests," Journal of Applied Psychology, 1997,

Preschel, B. M., "Indexer Consistency in Perception of Concepts and in Choice of Terminology," Columbia
University Dissertation, 1972,

Rossi, P. H., J. D. Wright, & A.B. Anderson (eds.), Handbook of Survey Research, New York: Academic Press, 1983.

Rubenstein, S. M., Surveying Public Opinion, Belmont, CA: Wadsworth Publishers, 1994.

Salant, P. & Dillman, D. A., How to Conduct Your Own Survey, New York: Wiley, 1994. [A practical book and very
good update to Dillman's earlier work.]

Scheaffer, R. L., W. Mendenhall, & L. Ott, Elementary Survey Sampling, Washington, D.C.: Duxbury Press, 1995.

Weisberg, H. F. J. A. Krosnick, & B. D. Bowen, Introduction to Survey Research and Data Analysis, Glenview,
Illinois: Scott, Foresman and Company, 1989.

37