FREDRICK JUMA’S

BUSINESS PLAN
 DECLARATION
I declare that this work is my original document and in no way resemble any other work hence I
don’t expect any person to plagiarize this work without my knowledge from the presented
holder.
Student’s Name: FREDRICK JUMA
Signature:…………………….
Date:…………………………….

APPROVED BY SUPERVISOR.
I confirm that this business plan was carried out by the candidate under my supervision on
behalf of Siaya Institute of Technology.
Signature:……………………………………………… Date:……………………………………………..
Name:………………………………………………………………..
 DEDICATION
I dedicate this work to my mentors all those who advised me vividly to have confidence and
reach where I have managed. I couldn’t have manage this far without the support of my
parents who strengthened me and I adhered to their advice
My lecturers, relatives and friends, thanks for making me brave an up lifting me to where I am
today
 ACKNOWLDGEMENT
This goes to all who contributed generously and supported me in coming up with this business
plan. It is a fact that I couldn’t have manage all this without your sincere support God bless you
abundantly and that all goes well with your businesses as well with your families.
 CHAPTER ONE:
BUSINESS DESCRIPTION.

1.1 Business owners profile.

The sponsor or owner of the business shall be Dennis Ralick who is of age 27 and is a male. The
individual is a graduate holder in degree school of engineering in Eldoret university-The owner
of the business also is an alumni of Tonga boys high school in Magunga whereby he was able to
attain a B plain in his Kenya certificate of secondary education (K.C.S.E) and also persuaded his
primary level education in Fountain Junior Academy whereby he was able to attain an average
performance of 350 marks in the Kenya certificate of primary education.
The owner is compatible with this business because he has worked in several business before
including small business garage, automobile companies where he gain knowledge and skills.
Apart from that he is punctual when it comes to time and is kind to people, thus chances are it
will do perfect. The owner’s parents too have been part in small business in the past and thus
the owner had some experience through them.

1.2 Business name.

The approved business name is TEKNIX AUTOFABRICATION WORKSHOP because it comes from
the word technology and also because it is simple and much easier to understand by most of
the traders who would wish to transact any service activity within the vicinity of the business.
The business will be located near Kenya Ports Authority (KPA). The address of the business will
be P.O Box 6850-0100 Nairobi.

1.2.1 Vision statement.

To be the market leader in the provision of automobiles products and services within and
around the regions of Nairobi & central Kenya region .

1.2.2 Mission statement.

To create efficiency by the provision of both wholesale and retail commodities to both the local
and the longer logistical distributers and issue of products and services of quality and quantity
standards.
To be a market leader by following cost leadership strategy, environmental friendly capacity
expansion and following the business core values.
1.3 Business Location and address.
The business will be located near Kenya Ports Authority (KPA), 2 kilometers away from Isuzu
motor company. This area is both accessible to motorist and pedestrian post address as shown
below.
TEKNIX AUTOFABRICATION WORKSHOP,
P.O BOX 6850-0100,
NIAROBI.
MOBILE; 0711694840

Email Address:teknixjuma7312@gmail.com

The sketch map shown below will assist customers from you to locate our business.
1.4 Forms and Types of ownership
The business shall be a sole proprietor kind of business. This means that the owner is going to
be the owner of the business. There is also employment of few people who will help him with
the business. Our business is expected to expand a year from statuary point. The business is
expected to start officially in August 20th 2021 and by the same date the following year we
should have another branch elsewhere. The capital is Ksh. 200,000 while contribution is ksh.
500,000.The borrowed funds are ksh.300, 000. The type business shall be a working workshop
garage.

1.5 Products and services

We are going to offer goods and services directly to the customers. Our activities will include
Fabricating of new product e.g. Hand tools, repair of broken car and working tools and
equipment’s, car servicing, modeling of vehicles into advance features using relevant tools and
equipment necessary for the work. Then we provide a qualified personnel for their operation.
The entrepreneurship role is to ensure that all works are carried correctly and risk
management.

1.6 Justification of opportunity

The factors that led me to choose this kind of business is because the owner is quite skilled in
handling the kind of business as he is familiar with the equipment’s.
Also consider the fact that self-employment is the best method of handling business as one is
his own boss. Thirdly, there are many car selling companies around nearby areas e.g. Toyota,
Isuzu, TATA making easier to do business in the town.

1.6.1 Community Benefits

The community is going to benefit through this business in various ways for example’s they are
going to get employment we shall employ some of them to assist us.

1.6.2 National Benefit

The nation is going to benefit through tax collection that is going to help boost the economy.
They will also benefit from the revenue.
1.7 Industry
The type of industry will be to offer services to our customers by repairing their motor vehicles
after breakdowns or even servicing of the vehicle after purchasing it to one of the motor vehicle
selling companies, also deal with adjustments of vehicle chassis, bumper, boot panel, roof panel
and many more.
The industry will be manufacturing of working tool such hammer, rivets, screw and screw
drivers, pliers etc. The business is competitive because there other small and medium scale
industries located in the areas.

1.8 Goals of business

1.8.1 Short term goals
It’s anticipated within months the business would have attracted customers from neighboring
estates and thus the business will curb the issue of competition with other workshop garage in
the region.
1.8.2 Long term goals
Within one year the business would have opened a new branches across the estates.
Advertisements will be done through road shows, marketing and the media e.g. radio, TV and
social media. It will provide employment to people thus rising their living standard.

1.9 Entry and growth strategies

1.9.1 Entry strategy
The price of service offered and the tools sold will be fairly to all customers. The product
offered will be of high quality thus making it possible to market the product around towns.
1.9.2 Growth strategy
This will make it possible to open other new branches across the country thus increasing
marketing of our services and products also. New trucks in transporting of our manufactured
products.
 CHAPTER TWO
MARKETING PLAN

2.0 Customers
Our customers shall be identified by various ways and means e.g.: around the place where we
shall have a business most people do not have our services and products e.g. Fabrication of new
automobile workshop tools such as hammer etc. Due to the expensive of this working tools in
the market, in the workshop it will be sold at a fairly cheaper price.

2.1 Market share

2.1.1 Potential customers
We have found that the potential number of customers is the area of our business is around
30,000 including the motor industries, schools and different government institutions. Here we
have a target of 20,000 customers and attract and control the remaining by offering incentives
like after sales service and good customers care. We can also offer job opportunities to some
people to improve their living standards.
2.1.2 Sales Seasons (low and high sales)
Our products and services like any other have high and low peak, though price don’t shoot that
much high. During the month of February people who travel are not limited hence the work
load that would be received in the workshop will not be that much. We also lack customers due
to lack of money and the price rise, nevertheless from April onwards the demand rises because
customers have money and schools are closed hence students will be travelling to various
places and also during December holidays when people will be travelling to visit their Grands at
home during the Christmas holiday.
2.1.3 Risk Management
The problem anticipated is low sales during particular times/months of the year. We intend to
solve this problem by lowering our prices slightly during this time when the prices are high
without affecting our profits margin. This will attract more customers to our premises and thus
the sales will go high. There are months when people have little more and do not buy our
products often, we intend to apply high standard customer care to attract them.
2.2 Competition
The business has two competitors which are ISUZU AUTOSHOP and KINGSPAN GARAGE. The first
enterprise has a selected high quality or good products that initiate high prices for each of this
item. For the business enterprise shall constitute of standard level goods that shall favor both the
less fortunate and the fortunate.
Competitor’s strength weakness opportunities Threats.
Name
ISUZU AUTOSHOP a. High quality products a. insecurity challenges a. Accessibility of Insecurity, Government
b. Standard price infrastructural legislation and policies.
c. Highly trained staff development. Electricity charges
b. Accessibility of
market infrastructure

KINGSPAN GARAGE a. High quality products a. Insecurity challenges a. Near infrastructural Government
b. Trained staff b. poor services development region Insecurity
b. Improved transport Electric Charged
and communication Infrastructure
system

2.3 methods of promotion and advertising

We are going to promote our products by use of posters, billboards, social Medias, newspapers.
Which shall be given to people in the street and also put on several places e.g. walls. The
promotion is going to take 2 months as soon as it begins. We are going to run it continually. About
giving out the paper containing our information we are going to give out the papers from Monday
to Friday and have a weekend off.
2.4 pricing strategy
Our prices are going to be flexible depending on the time of the year i.e. when people around
have no money we are going to reduce our prices slightly to meet their needs. Our aim is to satisfy
the customers need first before we satisfy ourselves thus our pricing policy. Our selling price shall
be production 20% of the price. For example the price for setting our locally produced goods and
services will be according to the work output of work done in the workshop.

2.5 Sales Tactics

We are going to sell our products on cash. This will help the business to grow and not run into
debt. It will also help us to be more accountable with our products and money. A 10% discount
will be offered for each and every good in the purchased in the wholesale shop. Also there will
be price reduction and the sales the men will be used to make more sales after sales service
offered for free.

2.5.1 Sales men

The business will involve sales men to sale the product to the customers.
They will be travelling to meet the customers who will not be able to come to the business
location thus ensuring that more customer are reached.
2.5.2 after sales services.
The customers who they buy in large quantities will be provided with the after sales services and
their goods delivered to their destination.

2.5.3 Direct selling from the shop

Customers will be attracted directly from the shop counter or the outlets.
 CHAPTER THREE

OGANIZATIONAL PLANS
2.5 Organizational.
It’s essential of significance substance that there should be developed policies for the staff and
Human resources management present the job description of the employee evaluation plans,
training plans and compensation plans for the employees
2.6 Organizational structure.
The organizational structure of Teknix Autofabrication Workshop will be as follow:

DIRECTOR

STORAGE PRODUCTION SALES

MANAGER MANAGER MANAGER

RECEIVING ISSUING SUPERVISOR SUPERVISOR SALES MEN

CLARK CLARK 1 2

WORKERS
2.7 managers and qualifications
The manager has the following professional qualifications and academic; A degree in
automobile engineering and also has done a diploma course in mechanical engineering.
The manager has worked in several firms before where he has employed. His/ her duties will be
to supervise the lower cadre starting from the supervisor downwards. He/she will see it that all
the activities are catered without any alteration. The manager will also deal with matters
concerning the administration of the business and promotions.
2.7.1 Supervisor
The supervisor has done a diploma course in automobile engineering. Has previously worked
with three organization thus professionally qualified. His duties will majorly be to supervise the
duties from his position down the subordinates’ staff and the security officer. He or she will see
that services are delivered in the right way to the customer and quality service are upheld. The
supervisor will also make sure that everyone does his/her duty without problem. He/she will
make sure that discipline is maintained in the place of work.
2.8 personnel; number and duties
Other personnel shall be security officer, sales man, Clark, sub-ordinate staff. Their qualification
are shown in table below;

Job tittle post Qualification Experience Duties

Workers experts 4 Academic Professional Do general work
certificate and experience of 3 concerning
diploma in yrs. in the same experts
automotive and field operating
mechanical machine
engineering
security 2 Training Professional
minimum of experience of a
certificate in minimum of 3
business years for all.
management
2.9 Recruitment, training and promotion
2.9.1 Recruitment
We are going to carry out our recruitment exercise by advertising in the local radio. That will be
for manager, automobile workshop workers and supervisors. The other worker will be dealt
with the entrepreneurship in his office. The applicants will send it their applications after
scrutiny they will be shortlisted and later for their interview will be send thereafter they will
come for the interview where the best will be chosen. The other works will come straight for
the interview where the manager and supervisor will handle them.
2.9.2 Training
Occasionally we are going to organize for shows training for the workers the first one begin
after recruitment. We are going to do the training outside the firm before we finally come back
to it. The worker will be awarded with certificate of training, the cost of training plus certificate
will be 10,000/=

2.9.3 Promotion
Those workers who will improve in the work will be promoted i.e. cleaners will receive
promotion according to how much they keep hygiene and will be promoted from local worker
to head of the workers. The same will be done to the daily expertise workers and the security
officer.
3.0 Remuneration and incentives
3.0.1 Remuneration
All workers in our fir, will be paid salary since all of them will be full time workers. The sub-
ordinate will also get a salary every month end. The staff will be paid as shown in the table
below.

JOB TITTLE SALARY TRANSPORT FOOD SUB-TOTAL

ALLOWANCES ALLOWANCE
Director 40,000 4000 2000 46,000
Manager(2) 60,000 3000 - 3,000
Supervisor(2) 50,000 2500 - 2,500
Clerks(2) 30,000 - - 30,000
Salesman 15000 1500 1000 17,500
Total Ksh.99,000

3.1 Licenses, permits by law.

They will mainly include;
  City council.
 Kenya Revenue Authority.
 Business Licenses and permits.
 Ministry of health certificate.
Teknix Autofabrication workshop will acquire its licenses from Kasarani and will pay the taxes to the
Kenya revenue authority.

3.2 Support services

For the attractive operation of the business, the company will require the following support
services.
3.2.1 Banking services
The company’s bank will Equity bank number; 03501427482001
The address of the financial institution will be 101-00142466 Nairobi
3.2.2 Security
Security in charge will be Ivory, Kasarani branch address 1-04267449
3.2.3 Insurance
The insurance company that will be in charge of the business enterprise shall be Gateway
Insurance Company, Kasarani branch address 46-2561 430.
 CHAPTER FOUR

OPERATIONAL PLAN
3.3 Products or services design and development