SECTION 1- EXECUTIVE SUMMARY

PROBLEM STATEMENT AND SOLUTION

Problem: lack of sufficient water in construction sites

Solution: provision of temporary water supply to industrial sites

The main idea here is toprovide bulk water tankers to building sites that operate away from main
water connections or need a greater quantity than the main lines can provide.

The main objective is to provide quick, bulk and reliable water needed for masonry work, dust
control, pipe cleaning and other jobs on sites.it will make sure that bulk water tank gets to the
construction site as soon as possible so that the job stays on track for the desired completion.

Throughout the construction process a wide variety of services via bulk water tankers will be
offered. Available in volumes of 10,000, 15,000 & 30,000 litres tankers can assist either via one
bulk delivery into a site tank or by remaining on site for a number of hours at a time to provide
the water as and when it is required. Should access be an issue for the tankers to attend your site,
a 2,000 litre bowser towed by a 4×4 can be operated.

The range of static water tanks and on demand pumps, can ensure an uninterrupted supply of
water to your site.Tanks, which come in volumes of 1,100, 1,800, 10,000 & 30,000 litres can
either stand alone or be connected to and supplied by a mains supply on site. As well as being
able to supply your site with drinking water, static tanks can be connected to your site welfare
units, ensuring you have a clean supply to your showers, toilets, hand washing and kitchen
facilities.

We can also attend site to disinfect and chlorinate any pipe work on site that is not suitable for
clean drinking water or that will be used to connect up to a mains supply. We take samples from
the chlorinated pipe work and issue UKAS accredited certification once the results have been
received back from the laboratories.
SECTION 3- MARKET

TARGET MARKET AND SEGMENTATION

The targeted market in this case is the construction sites, contractors and sub-contractors alike.
Quality assured water wil be supplied for a range of site services including:

 Site Drinking Water

 Site Welfare
 Pipework Chlorination and Certification
 Soakaway Testing
 Site Remediation
 Piling and Drilling Purposes
 Water for Concrete Batching
 Dust Suppression Applications

Water Supply Services for Construction Sites:

 Bottled Drinking Water

 Temporary Site Welfare Infrastructure and Plumbing
 Static Water Tank, Pump, Bowser and Tap Stand Hire
 Bulk Water Tankers
 Pipework Chlorination & Certification
 MARKET SIZE, STRUCTURE AND GROWTH

market size, structure and growth

the market size is quite broad. for instance there are very many construction companies around
the country Kenya. each and every one of these companies is in need of our services.

the recent research has shown that there is shortage of water for construction in large, medium
and small construction enterprises. the water distributed by the government is limited an d it is
not always available when required.

there is a very wide gap to be filled in such companies.

moreoever water is not only required in constructiion companies for masonry but also it is
required for other uses such as cleaning, drinking by the workers among other uses.

when you consider construction activities taking place in areas with poor distribution of water or
where water is a major problem, then you find there is a big gap needed to be filled up.

as our country continues to develop, construction of new structures will be of paramount

contribution. the market for the need of water for construction will continue to grow in decades
or centuries to come.

the market is not limited to urban areas alone but also to the outskirts of the town.

Global water scarcity has been recognized by the World Economic Forum as the most serious
risk for our planet. Population growth and urbanization are having a fundamental impact on the
global water balance. Long-term trends include the increasingly higher standard of living,
industrialization in the emerging markets, and outdated water infrastructure in the industrialized
countries. There also short-term concerns such as the treatment of ships’ ballast water, and the
development of shale gas. Ballast water is carried by cargo ships as a counterweight in order to
optimize their maneuverability. It is treated at the destination port.
Population growth: a long-term underlying mega trend

The global population is growing. The world's population stood at 7 billion in 2011, and is
expected to reach 8 billion by 2025, according to the United Nations. We therefore anticipate the
following significant effects on the water market:
 Growing demand for drinking water
 An expanding middle class accompanied by a higher standard of living
 Increasing demand for food, with a large share of this being covered by water-intensive
agricultural produce, as well as greater consumption of land- and water-intensive meat products,
and higher demand for personal care products
Urbanization: a long-term underlying mega trend

In 1950, only 20% of the world's population lived in urban areas. This figure will rise to 70% by
2050. The global urban population surpassed the world's rural population in terms of numbers
back in 2008. In the emerging markets, there is significant catch-up potential. The development
of water resources as well as the treatment and distribution of water are issues here.
 In the industrialized countries, there is an urgent need for outdated systems to be replaced, as
water loss due to inadequate infrastructure is enormous.
 The huge need for investment requires alternative financing approaches. Problems with water
quality in urban centers are becoming ever more pressing. We anticipate a shift of public funds
to the private sector, leading to profitable business opportunities.
 In the emerging markets, investments are increasingly being made to develop essential water
and waste water structures. With urbanization, countries have no choice but to invest in their
water infrastructure. It is here that we also see the best investment opportunities.
 Industrialization strategies lead to the emergence of industrial parks in urban areas. These
increase water consumption levels.
 Urbanization and industrialization are associated with rising energy needs. Water is needed for
almost all types of energy production.
Investments in the water sector are set to attract increasing attention in both the emerging
markets and industrialized countries. The problem of water scarcity is global in scale. Companies
that are well positioned in this regard have a good outlook for sustainable and continuous
growth. The longer-term growth outlook is promising. We anticipate that demand for water will
far exceed supply over the coming decades and will necessitate additional investments in water
systems.
Are you interested in a long-term investment in the water sector? This is exactly what our long-
term investment fund offers. Our experts have identified interesting investment opportunities for
you. Invest with us in a future with a clean and fair allocation of resources. With UBS
Manage or UBS Advice, you can benefit from our tailored solutions for long-term investments.
VALUE PROPOSITION

Essentially the distribution of water for the construction industry offers a lot of beefits to the
industry.

Reliable water is always distributed to cater for shortages where the provision of water through
pipelines is not sufficient to cater for the needs of the construction company.

The water require for construction industry is very bulky such that an external source of supply
must be provided to meet the water requirements at the site of construction.

Water distribution by tankers will provide free watering services of the curing concrete to the
customers. These services are not available when the company or industry is using the pipe water
from the government agencies.

Also the cost of the services that will be offered will be relatively low compared to other
companies providing the same services yet the services will be of high quality.

Additionally our service will be very reliable and they will be offered at the required time
without wasting the time of our customers. Once a phone call is made, within the next few
minutes the services will reach the customer.

Moreover our services will be convenient, available and strategically located to reach the
customers as soon as they call for our services. And quality tankers that can reach even the mos
remote areas will be available.

Essentially our services will make the work of the contractors and the building sector as whole
very simple, economic and efficient. The payments for our services will be very low since there
will be no cash payments made hence making it more convenient to the customers.
SECTION 5-BUSINESS MODEL

1. Customer segment

The job we are trying to do in this section is to distribute enough water to the building industries
and save them the problem of water shortage provided by the government

The only alternative to this is the water supplied by the government which does not meet the
demand of the construction industry at large.

2. Value propositions

The need to be fulfilled is the demand of water in construction industry.

The uniqueness of the services to be provided is the convenience, reliability, availability and
sufficient distribution of water to the customers.

Reliability and convenience will make the customers go for our services.

3. Channels

One of the channels to be used is the water tanker vehicles to supply the water. These tankers
will be fitted with long pipes and a pump for pumping water incase needed in tall buildings.

Customer relationships

The customers will be interacted with through phone calls and direct conduct when delivering
the services to them.

Some of the customers will be interacted with over the web.

4. Revenue streams

A side business is one of revenue streams. Also charging on the services is another source.

Borrowing from banks is another revenue stream.

SECTION 4-COMPETITION ANALYSIS

SECTION 4-COMPETIION ANALYSIS

1. Threat of new entrants

The easier it is for new companies to enter the industry, the more cut-throat competition
there will be.
After research and competition analysis, it has been found that it will not be easy for new
entrants into the market. Some of barriers that will limit the new entrants include;

 Existing loyalty to major brands

 Incentives for using a particular buyer (such as frequent shopper programs)
 High fixed costs
 Scarcity of resources
 Government restrictions or legislation
 Entry protection (patents, rights, etc.)
 Economies of product differences
 Brand equity
 Switching costs or sunk costs
 Capital requirements
 Access to distribution
 Absolute cost advantages
 Learning curve advantages
 Expected retaliation by incumbents

2 pressure of suppliers
The competition analysis has shown that there is no any single supplier who has a large
enough impact impact to affect the volumes and margins of the company. Some reasons
why some companies might have power include;

 There are very few suppliers of a particular product

 There are no substitutes
 The product is extremely important to the buyer, they cannot do without it
 The supplying industry has a higher profitability than the buying industry
 Supplier switching costs relative to firm switching costs
 Degree of differentiation of inputs
 Presence of substitute inputs
 Supplier concentration to firm concentration ratio
 Threat of forward integration by suppliers relative to the threat of backward integration
by firms
 Cost of inputs relative to selling price of the product
 2. Power of buyers or customers
Here are some reasons why some customers might have power;

 Small number of buyers

 Purchases of large volumes
 Switching to another (competitive) product is simple
 The product is not extremely important to the buyer, they can do without it for a period of
time.
 Customers are price sensitive
 Buyer concentration to firm concentration ratio
 Bargaining leverage
 Buyer volume
 Buyer switching costs relative to firm switching costs
 Buyer information availability
 Ability to backward integrate
 Availability of existing substitute products
 Buyer price sensitivity
 Price of total purchase

4-availability of substitutes

What is the likelihood that someone will switch to a competitive product or service?

Some of the factors that can affect the threat of substitutes include;

 Buyer propensity to substitute

 Relative price performance of substitutes
 Buyer switching costs
 Perceived level of product differentiation
 Fad and fashion
 Technology change and product innovation

In this case there is no main issue since there is no any similar product that the customers
can switch to.
 5-competitive rivalry

this describes the intensity of competition between existing firms in an industry. Highly
competitive industries generally earn low returns because the cost of competition is high. A
highly competitive market might result from:

 Many players of about the same size, no dominant firm.

 Little differentiation between competitors products and services.
 A mature industry with very little growth.
 Companies can only grow by stealing customers away from competitors

Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions
such as innovation, marketing, etc.

 Number of competitors
 Rate of industry growth
 Intermittent industry overcapacity
 Exit barriers
 Diversity of competitors
 Informational complexity and asymmetry
 Fixed cost allocation per value added
 Level of advertising expense
SECTION 5- BUSINESS MODEL

The only job that will be done to the customers is to provide customers with sufficient water
reliable for construction process.

The services provided will be reliable, convenient and available. Also cost friendly in
comparison with other suppliers.

iii. channels

customers will be communicated to through phone calls and google platform.

iv. customers will have personal contacts, phone calls or interact over the web.

v. revenue streams

customers will be charged on the services provided.

vi. key activities

leraning about users and new techniques to improve come up with a new product.

vii.key resources

well improved infrastructure and enough facilities. For this case vehicles such as tankers ant
containers as well as workers to carry out the job.

viii. key partners

all other related innovators are also my partners.

ix. cost structure

the costs are more linear with the business scaling.

x. applications, analysis and next steps

the business makes sense and it will get better in progress.

SECTION 6- OPERATIONS PLAN

the operations plan section describes the physical necessities of your business's operation, such
as your business's physical location, facilities and equipment. Depending on what kind of
business you'll be operating, it may also include information about inventory requirements
and suppliers, and a description of the manufacturing process.

The business will require equipments such as tankers, containers and laborers to carry out the
job. Though there will be challenges on how to acquire these equipment, some starting capital
will be borrowed.

The business will be ISO certified to ensure standards are adhered to.

The operating time of the business is from 8 oclock to 5 oclock week days and 8am to 4pm on
Saturday without operating on Sundays.

Ofcoarse the tankers will need to be fueled from time to time and the workers to be paid
monthly.

The water to be supplied wil be from surface water sources such rivers, lakes or even swamps
with a permission from the municipal council.

SECTION 7- FINANCIAL PLAN AND SOCIAL IMPACT METRICS

financial plan section is the section that determines whether or not your business idea is viable,
and is a key component in determining whether or not your plan is going to be able to attract any
investment in your business idea.

All the costs of getting your business up and running go into the start-up expenses category.
These expenses may include:

 Business registration fees

 Business licensing and permits
 Starting inventory
 Rent deposits
 Down payments on property
 Down payments on equipment
 Utility set up fees

The approximated total costs amounts to 12 million Kenyan shillings per financial year.

Operating expenses are the costs of keeping your business running. Think of these as the things
you're going to have to pay each month. Your list of operating expenses may include:

 Salaries (yours and staff salaries)

 Rent or mortgage payments

 Telecommunications
 Utilities
 Raw materials
 Storage
 Distribution
 Promotion
 Loan payments
 Office supplies
 Maintenance

The total running costs amounting to 800000 Kenya shillings.

The projected total revenues and income amounts to 32m in any given fiscal year.
Revenues- expences= profit or loss

32000000-(12000000+1000000)= 19000000

Therefore the business is viable.