ADM NO: KIM/68454/19

COURSE CODE: CBM 522

COURSE:CUSTOMER RELATIONSHIP
MANAGEMENT
LUCTURER NAME:
Table of Contents
DEVELOP A BUSINESS PLAN FO AN INDUSTRY OF YOUR CHOICE .................................. 3
Ali’s Construction Business Plan. ....................................................................................................... 3
1. Executive summary ....................................................................................................................... 3
1.1Mission statement .......................................................................................................................... 3
2. Business Description ..................................................................................................................... 3
2.1Competitive Advantages .............................................................................................................. 4
2.2Service Line .................................................................................................................................. 4
3. Marketing plan .............................................................................................................................. 5
4. Management plan .............................................................................................................................. 6
5. Production plan ............................................................................................................................. 7
6. Financial plan ................................................................................................................................ 9
DEVELOP A BUSINESS PLAN FO AN INDUSTRY OF YOUR CHOICE
Ali’s Construction Business Plan.
1. Executive summary

Ali’s Installation LLC plans to become the leading provider of concrete formwork services in
the area. This means always having the best and most efficient facilities, processes, and
people. To achieve this, Ali’s Installation is investing in many ways that will pay off in
competitive advantages for its customers.

The company's overall strategy will be based on a continuing improvement process of setting
objectives, measuring results, and providing feedback to facilitate further growth and
progress.

Ali’s Installation is a Nairobi Limited Liability company, with principal offices located in
Pangani, Nairobi. Ali’s Installation's management is highly experienced and qualified. Mr.
Mohamed Ali leads the management team with over ten years of experience in the
construction industry.

1.1Mission statement

Ali’s Construction Company is a leader in providing value-added construction services to our

customers by creating a successful partnership with them throughout the construction
process. Our pledge is to establish lasting relationships with our customers by exceeding their
expectations and gaining their trust through exceptional performance by every member of the
construction team.

2. Business Description

The Ali’s Construction Company was established in 2017 and is a general contractor offering
construction services in terms of Site Analysis, Feasibility Studies, Preliminary Design
Studies, Permit/Zoning Applications, etc. They handle various industrial, distribution,
manufacturing, office, retail, recreational, healthcare and commercial projects in the Nairobi
area and regional markets.
2.1Competitive Advantages

 Highly experienced management team

 Broad geographic, operational base within Nairobi.
 Professional Engineering & Quality Assurance Personnel Augmenting Reduction in
Staff of Customer Base
 Excellent Union Relationships
 Solid Reputation, Predictable Revenue Stream, Strong Relationships with Major
Customer Base
 Strict environmental regulations and recent clean air requirements create strong
growth opportunities for Construction Services and Repair and Maintenance Services
segments
 Increased demand to replace and maintain aging infrastructure in the refinery and
power industries will provide Ali’s Construction Company with major new project
opportunities
 Consolidation in the oil industry results in outsourcing contract opportunities to Ali’s
Construction Company

2.2Service Line

Ali’s Installation's formworks will offer major advances, complete adaptability, and high
strength-to-weight ratio, and all at cost effective prices. Assembly will be quick and easy.
During form use, maintenance will be minimal. Ali’s Installation will recommend, as a safety
precaution, occasional inspection for bolts and nuts that may have loosened from handling.

The required formwork drawings that Ali’s Installation will furnish to the contractor
eliminate all guesswork. The company will specify the order of assembly and erection
including the location of the strong backs and joists, the location and actual loading of the
form ties, location of all accessories and advice clients of the maximum allowable rate of
concrete placement.

Accident prevention is the cornerstone of Ali’s Installation's safety commitment. The

company will strive to eliminate foreseeable hazards which could result in personal injury or
illness; at Ali’s Installation, health and safety will not be compromised. Ali’s Installation will
sell its services clients in the area of commercial construction.
3. Marketing plan

3.1 Social Media Marketing and Advertising

Internet marketing has expanded into one of the most typical methods of communicating and
marketing your brand across the globe while allowing for organic advertising. Social media
marketing allows you to hone in on your specific target market, and direct marketing and
advertising content towards this group. Platforms like Facebook, Twitter, Instagram, and
Pinterest are all free of charge and can generate much more exposure than traditional
marketing strategies could. For small business advertising, social media is an incredible
resource to reach your target consumer, showcase your past work and build a loyal following.

3.2 Networking

Networking at conferences, trade shows, and meetups is one of the most effective ways to
promote your business. Networking involves more of a time commitment than other forms of
marketing, but attending the right events can lead to a great volume of new referrals for your
construction company.

3.3 Customer Testimonials

By utilizing customer testimonials in your advertisements and on your website, you can
showcase their satisfaction which helps to market your brand. Also, using sites such as
Angie’s List can help get the word out about the quality of your service and further advertise
your brand to new, potential customers for future projects.

3.4 Accreditation

Having your construction company accredited helps to drum up new business. The best
accrediting agencies include, the Home Builders Association and your local Better Business
Bureau. There are clients who only wish to deal with accredited construction companies and
use these databases to find the right company. By having your business accredited, your
company will gain legitimacy in the eyes of potential customers.
3.5 Advertising
Much of today’s marketing talk centres around the online realm, however, traditional
methods like physical advertising can prove to be effective strategies for builders. Posting
signs on your recently finished construction projects gives potential customers who like your
work a way to contact you for an estimate on a new project. Another simple way to advertise
your construction services is by putting your company name and contact information on your
company vehicle. If your construction company primarily serves commercial clients, trade
magazines and conferences are also great places to advertise your services in print
form. Your online advertising options include social media advertisements like Facebook
Ads, and search engine advertisements using Google AdWords.

4. Management plan
4.1 Create a Long-Term Business Plan

As part of your business strategy, you should make a thorough business plan. This plan needs
to outline your business’ objectives, core competencies and define your existing and potential
markets. Additionally, find what makes your company innovative.

Think about why customers choose your business. Process this information by interviewing
existing customers to get their responses. Once you create your long-term business plan,
know you can –and should — make adjustments as you go along. Utilizing your business
plan creates the foundation for growth.

4.2 Up Your Marketing Game to Increase Sales

Sales tactics and marketing techniques are in constant flux. Staying up to date on the latest
trends to market your business is crucial. An effective rule for increasing your sales is to take
care of your existing customers. Too often businesses cater too much of their marketing to
new clientele, they forget about current customers. Take care of your current customers first
and then you can advertise to new clients.

4.3 Add New Markets

One way your company can reach new markets is to take on different types of projects. You
don’t have to stray far from your field of expertise, but just open the net a bit. For example, if
you’re a residential contractor, you could start adding multi-family construction to your list of
services.
Another way to reach new markets is to expand your promotional reach. Begin marketing in
new geographical locations.

4.4 Keep Tech Up-to-Date

Technology is always evolving, so it’s important your business does as well. Modify the
services you offer to change with the times. Add new services by implementing new
technological advances in your industry when applicable. These will not only intrigue
existing customers, but also allow you to reach a broader market.

4.5 Follow Industry Trends to Direct You’re Next Steps

Keep an eye on all industry trends. These help you avoid struggling niches, while also
pinpointing industry segments on the rise. Knowing these shifts let business owners focus on
gaining revenues from already surging industries. Additionally, business owners can stay
ahead of the game by predicting which construction types will gain prominence in the coming
years.

4.6 Merge or Acquire Other Businesses

One tactic that leads to rapid growth is to merge with or acquire a complementary business.
Before making these decisions, ensure market conditions can support the combined entity. Be
strategic as a business owner and make sure both businesses are stable and led by the right
people.

The beauty of running a small business is watching it take shape after you’ve spent the time
melding it. You can rein it in or let it expand. You have the control, and now you have some
tips on how to grow it on your terms.

Contractors, are you already experiencing some growth in your business? Use CLC and get
qualified craftsmen to meet your construction staffing needs

5. Production plan

The Nairobi area is booming at this moment, overall business growth over the past seven
months has averaged approximately 9.5% and is expected to continue for at least the next
four years. We will be concentrating on the customers that will provide us with the greatest
margin, in other words those clients desiring office building construction. This is the fastest
growing segment of all the commercial clients requiring our services.

5.1 Cement

Cement is one of the most widely used building materials in the modern world and nearly six
billion tonnes of this very important commodity is produced every year. Cement is the main
ingredient used in the production of blocks which are the single most used items in building
and construction work. A 50kg bag of cement in Nairobi is being sold aby dealers at an
average of sh750.

5.2 Aggregates

Aggregates are raw earth materials which have been used since prehistoric times in building
and construction.in modern construction work, aggregates are combined with cement to
produce concrete and mortar. Using aggregates gives volume, stability, resistance to wear or
erosion, and other desired physical properties to all kinds of structures – buildings, bridges,
roads etc. They now cost between sh2500 and sh5, 000 per cubic meter in major towns

5.3 Roofing materials

All buildings (especially houses) usually have a roof over them. Roofing materials form the
outermost layer on the roof of a building and provides shelter from the natural elements
(wind, sunlight and rain) and insulation against heat and cold. In choosing roofing materials
in Africa, builders and home owners usually consider cost, style and quality, suitability of the
material to the climate, low maintenance and long life span. Materials like asbestos (which
used to be very common) are becoming increasingly undesirable due to its adverse health
effects. Roofing contractors charge according to the shingle weight and the roof pitch because
the steeper the pitch and the heavier the shingle, the harder their job. Currently, the thinnest
grade in the market is gauge 32, which costs about Sh270 per square meter. Gauge 30 costs
about Sh310 per square metre and gauge 28 pre-painted costs approximately Sh700 per
square meter. The concrete roofing tiles cost around Sh600 per square meter

5.4 Glass

Clear windows have been used since the invention of glass to cover small openings in
buildings and provide us with the ability to both let light into rooms while at the same time
keeping undesirable weather outside. Glass sold on the African market is of varying types
(reinforced, laminated and tempered) for all kinds of uses. Glass has also found popular use
as a decorative material in designing building exteriors. The cost is about sh180 per sq. ft. for
one way glass.

5.5 Paints

Paints are applied to interior and exterior walls of buildings to make them beautiful, enhance
texture and protect from cracks, wear and tear. There are paints of all colours and types in the
market which typically include: emulsions (water-based paints), matte finish, gloss, varnish,
enamel and lacquers. The price of paint is 20lites for sh13, 900, 4liters for sh2, 780 and 1liter
for sh850

6. Financial plan
A successful contractor does everything possible to run a lean, financially sound company.
Finding ways to save money while increasing margins, improving cash flow and operating
more efficiently is key

6.1 Change payment terms

Establish a payment schedule based on the project’s percentage of completion. Be sure to

include clauses in contracts that require the client to meet readily identifiable milestones tied
to the payment terms.

6.2 Bill ahead of costs

Avoid using company funds or a line of credit to fund an entire project. One method used to
accomplish this is to ensure that contracts are front loaded to receive higher payments
earlier. This way the client is taking on more of the financial risk instead of the contractor.

6.3 Give a discount for paying within 30 days

Encourage clients to pay faster by offering an incentive. Make the percentage discount high
enough to entice clients to take advantage of this opportunity to save money. Build the
discount into the project fee to absorb the cost.

6.4 Charge interest on late payments

Charge a high enough rate to make clients pay attention. Avoid waiving interest charges
unless it is absolutely necessary to maintain the relationship with the client.

6.5 Consider leasing or financing new equipment

Cash and working capital are the lifeblood of a business. Leasing and/or financing provide
excellent tax incentives to retain working capital and spread the cost out over the years that
the equipment is generating income.

6.6 Manage material costs

Although there is little a contractor can do about the rising cost of construction materials,
there are ways to manage the impact on the jobsite. Minimizing procurement or purchase
costs is important to controlling costs. Decide on the timing of material purchases during the
job estimate, initial planning and scheduling stages of construction.

6.7 Manage productivity

Controlling labour activity at jobsites is a concern for contractors. Labour productivity can be
measured as functional units per labour hour for each type of construction task. Specific tasks
can be monitored using either higher-level or lower-level measures. Miles of highway paved
per hour is an example of a higher-level measure and cubic yards of concrete placed per hour
is a lower-level example. Individual activities are easier to monitor using lower-level
measures, while higher-level measures may be better for comparing overall performance
against industry standards.