DECLARATION

I declare that this is my original work and that it has never been represented to any other
examination purposes.

NAME:

Signature: ______________________________ Date: ________________________

SUPERVISOR:

Signature: ______________________________ Date: ________________________

i
 DEDICATION
I dedicate my work to the Almighty God for giving me this opportunity. Also my supervisor
for advisement and knowledge to cover this document, my parents and my classmates for
assisting me in moral and financial support throughout the entire time of coming with my
business.

ii
 ACKNOWLEDGEMENT

I am indebted to my Almighty God who has been with me throughout the whole preparation
of the project. I also thank my parents and friends who have supported me financially and up
to this for I have come many the almighty God bless you abundantly.

TABLE OF CONTENTS
iii
DECLARATION.........................................................................................................................................ii

DEDICATION............................................................................................................................................iii

ACKNOWLEDGEMENT..........................................................................................................................iv

CHAPTER ONE..........................................................................................................................................1

1.0 SUMMARY OF THE BUSINESS........................................................................................................1

1.1 BUSINESS DESCRIPTION..................................................................................................................1

1.2 MARKETING PLAN STRATEGIES...................................................................................................1

1.3 ORGANIZATION AND MANAGEMENT PLAN...............................................................................1

1.4 OPERATION PLAN.............................................................................................................................1

1.5 FINANCIAL PLAN..............................................................................................................................1

1.6 PREPARATION OF BUSINESS PLAN...............................................................................................2

1.7 BUSINESS OBJECTIVE......................................................................................................................2

CHAPTER TWO.........................................................................................................................................3

2.0 BUSINESS DESCRIPTION..................................................................................................................3

2.1 BACKGROUND OF THE BUSINESS OWNER.................................................................................3

2.2 BUSINESS NAME...............................................................................................................................3

2.3 HISTORY OF THE BUSINESS...........................................................................................................3

2.4 THE BUSINESS LOCATION..............................................................................................................3

2.5 FORM OF THE OWNERSHIP.............................................................................................................4

2.6 TYPE OF THE BUSINESS...................................................................................................................4

2.7 PRODUCTS AND SERVICES.............................................................................................................4

2.8 BUSINESS OPPORTUNITIES.............................................................................................................5

2.9 BUSINESS GOALS..............................................................................................................................5

CHAPTER THREE.....................................................................................................................................6

3.0 MARKETING PLAN............................................................................................................................6

3.1 MARKETTING SHARE.......................................................................................................................6

3.2 COMPETITIONS..................................................................................................................................6

3.3 PRICING STRATEGY.........................................................................................................................7

CHAPTER FOUR.......................................................................................................................................8

4.0 ORGANIZATION MANAGEMENT PLAN........................................................................................8

4.1 ORGANIZATION STRUCTURE.........................................................................................................9

iv
4.1.1 BOARD OF DIRECTOR.................................................................................................................10

4.1.2 ACCOUNT CLERK.........................................................................................................................10

CHAPTER FIVE.......................................................................................................................................11

5.0 WORKING CAPITAL........................................................................................................................11

5.1 PROJECT CASH FLOW OF YEAR...................................................................................................12

5.2 PROJECT OUT FLOW OF YEAR TWO...........................................................................................14

5.3 PROJECT OUT FLOW OF YEAR THREE........................................................................................16

5.4 PROJECTED INCOME STATEMENT FIRST YEAR.......................................................................18

5.5 YEAR II..............................................................................................................................................20

5.6 YEAR III.............................................................................................................................................22

CHAPTER SIX.........................................................................................................................................24

6.0 BALANCE SHEET.............................................................................................................................24

v
 CHAPTER ONE

1.0 SUMMARY OF THE BUSINESS

1.1 BUSINESS DESCRIPTION

The name of the business will be HABON Holding Hardware. It will be situated at Wajir
County Town area about 45km from the town off to tarbaj Wajir road. The reason why I
chose this area is because of good infrastructure and also the supply of raw materials is just
within the surrounding.

1.2 MARKETING PLAN STRATEGIES

The majority customer to my business will be either whom own large companies friend and
any individual who would wish to use the hardware, goods and products services.

To allure more customers, the enterprises will offer lower price than it is competitors who
have been there.

1.3 ORGANIZATION AND MANAGEMENT PLAN

The businesses will organize in a way that the line of authority will be from top to bottom. I
will be the manager responsible for coordinating overall activities to be carried out the
enterprises.

1.4 OPERATION PLAN

In order for the enterprises to achieve it is good oriented I will ensure that all necessary
machine and equipment are purchased immediately. This includes computers, furniture’s and
storage containers.

1.5 FINANCIAL PLAN

The proposed businesses will be open on 1 st December 2017 for the first year, they will
receive ksh. 600,000. This amount will be got from relatives’ friends, parents from saving
their account and also to buy their plot and animals.

1.6 PREPARATION OF BUSINESS PLAN

You can prepare for both small, medium, large enterprises.

The customers are the most essential documents for starting building and making the business
success.

1
1.7 BUSINESS OBJECTIVE
The objective of setting up any type of business to get profit as I will rely on this business, a
source of income. This means that the profit you gained, obtained should make the enterprise
run softly.

i) PROFIT

It is the major reason why the business will be started getting from sales minus expenses.

Promotion of opportunity

i. It will create job opportunities to the people

ii. It is too hard to operate a business like this without assistance from employees.

ii) CUSTOMERS ORDER

By opening my business in the area of line, I will provide customers needs closer to items.

2
 CHAPTER TWO

2.0 BUSINESS DESCRIPTION

I will be operating a hardware kiosk and it will entail selling and buying of hardware goods
and services. My business will bring customers as it will involve wholesale and retail services
to the customers. My business will offer after sales services, welding, repairing of door,
windows of worn out equipment. It will operate on a good location but it has targeted its
customers so as in 8 years to come it will have realized its goals and objective role of its
business.

2.1 BACKGROUND OF THE BUSINESS OWNER

Am Abdi, I have done a survey on the need with its customers in a location, I have decided to
start my hardware so as to reduce my skills which I have given in my entrepreneurship
studies and also gain the society.

2.2 BUSINESS NAME

My business name is HABOW Hardware which is very common. Things in my area as my
customers we familiar with the name as it has been used to have believe by my mother and
my families believe it has changed my business location.

2.3 HISTORY OF THE BUSINESS

My business started in the year 2017 December and the reason I formed it is to get profit and
give a chance to citizen. The main idea where I was formed this business is I saw majority of
people are building houses so I think to have a hardware so as to gain profit and people can
get services.

2.4 THE BUSINESS LOCATION

The business will locate at Wajir Town, Jogoo road.

The business address will be as follows:

P.O BOX 28 WAJIR

EMAIL: Haboneycadey@gmail.com

Contact: 0726 869432

3
 The reason why I chose Jogoo road is to why am familiar with it. Also the area is well
environment and security is well those area is good to operate my business.

Jogoo road
Garissa
Wajir highway

Far supermarket

2.5 FORM OF THE OWNERSHIP

The business will be sole proprietorship as this will help in decision making of the business
and also the profit realized in the business I will enjoy alone.

2.6 TYPE OF THE BUSINESS

My business will undertake within the 5 years coming because yet I have not decided do to
financial crises and sometimes am student at Thika Technical but I will start after I finished
my learning progress which will be my last course and will be at the end of 2019 June.

My business will be having various activities that will profit customers and buying and
selling of hardware goods and equipment.

My business will be both retail and wholesale trading center.

2.7 PRODUCTS AND SERVICES

I will produce the following product and services to my customers:

i) Hardware tools and equipment

The product that I will bring is like cement, nails, wire tile

ii) Electronic tools and equipments

I will bring refrigerators, DVDs, wires

iii) Services

My business will also provide services to its customers which will include the following:

 Breaking the bulk for retail benefits

4
  Packaging services break the bulk and buying goods

2.8 BUSINESS OPPORTUNITIES

The business will be achieved by the good infrastructure of the location of my business as
there is good road network and communication which will help me reach my customers in
offering their services and the delivery of goods.

Also the climatic area of my business location is well favorable to the business idea as it
favors the operator and softly run.

2.9 BUSINESS GOALS

When I start my business, I will intend to increase the capital of its business as rate of 8%
within two years as this will have me to get a chance in the loan facilities that are provided. I
also want to increase number of labour in my business working team at the rate of 4% after 2
years thus helping in easiest services delivery to the customers and also to create job
opportunity to its environment area.

At the end of my financial years, my business will have made a profit that will help me to
attain the qualification of acquiring loans in the business for its purpose of extending and
providing good qualities to the customers.

5
 CHAPTER THREE

3.0 MARKETING PLAN

In marketing plan, my business will involve in carrying out various activities.

When it comes to marketing plan, I will use some prior information from those who are in the
market and this will help me carry out a market survey so that I can plan on how my business
will be conducting a market plan.

Any business will use the marketing tools like promotion, advertising after sale services and
other marketing tools so as to reach the business customer and facilitate the sale of my
business will use connectors like the retailers who will be breaking bulk for my business as it
is a wholesale business, also manufacturing companies will be my clients

I will be using the marketing plan from time to time to make sure my business profit has to be
increased.

3.1 MARKETING SHARE

My business as I expect, my business will get 80% market share as it will cover most of it
location potential customers and also the companies.

I expect a total number of 2000 customers after two weeks sale and every end of a financial
year, I will be selling a total cash of 8,000,000 as frequency of purchase per day will be an
individual customer and three companies

3.2 COMPETITIONS
My potential competitors include Kanyare hardware, Baithy hardware and Mathul hardware
by lowering the price of my products offering after sales services and packaging my products
in a beautiful and having qualitative products will help my business cope competitions.

Competitors are located in interior and exterior parts of Wajir-Jogoo. Thus, most of their
products are directly distributed to the surrounding areas like Mandera county town and
neighboring counties and this will be an advantage to my business as I will be selling within
the Wajir area and town area thus it will be my potential customer block.

The table below shows you my competitors.

Name of the Iron sheet Cement Paint Tiles

6
 business
Harbon 9 6 3 6
hardware
Kanyare 2 3 2 4
Mathul 2 4 1 3
3 2 3 2

Insecurity of location of the business, of my potential competitors and their pricing strategies.
Their business have suffered some weaknesses and also in various strength. This will help me
to analyze their areas of weakness and strengthen so as to capture and hold their potential
customers in my business.

3.3 PRICING STRATEGY

My business will be pricing its good services according to the cost incurred during the
manufacturing transportation, processing and packaging of these goods into the financial
products thus I will calculate all the cost covered during these process to come up with selling
price.

Although, after like competitors incentives and government pricing policy like be considered
before pricing and this will help me to be abit lower on my prices compared to those of my
competitors.

I will be selling a fixed price and this will be lower than that of my competitors customers as
I will be obtain my goods at a lower price in a manufacturing company and develop them the
way I will be distributed to my customers.

Factory manufacturing Wholesale Retail Customers

Hawkers

7
 CHAPTER FOUR

4.0 ORGANIZATION MANAGEMENT PLAN

The organization of my business is important and I make sure to be the best managed sole
proprietorship in Wajir County. I will be the manager of my business also I will recruit other
staff who will assist in running my business program.

Evaluations of employees will be through hardwork and hardworking also through the
comment of the customers.

Good work will be compensated either by reward of other motivation tools so as to keep their
moral will be high towards any business.

4.1 ORGANIZATION STRUCTURE

My business will entail the following organizational structures
8
 Board of Director

Managing Director

Financial Cooperation Technical division Sales and

administration Marketing

Account clerk

Engineer Sale personnel

Administration
assistance

Sale assistance
Quality contract

4.1.1 BOARD OF DIRECTOR

Planning administration image and control operation of its organization

Control aspect of business operation

9
Staff

Supervising

Account

The business will need one accountant who will be a male

Qualification

Should be having Diploma in Account

Be age of between 27-35 years old

Have experienced of 2 years

Have a certificate of a good conduct

In this section, one is required to discuss a various bank of account

i) Balance sheet

ii) Trading profit and loss account

iii) Cash flows

iv)Break-even-analysis

4.1.2 ACCOUNT CLERK

Qualification

Should be having Diploma in Account

Be age of between 27-35 years old

Have experienced of 2 years

CHAPTER FIVE

5.0 WORKING CAPITAL

In order to my business to start it required finance. It’s required because it can be used in
various ways:

i) You can get strategic place to start your business

ii)You can use to pay your services

10
iii)You can purchase in case you have a case

iv)You can use renovation

The structures below is an estimated capital for the first year of my business

Working capital 333,333

Opening stock 222,222

Cash at bank /hand 74,074

Miscellaneous expenses 370,371

Total 1,000,000

11
 5.1 PROJECT CASH FLOW OF YEAR
ONE ONEONE

Cash out Jan Feb Mar April May June July Aug Sep Oct Nov Dec
flow

Beginning 1000000 763,850 28250 81150 39050 781100 596500 7904000 813445 789305 1026495 200545
cash
Cash in flow 200,000 65000 70000 74000 76000 78000 80000 81000 82000 83000 84000 86000
Total cash 150,000 700000 250000 800000 820000 840000 850000 8700000 880000 8900000 900000 9100000
Purchases 50,000 40000 30000 350000 36000 4000 41000 420000 43000 44000 45000 47000
Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Water 5,000 450 400 500 500 500 550 650 500 650 650 650
Telephone 1,200 1300 1400 1400 1500 1000 1200 1205 1000 1000 1600 1800
Stationary 4,500 - - - - - 4000 - - - - 5000
Office 4500 - 3000 - - - 4000 - 2000 - - -
expenses
Transport 80000 - - 7500 - - - - - - 82000 -
Advertisement - - - - - - - - - - - -
Salaries 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000
License 3000 - - - - - 79500 - - - - -
Insurance 3000 - - - 3000 - 8500500 - - - - -
Electricity fee 850 850 700 800 800 850 750 700 750 750 800 800
Total 113850 70600 73500 397200 69800 70350 79510 63555 69250 58200 158050 83250
expenses
12
Net cash 236150 64400 746500 476800 820600 8401650 8500500 8717445 8711750 8924800 825950 9102750
TOTAL 763850 828250 81750 395050 7819150 596500 7904000 813445 7898305 1026495 200545 8902205

5.2 PROJECT OUT FLOW OF YEAR TWO

Cash outflow Jan Feb mar April May June July Aug Sept Oct Nov Dec
Beginning 200545 1110351 1723617 1449207 1158917 853207 503697 273587 111023 2326561 1874001 1401580
cash
Cash in flow 1336196 1422559 172255 182255 193355 212255 233355 244455 255555 266655 287755 307755

Total cash 130000 1492559 182555 191555 20155 221555 232555 234555 246555 267555 287666 297777

Purchase 49000 51000 50000 53000 54000 54000 57000 59000 62000 60000 67000 9000
Rent 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

13
Water 400 400 400 420 400 450 450 400 400 400 4500 600
Telephone 1000 1000 1200 1300 1000 1300 1300 1200 1000 1400 1600 1700
Stationary 3500 - - - - - - 3000 - - - 2000
Office - - - - - - - 2000 - - 1000 -
expenses
Transport 80000 - - - - - - - 82000 - - 90000
Advertisement - - - - - - - - - - - -

Salaries 130008000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000

License - - - - - - - - - - - -
Insurance - - - - 5000 - - - 3000 - - -
Electricity 800 750 800 800 800 750 750 800 900 850 900 1000
Total 155800 8150 80400 83520 89200 84300 26500 94400 2717640 81650 103000 207600
expenses
Net cash 13110896 283390 274410 290290 305710 349510 230110 384610 2215538 452560 472421 397932

Total 110351 1723617 1449207 1158917 853207 503697 273587 111023 2326561 187400 140580 1003600

14
 5.3 PROJECT OUT FLOW OF YEAR THREE
Cash out Jan Feb Mar April May June July Aug Sept Oct Nov Dec
flow
Beginning 140158 294256 893345 120627 156782 564443
cash 0 6 0 82 4 3
Cash in flow 934386 320067 330667 134007 370000 824544 412556 395543 596689 6689245 689824 7798245
8 94 8 2 5
Total cash 800000 280000 289976 314543 334543 384543 364543 82000 445543 5266438 605384 625384
6 5 8 9 9 8 8
Purchase 73000 73500 73600 75000 75850 76000 78000 85000 90000 94000 97000
Rent 10000 10000 10000 10000 10000 10000 10000 100004 10000 10000 10000 10000
00
Water 500 500 500 500 480 430 400 1100 500 580 580 600
Telephone 10000 1200 1000 1900 1000 1000 1200 - 1100 1200 1300 1300
Stationary - - - - - - 4000 - -= 3000 - -
Office - - - 4000 - - - - - 3500 - -
expenses

15
Transport 8000- - - - - - - - 80000 - 71000 -
Advertiseme - - - - - - - - - - -
nt
Salaries 15000 15000 15000 15000 15000 15000 15000 1-5000 15000 15000 15000 15000

License - - 900 3000 - - - - - - - -

Insurance 4000 - 100200 - - 4000 - - - - - -
Electricity 900 800 312963 600 700 800 700 700 650 700 800 900
2
Totalexpense 193400 101000 120062 100800 103030 107230 109300 109200 192250 123980 195680 124800
s 782
Net cash 154098 599058 361543 395496 - - - - - - -
6 4 2 64
total 294256 893315 156782 552276 - - - - - - -
6 14 8

16
5.4 PROJECTED INCOME STATEMENT FIRST YEAR
Cash out flow Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Sales 500000 200000 600900 700000 750000 800000 850000 85850 900000 920000 940000 900000

Purchase 300000 150000 200000 300000 350000 450000 470000 48580 450000 690000 705000 750000

Gross profit 800000 350000 800000 1000000 1100000 125000 132000 134430 1350000 1616000 1645000 1750000

Expenses 21650 3900 2600 1950 1628 1548 1460 1400 1335 2070 4280 1235

Salaries 1300 1300 1000 1000 900 950 950 900 850 920 930 900

Rent 8000 500 800 600 400 250 188 190 170 190 80 80 80

Water 750 450 350 200 180 125 140 150 125 140 130 110

Telephone 600 700 - - - - - - - 800 - -

Electricity - 650 500 250 200 180 180 180 170 120 140 145

Advertisement 3000 - - - - - - - - - - -

17
Insurance 4000 - - - - - - - - - 3000 -

License - - - - - - - - - - - -

Loan repair 3500 - - - - - - - - - - -

Stationary 78350 - 150 100 98 105 - - - - - -

Provision for 15567000 346100 797400 998050 1098372 1248452 136030 1348665 1607930 1607930 1640720 1748765
tax

Net profit 756000 17305 39870 5949186 624226 68015 6743325 803965 803965 82036 8743825

Net tax 756000 328795 757550 499025 549186 624226 68015 5394660 15275335 15275335 1558684 6995060

18
5.5 YEAR II
Cash out Jan Feb Mar April May June July Aug Sept Oct Nov Dec
flow
Sales 80000 850000 910000 920000 94000 955000 960000 968000 972000 982000 990000 995000
0
Purchase 45000 380000 480000 485000 440000 455000 720000 726000 729000 736000 742500 174125
0 0
Growth profit 12500 123000 139000 140000 138000 141000 103200 169400 1044900 718500 173250 174125
00 0 0 0 0 0 0 0 0
Expenses 18830 14490 17480 15110 14930 13930 14380 15480 17500 16980 18980 9000
Salaries 10000 10000 10000 10000 10000 9000 9000 8500 10000 10000 10000 10000
Rent 3500 3500 3500 4000 4000 4000 4000 6000 6000 6000 8000 8000
Water 180 190 180 180 180 180 180 180 200 200 1 80 250
Telephone - - - 180 - - 500 - 500 - - -
Electricity 800 800 800 750 750 750 800800 800 800 800 800 750
Advertiseme - - - - - - - - - - - -
nt
Insurance 4000 - - - - - - - - - - -
License - - 3000 - - - - - - - - -
Loan - - - - - - - - - - - -
repayment

19
Stationary 350 - - - - - - - - - - -
Net profit 12311 122451 137252 138989 137407 139607 101762 167852 1043150 170152 171352 155120
before tax 70 0 0 0 0 0 0 0 0 0
Proprietorshi 61558 612255 68626 694945 687035 698035 50881 83926 521573 85076 85676 7756
p 5
Net profit 61558 612255 130389 694945 687035 698035 966739 159459 9909987 161444 162184 147364
5 4 4 4

5.6 YEAR III

Cash out Jan Feb Mar April May June July Aug Sept Oct Nov Dec
flow
Sales 750000 65000 55000 45000 600000 600000 45000 730000 740000 800000 750000 800000
0 0 0
20
Purchase 562500 48750 41250 33750 450000 450000 0 547500 555000 600000 562500 660000
0 0 0
33750
0
Growth 131250 16250 96250 76750 105000 105000 78750 127500 1295000 140000 131500 154000
profit 0 0 0 0 0
Expenses 23700 20150 12000 19150 18150 20350 23500 20500 19950 112000 20400 21500
Salaries 10000 10000 10000 9000 9000 9000 9000 9000 1000 9000 10000 10000
Rent 9000 9000 800 9000 9000 9000 9000 9000 8500 8500 9000 10000
Water 350 300 300 300 300 450 500 500 500 450 450 500
Telephone 450 400 400 400 400 400 500 500 450 450 500 500
Electricity 650 450 500 450 450 500 500 500 500 450 450 -
Advertiseme - - - - - - - - - - - -
nt
Insurance - - - - - - 3000 - - - -
License 3000 - - - - -
Loan - - - - - - - - - - -
repayment
Stationary 350 125700
0
Rent profit 128880 14235 95050 76835 103185 102965 76400 62850 1275059 138880 129210 151850
before tax 0 0 0 0 0 0 0 0 0 0 0

21
Provision 5% 64440 71175 47552 38417 515925 514825 38200 119150 637525 69440 64605 45555
tax 5 5
Net profit 122436 71175 90297 38417 515925 514825 72580 119150 637525 131936 122749 147294
0 5 0 0 5 5

22
 CHAPTER SIX

6.0 BALANCE SHEET

HABON HOLDING HARDWARE

FARHAN ABDI

BALANCE SHEET

25TH MAY 2016

FIXED ASSETS LIABILITIES ASSETS

Furniture 5000 Long term liabilities- 150,000

Vehicles 3500 Family contribution- 300,000

Building 150 Owners equity- 80,000

Stationary 200 Bank over draft- 100,000

Fun 200 Total long term-630,000

Electricity 180 Short term liabilities

Water -190 Creditors- 92420

TOTAL ASSETS 9420 Total

Current assets 26000

Cash at bank 178000

Debtor 10000

Stock 500,000

Total current assets 7133000

Total assets 722420

23