Professional Documents
Culture Documents
Name: Kiprono Renny Langat
Name: Kiprono Renny Langat
SIGNATURE: ……………………………
MA3
(E-SHUTTLE AND CAR-POOLING SERVICES).
DECLARATION.
I declare that this is my own original work and has not been presented by any other student.
Signature…………………………………………………………
Date…………………………………………………………………
2
Contents
CHAPTER ONE: BUSINESS DESCRIPTION......................................................................................4
1.1 BUSINESS NAME................................................................................................................................4
1.2 BUSINESS LOCATION AND ADDRESS.......................................................................................4
1.3 FORM OF BUSINESS OWNERSHIP..............................................................................................4
1.4 TYPE OF BUSINESS.......................................................................................................................6
1.5 SERVICE OFFERED........................................................................................................................6
1.6 JUSTIFICATION OF BUSINESS OPPORTUNITY........................................................................7
1.7 INDUSTRY.......................................................................................................................................8
1.8 BUSINESS GOALS..........................................................................................................................9
1.8.1 Short-term goals.........................................................................................................................9
1.8.2 Long-term goals..........................................................................................................................9
1.9 BUSINESS ENTRY AND GROWTH STRATEGY.........................................................................9
CHAPTER TWO: THE MARKETING PLAN....................................................................................10
2.0 INTRODUCTION...........................................................................................................................10
2.1 THE CUSTOMERS........................................................................................................................10
2.1.1 Regular Customers....................................................................................................................10
2.1.2 On-time Customers...................................................................................................................10
2.2 COMPETITION..............................................................................................................................11
2.4 MARKET SHARE..........................................................................................................................12
2.5 METHODS OF PROMOTION AND ADVERTISEMENT............................................................13
2.5.1 Promotion.................................................................................................................................13
2.5.2 Advertising...............................................................................................................................13
2.6 DISTRIBUTION OF THE SERVICE.............................................................................................13
CHAPTER THREE: ORGANIZATION AND MANAGEMENT PLAN...........................................14
3.1 WHO WILL BE THE OVERALL MANAGER OF THE BUSINESS............................................14
3.2 PERSONNEL, NUMBER QUALIFICATIONS AND DUTIES.....................................................16
3.2.1 Other personnel.........................................................................................................................16
3.3 RECRUITMENT, TRAINING AND PROMOTION......................................................................18
3.3.1 Recruitment..............................................................................................................................18
3.3.2 Training....................................................................................................................................18
3
3.3.3 Promotion.................................................................................................................................18
3.4 REMUNERATIONS AND INCENTIVES.....................................................................................19
3.4.1 Remuneration............................................................................................................................19
3.4.2 Incentives..................................................................................................................................19
3.5 LICENSES, PERMIT AND BYLAWS...........................................................................................19
3.6 SUPPORT SERVICES....................................................................................................................20
CHAPTER FOUR: OPERATIONAL/PRODUCTION PLAN............................................................22
4.1 PRODUCTION FACILITIES.........................................................................................................22
4.1.2 The business premises layout....................................................................................................23
4.2 OPERATIONAL/ PRODUCTION STRATEGY............................................................................24
4.3 OPERATIONAL PROCESS...........................................................................................................26
CHAPTER FIVE: FINANCIAL PLAN.................................................................................................27
5.1 PRE-OPERATIONAL COSTS.......................................................................................................27
5.2 WORKING CAPITAL ESTIMATION...........................................................................................27
5.3 THE PROJECTED CASHFLOW STATEMENTS.........................................................................28
5.4 PRO-FORMA INCOME STATEMENTS.......................................................................................30
5.5 PRO-FORMA STATEMENT OF FINANCIAL POSITION..........................................................32
5.6 BREAK-EVEN POINT CALCULATION......................................................................................33
5.7 DESIRED FINANCING........................................................................................................................34
5.8 PROPOSED CAPITALIZATION............................................................................................................34
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our society and the many attempts to eradicate this problem have not really bore any fruits. It is
for this reason that I decided to look at the problem in a different way. There has been a sudden
spike in employed population leading to import of middle-class cars. Each and every one is
struggling to own a combustible engine for no reasons greater than clout. In a situation where a
regulated bus service that will help this employed population together with students with
learning facilities in town get to their various destinations in time and very efficiently it will
eliminate the many cars in our roads since eventually, they will be saving fuel costs and still
at a central location. The app will be hosted on Google’s servers and Apple Store’s. For the
headquarters it shall be at Kipro Center, Westlands Nairobi. The address will be:
Tel: 0708765355
Email: info@ma3.org
decided to go into business. You do not need a lawyer. All you need to do is register your choice
of business name with the registrar of Companies by filling a simple form and paying a small
registration fee.
2. Complete Control- You have complete control over your business. No one else but you make
3. Flexibility- You are able to respond quickly to business needs in day-to-day management
government control. You and your business are considered, in the eyes of the law, to be one and
the same.
The amount to invest in business is kshs.2,800,000. The source of income would be loan,
Budget:
Kshs. 500,000- For leasing the building from which to operate the business.
Kshs. 1,300,000- For buying equipment like servers, computers, networking devices.
Kshs. 350,000- To cater for the expenses of the business and also to cater for employees’
monthly salaries/wages.
was emergence of e-taxi services with the likes of Uber but most people could not afford to use it
as an everyday means of transport since actually cost-wise it is double that of a person who fuels
his car every day. Furthermore, pushing for such a service is only worsening our already present
situation; congestion. Ma3 is set to be launched by the second week of September, not later than
is a service. The idea is to regulate public transport via an app. There are two versions of the app
that exist: Ma3Driver and Ma3. The latter is for customers while the former is for drivers. A
driver signs up by visiting our headquarters with his bus together with an original logbook of the
car, his original National ID, original driver’s license, certificate of good conduct and a Huduma
Number. After verification of the documents and the bus has met standards the driver is given his
log in credentials to the app the undergoes a two-week training of how to make trips, navigation
routes and how to use the app generally. A customer’s work is easy as signing up with their
2. Ability to focus and prioritize- being able to prioritize your time and focus on the top
3. Proud, Yet Humble- it is difficult to be successful without having pride in what you do.
Success should be recognized and celebrated. It is just as important to accept responsibility when
4. Determined- successful business owner should be persistent and not easily deterred.
shared vehicles could make our cities dramatically more livable. The research found that traffic
emissions were reduced by one-third, and 95 percent less space was required for public parking
and the vehicle fleet necessary would only be 3 percent of today’s fleet. Passengers, for the most
part, wouldn’t have to wait around for transfers, and spaces previously devoted to parking would
make way for open, livable spaces. The study does point out, however, that the benefits wouldn’t
be felt until private cars on the road are minimized by at least 60 percent.
The main idea behind e-shuttle is to reduce the number of private cars on the road by providing a
larger facility which carriers higher number of passengers in much less space than individual
cars, which lowers congestion. This will help reduce air pollution from idling vehicles, and
drivers will avoid stress and fatigue which comes from daily driving in highly congested areas.
other public transport facilities. The private vehicles emit about double carbon monoxide and
other volatile organic compounds as public vehicles. E-shuttle will reduce the number of cars on
the road which in turn reduces the pollution caused by individual cars.
E-shuttle development can both improve the usefulness and efficiency of public transport system
as well increased business for commercial developments which will impact the economy
positively. They will also offer considerable savings in labor, materials and energy over private
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in the sector, 50,000 job opportunities are created and supported. Further, an investment of $10
million in public transport generates about $32 million in increased business sales, and
residential property values for homes located near public transport. The shuttle will see an
overall decrease in the amount of energy necessary for transportation as it is more fuel efficient
per passenger mile. The use of e-shuttle will definitely save individuals a significant amount of
money each month because they will avoid gas, maintenance, parking, and other expenses.
The shuttle transport will also help free up a significant amount of time and attention, as
someone else is driving, this can give you humble time that could been otherwise wasted,
reading, working, studying, or being entertained instead of having to watch the road. Safety of
the passenger is also highly guaranteed as the vehicles are maintained much more regularly than
a personal car, the professional training is given to drivers before they are officially licensed.
Besides, the e-shuttle is linked to healthier lifestyles, as people who use public transport do more
physical activity per day than those who use private cars, just from walking to and from shuttle
stations and their final destinations. These clearly justifies the need to embrace the compromise
1.7 INDUSTRY
The matatu industry in Kenya has been present since time immemorial and often even when
celebrities visit the country they are amazed at the passion and love we have for these means of
transport. But when you think about it, the industry is wanting due to the cases of road carnages
the undisciplined matatu driver cause. Therefore, bringing in a well-regulated service will
c) Increasing the supply- this basically means that cars are available almost every 20-
1. Advertising the app online heavily via social media sites and target marketing.
GROWTH STRATEGY
For growth strategy the business will:
1. Develop good relation with higher financial institution for easy access of financial assistance.
2. Expansion through product modification for example adding more routes covered by our
buses and improving app User Interface
3. Ensuring for reliability and availability of the service to the customers. This is because many
businesses of this nature do collapse due to non- availability as the customers hate absence of
services which they have already grown accustomed to.
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now is relying more on technology and staying relevant means having customers to use your
product. Smartphones majorly are split into android and apple devices but the likes of Blackberry
still do exist and windows phones too. The app has been developed for these two major
platforms with intermediate bytecode still to be compiled to support other platforms. Target
advertising will be done on residents of Nairobi through their social media platforms and
their work or school schedule demands as so. The following table clusters them with the size of
population we are capable of handling in a day spread throughout the day not once.1
1
This means the total number of people that the buses carry per day. This is like the number or non-repetitive
requests that can be made in a day.
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2.2 COMPETITION
Competition rises when another entity is trying to solve the same problem as you are but in a more
efficient way. The following are some examples
i. E-taxi services
These include the likes of Uber, Taxify, Little Cab, Mondo. They provide almost same
service but in a smaller scale.
ii. Matatu Saccos
Currently this is the main competitor as it is the one that too root ages ago and removing it is
quite honestly not going to be an easy task.
iii. Other E-shuttle services
They include the likes of Swvl and Little Shuttle but they too have not taken route as such.
SWOT Analysis - This is the strengths, weaknesses, opportunities and threats and is a
structured planning method that evaluates those four elements of an organization or
business venture.
Strengths – Characteristics of the business that give it an advantage over others.
Weaknesses – Characteristics of the business that place the business at a disadvantage
relative to others.
Opportunities – Elements in the environment that the business could exploit to its
advantage.
Threats – Elements in the environment that could cause trouble for the business.
Ma3 Services has the potential to growth, despite customers unpredictability of government
policies towards the transport sector
PERCENTAGE
2.5.1 Promotion
There will be an in-app promotion where by you can get free rides if someone installs using your
promo code. Furthermore, we are linking up to even hosts such that customers can get to their
events via our services at a fee. In turn we send push notifications with promo codes for
attendees.
2.5.2 Advertising
a) Through the use of posters and bill boards
c) Target marketing using social media platforms (Facebook, Twitter and Instagram)
Developers Marketers
Riders Drivers
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MANAGER
DIRECTOR
a. Academic.
b. Professional qualifications.
4. Managers may be former programmers and developers who have earned promotion through
1. Set Objectives.
Set objectives and establish the goals that employees need to reach.
2. Organize.
Organize tasks, coordinate his/her allocation and arrange the rights and roles for the right people.
In order to mold staffers into cooperative teams and to convey information continually up, down
That measure results and clarify outcomes to ensure that the firm is moving in the right direction.
5. Develop People.
Develop people through finding, training and nurturing employees, a firm’s primary resource.
1. Provides Guidance.
Employee development happens at all levels of organization. Employees look to the managers
work with company executive to improve managerial performance, and the executives draw on
The hierarchy of authority provides a clear career path for each employee in the organization.
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3. Communication.
A hierarchy helps to establish efficient communication paths between employees and divisions in
the business.
4. Accountability.
In the hierarchy of authority should not be used to point fingers and accuse staff members of
being incompetent. A clearly defined hierarchy creates a path of accountability for every project
a. Academic.
b. Professional qualifications.
3. Establishes and maintains a positive work environment that supports a high Team Member
morale.
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2. Driver
a. Academic.
High School diploma and through apprenticeship program or by attending technical school. No
formal education is required.
b. Professional qualifications.
1. They usually study topics such as social skills and marketing skills.
2. Start as a driver’s assistant and progress into a full-fledged driver as they learn service
techniques.
1. On-time- Drivers should always keep time as keeping the riders waiting means a punishment
on the driver
2. Math skills- Basic math skills is needed to calculate money and transact it.
3. Physical stamina- Drivers should be able to drive around the city routes for long hours.
3.Moderator
a. Academic.
b. Professional qualifications.
1. Effective communication.
4. Developer
a. Academic.
Bachelors’ degree in Computer Science and related studies with background in mobile app
development
b. Professional qualifications.
4. Be able to stand for long periods and have a great deal of stamina to attend to customer’s
needs.
3. Headhunting (raiding or poaching)- involves looking around for the best person to occupy the
position.
4. Hiring at the gate- involves hiring people who present themselves at the business gate.
6. Unsolicited applications- from those who walk in and deliver applications or write their
applications.
3.3.2 Training
Training of drivers is done upon the completion of registering and verification process and goes
on for two weeks.
3.3.3 Promotion.
1. Performance- promoting employees through assessing their performance over a given period
of time. This is based on customer reviews.
4. Assessment of potential- amount of potential one has in him to perform in the future or at a
new position should also be assessed before deciding about promotions.
5. Training- amount of training an employee has been given or the level to which he/she has also
been groomed acts as a deciding factor.
1. Loyalty and dependability- a candidate that is dedicated is more likely to be right person for
the job as he/she will have the goals of the business and their team members in mind.
It is essential that HR meets with other departments to get an idea of how the candidates work
within them.
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3. Examining employee records as well as consulting with other departments within the
organization. Also keeping detailed employee records can help HR departments vet candidates.
3.4.2 Incentives.
Is something that motivates an individual to perform an action.
a. Operational license.
One needs a license from the state and county in order to operate a business within the city that
deals with members of the public
b. Business license.
Due to the fact that we are generating revenue we will need a business license too.
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2. BYLAWS.
In addition to complying with road safety laws specific to your state, you may be required by
your state laws to acquire specific permits and licenses before you can start and run a transport
business.
b. Legal structure.
Ma3 Service business must set up a legal structure of the service and establish a tax ID for the
business. You may establish a corporation and apply for an employer identification number with
the KRA.
d. Taxes.
You must collect sales tax if your state mandates sales tax on revenue collected. This money is
then turned over turned over to your state’s revenue department. You must file tax forms with
your state to obtain a tax ID number so that you may pay the required sales tax to the revenue
department.
Commercial Bank Of Africa, P.O BOX 7397, Nairobi. It Is located in Wabera Street at Central
Bank District (CBD).
a. Savings.
If one run a business, you will know how it can be trying to juggle the demands of managing
staff, customers and cash flow. Savings makes things easier, you could look at opening a
business savings account, as well as help things run more smoothly.
b. Credit Cards.
Ma3 services may need some short-term finances as the business needs some finances to move
on. It may acquire a business credit card which is convenient way to quickly access financing for
short-term needs and can increase the business purchasing power.
c. Lines to credit.
A business lines of credit can help a business balance the ups and downs of business cycles.
Because of the cyclical nature of the business, you may need to borrow money to meet your
businesses short-term needs or goals.
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d. Loans.
Ma3 Services will need a loan to cater for some additional expenses. Hence, will borrow a loan
from CBA bank as the rate of interest is the same and payment takes a specific period of time.
2. INSURANCE.
a. Catastrophic Loss.
Business Insurance protects a business from closing due to a catastrophic loss for example, fires
and floods have been the end of many business. While the business carries insurance against
these types of losses, closure and loss are only temporary instead of permanent.
b. Liability.
Business liability insurance covers accidents that occur on the business premises, roads and
mishaps that occur during normal business operations on and off premises.
c. Theft.
Replacement insurance protects a business in the event equipment is stolen, replacing the
missing items and paying for repairs from damage caused by the invasion.
d. Level of Coverage.
How much insurance to carry will depend on your industry the business structure and the amount
of assets your business has. The location of the business, whether the building is leased or owned
will also be a factor.
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TOTAL
MANAGER’S
OFFICE.
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ENTRANCE
Driver’s
Room
SECURIT KITCHEN.
Y DINING ROOM
GUARD.
FOODSTORE.
RESTROOM
GENTS/LADIES.
STORE. DIRECTOR’S
OFFICE
Supervisor 50,000
Baker 42,000
Cashier 30,000
Waiter 18,000
TOTAL COST KSHS. 205,000
ITEMS AMOUNT(KSHS)
Insurance 2,000
Transport 1,500
Electricity 2,000
Training 5,000
Materials 11,800
Salaries 205,000
Lease 60,000
Water 1,500
TOTAL OVERHEADS COSTS. KSHS. 288,800
ITEMS AMOUNT(KSHS)
Cost of raw materials 11,800
Cost of labor 205,000
Overheads costs 288,800
TOTAL COST OF KSHS.505,600
PRODUCTION/OPERATION.
25
PARTIC JA FE M AP M JU JU AU SE O N DE TOTAL
ULARS N B AR RI AY NE LY G PT CT O C (KSHS)
L V
CASH
IN
FLOW.
27
Opening 50,0 50, 55, 58, 67, 60, 70, 55, 43, 80, 85, 75,0 686,000
Balance/ 00 00 00 000 00 00 00 00 00 00 00 00
balance 0 0 0 0 0 0 0 0 0
b/f
Owner’s 100, _ _ _ _ _ _ _ _ _ _ _ 100,000
Equity 000
Bank 600, _ _ _ _ _ _ _ _ _ _ _ 600,000
loan 000
Cash 24,0 25, 10, 10, 7,5 5,5 6,0 7,5 5,5 6,5 7,5 8,00 123,000
sales 00 00 00 000 00 00 00 00 00 00 00 0
0 0
Debtors _ _ _ _ _ _ _ 20, 25, _ _ 50,0 95,000
00 00 00
0 0
TOTAL 774, 75, 65, 68, 74, 65, 76, 82, 73, 86, 92, 133, 1,604,00
CASH 000 00 00 000 00 00 00 50 50 50 50 000 0
IN 0 0 0 0 0 0 0 0 0
FLOW
CASH
OUTFL
OW
Pre- 10,0 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10,0 120,000
operation 00 00 00 000 00 00 00 00 00 00 00 00
al costs. 0 0 0 0 0 0 0 0 0
Purchase 20,0 20, 20, 20, 20, 20, 20, 20, 20, 20, 20, 20,0 240,000
s. 00 00 00 000 00 00 00 00 00 00 00 00
0 0 0 0 0 0 0 0 0
Payment 25,0 10, _ _ _ _ _ _ _ _ _ _ 35,000
to 00 00
creditors. 0
Salaries 15,0 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15,0 180,000
and 00 00 00 000 00 00 00 00 00 00 00 00
wages. 0 0 0 0 0 0 0 0 0
Lease 60,0 _ _ _ _ _ __ _ _ _ _ _ 60,000
00
Electricit 500 50 50 500 50 50 50 50 50 50 50 500 6,000
y 0 0 0 0 0 0 0 0 0
Water 500 50 50 500 50 50 50 50 50 50 50 500 6,000
0 0 0 0 0 0 0 0 0
Telephon 300 30 30 300 30 30 30 30 30 30 30 300 3,600
e. 0 0 0 0 0 0 0 0 0
Mail 200 20 20 200 20 20 20 20 20 20 20 200 2,400
0 0 0 0 0 0 0 0 0
Transport 2,50 2,5 2,5 2,5 2,5 2,5 2,5 2,5 2,5 2,5 2,5 2,50 30,000
0 00 00 00 00 00 00 00 00 00 00 0
Advertisi _ _ _ _ _ _ _ _ _ 15, _ _ 25,000
ng 00
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0
Insurance 1,00 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,00 12,000
0 00 00 00 00 00 00 00 00 00 00 0
Loan 5,00 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,0 5,00 60,000
repayme 0 00 00 00 00 00 00 00 00 00 00 0
nt.
Interest 50 50 50 50 50 50 50 50 50 50 50 50 600
on loan
Taxes 500 50 50 500 50 50 50 50 50 50 50 500 6,000
0 0 0 0 0 0 0 0 0
TOTAL 140, 65, 55, 55, 55, 55, 55, 55, 55, 55, 55, 55,5 786,600
CASH 550 55 55 550 55 55 55 55 55 55 55 50
OUTFL 0 0 0 0 0 0 0 0 0
OW
NET 633, 9,4 9,4 12, 18, 9,9 20, 26, 17, 30, 36, 77,4 817,400
CASH 450 50 50 450 95 50 45 95 95 95 95 50
FOR 0 0 0 0 0 0
THE
MONTH
*It is assumed the lending interest rate remains 10% of bank loan repayment for the next three
years.
LIABILITIES
Current Liabilities
Creditors 249,000 61,000 179,000
Bank Overdraft 400,000 50,000 350,000
Total Current 649,000 111,000 529,000
liabilities
YEAR 1(2019)=KSHS.(918,000-450,000)=KSHS.468,OOO.
YEAR 2(2020)=KSHS.(950,000-550,000)=KSHS.400,000.
YEAR 3(2021)=KSHS.(970,000-550,000)=KSHS.420,000.