EXECUTIVE SUMMARY

Penta Hardware Store, is a standard hardware store that will be located in Eastleigh, 4 th street. I have been
able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into the design of the
kind of standard hardware store that I intend launching and the facility is located in a corner piece along a
major road close to one of the largest residential estates in Nairobi.

Penta hardware store will retail products such as hardware tools, plumbing and electrical supplies, lawn,
garden and farm supplies, paint and lumber and other building materials from different manufacturers in
Kenya and abroad. I am set to service a wide range of clientele in and around Kenya.

I am aware that there are several large and small chains of Hardware store outlets all around Eastleigh,
which is why I spent time and resources to conduct a thorough feasibility studies and market survey so as
to be well positioned to favorably compete with all our competitors.

I have an online – service option for my customers, and my outlet is well secured with various payments
of options. Penta Hardware Stores will ensure that all my customers are given first class treatment
whenever they visit my store.

I have a CRM (Customer Relation Management) software that will enable us manage a one-on-one
relationship with my customers no matter how large my customer base may grow to. I will ensure that we
get my customers involved in the selection of brands that will be in my store and also when making some
business decisions that directly affects them.

Penta Hardware Stores will at all times demonstrate her commitment to sustainability, both individually
and as a firm by actively participating in our communities and integrating sustainable business practices
wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’
needs precisely and completely whenever they patronize my products. Penta Hardware Stores is a Sole
proprietorship business owned by Emmanuel Akolo.

Emmanuel Akolo has a Diploma in Building Technology (Building Construction) with over 2 years of
experience in the retailing stores industry, working for some of the leading brands in Kenya. Although the
business is launching out with just one outlet in Nairobi, but there is a plan to open other outlets in major
cities in Kenya.

BACKGROUND OF OWNER

Penta Hardware Stores is a business owned by Emmanuel Akolo. Emmanuel Akolo is a young
enthusiastic entrepreneur (born in 1993) who decided to hold the status of his business at par,
after completing his university education at Technical university of Kenya. Emmanuel Akolo has
a Diploma in Building Technology (Building Construction) with over 2 years of experience in
the retailing stores industry, working for some of the leading brands in Kenya. Emmanuel lives
in Eastleigh-Nairobi and is single.

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Penta Hardware Stores is projected to run at Ksh. 3.5M, personal saving accrued is Ksh. 2M. The
remaining Ksh. 1.5M will be borrowed from a trusted source of business finance in Kenya, KCB
(Kenya Commercial Bank). The money shall be channeled to different parts of business for its
start and exponential growth.

NATURE OF BUSINESS

Penta Hardware Store, is a standard hardware store that will be located in Eastleigh, 4th street. I
have been able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into
the design of the kind of standard hardware store that I intend launching and the facility is
located in a corner piece along a major road close to one of the largest residential estates in
Nairobi.

The business shall adopt a sole proprietorship form where Emmanuel Akolo will be the liable
person to run and oversee the growth of the business. Our major activities are;

Retailing hardware, Retailing tools and equipment, Retailing plumbing fixtures and fittings,
Retailing electrical supplies, Retailing paint and supplies, Retailing garden products and
equipment

Other activities include import and export of construction materials, consultancy services,
running of construction material workshop among many others.

Eastleigh is the next heart of lower Nairobi with a lot of investors with a need to construct
residential houses to meet the high demand of residential houses, this will be the best location in
terms of customer for Penta Hardware store.

PRODUCT AND SERVICES

Penta Hardware Stores, is in the hardware stores industry to service a wide range of clients and of course
to make profits, which is why I will go all the way to make available a wide range of hardware and other
related products from top manufacturing brands in Kenya and other countries of the world.

Our product offerings are listed below;

Retailing hardware

Retailing tools and equipment

Retailing plumbing fixtures and fittings

Retailing electrical supplies

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Retailing paint and supplies

Retailing garden products and equipment

Our services are listed below;

Consultancy services

Transportation services

Repair and maintenance

Construction among others.

Main feature of product

I offer original products from genuine and most trusted manufacturers and suppliers all over Kenya and
other parts of the world. Penta Hardware store offers a variety of products; at an affordable cost,
genuine products that will serve the purpose intended, the products that will serve you for a long
time. The 21st century offers the best in terms of technology. It’s a technological error. Penta
brings technology to clients and with proper advice from our experts, the final render of the
products becomes much interesting.

GOALS AND OBJECTIVES

Goal

To be my boss and to make money.

Objectives

To increase my capital by 10% by end of the year.

Employ two more employees every year.

Increase sales by 10% every month.

Attract a pull of loyal customers by the end of the year.

Open other branches in every two years.

SWOT Analysis

My intention of starting just one outlet of my hardware retail store in Eastleigh is to test run the business
for a period of 2 to 4 years to know if I will invest more money, expand the business and then open other
outlets all over major towns in Nairobi and key cities in Kenya.

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I am quite aware that there are several hardware retails stores all over Nairobi and even in the same
location where I intend locating mine, which is why I am following the due process of establishing a
business.

I know that if a proper SWOT analysis is conducted for my business, I will be able to position my
business to maximize my strength, leverage on the opportunities that will be available to me, mitigate my
risks and be equipped to confront my threats.

Penta Hardware Stores employed the services of a Business Analyst with bias in retailing to help me
conduct a thorough SWOT analysis and to help me create a business model that will help me achieve my
business goals and objectives. This is the summary of the SWOT analysis that was conducted for Penta
Hardware Stores.

Strength:

Ability to control stock on hand, experienced work force and having a loyal customer base are some of
my core strength. So also, my location, the business model I will be operating, varieties of payment
options, wide range of hardware and other related products from different manufacturing brand and my
excellent customer service culture will definitely count as a plus for Penta Hardware Stores.

Weakness:

A major weakness that may count against us is the fact that I am a new hardware retail store outlet in
Eastleigh and I don’t have the financial capacity to compete with multi – million dollars’ hardware retail
store outlets like Sango and Kikay Hardware, Jomba and Mathenge and Son Hardware when it comes to
retailing at rock bottom prices.

Opportunities:

The fact that I am going to be operating my hardware retail store in a corner piece property along a major
road close to one of the largest residential estates in Nairobi provides us with unlimited opportunities to
sell my hardware and other related products to a large number of individuals.

I have been able to conduct thorough feasibility studies and market survey and I know what my potential
clients will be looking for when they visit my hardware store outlets.

Threat:

Just like any other business, one of the major threats that I am likely going to face is economic downturn.
Another threat that may likely confront us is the arrival of a new hardware store in same location where
mine is located. So also, unfavorable government policies may also pose a threat to businesses such as
mine.

Penta Hardware Stores do not intend to start a hardware retail store business like the usual mom and pop
business around the street corner; my intention of starting a hardware retail store business is to build a
standard retail store outlet in Nairobi.

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Although my hardware retail store business might not be as big as Sango and Kikay Hardware, Jomba
and Mathenge and Son Hardware, but will ensure that I put the right structures in place that will support
the kind of growth that I have in mind while setting up the business.

I will ensure that I hire people that are qualified, honest, customer centric and are ready to work to help us
build a prosperous business that will benefit all the stakeholders.

Penta Hardware Stores do not intend to start a hardware retail store business like the usual mom and pop
business around the street corner; our intention of starting a hardware retail store business is to build a
standard retail store outlet in Nairobi.

Although our hardware retail store business might not be as big as Ace Hardware, Do It Best and True
Value Company, but will ensure that we put the right structures in place that will support the kind of
growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to
help us build a prosperous business that will benefit all the stakeholders.

ENTRY STRATEGY

A close study of the hardware stores industry reveals that the market has become much more intensely
competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and
proactive if you must survive in this industry.

I are aware of the stiff competition and we are well prepared to compete favorably with other leading
stores in Eastleigh and throughout Nairobi. Penta Hardware Stores is launching a standard one stop
hardware store that will indeed become the preferred choice of residents of Eastleigh and every other
location where our outlets will be opened.

One thing is certain; we will ensure that we have a wide range of hardware and other related products
from leading manufacturers available in our store at all times. It will be difficult for customers to visit our
store and not see the type of hardware they are looking for. Our excellent customer service culture, online
store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within
our category in the industry meaning that they will be more than willing to build the business with us and
help deliver our set goals and achieve all our aims and objectives. We will also give good working
conditions and commissions to freelance sales agents that we will recruit from time to time.

Before choosing a location for Penta Hardware Stores,we conducted a thorough market survey and
feasibility studies in order for us to penetrate the available market. We have detailed information and data
that we were able to utilize to structure our business to attract the number of customers we want to attract
per time.

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We hired experts who have good understanding of the hardware retail industry to help us develop
marketing strategies that will help us achieve our business goal of winning a larger percentage of the
available market in Nairobi.

In order to continue to be in business and grow, we must continue to sell the hardware and other related
products that are available in our store which is why we will go all out to empower or sales and marketing
team to deliver.

In summary, Penta Hardware Stores will adopt the following sales and marketing approach to win
customers over;Introduce our hardware store by sending introductory letters alongside our brochure to
residents, businesses and other key stakeholders in Eastleigh and Nairobi as a whole.

Ensure that we have a wide range of hardware and other related products from different brands at all
times.

Make use of attractive hand bills to create awareness and also to give direction to our store.

Position our signage/flexi banners at strategic places around Eastleigh.

Position our greeters to welcome and direct potential customers.

Create a loyalty plan that will enable us reward our regular customers.

Engage in roadshows within our neighborhood to create awareness for our hardware retail store.

List our business and products on yellow pages ads (local directories).

Leverage on the internet to promote our business.

Engage in direct marketing and sales

Encourage the use of word of mouth marketing (referrals).

Join local chambers of commerce and industries to network and market our products.

Place adverts on community-based newspapers, radio and TV stations.

Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to hardware retail stores, it is
normal for consumers to go to places where they can get hardware and other related products at cheaper
price.

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within
the first 6 to 12 months, our products will be sold a little bit below the average price of various hardware
stores in Nairobi. We have put in place business strategies that will help us run on low profits for a period
of 6 months; it is a way of encouraging people to buy into our brand.

Payment Options

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The payment policy adopted by Penta Hardware Stores is all inclusive because we are quite aware that
different customers prefer different payment options as it suits them but at the same time, we will ensure
that we abide by the financial rules and regulation of Kenya. Here are the payment options that Penta
Hardware Stores will make available to her clients;

Payment via bank transfer

Payment with cash

Payment via credit cards/Point of Sale Machines (POS Machines)

Payment via online bank transfer

Payment via check

Payment via mobile money transfer

Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our
hardware and other related purchases without any stress on their part. Our bank account numbers will be
made available on our website and promotional materials to clients who may want to deposit cash or
make online transfer for our products.

TRENDS THAT SIGNAL GROWTH OR OPPORTUNITIES

Those who patronize hardware stores cut across all genders above 18 years with the financial means, and
who own an apartment or office/business hence the target market for the hardware store business is all
encompassing. In essence, your target market can’t be restricted to just a group of people but all those
who reside in and around our store location. In view of that, we have positioned our hardware retail store
to service the residents of fourth Street, Eastleigh Nairobi and every other location where franchise and
outlets of our hardware retail stores will be located.

I have conducted our market research and feasibility studies and we have ideas of what our target market
would be expecting from us. We are in business to retail a wide range of hardware and other related
products to the following groups of people and corporate organizations;

Construction and Real Estate Companies

Banks, Insurance Companies and other related Financial Institutions

Real Estate Owners, Developers, and Contractors

The Government (Public works department)

Schools (High Schools, Colleges and Universities)

Hotels

Sport Facilities

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Individuals and households

The future of a business lies in the number of loyal customers that they have, the capacity and
competence of their employees, their investment strategy and the business structure. If all of these factors
are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Penta Hardware Stores is to build a business that will survive off its
own cash flow without the need for injecting finance from external sources once the business is officially
running.

I know that one of the ways of gaining approval and winning customers over is to retail our wide range of
products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint
and sundries and lumber and other building materials from different manufacturers (brands) a little bit
cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin
for a while.

Penta Hardware Stores will make sure that the right foundation, structures and processes are put in place
to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive
our business to greater heights and training and retraining of our workforce is at the top burner.

I know that if that is put in place, we will be able to successfully hire and retain the best hands we can get
in the industry; they will be more committed to help us build the business of our dreams.

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