MASINDE MULIRO UNIVERSITY OF SCIENCE AND TECHNOLOGY

LECTURER : DR. CHARLES TIBBS

COURSE CODE : BCF 460
COURSE TITLE :BUSINESS MODELLING
TASK :BUSINESS PLAN
DATE OF SUBMISSION :6TH APRIL,2022

GROUP MEMBERS
NAME REGISTRATION NUMBER SIGNATUTRE
PATIENCE WATUKA BCM/B/01-00151/2018
PERIS KAMAU BCM/B/01-00173/2018
HANNAH NGUGI BCM/B/01-00279/2018
HUMPHREY MUTSAMI BCM/B/01-00284/2018
KEVIN NANDWA BCM/B/01-02381/2018

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DIRECTORS NGARA SASA LTD

PATIENCE WATUKA
HUMPHREY MUTSAMI
HANNAH NGUGI
KEVIN NANDWA
PERIS KAMAU

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 TABLE OF CONTENTS
LIST OF FIGURES.............................................................................................................................iv
LIST OF TABLES................................................................................................................................v
THE EXECUTIVE SUMMARY........................................................................................................vi
BUSINESS PLAN SUMMARY.........................................................................................................vii
The Business....................................................................................................................................vii
The Market......................................................................................................................................vii
The Future......................................................................................................................................viii
The Finances...................................................................................................................................viii
1.0 THE BUSINESS.............................................................................................................................1
1.1 Business details...........................................................................................................................1
1.2 Registration details.....................................................................................................................1
1.3 Business location.........................................................................................................................1
1.4 Organization Structure..............................................................................................................2
1.4.1 Organizational chart...........................................................................................................2
1.5 Management and ownership......................................................................................................2
1.5.1 Details of management and ownership..............................................................................3
1.5. 2 Key personnel......................................................................................................................4
1.5.3 Current staff........................................................................................................................4
1.5.6 Required staff.......................................................................................................................5
1.6 Business revenue...................................................................................................................7
1.7 Recruitment options...................................................................................................................7
1.8 Training.......................................................................................................................................7
1.9 Products and services.................................................................................................................7
1.10 Market position.........................................................................................................................8
1.11 Unique selling position.............................................................................................................8
1.12 Anticipated demand.................................................................................................................8
1.13 Pricing strategy.........................................................................................................................9
1.14 Growth potential.......................................................................................................................9
1.15 Innovation.................................................................................................................................9
1.16 Intellectual property strategy..................................................................................................9
1.17 Insurance...................................................................................................................................9
1.18 Workers compensation.............................................................................................................9
1.19 Business assets.........................................................................................................................10
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 1.21 Legal considerations...............................................................................................................11
1.22 Operations...............................................................................................................................11
1.23 Inventory.................................................................................................................................11
1.24 Sustainability plan..................................................................................................................13
1.25 Environmental/resource impacts...........................................................................................13
2.0 THE MARKET.............................................................................................................................13
2.1 Market research.......................................................................................................................13
2.2 Market targets..........................................................................................................................13
2.3 Plant & equipment...................................................................................................................13
2.4 Planed monthly targets of our business are as follows:.........................................................14
2.5 Environmental/industry analysis.............................................................................................14
2.6 Customer demographics..........................................................................................................14
2.8 Customer management............................................................................................................14
2.9 S.W.O.T. analysis......................................................................................................................15
2.10 Competitor details..................................................................................................................15
2.11 Advertising & sales.................................................................................................................16
2.11.1 Advertising & promotional strategy...............................................................................16
2.12 Sales & marketing objectives.................................................................................................17
2.13 Unique selling position...........................................................................................................17
3.0 THE FUTURE..............................................................................................................................18
3.1 Vision statement.......................................................................................................................18
3.2 Mission statement.....................................................................................................................18
3.3 Goals/objectives........................................................................................................................18
3.4 Action plan................................................................................................................................18
4.0 THE FINANCES..........................................................................................................................19
4.1 Key objectives of Ngara Sasa...................................................................................................19
4.2 Finance required.......................................................................................................................19
4.3 Assumptions..............................................................................................................................19
4.4 Start-up Capital........................................................................................................................20
4.5 Balance sheet forecast..............................................................................................................20
4.6 Profit and Loss Forecast..........................................................................................................22
4.7 Expected Cashflow...................................................................................................................23
4.8 Break-even analysis............................................................................................................24
5.0 SUPPORTING DOCUMENTATION........................................................................................25

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LIST OF FIGURES
Figure 1 : Organizational Structure......................................................................................11
Figure 2: Startup Capital...........................................................................................................29
Figure 3: Balance Sheet............................................................................................................30
Figure 4: Profit and Loss account.............................................................................................31
Figure 5: Expected Cashflows..................................................................................................32
Figure 6: Break Even Analysis.................................................................................................32

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LIST OF TABLES
Table 1: Current Staff............................................................................................................15
Table 2: Required Staff.............................................................................................................16
Table 3: Men's Clothing............................................................................................................17
Table 4:Women's Clothing.......................................................................................................18
Table 5: Children's Clothing.....................................................................................................18
Table 6: Risk Management.......................................................................................................21
Table 7: Inventory.....................................................................................................................22
Table 8: Plant and Equipment...................................................................................................23
Table 9: S.W.O.T Analysis.......................................................................................................25
Table 10: Competitors Details..................................................................................................26
Table 11: Advertising& Promotional Strategy.........................................................................27
Table 12: Unique Selling Position............................................................................................27
Table 13: Action Plan...............................................................................................................28

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THE EXECUTIVE SUMMARY

Ngara Sasa seeks financing of 10 million to start and expand its operations via opening a
consignment store located in Kakamega, Kenya. Installation of networked computers with
consignment business software, purchase of new and/or used equipment and fixtures for retail
cloth operations and maintenance of sufficient cash reserves to properly expand operational
hours and hire additional personnel during busy seasons and expected increase in sales up to
50% from the 1st year to the 2nd year of our operation.
The funds will improve the business significantly, but additionally will change to meet
customers’ demand and the growth currently seen in Kakamega. Ngara Sasa will allow for
continued servicing of all levels of income earners, reliable charitable donations and a
reaffirmation of an established business.
During the course of analysis became obvious that factors contributing to recent decrease in
sales among consignors could only be turned around by using better technology and
remodeling the current market to meet the customers’ and consignors’ needs.
Ngara Sasa can properly make a move to the future and draw new customers locally; attract
sales/consignors from greater distances via the internet; and keep with the ‘times’ of the
clothing business through automation.
Through this investment, Ngara Sasa will continue to provide a social and community benefit
along with keeping the business thriving and growing through transitional period in business
and residential planning in Kakamega.The donations of clothing immediately after inability to
sell items also provides hundreds of people alternative means to obtain a basic need in their
lives; adequate clothing.

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BUSINESS PLAN SUMMARY

The Business
Business name: NGARA SASA LTD
Business structure: LIMITED COMPANY
Business location: KAKAMEGA
Date to be established: 1ST JANUARY 2022
Business owner(s):
PATIENCE WATUKA
HUMPHREY MUTSAMI
HANNAH NGUGI
KEVIN NANDWA
PERIS KAMAU
Relevant owner experience: The partners have 5 years’ experience in Finance and
Accounting and other individual additional experiences relevant to the business.
Products: clothes for men, and women

The Market
Target market
Our target markets are the retailers, sole proprietors, mass buyers and wholesalers.
We are anticipating to supply quality products at competitive prices, offer trade discounts,
credit services and after sale services.
Marketing strategy
We intend to price skim, offer after sale services such as delivery services, offer trade
discounts to customers who introduce other customers to our shop, customer cards which we
will use to dole out points or perks ad graduate customers to higher levels of loyalty the more
they buy and eventually offer such like customers goods at a discount or give away free items
with multiple purchases, invite them to trial of new products and services, use price
penetration strategy and finally clicks and bricks.

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The Future
Vision
To be the premium supplier of quality clothes and shoes.

Mission
To give customers what they want and get it to them faster than anyone else.
Goals and objectives
To be the leading supplier of clothes and shoes to men and women and children.

The Finances

Ngara Sasa seeks financing of 10 million for it to set its business in motion.
The afro mentioned funds will be obtained from borrowing loans which will make up to 50%
of the financing, contributions by the directors who will contribute half a million each (five
hundred thousand each) making up to 25%, while the remaining percentage will be sourced
from gifts from friends.
In the first year we expect to make a net profit of around one million and three hundred
thousand which we intend to maintain throughout our periods of operation.

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1.0 THE BUSINESS
1.1 Business details
We at Ngara Sasa are very careful and zealous so as not to start losing even before we open
our doors. The business products and services will predominate both high- and low-income
families and persons by providing nearly new and well cared for clothes to customers via its
consignment-based policy for the suppliers of these clothes.
The operation hours will be as follows:
9am-5pm Every Monday to Saturday
2Pm -5Pm on Sundays.
Our products range will include;
Women’s items
Bras, dresses, blouses, skirts, coats, evening dresses, shoes, socks, handbags, sweaters, slacks,
fur coats, suits, underwear.
Men’s items
Suits, shoes, jackets, pajamas, sweaters, overcoats, undershorts, undershirts, raincoat, trousers,
pant shorts, socks, jeans.

1.2 Registration details

Business name: NGARA SASA LTD, KAKAMEGA

Trading name(s): NGARA SASA LTD.
Date registered: APRIL 2022.
Location: KAKAMEGA
Business structure: PRIVATE COMPANY
Registered business number: 139943
Registered company number: 2436/2022
VAT REG: PK98117204

Business premises
1.3 Business location
The business is located in the Kakamega CBD along Kakamega-Mumias High way, Ambwere
Plaza 1st floor room no.1

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1.4 Organization Structure

1.4.1 Organizational chart

DIRECTORS

CEO

ADMINISTRATION
MANAGER

HUMAN MARKETING ICT FINANCE PROCUREME NT

RESOURCE MANAGER MANAGER MANAGER
MANAGER MANAGER

STORE SALES
PERSONS
OVERSEER

Figure 1 : Organizational Structure

1.5 Management and ownership

Names of owners
2
 Patience Watuka
Humphrey Mutsami
Hannah Ngugi
Kevin Nandwa
Peris Kamau
1.5.1 Details of management and ownership
Our business will be managed by the appointed CEO who will manage the overall operations
of the company, he will drive agendas, drive profitability, manage the company organization
structure and communicate with the board.
As the directors, we will attend the annual general meetings and make key decisions affecting
the company.
We will also be responsible for;
i) Appointing senior management
ii) Accounting for the company’s activities to relevant parties.
iii) Monitoring process towards achieving the objectives and policies
iv) Determining the company’s strategic objectives and policies.
Experience
All the owners are updated in matters finance and have general knowledge in the business
field but they also have knowledge in various fields; Human Resource Management,
procurement, information and communication technology, marketing and finance which will
be relevant to the business.
In 2013, Hannah began working at Genesco Lady Boots factory, Nakuru for a period of
4years where she obtained certification as a shoe binder. In 2017, she took procurement
position at Hammer’s primarily dealing with sourcing of leather from the prominent Italian
companies and inventory management for the next two years. Throughout this time, she
continued with her education at University of Nairobi in Business Administration.
Humphrey having graduated from Moi University with a degree in finance he joined Britam
Insurance Company where he served for 4years working as a junior financial analyst whose
key responsibilities included evaluating the current capital expenditures and deductions,
analyzing current and past financial data and performance and establishing and evaluating
profits plans.

In 2010, Kevin graduate from the Kenya College of Accountancy with a Bachelor’s Degree in
commerce. He has been a marketing manager in the Kenya Breweries Limited for the last
4years where he took part in the recent re-branding and introduction of new products such as

3
Tusker Cider which was successful and participated in Digital Marketing competition and was
awarded with a certificate in fundamental digital marketing.
Patience graduate from Masinde Muliro University of Science and Technology in 2011 with
bachelor’s degree in commerce finance option but later advanced her studies in Pwani
University majoring in Human Resource. She worked as a junior human resource assistant in
2015 at Kabras Sugar Company before moving to Pwani Oil Company as a human resource
manager. In 2017, she sat for her professional examinations in human resource and received
certification from the Human Resource Management Professional Examination Board
(HRMPEB).
As a graduate of Strathmore University, Peris a holder of a doctorate in Information,
Communication and Technology, she had a contract with goggle for 2years as a software
engineer while still offering technical consultancy for Microsoft in Kenya. She also holds talk
shows on TV47 on matters cyber security.
1.5. 2 Key personnel
1.5.3 Current staff

Job Title Name Expected staff Skills or strengths

turnover
Finance Manager Mr Humphrey [12-96  CPA(K)holder
Mutsami months]
 Has 5 years’ experience in
the finance corporate field.
 Has as strong financial
background and thorough
overall understanding of the
organization’s operations.
ICT Manager Miss. Peris [12-72  Has 4 years’ experience
Kamau months]  Has project management
skills and experience in
transitioning business
processes from stand-alone
semi-computerised systems
to fully networked
computerised systems.
 Knowledge and experience
of operational systems and
associated private and public
telecommunications
including fibre optics and
power line carrier.

4
 Job Title Name Expected staff Skills or strengths
turnover
Procurement Miss. Hannah [12-96  Has a record of keeping the
Manager Ngugi months] supply chain ethical
 Has 5 years’ experience
 Exhibits purchase
forecasting and data analysis
skills.
 Has good negotiation and
communication skills
Human resource Miss. Patience [12-96  5 years’ experience
Manager Watuka months]  Enjoys problem solving
 Has unquestionable
administrative expertise.
 Has human resource
management knowledge and
training and development
skills.
Marketing Mr. Kevin [12-72  5 years’ experience
Manager Nandwa months]  Is creative and innovative.
 Sales minded person with
adaptability and strategic
thinking skills.
Table 1: Current Staff

1.5.6 Required staff

Job Title Quantity Expected Skills necessary Date required
staff
turnover
Logistics 1 [2-5years]  Ability to embrace January 2023
manager new technology
 Team worker
 Logical reasoning
and problem-
solving skills.
 2 years’ experience
in logistics

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 Job Title Quantity Expected Skills necessary Date required
staff
turnover
Sales 4 [3-7years]  Ability to remain Immediately
personnel calm under
pressure.
 Ability to recruit
new and right sales
personnel as well
as maintain them.
 Ability to hold
sales persons
accountable.
 Experience for at
least 1and ½ years

Store 1 [2-10yeras]  Ability to plan and January2023

overseer prioritise
workloads and
delegate
accordingly
 Effective
leadership skills
and the ability to
motivate others.
 Capacity to grasp
new concepts
quickly.
 Shrewd business
and well-developed
commercial
awareness
 1-year experience

Cleaners 5 [2-10 year]  Basic computer January 2023

skills
 Good time
management skills
 Adequate level of
friendliness
 Ability to work
both alone and in a
team
 1 year experience
Table 2: Required Staff
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1.6 Business revenue

Nga’ra Sasa Ltd will be insured against uncertainty in the event where the business will not be
able to carry out its daily activities e.g. Government laws against importation of mitumba.
1.7 Recruitment options
We intend to use the recruiting agency bodies, advertising and previously listed people.
1.8 Training
There will be a 3-months training program for the new employees and annual trainings for the
current and ‘old’ staffs.

1.9 Products and services

(Products in bales)
Men’s clothing
Item Description Price(Ksh)
Suits Italian 19,500
Shoes Leather, sports 20,000
Jackets Bomber jackets 13,000
Pajamas Silk 11,500
Sweaters Crocheted 16,500
Overcoats Leather 14,000
Undershorts Cotton 10,500
Jeans Blue, black 15,000
Undershirts Cotton 13,500
Raincoat Nylon 15,000
Trousers Khaki 25,000
Pant shorts Khaki 10,000
Socks Normal, wool 12,000

Table 3: Men's Clothing

Women’s clothing
Item Description Price(Ksh)
Bras Cotton 23,000
Dresses Cotton, silk 33,000
Blouses Chiffon 27,500
Skirts Denim 27,500
Coats Fur 34,100
Evening dresses Silk 17,160
Socks Normal, wool 11,000
Shoes Flats, heels, wedges 20,000
Handbags Leather 38,500
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 Sweaters Crocheted 51,500
Trousers Palazzos 27,500
Suits Italian 19,500
underwear Cotton 16,500
Table 4:Women's Clothing

Children Clothing
(Products in bales)
Item Description Price(Ksh)
Blouses Chiffon 25,000
Table 5: Children's
Boots Leather 50,000
Clothing
Jeans Skinny 45000
Underwear Cotton 40,000 1.10 Market position
Skirts Denim 27,000 Our competition will be
Socks Cotton 23,000 minimal in the region.
Marvins Crochet 12,000 Our greatest competitors
Pants Polyester 29,000 will be in Nairobi as
Jackets Denim 40,000 many upcoming second-
Coats Leather 35,000
hand dealers source their
products from Nairobi.
All items will be priced between 10%-30% of the supplied priced items, unless otherwise
asked by consigners but the market’s final decision is at the discretion of Ngara Sasa Ltd.

1.11 Unique selling position

Ngara Sasa intends to provide friendly management, quality and valuable items, pricing them
at customer friendly prices which will contribute to customer loyalty, customer retention
which have the overall effect of enhancing good customer relationship, persuade and attract
customers.
1.12 Anticipated demand
We anticipate that women’s items will have sold up to 20% in the first month and up to 50%
in the long run due to changing fashion demands.
On the other hand, since a good percentage of men purchase according to their needs and not
fashion trends, we anticipate a 10% profit sale in the first few months and up to 20% in the
long run.

1.13 Pricing strategy

Price penetration strategy

8
 Prices will be set very low compared to the competitors as a way of gaining market share.
With time, Ngara Sasa will raise the prices and since customers will be used to our products
they will be willing to continue using them even at their full prices.
1.14 Growth potential
Many people are in search of already used goods, internet sales on websites and other smaller
used-items, internet friendly shops have become a considerable force in the retail sales
industry in the past few years, our growth potential is therefore promising.
In our future plan of promoting online sales, allow for reserving items for pick up and
possible shipment for a minimum order price and shipment cost.
In working towards utilizing internet capabilities, small gains in sales can be assured at a
minimal cost to providing services by solely displaying images of products and range of
prices for these items.
Affiliations with consignment shops and other better-known outlets for services, can bring in
customers locally and extend the range of both buyers and consignments.
1.15 Innovation

Research & development (R&D)/innovation activities

The company will carry out staff training on software updates and technology changes to
encourage innovate. Our Company will incorporate modern methods of payment e.g. M-Pesa,
Pay Pal, credit and debit cards to prevent customer inconvenience when making purchases.

Our IT team will be responsible in developing of an application that will enhance customer
experience they will also be responsible in the maintenance of the company website.

Ngara Sasa will send emails and consigners to inform them of new products arrivals and
engage customers through responding to their feedback in our social media platforms.
1.16 Intellectual property strategy

We will acquire patent and copy rights for our logo and the business slogan. We will also
acquire copy rights for our website domain name and mobile application.
1.17 Insurance
1.18 Workers compensation

Ngara Sasa Ltd will provide medical insurance to all its employees this insurance will cover
illnesses and accidents.

Ngara Sasa Ltd will also provide pension to its employees, the pension plan will be in a
contributory basis where the employer will contribute a percentage and the employee will also
contribute an equal share to the pension plan.
1.19 Business assets
Ngara Sasa has insured the building against fire.
Ngara Sasa has insured the inventory against theft.

9
Ngara Sasa also provides for insurance for goods I transit.
Ngara Sasa provides for a comprehensive insurance for its motor vehicle

1.20 Risk management

Risk Likelihood Impact Strategy

Loss of inventory Highly Likely High  Keeping track of
The business can lose inventory and
inventory by theft of stocks investigating
by employees or outsiders discrepancies.
reducing inventory and  Install security
hence losses to the business. systems and always
respond to security
alarms
 Security mirrors and
surveillance cameras
will help employees
monitor premises.
Loss of inventory due to fire Likely High  Installation of fire
outbreak in the stores. extinguishers and
training of
employees to
respond to fire
outbreaks.
 Installation of smoke
detectors
Regulatory risk unlikely High Complying with tax legal
Withdrawal of operation requirements.
license due to tax
noncompliance hence
stoppage of business
operation
Fluctuation of demand Likely High  We will focus
Negative shift in the efficiency to
demand for women, improve matching of
children and men clothes demand and supply.
will lead to low sales hence  Keeping up with the
reduced profits, market trends
Table 6: Risk Management

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1.21 Legal considerations

The company will require the following documents for registration

1.22 Operations

Suppliers

The business will outsource its products internationally to cut off middle men. This will aim
at reducing costs and therefore favourable price will be offered to our customers. We will
outsource our mitumba from countries such as China, the United Kingdom and the United
Sasa an example of prominent mitumba suppliers is Alibaba in China.

1.23 Inventory
Inventory item Unit Quantity in stock Total cost
price(Ksh) (bales)
Suits 19,500 12 234,000
Shoes 20,000 10 200,000
Jackets 13,000 11 143,000
Pajamas 11,500 7 80,500
Sweaters 16,500 9 112,000
Overcoats 14,000 14 196,000
Undershorts 10,500 12 126,000
Jeans 15,000 16 240,000
Undershirts 13,500 11 148,500
Raincoat 15,000 6 90,000
Trousers 25,000 15 375,000
Pant shorts 10,000 6 60,000
Socks 12,000 12 144,000
Bras 23,000 14 322,000
Dresses 17,500 17 297,500
Blouses 15,000 13 195,000
Total 2,963,500

Table 7: Inventory
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Technology (Software)

 Ngara Sasa Ltd requires the following technology:

 Website and mobile application
 Inventory management system
 Payment Management System
 Accounting packages- Quick books

Trading hours

Our trading hours will be as shown below:

Every Monday to Saturday 9AM-5PM
Sundays 2PM -5PM
We expect our peak sales to be from12 noon to 4pm each day

Communication channels

Our customers can contact us through the following channels:

 Our official email address is ngarasasa@outlook.com

 Our telephone number is 0200054667
 Our WhatsApp contact is 0707079000
 Our facebook, instagram and twitter handles are at Ngara Sasa
 Our website is www.ngarasasa.com

Payment types accepted

The following payment systems will be accepted at Ngara Sasa Ltd:

 Cash
 M-Pesa
 Credit and Debit cards
 Electronic Fund Transfer
 Paypal
 Cheque

Credit policy

Our business allows for short term credit to customers a minim of ksh 500,000 to be paid in
full in a fixed period of twenty four days. The customer can pay for goods issued on credit by
bank deposits into the company’s account.

Memberships & affiliations

Ngara Sasa Ltd is a member of Mitumba association of Kenya.

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1.24 Sustainability plan
1.25 Environmental/resource impacts
Our company focuses on used products there by reducing amount of waste that is in the
environment.
Used items have a large positive impact on the environment as they dot require energy to
make, they don’t create pollution and don’t require new resources.

2.0 THE MARKET

2.1 Market research
A survey research was carried out on retailers and customers of mitumba to understand the
demand and supply so as to determine the profitability of the venture and to understand the
needs of Kakamega residents buying used fashion both online and in stores.
2.2 Market targets
2.3 Plant & equipment

Equipment Purchase date Purchase Running

Price(Ksh) cost(Ksh)
Business computer 02.02.2023 280,000 20,000
Office phone 03.02.2023 60,000 10,000
Company Car 06.02.2023 1,200,000 20,000
Office furniture 04.02.2023 800,000 100,000
Office Equipment and Stationery 03.02.2023 450,000 20,000
Printers 03.02.2023 100,000 10,000
Trucks 03.02.2023 4,000,00 100,000
Table 8: Plant and Equipment
2.4 Planed monthly targets of our business are as follows:
Men clothes and fashion ten thousand bales, Women clothes and fashion fifteen thousand
bales, children clothes and fashion twelve thousand
bales.
2.5 Environmental/industry analysis
From the survey research there exists a favourable target market as the demographic
population of Kakamega region is growing. According to the census conducted in 2019
women in Kakamega county make up to 970,406 of the total 1,867,579 and men make up to
897,133 Kakamega County has various sugar companies such as Butali Sugar and Kabras
sugar among other big companies which are major employers in the region.
There exists various universities and technical institutions which attract a huge population of
students who opt for second hand clothes as they consider them cheap, considering these
many wholesalers and retailers will always be looking for a source of mitumba, favourable
13
prices at Ngara Sasa will help them meet this need to filling the gap in the market. With the
growing population in Kakamega County as the town is quickly growing into an urban centre,
and clothing being a basic need we expect the need for affordable clothing to rise and as we
enter the market, we expect to satisfy this need and better customer experience

2.6 Customer demographics

2.7 Key customers

Our key customers are wholesalers and retailers in the Kakamega region and beyond.
2.8 Customer management

Ngara Sasa Ltd will enhance customer relationship by responding to customer’s feedback.
The business will also issue customers with loyalty cards where they will be awarded points
every time they shop with us this loyalty points can be redeemed to acquire busies products.
The business will allow customers discounts on recommendations. The business will also sent
customers emails and messages notify them of new arrivals of products and also recommend
products to customers

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2.9 S.W.O.T. analysis

Strengths
 Readily available market
 Readily available capital
 Regulatory requirements are not
complex
 Qualified and well trained team
 Good relationship with our major
suppliers
 An easy to access geographical
location
Weaknesses
 Seasonal demand shifts leading to low
sales
 May experience suffer from
management systems
 Competition from already established
wholesalers in the region

Opportunities Threats
 Continuous advertisement to  Cash flow problems in case of huge
increase awareness amount of goods being sold on \
 Customer loyalty through discounts  Inflation of prices
and loyalty points  Unfavourable government policies
 Brand loyalty through provision of
high quality clothes.

Table 9: S.W.O.T Analysis

2.10 Competitor details

Competito Establish Size Market Value to Strengths Weaknesses

r ed date share customer
(%) s
JR January 19 17% Sells The business Deals only
Mitumba 2025 quality has great with women
products market share clothes
in women
clothes
Neat March 23 19% Offers Business is The business
Repeat 2019 delivery strategically does not
services located adjust to
fashion and
trends

Page 15
 Competito Establish Size Market Value to Strengths Weaknesses
r ed date share customer
(%) s
Paladin and February 30 22% The The business The business
daughters 2015 business has two sells products
opens at branches from Ksh
7am and 50,000
runs to meeting only
7pm needs of high
meeting net worth
needs of customers
early and
late
shoppers

Women Septembe 25 15% Credit The business The business

Consignme r 2017 offers sells its suffers from
nt Store attracts a products on cash flow
lot of both cash and problems
customers credit
Waiganjo January 7 4% The Their business The business
wholesalers 2021 business geographical sales online
website is location is not only
very easy easily
to accessible
navigate
Table 10: Competitors Details

2.11 Advertising & sales

2.11.1 Advertising & promotional strategy

Planned promotion Expected business improvement Cost Target

/advertising type (Ksh) date
Online This will improve sales of the business 100,000 03.2022
advertising, Print media, online through our application and
Social media campaign website.

Print Media This will create awareness of the 200,000 04.2022

business country wide and attract
customers to our businesses

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 Planned promotion Expected business improvement Cost Target
/advertising type (Ksh) date
Online advertising This will help in penetrating the 70,000 04.2022
market through creation of awareness
of our product and promoting our
brand
Media release We will carry out a press release to 120,000 03.2022
lunch into the market this will help
create a competitive edge among other
suppliers that exist in the market
Table 11: Advertising& Promotional Strategy
2.12 Sales & marketing objectives

Our marketing team comprises of the marketing manager and the sales person, they will
organise for the advertising and promotion of the business our IT department will also be
responsible for continuous online advertising and managing of our social media pages hence
promoting online sales for the business.35% of our business sales will be online.

2.13 Unique selling position

We will sell both online and on our physical stores enjoying the benefits of the bricks and
clicks business. Our products will be priced at a relatively cheaper price and the company will
ensure on timely delivery of customers’ orders.

Channel type Products/ Percentage Advantages Disadvantages

services of sales
(%)
Shopfront Women, men 39% We will be able to Too many orders
and children meet needs of thus flooding of
clothes and customers in the customers in the
fashion. region. company premises
Internet Women, men 23% Wide coverage of Website traffic due
and children the market, both in to many order
clothes and Kakamega and placement.
fashion. beyond the region
Direct mail Women, men 6% We will be able to Conflicting
and children make resales to our information about
clothes and previous customers customer emails
fashion. and new customers and real
contacting us identification.
through emails.

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 Channel type Products/ Percentage Advantages Disadvantages
services of sales
(%)
Wholesale Women, men 32% Huge sales The business may
and children contributing to suffer huge losses
clothes and increased profit where goods are
fashion. margins sold on credit
Table 12: Unique Selling Position

3.0 THE FUTURE

3.1 Vision statement
To be the premium supplier of quality clothes and shoes.
3.2 Mission statement
To give customers what they want and get it to them faster than anyone else.
3.3 Goals/objectives
 To be the leading supplier of clothes and shoes to men and women children.
 To be a respectable supplier of clothes and shoes to men and women children.
 To become an established brand in the mitumba business.

Ngara Sasa will continuously carry out market research so as to ensure it is meeting
customers’ needs every point in time

3.4 Action plan

.
Milestone Date of expected completion Person responsible
To establish branches in Eldoret January 2025 The business
and Kisumu management team
To buy two more delivery trucks April 2024 The Human resource
team
Increase repute in the industry May 2024 The Marketing team
Achieve sales target of 80% December 2023 The Marketing team
Win the entrepreneur’s award July 2024 The business
management team
Table 13: Action Plan

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4.0 THE FINANCES
4.1 Key objectives of Ngara Sasa
1. Profit Maximization
This will be achieved through increased sales, by continuous advertising by the
marketing department of Ngara Sasa. We expect an increase profit margin of 10% by
2024.
2. Value Maximization
Ngara Sasa will be dedicated to increasing the value of the business in order to
increase the value of the shares held by its shareholders.
3. Growth Maximization
Managers will seek objectives which give them satisfaction such as salary, such
objective will motivate them to concentrate on the growth of the firm.
4. Cost Reduction
Ngara Sasa intends to reduce the cost of doing business. This will be done through
eliminating unnecessary costs such as inventory holding cost.

4.2 Finance required

Ngara sasa will need 10 million as initial capital. This amount will be raised through Initial
Public Offer (IPO), Directors of the company will subscribe to preference shares at a fixed
rate, obtain bank loans and venture capital. The Directors will be contributing ksh500,000
each towards the business.

4.3 Assumptions
1. The corporate tax rate is 30%
2. Long term interest rate will be13%
3. Short term interest rate will be 8%
4. Loans and interest on loans will be paid on a straight line basis.
This will be done by dividing the total amount of interest and loan owned by the total
number of payments that need to be made. Hence, same amount of money will be
allocated for each period until the debt is repaid.

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4.4 Start-up Capital

Figure 2: Startup Capital

4.5 Balance sheet forecast

[Year 1] [Year 2] [Year 3]
BALANCE SHEET FORECAST (Ksh) (Ksh) (Ksh)

Cash 1,500,000 1,725,000 1,983,750

Petty cash 500,000 575,000 661,250

Inventory 1,200,000 1,380,000 1,587,000

Fixed assets      

Leasehold 700,000 805,000 925,750

Property & land

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 1,100,000 1,265,000 1,454,750

Building Renovations/improvements 950,000 1,092,500 1,256,375

Furniture & fittings 900,000 1,035,000 1,190,250

Vehicles 5,200,000 5,980,000 6,877,000

Office Equipment 200,000 230,000 264,500

Computer equipment & Printers 400,000 460,000 529,000

       

Total assets 12,650,000 14,547,500 16,729,625

Current/short-term liabilities      

Accounts payable - 2,000,000 2,300,000

Interest on Loans 918,000 910,000 902,000

Accrued wages - 2,000,000 2,353,000

Loan 847,625 947,929 1,055,000

Income tax 672,375 689,571 819,319

Long Term Liabilities      

Capital 2,212,000 3,000,000 4,800,306

Loan 8,000,000 5,000,000 4,500,000

Total liabilities 12,650,000 14,547,500 16,729,625

NET ASSETS - - -
Figure 3: Balance Sheet

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4.6 Profit and Loss Forecast
[Year 1]
PROFIT & LOSS FORECAST (Ksh) [Year 2] (Ksh) [Year 3] (Ksh)
Sales 15,000,000 21,428,571 30,612,244
less cost of goods sold 2,963,000 8,000,000 15,000,000
       
       
Gross profit/net sales 12,037,000 13,428,571 15,612,244
       
Expenses      
Accountant fees 2,500 2,500 2,500
Advertising & marketing 490,000 600,000 900,000
Bank fees & charges 90,000 90,500 90,700
Bank interest 918,000 910,000 902,000
Utilities (electricity, gas, water) 100,000 101,000 101,500
Telephone 60,250 70,000 90,500
Lease 800,000 - -
Motor Vehicle expense 120,000 121,900 122,000
Repairs & maintenance 300,000 291,000 282,270
Stationery & printing 50,000 50,500 51,000
Internet Fees 120,000 122,000 126,000
Insurance 4,845,000 5,700,000 6,706,050
Pension 400,000 470,600 553,660
Income tax 672,375 689,571 819,319
Wages (including PAYE) 1,700,000 2,000,000 2,353,000
       
Total expenses 10,668,125 11,219,571 13,100,499
       
NET PROFIT 1,368,875 2,209,000 2,511,745
Figure 4: Profit and Loss account

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4.7 Expected Cashflow

Figure 5: Expected Cashflows

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 4.8 Break-even analysis
BREAK-EVEN CALCULATOR
Timeframe (Yearly)  
Average price of each product sold 22,674.00
Average cost of each product to deliver 1,000.00
Fixed costs for the year 1,500,000.00
   
Percentage of price that is profit 0.96
Total sales needed to break-even 1,569,207.35
Number of units sold needed to break-even 69.21
Figure 6: Break Even Analysis
BREAK-EVEN CALCULATOR

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5.0 SUPPORTING DOCUMENTATION

Attached are supporting documentation in relation to this business plan

Documents include; Directors curriculum vitae

CURRICULUM VITAE
Personal details
Name: Peris Kamau
Contact:0705283701
Email: periswwakamau@gamail.com
Profile
I am an ambitious person who has developed a mature and responsible approach to any task
that I undertake, or situation that I am presented with.
Work experience
2021-todate
Working at the Standard Chartered Bank as the ICT Manager.
2018-2020
PHD in Information Communication Technology at the Strathmore University.
As a part time job, I offered Technical Consultancy services for Microsoft Kenya and served
as a software engineer in the firm as well.
2017-2016
MBA Information Technology, Strathmore University
Held talk shows on TV47 on matters cyber security.
2015-2011
Bachelor’s in ICT, Strathmore University, Second class upper honor’s
2010-2009
Diploma in software management and Network security at the Kenya Institute of
Management Studies.
2005-2008
Bachelor’s degree in commerce, Finance Option at the Masinde Muliro University of Science
and Technology, second class upper honor’s
Personal skills
1.having an eye for details.
2.creative
3.adaptive
4.self motivated

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 CURRICULUM VITAE

Personal Data
Name : Hamphery Ochieng' Mutsami
Date of Birth: 13th Nov 1975
Gender: Male
County: Kakamega
Religion: Christian
Nationality: Kenyan
Mobile No: 0741095208
E-Mail Address: Humphreymutsami79@Gmail.Com

Career Objective
To be a team player in information and achieve organizational goals and objectives through
professionalism and co-operation with other team members.
Mission statement
I focus on being an exemplary accountant and a financial analyst who is self-discipline and interested
to work in any organization.
Career ambition
To work in situation or environment requiring dedication, creativity, implementation of projects and
decision making.

Professional qualification
Moi University, school of business and economics 1999 kasneb examination certificate
Cpa Part One
Section 2
1 Economics
2 Management Accounting
3 Public Finance and Taxation.

Section 1
 Introduction To Financial Accounting
 Entrepreneurship And Communication
 Introduction To Law

Academic Qualification
Postgraduate Certificate: 1997
School:Moi University
Achievement: A Degree in Bachelor of Commerce, Finance Option.

Kenya Certificate of Secondary School: 1993-1996

School: Masikonde Secondary School
Achievement: Mean Grade B Minus

Kenya Certificate Of Primary Educatio: 1985-1995

School: Rae-Kanyaika Primary School
Achievement: 330marks

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Hannah Ngugi
Procurement Officer
Phone: 0722987223
Email:hannah_ngugi@gmail.com
Address: 162, Kakamega.

Professional profile
Skilled and results-driven procurement officer with 5 years’ experience managing business
purchases, securing the best products and services at the lowest prices. Profound experience in
supply chain management, purchase product negotiation and managing tender processes.
Possess a proven track record of success in improving retention and delivery times.

Core Skills
 Supply Chain Management
 Excellent Negotiation Skills
 Tender Management
 Microsoft office and e-tendering
 Risk Management and Inventory Control

Experience
Hammer’s Leather Industry, Nairobi. 2017-2019
Procurement officer
4 Analyzed and researched current and new suppliers to understand the availability of
products and services, time frames and costs.
5 Managed tender processes including documentation, bid evaluations and publication
notices.
6 Analyzed market trends.
7 Assessed the total cost to the company through procurement to understand if there could
be further cost reductions.
Genesco Lady Boots Factory, Nakuru. 2013-2017
Assistant Inventory Manager
 Provision of all supply chain, logistics and procurement requirements for the ongoing
project.
 Prepare estimates used by management for purposes such as project cost analysis.

Education
Bachelors in supply chain operations, Business management-September 2011 University of
Nairobi.

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CURRICULUM VITAE.
Personal Details.
Name: Patience Watuka.
Contact: 0725619528.
Email:pwatuka217@gmal.com.
Profile.
Hardworking and ready to apply knowledge and the gained experience to achieve the
organization objectives.
Work Experience
2018-2022
Worked as the Human Resource Manager at Pwani Oil Limited.
2015-2017
Worked as an Assistant Human Resource manager at Kabras Sugar Company.
2012-2014
Worked as an assistant accountant at Kenya Commercial Bank
Education.
2012- 2015
Masters in Human Resource Management- strategic management
2007-2011
Degree in Bachelor of commerce Finance option 2nd Class, Upper Division.
2002-2006
Matuga Girls' High School - KCSE
1994-2001
Kichaka Simba Primary School - KCPE
Professional Qualifications
Date (Year). Examining Body. Subject.
2017-2018. HRMPEB. HR
2008-2010. KASNEB. CPA

Personal qualities.
1 Creative and good at problem solving.
2 Team player.
3 Hardworking and self driven .
4 Quick learner and works under minimum supervision.

Page 28
CURRICULUM VITAE.
Personal Details.
Name: Kevin Nandwa.
Contact: 0707900552.
Email:kevinnandwa@gmal.com.
Profile.
An outgoing and articulate person, seeking experience in department of marketing
Work Experience
2018-2022
Kenya Breweries marketing manager and chief branding consultant
2012-2017
Unilever marketing manager assistant
Education.
2004-2010
Degree in Bachelor of commerce Marketing Option1st Class Honours
1999-2003
Lenana boys high school KCSE
1990-1998
Boito primary School KCPE
Personal qualities.
1 Work well both alone and as part of a team.
2 Able to meet deadlines.
3 Team Player
4 Can work under pressure

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