FREEDOM CHILD DAY CARE

KITALE,

TEL

EMAIL: claidah@gmail.com

TITTLE : BUSINESS PLAN

PAPER CODE : 1410/207B

INDEX NO : 5031110055

NAME OF PRESENTER :WALUSAKA CLAIDA

PRESENTED TO : THE KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILLMENT FOR THE A WARD
CERTIFICATE IN BUSINESS MANAGEMENT

SUPERVISOR : MR. JOHN WANYONYI

CENTER NAME : KITALE NATIONAL POLYTECHNIC

CENTER NO : 5031110

DATE PRESENTED : NOVEMBER 2022

1
1 DECLARATION
The project is my original work and has never been submitted in any other college for the award
of diploma and certificate

NAME

SIGNATURE CLAIDA WALUSAKA

DATE :………………….

SUPERVISOR MR. WANYONYI JOHN

SIGNATURE :……………………….….

DATE :……………………….….

2
DEDICATION
The business plan is dedicated to my family and any other upcoming generation or any other
entrepreneur person who has the skill. Above all I would wish to thank my mother for having set
a strong foundation and for the endless patient encouragement love and carriage to begin

3
2 ACKNOWLEDGEMENT
Acknowledgement the support of my loving parents for their material and moral support that
they accorded me , I also acknowledge the support of the entire kitale national polytechnic for
the opportunity they accord me to pursue certificate courses and for availing all the resources
that it is helpful in writing of this business plan .I acknowledge the support of the entire business
department for enabling me conduct my research accordingly specially thanks to my supervisor
Mr. wanyonyi for providing guideline and keys sincere thanks to my family for their financial
support and encouragement to work hard .I also thank my friends and course mate for
motivational support.

4
3 EXECUTIVE SUMMARY
3.1 1.0 BUSINESS DESCRIPTION
The name of the business shall be Freedom Child day care ,the name was preffered due to the Freedom
that will be given to the child will attract more customers to the business,their will be afreely and
enjoyable environment to the child.

3.2 2.0 MARKETING PLAN

Under this chapter we shall get ready explanation on how freedom child day care will expand
and identify its customers. It also states how competitive it is and how competitors may are
threats. The method of operation and advertisement under which the business will move itself
known and boosted. The business as the strategy on how to seat its price. Lastly marketing plan
defines the business distribution strategies. The business will acquire customers from within the
society, relatives, friends and people from other places of the country

3.3 4.0 ORGANIZATION AND MANAGEMENT PLAN

Freedom Child day care has its organizational chart which is the span control of the business
clearly shows delegation of duties and flow of responsibilities.

It normally enable the management them to easily be able to know the number of workers
employed and the size of the business.

Legal officers will be called upon once in a blue moon if need be and their charge will be
negotiable.

This chapter also explains how the business will be recruiting and training the workers to
become experts. The way of rewarding its members in terms of wages and salaries is well spelt
out. The incentives offered or rendered are also stated.

It has also stressed the importance of taking all the documents printing the business operation
such as a license, permits and by that constitutes commencement of the business. The business
will also have to employ supportive services such as auditor, layer, councilors e.t.c for the
business to succeed.

5
Table of Contents
1 DECLARATION.................................................................................................................................2
2 DEDICATION....................................................................................................................................3
3 ACKNOWLEDGEMENT...................................................................................................................4
4 EXECUTIVE SUMMARY.........................................................................................................................5
4.1 1.0 BUSINESS DESCRIPTION........................................................................................................5
4.2 2.0 MARKETING PLAN.................................................................................................................5
4.3 4.0 ORGANIZATION AND MANAGEMENT PLAN..........................................................................5
4.4 4.0 PRODUCTION PLAN...............................................................................................................7
4.5 5.0 FINANCIAL PLAN...................................................................................................................7
4.6 1.0 BUSINESS DESCRIPTION.........................................................................................................8
4.7 1.1NAME OF THE BUSINESS.........................................................................................................8
4.8 1.2LOCATION AND ADDRESS OF THE BUSINESS..........................................................................8
4.9 1.2.1 Location..............................................................................................................................8
4.10 1.3 FORM AND TYPE OF THE OWNERSHIP...................................................................................9
4.11 1.4 PRODUCT AND SERVICES.......................................................................................................9
4.12 1.4.1 products..............................................................................................................................9
4.13 1.4.2 Services...............................................................................................................................9
4.14 1.5 JUSTIFICATION OF THE OPPORTUNITY...................................................................................9
4.15 1.6 INDUSTRY...............................................................................................................................9
4.16 1.7 GOALS OF THE BUSINESS.....................................................................................................10
4.17 1.7.1 Short term goals................................................................................................................10
4.18 1.7.2 Long term goals.................................................................................................................10
4.19 1.8 ENTRY AND GROWTH STRATEGY.........................................................................................10
5 CHAPTER TWO...................................................................................................................................11
5.1 2.0 MARKETING PLAN................................................................................................................11
5.2 2.1 Customers............................................................................................................................11
5.3 2.2Market share........................................................................................................................11
5.4 2.3 Competition.........................................................................................................................11
5.5 2.4 Methods of promotion and advertisement.........................................................................11

6
 5.6 2.4.1 Promotion.........................................................................................................................11
5.7 2.4.2 Advertisement..................................................................................................................12
5.8 2.5 Pricing strategy....................................................................................................................12
6 CHAPTER THREE.................................................................................................................................13
6.1 3.0 Operational Plan..................................................................................................................13
6.2 3.1 Organizational Structure......................................................................................................13
6.3 3.2 Managers and Qualifications...............................................................................................13
6.4 3.2.1Managers...........................................................................................................................13
6.5 3.2.2 Qualifications of the manager...........................................................................................13
7 CHAPTER FOUR..................................................................................................................................17
7.1 4.0 Operational Plan..................................................................................................................17
7.2 4.2 Production or operational facility and capacity...................................................................17
7.3 4.3 Production or service strategy.............................................................................................17
7.4 4.4 Production process..............................................................................................................17
7.5 4.6 Equipment or materials.......................................................................................................18
8 CHAPTER FIVE....................................................................................................................................19
8.1 5.0 Financial Plan.......................................................................................................................19
8.2 5.1 pre- operational costs..........................................................................................................19
8.3 5.3 Preparation of cash flow projections...................................................................................20
8.4 5.3.1 Cash flow projections for the year 2023...........................................................................21
8.5 Receipts.....................................................................................................................................22
8.6 Payments...................................................................................................................................22
8.7 Cash flow...................................................................................................................................22
8.8 5.4 Preparation of proforma Income Statement and Balance sheet.........................................23
8.9 5.4.1 Proforma Income Statement............................................................................................23
8.10 5.4.2 Less Operational Expenses................................................................................................23
8.11 5.5 Calculation of Break-Even Point...........................................................................................24
8.12 5.6 Calculation of profitable ratios.............................................................................................24
8.13 5.7 Desired Financing.................................................................................................................25
8.14 5.8 proposed Capitalization.......................................................................................................26

7
8
3.4 4.0 PRODUCTION PLAN
This chapter gives the type of equipment that will be needed in the business analyzed cost per
equipment and how the equipment will be used. It shows the relationship between the business
and its competitors and production process.

It also states the rules and regulation affecting operation of the business.

3.5 5.0 FINANCIAL PLAN

This chapter deals with how economical the business will be to avoid overheads. It defines the
importance of finance as a span control of any business as well as the breakdown which is the
stronghold of any business.

The cost incurred before starting the business is ill highlighted after which estimation of the working
capital worked out. It also show the assessment of the flow of funds that is inflow and outflow based in
3 years

9
CHAPTER ONE.

3.6 1.0 BUSINESS DESCRIPTION

3.7 1.1NAME OF THE BUSINESS

The name of the business shall be Freedom Child day care ,the name was preffered due to the Freedom
that will be given to the child will attract more customers to the business,their will be afreely and
enjoyable environment to the child.

3.8 1.2LOCATION AND ADDRESS OF THE BUSINESS.

3.9 1.2.1 Location

The business shall be located in Kenya Trans-nzoia County Through Kitale root to Mailinane in
Cherengany sub-county at Hututu center opposite Catholic Church. The reason for choosing the place is
due to accessibility of customers and security purposes.

Mailinane kachobora

Freedom day care

10
1.2.2 Address

The address of the business shall be F.C.D.C

P.O.BOX 1320300

KITALE

TEL.0111275678

Email.Claidawalusaka@gmail.com

3.10 1.3 FORM AND TYPE OF THE OWNERSHIP

The business shall offer a sole proprietorship type of the business whereby it is abusiness owned by one
person .The reason for choosing this type of business is because it's procedure is simple with few legal
formalities.

Sole proprietor is choose due to flexibility of the business which helps in growth ,it has personal contact
with the customers who comes to the business,the secrets of the business is kept by the sole trader
hence able to solve the weaknesses of the business,the family can help to contribute on the growth
improving of the business.The demerits of the sole proprietor may occur when there is lack of
specialization in running a business may lead to poor performance of the business,Incase of death of the
business owner may lead to collapse of the business,it may also results from poor decision making.

3.11 1.4 PRODUCT AND SERVICES

3.12 1.4.1 Products

The business will offer other products like milk, yoghurt, diapers and toys which will help to promote the
business and ensuy efficient marketing and reliability.

3.13 1.4.2 Services

The business shall ensure that there is proper provision of good health and feeding diet to children,
offering high quality of education level to children by teaching them etiquette, how to dress, hygiene
and other domestic work, providing them with clean water for drinking and purposes.

3.14 1.5 JUSTIFICATION OF THE OPPORTUNITY

The reason for starting this business is to help those mothers who have been employed in various
working places bt have children who may interupt them. So they are taken care of and protected in the
Freedom Child day care for more support and also access the needs of a child hence build partnership.

3.15 1.6 INDUSTRY

The business will offer a service industry whereby the child should be provided with proper service to
keep them in a condusive environment and enjoy lunch fe while being there.

11
3.16 1.7 GOALS OF THE BUSINESS

3.17 1.7.1 Short term goals

The business shall ensure that there is a continuous increase of growth at the start of the business
within the shortest time hence ensuring that is growth of the customers who will improve on the
growth.There will be good Services offered to children like health, insurance, education and others in
order to be mprove the skills of the children.

3.18 1.7.2 Long term goals.

The business is going to ensure that there is a high growth rate of the business in order to open up other
services which will help to promote the business.Buying enough lorries to enable easy transportation of
goods and services reaching the market on time.

3.19 1.8 ENTRY AND GROWTH STRATEGY

Strength

There will be enough skills and knowledge of handling and serving the customers in the business.

Weakness

There is shortage of protective clothing for the workers like mask, gumboots,gloves and many others to
secure and keep them safety.

Opportunity

The business will have a growing number of the entrepreneur as well as itroducing the business to the
social media as a marketing plan.

12
4 CHAPTER TWO
4.1 2.0 MARKETING PLAN

4.2 2.1 Customers

The business will acquire customers from within the society, relatives, friends and people from other
places of the country.

4.3 2.2Market share

Freedom day care shares the same business with Sheila's day care and Amani day care which have got
more competition in terms of growth.Sheila's has an experience for a period of fifteen years while
Amani has worked for a period of seven years .

Sheila has more customers of fifty two percent while Amani has a percentage of twenty eight while
freedom owns the remaining percent of twenty whereby it has just started.

4.4 2.3 Competition

The business is facing competition from Sheila and Amani.sheila has more customers which leads to
increase in the growth of the business also promotion of that business has resulted from provision of
other business.Amani has improved due to flexibility and good use of available resources and
management of time.There is also good communication skills with the customers which attract
customers to the business.

4.5 2.4 Methods of promotion and advertisement

4.6 2.4.1 Promotion

By linking with local partners, the business will try to spend a lot of time networking with other
counselors.The link up will be mutual benefit.The business will build and maintain relationships,Digital
marketing offers the opportunity to keep top of mind with former and potential clients,The business will
also ensure that there is good counseling website to promote services.

13
4.7 2.4.2 Advertisement
The business will advertise people through use of Notice,, forums, telephone calls, newspapers,and
social media

4.8 2.5 Pricing strategy

The business will offer a fair price to the customer per day, weekly and monthly.The child will be
charged according to the age, labour used and services offered to the child.

14
5 CHAPTER THREE
5.1 3.0 Operational Plan

5.2 3.1 Organizational Structure

The business shall contain various positions which will run the business to help on growth of the
business. These will include the manager, assistant manager, health worker, accountant, educational
coordinator and catering department.

Manager

assistant
manager

health educational catering

accountant
worker coo-dinator department
5.3 3.2 Managers and Qualifications

5.4 3.2.1Managers
The manager in the business helps in providing directions to the business team on how to run and
operate the business appropriately in order to ensure that there is growth of the business.The manager
also leads the team to proper management of the business.

5.5 3.2.2 Qualifications of the manager

1. Has attained a degree in social work a matron

2.Has an experience of being a matron in two different schools

3.Has worked as a Nursary teacher

4.Excellent communication skills both verbal and written

15
5.knowledge of child protection and safeguard

6.Understanding knowledge of approach to children care.

7.Social worker qualifications of equivalent.

3.2.3 Duties and Responsibilities of managers

1.Ensures that he/she and the other staff work accordance with the statement of purpose

2. Demonstrate effective leadership and support the staff team to deliver person centered child care
working towards the best outcome

3. Supervisor and mentor staff

4. Responsible for ensuring health and safety guidelines are adhered

5. Responsible for keeping an update register of all children being admitted.

3.3 personnel, Number and Duties.

Title

Health worker

1.service ordination skills

2.: capacity building skills

3.councelling skills

Duties

1.Ensure cultural competence among health care provider

2. Reduce social Isolation among the child.

3.Determine eligibility and individual in health insurance plan

Accountant

1.knowledge of the study and ethical practices in accounting

2. Ability to communicate with others

3. Skills using the latest software and technology

4.Leadership potential

Duties

16
1.Preparing accounts and tax return

2. Compiling and presenting financial and budget report

3. Monitoring and budget

Catering Department

Qualifications

1. Level one certificate in food preparation and cooking

2. Level two award in food safety in catering

3. Certificate in hospitality and catering principal

4.Level three award in supervising food safety.

Duties

1. Ensuring compliance with health and safety policies

2 . preparing daily meal record

3. Planing menus following guidelines on nutrition and health eating

4. Monitoring and managing supplies within a budget.

3.4 Recruitment, Training and Promotion

Recruitment

The business shall recruit people by announcing the maximum number which will not exceed two
hundred and fifty to be employed in the business.

Advertising

After recruiting the business will advertise people to apply for the job through social media, radios, and
televisions,histagram,you-tube, and newspapers.

Shortlist

Shortlisting of the names of people who have applied for the job and putting them into the notice board

Interview

Interview is carried out through question are

17
Employed

The business then employ people in the business after taking an interview to Start working considering
rules and regulations of the business using their own skills and knowledge.

Training

The training shall consider all the employees in the business in order to improve their skills,they will be
trained by the psychotherapist and qualified teachers.

Promotion

The promotion will be done after training by identifying the qualifications of those smart without any
restrictions.

3.5 Renumeration and Incentives

The Renumeration of the employee will depend on the type of the work performed and also promotions
given out to employee.Those employees who deals with infant and toddler will be given more salaries
compared to those caring for pre-school

3.6 License, Permits and by-laws

The business will ensure that it access the license by contacting the local day care licensing agency and
ask about the requirements in order to be issued a license.

3.7 Support Services

There are activities provided for child care assistant and property maintenance in order to live in the
least restrictive environment.

Banking services

The business will open an account with cooperative bank where it will be storing the money by saving so
that it will used later to improve the business and for emergency purposes.

Insurance

The business will be insured with the National Hospital Insurance fund of which it is on health insurance
that will help cover the health of the children.

Water and Electricity

There will be a connection with water and Electricity company to enable supply of clean water and
power to the business.

18
6 CHAPTER FOUR
6.1 4.0 Operational Plan
4.1product or service design and development.

The business will ensure that it focuses on providing full Services with an emphasis on convenient hours,
educational and social skills development, it also focus in the strategy , marketing and fulfillment. The
development of the business will result from provision of high quality services and products which will
attract the customers

6.2 4.2 Production or operational facility and capacity

The business shall take time to evaluate and improve on the program practices and environment in
order to be successful in operating a business. It will also create a holistic support and healthy learning
environment e children at the start. While expanding slowly, by the third year of operation the business
will expand the infant care to a high level.

The business will build child care research capai with the right tools, resources and support child care
and development, There will be pre-school teachers, child care provider, nutritionists, nurses, social
workers,ECD trainers at local and international level. The family child care educator will have a license
capacity of six,the total number of children that will be cared will be two thousand and above

6.3 4.3 Production or service strategy

Strength

The business will ensure that there is a critical competitive edge by providing high quality of education
program and child care to children.

Weakness

There is a low level well trained workers who needs more training to improve their skills and knowledge.

Opportunity

The business has an opportunity of introducing a new production of other products that will help to
grow the business.

Trends

The business will have a growing number of the enterprises.

19
6.4 4.4 Production process
The business will follow several processes to help on the growth

Advertisement, sales and marketing

The business will be selling products through promote sales.

Recruitment

The recruitment will be done in manner that it will attract many candidates who are interested through
social media recruiting and searching the website.

Training

In relation to learning and development, staff record will include the learning and training history,it will
also monitor other training relevant to their roles responsibilities and function.These training will be
done during lunch break of one hour daily.

Promotion

The promotion of an employee in Freedom child care will be based on the following requirements

1.The employee should have a good work that is Characterized by good privatization skills,panctuality,
consistency and commitment to continuous improvement.

2.An employee who seeks opportunities to share knowledge.

3.should be oriented towards solving problems in the business

4.Should be respected by co- workers

4.5 Regulations Affecting Operations

Taxes

There are several Regulations that affects the business like collection of taxes by the government which
hinder the growth of the business

Health Regulations

There is health regulations where by the requirements of the public health for all employees working in
food processing and health centers to have medical cover and always to renew their insurance after
every month

Safety

20
The workers should be provided by protective clothing like mask, gumboots, gloves and others in order
to be secure while working.

6.5 4.6 Equipment or materials

The business will acquire equipments which will help to run the business like lorries,matatus and
motorbikes

21
 CHAPTER FIVE
6.6 5.0 Financial Plan

6.7 5.1 pre- operational costs

The business will incurred costs before the start of the business like labour, licenses, marketing and
advertisement, recruitment, equipment and payrolls, water and electricity.

Items expenses

Labour 35,000

Licenses 1,500

Marketing and advertisement 12.00

Recruitment 12,O00

Equipment 1000

Water 25,000

Elect 15,000

Total 95.000

22
5.2 Estimation of working capital

The business focuses on working capital to know the progress of the business operation by subtracting
the current assets from current liabilities

WC=CA-CL

Current Asset

Stock 26000

Cash at hand 76,000

Cash at bank 15,000

Debtors 2,060

Prepayments 730

Total 119,790

Current liability

Accounts payeble 19000

Taxes 900

Wages 15,000

Interest owned 22,000

Total 56,900

119,790 -56900= 62890

6.8 5.3 Preparation of cash flow projections

This is the financial statement that shows cash in hand and cash out of the business.Transactions that
will generate cash in business inlude sales, payment, from debtors received,net received and loan
received

23
 6.9 Cash flow projections for the year 2023
Details JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash flow TOTAL
Balance bid 2734980 278180 2947380 3301280 3909480 47180805 5582280 5684680 6345989 6345989 6678480
Cash 3000000 3000000
Sales 100000 200000 300000 500000 700000 700000 900000 200000 800000 100000 500000 800000 5800000
Debtor 5000 10000 15000
Total cash inflow 3100000 2934980 3086780 3447380 4011280 46909480 5678080 5782280 6484680 647946 6845980 7478480
Cash outflow
Pre operational cost 194760 194760
Purchases 500000 500000 50000 60000 20000 30000 10000 20000 60000 50000 80000 100000 580000
Salaries 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 600000
Creditors 5000 5000 1000 1000 1000 13000
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
Permits 2000 2000 4000
Repair and maintenance 2500 2500 5000
License 10000 10000
Water 10000 7000 5000 8000 5000 5000 2000 3000 4000 5000 10000 10000 74000
Loan 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 66000
Loan interest 400 400 400 400 400 400 400 400 400 400 400 44000
Insurance 60000 60000
Electricity 10000 10000 8000 7000 5000 4000 3000 2000 5000 7000 5000 5000 71000
Renovation 5000 2500 5000 12500
advertisement 1000 1000 1000 3000
Transport 600 200 300 500 600 200 800 200 400 400 400 4600
Incentives 1200 1400 1500 10000 10000 20000 20000 10000 20000 10000 10000 20000 16100
miselenions 32460 20000 15000 10000 10000 10000 20000 20000 10000 20000 10000 20000 197460
Total cash 365020 153200 139400 146100 101800 128400 95800 97600 105200 133500 167500 272500
Net profit 2734980 2781780 294730 3301280 3909480 4718080 5582280 5684680 6379400 6345980 6678480 7205980

24
6.10 Receipts
Months January February March

Loans 30,000 35,000 50,000

Sales 16,000 17,000 49,000

Debtors 20,000 22,570 32,000

Discount received 5000 5,000 5,000

Total 71,000 79,570 136,000

6.11 Payments
Months January February March

Purchases 20,000 30,000 35,000

Wages and salaries 12,000 12,000 15,000

Creditors 25,000 25,000 30,000

Discount allowed 10,000 10,000 8,000

Total 67,000 77,000 88,000

6.12 Cash flow

Months January February March

Cash flow 145,000 133,000 148,000

Balance B/d 145,000 278,000

Balance B/c 145,000 278,000 426,000

25
6.13 Preparation of proforma Income Statement and Balance sheet

6.14 Proforma Income Statement

Items 2023 2024 2025

Sales 210,000 210,000 210,000

Less cost of sales 1,000,000 960,000 103,000

Gross profit B/d 1,100,000 117,000 1,200,000

Totals 2,210,000 128,7000 1,513,000

6.15 Less Operational Expenses

Items 2023 2024 2025

Wages and salaries 50,000 513,000 501,000

Rent 36,000 311,000 30,000

Water and Electricity 300,000 30,000 20,000

Transportation 29 20,000 20,300

Creditors 32,000 31,890 15,600

Discount offered 19,000 18,000 150,600

Telephone 1,500,000 150,000 150,000

Total 1,057,000 1,075,890 766,900

26
6.16 Calculation of Break-Even Point

6.17 Calculation of profitable ratios

Gross profit ratio = gross profit/ sale *100

year Gross profit ratio

year1 1,100,000/2,100,000=62.4

year2 1,170,000/2,130,000=54.9%

year3 2,200,000/2,230,000=53.8

Net profit ratio=net profit/sales *100

=139,000/21,000000*100

=6.62%

Return on equity

Return on equity = net profit/ equity*100

=139000/514400*100

=27%

Asset turns over

Asset turns over =sales/total assets

=1,100,000/254,000

=4.33 items

Quick ratio

Quick ratio= (current asset-closing stock)/current liabilities

119,790-260,000/56900

=1.6

Liquidity ratio=CA/CL

=119,790/56900

=2.

27
6.18 Desired Financing
This is the type of funding that will suit the business debt /equity or non-traditional financing .It clearly
state how the capital will be obtained from whom, how much and terms.

Item Amount

Pre-operatinal cost 12,900

Working capital 62,890

Fixed assets 200,000

28
6.19 proposed Capitalization.
Item Amount

Owner contribution 51,440

Borrowed funds 26,400

Total investment 76,840

29