NAME: ERNEST KIPKOSGEI

COURSE: DIPLOMA IN INTERIOR DESIGN

COURSE CODE:

CENTRE: EAST AFRICA INSTITUTE OF CERTIFIED STUDIES

SUPERVISOR: MR.KIPCHUMBA

SUBMITTED TO THE JP-UK IN PARTIAL FULFILMENT FOR THE OF

AWARD DIPLOMA IN INTERIOR DESIGN

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DECLARATION

DECLARATION BY THE CANDIDATE

I declare that all the information contained in this business plan is my own original work and no section
of it has been copied elsewhere.

NAME OF CANDIDATE: ERNEST KIPKOSGEI

SIGNED……………………………… DATE…………………….

INDEX……………………….. …………………………………….

DECLARATION BY THE SUPERVISOR

This Project is presented for JP-UK with my own approval as the Supervisor.

Mr. Onyango

SIGNED: ……………………………………,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

DATE………………………………………………………………………..,,,

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 ACKNOWLEDGEMENT
Special thanks to my supervisor Mr. Kipchumba for his assistance, advice and amendments.

Much thanks are to my family for the moral and support without which it would not be possible to pursue
my career.

Also special thanks to my classmates who stood by me through difficult times. Maty the almighty God
shower you all with endless blessings.

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DEDICATION
To my family for the moral support and patience in the course of my studies. You all gave me the
aspiration and determination to carry on this far. 

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Contents
DECLARATION..........................................................................................................................................i
ACKNOWLEDGEMENT...........................................................................................................................ii
DEDICATION............................................................................................................................................iii
EXECUTIVE SUMMARY.........................................................................................................................1
BUSINESS DESCRIPTION.......................................................................................................................1
MARKETING PLAN..................................................................................................................................2
ORGANISATIONAL AND MANAGEMENT PLAN...............................................................................2
PRODUCTION AND OPERATIONAL PLAN..........................................................................................2
FINANCIAL PLAN....................................................................................................................................3
CHAPTER ONE..........................................................................................................................................4
1.0 BUSINESS DESCRIPTION..............................................................................................................4
1.1 BUSSINESS NAME.....................................................................................................................4
1.2 BUSINESS LOCATION AND ADDRESS.......................................................................................4
Business Location........................................................................................................................................4
1.3 FORM OF OWNERSHIP..................................................................................................................6
1.4 TYPE OF BUSINESS.......................................................................................................................7
1.5 THE PRODUCT AND SERVICES...................................................................................................7
1.6 JUSTIFICATION OF OPPORTUNITY............................................................................................7
1.7 THE INDUSTRY..............................................................................................................................8
1.8 GOALS OF THE BUSINESS...........................................................................................................9
1.8.1 LONG TERM GOALS...................................................................................................................9
1.8.2SHORT TERM GOALS..............................................................................................................9
JUSTIFICATION OF THE OPPORTUNITY.......................................................................................10
THE INDUSTRY..................................................................................................................................10
1.9 THE ENTRY AND GROWTH STRATEGY......................................................................................11
CHAPTER TWO.......................................................................................................................................12
2.0 MARKETING PLAN......................................................................................................................12
2.1 CUSTOMERS.............................................................................................................................12

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 2.2 MARKET SHARE..........................................................................................................................12
TRENDS...............................................................................................................................................13
2.2.1 AMOUNT OF UNITS SOLD AND SALES AVAILABILITY...................................................13
PIE CHART SHOWING DISTRIBUTION OF THE CUSTOMER SHARE IN THE MARKET........14
2.3 COMPETITION..........................................................................................................................14
POTENTIAL COMPETITORS.........................................................................................................14
COMPETITION ANALYSIS............................................................................................................15
2.3.1 EFFECTS OF THE COMPETITORS ON THE BUSINESS....................................................15
2.3.2 GEOGRAPHICAL LOCATION OF COMPETITORS................................................................15
2.4 METHODS OF PROMOTION AND ADVERTISING..................................................................16
2.4.2 ADVERTISEMENT.................................................................................................................16
2.5 PRICING STRATEGY...................................................................................................................17
FACTORS TO CONSIDER DURING PRICING.................................................................................17
SETTING SALES TARGET CAPITAL...............................................................................................18
SALES TACTICS.................................................................................................................................18
2.6 SALES TACTICS...........................................................................................................................18
DISTRIBUTION STRATEGY..............................................................................................................19
METHODS OF DISTRIBUTION.........................................................................................................19
CHAPTER THREE...................................................................................................................................20
3.0 ORGANIZATION/ MANAGEMENT PLAN.................................................................................20
3.1 ORGANIZATION STRUCTURE...................................................................................................20
3.2 KEY MANAGEMENT PERSONNEL /BUSINESS MANAGERS................................................21
3.3 OTHER PERSONNEL DUTIES AND RESPONSIBILITIES....................................................22
Interior Designer Job Description..........................................................................................................23
Interior Designer Responsibilities:....................................................................................................23
Interior Designer Requirements:........................................................................................................23
INTERIOR DECORATER................................................................................................................23
3.4 RECRUITMENT, TRAINING AND PROMOTION......................................................................24
3.4.1 RECRUITMENT......................................................................................................................24
3.4.2TRAINING....................................................................................................................................24
3.4.3PROMOTION METHOD..............................................................................................................24

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 3.5 RENUMERATION AND INCENTIVES........................................................................................25
3.5.1 RENUMERATION GUIDELINES..............................................................................................25
3.6 LICENCE AND PERMITS AND BYLAWS..................................................................................27
3.7 OTHER SUPPORT SERVICES......................................................................................................28
CHAPTER FOUR.....................................................................................................................................29
4.0 OPERATIONAL / PRODUCTION PLAN......................................................................................29
4.1 PRODUCTION FACILITIES AND CAPACITY...........................................................................29
4.1.3 FEATURES OF WORKSHOP LAYOUT –GROUND PLAN.....................................................30
4.2.1THE COST OF LABOUR.............................................................................................................31
MONTHLY LABOUR REQUIREMENT.............................................................................................31
MONTHLY LABOUR REQUIREMENTS..........................................................................................32
COST OF PRODUCTION................................................................................................................32
PRODUCTION PROCESS...............................................................................................................32
4.2.3 PRODUCTION OVERHEAD COST PER MONTH...................................................................33
4.2.4 SUMMARY OF TOTAL MONTHLY PRODUCTION COST....................................................34
4.3 PRODUCTION PROCESS.............................................................................................................34
4.4 REGULATION AFFECTING OPERATION..................................................................................35
CHAPTER FIVE.......................................................................................................................................37
5.0 FINANCIAL PLAN........................................................................................................................37
Important Assumptions......................................................................................................................37
5.1 PRE-OPERATIONAL COSTS.......................................................................................................37
5.2 ERNEST INTERIORS WORKING CAPITAL..............................................................................38
ERNEST INTERIORS.....................................................................................................................39
5.2.2ERNEST INTERIORS.................................................................................................................40
INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2022.....................................40
5.5 PRO –FORMA BALANCE SHEET...............................................................................................41
5.6 BREAK EVEN LEVEL..................................................................................................................42
ERNEST INTERIORS FOR THE YEAR ENDING 31ST DECEMBER 2022..................................42
5.7 PROFITABILITY RATIOS............................................................................................................43
5.8 DESIRED FINANCING.................................................................................................................44
5.9 PROPOSED CAPITALIZATION...................................................................................................44

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EXECUTIVE SUMMARY
Ernest Interiors is a proposed venture that will offer comprehensive interior design services for
homes and offices in the Boulder, Eldoret area.  Ernest  Interiors also will provide access
to products to complement the design consulting services including furniture, both new and
antique, decorator fabric, and home and office accessories.  This venture offers the personalized
services the target market desires and can afford in a way that is unique from concept to
implementation.

Recent market research indicates a specific and growing need in the area for the interior design
consulting services and products Ernest Interiors offers the market it will serve.  The market
strategy will be based on a cost effective approach to reach this clearly defined target market. 
Although the population of Boulder is under 100,000, the market has a significant quantity of
relatively wealthy households that are conscious of the appearance and feel of their home and
offices.

The approach to promote Ernest Interiors with be through establishing relationships with key
people in the community and then through referral activities once a significant client base is
established.  Ernest Interiors will focus on developing solid and loyal client relationships
offering design solutions based on the client’s taste, budget, use, and goals for the space.  The
additional selection, accessibility of product, design services, and value-based pricing will
differentiate Ernest Interiors from the other options in the area. 

BUSINESS DESCRIPTION
Ernest Interiors is an interior design service for discerning, quality-conscious clients that seek
assistance in their design choices for their primary residences, vacation homes, and
businesses.  This experience offers personal attention through the design process and also
provides design resources and products to its clients through special purchases of furniture,
fabric, and accessories. The total experience is provided in a way to inform, inspire, and
assist people through the process of transforming their home or business environment to
become a unique and personalized expression of themselves and add to their enjoyment of that
interior space.

The store is founded by Ernest , who are recent college graduates with a passion for interior and
all things modern and trendy. They have spent many years cultivating designs and sketches in
their dorm room and are ready to branch out to make their dream a reality. They have researched
and found a supplier warehouse who can source good quality material and can manufacture their
designs at a reasonable cost.

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MARKETING PLAN
The business environment will provide ready market and favorable market share due to high
population of potential customers such as individual, institution; commercial customers and
competitors. Promotion and advertisement of the interior products will be done through media,
exhibitions and educational literature. The business will operate in discounting, market pricing
with a zero channel distribution method and over counting purchasing.

ORGANISATIONAL AND MANAGEMENT PLAN

The business will be owned and managed by single general manager with the help of other
personnel such as manager, designer, production assistance manager and tailor. The management
will ensure licensing of the business, remuneration of its employees will be done according to
employees qualifications and working experience.

PRODUCTION AND OPERATIONAL PLAN

Ernest Interiors focuses on providing interior design consulting.  This is complemented
by specially purchased furniture, art pieces, decorator fabric, and accessories for the home and
office.  The sales process will begin with interior design consulting services, and then progress
on to offer specially selected components to complement the design theme.

Products available through Ernest Interiors include:

 A line of drapery hardware called “Oval Office Iron” purchased through Dept. of the
Interior Decorator Fabrics in Eugene, Oregon found at www.fabric-online.com.   
 Accessory and art pieces available through wholesale shows.
 Hunter Douglas window treatment products including a variety of hard window
coverings.
 Interior shutters made of wood and a plastic/resin product called “polywood.”
 Antiques acquired for specific client needs through an arrangement with a local antique
buyer and through direct purchases through other sources.

The business will commence it`s early daily operation from 6:00 a.m-8:00 p.m. modern
technology machinery will be used to ensure efficiency in production. The business will incur
monthly expenses for production such as labor cost, raw materials cost and production on

9
finished goods and distribution. Rules and regulation that bind the business will be catered for to
ensure maximization of sales cost of production.

FINANCIAL PLAN
Cash required starting and progress the business is approximately Kshs 700,000.This will be
used to purchase machinery products and equipment, fixed assets, production cost and purchase
raw materials. This includes pre-operational and registration of the business, the business will be
financed by:

Bank loan from equity bank =Sh 200,000

Personal savings =Sh 300,000
Family and friends contribution =Sh 200,000

In return of the financial gross profit this will be 60% of services offered to customers and goods
return on investment.

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CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 BUSSINESS NAME
The name of the proposed business will be ERNEST INTERIORS: the name is derived from the
owner’s family name ‘ERNEST ’. The name of the business is also easy to read and remember.
The business name will be registered as ERNEST INTERIORS after making a lot inquiry from
the registrar of the business. This will ensure no other business portrays the same name as
identified by business owner. The business owner will acquire a certificate of registration from
the Regional office within ELDORET town.

1.2 BUSINESS LOCATION AND ADDRESS

Business Location
The address will be as:

ERNEST INTERIOR,

P O Box 1160,

ELDORET.

Tel: 0711917877,

ERNEST INTERIOR will be located 4 kms from Eldoret Town on Elldoret – Uganda road at a trading
centre known as “Maili Nne an estate in Uasin Gishu County The business situation will be situated after
Railway Cross Line. It will be situated only 50 metres from Brook Academy at Kapsaos Secondary
School Junction.

The following Map will aid the customers to trace the ERNEST INTERIOR.

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 TO UGANDA
B.E

FROM
H. E
ELDORET

N
N
Ernest
interior

M.E

4 KM

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KEY:

H.E. - Huruma Estate

B.E. - Bacon Estate

K.E. - Kahoya Estate

M.E. - Maili Nne Estate

1.3 FORM OF OWNERSHIP

The business will be sole proprietorship type of business .There are many factors and reasons
why the business is preferred as a sole proprietorship form of ownership:
The business is easy to form and dissolve it does not require many people to start and maintain is
the owner herself.
There is freedom in decision making and implementation of policies, strategies of how the
business is supposed to be run and the activities involved.
The business owner enjoys all the benefits that is occurred in the business alone since is the
person to integrates and co-ordinate the business and account for the loss incurred and the profit
gained.
It fosters creativity and innovation enabling the proprietor to exploit his talents, abilities without
limitation or from wherever source. Thus being the one to see how well he can venture and get
market for the business sustainability.

Contributor Amount (Kshs.) Percentage (%)

Personal savings 300,000 42
Friends and family contribution 200,000 29
Loan from Bank 200,000 29
Total 700,000 100

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1.4 TYPE OF BUSINESS

Many interior design businesses are product-driven – they offer clients design advice and sell
them furnishings and other products to achieve a particular style and “look.” In this type of
design business, the designer makes most of their money from product sales. However, interior
designer businesses can also focus on consulting. In this types of business, the designer is
selling their advice and expertise and is more often paid by the hour, or by the project. Some
design consultants specialize in areas such as feng shui, or children's rooms.

This area of interior design requires some skill or training in carpentry, painting, general
construction or plastering. Restoration designers, also called conservationists, specialize in
preserving and restoring vintage features and furnishings. Many restorers specialize in a
specific area of restoration, such as furniture, plasterwork, period paints and painting
techniques. Others may specialize in sourcing vintage accessories and materials to be used in
restoration projects.

Providing interior knowledge, skills and pamphlets on its product and services to individual
groups and members. Provide discount to some of its products that are on offer from particular
manufacturers.

1.5 THE PRODUCT AND SERVICES

Our primary points of differentiation offer these qualities:

 A unique client experience from a trained and professional interior designer that is

qualified and capable of meeting the needs of discerning clients with high expectations.
 Access to a wide and unique selection of new and antique furniture, accessories, and
special-order decorator fabrics.
 Personal assistance from a complementary product offering, including hard-covering
window treatment, hardware, and home accessories that fit the look and objectives of
each project.

.The products will be high quality and charged at a reasonable price.

We will ensure we sell durable suitable and economically friendly products.
The goods we will sell will be mostly bought from the direct manufactures of the products so as
to avoid buying fake products.

1.6 JUSTIFICATION OF OPPORTUNITY

Few competitors

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Few competitors are one of the factors that favor my choice of business that is interior and
business. Eldoret town so far has interior shops, textiles ; they are less than eight in number and
so sure of getting customers

Raise living standards

The is need to cut cost of repairing infrastructure due to rise in living standards, the need for
good quality materials for building permanent infrastructure will provide a ready market to
venture.

Self-employment
Due to high population which leads to unemployment in the country, the business will create
self-employment and will enable to earn a living to sustain my life for other people in the area.

Population
Being an urban area, there are higher possibilities of being putting up a new infrastructure which
might create a high demand of the product services.

Infrastructure
The availability of roads, electricity will enable the business to transport the products without
any problem.

Industrialization
The town and the surroundings industries which might require the products and services in
putting up their neat structure, local authority to ensure production of quality products and proper
disposal of waste that are harmful to the environment. In today’s world especially in Kenya there
are cases of unemployment.

1.7 THE INDUSTRY

Ernest Interiors is a start-up business that will offer comprehensive interior design services for
home and office.  This business will assist those that want to have guidance and council in
developing a basic design concept of their project, to the person that desires someone to take it
15
from concept to complete implementation.  Barton Interiors will offer the ability for clients to
purchase new and antique furniture, art work, decorator fabric, and home accessories.  The
website www.bartoninteriors.com will be used as another way to communicate the
services available and provide a portfolio of the work accomplished.  The business will begin as
a home-based business and is expected to remain in this structure through at least the first three
years.

1.8 GOALS OF THE BUSINESS

The business is striving towards becoming the most successful interiors-dealer in the region it
will provide quality products services and will base its products on all interior spheres.

1.8.1 LONG TERM GOALS

Expansion
By the end of one year the business will grow and enlarge and this will be sustained on its
advancement.

Income generation
By the end of the 2nd year, the business aim to earn more income which can be used to pay more
salaries to the employees thus increasing standards of living

Popularity
By the end of 2nd year the business aims to capture and maintain 15% of the market share and
this business name will be known.

Salary increment
By the end of 3rd year the business aims to increase employees’ salary and this will be a great
favors to the employees.

1.8.2SHORT TERM GOALS

Improve customer relationship
By the end of the five months, the business aims at improving and main customer`s relationship.

16
The businesses will create more jobs opportunities by increase of 20%

JUSTIFICATION OF THE OPPORTUNITY

The business is located in the central business center where maximum security of the business,
customers and workers is looked upon. So as to be fair and bring equality different products
which include those locally produced will be available.

Creation of employment to the youths will be among the goals set by the business and also
utilization of all available resources so that the community will be included in the business.
Continuous provision of goods will be available so as to cater for all the potential customers in
the market.

The economy of the area will increase because of high sales of, improves standard of living, job
opportunities in the business which will in turn reduce the rate of crimes and good health from
products.

THE INDUSTRY
The business will be a service industry to cater for all the needs of the customers. There will be
also increase of the business as time goes due to the ongoing development and growth of the
area. The number of employees will be according to the size and growth of the business in
particular.

There is stiff competition from other businesses around it but due to the formulated strategies
and plans it will be easy to curb the competition.

This incoming trend is applied in the businesses going hand in hand with the modern technology
electronic gadgets are being modified in the smallest manner where everything is changing
analogue to digital world. This modern technology has to go hand in hand with the amount of
capital to be invested.

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1.9 THE ENTRY AND GROWTH STRATEGY
For the entry strategy the ERNEST INTERIORS is planning to use very competitive ways of
advertising its products and services. For the penetration and gaining of market of the newly
established business Agro interior is planning to use some competitive advantage e.g. advertising
of the business and its products through media, posters, sign posts it will use local stations like
chamgee FM, kitwek FM and milele fm.
The business will offer transport facilities to customers who buy in bulk and also discount to
those customers.
The business will straightly observe on good customers relationship with the employing skilled
workers and holding seminars and training of employees on good relationship with customers.
Employees will be provided with protective gumboots, helmet, aprons etc. for identification and
hygiene purpose.

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CHAPTER TWO

2.0 MARKETING PLAN

Ernest Interiors has a defined target market client that will be the basis of building this
business.  This client is identical for both the residence and office spaces, but the target market
is identical based on her different roles for each of those spaces. 

Effective marketing combined with an optimal product offering is critical to the Barton

Interiors’ success and future profitability. The owner possesses solid information about
the market and knows a great deal about the common attributes of those that are expected to
be prized and loyal clients. This information will be leveraged to better understand who Barton
Interiors will serve, their specific needs, and how to better communicate with them.

2.1 CUSTOMERS
The environment where the business will be located has different classes of people who
contribute positively to the development and growth of the business.
They include:

Individual customers
These are small scale interiors and the general public, who are destined to buy interior products
who have high purchasing powers act like occasional customers who will enjoy economic of
scale, this will allow them to make a profit .Their mode of payment will be mostly cash.

Commercial customers
These are customers who will purchase the products for selling in their businesses. These
customers will be mostly be sold goods at wholesale price.

2.2 MARKET SHARE

Interior design is a multi–faceted industry in which innovative and technical design concepts
finish or modify an interior environment to the specifications of the clients. The interior design
industry includes firms that primarily deal with the planning, designing, and management of
projects within a variety of interior spaces.

Interior design companies and design consultants must consider the required building codes and
health and safety regulations for all projects. Designers must also to take into account any
19
electrical and mechanical needs, interior fittings, furniture, traffic patterns, and floor planning.
Profitability of interior design companies depends upon the volume of the projects they take on,
as well as the accuracy of bidding, and timely delivery and completion of projects.

Reports in this section include, but are not limited to, different components of the market, such
as decorating and decoration products merchants, design in furnishings, office and industrial
interior design, painting and remodeling, industry analysis for different countries, and
transportation of materials used by interior designers.

TRENDS

In today’s post, we’re going to review the top 12 interior design trends for 2022.

A trend, when defined with regards to fashion, refers to the styling, colors, materials, and shapes
that are popular in a particular season and that might have a long-term influence on the market.
Interior design trends are similar to fashion trends, as both are inspired by the culture and current
events. Trying to discern the direction that the latest trends will be taking and which styles,
materials, and colors will be most appealing to consumers in the coming season is a real
challenge for designers and architects, and requires a great deal of detailed research and
observation.

2.2.1 AMOUNT OF UNITS SOLD AND SALES AVAILABILITY

With the approximated population of people, the amount of units sold will be 15,000 units which
amount to 3600 units a month. This can be illustrated as

ERNEST INTERIORS
9000 X 100% = 60%
15,000

The competitors will share the following part of the potential customers as follows;

5000 customers for JADE arts and designers

4,000 x 100%
15,000
= 27%

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 2,000 customers for ELDO interior DESIGNERS
2,000 x 100%
5,000 = 13%

PIE CHART SHOWING DISTRIBUTION OF THE CUSTOMER SHARE IN THE

MARKET
Sales
70

60

50

40

30

20

10

0
Ernest in- Rivatex Eldobest
teriors interior
designers

2.3 COMPETITION
The interior is based in interior industry whose growth is incentive. Therefore many
interiorindustries are emerging on daily basis due to demand of the interior products.

POTENTIAL COMPETITORS

DESCRIPTION
Size of the competitors
They are in small size expect
They lack customer satisfaction.

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COMPETITION ANALYSIS
Strengths

 Experience and understanding of the interior designers industry

 Unique shopping experience with exceptional customer service
 Great downtown location
 Large and growing consumer base
Weaknesses

 Untested market in eldoret

 While market is large, it is a niche market (Baby Boomers)
Opportunities

 Outstanding shopping experience will lead to repeat business

 Growing online design store for interior designers

Threats

 Cost and effectiveness of marketing to women “Baby Boomers”

 New retail shops that may or may not open in the future

2.3.1 EFFECTS OF THE COMPETITORS ON THE BUSINESS

 All are located within the town center.
 Changes in price of product as per the business.

2.3.2 GEOGRAPHICAL LOCATION OF COMPETITORS

Jade Collection is located not far from the business premises and has good return of customers
but poor equipment.

HOW TO OVERCOME THE COMPETITORS

 Use of modern technology.
 Ensure effective products advertisement and fair pricing with quality products and
services.

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2.4 METHODS OF PROMOTION AND ADVERTISING
2.4.1 PROMOTION

 Used to encourage sales of commodity in a targeted marketed mix.

 Commonly used during introduction of a new product in the market. It includes the
following elements, public relation, publicity and personal selling sales promotion.
 The business shall use the following promotion method.

Good public image

 The business will relate well with its customers and competition through use of
communication skills this improves image of the business.
 Calendar and other publications such as free booklets and note book with the business
products services on the margin. Use of T-shirts which bears the business name and logo.

Operation hours
It will operate on long hours from 6.00am to 8.00pm.

2.4.2 ADVERTISEMENT
The aim of advertising is to attract more customers and orientation of the business to the world at
large. The business will put in use the following forms of advertisement.

The media
The business will advertise its product through television and radio programs.

Billboards and posters

Will be put in different places roadside, roundabout and junctions.
Building of interpersonal relationship with neighboring school, factories, and general public for
example issue time table free after sale or inquiry of the interior products and services.

Cost

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The business will try its best to minimize the cost of advertisement to reduce the expenses; the
business therefore will advertise some of its products through the use of employees.

Frequency of advertisement
The business will do advertisement once a day through radio Jambo and upendo fm.

2.5 PRICING STRATEGY

An effective pricing strategy in the interior design industry is essential in improving sales,
uplifting your brand and making you a competitive powerhouse. There are a variety of methods
that you can use to start setting up prices for your product and they depend on several things,
including your brand type, your business goals and your target market. One of the most
challenging areas in setting up a interior design business is determining the right marketable
prices for your goods. Fair and effective prices are ones that can be justified based on the quality
of goods being sold, your location and your competition. Due to the fact that the interior design
industry is particularly competitive, the faster you can strike a balance between a healthy profit
margin and sales volume, the sooner your business can grow.  As an emerging designer, you are
faced with the challenge of how to price your goods versus other global designers and retailers.
You can neither afford to be too expensive, especially if you are starting out, nor be too cheap
because that could also prove to be financially disastrous for your business. As a result, you have
to study your market and get acquainted in ways to effectively price your products. Here are
some guidelines to look at as you think about your product prices.

FACTORS TO CONSIDER DURING PRICING

Objective of the pricing
 Price set will cover the cost of production; therefore the price must yield return.
 The market structure
 The business will be simply a rice taker because of high competitive market structure
 Government policy regarding monopoly pricing
 Degree of physical differences such as product texture and packaging.

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SETTING SALES TARGET CAPITAL
The entrepreneur shall target a sales volume that will ensure the return of capital used and to
avoid the business operating under its capacity.
A break even analysis chart to determine sales targets as shown below.

SALES TACTICS
The entrepreneur will be taking orders from learning institutions and other firms within the
business location and deliver the services with a better discount to create good image of the
proposed business.
The business shall hire competent team of sales personnel who will be paid a commission on
product or services sold. The proprietor shall pay a commission of 3% (percent) on all sales
made. The sales personnel shall carry fliers, handouts and even business card bearing the
business identity and a list of products and services offered.
The business shall also improve the image of the product to ensure a good display of its product
in the market world. Due to attraction and retention of customers the business shall offer
discounts on its products. The business shall also encourage bulk buying and consumption of
services
The business shall create shows and exhibitions to hype its products and services thus probing a
demand of its products and services in the mind of undecided customers.

2.6 SALES TACTICS.

The business will use the following selling tactics
 Direct selling to both potential and regular customers
 Discounting of products
 Credit services especially to potential customers
 Impromptu services during low sales and reduce overstocking
 Use of agents and promoters by staff quarters
The business will utilize distributors and agents.

25
DISTRIBUTION STRATEGY
The entrepreneur will work on means through which service will be delivered to all customers at
the right time in right condition and also offer installation as a service.

The proposed business realizes that its strength will be derived from an effective customer
service strategy. The business shall come up with an assessment of high products which are
made to suit the needs of customers.

Before coming up with new products, the business shall assign a team which will go explore the
needs of customers with respect to our products in order to offer relevant products which satisfy
customers. A customer service team will be employed responsible for making communications
through emails face to face and telephone calls that will leave customers with a positive
impression about the business. The business shall also survey to access the level of satisfaction
of its customers.

METHODS OF DISTRIBUTION
According to The Economic Times: “Place in the marketing mix refers to the channel, or the
route, through which goods move from the source to the final user. Place could be the
intermediaries, distributors, wholesalers and retailers.”  To determine which distribution method
is used, the company must understand the needs of the consumer and determine which avenue
provides the best ability to put the product or service in front of the potential buyer. Below we
take a look at the main channels we commonly see in the marketplace for sales to customer:
Retail Stores – This is a tried and true method.  Selling to stores or having your own store is a
great way to get your merchandise out there.  People love to shop and use it as a form of
entertainment.  So even though retail stores are not growing as they had in the past it is still a
major source for sales.  Having people see, touch, and try on all at once is a big advantage.

26
CHAPTER THREE

3.0 ORGANIZATION/ MANAGEMENT PLAN

The proposed business will be managed by the owner who is also responsible of formulating
rules and regulations governing the firm. The management team includes the manager who is
also a purchasing manager, accounts supervisor, designer and tailor. The non-management team
will include general workers, security personnel and the drivers.

3.1 ORGANIZATION STRUCTURE

MANAGER

ACCOUNTS Interior designer Interior decorator

SUPERVISOR

SECURITY DRIVER Sales person

PERSONNEL

27
3.2 KEY MANAGEMENT PERSONNEL /BUSINESS MANAGERS

NAME POSITION QUALIFICATION DUTIES AND RESPONSIBILITIES

Manager Must have diploma in BA or He/she will be creating policies to the
Interior Design. management
Must have knowledge and He/she will carry out firm purchases
skills from the study of Organize the annual general meeting
entrepreneurship and Interior Carry out research towards business
Design. improvement
Must have experience from Responsible for allocating activities to
any institution where she was the staff
on industrial attachment

Accountant KATC final certificate or Keep books of accounts

must have a diploma in Prepare annual reports
Business Administration Writing receipts and filling copies of it
Must be computer literate for reference
Must be honest , trustworthy Deposit and withdraw money on behalf
and should be a person of of the manager
integrity Should work under minimal supervision

Salesman Should have a certificate in Keep inventory records

sales and marketing. Check delivery and stock available
Should have been in a Receiving goods from the suppliers and
working field for years issues them to customers
Must be honest and
trustworthy
Should have good public
relations
Should be of age 20-45 years

28
3.3 OTHER PERSONNEL DUTIES AND RESPONSIBILITIES

NUMBER OF EMPLOYEE QUALIFICATION DUTIES AND

EMPLOYEES RESPONSIBILITIES

2 Security Must have certificate for National To direct customers

Personnel Youth Service (N.Y.S) on defense To maintain law and order

Must have an age of between 20- around the business

45 years premises

Must have general knowledge of To provide 24 hours

education security around the business

premises

1 Driver Should have ABC class driving To liaise with both

license purchasing and marketing

Must have 5 years working on goods to transport either

experience to the form or to customers.

Must be a form four leaver with a Be in charge of the transport

minimum grade mean grade of facilities and inform

D+ management on necessary

repairs and maintenance

3 CARRIERS Any person To help in moving of goods

Must be over 18years old

29
 Interior Designer Job Description

We are looking for artistic, detail-oriented candidates with good interpersonal skills for the position
of an interior designer. The interior designer's key responsibilities include visualizing and sketching
design plans as per client goals, sourcing products and materials, determining costs and inspecting
construction to ensure alignment with design specifications are met. You will also be expected to
comply with the regulatory environment around inspections and building codes.

Good interior designers are able to think creatively about the use of space, color and movement and
will draw on other artistic mediums for creative inspiration. They will also be effective
communicators with the ability to persuade in communicating a design idea.

Interior Designer Responsibilities:

 Outline client design objectives.

 Conceptualize and sketch design plans.
 Determine cost of completion and project requirements in the budgeting phase.
 Set a timeline for the completion of an interior design project.
 Source materials and products included in plans.
 Create 'mood boards' to sample your design vision.
 Utilize computer applications in the design process.
 Inspect design after completion to determine whether client goals have been met.

Interior Designer Requirements:

 Portfolio of design work.

 Project management experience.
 Experience with computational design.
 Highly creative, imaginative and artistic.
 Excellent communication skills, especially in regard to communicating an artistic vision.
 Proficiency in AutoCAD, Illustrator, SketchUp or similar design software.

INTERIOR DECORATER
Interior decorators enhance the inside of buildings or specific rooms in a building to meet the
needs of the inhabitants. They choose colors, paints, furniture, floor and window coverings, and
lighting. Interior decorators' work improves the interior space of homes, offices, and a wide
variety of businesses and organizations.

30
The Work
interior decorators spruce up the interiors of homes and businesses such as office buildings,
theaters, restaurants, and malls. They may work on an entire building or focus specifically on a
single room, such as a bathroom, kitchen, or bedroom. No matter what kind of interior they are
enhancing, interior decorators have certain typical job duties.

3.4 RECRUITMENT, TRAINING AND PROMOTION

3.4.1 RECRUITMENT
ERNEST INTERIORS intends to recruit employees basing on their educational levels and
experiences, recruitment will be done advertisement through posters and employees educational
Institute and through chief Barraza’s. The business intends to liaise with many training
institutions purposely for graduates who are above average performance.
This will really enable the business enterprise to improve its handling of differed tasks for
effectively. Nevertheless any recruitment exercise that will require advertisement will be done
through appropriate advertisement media.

3.4.2TRAINING
The business intends to train employees in future on necessary skills required in business. This
will also be done when the business had grown and had generated more profits. Employees will
be taken for workshops and seminars, exchange programs and inviting experts to advise
installation of computer in the business to cope with changing technology and to increase the
competitiveness of the business.

3.4.3PROMOTION METHOD
This is an act of promotional employees as matter of motivating than in their various fields of
operations. Employee’s promotion will be based on.

Their efficiency

31
The proprietor intends to promote hardworking workers who work efficiently with the aim of
increasing productivity to the firm.

Academic qualifications
Employees who possess high education level will be promoted accordingly. This is due to the
experience and skills they possess.

Hardworking and honest

The proprietor intends to promote hardworking and honest employees. This is done through their
measurable performance.

In case of high future returns

The business intends to promote their employees in future when the have experienced high profit
margin.

3.5 RENUMERATION AND INCENTIVES

3.5.1 RENUMERATION GUIDELINES

The business intends to pay employees wages and salaries under the regulations and wages terms
of employment. This will assist the business to meet with the legal requirement and those factors
will be considered when paying employees’ wages and salaries.

Nature of the job

Employees will be paid according to the type of the job in the business.
Number of days worked
Employees’ salaries will be paid basing on the number of days worked in a month.

Job groups
The proposed business plan to employ casual workers in future, terms of payment will depend on
whether an individual is casual worker or permanent employee.

32
3.5.2 INCENTIVES

These are reward offered to the employees. They are meant to motivate them in undertaking the
activities effectively.

Presents and rewards

Efficient and effective employees will be rewarded with presents in order to motivate them.
Organizations trips
The business after a reasonable time will arrange to take their employees for a trip. This act will
motivate them.

Writing letters and materials

Management will ensure that whenever an employee does well in certain areas in the business
they are given a recommendation letter of appreciation with relevant signature and business logo.
This will help them during employee’s promotions.
Also the business will offer the following;

Free lunch and tea

The business will ensure its employees are given tea and allowances.

Transport allowance
Transport allowances will be granted to employees to enable them to come to work on time and
break for their home at the evening without much inconveniences.

Overtimes
The business will come up with a package of rewarding overtime to every extra one hour to
encourage the workers to work selflessly to attain the business objectives.

Medical allowances
Medical allowances will be grated to employees of the proposed business in case of illness.
Pension

33
The business plans to register all employees with the national Social Security fund (NSSF) so as
to secure monetary for retirement age.

3.6 LICENCE AND PERMITS AND BYLAWS

It regard to the terms of business operations in the country, enterprise has to acquire some
monetary documents to legalize its operation. The documents to be acquired are:-
 Trade license from the Eldoret town council
 Transport license from transport license board
 Medical certificate from Eldoret hospital

Licenses
The business will obtain permission for the activities by obtaining a license from the central
government under the ministry of trade and industry licensing law of Kenya.
Permit
The business will obtain a permit from (legal government) law of Kenya. The business will be
given an authority to operate in the site after filling a form showing name, location and the nature
of business. The proposed business will therefore be registered under its official name to
commence its operation.

By- laws (legal requirement)

Part II taxation power and revenue sharing section 220
Taxation power
The law states that taxations and other revenue government and district government shall set out
the schedule thus the location authority taxes are collected from all business operating within
eldoret town to raise revenue which is used for improving trading within the town such as water
projects, repairs of sewages, repair of roads and other sanitations premises.
Environmental and Natural Resources Act 8 section 89.
Discourage waste and encourage recycling
The law discourages waste and encourages recycling thus council requires each business
operation in town to ensure proper collection of waste and disposal in the specific areas.

34
This by-law will be of great importance to Ernest interiors i.e. will enable the business operate
effectively and efficiently within any legal problems with the government of Kenya or the county
council authority.

3.7 OTHER SUPPORT SERVICES

These are services offered by other business entities to the proposed business to ensure that
processes and operation unfold smoothly. They include:

Banking Services
KENYA COMMERCIAL BANK
P.O.BOX 4321
ELDORET
TEL: 022-11806040411

Medical Services
ELDORET HOSPITAL
P.O.BOX 11
ELDORET
Postal Services
NANDI HILLS POST OFFICE
P.O.BOX 0400
ELDORET
TEL: 050-0126175

35
CHAPTER FOUR

4.0 OPERATIONAL / PRODUCTION PLAN

Production and operational plan deals with how the business will provide its product and the
facilities that will be used in production

4.1 PRODUCTION FACILITIES AND CAPACITY

Ernest interiors is expected to produce offer and sell high quality products and services that will
be in high demand thus the enterprise is aspiring to have opened its business from 7.00am to
allow its customers to buy products for their day to day activities as early as possible.
The machines he purchases are durable, easy to
Maintain and work output is to the satisfactory level. The machines are listed below some;
ITEM QUANTITY UNIT COST TOTAL COST
COMPUTERS 2 20,000 40000

TABLES 10 500 5000

CHAIRS 20 250 5000

DRILLING 5 3,000 15000

MACHINE

Surface grinder 2 3,500 7000

Mobile tool box 3 1,500 4500

Office books 5 200 1000

Sawing machine 5 100 500

Calculators 2 1000 2000

Total 54 30050 80000

36
The business will require to other facilities such as:
item cost model

SAWING MACHINES 1500

Cupboard 1000

Furniture 7000

Computer 9000

tool Box 20000

total 47500

Machines and equipment will be locally obtained with agreement for transfer to the owners
premises.

4.1.3 FEATURES OF WORKSHOP LAYOUT –GROUND PLAN

GENERAL MANAGER PERSONNEL

MANAGER

ENTRANCE

CCCU decorator

Designer

ACCOUNTANT TRANSPORTATION
OFFICE
5.2 PRODUCTION STRATEGY

The business will incur monthly expenses for the production on

EXITthe following.
DOOR

Labor cost
SECURITY GUARD
37
Raw material cost
Production overhead cost

4.2.1THE COST OF LABOUR

It involves employees’ salary and allowances
TITLE NO. OF WORKERS AMOUNT (SHS)
Manager 1 20,000
designer 1 15,750
Accountant 1 14,450
tailor 2 7,250
Production assistant manager 3 10,150
security 4 2,100
Driver 2 7,250
5 2,175
Total 19 79,175

MONTHLY LABOUR REQUIREMENT

No of Workers Cost/Hr. No. of Hours/Month
Manager cost/hr. = cost per day
24 hrs. (a day)
= 20,000 = shs. 27.77hr
30
1.27.77(24x30) = shs.20,000
designer 15,750 (24x30) =shs.15,750
30
Accountant 14,500(24x30)
30 = sh 14,500

tailor 7,250 (24x30)

30 = sh 7,250

38
Production Assistant manager 10,150 (24x30)
30 = sh10,150

Security guard 2,100 (24x30)

30 = sh 2,100
Driver 2,175(24x30)
30 = sh2,175

MONTHLY LABOUR REQUIREMENTS

The labor required will be offered by all the members of staff and will include all the skilled and
the semi-skilled workers.

The business will also include professional workers who will be hired to help in the maintenance
process.

Occasionally there will be increase in the number of workers as the pick season approaches who
will work temporarily where the sales level will be higher than the normal seasons.

COST OF PRODUCTION.
The total cost of production is comprised of summing up the total cost of materials required, total
labor and the total expenses.

Monthly Labor Requirements 98000

Monthly Material Requirements 99000
Other expenses 19500
Total Cost of Production 216000

PRODUCTION PROCESS
For the production to be complete, the manpower, equipment, control function and service
activities are needed to be coordinated properly. Controlled activities ensure that the production
process is implemented. For the business to do well, the cost of production must always be less
than the sales for profit making. Good attractive wages and motivation of employees, security

39
and conducive vary depending on customers income. The price will be charged in comparison to
the prices environment is essential to the products. Coordination and communication will be
emphasized between the workers in order to make the business a success. If the above qualities
are observed the business will be able to meet the needs of the client at the shortest time possible.
Every business has external and internal factors which include
Internal factors
 Power blackout
 Non-productive workforce
 Breakdown of machines
 Lack of communication and co-ordination between workers leading to quarrels between
them
Solutions to these factors
Repair and maintenance should be done regularly to ensure efficiency of the business.
Power backup should be installed to prevent the unnecessary inconvenience

4.2.3 PRODUCTION OVERHEAD COST PER MONTH

ITEM AMOUNT (SHS)
Electricity 1,200
Water bill 25,000
Insurance 200
Provision for advertisement 1500
Telephone 700
Postage 500
Stationery 2000
Provision for depreciation 1500
Provision for debts 800
Provision for maintenance repair 3500
Transport cost 1000
Committee meeting 1000
Municipal charges 600
Total 39500

40
4.2.4 SUMMARY OF TOTAL MONTHLY PRODUCTION COST
ITEM AMOUNT

Labor cost 79,175

Raw material cost 68, 240

Production overhead cost 39,500

Grand totals 186, 915

4.3 PRODUCTION PROCESS

The processed business will be involved in production of finished goods and distribution.

Steps involved
 Customers’ orders of goods from stock and payments on cash or credit.
 Customers who buy in large quantity such as factory, discount will be offered to
encourage buying.
 The business will source the information concerning the suppliers through quotation.
Ordering
The materials required in the business will be ordered through purchase order. This will state the
right specifications of materials required.
Transportation
The suppliers will liase with the supervisor about the impending order to be delivered this will
help the inventory supervisor to schedule the transport well.

Unloading of goods
Good received will be unloaded from the firm is inspected. This is done comparing the
specification of materials in the purchase order against the physical measurement of the
materials.

Price determination

41
The selling price of animal feeds will be based on buying price plus the transportation cost plus
the government tax also the required profits.

Selling of goods
Goods will be readily available for sale at the selling counter or customer’s disposal.

4.4 REGULATION AFFECTING OPERATION

Ernest interiors will have rules and regulations governing its staff. Therefore it will be the duty
of every employee to observe these rules and regulations.

Health regulations
The proposed business will strive to abide by public health Act (cap 226) therefore the firm will
strive to maintain high standards of hygiene by keeping the environment and litters will be
dumped in a recommended place.
Labor laws
The firm will ensure that all employees are treated fairly; this is done by observing
environmental Act.
The law states rules and conditions at recruiting staff
Wages and conditions of employment. The employees’ wages and salaries will be governed by
this Act; also term of working conditions will be governed by the Act.
Environment regulations
The firm will ensure its environment is well cleared. This will be done by ensuring that bins are
placed every place needed. Also the firm will recycle water product like firm chemicals used for
making fertilizers etc.
Safety regulations
All employees in the firm are expected to observe safety rules and regulations in their disposal.
Also the firm will establish a weekly safety talk where workers will spend 30 minutes every
Friday morning before work. This talk will help employees pin point possible accidents and the
immediate first aid boxes full with the required items for first exercise all over the business
premises.

42
CHAPTER FIVE

5.0 FINANCIAL PLAN

This chapter deals with financial analysis of the business. It shows what should be invested
financial operation on what is expected from the business.
The key financial indicators focus on cash flow.  There is virtually no inventory but late
payments for completed jobs will be a concern.  Timely billing and collection will be critical. 
All expenses are tracked on a monthly basis, recorded in the accounting software, and will be
compared to our business plan budget.

Important Assumptions
The following captured critical assumptions will determine the potential for future success.

 A healthy economy that supports a moderate level of growth in the market.

 The ability to support a gross margin percentage in excess of 65%.
 Keeping operating costs low, particularly in the areas of product purchases ongoing monthly
expenses.
 Receiving an initial payment for each project of 50% of estimated time and product purchases
and collecting the balance of these revenues within 45 days of completing each project.

5.1 PRE-OPERATIONAL COSTS

ITEM AMOUNT (KSH.)
Trading license and legal fees 1,800
Advertisement cost 5,000
Electricity cost 5,000
Water installation 5,000
Insurance 500
Bank account opening fee 500
Loan processing fee 2,000
Telephone and Addresses 5,000
TOTAL 33,800

43
5.2 ERNEST INTERIORS WORKING CAPITAL
Working capital= current assets –current liabilities
ITEM KSH
Stock of raw material 29,500
Debtors 100,000
Cash in hand 860,850
Cash at bank 505,330
Working capital 1,495,680

44
ERNEST INTERIORS
6.2.1 PROJECTED CASH FLOW STATEMENT FOR YEAR ENDING 2022
MONTH JAN FEB MARCH APR MAY JUNE JULY AUG SEP OCT NOV DEC
Amount (shs)
CASH IN FLOW A
Opening bal b/f - 260800 302350 340700 404000 496200 638200 730300 822550 845850 868150 865350
Cash sales 200000 150000 100000 100000 150000 200000 150000 200000 100000 80000 50000 20000
Debtors 5000 5000 5000 5000 5000 5000 50000 5000 5000 5000 5000 5000
Loan 120000 - - - - - - - - - - -
Owners’ equity 100000 - - - - - - - - - - -
Total cash inflow 425000 415800 402850 445700 559000 701200 793200 935300 927550 930850 923150 890350
CASH OUTFLOW B
Cash purchases 150000 100000 50000 30000 50000 50000 50000 100000 7000 50000 45000 15000
Creditors 500 500 500 500 500 500 500 500 500 500 500 500
Advertisement 1000 500 500 - 1000 1200 1200 1000 - 1000 500 1000
Trading license 500 - - - - - - - - - - -
Miscellaneous 500 400 200 200 250 200 100 150 100 100 200 200
Drawings 1000 1500 500 500 500 500 500 500 500 500 1000 1000
Interest on loan 200 200 200 200 200 200 200 200 200 200 200 200

Transport 500 500 500 500 500 500 550 550 550 600 600 600
Salaries & wages 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500
Electricity bill 1000 800 700 700 750 750 750 700 750 750 800 1500
Water bill 1500 1550 1550 1600 1600 1650 1650 1650 1600 1550 1500 2000
Total cash flow 164200 113450 62150 41700 62800 63000 62900 112750 81700 62700 57800 29500
Net cash c/d 260800 302350 346700 404000 496200 63820 730300 8225550 845850 868150 865350 719300
Accumulative cash 260800 563150 909850 1313850 1810050 2448250 3178550 4001100 4846950 5715100 6580450 7299750

45
5.2.2ERNEST INTERIORS

INCOME STATEMENT FOR THE YEAR ENDED 31 ST DECEMBER 2022

SHS. SHS.

PARTICULARS

Sales 1,500,000

Less : Cost of sales

Purchases 900,000

Less: Closing stock 860,850 39,150

Gross profit 1,460,850

Less: Operational expenses

Salaries and wages 90,000

Water bills 19,400

Electricity bills 9,950

Transport 6,450

Transport 2,400

Miscellaneous 2,600

Advertisement 8,900 139,700

Net profit before tax 1,321,150

Less: Provision for tax 10%

10% 1,321,150 (132,115)

Net profit after tax 1,189,035

46
5.5 PRO –FORMA BALANCE SHEET
ERNEST INTERIORS
Pro-forma opening balance sheet as at 31st December 2022

SHS SHS

FIXED ASSETS Capital 500,000

Computer 200,000 Owners’ equity 100,000

Furniture 200,000 600,000

Equipment 104,320 Add: Net profit 1,189,035

Total fixed assets 504,320 1,789,535

CURRENT ASSETS Less: Drawings 8,500

Stock 29,500 1,780,535

Debtors 100,000 LONG TERM LIABILITY

Cash at hand 860,850 Bank loan 120,000

Cash at bank 505,330 SHORT TERM LIABILITY

Creditors 99,465

2,000,000 2,000,000

47
5.6 BREAK EVEN LEVEL
ERNEST INTERIORS FOR THE YEAR ENDING 31ST DECEMBER 2022

FIXED COST EXPENSES SHS.

Trading license 500

Interest on loan 2,400

Salaries & wages 90,000

Total fixed assets 92,900

VARIABLE COST

Advertisement 8,900

Miscellaneous 2,600

Transport 6,450

Electricity bill 9,950

Water bill 19,400

47,300

Break Even Point = Fixed x 100% profit margin = Gross profit

Contribution sales ration sales

Contribution = Sales – variable cost (shs.1,460,850/sh.

Shs. 1,500,000-sh47,300 = sh.1,452,700 = 97.39%
= 1,452,700 x 100%
1,500,000
= 96.85%
BEP = 95,921.53 UNITS

48
5.7 PROFITABILITY RATIOS
ERNEST INTERIORS FOR THE YEAR ENDING 2022
Return on sales = Gross profit x 100
Sales
= 1,460,850 x 100%
1,500,000
= 97.39

Return on equity = Net profit after tax x 100%

Owners’ equity

Owner equity = (Net profit + opening capital ) – Drawing

= (1,189,035+500,000) – 85000
= 1,680,535 units

ROE = 1,189,035 x 100%

1,680,535
= 70.75

Return on investment = Net profit after tax x 100%

Total investment

Total investment = current assets + fixed assets

= 504,320 + 505,330
= 200,000

ROI = 1,189,035 x 100% = 59.45

200,000

49
5.8 DESIRED FINANCING
ERNEST INTERIORS
ITEM SH.

Pre-operational cost 33,800

Working capital 1,495,680

Fixed assets 504,320

TOTAL 2,033,800

5.9 PROPOSED CAPITALIZATION

ITEM AMOUNT

Owners contribution 300,000

Total borrowed( friend+ relative) 200,000

Loans from bank(s) 200,000

TOTAL INVESTMENT 700,000

50