BUSINESS PLAN.

BUSINESS NAME: TOSHA FILLING STATION.

PRESENTED BY: KIPKIRUI TONUI.

INDEX NUMBER: 5401010240

COURSE: CERTIFICATE IN AUTOMOTIVE

ENGINEERING.

PRESENTED TO: THE KENYA NATIONAL

EXAMINATIONS COUNCIL.

INSTITUTION: KAIBOI TECHNICAL TRAINING

INSTITUTE.

SUPERVISOR: Mr SINJAA

DATE SUBMITTED: NOVEMBER 2020

DECLARATION
I hereby declare that this is my original work obtained through research and technical
knowledge from entrepreneurial skills and submitted to Kenya National Examination council
as a requirement in fulfilment for the award of certificate in automotive engineering.

NAME: KIPKIRUI TONUI.

SIGNATURE: .............................................

DATE: ......................................................

This business plan has been submitted to Kenya National Examination Council with my approval.

SUPERVISOR:

SIGN:...................................

DATE: ......................................................
DEDICATION

I wish to dedicate this business plan to my parents, brothers and sisters for their support during my
schooling. Also and all my classmates for the far we have come together.
ACKNOWLEDGEMENT
I sincerely thank my heavenly father for gift of life and good health as undertake my course. I also
acknowledge my fellow classmates, friends, my parents and entire family for Financial Support.

My sincere gratitude goes to my lectures for rendering valuable assistance and guidance in making
compilation of these activities as success.

God Bless All.

Table of Contents
DECLARATION....................................................................................................................................i
ACKNOWLEDGEMENT.....................................................................................................................ii
DEDICATION.....................................................................................................................................iii
Executive summary..............................................................................................................................iv
BUSINESS DESCRIPTION................................................................................................................iv
MARKETING PLAN............................................................................................................................v
ORGANIZATION PLAN......................................................................................................................v
OPERATION PLAN.............................................................................................................................v
FINANCIAL PLAN..............................................................................................................................1
CHAPTER ONE....................................................................................................................................1
1.0 BUSINESS DESCRIPTION............................................................................................................2
1.0.1 OWNERS BACKGROUND....................................................................................................2
1.0.2 THE BUSINESS.......................................................................................................................2
1.0.3 LOCATION OF THE BUSINESS............................................................................................2
1.0.4 LEGAL FORMS OF BUSINESS.............................................................................................2
1.0.4 PURPOSE OF THE BUSINESS..............................................................................................2
1.0.5 AMOUNT TO BE INVESTED.................................................................................................3
1.0.6 THE INDUSTRY SECTOR......................................................................................................3
1.0.7 ENTRY PLAN..........................................................................................................................4
1.0.8 JUSTIFICATION OPPORTUNITIES.......................................................................................4
1.0.9 GOALS OF THE BUSINESS...................................................................................................4
CHAPTER TWO...................................................................................................................................5
2.0 MARKETING PLAN......................................................................................................................5
2.0.1 POTENTIAL CUSTOMERS....................................................................................................5
2.0.2 CLASSIFICATION OF MAIN MARKET...............................................................................5
2.0.3 COMMERCIAL CUSTOMERS...............................................................................................5
2.0.4 MARKET RANGE...................................................................................................................5
2.0.5 TOTAL MARKET POPULATION...........................................................................................5
2.0.6 PLAN TO ATTRACT CUSTOMERS.......................................................................................5
2.0.7 EXPECTED SALES.................................................................................................................5
2.0.8 DISTRIBUTION STRATEGY.................................................................................................5
2.0.9 MEANS OF TRANSPORT......................................................................................................6
2.0.10 COMPETITION.....................................................................................................................6
2.0.11 MARKET SHARE..................................................................................................................6
2.0.12 ADVERTISEMENT...............................................................................................................6
 2.0.13 PROMOTION ACTIVITIES..................................................................................................6
2.0.14 MARKET FEATURES...........................................................................................................7
CHAPTER THREE...............................................................................................................................8
3.0 ORGANIZATION STRUCTURE...............................................................................................8
3.1 DUTIES AND RESPONSIBILITIES..........................................................................................9
3.2 RENUMERATION AND INCENTIVE PACKAGE.....................................................................10
3.3 RECRUITMENT AND REPLACEMENT....................................................................................10
3.4 PROMOTION...............................................................................................................................11
3.5 SUPPORT SERVICES...................................................................................................................11
3.6 LICENCE AND PERMIT.............................................................................................................12
3.7 PERMIT........................................................................................................................................12
3.8 LEGAL..........................................................................................................................................13
3.9 POSTAL........................................................................................................................................14
3.10 SECURITY..................................................................................................................................14
CHAPTER FOUR...............................................................................................................................15
4.0 OPERATION PLAN......................................................................................................................15
4.01 SOURCES...............................................................................................................................15
4.0.2 PLANS FOR REPAIRS..........................................................................................................16
4.0.3 STOCK TAKING PROCESS.................................................................................................16
4.0.4 PRODUCTION COST...........................................................................................................17
4.0.5 SECURITY.............................................................................................................................17
CHAPTER FIVE.................................................................................................................................18
5.0 FINANCIAL PLAN......................................................................................................................18
5.1 PRE-OPERATIONAL COST........................................................................................................18
5.2 WORKING CAPITAL...................................................................................................................18
5.3 PROJECTED CASHFLOW STATEMENT FOR 1ST THREE YEARS.........................................18
5.4 PROFOMA BALANCE SHEET...................................................................................................19
5.5 BREAK EVEN POINT.................................................................................................................19
5.6 PROFITABILITY RATIOS...........................................................................................................19
5.7 DESIRED FINANCING................................................................................................................20
5.8 PROPOSED CAPITALIZATION..................................................................................................20
EXECUTIVE SUMMARY

BUSINESS DESCRIPTION
The proposed business name is TOSHA FILLING STATION to be situated at Kaiboi centre Nandi
County.

The business projected plan will expand the project to a big business enterprise and create job
opportunities.

MARKETING PLAN
When marketing the business products, various tactics will be employed to get the goods to the
customers.

This includes the advertisement; sales promote on and public relation. The prices will be affordable to
all the management which ensure minimal distribution expenses.

ORGANIZATION PLAN
Organization plan entails all the activities that ensure efficient approach to work. This includes clear
policies on the working duties and responsibilities, qualification, recruitment, training, promotion.

Government policy and other support services. Workers would be paid a total of Ksh9, 000 per month
for salaries.

OPERATION PLAN
Business needs 500,000 to undertake its operation. It includes the production materials
and facilities which enable the business to run smoothly. Production strategy depends on
the quality of production and demand of the customers. This is an important aspect in the
formation of the entire plan of the business

FINANCIAL PLAN
Financial structure of the proposed business is clearly outlined in this chapter. It is that
financial plan that shows how available resources should be used to manage the business.
CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.0.1 OWNERS BACKGROUND
The business is owned by KIPKIRUI TONUI. The owner resides in kaiboi village, kabisaga Sub
location, kabisaga Location, Nandi County.

He is currently in Kaiboi Technical Training Institute for certificate in automotive engineering.

1.0.2 THE BUSINESS

The name of the business is TOSHA FILLING STATION in-cooperated under the business act of
Kenya

TOSHA FILLING STATION is aiming primary at the local population.

The address will be:

TOSHA FILLING STATION

P.O.BOX 733,

KAIBOI.

1.0.3 LOCATION OF THE BUSINESS

The business is located at Kaiboi market along the Kaiboi Mosoriot road.

1.0.4 LEGAL FORMS OF BUSINESS

The owner will obtain the licence to undertake the business from Nandi county council which deals
with licensing of legal business in the region. This will enable the owner to undertake his business
smoothly without any disturbance.

The owner will also get insurance to ensure her products against risks from Jubilee insurance
company.

1.0.4 PURPOSE OF THE BUSINESS

The purpose of the business is to provide;

i. Enough and quality fuels

ii. Employment to some of the residents lacking jobs
iii. Economy boost
1.0.5 AMOUNT TO BE INVESTED
The amount to be invested is 2,000,000 for the business to run smoothly,

Owners Ksh350, 000

Relative friend contribution Ksh200, 000

Bank loan Ksh400, 000

Other requirement is transportation of products from the supplier’s premises.

1.0.6 THE INDUSTRY SECTOR

The business will be dealing in fuel and fuel products.

1.0.7 ENTRY PLAN

The proposed business will plan to set strategies to take advantage of the weakness point of Jabez
fuels so as to establish it full and win many customers to the business.

ADVERTISEMENT

The product is advertised through;

i. Media
ii. Bill Board
iii. Printing posters

1.0.8 JUSTIFICATION OPPORTUNITIES

The owner will wish to operate the business between5.00Am to 11.00 Pm each day, this will be
advantage to the business because other competitors do not work under time management and make
sure operators work friendly to get the job and more profit.

1.0.9 GOALS OF THE BUSINESS

Employment

The business will provide employment hence raising the economy and the living standards.

Exploitation of resources

This is by use of resources from the enterprise and also the exploitation of skilled personnel making
use of skilled labour.

Generating income

The business will generate capital to the owner due to the supply of the product. The high population
and present market in the country will contribute a lot since the people demanding for construction
equipment will be high; this was carried out through research.
CHAPTER TWO

2.0 MARKETING PLAN

2.0.1 POTENTIAL CUSTOMERS
The potential customers for this business will be coming from different places. Some will be those
who stay around the area and those from far places.

2.0.2.0 CLASSIFICATION OF MAIN MARKET

The owner of the business will require frequent customers to his business for having his enterprise
running and operating smoothly.

2.0.2.1 COMMERCIAL CUSTOMERS

The owner will reduce the prices accordingly to commercial customer who buys the product for
reselling it. This will enable them to gain a profit.

2.0.3 MARKET RANGE

The business will serve the area of radius 50KM from the enterprise.

2.0.4 TOTAL MARKET POPULATION

The area surrounding is occupied by more than 27,000 people but who will be targeted to buy the
product from the enterprise are 20,000 customers.

2.0.5 PLAN TO ATTRACT CUSTOMERS

Since the enterprise is located where there are many competitors, the owner will make sure that the
services they offer is quick and cheap compared to others not only this, but also supply the product to
the market at the required time as possible. The business will advertise to the customers through
posters all over the market range and use of bill boards.

2.0.6 EXPECTED SALES

Through the data analysis made by the owner she found that market demand of the product she
offered is high then the business will make efforts to supply or serve all her customers well, these was
possible through the analysis made.

2.0.7 DISTRIBUTION STRATEGY

There will be constant supply of the product which will have to be supplied to their enterprise at the
required time.

2.0.8 MEANS OF TRANSPORT

The product will be transported and distributed to the commercial customers. By use of enterprise
pick up. This will enable customers to behave in such ways to attract others.

Transport cost per month

 Cost per week(Ksh) Monthly Total
Fuelling one Vehicle 2000 Ksh9,000
Maintenance Cost 2500 Ksh10,000
Driver cost 4500 Ksh4500
Distributors 5000 Ksh5000
TOTAL Ksh22,000

2.0.9 MARKET SHARE

The owner shall concentrate on the operation within town area and institution. This mean that the
target share of 60% from the market research conducted recently by the owner indicating that the
demand outweighs supply implying the business stands a great chance of success.

2.0.11 ADVERTISEMENT
Several methods of advertisement would be used to advertise the product and giving exclusive action
of the product.

These methods include;

(i) Posters supplied to all market range

(ii) Signboards showing location and addresses
(iii) Discounts will be given to customers who buy the products in bulky also free transport is
offered to them

2.0.12 PROMOTION ACTIVITIES

The enterprise will sponsor star Youth Club who will be given four pairs of uniforms per player baring
the name of the enterprise.

2.0.13 MARKET FEATURES

Since the enterprise is located along the tarmac road. The population is growing and the business

is largely carrying large number of market who is aided the product.

 CHAPTER THREE
3.0 ORGANIZATION STRUCTURE

MANAGER

SUPERVISOR

ACCOUNTANT PURCHASE DRIVER

SALESMAN DISTRIBUTOR STORE KEEPER

CLEANER WATCHMAN
3.1 DUTIES AND RESPONSIBILITIES
MANAGER

Requirements

1. Have passed in Advanced Business administration

2. Have field experience in business administration with at least 2 years experience
3. Have good knowledge in record keeping and human resource and management

Duties

1. Recruitment and variation of human resource

2. Return on capital employment.
3. Manage the business
4. Authorise purchase of assets
5. Give order to employees

SUPERVISOR

Requirements

1. Should be qualified in business management and have at least 2 years experience in working
2. Should be able to keep records
3. Should be computer literate

Duties

1. Assist in absence of the manager

2. Should be able to keep the records and produce them.
3. He/she links the manager and all the employees

ACCOUNTANT

Requirements

(a) Should be a holder of C.P.A (II) or diploma in business management.

(b) Should have an experience of a year in the same field.
(c) Should be aged between 20-30 years.
(d) Should be computer literate.
Duties

(a) Maintaining accounting records of the business.

(b) To prepare budget and all the activities demanding the use of money within the enterprise.
(c) To receive cash.
(d) To assist the manager when he or she is not a round.
SALES MAN

Requirements

(a) Should have experience one year.

(b) The person should be computer literate
(c) Should have pass in certificate in sales and marketing

Duties

(a) To market the products.

(b) To adopt different tips of sale promotion and handle advertisement.
(c) To find out and take appropriate measures about the opinions of the customers.

DRIVER

Requirements

1. Should have driving licence

2. Must be at least 30 years
3. Should have certificate of good conduct
4. Should have at least 5 years experience

Duties

(i) Supplying commodities with sales men

(ii) Making sure that vehicle is in good condition
(iii) Distribute as per market range

WATCHMAN

Requirements

(a) He should a holder of K.C.S.E certificate holder

(b) Should have good communication skills.
(c) He should of age 25 years and above
Duties

(a) They will enhance security in the business premises.

(b) They will be required to communicate any security problems arising within the business
PURCHASING OFFICER

Requirements

a) Should have diploma in purchasing and supplies

b) Should have at least 1 year experience
c) Should have skills and knowledge in sourcing information

Duties

i) Should work close and in liaison with supervisor and salesman

ii) Purchase the right commodity at the right time
iii) Purchase the right quality and quantity
iv) Issue purchasing invoice
v) Control price policies of good purchase

DISTRIBUTOR

Requirements

i) Should have “O” level certificate

ii) Must be able to communicate well in English and Kiswahili

Duties

i) To distribute the products to the actual customers to their destination

ii) Work together with the driver.

STORE KEEPER

Requirements

i) Must have certificate on store keeping

ii) Must have experience of 11/2 years working experience

Duties

(i) Keeps stocks

(ii) Label all store in store racks
(iii) Ensure or check the maximum and ,minimum level
(iv) Work in close liaison with purchasing officer
(v) Assist in stock taking.
CLEANERS

Requirements

(a) She should be at least a form four leaver

(b) She must have worked in the same field of work for a year
(c) Should be of an average of 21 years and above
Duties

Their work will entail cleanliness generally around the business premises and dusting of all
computer labs everyday .They are also expected to ensure that the premise are well designed with
posters and latter disposal in safe dustbin to avoid pollution

3.2 RENUMERATION AND INCENTIVE PACKAGE

Since human resource is an asset effort must be made to assist monitory value to employees

Personnel House Medical Salary per Year Total

allowance Allowance

Manager 1200 500 18300 20,000

Supervisor 800 450 14750 16,000

Salespersons 250 7750 8,000

Storekeeper 350 7650 8,000

Accountant 600 500 11900 13,000

Watchman 250 5750 6,000

Driver 250 7750 8,000

Purchaser 500 300 11200 12,000

Distributor 200 5800 600

Cleaner 200 4800 5,000

TOTAL 3200 3250 80675 996000

3.3 RECRUITMENT AND REPLACEMENT

The business intends to recruits employees based on their qualification to a particular job being
advertised. Also their conduct should be good .The business will use the following procedure to
recruit its employees;
Nyabuto construction materials supply shall adapt the standard cost approach evaluation of human
resource

3.4 PROMOTION
Promotion of worker will be based on various merits which the business intends to put into
consideration, this will also include their benefits and being promoted.

3.5 SUPPORT SERVICES

Support services like banking, insurance will enhance the business performance hence
hardware should adapt these services.

3.6 LICENCE
The proposed business will operate under the Kenya`s law and regulation that requires a
business to have a license. The registration fee paid was 15 000 shillings per year. It intends
to acquire its working license from the local Government.

The business will obtain its trading license from the ministry of commerce and
industrialization

3.8 LEGAL
The business also intends to come up with rules and regulations governing the business. This
will be imposed in form of written and placed in major positions in the premises for easy
enforcement.
The business will be registered under legal forms of the government; it will be under the
security of life insurance of Jubilee insurance company to protect against the loss of property.

3.10 SECURITY
The business managers will deploy security personnel to monitor the movement of people in
and out of the enterprise.

CHAPTER FOUR

4.0 OPERATION PLAN

The main area focus include the floor plan and placement of equipment
 The hardware will be in the same premises but the store will be placed in a strategic position
where there will be enough gang ways for loading and offloading the products

LAYOUT
ENTRY

CUSTOMER
CARE
FILLING POINT 2
TOSHA
SERVICE BAY

STORE

FILLING POINT1
ENTRY

4.01 SOURCES
The land belongs to the town council but the suppliers of the materials to the enterprise will be given
to Ndovu fuel suppliers. Thus supply of the material should be done after the final payment of goods
for commercial operation.

4.0.2 PLANS FOR REPAIRS

The repairs of computers will be given the toplink computers while the electrical repairs and
installation will be given tokos electrical engineering works.

4.0.3 STOCK TAKING PROCESS

STOREKEEPER

PURCHASER

ACCOUNTANT
 MANAGER

4.0.4 PRODUCTION COST

ITEM AMOUN
T

Materials 400000

Transportation 35200

Labour 63400

TOTAL COST 126600

MONTHLY PRODUCTION OVERHEAD

EXPENSE COST (Ksh)

Printing and photocopying 22200
Daily Cleaning 2000
Water and electricity Bill 4500
Postage and Telephone 1000
Stationery 500
TOTAL 39700

4.0.5 SECURITY
i) Security fences

ii) Hygiene Standards

iii) Safety regulation

4.0.7 PLANS OF REPAIRS

Tokos Electrical and engineering works shall be given a tender for electrical fittings
CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 PRE-OPERATIONAL COST

For any business to realize the anticipants profit it has to incur. Therefore the enterprise shall purchase
the material as per the demands

ITEM AMOUNT (KSH)

Market Research 10,000
Renovation 21,000
Transport 15,800
Installation 60,000
Printing and Photocopies 4,000
Telephone 5000
5.2 WORKING CAPITAL
Item Year 1 Year 2 Year 3

Stock of 400000 100000 75000

Raw

Personal 300000 75000 150000

savings

Family 300000 150000 150000

contributions

Stock of raw 112000 50000 40000

materials

Creditors 40000 30000 30000

Total 1,152,000 405,000 445,000

The cost of raw material shall be assured to be constant throughout the entire 3 years of operation.
The enterprise had no liabilities and debtors at the enterprise for the first month of operation.

5.3 PROJECTED CASHFLOW STATEMENT FOR 1ST THREE YEARS

ITEM 2021 2022 2023
Sales 1019000 1019000 1019000
Cost of goods sold 200000 240000 230000
GROSS PROFIT 819000 779000 789000
EXPENSES
Wages/salaries 528000 560000 572500
Rent 24000 24000 26000
Water 7650 7560 8000
Telephone 3400 3800 4000
Electricity 6400 6400 6900
Advertising 5200 7200 7500
Stationery 2900 3900 4200
Postage 2800 3800 3800
Transport 82300 98500 100500
Repairs 5500 4900 4500
Interest 12000 15000 13000
Cleaning 4800 28000 30500
Depreciation 20500 14000 18500
Professional services 29800 42500 45000
TOTAL EXPENSES 735250 819650 844900
Profit before tax 254750 300350 305100
Tax provision of 10% 25475 30035 30510
NET PROFIT AFTER 229275 270315 274590
TAX

5.4 PROFOMA BALANCE SHEET

year 1 year 2 year 3

Item

ASSETS

CURRENT ASSETS

Cash at hand 300000 75000 150000

Cash at bank 400000 100000 75000

Bank loan 252000 195000 202100

Debtors 112000 50000 40000

Raw materials 1064000 420000 467100

Total current assets

FIXED ASSETS 55000 30000 15000

Machinery and equipment 30000 15000 5000

Furniture 200000 150000 100000

Land 285000 195000 120000

Total fixed assets 1349000 615000 587100

TOTAL ASSETS

Liability

Creditors 40000 30000 30000

 Bank overdraft 20000 10000 25000

TOTAL CURRENT LIABILITIES 60000 40000 55000

LONG TERM LIABILITIES

Bank loan 400000 100000 75000

Capital employee 300000 150000 150000

TOTAL LONG TERM 700000 250000 900000

LIABILITIES

5.5 BREAK EVEN POINT

Telephone 16800

Electricity 12000

Advertising 206500

Water 12200

Loan repayment 60000

Miscellaneous 172000

TOTAL 434500

Contribution margin = 1.951

Fixed costs Amount

Rent 120000

Wages 720000

Insurance 1500

Banking 31200

Registration 5000

TOTAL 877700

= 449,871.86
5.6 PROFITABILITY RATIOS

Variables Amount

Telephone 16800

Electricity 11000

Advertising 100000

Water 11900

Loan interest 50000

Miscellaneous 127000

TOTAL 316700

= 1,261,160.71

5.7 DESIRED FINANCING

Fixed costs Amount

Rent 120000

Wages 744000

Insurance 1500

Banking 33500

Registration 8000

TOTAL 904000

Breakeven point
 = 1,261,160.71

5.8 PROPOSED CAPITALIZATION

Variables Amount

Telephone 18000

Electricity 14100

Advertising 98000

Water 5750

Loan interest 50000

Miscellaneous 116250

TOTAL 302100

Contribution margin = 0.4391%

Fixed costs Amount

Rent 132000

Wages 768000

Insurance 1500

Banking 64500

Registration 5000

TOTAL 971000

Contribution margin = 2,211,341.38