NAME OF INSTITUTION: THIKA TECHNICAL TRAINING INSTITUTION.

BUSINESS NAME: BELLEZA BEADS.

BUSINESS LOGO:

BUSINESS ADDRESS: BELLEZA BEADS

P.O BOX 2379-
NAKURU.
Website: www.bellezabeads.com
E-mail: bellezabeads@gmail.com.
 Phone no: 0743140286.
NAME OF THE PRESENTER: MUMBI ROSE BRENDA GATHONI.
INDEX NO:2070012432.
SUPERVISOR NAME: SALOME
PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL IN
PARTIAL FULLFILMENT OF THE AWARD OF DIPLOMA
IN INFORMATION COMMUNICATION TECHNOLOGY.
EXAM SERIES: JULY/2022.
EXECUTIVE SUMMARY
NAME OF THE BUSINESS.
The name of the proposed business will Belleza Beads a sole proprietorship form of business. The business will be located at Maasai
Market in Nakuru town CBD along Kenyatta Avenue and the following will be its address;
BELLEZA BEADS
P.O BOX 2379-
NAKURU.
Website: www.bellezabeads.com
E-mail: bellezabeads@gmail.com.
Phone no: 0743140286.
The business will be engaged in design and production of beads of two kinds both beaded and threaded beads. Job creation will be one
of the greatest impacts brought to the community. The business will be using grinder machine, chamfering machine, mirrorless
camera, digital single-lens reflex camera and laptops. Advertisements and pocket friendly prices to lure customers and gainful
acceptance in the market.
MARKET PLAN.
The potential customers of the Belleza Beads will be Tourists in our country and from out of the country. Designers of fashions and
hairstylist will be included any other person regardless of socioeconomic status. The business intends to have 50% substantial share of
the market within the first two years. The business intends to sell the products online and offline to the customers. The business will
be able to provide means of transport to any customer who will not be able to avail themselves in the store at a fair price.
ORGANIZATIONAL AND MANAGEMENT PLAN.
Belleza Beads will have an organization management that will help in managing the business. Each individual will have qualifications
and responsibilities. The manager will the owner and will give directions in the business. The deputy manager will be the second to
the manager. Financer will manage all the accounts in the firm. Overall Beader will be in charge of bead making and two Beaders and
Influencer Marketer will be in charge of selling beads online and two marketers. Most of the employ will be from the region.
 Training will be given to the them and promotion according to the job well done. Transport and snacks will also be provided to the
employees. The business will liaise will the banks for employees to be able to access their salaries.
PRODUCTION DESIGN AND DEVELOPMENT.
The beads will be made from the finest quality material and the beads will be made with the most modern technology. Each employee
will receive their salary every end month total labor cost will be ksh. 106,000. The total cost of expenditures will be good enough to
ensure all operations move smoothly and profitable. The business shall have a chronological order of making both beaded or threaded
beads. The business will register under Ministry of Sport Cultural and Heritage as service-oriented business and be acknowledged by
cultural and heritage regulatory.
FINANCIAL PLAN.
The business will start will an initial capital of kshs. 200,000 which will be used to start and operate the business. The owner will take
loan from banks and family. The business will keep records of daily finances of the business. The business will keep clear financial
records in form of monthly and yearly pro-forma cash flow statements and yearly records of balance sheet statements.
Chapter 1.
1.0 Business Description.
1.1 Business Name.
The name of the business will be Belleza Beads, it will be a bead making business. Belleza is a Spanish name meaning beauty,
loveliness, greatness or grandeur. When the two come together, in this context, they simply say beauty beads. Beads adorn the
appearance of whoever is wearing them. Belleza Beads, true to its name, will be all about making customized beads that are
aesthetically pleasing to the client.
The owner of the business intends for it to start operations come 2025. This is due to the adverse effects of the pandemic, which have
seen the global economy grind to a halt. Raw materials for manufacture and production of beads have become scarce in the country
due to disruption of supply chain from overseas. The owner, in the meantime, also intends to finish their studies before the said year
when the business sets its plans into motion.
The ownership model of the business will be a sole proprietorship. All operations will be overseen by the owner. Any employees the
business brings on board will report directly to the owner.
The business will mainly entail design, production and selling of beads. This will be on an order basis. Clients place their orders, they
then consult with bead makers who will detail their desire in the final looks of the finished product, which is then customized to their
taste.
The target market will include both the young and the older demographic, those interested in fashion and design, hairstylists,
accessory makers and special occasion goers e.g. parties, weddings, funerals etc. Possible venues will also include craft shows,
consignment, retail storefront and the Internet where they can reach both local and foreign tourists. Belleza beads intends to produce
timeless pieces of jewelry people will want to make part of their wardrobe.

1.2 Business Location and Address.

The business will be located at Maasai Market in Nakuru town CBD, along Kenyatta Avenue opposite Huduma Centre stall 5 on plot
3 L.R No.2304/A/MR. This location is most preferred for the business because it is widely known for trade of craft items such as
beads, traditional garments and various ornaments. The location is easily accessible. Supporting infrastructure such as roads, railway
are available. Amenities such as water and electricity are provided for by local government. Communication structures have also been
put up in the vicinity.
The location has also been chosen because many tourists flock to Nakuru every year to see various tourist attractions around the city,
for example, Menengai crater, Lake Nakuru and Game Park, Kariandusi sites among others. Tourists bring a lot of business to the
bead making industry. Nakuru is also in close vicinity to the capital city of Nairobi, hence close to suppliers of raw materials from
both in the country and overseas who have warehouses located there. Below
is a map illustration;

Woolmatt
Maasai Market BATA Infinix Oppo Naivas
supermark
shop shop shop Supermarket
et

Kenyatta Avenue

Huduma Centre Open Ground Uniform Honest Mapples Shikpack

shop bookshop hotel hotel

Below will be the business address;

Belleza Beads,
P.o.Box
Nakuru.
Website: www.bellezabeads.com
E-mail: bellezabeads@gmail.com.
Phone no: 0743140286.

1.3 Forms of Ownership.

The business will operate as a sole proprietorship. The business will be owned and operated by Rose Brenda Gathoni Mumbi as a full-
time venture. The owner is 21 years old, resides in Thika where the owner is presently a student at Thika Technical Training Institute.
The owner has a second home in Nakuru where the owner is in constant commute to and fro.
The owner is an undergraduate for a diploma in ICT, graduated from secondary school and got the certificate in 2018 from Anestar
Precious Secondary School where the owner studied between the years 2015-2018. The owner has also studied ICT packages from
stage one to four at Mwangaza College from 2019 to 2021. The owner also intends to take part in training in special design
techniques.
The owner of the business is hardworking, good time keeper, patient, honest, good team player and organizer. From an early age the
owner was interested in the arts and crafts and would spend most of the free time making art. The owner understands that for one to go
far they must be surrounded by good company and whence, when the business requires certain abilities to complete projects, the
owner will outsource the necessary workforce, also the business owner is good at spotting talent, and where the abilities come short,
the owner is able to recruit the required human resource.

1.4 Type of Business.

The management model of the business will operate as a sole proprietorship. This is whereby the major decisions in the business will
be made by the sole proprietor. All the employees will report to the owner of the business, who will also directly manage and take part
in its daily affairs.
The manager will be Rose Brenda Gathoni Mumbi. She is also the owner of the business. Among the owners’ duties will be designing
the beads, marketing and making sales.
The business is intended to be launched come 2025. This will give room for adequate preparation before the business is officially
opened. Among the priorities are sufficient capital, allow time for the owner to finish school and also the country to bounce back from
effects of the pandemic.
The initial capital for smooth start up and running of the business is estimated to be Ksh 200,000. This quotation has taken into
consideration the following; license, rental expenses, buying stock, buying machines (grinding machine and chamfering machine),
buying computers and cameras (mirrorless camera and digital single lens reflex camera) and lastly wages and salaries.
The owner intends to contribute Ksh 30,000 to the initial capital. This will come directly from her savings. The owner also intends to
raise funds to cater for the remaining amount from financial institutions, friends and family. The owner has received the following
pledges;
1. Equity bank loan -Ksh 50,000
2. KCB Bank loan -Ksh 50,000
3. Marvin Murimi -Ksh 25,000
4. Lucy Chege -Ksh 25,000
5. Hellen Mumbi -Ksh 20,000
The owner will finance 15% of total initial capital. The remaining 85% will be financed by outside sources, as indicated above.
Outside sources will be composed as follows; 35% will be financed by family and friends while the remaining 50% will be financed
by bank loans.
 Sales

Owner
15%
Equity Bank
25%
Equity Bank
KCB Bank
Hellen Ngina Marvin Murimi
10%
Lucy Chege
Hellen Ngina
Owner
Lucy Chege
13%

KCB Bank
25%
Marvin Murimi
13%

The owner intends to repay loans to the bank together with accruing interests by the fourth quarter of the second fiscal year. The banks
agreed to give a grace period of one year before installments start being made. Installments of Ksh 4,200 will be made to each of the
two banks on a monthly basis for 12 months. The remaining money owed to family and friends will be repaid soon after during the
second quarter of the third fiscal year.

1.5 Product/Services
The business will be engaged in design and production of beads. According to Wikipedia, a bead is a small, decorative object that is
formed in a variety of shapes and sizes of a material such as stone, bone, and shell, glass, plastic, wood or pearl and with a small hole
for threading or stringing. This item is used for creating necklaces, bracelets and an assortment of decorative gowns/attires. They can
be found in a multitude of sizes (1mm-1cm). These beads will later take the form of jewelry in bangles, pendants, waist beads, neck
beads and pins.
The beads that will be produced by the business will be of high quality. They will be made from many materials, in line with customer
specifications. The customer, who is expected to visit the business premises for viewing of available options, will be allowed to make
the major decisions on what colors of beads they want, the materials that they would like to make the beads and other nitty gritty
details of art they want to see in the finished product. Samples are available to clients who want to see. The business will produce
beads of various colors, size and shape to cater for demand in the market. Materials used will be mainly metal, glass and wood. They
will be of high quality. The beads will be packaged into gift boxes which will be in the shape of the bead i.e., if the bead is circular the
boxing will be circular and if the bead is square in shape the boxing will be square.
Customers will be able to enjoy products with good performance. They will also enjoy convenience during order and delivery of the
products. In determining the prices of the products, the business will take into consideration many things among them cost of
production, but will still make sure products are affordable to every customer. Customers will enjoy durable products that do not wear
out easily or quickly. The business will also advise the clients on usage of the products. Clients will also enjoy regular servicing of
their products at a small fee. Warranty is not available due to nature of products.
The business will not be engaged in the mass production of the products, instead it will cater to specific individual needs as dictated by
clients. This will allow clients to proudly take part in the process of coming up with a finished bead product that is totally unique to
them, and cannot be easily found in the populace. This will encourage prospective buyers to choose Belleza beads over other
businesses that offer these products since the Belleza brand will cater and deliver their finest wishes on bead design.
In accordance with Intellectual Property laws, the business will apply for patents as need be, to ensure protection of ideas and designs
from being pirated.

1.6 Justification of Opportunity.

Belleza Beads is a craftsmanship-oriented business. Products from Belleza Beads have various use, especially in ornamentation. This
need will never cease. Historians have proven the use of beads to date back from over a thousand years ago. There is plenty of local
demand for beads in the ornamentation of clothes, necklaces and bangles. Hairstylists also decorate their client’s hair with beads. The
population of the Kenya and the world is also growing at a very high rate, hence demand for the products will also increase year by
year. The industry has a lot of potential for growth, which is fueled by increasing demand and limited supply of the products.
Setting up this business will impact the community directly by offering employment opportunities to talented artisans who want to
work with beads. The raw materials required for beads are also locally available in some of the most unusual places such as dumpsites,
hence the business will assist in conserving the environment by removing these materials from the earth. The beads will also promote
indigenous technology and showoff Kenya’s uniqueness to the world. The business will be a tax paying venture that will increase
revenues to the government, and hence impact growth of quality of government services the economy as well.

1.7 Industry.
The business will be in the bead and fashion industry. This industry exists in every country, and is mostly found around many
communities in Africa. It dates way back even before the colonial era. Beaders or bead stringers were much respected people in the
community. To this modern era, beads are found in various uses in the country and are still engraved deeply in culture. New designs
that are emerging are appealing to the new millennium population as well as the older generations. It is therefore justified to say that
beads and beadwork are a timeless fashion piece, and that the industry is not going to crumble any time soon.
There are many firms currently working in the industry. They rank from fortune 500 companies like the Kazuri Bead Factory in
Karen, Nairobi, to the small-scale bead stringers in the most secluded part of Maasai land. This shows that many households depend
on bead making to earn a living. Beads speak volumes about different cultures and communities of Kenya. They are very popular with
both local and foreign tourists and many buy them as souvenirs after visiting different parts on the country. This makes the industry
very profitable. However, business usually booms during the holiday seasons when sales peak. It is during this time that people are
most likely to tour different parts of the country for leisure. During the December holiday, most households take trips to places like
Mombasa and Nakuru, among other tourist attraction spots, to see beautiful sceneries and make merry. It is during such events that
they spend the highest amounts of money on beads and jewelry, which they take back home as souvenirs to keep memories of places
and cultures they visited. Other times of the year people also purchase these items, but at a slightly smaller rate than the holidays.
The industry is very labor intensive since a bead stringer has to use his or her hands to craft the beads and make a finished fashion
piece e.g. necklace. There are also some supporting technology to assist in making the beads such as grinding machine, chamfering
machine and fine grinding ball machine. Modern computers and special cameras will also be utilized in designing and taking photos of
the beads for advertisement. The technology adopted in the business will be modern.
The firm, although labor intensive, will only make use of a small team of employees. These will be composed as follows; manager,
overall bead maker, influencer/marketer, at least five junior bead stringers. As the business grows, it will further employ more diligent
workers, who will be trained to be in line with Belleza Beads vision and ethic.
In the past decade alone, many trends have been witnessed in the industry. The market is expected to grow enormously in the near
future due to the fast expanding online and mobile user customer base in rising markets, increase in e-commerce sales, improving in
logistics services, and ease in payment options.
The industry has also adopted newer machines and techniques to produce samples and finished works. Customers are also growing
smarter, and therefore, more and more brands are focusing on creating unique designs that appeal to their specific tastes and demands.
Lately, the industry has had to transition from its traditional way of doing things and embracing a new form that is attractive to
customers. Many people are into customization of their bead pieces, and wish to wear items that are unique to them. Belleza Beads
intends to embrace this new culture fully. Customization has also fueled the drive in the industry for innovation, as firms compete to
produce pieces that will be most appealing to their customers.
The industry has also witnessed a rise in prices of gems and minerals that are used in the making of the beads. This has come after
these gems, which have been dug from the ground for many years, are slowly diminishing and becoming less accessible. This has seen
the industry turn to the most unlikely of material to make the beads with. Some have even become highly guarded trade secrets for
these companies.
To mention another scenario, even the way of doing things has changed. Some firms work and distribute locally, others have national
distribution systems set up. Some artists will design products for larger companies to manufacture; others will design and make the
pieces themselves.
Likewise with the ascent in the fame of savvy business and relaxed clothing, individuals wish to match their everyday, work, and party
outfits with the proper gems that characterizes their exceptional style, while additionally being agreeable to wear it for expanded
timeframes. Therefore specialists accept that in the approaching year, there will be an appeal for light, day by day wear adornments,
attributable to the common sense, solace, and flexibility that they offer.

1.8 Goals of the Business.

In order for the business to be a success, the owner knows the importance of setting goals that will guide activities of the business
from the start. They have been divided into short term and long-term goals.
The long-term goals of the business are;
The business will consistently favorable working atmosphere. This will ensure that employees not only enjoy their work but
also relate well with management and are at their most productive level. The business will also become a leading firm in the
field of bead work. This will open doors in becoming consultants and a benchmark for other businesses in the industry,
forming new revenue streams.
Roll out customer loyalty programs that help retain them and bring in repeat business. This will also be by setting aside funds
to enable after sale services such as delivery to client’s doorstep across the country. Also, the business will bring on board
newest technology to improve quality of designs and final products. This will help the business gain an edge over competitors
and increase profit margin will be seen.
The short-term goals are;
I. Create a favorable internal business environment.
II. Create a loyal customer base.
III. Increase efficiency in delivery of orders to clients within least time possible whilst maintaining high quality.
IV. Study the market and learn the most popular products.
V. Be profitable.

1.9 Entry and Growth Strategy.

The business once launched, plans to use innovative tactics to penetrate and gain acceptance in the market. At the forefront of ways in
which to do this, is ensuring that originality and uniqueness is promoted. The business will strive to produce beads that are of better
quality than ones existing in the market. The owner is passionate about beads and intends to bring a fresh perspective to bead making
and make sure that the products will be widely accepted in the market.
The business will also ensure that prices are pocket friendly. The management will work on maintaining business ideals that are more
appealing to clients than those offered by competitor firms. Influencers hired by the business will work on promoting the businesses
brand to existing and new customers. The business also intends to run paid promotions on various online platforms and social media to
reach as many people as possible.
The business will also enable its customers to order and pay online. The business will also employ use of posters, business cards, and
free sample beads on different complimentary products like clothes, shoes and hair pieces, among other marketing strategies. There
will also be a website dedicated to Belleza Beads where customers can find all latest information and make enquiries.
Chapter 2.
2.0 Market Plan.
2.1 Customer.
At Belleza Beads, our customers are our partners. The business will not operate for long if the customers stop doing business with
them. Attracting and maintaining customers for repeat purchases will be top priority. One of the motto that all businesses should chant
is “the customer is always right.”
Who are Belleza Beads customers? As earlier indicated, Belleza Beads will target people of various demographics country-wide. No
particular section of the population will be secluded, regardless of socioeconomic status. This includes;
6. All people of all ages.
7. Both genders.
8. All levels of income.
9. All levels of education.
10. All religions.

Thus, the business will interact with customers without bias. Any customer will be able to walk into the premises and place their
orders to the designers and be able to have their items delivered to them. Nonetheless, the business will understand that people are
different and that different people have different tastes. The business intends to study its market and customers and ultimately deduce
their tastes and preferences, so that when a particular individual views templates of designs they can choose what appeals to them
from the multitude of choices.
However, the business will expect major customer base to be composed of designers of clothes in the fashion and design industry,
hairstylists, accessory makers, tourists, the general public (both urban and rural dwellers), and special occasion goers e.g. weddings,
funerals, etc.
The business will anticipate the customers to have very high expectations of the shopping experience and the products they will buy.
Customers will expect the product to be of high performance, this entails that if the product was designed to serve a certain duty for
the customer, it does it exceptionally. The customer will also expect the products to be affordable and easy to maintain, thus
economical to them. Most customers may be turned away if the products are not pocket-friendly both in the short term and in the long
run.
Safety and durability will also be the key concerns of the customer, and Belleza Beads also intends to deliver on this. The products
will also conform to the law thus never bringing future legal and health problems to the customers. This will be done by using
products that have been authorized by the local administration and health community.
Customers will be treated to the convenience of purchasing the goods anytime they want to. The goods will be purchased any time of
the day, week, or month as the business plans to make the products available all through, both online and offline. Belleza Beads
customers can also purchase any quantity of beads as they wish. The business will work hard to not go at any time.
Customers will be treated to a variety of modes of payment. This will include cash, cards, bank, and mobile money transfers.
However, customers will not be able to purchase on credit.

2.2 Market Share.

The bead industry has many firms working in it, but it is not completely saturated. Nonetheless, the owner expects ruthless
competition from other businesses. Since it is a countrywide venture, the business will come across many other market stakeholders.
In Nakuru alone, where the business plans to start its operations before branching to other areas, there already exist seven notable
competitors.
The firms in the bead making industry in and around Nakuru Metropolitan are as follows:
1. Kazuri Beads Factory.
2. Rafiki Art.
3. Beauty and Fashion Pioneers.
4. Touch of Skin.
5. Total Fashion.
6. Go glow.
7. Fine Beads.
8. Belleza beads.
Each of these firms controls a section of the market. The total size of the market is estimated to be in the millions. The population of
Nakuru alone is 2.162 million, as of the 2019 census. Each firm is estimated to have a firm grip on a percentage of this market, the
information is represented in the pie chart below:

Market Share.
Kazuri Beads Factory,0.2

Belleza Beads,0.3

Rafiki Art,0.06

Beauty and Fashion Pi-

oneers,0.08

Fine beads,0.1

Touch of Skin,0.14
Go Glow,0.12

Belleza Beads will be in direct business confrontation with all of these firms and intends to have a substantial share of the market,
preferably 50%, within the first two years of operation.

2.3 Competition.
Every business has competitors. These are majorly other firms that offer the same or similar services within the same market.
According to Wikipedia, Competition is a rivalry where two or more parties strive for a common goal that cannot be shared: where
one's gain is the other's loss. Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Belleza beads intends to go to great lengths to identify those with who the business shall be in confrontation. The business have
identified seven businesses that will be the major competitors. They are:
 1. Kazuri Beads Factory.
2. Rafiki Art.
3. Beauty and Fashion Pioneers.
4. Touch of Skin.
5. Total Fashion.
6. Go glow.
7. Fine Beads.
All these firms produce beads together with other jewelry and fashion items. These firms are majorly based in Nakuru town, having
branches in other parts of the country. This is because Nakuru is an economic hub of tourist activities. It was upgraded to become a
city a few months ago, hence the growth potential is visible. Belleza Beads intends to set up a base in Nakuru even though the
competition is present, this is because, after careful examination, the advantages still outweigh the disadvantages.
The major advantage of the location of Belleza Beads competitors is that since the businesses are almost all based in Nakuru, this
makes the city well known for offering these services. Outsiders flock to Nakuru in search of bead-making services. It is similar to the
Silicon Valley scenario, where a big percentage of big technology companies are located like Facebook, Google, etc. Even though
these companies are next-door neighbors, they are in stiff completion with each other, but from time to time they cooperate and make
mutually beneficial business deals make Silicon Valley widely known for its services in the tech community, and it’s a big boost to the
credibility of startups who tell their customers they are based in Silicon Valley. For Belleza Beads, it will allow the company to keep
track of moves made by competitors and make counter moves.
Needless to say, being in close proximity to competitors has its fair share of disadvantages. There will be a direct comparison of prices
by customers, hence driving prices down. But also, quality will be a priority for every firm, hence customers will not be ultimately
concerned about paying a relatively high price compared to competitors if the products and brand are visibly worth it.
The location of Belleza Beads which will at Maasai Market is advantageous because the place receives a lot of attention for beads,
artifacts, and jewelry hence offering daily customer traffic to the business. Belleza also intends to attract customers by giving them
good prices, discounts, and after-sale services.
The size of the business, competitors will vary. Of the seven that have been listed above three are big businesses, namely Kazuri Bead
Factory, Rafiki Art, and Touch of Skin. Two are medium-sized, namely Beauty and Fashion Pioneers, Total Fashion while the
remaining two are small enterprises namely GoGlow and Fine Beads. Belleza Beads will be a medium-sized enterprise. This is due to
the amount of capital raised and also the proposed plan of the structure of the company. The size of Belleza Beads firm will be
advantageous because it will assist in increasing the volume of output, hence the flow of goods out and cash in. Due to the laws of
economies of scale, a medium-sized company will remain efficient and yet enjoy the benefits of its slightly larger portfolio.
The following table shows how our products compare to those of competitors:
Comparison of Products of Belleza and those of Competitors.
Firms Durabilit Affordabilit Uniqueness Popularit
y y (1-5) y
(1-5) (1-5) (1-5)
1. Kazuri 4 2 1 3
Beads Factory.

2. Rafiki Art. 2 2 3 2

3. Beauty and 3 3 4 4
Fashion
Pioneers.

4. Total 2 1 3 2
Fashion.

5. Go Glow. 2 3 2 3

6. Touch of 1 2 3 2
Skin.

7. Fine Beads. 3 4 4 3

8. Belleza 4 3 4 3
Beads.

Among the business competitive advantages is that the owner, Rose Brenda Gathoni, is very talented, ambitious and has an eye for art
and design. The owner will be very passionate about bead making and intends to put all effort towards making the Belleza brand a
success. The owner has garnered a lot of experience working with beads since a very tender age. Another advantage over competitors
is the business intends to enter the industry with a completely fresh view of things and a spirit of challenging the old norms. This will
enable the company to take the market by storm and attract all the positive attention that will make sales skyrocket.
Overall Weakness and Strength of our Competitors.
Firms. Strength Weakness
1. Kazuri Beads Factory -Very Large -Inefficient in
economies of scale. production and
-Large capital from delivery.
government -Facing copyright 2.4 Method of Promotion and Advertising.
funding. lawsuit.
-Many branches. The goal of advertising and promotion will reach people
most likely to be willing to pay for a company's products or
2. Rafiki Art. -Large capital base -Lack of talented
from wealthy designers. services and entice them to buy. Good advertising and
investors. promotion is a pillar of business success, if not the most
important aspect. Companies spend millions of shillings in
3. Beauty and Fashion -Talented Owner -Facing copyright promotions and advertising every fiscal year. There are
Pioneers. and designer. lawsuit. numerous methods of advertising/promotion and the
-Bankruptcy. marketing team of the business will choose one that will be
4. Total Fashion. -Large capital base -Bad Customer most suitable for the product and business.
service.
5. Go Glow. -Talented designer. -Bad customer At Belleza, owner knows the pivotal role played by
services. successful promotion and advertising, thus the owner will
-Absentee owner. undertake the responsibility of going all out in campaigns
6. Touch of Skin. -Large capital base -Bad employee to drive customers to the business. There is a fundamental
-Location near treatment. yet thin line that marks the difference between promotion
tourist attraction and advertising. Advertising generally refers to controlled,
site. paid messages in the media, while promotion includes paid
7. Fine Beads. -Large capital base. -Poor management. and free marketing activities, such as sales or sponsorship.

-Talented owner and -Small capital

8. Belleza Beads. designer.
- Employee
motivation scheme
Many mediums of advertising and promotion are available in the current age. Just to name a few, below are the leading options we
have chosen, starting with advertising methods:
1. Television. - The company will run commercials for its products on TV to reach the numerous people who watch daily.
2. Radio. – Radio is still a very useful media because it will reach many listeners who will get to be informed about our products.
3. Print, e.g. local and national newspapers. – The company will pay for coverage on the local newspaper and be able to advertise
its products there.
4. Leaflets and flyers. –They will be printed and distributed to customers and potential customers so that the information about
our products can circulate.
5. Banner, pop-up adverts and Billboards. – As the business grows, it will also incorporate use of these methods to advertise.
6. Online. - Numerous avenues are available to reach customers in the online community. This will include use of social media
like Facebook, Twitter, Instagram and YouTube. The company will also operate its own website where customers can interact
with it and find out more about the business. The business will also approach bloggers of fashion columns who will feature the
products and activities of Belleza Beads, hence driving customers to the business.
The aforementioned methods will drive forward the sales of the business. The marketing team also intends to portray an image of
uniqueness, class, affordability and efficiency in delivery. The business will also take into consideration the dynamics of the market,
and how advertisements tend to appeal or repel customers, hence although the advertising should be ruthless, the business will also
take a calmer approach and try not to bombard people with the adverts. The frequency of advertisement will vary, giving time for the
business to launch new products and innovations, while the market is not overwhelmed by the advertisement drives.
The cost of advertising will also be a very important aspect. During the launch of the business a chunk of the capital, preferably 20%
will go towards advertising. This is for the methods which must be paid for like airtime on Television and printing flyers and banners.
There are some other methods that will be incorporated which cost relatively low, for example, use of social media posts.
The effectiveness of the advertising drive will be measured through sales. Advertising that is successful will get word out about the
business which will make more people come and buy the products. There will also be more enquiries about the business and
engagement from customers and followers through the avenues of advertising like social media. This will indicated that the
advertisement drive is working.
To promote the products, promotion methods below will be used:
1. Free samples.
2. Free introductory services.
 3. Sponsorship.
4. Discounted prices.
5. Free merchandise in form of branded reflectors, hats and T-shirts.
6. Business card and sign post.
These five methods will be employed on a regular basis. The two methods that will be used on a daily basis will be business cards and
signposts outside business premises. The cost that will also be incurred will be making the signposts that will be outside the business
premise to show customers where to find the store. A portion of profits during the first fiscal year will be ploughed back into the
business to fund the promotion drive, which may run well up into Ksh 100,000.
These promotional drives will include surveys that will help determine the effectiveness of the methods used. Direct customer
feedback will provide critical information about the impact of the promotion drive. Sales are also expected to reflect whether the
promotion drives are working well or poorly.

2.5 Pricing Strategy.

The pricing strategy for the business will be very simple and straightforward. The prices of the products will first of all be determined
by the material that has been used to create the product. If a material will be a rare metal, it will make the price go up and if it will be a
common material the price will be relatively low. The cost of producing the material will also be taken into consideration. Production
process will require a lot of input from designers who will put in hours of work thus the longer it will take to produce an item the
higher the price will be. It is also important to note that some items will require more use of machines that others, hence consume
more power. This indicates that the more an item will require time on the machine the higher the price of the product will be.
The above-mentioned ways of determining the price will majorly depend on the internal factors of the business, but the external
factors will also have major impact on the price. For starters, the government regulates the prices of beads by setting the highest
possible price it can cost. This is one of the ways that government protects the consumers from exploitation. The company will heavily
rely on government policy when setting prices for products and services.
Competitors will also play a major role in determining the price of products and services. This is because customers will constantly
compare the prices between the brands that are available in the market. The business will consider competitor prices as it sets its own
prices, while still maintaining it within profitable margins.
The selling price of products and services at Belleza Beads will be variable. They will be able to change with market tides hence
remain relevant in competing with other brands. This will also ensure consumers will not being exploited as well as the business will
still remains profitable.
The products that will be produced by the business will be beads. This specialization will enable the business to focus on quality and
reach higher standards and market value. The business will invest heavily in creating an efficient production line for beads, thus
ensuring high quality and quantity to satisfy demand in the market.
In terms of credit, the owner will completely rule out the option of selling in order to pay at a later date. The mode of operation will be
on a cash on delivery basis, thus making certain that the business will not get into bad debt in case customers fail to pay.
In order to entice customers, the business will design a method of discounting the prices based on amount of items purchased. This
will be the major criteria that will be used to determine discount, for example, one item on its own goes for Ksh 1000, but when a
customer order five of them he gets them at Ksh 4000. The business also plans to design a loyalty program based on points whereby
loyal customers who buy repeatedly from the business will earn points which will be redeemed for whole products and discounts on
future purchases.
In order to ensure smooth experience for customers, after sale services such as deliveries will be free of charge. Cost of picking up or
dropping off items will be catered for by the business. This will be a competitive advantage of other brands who likely charge on
aftersales services.

2.6 Sales Tactics.

The business will need to employ sales tactics and strategies that will make sure stock moves and cash flow is moving in. The business
intends to sell to customers both directly and indirectly. This will ensure all avenues are exhausted for maximum sales.
In direct selling, the business will hire employees to man retail outlets that will be set up around the city of Nakuru and any other
branches in other cities and towns. The owner will also set up a sales force that will be mandated to push sales up. The owner will also
be responsible for promoting sales for the business.
In indirect selling, the business will make use of distributors and agents. These will be mobilized by the owner and the marketing
team. They will be given an online platform unique to them where they can interact with sales team, view commissions they have
earned and earn bonuses after surpassing sales target. They will also be able to place orders on behalf of customers. They will be
brand ambassadors of Belleza Beads and help drive customers to the business.
These two strategies of sales with cover very large geographical areas because they will employ offline and online methods of sales.
Sales force will move door to door moving the products, while also promoting the products on online platforms.

2.7 Distribution Strategy.

After a customer will walks into the store and selects the item they desire to purchase, the production begins. Once it is done, there
will be a system set in place so that these goods reach the customer. This is known as distribution. At the beginning, the business will
start with one store but it intends to grow fast and open other branches. Distribution to these branches and to the end consumer will
must be efficient and effective.
If the client will be at the store at time of delivery, the item will be packaged and handed to him/her. In the event that client has
ordered through online platform and are unable to avail themselves to pick up the item at the location where store is located, the
business will organize delivery. This will be by means of mail and parcel delivery through means of post office, parcel delivery
service providers like G4S, matatu Sacco etc.
Distribution also entails outsourcing raw materials and delivering to branches of the business. For both these activities, the business
will make use of railway and road transportation. Both of these means are readily available in Nakuru and connect it to the capital city
of Nairobi. The cost of these means of transport are also relatively low, and will not cost the business too much in expenses even if the
frequency of deliveries increase, as their will also be inflow of cash from the sales. The business also intends to purchase a van to aid
in distribution, as it will reduce cost of paying external delivery means and instead focus on just fueling the car. This will also include
hiring of a driver.
One of the major concerns of distribution will be delivering the items to customers expected to pay on delivery and they fail to honor
it. This will lead to loses in the business due to incurring cost of delivery and not closing the sales. One way of solving this issue is by
pooling together deliveries so that a single trip carries many orders hence even though one is not fulfilled others will be closed sales
and cover these expenses.

Chapter 3.
3.0. Organizational and management plan.
Below is the organization chart to show the composition of the management of the proposed business.

Manager

Deputy Manager
 Overall Bead Designer Influencer Marketer

Assistant Bead Assistant Influencer

Bead Designer Marketer
Designer Marketer

Since the business will be starting come year 2025, the business won't include a big team in the business. As time goes by the
organization management will grow to a whole complete team proportional to the business. At the start, the business will include the
manager who is the sole proprietor of the business, Deputy Manager, financer, Overall Bead Designer, Influencer Marketer, Bead
Designer, Marketers.
The business will be a form of sole proprietor where the owner will handle the business individually. The manager will be Rose
Brenda Gathoni Mumbi. She will also be the owner of the business. Among the owners’ duties will be the major decisions in the
business will be made by the sole proprietor. All the employees will report to the manager of the business, who will also directly
manage and take part in its daily affairs.
The following will be the employees and the team in Belleza Beads:
Manager; the owner and will be making the major decisions in the company. Deputy Manager; will be the second from the manager.
Financer; will deal with all the accounts in the company. Overall Bead Designer; will represent the other Bead Designers. Influencer
Marketer; will represent the other Marketers. Beaders; will be making the beads. Marketers; will b marketing the beads.

3.1. Business Manager and qualifications.

Belleza Beads will be managed and ran individually by Rose Brenda Gathoni Mumbi as the sole proprietor and the manager. The
manager will take full responsibility when it comes to the business. The major decisions will come from the manager and all the
workers will be reporting to manager. As the manager the qualifications and duties are of great importance.
The following are the qualifications of the manager of the business.
Qualifications:
1. Diploma in ICT.
2. Certificate in computer packages 1 to 4.
The following are the responsibilities of the manager of the business.
Duties and responsibilities:
 Provide work direction for the business.
 In charge of building, communicating, and implementing the vision, mission, and of the business.
 Responsible for fixing prices and signing business deals for the business.
 Tasked with employment.
 Pay workers salary.
 Responsible for Signing checks and documents for and on behalf of the business.
 Evaluate the success of the organization.
The manager will draw ksh.20,000 per month as the salary. This amount of money is in line with the initial capital and what other
workers will be paid every month. As the business grows each employee will be receiving more monthly salaries.
3.2. Personnel number and duties.
Belleza beads will hire eight workers who are qualified, innovative, customer centric, employees with good communication skills and
who are open to help the business to grow and compete in the industry. The business will recruit qualified and competent hands to
occupy the following offices;
Deputy Manager, Financer, Overall bead Designer, Influencer marketer, Assistant Bead Designer , Bead Designer, Assistant
Marketer, Marketer
The business will require qualified people in term of education. The following are the qualifications and duties required for each
employee;
3.2.1. Deputy Manager.
Qualifications;
1. Degree in Business Management.
2. Diploma in Business Management.
3. At least one year of experience in Business Management.
4. Good at operating the computer.
5. Good at English and Kiswahili speaking.
6. Disciplined and good problem-solving abilities.
7. A good team player.
Responsibilities;
 Oversee the running of administrative tasks for the company.
 Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
 State the job positions for recruitment and managing interviewing process.
 Organize induction for new team members.
 Training, evaluation and assessment of employees.
 Arrange travel, meetings and appointments.
 Oversee the smooth running of the daily office activities.
The monthly salary of the Deputy Manager will be kshs. 18,000.
3.2.2Financer:
Qualifications;
1. Degree in Accounts.
2. Diploma in CPA.
3. At least one year of experience as an accountant.
4. Certificate in computer packages 1 to 3.
5. Good at English and Kiswahili speaking.
6. Must be disciplined.
Responsibilities:
 Prepare financial reports, budgets, and financial statements for the company.
 Update the managements with financial analyses, development budgets, and accounting reports.
 Financial forecasting and risks analyzing.
 Understand cash management, general ledger accounting, and financial reporting.
 Develop and manage financial systems and policies.
 Administer payrolls.
 Ensure compliance with taxation legislation.
 Taking care of all financial transactions for the business.
 Serve as internal auditor for the organization.
 Update the managements with financial analyses, development budgets, and accounting reports.
The Financer will be receiving a salary of ksh.15, 000.
3.2.3.Overall Bead Designer
Qualifications;
1. Degree in Art and crafts
2. Diploma in Art and crafts(must)
3. Computer packages 1 and 2.
 4. Carry with you 5 designed beads.
5. Good at English and Kiswahili speaking
Responsibilities;
 Plan the layout of specific designs
 In charge with producing instructional articles on projects for bead making publications.
 In charge of the two bead designers
 Give all the instructions necessary for beadwork to the bead designers.
 In charge of buying and ordering for beadwork equipment and materials.
 Sell beads to face to face customers.
 Represent the company in meetings concerning beads.
 Writer of documentations of the beads.
The monthly salary will be ksh. 15,000

3.2.4. Influencer Marketer:

Qualifications;
1. Degree in Marketing.
2. Diploma in Marketing.
3. Knowledge in video production.
4. Knowledge on operating social media.
5. Good at English and Kiswahili speaking.
6. At least experience of 1 year as a marketer.
7. Influencial language and skills.
Responsibilities;
 Overseer of external research and coordinate all the internal sources of information to retain the organizations’ best customers
and attract new ones.
 Understand the development opportunities; follows up on development leads and contacts.
  Keep all customer contact and information.
 Represent the company in strategic meetings.
 Aiding to increase sales and growth for the business in online platform.
The monthly salary of the Influencer Marketer will be ksh.1,000
3.2.5. Bead Designer:
Qualifications;
1. Diploma in Art and Craft.
2. Certificate in computer packages 1 to 2.
3. Disciplined.
4. Creative and innovative.
5. At least 1 year experience.
Responsibilities;
 Use hand and machine techniques to produce samples and finished works;
 Use a variety of traditional and contemporary materials to interpret designs;
 Use bead making machine and other equipment;
 Plan the layout of specific designs
 Clean the working areas.
The bead designers salary will be ksh.12,000.
3.2.6. Marketer:
Qualifications;
1. Diploma in marketing.
2. Certificate in computer packages 1 and 2.
3. Good at English and Kiswahili speaking.
4. Disciplined.
5. Hardworking and ready to learn.
Responsibilities;
 Take videos and photos of the beads that will be posted online for marketing online.
 Act as models in the company by using themselves for the beadwork advertisement.
 Trade the beads in our online platforms.

Their monthly salary will be kshs.12,000.

3.3RECRUITMENT TRAINING AND PROMOTION.

The business will employ employees from the region so as to ensure at least employment challenges and issues are at least reduced by
offering the people around with jobs in the company of which also will be the business goal. The business will also consider this as
giving back to the society.
The area will likely to have people who have skills in the following business personnel; marketing and bead design. This is because
the area that the owner will be opening the business is highly known of bead making. By this it will be easy for the business to grow
easily since the personnel are familiar with the area and the work.
The employees will be required to undergo an additional training in bead work and IT basis in the first two weeks in order to cop up
with operations of the business since it is new in the market. Training and retraining of the business workforce will be at the top
burner. For instance, the employees will be attending art and craft exhibition where we will get more knowledge about bead designs
that will be more pleasing to our customers. They will also be learning through the manufacturers of bead design that is kazuri Bead
Business who is the biggest manufactures of the greatest bead designs in Kenya in order to be familiar with the beadwork components.
The more employees work hard and show commitments in their work the more the chances of being promoted will increase.
Employees will also be credited with awards according to their job well done. As also the business will grow in its productions, the
employees’ also will be in a position to be awarded an increment in their salaries. After a year the company will be holding parties to
appreciate the employees for a good job throughout the year as a form of encouragement.

3.4REMUNERATION AND INCENTIVE.

The proposed business will be much concerned about remuneration of its employees in order to build a good team work. The
remuneration of the employees will be also depended on the duration which the customers will have been brought on the board and
overtime work will be also considered. The business will offer the allowances and facilitates in all operations.
The business will make easy access and movements for its employees to the work place by providing transport, accommodation and
food allowances. Also, the company will be hiring vehicles for transportation of machines to make it easier for whoever will be
purchasing and transporting them to the business.
All employees will be well taken care of and their welfare will be among the best category of the business. This will enable them to be
more than willing to build the business and help deliver the set goals and achieve the business aims and objectives. To ensure that, the
business will designate the salary structure such that the employees will not have to make compromise in their self-esteem. The salary
scale will be equally divided from the top to the bottom level of management.
Personnel Monthly
payment
1. Deputy Manager Kshs. 20,000
2. Financer Kshs. 18,000
3. Overall Bead Kshs. 18, 000
Designer
4. Influencer Marketer Kshs. 18,000
5. Bead Designers Kshs. 14, 000
6. Marketers Kshs. 14,000

The company will also provide meals and snacks to the employees as form of motivation e.g., morning tea/coffee and snacks, lunch
meal, evening tea and snacks. Also, there will be break after three hours of working for the workers to draw more energy and to stay
productive all through the day.

3.5 LICENCES, PERMITS, AND BY-LAWS

The proposed business will ensure that it will operate and practice of what the government recommends as much as the business
activities and operations are concerned. The government supports the beadwork because it is environmentally friendly since it helps in
growth of the country by tax payment and more technology is brought forth from beadwork.
The business will be required to have a business license from the ministry of sports, cultural and heritage and from ministry of
technology and be registered as a company under which will cost business where by returns will be done or filed yearly.
The by-laws of the enterprise will be set by members of the enterprise and will be guided by best practices in the industry of art and
craft being led by the Managing Director regarding all the conditions and agreements which is supposed to be made between the
enterprise and the customers.
3.6 OTHER SUPPORT SERVICES
The business will liaise with the bank for the sake of employees for them to access their salaries through having accounts so as to
manage their finances safe place having their money deposited.
The business will have to choose banking platforms to achieve its plans since it’s payments policy According to the customers
preference and the employees as well. The business will make the following payments option with the banks and communication
corporates like Safaricom. Mostly payment via bank transfer/Deposit will be commonly used.
The business will also have to ensure insurance cover which will be covering any loss of business operations especially when the
customer fails to abide with terms and conditions applied. The business will also hire a lawyer and an accountant when required since
the company cannot afford to employ one when the business will be starting.
The business will obtain the goods from the capital cities in Kenya mostly in Nairobi and Mombasa. This is because these places are
known for beads manufacturing and Mombasa is well known for collection of sea shells and other Bead making products. The
machines will be purchased in Nairobi and any other products will be purchased in Nakuru to make use of local goods.
Chapter 4.
4.0. Product Design and development.
The entrepreneur of this enterprise will major on bead making only as its name states, Belleza Beads business. Bead making will be
the core thing in this business where the entrepreneur will make beads of different taste that is color, texture, pattern and design. The
owner will not concentrate on design on the beads but on the likes of the potential customers.

Belleza Beads will use the finest quality materials for its products. Traditionally, the beads used were made from bone, clay, shells,
wood and seeds. The business will continue using the same material to keep the traditional spirit. The business will also look deep into
the modern materials that will suit the century we will be in. For example, the business will use stainless steel wire so as to ensure that
the beautiful wire products such as coasters will not rust over time, strings.

The business will roughly spend kshs. 120,000 in bead design and development. The money will cater for all the materials and
machines needed for the beadwork in the business

The business will be well armed with the modern technology that is the digital machine for beadwork. This will include chamfering
and grinder machines to manufacture the beads, mirrorless camera and Digital Single Lense Reflector camera for online trading. The
business will also be using analogue technique that is use of hands technique to make beads.

The form of technology the business will use won't be the best due to less capital, as the business will not be able to buy most of the
best machines but, it will upgrade to the newest after some few months or years so as to produce the very best.

The business will come up with technology in future by purchasing the most digital machines and equipment. The business will also
come up with programmed technological machine that will give the beads different with patterns.

4.1. Production facilities and capacity.

In bead work grinder machine and chamfering machine are commonly used. Belleza Beads will use the same tools for the business
and the hand technique as well. The business will also use two types of cameras that is mirrorless camera and Digital Single Lense
Reflector camera. The cameras will take photos and videos that will be used to advertise in online platforms. Belleza Beads, the
business will be required to have tools and equipment to run smooth operations and efficiently. The table below shows the list and cost
of tools and equipment required.
ITEM/EQUIPMENTS QUANTITY COST(Ksh) TOTAL
Office table (full package) 2 10,000 20,000
 Laptop 2 30,000 6,000
Tool box (full package) 2 2,500 5,000
Telephones 1 2,000 2,000
Chamfering machine 1 30,000 30,000
Grinder machine 1 30, 000 30,000

Total 93,000

The machines that won't be afforded by the business due to low capital, will be hired that is vehicles for transportation once per month
and any other machine that will be required. The machine will be hired at a fair cost depending on the business the machine will be
hired from and the machine itself.

The business will be checking their machines after month and repair them after 3 months to keep them in good condition for efficient
work. Any repair and maintenance will be made from the business the machine will be purchased. The business will entrust engineers
and technicians of the business with the machines for repair and maintenance.

For the first year or so the business will use warranties when repairing the machines and thereafter will take the full cost of the repair
and maintenance of the machines since the business will not be able to hire its own. As the business grows, it will be able to hire its
own person for the repairs and maintenances.

The machines spare parts will be locally available still from the same place the machine will be bought. The two main capital cities
Nairobi and Mombasa as they are known for beadwork and bead work equipments where they will be purchased at a fair cost
depending on which machine needs to be repaired. The amount will range between ksh.5000 to 10,000.

The owner of the business will rent a workshop for the first few years of the business as the owner won't afford a workshop for the
business. The business will hire rent a workshop for 5000 per month.
Belleza Beads will allow expansion in future both workshop area and creating more branches. The owner will rent double workshop
area in future to expand the working area. This will help to accommodate more items, machines and equipments. Also the work area
will hold more workers that will be recruited as Belleza Beads grow. Different branches will be open in different cities in the country
to spread the Belleza Beads work.

Sink Overall Bead Materials Machines Financer

Designer and Bead
Designers

Ready Beads
Entrance

Influencer
Designer and Materials Deputy
Machines Manager
Marketers Manager
4.2 Production Strategy.

The materials will always be available in Nairobi and Mombasa cities as they are known of bead making. The business will be making
a purchase of items that will be used for at least two months. This will keep the business active all the time even when the cities will
be short of materials up to the time more goods will arrive.

The business will be planning for the purchasing and transportation of the equipments and materials. Belleza Beads will hire a pickup
that will be used by everyone one especially the Overall Beader and the Influencer Marketer to transport the equipments from the
purchased region to the working place. Other raw materials that are not bulky will be ordered and will arrive as a package. Pickup
hiring will range at kshs 7,000 per day which will be fair enough.

Belleza Beads will require a total of 8 direct workers and 2 indirect workers. The direct workers will be the owner who is the manager,
deputy Manager, Financer, Overall beader, influencer Marketer, marketers and Bead Designer. They will help the business run
smoothly and efficiently. The indirect workers will be the banker and the lawyer. The banker will be needed when the business needs
help during accounts and lawyers in case of disputes.

Belleza Beads will employee highly skilled employees especially the bead and marketers who will be core or the center point of the
business. The bead designers will know how to make the most new beads and will be able to come up with the newest patterns and
design every day. All the workers will start from beginners levels even if they will be knowing more on beads to improve the level of
skills every day.

The total amount of labor that the business will used to pay the worked will as follows;
 Positions Monthly salary

1. Manager Kshs.20,000

2. Deputy Manager Kshs 17,000

3. Financer Kshs.15,000

4. Overall Bead Designer Kshs,15,000

5. Influencer Marketer Kshs 15,000

6. Bead Designer Kshs. 12,000

7. Marketers Kshs. 12,000

Total Kshs.106,000

The total amount the business will spend on the labor per month will be kshs.106,000.
Main products in the business will be the beads. The business will ensure that the beads will not run out. The business will be
purchasing more beads per month that can sustain the beadwork for a period of three months as preparations Incase the beads will run
out in market.
Beads are known not to be expensive at all and the market will be purchasing the beads in whole sale making it even cheaper for the
business. Three months beads will cost around kshs. 3000.
The table below shows the list of items and particulars required monthly.

ITEMS/ COST (Ksh per

 PARTICULARS Month)
Internet 1,000
Electricity +Water bills 1,000
Transportation/fuel 3,000
TOTAL 5,000

The total cost of the expenditures will be good enough to ensure all operations move smoothly and be profitable. The business will
use the ICT equipments to keep the records of all the operations and cost of each day.

The cost of the beads will depend on the current price of the beads, overhead bills, the machined that will be used come 2025 when the
business will be starting. The cost might be high or low but fair enough for the customers.

4.3. Production process.

The business shall have a chronological order of making the bead work. The following will be step by step of Belleza Bead work.
Beaded bracelets.
Step 1;
Preparation of materials.
The materials used will be chosen according to the shape, size and the colors that will be used to make the samples that will be drawn
by the Bead Designers or depending on the customers specifications. For the samples different colors will be used especially the
primary colors since they are well known
Step 2;
Measuring and cutting of the elastic material
The required size or length will be measured and cut depending on the use of the bracelet whether the hand, neck, waist or anklet and
also according to the customers' choice.
Step 3;
Prestretch the elastic cord
Prestreching will be done to ensure the materials will fit the user perfectly when using to avoid the beaded bracelets won't break when
using and it will fit perfectly.
Step 4;
Secure the end of the cord.
A knot will be made to ensure the beads used will not fall out in the process.
Step 5;
String the beads onto the cord.
The beads will be fixed in the string or materials that will be used making a pattern of bracelet.
Step 6;
Tie a knot to secure the beading cord.
Again, a knot will be made to ensure the beads won't fall out after the whole process and to keep them tight to each other.
Step 7;
Secure the knot with glue or sew.
A glue will be used to ties the two nodes and some will be sewed. This will depend on the materials being used.
Step 8;
Cleaning the products
The final products will be cleaned from the dirt and dusted that will acquired during the embroidery process.
Step 9;
Packaging
The company will make gift boxes that will be used to package the gift ready to be sold.

Threaded bracelets.
Step 1;
Preparations
The colors of thread that will be use will be chosen. The embroidery thread, or floss, will be wrapped. It will be unwinded and
wrapped at neatly around a plastic or cardboard bobbin for future use.
Step 2;
Cut Lengths of Thread
The threads will be unwrapped from the bobbin and cut long enough to be able to double the thread. each color of thread will be cut
the same length as the first one.
Step 3;
Folding into Half
The colored threads will be folded of in half so they are doubled to enable the designer form a pattern that will make it easier to plait.
The maximum number of threads to be used in making a threaded bracelet will be 25.
Step 4;
Knot All the Strands
A knot will be made with all the strands, down from the top of the thread. Or the knots will be closed into the lid of your storage box,
to keep the thread from sliding as they are creating the stitches. tape, or any other weighted object will be used.
Step 5;
Organizing the Colours
The colors will be organized in a desired order. Eventually the bead Designer Influencer will make v shape pattern with half a thread
on the right and another half on the left.
Step 6;
Knot The threads
This will be final product where the threads will be knotted and sewed to come up with a complete threaded bracelet, anklet, necklace
and a waist line bracelet.
Step 7.
Cleaning the products
The final products will be cleaned from the dirt and dusted that will acquired during the embroidery process.
Step 8.
Packaging
The company will make gift boxes that will be used to package the gift ready to be sold.

4.4 REGULATIONS AFFECTING THE OPERATIONS

Belleza Beads will be registered under the Ministry of Sports, cultural and heritage as service-oriented business and be acknowledged
by the Cultural and heritage Regulatory Authority. This will enable the owner to open the Belleza Beads. The owner will be required
to pay an instant fee of 3000 and 500 per month for the renewal of the license and the permits. The business will comply in paying of
local taxes to the government.
The business will also pay a local tax to the government through KRA at the end financial year depended on how well the business
will operate and its profits.
The Belleza Bead business will also issue the health insurance for the employees in case of any injuries at work. The owner will also
pay a fee of 500 shillings to attain a license that will allow the company to used noisy machines and it will be renewable every month
at a fee of 300 shillings per month.
Chapter 5.
5.0. Financial Plan.
5.1. Pre-operational cost.
The Pre-operational cost will help the entrepreneur to know all the items, machines and equipments needed to start the business and
run smoothly for the very first year of the business. The following are the machines and equipments needed to start the business;

ITEM/EQUIPMENTS QUANTITY COST(Ksh) TOTAL

Office table(full package) 2 10,000 20,000
Laptop 2 30,000 6,000
Tool box(full package) 2 2,500 5,000
Telephones 1 2,000 2,000
Chamfering machine 1 30,000 30,000
Grinder machine 1 30, 000 30,000
Total 93,000

5.2. Estimation of working capital.

Working capital is the net asset needed for Belleza Beads business to start in the initial
financial year.
Working capital=initial capital – pre operational cost.
Initial capital=KSH.200,000
Pre-operational capital= kshs.93,000
Kshs. 200,000-kshs.93,000=kshs. 107,000
Working capital=kshs.107,000
5.5. Preparation of proforma balance sheet
5.5.1. Proforma balance sheet as at the start of the business.
Non-current assets Capital
kshs.200,000
Equipments and machinery
Shs.93,000
Current assets
Purchases. Shs.3000
Shs.93000
Total shs.96,000
Cash in hand Shs. 104,000

Total. Shs.200,000 Total. Shs. 200,000

5.5.2. Proforma as at the end of the year.
Non-current Assets Capital
Machineries and equipment Ksh.200,000
Kshs.93,000 Net profit
Current assets Kshs.1595800
Purchases. Kshs .57,600
Total. Kshs.150,600
Cash. Kshs.1,645,200
Total
Kshs.1,795,800 Total
Kshs.1,795,800

5.6.Calculations of break even point.

Variable costs
Purchases Kshs.98,000
Advertisement Kshs.3500
Electricity bill Kshs.14,100
Water bill Kshs.7000
Salary Kshs.1,608,000
Internet Kshs.19,000
 Rent Ksh.60,000
Maintenance Kshs.18,000
Total Kshs.1,872,600
Fixed cost
Tax Kshs.28,000
Insurance Kshs.1000
Licence Kshs.600
Total Kshs.29,600

Break even level=Fixed cost/Contribution margin*100

Contribution margin= Sales-Total variable cost
=3960000-1872600
= kshs. 2087400
Break even level= 29600/2087400*100
= 1.4%
5.7. Calculation of profitability ratios.
5.7.1. Gross profit percentage.
Gross percentage= Gross profit/sales*100
Gross proft= 3862000
Sales= 3960000
3862000/3960000*100

Gross percentage=97.5%

5.7.2. Return on Equity

Return on Equity= Net profit/capital employed*100
Net profit= kshs. 1595800
Capital employed= kshs.200,000
1595800/200,000*100
Return on sales= 797.9%

5.7.3. Return on sale

Return on sale= Net profit/sales*100
Net profit= kshs. 1595800
Sales= kshs 3960000
Return on sales= 1595800/3960000*100
Return on sales= 40.2%

5.8. Designed Financing.

Pre-operational cost=kshs.93,000.
Working capital=kshs,107,000
Total desired financing=kshs. 200,000
5.9. Proposed capitalization.
The sole proprietor of the business will take some loans from the bank, family and friends as it follows;
Loans cash
Saving 25,000
Equity bank 50,000
KCB bank 50,000
Family 50,000
Friend 25,000
Total capitalization 200,000