Professional Documents
Culture Documents
Business Plan Maggah Marcus Repaired
Business Plan Maggah Marcus Repaired
FOR
INDEX NO:
EXAM SERIES :
CERTIFICATION OF SUPERVISION
I declare that this business plan has been under my close supervision and approval.
SUPERVISOR
NAME:
SIGNATURE……………………….
DATE………………………………..
ii
DECLARATION
I declare that this business plan is my original work based on my personal research and has
not been presented anywhere else for examination purposes.
SIGNATURE………………………
DATE………………………………
iii
DEDICATION
This project is dedicated to all my family members especially for all their financial and moral
support they gave me and my lecturers for the knowledge they equipped me during my course
study.
iv
ACKNOWLEDGEMENT
I sincerely wish to appreciate the Almighty God for the peace of mind and guidance that He
provided me with to go through my entire diploma course and successfully finish this
business plan .Am grateful to my supervisor for the advice and support. I also appreciate my
guardians for the financial support they gave me up to the end of my project and my fellow
students for the support and advice they gave me.
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TABLE OF CONTENTS
CERTIFICATION OF SUPERVISION....................................................................................ii
DECLARATION......................................................................................................................iii
DEDICATION..........................................................................................................................iv
ACKNOWLEDGEMENT.........................................................................................................v
TABLE OF CONTENTS..........................................................................................................vi
CHAPTER ONE........................................................................................................................1
EXECUTIVE SUMMARY....................................................................................................1
CHAPTER ONE........................................................................................................................2
BUSINESS DESCRIPTION......................................................................................................2
2.7 Industry............................................................................................................................4
MARKETING PLAN................................................................................................................6
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3.1 Customers.........................................................................................................................6
3.3 Competition......................................................................................................................7
ORGANIZATION PLAN........................................................................................................10
4.4.1 Recruitment.............................................................................................................13
4.4.2 Training...................................................................................................................13
CHAPTER FOUR....................................................................................................................15
PRODUCTION PLAN.............................................................................................................15
CHAPTER FIVE......................................................................................................................19
FINANCIAL PLAN.................................................................................................................19
6.8Return on Investment......................................................................................................25
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APPENDIX I............................................................................................................................26
CRITICAL RISKS...................................................................................................................26
APPENDIX 11.........................................................................................................................27
REFERENCE...........................................................................................................................28
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EXECUTIVE SUMMARY
The business will be registered under the name ELITE SURVEYING AND CONSULTING,
headquartered in Siaya town. It is a partnership form of a business comprising of two
individuals. The proprietors being the manager of the business therefore they will be
responsible for the organizing and managing the operations of the business. Key personnel
will comprise of two surveyors, one cartographer, chainman, Accountant, Secretary and
Security guards. The business will be opened in August 2017 and will deal with
Topographical Survey, Cadastral Survey, Hydrological Survey Construction and setting out
of features.
The business will target local residents, construction companies and parastatals. The business
will offer services at affordable price. Advertising and promotion will be used as service
tactics.
Organization and management plan of the business will have a management team from the
organization where the manager will be assisted by Assistant Surveyor, Cartographer,
Accountant, Secretary and Security Guards. They will be recruited as per their qualification,
experience and knowledge in the office and field work. Operation of the business will
therefore first purchase the required machine and furniture at the beginning and some of the
second year and third year. Every worker will follow the rules and regulations of the firm.
The business requires a projected start up of 2.8 million with which 1.6 million coming from
the partners half a million from the Youth Fund and 0.7 Million as a bank loan. A major
reason for sourcing most of the funds from the partners was to give the business “breathing
room” and allow it to grow. Of the total capital, a sum of 2.4 Million will be used to equip the
business and pay for the first month expenses. The loans are expected to start being repaid
during the second year with a repayment period of 2 years. The partners expect to recoup
their initial investment after the loan has been repaid.
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CHAPTER ONE
BUSINESS DESCRIPTION
The business is a sole proprietorship form of a business which will have one person no
partners. Magga Markus and is currently undertaking a diploma in land surveying at Ollessos
technical training institute. He obtained her first experience when was working in kwale
sugar as field assistant and chainman later during industrial attachment at Nanchang foreign
engineering company limited. The financial sources is from personal savings, donations from
family members and friends, other finance fund is from Youth Fund and bank loan. He plan
to acquire more knowledge and experience through seminars, from other entrepreneurs and
he continues to operate.
The name of the business will be UPRIGHT Surveying and consulting firm. The proprietor
selected the name due interest in geography and its phenomenon. This shows that through
offering best services the business will win the potential customers for its products and
services.
The business will be located in Mbita Town, Mbita point opposite shell petrol station next
building to equity bank .The business will operate under the following Address:
MBITA
E-MAIL: medsurvconc@gmail.com
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2.4 Business Ownership
The business is a one man business, sole proprietorship, this form was preferred because the
owner was willing and able to run the business and have enough knowledge and skills in
terms of expertise and experience. Also the capital specified amount of monetary investment
on entry.
The business being a startup is primarily a consulting with plans to increase the service
rendered as time goes by and the company grows to be service oriented.
Mbita Town is one of the fastest developing towns in Nyanza and the proprietors have
already learnt more about surveying. It is therefore the proprietor’s profession and the skill he
has attained will be useful in the business. During industrial attachment I attained a good
experience. The business friends also has more experience that he gain through consultation
and also during experience when he is employed. Therefore am capable to open and operate
an office. The market is large. These include local residence construction companies and
parastatals that will require the services. The competition in the market is low because the
competitors who exist do not offer good quality service because of inexperience. In that over
the year there has been a shift from manual field visit to less contact method like Remote
Sensing and Photogrammetry. This has increased the form of outputs of survey works and as
such introduced new applications of geospatial science. The development of GIS and GPS
has enabled more analytical of spatial data and provision of precise location anywhere,
anytime. Therefore it is an opportunity that is expected to have a good life because according
to the need of customers it cannot come to an end.
2.7 Industry
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The field of survey is wide and with varied applications. It provides solutions to a wide range
of problems and introduces a unique dynamism to every function. This include the
competitors and the customers. There are only three competitors in the area i.e. ministry of
lands and private firm which is still developing According to the data collected they do not
offer good quality services because of inexperience and introduction of new machine due to
improvement of technology.
Therefore the competitors need to go for further study of the practices so that they can be able
to use digital machine i.e. GPS and total station so as to offer good quality service to keep the
market alive. This is why the proprietor have decided to enter into the industry and offer the
quality product to the customers.
ii) Engineering and design – providing a design plan for land development including
layouts of construction plans for drainages ,sewer lines ,waterlines , highways etc.
iii) Land title –completing land title survey of multifamily, commercial or industrial site
to the national standards. Carrying out searches and title processing
iv) Topographic survey –determining the configuration of the ground. its elevations and
the location above the ground and underground of both natural and manmade features
v) Land use planning - preparing feasibility and concept studies for the highest and
best use of land for residential and commercial sites
As built survey
Control survey
Quantity survey
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They will also offer; Consultant service, correction of boundaries and solving of land dispute.
The firm will give accurate services because the main survey feature is accuracy of data
collection and presentation. Therefore the firm will offer high quality service than the other
competitors.
- The main goal of this business is to provide accurate and quality services to the customers
i.e. provide accurate scaled maps and plans with accurate dimension.
- To create job opportunity to the jobless hence improving living standard in the society.
- UPRIGHT surveying and consulting intend to penetrate new market segments in other
town within the country in a period of three years of operations.
- Attracting and retaining customers by maintaining its good name and customer relations.
The vision: To become the number one provider of precision surveying service.
The mission: To provide customized services to clients and provide new and improved
methods of doing ordinary things in an extra ordinary way.
The business is intended to start with an estimated capital of 2.8 million. It is hoping to start
its operation on august 2020 with a major informative types of advertisement which will be
done through the media e.g. TV, Radio and newspapers and use of sign post which will be
located at strategic place along major highways within Mbita and its surrounding to gauge the
significance of the business internal competitiveness and resources SWOT analysis will show
the weakness, opportunities, threats and strength.
Threat – Unfavourable situation e.g. bargaining power of clients and the government rules
and regulations if the business.
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Strength – Resources, skills and experience or other advantages the UPRIGHT surveying
and consulting has over other competitors i.e. Professional, knowledge and skills of thee
owner.
CHAPTER TWO
MARKETING PLAN
3.1 Customers
Carrying out market research has enabled the owners to validate the business. Survey firms
are currently faced with a lot of challenges particularly inexperience on the Digital
equipment. UPRIGHT surveying and consulting firm intend to maximum the advantage of
geospatial technologies in ensuring that client are served well.
UPRIGHT surveying and consulting targets farmers around Lake Victoria and upper Victoria
and residents within Homabay and Migori and part of Siaya and Kisumu County. Therefore it
will be based at Mbita Town. The basic of selecting the area is supremely because it is one of
land dispute problem in Kenya. It contributes to a high percentage of deaths in Kenya.
From the research surveyors in this area are having challenges with their clients in that most
surveyors are inexperienced hence they don’t produce accurate data. The firm will provide
solution to this problem by utilizing digital machines to produce accurate data.
The main clients are farmers, construction companies NGOs,parastatals. Farmers with
plantation of 100 acres and above under farming and are utilizing mechanization in their
farming practices, for a start the firm intends to engage at least 20 large scale farmers by end
of our first quarter of the operation. The owners will take one selected firm as the pilot
project and the result will determine whether the firm will continue its operations or will
terminate. If successful they will proceed to engage all the other farmers and diversify the
services.
3.3 Competition
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There are two firms in Homa bay County offering the same service. They include District
Survey in mbita town and upcoming private firm. Although they have been in the industry for
quite sometimes meridian intents to gain competitive advantage through utilizing geospatial
technologies as a basis of providing consultancy services to our clients. The satellite images
that will form the basis of our information acquisition are accurate and provide huge
quantities of information of large geographical areas without having to be there physically.
The advice we will give to our client will be accurate, informed and sure. SWOT analysis are
the key areas we considered.
STRENGTH OPPORTUNITIES
WEAKNESSES THREATS
The services are going to be priced on the basis of the market penetration strategies whereby
a cheaper price than that of the competitors which will attract more customers to utilize the
company’s services.
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Also to be considered in the pricing policy of the business is the demand for the services with
regard to the 20/30 concept and the cost of the services to be rendered taking into account
how the business is to maximize profit and sales hence achieve market leadership.
The services will be offered in the business premises house. It will accommodate all the
services and consultants that will be required. The business will also participate in fields
(site) of the client.
The customers will be informed of the services in the market to promote the success of the
business. The methods of promotion will be through the radio, brochures and direct
communication. The brochures will have the name, location and service of the business. The
logo of the business will be placed along the road. The local radio stations e.g. Ramogi FM,
Citizen and Lake Victoria FM will be used to advertise on daily basis of the firm.
Seminars and announcements will be made in church and other public meetings about the
business. The advertisement strategies will be launched before the business commences. The
business will also have seminars on the lectures. The effectiveness of the advertisement will
be measured by the turn-up of the customers. The total advertisement will be Kshs. 10,000.
The business will deal with the direct service because dealing with customer will help the
business to eliminate the middlemen who exploit the customers by overcharging the clients
so as to maintain the number of clients.
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DIRECTOR EMPLOYEES CUSTOMERS
CHAPTER THREE
ORGANIZATION PLAN
Being a partnership kind of a business, the business will be managed by the proprietor who
will be the overall supervisor so as to enhance maximum profit and success of the business.
The proposed organization structure of the business is as shown below:
MANAGING DIRECTOR
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4.2 Key Management Personnel
a) Manager
The business will be a partnership by MAGGA MARCUS having acquired a diploma in land
surveying for three years at Ollessos technical training institute
Responsibilities
- Supervision of staff
- Planning
- Coordinating
- Directing firm’s activities
b) Marketing Director
Qualifications
Responsibilities
c) Accountant
Qualifications
Responsibilities
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- Keeping day to day financial reports
- Preparation checks.
- Calculating wages for every employee’s.
d) Secretary
Qualifications
Responsibilities
e) Surveyors
Qualifications
Responsibilities
a) Office Cleaner
Responsibilities
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- General cleanliness of the premises and compound.
b) Driver
Qualifications
Responsibilities
c) Security Guards
Qualifications
4.4.1 Recruitment
Recruitment will be done by advertising of workers needed. The applicants will be shortlisted
and called for interviews according to positions they applied for. The applicants will then be
selected according to their performance during the interview and placed in different positions
depending on their capabilities.
4.4.2 Training
The manager will thereafter organize for the training of workers so as to equip them with the
necessary skills. Employees will be trained on how to use and adapt to new and latest
technology by attending workshops, seminars and practical work. They will also be oriented
on how to handle different equipment to boost their confidence.
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The business tend to boost morale of employees by establishing a base where employees are
allowed to compete for higher positions, this will be done by checking hard work competence
and commitment of the employees.
As a way of motivating employees the business tend to offer additional allowance to psyche
them up. They include bonuses, commissions and free meals during fieldwork.
The business will acquire license to legally operate in the country. It will need a trade license
service, license from the local authority. It will operate on a single business permit. Under the
national and county government the business is governed by regulations as follows.
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- The business will operate with county government in participation in its activities.
- Business will ensure zero contribution towards environmental pollution and eradication
practices.
- Business will ensure it pays necessary taxes without being followed.
- Business will follow the registration Business Act and Employment Act.
This includes professional services that will be taken in to assist in the smooth running and
expansion of the business they include;
- Allowing customers to air their view during the visit to the business.
- Banking services from Kenya Commercial.
CHAPTER FOUR
PRODUCTION PLAN
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5.1 Production Objectives
- Cost of equipment.
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- Cost of the maintenance and repair.
- Durability of the equipment.
The business will receive an order from client stating service needed.
Preparation for field work by gathering required machines needed by surveyor like map,
measuring tapes, note book, target, ranging rod and total station.
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5.4 Production Strategy
The business will use high quality equipments and machines to satisfy and attract more
customers. It will also identify itself with its products and will also identify itself with its
products and services by adopting unique trademarks so as to differentiate from other
competitors. The business will also strategize on the following;
I. Labour
Business will recruit specialized personnel to produce quality services that will ensure easy
market penetration and customers’ maintenance. Every employee will also work
independently on his or her area of specialization.
II. Materials
The cost of materials depends on the market. The business intends to purchase materials
directly from dealers so as to get friendly terms ad highly quality materials.
III. Expenses
Apart from labour the business will incur other expenses to ensure it runs smoothly.
Electricity 1600
Telephone 3200
Water 1920
Miscellaneous 16000
TOTAL 40320
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5.5 Factors Affecting Production Process
i. Inadequate finance. This may lead to poor performance of the business not expanding and
employee’s strikes due to delayed salary.
ii. Theft. Business may incur loses due to insufficient security gadgets and employees stealing
stuff from the premises.
iii. Inadequate skills. Employees may not be able to handle equipment and perform task
assigned since they have no skills for the modern technology.
iv. Competitors. Upcoming similar firms with proper and advanced equipment may be a
threat to the business since it might lose other customers.
v. Government Policies. The roles and regulations stated by authority might be too harsh,
high taxation and tedious license procedures.
vi. Technology advancements. This will incur more cost on the business training and buying
of the new technology will be required.
To curb all these, the business will put in place the following;
Install modernization security to the employees and alarms to ensure safety throughout.
Ensures good interaction and relation with Kenya Commercial Bank so that they may
assist in financing.
Open up more branches in order to provide more services for the country.
Create more employment for surveyors who are not able to use their skills due to lack of
jobs.
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5.7 Regulations Affecting Production
Safety Regulation
Two fire extinguishers will be purchased and placed strategically for easy extinguishing
process in case of fire outbreak.
Health Regulations
The business will be purchased a first air kit that will be permanently kept refilled the
premise will also be kept clean at all times.
Government Regulation
Labour laws; the business will ensure employees are paid early and compensated incase of
any problem, practiced under the workers compensation Act 236 under Ministry of Labor.
Environmental Regulation
The business will dispose of its waste and garbage in a garbage bin to ensure proper disposal
and maintain a clean and healthy environment.
CHAPTER FIVE
FINANCIAL PLAN
These are the expenses incurred before start of the business operation.
ITEM COST
Permits 7200
19
Electricity bills 1200
Stationery 2432
TOTAL 68048
Current Assets
Current Liabilities
20
Meridian surveying and consulting
Cash inflow
Services
Cash Outflow
21
ITEM
EXPENSES
22
Elite surveying and consulting
FIXED ASSETS
Vehicles 108990
CURRENT ASSETS
CURRENT LIABILITIES
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Long Term Loan 1280000 800000 72000
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Water 23040 12800 9600
1st Year
= 8602560
9104000
= 0.94
0.94
= 35676.60
2nd Year
25
Contribution = 8880000 – 259200
= 8620800
8880000
= 0.96
0.96
= 3306666.67
3rd Year
= 7049600
7200000
= 0.98
0.98
= 3222857.14
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Gross Profit Percentage
1st Year
9104000
= 52.55%
2nd Year
8880000
= 53.15%
3rd Year
7200000
= 50%
6.8Return on Investment
27
APPENDIX I
CRITICAL RISKS
The risks expected to be encountered during the operation of the business include the
following:
Over taxation in the in the region may affect the operational budget of the enterprise
Presence of attackers in the region such as Al-shabaabs may threaten and scare the
customers and daily operation of the enterprise
In case of any fire-outbreak, most of the facilities used to run the enterprise may be
damage hence affecting the enterprise negatively.
Presence of corruption by some of the members may affect the business negatively
Theft of the existing stock may also affect the operational activities of the business
The mitigation to be used during the operation of the business includes the following:
Insurance cover
Prudence management and adherence to corporate
Maintain enough working capital
Develop risk management plan.
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APPENDIX 11
MILESTONE
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REFERENCE
www.bplans.org
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