NAME OF THE BUSINESS PLAN: EBENEZER HARDWARE

PRESENTER NAME: SHALINE SANKEI

INDEX NUMBER:
CENDER CODE: 1920
COURSE: DIPLOMA IN INFORMATION COMMUCATION
TECHNOLOGY
CENTER NAME: NAROK WEST TECHNICAL TRAINING INSTITUTE
PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL AS
FOR PARTIAL FULFILMENT OF AWARD OF DIPLOMA IN
INFORMATION COMMUNICATION TECHNOLOGY
SUPERVISOR: MADAM AILEEN
EXAM SERIES: NOVEMBER
TABLE OF CONTENTS
Declaration……………………………………………………………………………1
Acknowledgement…………………………………………………………………………..2
Dedication……………………………………………………………………………………………3
Executive summary………………………………………………………………………………4
Introduction………………………………………………………………………………………….5
Marketing plan………………………………………………………………………………………6
Management plan………………………………………………………………………………….7
Operational plan…………………………………………………………………………………….8
Financial plan………………………………………………………………………………………….9
Chapter one…………………………………………………………………………………………….10
1.0 Introduction……………………………………………………………………………………11
1.1 Business description………………………………………………………………………..12
1.3 Location of the business…………………………………………………………………..13
1.4 Forms and type of the business………………………………………………………….14
1.5 Type of the business……………………………………………………………………….....15
1.6 Product and service…………………………………………………………………………….16
1.7 Justification of the business opportunity…………………………………………….17
1.8 Business objectives…………………………………………………………………………….18
1.9 Entry and growth strategies……………………………………………………………….19
Chapter two…………………………………………………………………………………………….20

DECLARATION
I hereby declare all the above information is given and collected by me
to the best of my knowledge and not any other person.
NAME: SHALINE SANKEI
DATE:
SIGN:
SUPERVISOR NAME: MADAM AILEEN
SIGN:
DATE:
 ACKNOWLEGEMENT
I would wish to extend my hearty thanks to my Almighty father for
giving me a great potential of pursuing and managing such a great
business .Also would wish to humbly thank my lovely parents for their
support .Financially, they greatly play a big role .Secondly, and they
have built a great courage in me to make this business successful.
EXECUTIVE SUMMARY
Introduction
Ebeneza Hardware is a sole proprietorship which is located in
Ololulunga area. The business will establish its store in Ololulunga
Centre along Katakala-Mulot road .The business will sell hardware of all
kinds, quality tools, paints and housewares.
Marketing plan
Ebeneza hardware will operate under a sole proprietorship. It will sell
its product in the local market to make sure that customers are given
much attention. The business has about 1000 willing and potential
customers. It will equalize all customers to avoid discrimination. The
business has got two competitors;
1. USHINDI HARDWARE
2. KILIMANI HARDWARE
The business will be close to its customers to make sure whatever they
need got them on the right time.
Management plan
The business hardware will be manage by its sole proprietor Shaline
Sankei. The business will have the assistance of the supervisor. The
business will expect to hire four employees after catching up will
business. The manager will be one controlling the business with the
assistance of the supervisor.
Operational plan
Ebeneza hardware requires materials and quality tools before starting.
This materials are require for running the business. This will ensure that
any service rendered to customers must satisfy their needs. The
business should observe this for winning customers.
Financial plan
Ebeneza hardware will invest seven hundred thousand to use for
purchasing products. Also it has to borrow one hundred thousand loan
from the bank to cover the investment to enable it to make profit. I
have to make profit in the period of second year to manage the
business start paying back the loan.
CHAPTER ONE
1.0 Introduction
I am Shaline Sankei from Ololulunga area, Masaantare village. I started
my primary school at Masaa primary school. I joined Kongotik high
school after doing well in my class eight National Examination. I later
joined Narok West Technical training Institute pursuing Diploma in
Information Communication Technology. This is where I got knowledge
of this business through my Business plan teacher.
1.1 Business description
Ebeneza hardware is a new business which is going to establish a retail
hardware store in Ololulunga Centre. The business will sell hardware of
all kinds, quality tools, paint and housewares. The business will make
profit by serving its customers by all tools they need. It will sell
products in local markets.
 1.2 Business name
The name of the business is EBENEZA HARDWARE. I decided to come
up with this type of business plan since most people in surrounding
have the urge to purchase furniture, due to my good and affordable
services. It encourages customers to purchase my products.
1.3 Location of the business
Ebeneza hardware will be located in Ololulunga area along Kataka-
Mulot road. It will be position opposite to Masaantare plaza next to
Olkikoro shop plot number 209 ORKINGI PLOT.

1.4 Forms and type of ownership

The business will be a sole proprietorship form of business. The initial
capital of the business will be seven hundred thousand which will be
the owner distribution. It will enable the business to enjoy the profit
and few legal requirements to start and run the business.
1.5Type of business
The business will be a service industry.
1.6 Product and service
Product to provide;
 Spare parts
 Building materials
  Housewares
1.7 Justification of the business opportunity
After scanning the environment in the area, it realize that the residents
is travelling either to Narok or Nairobi to purchase the building
materials so the business is viable and to fill the gap in the market.
1.8 Business objectives
The business has two methods of its objectives:
a. Short term objectives
I. To produce high quality tools
II. To earn profit
III. To increase rate of Kenyans economic
IV. Promote power tools
b. Long term objectives
I. To reduce the rate of unemployment by employing workers
II. To improve the economics of the country by paying taxes
1.9 Entry and growth strategies
Plan that the business owner the business can penetrate into the
market are;
 Regular advertisement
 Providing quality tools
Chapter two
II.0 Marketing plan
The business intending to choose various form of its products such as
use of advertisement through local radio station such as Mayian FM to
reach all kind of potential customers. It will also open online market to
benefit customers to make sure whatever they require is readily
available.
II.1 Potential customers
My potential customer has been identify through different methods of
segmentation for instance
 Demographic which entails age, gender, education, marital status,
income level among others.
 Geographic includes country, climate, rural urban.
 Behavioral like how frequently the customer buys from the
business.
2.2 Market share
By the outlook 75 percent of the residents will purchase the product
because of the changing Lifestyle of the resident and competitors

 Ushindi hardware
 Kilimani hardware
2.3 Competition
Name S w T
Ushindi It has the skill to Tight Closure of the
hardware start and run the competition business
business from potential
customers
Kilimani It has been It run by Incur heavy
hardware existing for long unskilled loses
therefore has personnel
enough money
 2.4 Method of advertisement and promotion
I am intending to choose various forms of channel in my business such
as use advisements through posters, local radio station and also enrich
all kinds of potential customers and intense marketing of the products
online since most of potential customers are using online internet
which enhances easy enrichment to them and introduce them to our
products and services.
2.5 Pricing strategy
The product will be priced through the cost plus pricing method
because it will include transportation cost and advertisement cost.
Pricing of my products
ITEM QUANTITY COST
Iron sheet 1piece 670
Nails 1Kg 270
Cement 1Bag 650
Spare 1 1200
After knowing customers well, the business will offer them credit of one
month so that they can pay their debt.
2.6 Sales tactics
The sale method to be employed in the business will be direct method
and agent will be selected basing on skill level and trustworthy for
motivation in their advance performance.

2.7Distribution strategy
The channel to be implied in the business to distribute the product
includes:
The means of transport to be used is land. The problem the owner of
business will faces is the poor weather of which they manage to repair
most used parts.
CHAPTER THREE
3.0 Management plan
The proposed business will have manager who conjunction with the
supervisor, personnel manager, production manager, secretary, cleaner
and watchman will help each other to achieve the objectives of the
business .Everyone is expected to perform his/her assigned work
effectively.
 3.2 Management plan
General Manager; He will be supervisor manager and holder
information communication technology
And will be responsible in the entire business and settle any issue in
the business.
Financial controller; Responsible for controlling of the finance of the
business and should be computer literate, responsible for general
booking accounting for day and cash flow.
Supervisor; The information communication technology manager gives
out duties to worker, employees and overseeing the section in the
business.
Personal manager; She will be responsible in drafting letters, writing
and sending to the organization, also writing minutes and keeping them
and holder of certificate of diploma in secretarial studies and being
computer literate.
Watchman; their work is to ensure the business is secured and should
be good in both English and Kiswahili.
3.3 Training and promotion
The personnel are recruit before starting the business and taking them
for training to acquire skills. And promotion to be done according to
their performance on the duty and hardworking.
3.4 Remuneration and incentives
Tittle Number Monthly Allowance Total
salary
General 1 15000 500 15500
manager
Financial 1 12000 500 12500
controller
Supervisor 1 11500 500 12000
Personnel 1 10500 500 11000
manager
Watchman 2 8000 500 8500
Cleaner 2 7000 500 7500
 3.5 External recourse person
The business money will be deposited to the equity bank for future
use. The lawyer will be WILSON MATIANGI in case of any case in the
court concerning the business.
3.6 The legal service
The business makes controversial agreement between the company
and suppliers, example supplying commodity on credit For the first
moment the staff will be given contract if the business will be successful
then they will be employed permanently and the business will be a sole
proprietorship so there are no shares therefore the business will enjoy
profit alone.
CHAPTER FOUR
IV.0 Operational plan
The business require material and quality tools before starting. This
materials are require for running the business. This ensure that any
material rendered to customers must meet their need.
IV.1 Production facilities and capacity
The business will require generator for power back up in case of power
blackout.
The production include the following;
Item quantity cost Total cost
Weighing 1 26000
machine
Tape measure 1 3500
IV.2 Production strategy
The monthly requirement is payments of salaries to employees and
having meeting with them.
Employees Salaries
General manager 15000
Supervisor 15000
Personnel manager 14000
Secretary 12000
Watchman 8000
The workers will have vocational training after every month which will
cost the 4000. The business will have seven workers.
IV.3 Production process
The production steps to involve in the business include;
Suppliers Wholesalers Retailers
Consumers
The external factors likely to affect the business
 Demographic factor
 Government policy
 Political instability
The business will minimized the external factors by adhering to the
legal government requirement for smoothing the business.
Security
There is maximum security for business since the population around
that place is not big therefore chances of theft is minimal.
IV.4 Location
Advantages of the business location
1. High level of demand
 2. Zoning
3. Low level of competition since there are only 2 competent
hardware.
4. Proximity to suppliers
5. Low transport cost since suppliers are not far
6. Access to transport means.
CHAPTER FIVE
5.0 Financial cost
Ebeneza hardware will invest seven hundred thousand to use for
purchasing products. Also it has to borrow one hundred thousand loan
from the bank to cover the investment to enable it to make profit. I
have to make profit in the period of second year to manage the
business and start paying back the loan.
5.1 Pre-operational cost
ITEM AMOUNT IN KSH
Transport 1000
Market research 2000
Plan property 2000
Photocopy 1000
Licenses 2000
Meeting 1000
Water 9000
Equipment’s 20000
Furniture 6000
Electricity 2000
Advertisement 3500
Total 43600
Capitalization
No Sources Amount %
1 Owners 500000 70
2 Equity bank 2500 10
3 Borrowing and 5000 20
contribution
Total 507500 100