AMBOGO BLOCK PRODUCTION CENTER

PRESENTER BY: AMBOGO ELIUD

INDEX NO: 5231020104

CENTRE NAME: ALDAI TECHNICAL TRAINING INSTITUTE

CENTRE CODE: 523102

COURSE CODE: 2705

PAPER NO.: 2705/305B

COURSE: DIPLOMA IN BUILDING TECHNOLOGY

SUPERVISOR: MRS. VIBIAN

SUBMITTED TO: KENYA NATIONAL EXAMINATION COUNCIL

IN PARTIAL FULFILLMENT FOR THE AWARD OF DIPLOMA IN
BUILDING TECHNOLOGY.

EXAM SERIES: NOVEMBER, 2023

i
 DECLARATION

I hereby declare that this is my original and personal work to the best of my knowledge.

NAME: AMBOGO ELIUD

SIGNATURE: …………………. DATE………………….

SUPERVISOR…………………………………………………………………..

SIGNATURE: …………………. DATE………………….

 DEDICATION

I dedicate this document to my family for their continued support during my time in college.
 ACKNOWLEDGMENT

I owe my special gratitude to various people who have made it possible for me to complete
this project and my academic pursuits in general.

I would like to thank my family who has never tired in contributing their resources and moral
support.

I sincerely acknowledge my lecturer Mr. Alex for her guidance throughout the time of the
project.

I thank the almighty God for the strength that has enabled me to complete this business plan.
TABLE OF CONTENTS

DECLARATION .......................................................................................................................ii

DEDICATION ......................................................................................................................... iii

ACKNOWLEDGMENT........................................................................................................... iv

CHAPTER ONE ........................................................................................................................ 1

1.0 EXECUTIVE SUMMARY ............................................................................................. 1

CHAPTER TWO ....................................................................................................................... 2

2.0 Business Description ........................................................................................................ 2

2.1 Background of the Owner ................................................................................................ 2

2.2 Name of the firm .............................................................................................................. 2

2.3 Business Location and Address ....................................................................................... 2

2.4 Form of Ownership .......................................................................................................... 2

2.5 Services ............................................................................................................................ 3

2.6 Justification of opportunities............................................................................................ 3

2.7.1 Long term goals ........................................................................................................ 3

2.7.2 Short term goals ........................................................................................................ 4

2.7.3 Vision ........................................................................................................................ 4

2.7.4 Mission...................................................................................................................... 4

2.7.5 Objectives .............................................................................................................. 4

2.8 Entry and growth strategy ................................................................................................ 4

CHAPTER THREE ................................................................................................................... 5

3.0 MARKETING PLAN ...................................................................................................... 5

 3.1 CUSTOMERS.................................................................................................................. 5

3.2 MARKET SHARE........................................................................................................... 5

3.3 COMPETITION .............................................................................................................. 5

3.4 Advertisement and Promotional Strategy ........................................................................ 6

3.6 Sale and Tactics ............................................................................................................... 7

CHAPTER FOUR...................................................................................................................... 8

4.0 Organization and Management Plan ................................................................................ 8

4.2 Key Management Personnel ............................................................................................ 8

4.3 Recruitment, Training and Promotion ........................................................................... 10

4.4 Remuneration and Incentives ......................................................................................... 11

4.5 Licenses, Permits and By –Laws ................................................................................... 12

4.6 Professional Support Services........................................................................................ 12

CHAPTER FIVE ..................................................................................................................... 14

5.0 Operational Plan............................................................................................................. 14

5.1 Operational Objectives................................................................................................... 14

5.2 Operational Facilities and Equipment ............................................................................ 14

5.3 Operation Procedure ...................................................................................................... 14

5.4 Transport ........................................................................................................................ 15

5.6 COST OF PRODUCTION ............................................................................................ 16

5.7 Operation Strategy ......................................................................................................... 16

5.8 Regulation Affecting Operation ..................................................................................... 17

CHAPTER SIX ........................................................................................................................ 18

6.0 FINANCIAL PLAN....................................................................................................... 18

6.2 PRE-OPERATIONAL COST........................................................................................ 18

6.3 WORKING CAPITAL .................................................................................................. 18

6.4 PRO-FORMA INCOME STATEMENT....................................................................... 19

6.5 PROJECTED CASH FLOW STATEMENT................................................................. 19

6.6 PROFOMA BALANCE SHEET ................................................................................... 20

6.7 FIXED AND VARIABLE ASSETS ............................................................................. 22

6.8 Calculation of Profitability Ratios for the First Three Years ......................................... 24

APPENDIX 1 ........................................................................................................................... 25

MILESTONE SCHEDULE ..................................................................................................... 25

 CHAPTER ONE

1.0 EXECUTIVE SUMMARY

1.1 Business Description

The business name will be Ambogo Block Production Center it will run as a sole proprietor.
It will be owned by Ambogo Eliud a student undertaking Diploma in Building Technology at
Aldai Technical Training Institute. The business will be located in Kapsabet town, Tumaini
plaza opposite Total Filling station.

1.2 Marketing Plan

It will incorporate marketing plan showing services offered, competitors their weaknesses
and strength and ways of capitalizing with them. The business hopes to capture individual,
private firms, Parastatals, and also commercial customers. Its competitive advantage is that
it’s located at a very convenient Centre and use of modern Building equipment. The business
will highly specialize and target on all potential customers

1.3 Organization and Management Plan

For effective and efficient running of the business, the management will describe the co-
coordinators, controlling, organizing, planning and staffing all the activities in the business.
Other staffs include: assistant manager, store keeper, drivers and messengers.

1.4 Operational and Production Plan

This section describes the facilities, tools and equipment to be used at the starting stage. This
includes monthly labor; requirement and expenses related to performing of Building work,
however more and advanced Building equipment are to be bought in as the business grows as
well as the number of employees. Transport is essential and therefore a car is required to take
employees to Building sites and this will make the business to be efficient and effective in its
operation.

1.5 Financial Plan

It will require 1,000,000 and it is expected from the following sources;

Personal saving - 550,000/=; Contribution from family- 450,000/=

1
 CHAPTER TWO

2.0 Business Description

2.1 Background of the Owner

The owner who also will be the owner of the proposed firm is Ambogo Eliud and is currently
a student at Aldai TTI where he is pursuing a course in building technology. Being a
graduate of 8-4-4 system the propriety got the opportunity to study business and
entrepreneurship in high school and college respectively, the proprietor also studied land
surveying in college hence advantage in which he will exploit.

2.2 Name of the firm

The proposed firm will have a trade name Ambogo`s Block Production Center

2.3 Business Location and Address

The business will be located in Kapsabet in Kapsabet Town. The firm will be situated
opposite equity bank. The area is well known for good infrastructure hence accessible. There
is also accessibility to banking services; the place is also secure due to the police station on
the other side and other important services. The business contact will be;

Business Address:
AMBOGO ELIUD
P.O Box 76-30305, Kapsabet,

2.4 Form of Ownership

The firm will be a sole proprietor. This form of business has been chosen due to the following
reasons;

i. The proprietor will enjoy all the benefits from his effort alone.

ii. The proprietor will make all the decision hence he will be independent

iii. Quick decision making

iv. Create employment to the local native

v. To be his own boss

However regardless of the above advantages there are some limitations which include;

i. Bearing all losses

ii. Business being subjected to collapse due to bankruptcy
iii. wrong decision making

To get rid of above problems the proprietor will;

i. Appoint an assistant to give hand in day to day running of the business

ii. Take insurance cover against theft and fire.

2.5 Services

The firm will offer services to local residents as provision of block materials, plumbing and
other consultancy services.

2.6 Justification of opportunities

Due to the high demands of demand of AMBOGO`S Block Production Center such as
mixture deposit in the region; following the increase in building activities in the region, the
opportunity is deemed futile.

Government through the ministry of roads and planning are coming up with the projects
which requires concrete works and materials in the region but government suppliers are not
enough hence demand for private surveyors in the region.

NGOs also have got many projects such as construction of dams, boreholes, this requires
Ambogo`s Block Production Center deposit work in the region hence opportunity.

2.7 Goals of the Firm

AMBOGO`S Block Production Center has got long terms and short-term goals

2.7.1 Long term goals

a) To own a greater market share

b) To grow and establish other firms in other parts of the country

2.7.2 Short term goals

a) Creating employment opportunities.

b) Offering quality services to satisfy the needs of the clients.

The firm will have the following visions, missions and objectives.

2.7.3 Vision

To become the best Block Ambogo`s Production Center firm in the region and the best
consultant firm that has never been.

2.7.4 Mission

To provide the best services to the clients in the area and satisfy their needs

2.7.5 Objectives

To satisfy the clients or customers’ needs.

To become the best survey firm

2.8 Entry and growth strategy

The business will enter the market with advanced technology to make it competitive. It will
ensure that it offers the best services to its clients. Offering discounts will be priority.

The firm will start carrying out all its operations after three years as part of its growth
strategy.
 CHAPTER THREE

3.0 MARKETING PLAN

3.1 CUSTOMERS

The Ambogo`s Block Production Center will have a set of categories of its customers as
follows:

3.1.1 The Individual Customers

This constitutes then majority of the market for the business bearing an entire 75%
approximate. The business has considered them as very important factor to the business
existence.

3.1.2 Institutions

This includes the schools, industries, colleges around the area which would wish to do
expansion in their structures and also to improve in their drainage system.

3.2 MARKET SHARE

According to the market share the market survey carried out by the owner in the area, the
business should start with a market share of 25%. This is because this is because of the
competition created by the already existing firms. This is expected to rise to about 40%
within three years. This will be achieved through;

i. offering high quality services

ii. good public relations and strong marketing plans
iii. the business will capitalize on the weakness of its competitors

3.3 COMPETITION

The market research carried out in the area on the number of similar firms available is only
one that is the Marowa Builders. This firm has got large market share but has got low quality
services since it uses the old machines and also known for its high charges.

The SWOT analysis is done in the table below;

 FIRM STRENGTH WEAKNESS OPPORTUNITIES THREATS

MAROWA Well known Offering low High number of Using old

BUILDERS customers quality services customers machines

High salary Poor public High economic Existence of

paid to relations with growth rate favors unqualified
employees the customers its performance persons in the
since its well survey field.
established

RUTH’S Offering high The business is Good public The business

BLOCK quality still new hence relations will is still new
PRODUCTION services can’t afford attract more hence still
CENTER high salaries to customers to the lacks public
the employees firm awareness of
its existence.

Offering Inadequate Using of high and High licensing

services at finance to modern fees which are
relatively purchase all the technology will unfavorable
lower prices required ensure a high- for a starting
equipment quality service business

The business will capitalize on the competitor in the following ways;

✓ Providing promotion and discounts

✓ Providing high quality and affordable services

3.4 Advertisement and Promotional Strategy

The firm will advertise through posters signboards placed at different corners of the town and
cards showing the image of the business. Signboards and posters will be liable for changes
for every year customers will be motivated through promotion services offering calendars and
discounts. The manager will make before and after advertisement and promotion campaigns
to measure the effectiveness of adverts and promotion.
3.5 Pricing Strategy

This will be determined by market factors such as demand .discounts will be provided to
attract customers at any particular time. Other factors that will be used by the firm to
determine prices include;

i. Government policy
ii. The going market prices
iii. Production cost
iv. Demand of services
3.6 Sale and Tactics

The employees will use friendly language to customers to acquire maximum customers and
retain the already existing ones thus increasing the sales.

3.7 Distribution Channel

FIELD WORK OFFICE SALES OFFICE

SURVEYS COMPUTATION

CUSTOMERS
 CHAPTER FOUR

4.0 Organization and Management Plan

The management will set the policies for the Block Making and Other. It will coordinate and
plan for any activity to be undertaken. It will as well determine the success of the firm.

4.1 Organizational Chart

The following is the organizational chart of the firm.

GENERAL MANAGER

ASSISTANT MANAGER

FIELD TECHNICIAN

CLERK

DRIVER

4.2 Key Management Personnel

4.2.1 General Manager

Duties

✓ Decision making
✓ Delegation of authority to other staff
 ✓ Ensure that the firm’s policies are implemented
✓ Control and manage general enterprise

4.2.2 Assistant manager

Qualification

Diploma holder in Building technology

2-3 years of experience in the field of surveying

Able to work in any environment

Duties

✓ Carrying out Concrete works

✓ Assist manager in controlling and planning of all activities

4.2.3 Field work technician

Qualifications

✓ Diploma or certificates in land surveying

✓ Computer literate
✓ Able to adapt quickly to modern change in technology
✓ Good understanding of AutoCAD software

Duties

-Will be carrying out field work

-Office computation
4.2.4 Clerk

Qualifications

✓ K.C.S.E with a minimum grade of C- and C plain in mathematics English and Kiswahili
✓ Working g experience will be an added advantage
✓ Must be understanding and social

Duties

-Selling of firm’s services

-Collection analysis and presentation of required data in the firm

-Receiving phone cells

4.2.5 Driver
qualifications

✓ A driving license (updated) from a well-known driving school

✓ Should have a K.C S E certificate
✓ Certificate of good conduct
✓ Should be fluent in any of the national languages
✓ Results oriented honest and responsible

Duties

-Delivering new equipment to the firm

-Being responsible for the vehicles

4.3 Recruitment, Training and Promotion

4.3.1 Recruitment

The general manager and assistant manager will conduct interviews. The following are some
ways in which they will use to recruit people.
1) Consulting schools and colleges for graduate who did relevant courses.

2) Advertising to the national and local newspapers and interviewing the applicants according
to the job and qualifications.

4.3.2 Training

The business will embark on training employees on new technology since this is a technology
driven business. However this is a long-term plan. Internal training to any other worker who
needs to get trained on any new equipment or machine bought will be done to enable the
worker to have knowledge for its operation to be effective.

Top management and every worker will be attending relevant seminars in other big firms
which will initiate productive.

4.3.3 Promotion

This will be based on the following:

i) Working experience
ii) Personal skills and educational level
iii) Merit

4.4 Remuneration and Incentives

The personnel will be paid according to the rules and regulation which are stipulated by the
Kenyan government under the ministry of labour.

The salary of the personnel will increase with expansion of the firm. Some of the incentives
that workers will benefit from are;

a) Loans will be given to employees at a zero rate.

b) They will be given off when there is less work
c) On special occasions e.g. holidays the employees will get gifts and presents
d) The firm will ensure safety of workers.

The starting salaries however will be as follows;

a) Managing director kshs.30000

b) Assistant manager kshs.25000

c) Field technician kshs.19000

d) Clerk kshs.16000

e) Driver kshs.1500

4.5 Licenses, Permits and by –Laws

A license is a legal permit to carry on with the business. The firm will be registered and get a
license from Kapsabet Town. This will be renewed annually and the firm will join relevant
association of other survey operations to be working jointly. It will be registered under the
ministry of lands housing and urban development thus the ministry can offer the financial
material and legal support.

The firm will be registered in attorney general chambers under trade name Ruth’s Block
Production Center. This will enable it to carry out its activities without outside intimidation.

Some of the by laws that govern the smooth-running Ruth’s Block Production Center are;

• Working hours will be 8.00 am to 5.00 pm.

• Premises should be ever clean.

• All employees should be tidy while on duty

• All staff must wear protective clothing

• All work done must be carried out as per the survey act and principles.

4.6 Professional Support Services

4.6.1 Banking

To avoid theft the firm will open an account with the equity bank and deposit money, also for
borrowing loans to expand the business or of needed equipment.
4.6.2 Auditing

At the end of every year an auditor will be hired carry out financial estimation of the firm.

4.6.3 Insurance

The assets will be insured with reputable insurance company. The risks to be insured against
include theft, accidents, fire; other professional services will be sought if needed.
 CHAPTER FIVE

5.0 Operational Plan

The firm will have an operational plan that will be vital for the offering of high-quality
services. This will involve putting together the required resources and relevant skills and
techniques to come up with services which satisfy the clients.

5.1 Operational Objectives

a) To ensure that all the resources are utilized fully to the maximum

b) To ensure that relevant skills and techniques are used in the field operation

5.2 Operational Facilities and Equipment

For effective operation the firm will have to purchase various tools and equipment.

Item Quantity Unit price Total Supplier

(kshs.)
Stock 1 500000 500000 Leica company
Hand held GPS 1 25000 25000 Leica company
Concrete Mixture 1 90000 90000
Motor Generator 1 70000 HP

All the equipment and machinery purchased will be delivered to the firm one month before
the start of the firm’s operation.

5.3 Operation Procedure

5.3.1 Reception

Customers will be received by the clerk who will direct them to the manager. The customers
will present problems or services he or she would like to be offered.
5.3.2 Field reconnaissance

For the field work, the manager will go the actual field accompanied by two or three of his
team. They take the general view of the area. They will then estimate the cost of the project
and the materials required hence negotiate with the customers.

5.3.3 Field Observations

During the field work, the equipment will be made available together with the machines and
ensure that the machines are functioning. Technicians will then be taken to the field to carry
out observations and measurements.

5.3.4 Presentation of fieldwork

After the fieldwork the assistant manager who is a cartographer will lead the team in the
presentation of data in a way that it can be understood by others.

This presentation will be in a form of written reports data sheets drawings, bills of quantities,
maps and plans depending on the type of survey that was carried out.

5.3.5 Field Installation

The work is then forwarded to the manager who will then initiate the appropriate work and
installation in the plotted areas.

5.4 Transport

At the beginning of operation the firm will rely on hired vehicle. Thereafter it will purchase
its own vehicle that shall be used for transportation. This will ensure that all firm operation is
carried out with a lot of ease and effectiveness as surveyors will be able to reach the plots to
be surveyed easily.

5.5 Supply of Labour

The firm will employ highly employed qualified persons with the required skills and
experience, this will ensure all the survey standards and regulations are met.
5.6 COST OF PRODUCTION

The cost of operation will depend on the following factors;

i) Amount of work done

ii) Prevailing market cost
iii) Time taken to do the job
iv) Economic factors like inflation
v) Government policies

The cost of production will be varying from time to time due to changes in the factors
affecting it. The firm will however allow discounts to customers it considers loyal.

5.7 Operation Strategy

5.7.1 Job Specialization and Delegation of Duties

Every employee will work independently in his or her area of specialization. In case of
commitments an employee will be allowed to delegate his or her duties to a person who has
the same skills in that field.

5.7.2 Accountability and Transparency

Every employee shall be responsible shall be held responsible for their activities. Each of
them will also account for resources allocated to them in the course of their duties.

5.7.3 Motivations

This will be done by offering incentives like allowance, allowing them to carry out research
and offering the opportunity to further their studies. Conducive working environment will
also be a guarantee.

Safety equipment and materials will also be provided to avoid any injury that may be caused.
Employees will be compensated in case of any injury or accident at work.

All these will ensure that employees work with a lot of passion and confidence hence
increasing the output.
5.7.4 Communication

A proper communication channel will be established between the different departments and
also between different levels of management. This will ensure their good communication
network between workers of different levels. This will ensure there is good understanding
between one another hence no confusion. This ensures good output.

5.8 Regulation Affecting Operation

These regulations include;

a) Safety regulations e.g. first aid kit and fire extinguishers

b) Permits and licenses which are necessary for the business to commence its operations

c) Environmental conditions e.g. cleanliness

All these regulations will ensure that the survey work is executed as per the regulation
required in the field of survey. All these regulations if considered this will ensure that there is
quality production.
 CHAPTER SIX

6.0 FINANCIAL PLAN

The financial plan of Ambogo`s block Production Center will be balanced to monitor
performance of the firm. Intricate mathematical calculation have been used to show how the
financial plan is set to achieve the monetary goals of the company through proposed spending
into business by first starting with Kshs.600,000.

6.2 PRE-OPERATIONAL COST

OPERATION COST(KSHS)
Registration (license) 5000
Building (rent) 6000
Insurance charges 2000
Electricity charges 1000
Advertisement 2000
Furniture and fitting 90000
Total station 500000
Hand held GPS 25000
Computers 70000
TOTAL 600000

6.3 WORKING CAPITAL

ITEMS 1ST YEAR 2ND YEAR 3RD YEAR
Currents assets
Stock 100000 120000 150000
Cash in hand 150000 100000 140000
Cash at bank 120000 125000 130000
TOTAL 370000 345000 420000
Current liabilities
Short term loan 100000 60000 50000
Long term loan 50000 40000 30000
Creditors 50000 45000 40000
TOTAL 200000 145000 130000
Working capital 170000 200000 290000
6.4 PRO-FORMA INCOME STATEMENT
ITEMS 1ST YEAR 2ND YEAR 3RD YEAR
Sales 850000 880000 860000

Discount allowed 20000 15000 25000

Net sales 830000 865000 835000
Cost of services offered 79000 82000 85000

Gross profit 751000 783000 750000

Expenses
Salaries and wages 108000 108000 108000
Advertisements 24000 18000 20000
Transport 50000 48000 45000
Electricity 12000 11000 12000
Maintenance 6000 5000 6000
Insurance 24000 24000 24000
Rent 72000 72000 72000
TOTAL 296000 286000 287000

Net profit before tax 455000 497000 463000

Tax provision 10% 45500 49700 46300
Net profit after tax 409500 447000 416700

6.5 PROJECTED CASH FLOW STATEMENT

ITEMS JAN-MARCH APRIL-JUNE JULY-SEPT OCT-DEC
CASH INFLOW

Beginning cash 750000 800000 877500 951000

Cash sales 150000 200000 205000 100000
Debtors - 7000 15000 10000
TOTAL 900000 1007000 1097500 1061000
CASH
OUTFLOW
Cash purchase 8000 12000 24000 30000
Payment of - 25000 30000 25000
creditors
Salaries and wages 27000 27000 27000 27000

Advertisement 6000 6000 6000 6000

Transport 12500 12500 12500 12500
Loan payment 5000 5000 5000 5000
Licenses 15000 15000 15000 15000
 Rent 18000 18000 18000 18000
Insurance 6000 6000 6000 6000
Electricity 3000 3000 3000 3000
TOTAL 100000 129500 146500 147500
Net cash 800000 877500 951000 913500

6.6 PROFOMA BALANCE SHEET

This is a financial statement that shows the financial position of an enterprise. it includes
assets and liabilities of the firm over a long period of time.
BALANCE SHEET OF AMBOGO`S BLOCK PRODUCTION CENTERS AND
MIXTURES DEPOSIT

AS AT 31ST DECEMBER 2022

1st YEAR 2ND YEAR 3RD YEAR

Fixed assets
Total station machine 500000 450000 420000
Hand held GPS 25000 20000 40000
Computers 70000 85000 90000
Furniture 90000 118000 120000
Total 685000 673000 670000
Current assets
Cash in hand 180000 300000 500000
Cash in bank 233000 400000 700000
Debtors 32000 20000 15000
Total 445000 720000 1215000
TOTAL ASSETS 1130000 1393000 1885000
Current liabilities
Creditors 80000 180000 400000
Total 80000 180000 400000
Long term liabilities
Owners’ equity 250000 350000 750000
Capital 700000 780000 690000
Bank loan 100000 83000 45000
Total 1050000 1213000 1485000
TOTAL 1130000 1393000 1885000
LIABILITIES
6.7 FIXED AND VARIABLE ASSETS
ITEMS 1ST YEAR 2ND YEAR 3RD YEAR
Fixed cost
Salaries and wages 108000 108000 108000
Licenses 60000 60000 60000
Rent 72000 72000 72000
Loan payment 20000 20000 20000
Insurance 24000 24000 24000
TOTAL 284000 284000 284000
Variable cost
Advertisement 24000 18000 20000
Payment of creditors 45000 70000 62000
Electricity 12000 11000 12000
Cash purchases 60000 65000 58000
Transport 50000 48000 45000
TOTAL 191000 212000 197000

6.7.1 BREAK EVEN ANALYSIS

It will be of great importance to know where the firm must aim. The point must obviously lie
above the nonprofit making zone. AMBOGO`S BLOCK PRODUCTION CENTERS AND
MIXTURES DEPOSIT has to know this point so as to aim higher.

Contribution= sales- variable cost

Contribution margin=contribution x 100

Sales

Break-even point= fixed cost

Contribution margin

Contribution margin= total sales –variable cost

Contribution margin in %= contribution margin x 100

Sales
Break-even point for the first year

Contribution margin= 830000-191000=639000

Contribution margin in %=639000 x 100=76.99%

830000

Break-even point = 284000 x 100 = 368879.08

76.99

Break-even point for the second year is

865000-212000 = 653 000

Contribution margin in % =653000 x 100 =75.49%

865000

Break-even point = 284000 x 100 =376208.77

75.49

Break-even point for the third year is

835000-197000 = 638000

Contribution margin in % = 638000x 100 =76.41 %

835000

Break-even point =284000 x 100 =371679.10

76.41
6.8 Calculation of Profitability Ratios for the First Three Years

a) Gross profit ratio =gross profit x 100

Net sales

Gross profit the first year is

751000 x100 = 90.48 %

830000

Gross profit for the second year is

783000 x 100 =90.52%

865000

Gross profit for the third year is

750000 x 100 = 89.82%

835000

a) Return on investment

Return on investment = net profit after tax x 100

Total investment

For the first year = 409500 x 100 =36.24 %

1130000

For the second year =447300 x100 =32.11%

1393000
 For the third year =416700x 100 = 22.12 %

APPENDIX 1

MILESTONE SCHEDULE
MILESTONE START END APRROX
BUDGET
Training on business plan 10/05/2023 28/06/2023 1200 Mr. Alex
proposal
Choice of business plan 18/06/2023 28/06/2023 0 (self)
proposal/topic
Business plan draft drawing 06/07/2023 23/07/2023 800 (self)
Correcting and writing of final 23/07/2023 07/08/2023 300 (self)
draft.
Editing, printing, and binding 23/9/2023 27/09/2023 1200 (self)
final copy
Presentation of b/plan to KNEC 28/11/2023
for examination