SIGNAL ANTENNAS SHOP

NAME OF THE CANDIDATE: NICKSON OMONDI

INDEX NUMBER:

INSTITUTION: NYS ENGINEERING INSTITUTE

SUPERVISOR: J.K Mbatia.

Presented to Kenya National Examination Council in partial fulfillment for the award of diploma
in Telecommunication Engineering.

SERIES: MARCH 2024

1
 SIGNAL ANTENNAS SHOP

Owner/presenter: NICKSON OMONDI

PO BOX 127

NAIROBI

Mobile phone: 0705206285

Vision/mission

To provide best services to my customers and also improve my business to ensure it always
remain at the top at all times.

TOTAL INVESTMENT: Ksh. 737,512

i
DECLARATION

I declare that this is my original work and it has never been presented anywhere else for the
purpose of examination.

Name of the candidate: NICKSON OMONDI

Signature: …………………………………………………………………………….

Date: ………………………………………………………………………………….

I confirm that I have approved and supervised the candidate’s business plan project

Name of the supervisor: J.K MBATIA

Signature: .....................................................................................................................

Date: ………………………………………………………………………………….

ii
DEDICATION

I dedicate this project to my parents and siblings who were there for terms of advice and prayers
which greatly contributed to my successful completion of this business plan.

I also dedicate this project to my lecturer J.K Mbatia who gave me a clear outline and tireless
supervision, which I followed to the latter in order to write a saucerful business plan.

iii
ACKNOWLEDGMENT
I would to acknowledge and greatly appreciate the knowledge impacted to me by my business
plan lecturer, Mr. J.K Mbatia for the giving me the guidelines to follow towards completion of a
success full business plan.

I also acknowledge my course mates for standing together with me in research that which
ensured that I complete my business plan in time and in a successful way.

iv
Table of Contents
ACKNOWLEDGMENT ........................................................................................................................... iv
EXECUTIVE SUMMARY ..................................................................................................................... viii
CHAPTER ONE ......................................................................................................................................... 1
1.0 BUSINESS DISCRIPTION.................................................................................................................. 1
1.1 The Owner/Sponsor .......................................................................................................................... 1
1.2 BUSINESS NAME ................................................................................................................................ 2
1.3 BUSINESS LOCATION AND ADRESS ............................................................................................ 2
1.4 FORM OF BUSINESS OWNERSHIP ................................................................................................ 3
1.5 PRODUCTS/SRVICES ........................................................................................................................ 3
1.6 THE INDUSTRY ................................................................................................................................ 10
History of Origin ............................................................................................................................... 10
Historical development of telecommunication business in Kenya. ............................................... 12
1.7 JUSTIFICATION OF OPPORTUNITY .......................................................................................... 13
1.8 GOALS AND OBJECTIVES............................................................................................................. 13
1.9 ENTRY AND GROUTH SRATEGY ................................................................................................ 14
CHAPTER TWO ...................................................................................................................................... 15
2.0 MARKETING PLAN ......................................................................................................................... 15
2.1 POTENTIAL CUSTOMERS ............................................................................................................. 15
1. Residents of Neema Apartments Embakasi .................................................................................... 15
2. East Africa School of Aviation. ...................................................................................................... 15
3. Residents of Nyaso Eastates Embakasi. .......................................................................................... 15
4. GSU Officers from the GSU Training school. ................................................................................ 15
5. G4S Security officers. ..................................................................................................................... 15
2.2C0MPETITION ................................................................................................................................... 16
2.2.1 Competitors .................................................................................................................................. 16
STRENGTHS ..................................................................................................................................... 16
WEAKNESSES .................................................................................................................................. 17
2.22 COPING WITH COMPETITION .............................................................................................. 19
2.3 PRICING STRATEGY .................................................................................................................. 20
2.5 MARKET SIZE AND MARKET SHARE ................................................................................... 23
2.6 SALESS TACTICS ......................................................................................................................... 23
2.7 ADVERTISING SND PROMOTION STRATEGY .................................................................... 23

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 Signboard ........................................................................................................................................... 23
Posters ................................................................................................................................................ 23
public address system ....................................................................................................................... 24
Social media ....................................................................................................................................... 24
2.8 DISTRIBUTION STRATEGY ...................................................................................................... 24
2.9 CUSTOMER SERVICE ................................................................................................................. 25
CHAPTER THREE .................................................................................................................................. 26
3.0 ORGANIZATION PLAN............................................................................................................... 26
3.1 ORGANIZATION STRUCTURE ................................................................................................. 26
3.2 KEY PERSONNEL (MANAGEMENT TEAM) .......................................................................... 26
a) Owner /Manager ........................................................................................................................... 26
DUTIES AND RESPOSIBILITIES .................................................................................................... 26
3.3 OTHER PERSONNEL ................................................................................................................... 27
DUTIES AND RESPONSIBILITIES.................................................................................................. 27
3.4 RECRUITMENT TRAINING AND PROMOTION................................................................... 27
a) RECRUITMENT .............................................................................................................................. 27
TRAINING ............................................................................................................................................ 28
Owner/Manager .................................................................................................................................... 28
2) New Employees ............................................................................................................................. 28
Promotion .......................................................................................................................................... 28
3.5 RENUMARATION AND INSENTIVES ...................................................................................... 28
b) Incentive’s ......................................................................................................................................... 29
3.6 LICENCESS AND PERMITS ........................................................................................................... 29
CHAPTER FOUR..................................................................................................................................... 31
4.0 PRODUCTION / OPERATIONAL PLAN....................................................................................... 31
4.1 PRODUCTION / OPERATIONAL FACILITIES AND CAPACITY ........................................... 31
4.1 a) MACHINES, TOOLS AND EQUIPMENTS ............................................................................... 31
4.1(b) Raw Material for the 1st Month ................................................................................................ 34
4.1 (c) Operating Expenses ................................................................................................................... 35
4.2 (b) Product Design and Development........................................................................................ 37
4.2 (C) Quality Control ..................................................................................................................... 37
4.3 PRODUCTION/OPERATION STRATEGY ............................................................................... 37
4.4 PRODUCTION/OPERATION PROCESS................................................................................... 37

vi
 4.5 Regulations affecting production/operation ................................................................................. 38
CHAPTER FIVE ...................................................................................................................................... 39
5.0 FINANCIAL PLAN ............................................................................................................................ 39
5.1 PREOPERATIONAL COST ............................................................................................................. 39
5.2 WORKING CAPITAL REQUIREMENT ....................................................................................... 43
5.3.1 PROJECTED CASH FLOW STATEMENT FOR THE FIRST YEAR .................................... 45
5.4.1 PROFORMA INCOME STATEMENT FOR THE FIRST THREE YEARS ........................... 47
5.5.1 PROFORMA BALANCE SHEET AS AT 1ST JANUARY 2025 ............................................................. 49
Dr ............................................................................................................................................................ 49
Cr ............................................................................................................................................................ 49
ASSETS .................................................................................................................................................. 49
Fixed assets ............................................................................................................................................. 49
Machine, Tools & Equipment 209,520 ........................................................................................... 49
Current assets 527,992 ............................................................................................ 49
LIABILITIES .......................................................................................................................................... 49
Owners’ equity 600,000 ............................................................................................. 49
Loan 137,512 ............................................................................................. 49
737,512 ................................................................................................................................................... 49
737,512 ................................................................................................................................................... 49
5.5.2 PROFORMA BALANCE SHEET AS AT 30TH DECEMBER 2025 ........................................................ 49
5.6 BREAK EVEN LEVEL ............................................................................................................................... 50
I. Total Contribution Margin (TCM) .............................................................................................. 50
II. Contribution Margin % (C.M) ........................................................................................................ 50
III. Annual Break-even level............................................................................................................. 50
IV. Monthly Break-even Level ......................................................................................................... 50
5.7 PROFITABILITY RATIOS .............................................................................................................. 51
MAP AND BUSINESS LOCATION ....................................................................................................... 52
APPENDICES ........................................................................................................................................... 53

vii
NAME OF CANDIDATE: NICKSON OMONDI

INDEX NO:

INSTITUTION: NYS ENGINEERING INSTITUTE

EXECUTIVE SUMMARY
The business is owned by Nickson Omondi. The name of the business is Signal Antennas Shop.
It is located in Nairobi along Airport North Road Aligate Centre second floor room number
three.

The principal customer s of my business are the residents of Neema Apartments Embakasi and
those from Nyaso Esatate. The main competitors are the Spacelink Enterprises and Zuku Agent-
Pambazuko Distributors. The average monthly sales are Ksh. 8,722,800. The business will use
the following as methods of advertisement: signboards, posters, public addressers systems and
social media.

The owner of the business will perform the following main duties; delegation of duties and
settlement of bills. Apart form the monthly salary, there will systems also be an additional token
to the employees for work well done. This will be done as amotivation to them. The main
licenses required to operate the business include trade license, income tax public health
certificate business registration, PAYE, NHIF, pin certificate and certificate of goog conduct.

The business will start on 1st January 2025. The main machine and the equipment required are a
computer, calculator, tables, customer waiting bench, safe and CCTVs. Total average monthly
production operational cost is Ksh 37,101.83. my business is going to use online marketing as its
current technology in order to meet the needs of the customers.

The pre-operational cost is Ksh 209,520. Working capital requirement will be Ksh.52,992 and
total investment will be Ksh. 737,512. Proposed capitalization is Ksh. 737,512 and monthly
break ven level is Ksh.38.292.

NAME OF SUPERVISOR: ………………………………. SIGN: ............... DATE: ........……

HEAD OF DEPARTMENT: ………………………….…. SIGN: ............... DATE: ........…….

EXAMINATION OFFICER: ……………………………… SIGN: ............... DATE: ........……

viii
CHAPTER ONE

1.0 BUSINESS DISCRIPTION

1.1 The Owner/Sponsor

The business is owned by a 23-year-old male named Nickson Omondi. He is single. He was born
and raised in Busia County Butula sub county Agolla village.

In 2006, started his nursery education at Bukhalalire Primary school and did his Kenya
Certificate of Primary Education (K.C.P. E) in 2014.He later joined Bukhalalirel Boys High
school in 2015 and was a great foot baller during that time. He attained a mean grade of C after
doing his Kenya Certificate of Secondary Education (K.C.S.E) in the year 2018.

After high school he involved himself in small scale farming. This included planting and selling
of some of the farm products to the locals around their home. He did this in order to meet their
families’ daily needs.

In June 2019, he was recruited to join National Youth Service. He did his paramilitary training in
Gilgil training college for a period of six months. He attained medical skills in communication
health and self-defense at the end of the training.

In January 2020, he was taken for Nation Building in National Youth service Tana Basin Field
Unit. He was involved in farming activities and also securing the camp for a period of one and a
half years. He was also given responsibility of being in charge of his colleagues while
conducting the farm activities.

In May 2021, he was enrolled at National Youth Service Engineering Institute Nairobi as a first-
year student, for his Diploma course in Electrical and Electronic Engineering
[Telecommunication option]. At the end of the three-year course, he is expected to attain skills
electrical and electronic repair, signal transmission and network related work. On top of that the
owner will also be awarded a Certificate in Telecommunication Engineering.

1
1.2 BUSINESS NAME
The business name is Signal Antennas Shop. The owner chose the name because it is simple to
pronounce. The name is also related to the types of products sold in the Shop.

1.3 BUSINESS LOCATION AND ADRESS

The business is located in Nairobi along Airport North Road Airgate Center second floor room
number 3. The owner selected the location because it is around Taj Mall roundabout where a lot
of people interact during their daily activities. Due to proper road networks that is the Airport
North Road the area is easily accessed.

Postal Address 178 Nairobi, email address nicksonwalala@gmail.com, mobile number

0705206285

2
1.4 FORM OF BUSINESS OWNERSHIP
The business will be a sole proprietorship type. The owner chose this type of ownership because
it is simple, easy and does not require a lot of money for registration. With this type ownership,
the owner will be able to manage the business on his own hence maximize on the profit.

The owner will contribute Ksh 600,000 which is 80% of the total investment.

1.5 PRODUCTS/SRVICES
Signal antennas shop will be dealing with selling of antennas, android boxes, decoders and
dishes.

PRODUCTS BUYING PRICE SELLING PRICE

Antennas

1.Whipe monopole 1,200 1,800

2.Yagi 1,100 1,500

3.Dipole 1,199 1,700

4.Loop 3,200 5,000

5.Azam antenna 1,900 2,300

Android Boxes

1.MXQ PRO 3,200 4,799

2.X96 Android 5,400 7,130

3.H96 Max 4,300 6,500

4.XIOAMI MI Android Box 6,800 8,500

5.X88 PRO 10 5,800 7,500

3
Decoders

1.DStv 1,300 2,399

2.Startimes decoder 1,100 2,499

3.Gotv decoder 1,200 2,500

4.Sonar Free to Air HD 1,400 2,000

5.Astrovox VSR 9000 HD 1,800 2,900

6.Azam decoder 1,600 2,800

Dishes

1.Dstv 3,300 4,700

2.Zuku 2,300 3,500

3.Startimes 3,500 4,500

4.Gotv 2,890 3,700

Azam tv 3,800 4,600

TOTAL

4
5
6
7
 1.5 SALES TARGET

PRODUCTS & PRICE JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC TOTA
SERVICES L

WHIPE MONOPOL 1,800 10 20 22 21 19 20 18 17 15 0 12 20

YAGI 1,500 12 10 15 8 10 9 0 7 12 13 7 12

DIPOL 1,700 8 9 0 10 8 8 10 7 15 19 10 9

LOOP 5,000 5 10 12 9 13 7 12 8 0 12 8 7

AZAM 2,300 7 0 5 9 10 8 9 6 12 8 7 10

MXQ PRO 4,799 9 8 10 15 0 12 11 8 13 14 10 7

X96 ANDROID 7,130 8 10 12 13 15 0 8 7 9 10 9 8

H96 MAX 6,500 6 7 10 12 9 13 10 12 10 9 8 6

XIAOMI MI 8,500 5 8 9 0 10 15 12 9 12 5 9 7

X88 PRO 10 7,500 10 5 12 9 10 12 9 11 12 6 13 5

DSTV DECODER 2,399 9 10 13 15 12 10 9 7 10 9 9 0

STARTIMES 2,499 8 8 7 10 11 12 10 13 9 6 10 9
DECODER

GO TV DECODER 2,500 6 10 5 6 12 8 9 12 7 7 12 8

8
SONAR FREE TO 2,000 9 6 8 7 9 10 8 10 8 0 8 6
AIR

ASTROVOX VSR 2,900 8 7 10 5 12 9 10 9 6 8 9 7

900 0HD

AZAM 2,800 7 5 8 9 6 10 9 12 7 7 10 8
DECORDER

DSTV DISH 4,700 6 5 10 12 10 9 8 0 6 9 11 9

ZUKU DISH 3,500 4 8 9 5 12 8 7 10 8 9 12 7

STARTIMES DISH 4,500 9 7 12 10 8 10 9 12 7 8 0 6

GOTV DISH 3,700 7 10 0 5 8 9 8 7 9 5 12 11

AZAM TV 6,600 9 12 10 8 7 6 5 9 7 6 0 7

SALES INCOME 614,8814 667,44 805,730 733,95 818,9 800,36 768,91 747,38 751,83 667,4 728,14 617,824
7 0 27 6 0 2 8 71 1

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1.6 THE INDUSTRY
My business is in the telecommunications industry.

History of Origin
The industry of telecommunication began with the of smoke signals and drums in Africa, ASIA
and the America.in the 1790’s the first fixed semaphore systems emerged in Europe; however, it
was until in the 1830s that electrical communications system stated to appearing north America
and China, the smoke and drums were used often to announce the presence of a military camp.

In Rabbi Cal Judaism a signal was given by means of Kerchiefs of flags at intervals along the
way back to the high priest to indicate the goat for “Azazel” had been pushed from the cliff.
Homing Pigeons have occasionally been used throughout the history to by different cultures.
Pigeon’s post had Persian roots and was late rushed by the Romans to aid their military.

Greek hydraulic semaphore systems were used as early as the 4th century BC. He hydraulic
semaphores which worked with water filled vessels and visual signals functioned as optical
telegraphs. However, they could only utilize a very limited range of pre-determined messages
and as with all such optical telegraphs could only be deployed during visible conditions.

During the Middle Ages, Chains of Beacons Chains suffered the drawback that they could only
pass a signal bit of information, so the meaning of the message such as “the enemy has been
sighted” had to be agreed upon in advance. One notable instance of their use was during the
Spanish Armada, when a beacon chain relayed a signal from Plymouth to London that signaled
the arrival of the Spanish worships.

In 1774, the Swish physicist Gergel Lesages built an electronic telegraph consisting of a set of 24
conductive wires a few meters long connected to 24 elder balls suspended from a silk thread
(each wire corresponds to letter). The electrification of selected leads at the end of the line. The
sequency of selected letters leads to the writing and transmission of a message.

Frech Engineer Claud Chappe began on visual telegraphy in 1790, using pairs of “clocks” whose
hands pointed at different symbols. These did not prove quite viable at long distances and
Chappe revised h is model to use two sets of jointed wooden beams. Operators move d the beams
using cracks and wires.

10
He built his first telegraph line between Little and Paris, followed by a line from Strasbourg to
Paris. In 1794, a Swedish Engineer, Abraham Edelcratz built a quite different system from
Stockholm to Drottningholm. As opposed to Chappe’s system which involved pulleys rotating
beams of wood, Edelcrantz’s system relied only upon shutters and was therefore be faster.

However, semaphore as a communication system suffered from the need for skilled operators
and expensive towers often at intervals of only ten to thirty kilometers (six to nineteen miles). As
a result, the last commercial line was abandoned in 1880.

The submarine cable across the English Channels, wire coated in gutta parch, was laid in 1851.
The transatlantic cables installed in 1857 and 1858 only operated for a few days or weeks
(carried messages for a few days back and forth) between James Buchaman and Queen Victoria
before they failed. The project to lay a replacement line was delayed for five years by the
American Civil wars.

The first successful transatlantic telegraph cable was completed on 27th July 1866, allowing
continuous Transatlantic telecommunication for the first time. The electric telephone was
invented in the 1870’s based on earlier work with Harmonic (multi-signal) telegraphs. The first
commercial telephone services were set up in the year 1878 and 1879 on both sides of the
Atlantic in the cities of New Haven, Connecticut in the US and London, England in the UK.

Credit for the innovation of the electric telephone has been frequently disputed, and new
controversies over the issues have been from time to time. Telephone technology greatly quickly
after the first commercial services emerge, with intercity lines being built and telephone
exchanges in every major city of the United States by mid 1890s.no cable connection existed
until TAT-1 was inaugurated on September 25th,1956 36 telephone circuits.

In 1880.Bell and co-inventor Charles Summer Trainer conducted the world’s first wireless
telephone call via modulated light beams projected by photophones. The scientific principles of
their invention would not be utilized for several decades, when they were first deployed in
military and fiber-optic communications. The communications satellite Act was communications
officially passed in the years 1962, allowing telecommunications to finally go into space.

In 1964, fiber-optic telecommunications were introduced. Charles Kao and George Hochman
published aa paper that proved that fiber-optic communication could be possible as long as the

11
fibers used to transmit the information were free of impurities. This discovery reopened the door,
Alexander Graham Bell had first created with his photophone, allowing sound to be transmitted
Over beams of light.

In 1965, the first picturephone service began in trails. These phones were called “Mod 1”
picturephone sets, and in July of that year, union carbide corporation began trails for the first
picturephone network. I December of the same year, AT&T also began the same trails in some of
their networks. These picturephone sets were used for a very long time.

The year 1979 was a big leap forward for maritime communications. The international Maritime
Satellite organizations (INMARSAT) was established to provide communication for increased
safety and communication for sailors and passengers who needed to speak to someone on shore.
The first commercially automated cellular network was launched in Japan in 1981.

Historical development of telecommunication business in Kenya.

Before the Europeans came, Kenyans used to communicate using smoke signals and drums.
There was also the use of messengers who would travel on foot for the longer distances just to
deliver the information to other family members, who lived a bit far from them.

During the colonial times there was the use of letters. Through their letters, Kenyans debated
development policy, critiqued and actions of the new governing elite, and set out their hopes and
fear for independent rule. Furthermore, letter-writing also provided the opportunity for large
groups of writing also provided the opportunity for large groups of authors, often these without
sufficient literacy.

The internet first became available in Kenya during 1993. Full internet access was established
in1995 with Safaricom being the first telecommunication company. The former monopoly
operator, launched operations in 1993 based on an analogue ETACS network and was upgraded
to GSM in1996 (licensee awarded in 1999).

Currently, Kenya is much developed in the telecommunication industry by the use of Computers,
smartphones, laptops and also the availability of 5G network which is much faster and has
greatly impacted on the growth of the internet of things IoT. Artificial intelligence has also

12
played a more significant role in communication industry. Cloud computing has continued to
dominate the market with cloud BSS and billing platforms highly scalable to handle large data
volumes.

1.7 JUSTIFICATION OF OPPORTUNITY

As a business man I am determined that my business will succeed. This is because I have
knowledge and skills in telecommunication which will give me an advantage as I will be dealing
with antennas. I also have a business plan which will help me in the management of the business.

Having assessed the environment and the community around me, it was clear that information
travels rely faster and that the people needed to be updated on what’s happening where and
when. This rely encouraged me to enter into the telecommunication by buying and selling of
antennas, decoders and android boxes. This will help the community to be updated on the current
issues through the television.

Hardworking, self- determination, social to mention but a few are some of my personal attributes
that always keep me going. The availability of roads will help a big deal in ensuring that my
business succeeds. I also have the money to start and manage the business.

The community is going to benefit from the business since it’s going to create jobs for computer
technicians, telecommunication technicians who will be well paid and on time. This money will
help them to be able to manage their families and hence improve their living standards.

1.8 GOALS AND OBJECTIVES

1. To be self employed

2. Achieve financial stability

3. Appropriate delegation of responsibility

4. Increased market dominance

5. Be a millionaire at 28

13
1.9 ENTRY AND GROUTH SRATEGY
I order for my business to grow and be able to have as many customers as possible just as it
starts. I’ll be offering free installation services for those who will buy the antennas and dishes.
There will also be a starting discount for my customers.

Social media is another strategy that I’ll be using to ensure that I make my business known
through online advertisement of my products and services. I will also reduce customer wait to
one minute so that they are served on time. By so doing my business is going to have as many
customers as possible thus enhancing its growth.

14
 CHAPTER TWO
2.0 MARKETING PLAN

2.1 POTENTIAL CUSTOMERS

The business expects to have the following as its principal customers.

1. Residents of Neema Apartments Embakasi

2. East Africa School of Aviation.
3. Residents of Nyaso Eastates Embakasi.
4. GSU Officers from the GSU Training school.
5. G4S Security officers.

Most residents of Neema Apartments Embakasi are expected to buy the DSTV Dishes, Zuku
Dishes, Star TIMES Dishes and the Azam dish. This is because of the available space on top of
the apartment where the dishes can b easily installed. The apartment also has a lot of children
who would really require to watch a lot of kid’s content and entertainment while at homer and
this can only be achieved through the installation of DSTVs.

East Africa School of Aviation is one of my principal customers, this is because of the great
number of young students who stay from around the area. The student are expected to buy the
android box so that they can keep on being connected to daily events that happens globally. This
is because the android boxes contain additional channels that are very much educative and can
help them a lot during there research activities.

Nyaso Estate can also not be left behind in terms of offering principles customers to my
business. The area is well known since most of the people who stay there are employees of
different companies, lectures, teachers, who are well paid and therefore they can afford to buy
the antennas, android boxes, decoders and dishes. The form of payment will be by instalments
since they are guaranteed a monthly salary and therefore to them it will be very easy to use this
form of payment.

Dipole antennas are well known for creating powerful signal in restricted space. GSU Officers
from the GSU Training school are expected to be buying these dipole antennas to be used in

15
sending of radio messages within the camp. This will help them to convey and receive
information at the required range of frequency.

The area also has the G4S security officers who are mostly aged between 28-35 years. They
also have their families staying around with them. Most of the security officers use the walkie-
talkies for their communication around their company and within the areas that they are offering
security services, they will be buying the whip antennas to be use din the walkie-talkies in large
quantities.

2.2C0MPETITION
2.2.1 Competitors
The business expects to have stiff competition from the following existing businesses.

1. Zuku Agent Pambazuko Distributers

2. Nairobi TV Remote Control Dealer

3. Space link Enterprises

4. DSTV Installation Kasarani

5. DSTV Kenya limited

ZUKU Agent Pambazuko Distributers is located along Kangundo Road, 1km from my shop.
This is going to give me a stiff competition since it’s also selling Zuku, the business has been in
existence for five years now giving it a long-time experience when it comes to dealing with Zuku
dishes. The business is quite small compared with mine with one owner and two personnel.

STRENGTHS
1. Works 24hrs a day

2. Good time management

3. Excellent productivity

16
WEAKNESSES
1. Not located at a centralized place

2. Poor management strategy

3. Lazy employees

4. Customer relationship is poor

My shop also expects average competition from Nairobi TV Control dealer located along
Acra Road, 3.5km from my shop. The shop is owned by one person and it has been in existence
for four years now, having based on one product only that is remote selling is not going to give
my business challenge since I have a wide variety of products related with the same thus giving
me an added advantage over the shop.

SRENGTHS

1. Good management strategy

2. Proper delegation of responsibility

3. Time management is good

WEAKNESS

1. Based on one product

2. Untrusted salesmen

3. Financial visibility is poor

Spacelink Enterprises located 5.3km from my shop, Beams Plaza behind Shell Petrol Station
along Mwiki Road is another shop that I expect to have stiff competition from. The enterprise

17
deals with buying and installation of DSTV. The installation part gives it an added advantage to
have as many customers as possible.

STRENGTHS

1. Excellent efficiency

2. Ability to scale sustainably

3. High adaptability

WEAKNESSES

1. Poor business strategy

2. Weak financial visibility

3. Time management is poor.

Competition is also expected from DSTV installation shop Kasarani. The shop is owned by
one person and located 4.5km from my shop, the business has been in existence for seven years
now. Apart from the DSTV and the installation services, the other products include the CCtvs
and TV mounting services giving it an added advantage over my shop.

STRENGTHS

1. Strong innovative enterprise culture

2. Speed to market

3. Diversification of services

18
 WEAKNESSES

1. in ability to delegate

2. Self-criticism among the sales personnel

3. Poor market visibility

DSTV Kenya Limited Multichoice Head office 2nd floor, Sarit Center, Karuna Road
Westland’s, Nairobi being near the Nairobi CBD is going to give me a stiff competition. Being
the DSTV Head Office most people will be going there for customer services and its central
location in town will be able to capture as many DSTV customers as possible. It also provides
online marketing through online platforms such as the sokoplus.co.ke.

STRENGTHS

1. Excellent efficiency and productivity

2. Customer services that create raving

3. Sustainable scaling

4. Proper delegation of responsibility

WEAKNESSES

1. Low aesthetic appeal

2. Long customer waiting time

3. Has a lot of lazy employees

2.22 COPING WITH COMPETITION

In order to cope with competition my business is going to apply the following methods.

a) Offering instalment payment plans for my customers

b) Increase my online visibility in terms of advertisement of my products and services
c) Creating a comfortable working environment for my sales personnel and customers
19
d) Proper time keeping in terms of opening and closing of my shop.

2.3 PRICING STRATEGY

The business will use the following methods to determine the price of its products /

Services.

1. Cost of production

2. Competitor price

3. Quality of production

4. Location of the business

5. Government taxes

PRICE LIST (see 1.5)

20
 2.4 SALES TARGET TABLE

PRODUCTS PRICE JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC TOTAL
AND
SERVICES

WHIPE 1,800 10 20 22 21 19 20 18 17 15 0 12 20
MONOPOL

YAGI 1,500 12 10 15 8 10 9 0 7 12 13 7 12

DIPOL 1,700 8 9 0 10 8 8 10 7 15 19 10 9

LOOP 5,000 5 10 12 9 13 7 12 8 0 12 8 7

AZAM 2,300 7 0 5 9 10 8 9 6 12 8 7 10

MXQ PRO 4,799 9 8 10 15 0 12 11 8 13 14 10 7

X96 7,130 8 10 12 13 15 0 8 7 9 10 9 8
ANDROID

H96 MAX 6,500 6 7 10 12 9 13 10 12 10 9 8 6

XIAOMI MI 8,500 5 8 9 0 10 15 12 9 12 5 9 7

X88 PRO 10 7,500 10 5 12 9 10 12 9 11 12 6 13 5

DSTV 2,399 9 10 13 15 12 10 9 7 10 9 9 0
DECODER

STARTIMES 2,499 8 8 7 10 11 12 10 13 9 6 10 9
DECODER

21
GO TV 2,500 6 10 5 6 12 8 9 12 7 7 12 8
DECODER

SONAR 2,000 9 6 8 7 9 10 8 10 8 0 8 6
FREE TO
AIR

ASTROVOX 2,900 8 7 10 5 12 9 10 9 6 8 9 7
VSR 900
0HD

AZAM 2,800 7 5 8 9 6 10 9 12 7 7 10 8
DECORDER

DSTV DISH 4,700 6 5 10 12 10 9 8 0 6 9 11 9

ZUKU DISH 3,500 4 8 9 5 12 8 7 10 8 9 12 7

STARTIMES 4,500 9 7 12 10 8 10 9 12 7 8 0 6
DISH

GOTV DISH 3,700 7 10 0 5 8 9 8 7 9 5 12 11

AZAM TV 6,600 9 12 10 8 7 6 5 9 7 6 0 7

SALES 614,8814 667,447 805,730 733,950 818,927 800,366 768,910 747,382 751,838 667,471 728,141 617,824
INCOME

22
2.5 MARKET SIZE AND MARKET SHARE
My market size is going to cover a wide geographical area. This includes specifically the
Embakasi East Sub- County, Nyaso Estate Embakasi, Neema Apartments, GSU Training School
and the East African School of Aviation. I will be distributing my products specifically to these
areas because this is where my customers will be coming from.

In the first one month of the business operation, I am expecting approximately 163 customers. A
2% market share is an approximation of what I intended to get in the first month of operation.
My peak and low sales periods are in the month of May and January respectively.

2.6 SALESS TACTICS

Selling directly to customers is a method that my business is going to employ. In order to
motivate my sales personnel, I will ensure that they are all paid and on time, there will also be a
bonus for a job well done at the end of the month, food will also be available at the work place
keep them going during the day. The sales personnel will be highly motivated by this and
therefore will always work to their level best in order for the shop to achieve its goals.

2.7 ADVERTISING SND PROMOTION STRATEGY

My business is going to use the following methods in advertisement of its products and services.

Signboard
In the first month I will advertise my shop using a metal signboard which will be place along the
Airport North Road near Tajmall Roundabout. The signboard will contain the name of the shop
written in bold, the products and services offered and their prices, the distance from the main
road to the shop and an arow showing the direction of the shop. The cost of the signboard will be
Ksh 1500.

Posters
I will also be using posters containing the name of the shop, products and services offered and at
what price, the location of the shop and the name of the owner. The posters will be written in

23
black and white and in bold for them to be easily seen. They will be distributed mostly on
Mondays in the evening amongst the residents of Embakasi East and the estates surrounding
them. 700 posters will be will be produced @Ksh 5 in the first one month giving a total of 3500.

public address system

A public address system comprising of one speaker at a cost of Ksh 2500, will be used to
advertise my products and services on daily basis. The speaker will be placed in front of the of
the shop next to the main entrance of my shop so as to capture the attention of many customers
as possible. The voice of the advert will be minimized so as not to interfere with other businesses
around my shop.

Social media
Given that the technology has now advanced and most people are using mobile phones for
communication, I will be using the social media to advertise my products and services. This will
be done mostly on Facebook and Instagram. The cost of advertisement using social media will be
Ksh 1000 in the first month.

2.8 DISTRIBUTION STRATEGY

When a customer approaches my shop, he will be greeted and welcomed by the shop attendant,
he will be introduced to some of the products and services that we offer in the shop. If the
customer shows interest in what we offer, he will be shown round the shop for him to choose the
exact products that he wants. Payment will be done on my desk where I will have a little time to
chart with my customer and appreciate him for choosing my products and services and ask him
to come back again anytime.

Despite having a good distribution strategy for my customers there are also some problems that I
anticipate to occur this includes, misunderstanding between the customer and the shop attendant

24
over the price of a certain product. This might bring a lot of chaos in the shop and I might end up
losing my customers, there could also be some damages like breakage of products during
packaging. To solve all these problems as a manager, I should be at the shop at all times and
have a close monitor of what is happening between the customer and my employees.

2.9 CUSTOMER SERVICE

My shop will use the following methods to ensure that I retain my customers that is ensuring
consistency in the supply of my products, being honest with my customers, reducing wait time to
one minute and observing the schedule time for opening and closing of the shop.

25
CHAPTER THREE

3.0 ORGANIZATION PLAN

3.1 ORGANIZATION STRUCTURE

OWNER \MANAGER

SHOP ATTENDANT

3.2 KEY PERSONNEL (MANAGEMENT TEAM)

a) Owner /Manager
The owner should be a Kenyan citizen aged between 23-25 years. Computer literate with a
Diploma in Telecommunication Engineering. He should also be able to delegate responsibilities
appropriately, self-determined and hardworking.

DUTIES AND RESPOSIBILITIES

1. Deal with customer complain

2. Delegation of responsibilities

3. Ensure the requested products are available on time

4. Account for the shops progress

26
5Responsible for payment of his shop attendant

6. Settling of bills

7. Appreciation of the customer

3.3 OTHER PERSONNEL

a) Shop attendant

The shop attendant should be a Kenyan citizen aged between 23-25 years. Should have a
certificate in Telecommunication Engineering and two years working experience. The attendant
should be responsible and hardworking well-spoken as well.

DUTIES AND RESPONSIBILITIES

1. Receiving of the customer

2. Arranging of the products on the shelf

3. Cleaning of the shop

4. Receiving of money on behalf of the manager when need will be

5. Opening and closing of the shop at the schedule time

6. Showing the customer round the shop

3.4 RECRUITMENT TRAINING AND PROMOTION

a) RECRUITMENT
The business is going to source its employees from graduated students from various institutions.
They will be recruited through a practical interview.

27
TRAINING
Owner/Manager
In order to better my entrepreneurship as a manager, I will attend business seminars within
Nairobi in order to gain more experience on the same. Since I already have a Diploma in
Telecommunication Engineering, I will only undergo a business training in management.

2) New Employees
The new employees will undergo orientation once they have been recruited. During orientation
the employees will be trained on handling of different products offered in the shop, ways of
dealing with customers and safety rules and regulations while in the shop.

Promotion
The business is going to use the following methods to promote its employees. There will be an
annual salary which will be paid on time, assignment of challenging and more responsible jobs
and on top of this there will be minimum supervision.

3.5 RENUMARATION AND INSENTIVES

POSITION Ksh PER MONTH

Owner/Manager 32,000

Shop Attendant 12,000

TOTAL 44,000

28
b) Incentive’s
In order to motivate employees, the business is going to;

1. Give salary in advance

2. Ensure responsibilities will be fairly distributed

3. Issue protective clothing to its employees.

3.6 LICENCESS AND PERMITS

LICENCE PERMITS INSTITUTION FEES/CHARGES
Business registration Registrar of business 950
Trade license Nairobi county 5,00
government
Public health certificate WHO 650
Environment regulation NEEMA 3,000
PAYE PAYE 200
NSSF NSSF 200
NHIF NHIF 500
Pin certificate Registrar of companies 10,000
Good conduct Huduma center 1,500
VAT/taxes KRA 5,000
Others N/A

29
3.7 SURPORT SERVICES

SERVICE INSTITUTION

Banking NCBA

Water NCWSC

Electricity KPLC

Telephone SAFARICOM AND AIRTEL

Internet SAFARICOM

Raw material DST-TV & GO-TV

Repair and maintenance LIONET

Security G4S

Media KENYATA NATIONAL HOSPITAL

Lawyer MMS ADVOCATES

30
 CHAPTER FOUR

4.0 PRODUCTION / OPERATIONAL PLAN

4.1 PRODUCTION / OPERATIONAL FACILITIES AND CAPACITY

4.1 a) MACHINES, TOOLS AND EQUIPMENTS

QUANTITY ITEM DESCRIPTION SUPLIER UNIT COST TOTAL COST

Office layout and Office partition and 30,000 30,000

partitioning Fit outs Ltd

Machine And Equipment

1 Computer Arctic Computer 24,000 24,000

store

2 Phone Mobile Hub Kenya 12,500 25,000

1 CCTV Glantix Solutions 3,000 3,000

1 Ammeter Flowmatic Ltd 2,000 2,000

1 Voltmeter Shop Metrix 2,300 2,300

2 Extension Shop Metrix 1,500 3,000

1 Tester Flowmatic Ltd 400 400

2 Phone Charger Mobile Hub Kenya 1,500 3000

1 Speaker Sound Plus Company 6,500 6,500

1 HD TV TV Dealer Kenya 10,500 10,500

1 Remote Control TV Dealer Kenya 1,500 1,500

1 Amplifier Voltage sounds 2,500 2,500

31
1 Calculator Optimistic General 1,200 1,200

1 Digital Meter Flowmatic Ltd 4,500 4,500

1 PC Power cable TDK Solution Ltd 700 700

1 Dater transfer cable TDK Solution Ltd 300 300

1 Flash Drive TDK Solution Ltd 1000 1000

FUNITURE

1 Computer desk Tangerine Furniture 12,000 12,000

1 Executive desks Tangerine Furniture 7,000 7,000

1 Filing cabinet Tangerine Furniture 12,000 12,000

1 Ordinary table Tangerine Furniture 3,000 3,000

1 Stool Tangerine Furniture 2,000 2,000

2 Customer bench Tangerine Furniture 2,000 4,000

1 Executive desk Tangerine Furniture 16,000 16,000

1 Safe TDK Solutions 25,000 25,000

OFFICE PANTRIES

1 Water dispenser Alpine cooler Ltd 3,000 3,000

2 Water glass East Africa glass 100 200

Mart Ltd

2 Serving plate Oshwal wholesalers 150 300

2 Table spoon Jumia Kenya 50 100

1 Pantry table Tangerine furniture 1,500 1,500

STATIONERIES

32
10 Paper clips Office mart Ltd 10 100

1 Stapler Office mart Ltd 250 250

1 Rubber Stamp Office mart Ltd 200 200

1 Tape dispenser Office mart Ltd 150 150

2 Marker pen Office mart Ltd 200 200

3 Ballpoint pen Office mart Ltd 30 90

1 Pencil sharpener Office mart Ltd 30 30

1 Scissors Office mart Ltd 50 50

1 Wastebasket Office mart Ltd 150 150

2 Spring file Office mart Ltd 100 200

2 Note book Office mart Ltd 150 300

2 Pencil Office mart Ltd 25 50

1 Glue Office mart Ltd 50 50

TOTAL 209,520

33
4.1(b) Raw Material for the 1st Month

QUANTITY RAW MATERIAL UNIT COST TOTAL COST

10 Whip monopole 1,200 12,000

12 Yagi 1,100 13,200

8 Dipole 1,199 9,512

6 Loop 3,200 19,200

7 Azam antenna 1,900 13,300

9 MXQ PRO 3,200 28,800

8 X96 Android 5,400 43,200

6 H96 Max 4,300 25,800

5 XIAOMI MI Android 6,800 34,000

10 X88 decoder 5,800 58,000

9 DSTV decoder 1,300 11,700

8 Star times decoder 1,100 8,800

6 Gotv decoder 1,200 7,200

9 Sonar free to air HD 1,400 12,600

8 Astrovax VSR 9000 HD 1,800 14,400

7 Azam decoder 1,600 11,200

6 DSTV dish 3,300 19,800

4 Zuku dish 2,300 9,200

10 Star times dish 3,500 35,000

34
 7 Gotv dish 2,890 20,230

10 Azam tv 3,800 38,000

TOTAL 445,222

4.1 (c) Operating Expenses

EXPENSES AMOUNT (Ksh)

Rent 5,000

Salary and wages 44,000

Water 3,000

Electricity 2,500

Telephone 2,000

Advertisement 8,500

Stationary 2,020

Licensing 2,250

Repair and maintenance 7,000

Office expenses 4,000

Insurance 1,000

Security

Transport 1,500

Loan repayment

TOTAL 82,770

35
4.2 Production / Operations Design and Development

4.2 (a) Office / Premises Layout

SMALL
EXECUTIVE

OFFICE
DESK

PANTRY STORE

COMPUTER
DESK SAFE
CUSTOMER BENCH

SHELF

SHELF
CUSTOMER BENCH

SHELF

SHELF SHELF SHELF SHELF

36
4.2 (b) Product Design and Development
As a manager I will be the one in charge of design and services. In any business personal touch is
very key and because of this I will always make sure that I spend as much time as possible with
my customers. This will ensure that they are satisfied anytime they visit my shop hence the
uniqueuness of my products and services will be realized.

I am going to buy my products from Multichoice Limited Company here in Nairobi. This
includes the Dstv, Gotv and android boxes. The Company is currently using digital satellite
technology to make sure they have as many TV packages as possible which can be upgraded
online at the comfort of the customer’s home. In the coming future I intend to offer installation
services to my customers.

4.2 (C) Quality Control

4.3 PRODUCTION/OPERATION STRATEGY
4.3 (g) Average Monthly Production/Operation cost

Average Monthly Production cost =445.222÷12 = 37,101.83

Average Monthly Labor =32,000+12,000 = 44,000

Average Monthly Operation expenses = 82,770 - 44,000 = 38,770

4.3 (b) Average Monthly Production Capacity

On average per month the total sales income is Ksh 8,722,800.

4.4 PRODUCTION/OPERATION PROCESS

When a customer approaches my shop, he will be greeted and welcomed by the shop attendant.
He will be introduced to some of the products and services that we offer in the shop. If the
customer shows interest in what we offer, he will be shown round the shop for him to choose the
exact product that he wants.

37
In order to meet customer’s satisfaction, the product will be tested to ensure that it is working
properly. Payment will be done on my desk where I will have a little time to chat with my
customer and appreciate him for choosing my products and services and request him to come
back again anytime. Finally, the shop attendant will pack the product for the customer.

4.5 Regulations affecting production/operation

The owner of the business will comply with National Government and County Government rules
and regulation act, licensing act, public health act, health and safety act, employment act,
environmental regulation, compulsory salary reduction and others.

38
 CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 PREOPERATIONAL COST

QUANTITY ITEM DESCRIPTION UNIT COST TOTAL COST

Office layout and 30,000 30,000

partitioning

MACHINE AND
EQUIPMENTS

Computer
1 24,000 24000
Phone
2 12,500 25000
CCT
1 3000
Ammeter
1 2000
Voltmeter
1 2300
Extension
2 3000
Tester
1 400
Phone charger
2 3000
Speaker
1 6500
Hd TV
1 10500
Remote controller
1 1500
Amplifier
1 2500
Calculator
1 1200
Digital meter
1 4500
P.C Power cable

39
1 Data transfer cable 700

1 Flash drive 300

1 1000

40
 FURNITURE

1 Computer desk 12000 12000

1 Executive chair 7000 7000

1 Filling cabinet 12000 12000

1 Ordinary table 3000 3000

1 Stool 2000 2000

2 Customer bench 2000 4000

1 Executive desk 16000 16000

1 Safe 25000 25000

OFFICE PANTRIES

1 Water dispenser

2 Water glass

2 Serving plate

2 Table spoon

1 Pantry table

41
 STATIONARIES

10 Paper clips 10 100

1 Stapler 250 250

1 Rubber stamp 200 200

1 Tape dispenser 150 150

2 Marker pen 200 400

3 Ballpoint pen 30 90

2 Pencil 25 50

1 Glue 50 50

1 Pencil sharpener 30 30

1 Scissors 50 50

1 Waste basket 150 150

2 Spring file 100 200

2 Note book 150 300

TOTAL 209,520

42
5.2 WORKING CAPITAL REQUIREMENT
QUANTITY UNIT COST TOTAL COST

10 Whip Monopole 1200 12000

12 Yagi 1100 13200

8 Dipole 1199 9592

6 Loop 3200 19200

7 Azam antenna 1900 13300

9 MXQ PRO 3200 28800

8 X96 Android 5400 43200

6 H96 Max 4300 25800

5 XIAOMI MI android 6800 34000

10 X88 PRO 10 5800 58000

9 Dstv decoder 1300 11700

6 Gotv decoder 1200 7200

9 Sonar Free to air HD 1400 12600

8 Astrovax VSR 9000 HD 1800 14400

6 Dstv dish 3300 19800

4 Zuku dish 2300 9200

7 Gotv dish 2890 20230

10 Azam tv 3800 38000

8 Star times decoder 1100 8800

7 Azam decoder 1600 11200

43
10 Star times dish 3500 35.000

Rent 5000 5000

Salary and Wages 44000 44000

Water 3000 3000

Electricity 2500 2500

Telephone 2000 2000

Advertisement 8500 8500

Stationary 2020 2020

Licensing 400 2250

Repair and maintenance 100 7000

Office expenses 1,500

Insurance 4,000

Security 1,000

Trough expense

Loan repayment 1500

527,992

TOTAL

44
 5.3.1 PROJECTED CASH FLOW STATEMENT FOR THE FIRST YEAR

JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL

Cash in
flow

Beginning 527,992 614,814 716,649 854,056 973,332 1,112,663 1,246,203 1,372,547 1,494,65 1,615,400 1,795,852 1,909,33 1,993,275
cash 8 8

Cash in 614,814 667,447 805,730 733,950 818,927 800,366 768,910 747,382 751,838 667,471 728,141 617,824 8,722,800
flow(sales)

Total cash 1,142,806 1,282,261 1,522,379 1,588,006 1,792,259 1,913,029 2,015,113 2,119,929 2,246,49 2,282,871 2,523,993 2,527,21 22,956,354
inflow 6 2

Cash ___ ___ ___ ____ ____ ___ ___ ___ ___ ___ ___ ___ ___
outflow

Raw 445,222 485,292 587,203 534,354 598,476 586,506 563,046 546,155 551,576 407,903 535,085 454,821 6,378,638
materials

Rent 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

Salary 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 528,000
wages

Stationery 2,020 2,120 2,220 2,100 2,020 1,920 2,020 1,920 2,020 1,920 2,020 1,920 24,640

Telephone 2,000 2,120 2,200 2,100 2,200 2,100 2,000 ,1999 2,000 1,999 2,000 1,999 24,697

45
Advertise 8,500 8,600 8,700 8,600 8,500 8,400 8,500 8,400 8,500 8,400 8,500 8,400 102,400
ment

Water 3,000 3,100 3,200 3,100 3,200 3,100 3,200 3,000 2,999 3,100 3,000 2,999 36,697

Transport 1,500 1,600 1,700 1,600 1,500 1,400 1,500 1,400 1,500 1,400 1,500 1,400 18,400

Licenses 2,250 __ __ ___ ___ ___ ___ ___ ___ ___ ____ ____ 2,250

Insurance 1,000 __ __ __ __ __ __ __ __ __ __ __ 1,000

Electricity 2,500 2,600 2,700 2,600 2,700 2,600 2,500 2,400 2,500 2,400 2,500 2,400 30,000

Office 4,000 4,100 4,200 4,100 4,200 4,100 4,000 3,999 4,000 3,999 4,000 3,999 48,697
expenses

Repair&m 7,000 7,100 7,200 7,100 7,200 7,1000 7,200 7,100 6,999 7,000 6,999 6,999 84,697
aintainanc
e

Loan ___ ___ ___ 1,910 1,910 1,910 1,910 1,910 1,910 1,910 1,910 1,910 17,190
repayment

Total cash 527,992 565,612 668,323 614,674 679,596 666,826 642,566 625,271 631,096 487,019 614,605 533,937 7,257,517
outflow

Net cash 614,814 716,649 854,056 973,332 1,112,663 1,246,203 1,372,547 1,494,658 1,615,40 1,795,852 1,909,388 1,993,27 15,698,837
0 5

46
 5.4.1 PROFORMA INCOME STATEMENT FOR THE FIRST THREE YEARS
JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL

Sales 614,814 667,447 805,730 733,950 818,927 800,366 768,910 747,382 751,838 667,471 728,141 617,824 8,722,800

Purchase 445,222 485,292 587,203 534,354 598,476 586,506 563,046 546,155 551,576 407,903 535,085 454,821 6,295,639

Gross 169,592 182,155 218,527 199,596 220,451 213,860 205,864 201,227 200,262 259,568 193,056 163,003 2,427,161
profit

Expenses ___ ____ ____ ____ ____ ____ ____ ____ ____ ____ _____ _____ ______

Rent 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

Salary 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 528,000
wages

Stationery 2,020 2,120 2,220 2,120 2,220 2,120 2,020 1,920 2,020 1,920 2,020 1,920 24,697

Telephone 2,000 2,100 2,200 2,100 2,200 2,100 2,020 1,920 2,020 1,920 2,020 1,920 24,640

Water 3,000 3,100 3,200 3,100 3,200 3,100 3,000 2,999 3,000 2,999 3,000 2,999 36,697

Advertise 8,500 8,600 8,700 8,600 8,700 8,600 8,500 8,400 8,500 8,400 8,500 8,400 102,400
ment

Transport 1,500 1,600 1,700 1,600 1,700 1,600 1,500 1,400 1,500 1,400 1,500 1,400 18,400

Licenses 2,250 ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ 2,250

Insurance 1,000 ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ 1,000

Electricity 2,500 2,600 2,700 2,600 2,700 2,600 2,500 2,400 2,500 2,400 2,500 2,400 30,400

47
Office 4,000 4,100 4,200 4,100 4,200 4,100 4,000 3,999 4,000 3,999 4,000 3,999 48,697
expenses

Repair& 7,000 7,100 7,200 7,100 7,200 7,100 7,000 6,999 7,000 6,999 7,000 6,999 84,697

maintenan
ce

Loan ____ ____ ____ 1,910 1,910 1,910 1,910 1,910 1,910 1,910 1,910 1,910 17,190
repayment

Total 82,770 80,320 81,120 80,320 83,030 80,320 79,520 79,116 79,520 79,116 79,520 76,116 960,788
expenses

Net profit 86,822 101,835 137,407 119,276 137,421 133,540 126,344 122,111 120,742 180,452 113,536 86,887 1,466,363
before tax

Provision 146,636 146,636

for tax
(10%)

Net profit 1,319,727 1,319,727

after tax

48
 5.5.1 PROFORMA BALANCE SHEET AS AT 1ST JANUARY 2025
Dr Cr
ASSETS LIABILITIES
Fixed assets Owners’ equity 600,000
Machine, Tools & Equipment 209,520 Loan 137,512

Current assets 527,992

737,512 737,512

5.5.2 PROFORMA BALANCE SHEET AS AT 30TH DECEMBER 2025

Dr Cr

ASSETS LIABILITIES

Fixed assets Owners’ equity 600,000

Machine, Tools & Equipment 188,568 Loan 120,322

Cash 1,993,275 Provision for tax 146,636

Stock 454,821 Creditors 1,769,706

2,636,662 2,636,662

49
 5.6 BREAK EVEN LEVEL
I. Total Contribution Margin (TCM) = Total sales –Total variable cost
8,722,800-370,628
=8,352,172

II. Contribution Margin % (C.M) =TCM/Total sales*100

8,352,172/8,722,800*100
=95.75%

III. Annual Break-even level =Total fixed cost/C.M

588,000/95.75%
=6140.99

IV. Monthly Break-even Level =6140.99/12

= 511.749

50
 5.7 PROFITABILITY RATIOS
a. Return on investments
Net profit after tax/Total investments*100
1,319,727/737,512*100
=178.9%

b. Return on equity
Net profit after tax/Equity*100
1,319,727/600,000*100
=2.19%
=2.2%

5.8 DESIRED FINANCING

Pre- Operational cost=209,520 +

Working capital=527,992
TOTAL INVESTMENTS=737,512

5.9 PROPOSED CAPITALISATION

Owners Equity=600,000 +
Loan =137,512

Total Capitalization=737,512

51
MAP AND BUSINESS LOCATION

TAJMALL RAILWAY STAGE

Tajmalll
round
aboutout

G4S SECURITY
SIGNAL
SERVICES
ANTENNAS
EMBAKASI
SHOP

G4S
WAREHOUSE

52
 APPENDICES

a) curriculum vitae (CV).

b) certificate of good conduct.
c) Single business.
d) NSSF.
e) NHIF.
f) NEEMA.

53
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56
57
58
59