BUSINESS PLAN

DALA COMPUTER TRAINNING CENTRE

P.O.BOX: 20229 NAIROBI

PRESENTER: LYNET AKINYI AYIECHO

INDEX NO:

CENTRE CODE: RAMOGI INSTITUTE OF ADVANCED

TECHNOLOGY

PRESENTED TO: KENYA NATIONAL EXAMINATION

COUNCIL

EXAM SERIES: JULY 2024 SERIES

SUPERVISOR: MR. OTENDE PHILIP

COURSE: INFORMATION COMMUNICATION TECHNOLOGY

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DEDICATION

I sincerely dedicate this project to My Supervisor and my beloved mother for their patiently
enduring and appreciating for the long period it took me to finalize this business plan.

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DECLARATION

I LYNET AKINYI hereby declare that this Business plan presented to the Kenya National
Examination Council is my original work. For more research contact my supervisor Philip
Otiende for your more clarification and information. The proposed Business plan has never been
presented by anyone for academic qualifications.

NAME: LYNET AKINYI

SIGN: .................................................................

DATE: ................................................................

NAME OF THE SUPERVISOR: MR. OTIENDE PHILIP

SIGN: .....................................................................

DATE: .....................................................................

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ACKNOWLEDGEMENT

I would sincerely like to express my gratitude to people who supported me either directly or
indirectly. Special thanks to Ramogi Institute of Advanced Technology Administration and my
lecture Mr. Otiende Philip for her guidance.

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Contents
CHAPTER ONE..............................................................................................................................................6
1.0 EXUCUTIVE SUMMURY..........................................................................................................................6
1.2 THE MARKETING....................................................................................................................................6
1.3 ORGANIZATIONAL MANAGEMENT PLAN...............................................................................................6
1.4 PRODUCTION AND OPERSTION.............................................................................................................7
1.5 FINACIAL PLAN.......................................................................................................................................7
OVERAL SCHEDULE......................................................................................................................................7
CHAPTER TWO.............................................................................................................................................9
BUSINESS DESCRIPTION...............................................................................................................................9
THE SPONSOR..............................................................................................................................................9
THE BUSINESS..............................................................................................................................................9
THE INDUSTRY...........................................................................................................................................10
BUSINESS OBJECTIVE.................................................................................................................................10
THE PROJECT.............................................................................................................................................10
ENTRY AND GROWTH STRATEGIES............................................................................................................10
CHAPTER THREE........................................................................................................................................11
MARKETING PLAN.....................................................................................................................................11
THE CUSTOMER.........................................................................................................................................11
COMPETITION............................................................................................................................................11
PRICING STRATEGY....................................................................................................................................12
SALES TACTICS...........................................................................................................................................12
PROMOTIONAL STRATEGY.........................................................................................................................12
PLACE DISTRIBUTION STRATEGY...............................................................................................................13
CHAPTER FOUR..........................................................................................................................................14
ORGANISATION AND MANAGEMENT PLAN..............................................................................................14
MANAGEMENT TEAM................................................................................................................................14
DUTIES OF MANAGER................................................................................................................................15
THE MANAGEMENT...................................................................................................................................15
STAFFING AND OTHER MEMBERS.............................................................................................................17
LEGAL REQUIREMENTS..............................................................................................................................18

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PROFFESSIONAL ADVISORY AND SUPPORT SERVICES...............................................................................19
CHAPTER FIVE............................................................................................................................................19
OPERATION AND THE PRODUCTION PLAN................................................................................................19
PLANT FACILITY AND EQUIPMENT.............................................................................................................19
PRODUCTION SRATERGY...........................................................................................................................22
5.3 PRODUCTION PROCESS.....................................................................................................................22
REGULATONS AFFECTING OPERATIONS....................................................................................................22
FINANCIAL PLAN........................................................................................................................................23
PRE- OPERATIONAL COST..........................................................................................................................23
CASH FLOW STATEMENT...........................................................................................................................24
WORKING CAPITAL AND OPERATION COST...............................................................................................26
PRO-FPRMA INCOME STATEMENT (PROFIT AND LOSS)............................................................................27
PRO-FORMA BALANCE SHEET....................................................................................................................29
BALANCE SHEET.........................................................................................................................................29
BREAK-EVEN LEVEL....................................................................................................................................30
Calculate break-even level.........................................................................................................................30
DISIRED FINANCING...................................................................................................................................32
PROPOSED CAPITALISATION......................................................................................................................32

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CHAPTER ONE

1.0 EXUCUTIVE SUMMURY

1.1 BUSINESS DESCRIPTION

The business named DALA COMPUTER TRAINING CENTRE is an industry dealing with
training of the learners. The business will be required to operate under sole proprietorship. It is
located in Kisumu Town near Kisumu International Airport. The Company has created business
opportunities to individuals with working and non-working classes within the estate.

The mission for starting up this business is to create employment to the people around and
outside the Kisumu county. The business is meant to serve and satisfy customers at accessible
and affordable price. The main purpose of the business is to provide good quality of learned
people in Information Communication Technology.

1.2 THE MARKETING

Our main targets are youths and people living around that Business enterprise. The business will
students who will be arising from different places with the aim of learning the computer at a very
affordable price.

1.3 ORGANIZATIONAL MANAGEMENT PLAN.

The business owner will be the manager having gained managerial skills and entrepreneurial
education. The business will have one manager, one supervisor, one assistant manager, three
receptionist, two typist, three laboratory technicians, four trainers and three security men. They
will be permanently employed and earn monthly basic salary. The salaries will vary from the
highest rank to the lowest rank but to those who will work hard and they are disciplined they will
have an increment of their salaries. The recruitment will be done by the manager and will be
based by the individual qualification. They indicated business will operate under Government
permit and licences. It also has qualifications for insurance policy.

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1.4 PRODUCTION AND OPERSTION
The production will need the equipment such as the computers, the printers, the photocopier and
the scanning machine. The machines and equipment in the premise will be carefully taken care
of. Amount of Ksh 100,000 will be needed to purchase and budget for the raw materials for
monthly basis.

1.5 FINACIAL PLAN

The business owner plan to obtain the capital that will enable to start and run business from
borrowing some amount from the bank specifically the Equity bank.

Some of the amount will be contributed by the family’s members, relatives and the friends. The
remaining amount will come from the business owner.

The pre- operational cost Ksh 420,000, cash flow stamen Ksh 940,000 working capital Ksh
450,000 Pro-forma Balance sheet Ksh 2,548,000 Pro-forma income statement Ksh 403,000
Breakeven level Ksh 420,000 desired financing Ksh 2,568,000 proposed capitalization Ksh
800,000.

OVERAL SCHEDULE
The business will be running day time on the normal working hours, that is ranging from
2:00a.m to 4:00p.m that is the normal working time.

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INTRODUCTION

BUSINESS PLAN

BUSINESS NAME

DALA COMPUTER TRAINING CENTRE

The named business company is accompany dealing with training of learners only as its main
products.

BUSINESS LOCATIOIN

The company is located in Kisumu town opposite to St. Jairus Hospital next to Kisumu
International Airport. The company is located 5km away from the main town.

ADDRESS

DALA COMPUTER TRAINING CENTRE

P.O. BOX 20229

KISUMU, KENYA

EMAIL: omullodorcas@gmail.com

CUSTOMER TARGET

I am targeting all customers around Kisumu and the whole town, the youths and hawkers.
Sometimes the target is the shopkeepers and the teen rants.

CAPITAL ISATION

Specifically my company will require approximately a maximum of KS. 5000000 for the
convenient start and smooth run of the business. The capital will finally carter for the employee
salaries and the purchase of resources needed to start and run the business.

ITEMS USED

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My company will definitely require a total of 10 ovens baking resources such flour, sugar and
others.

CHAPTER TWO

BUSINESS DESCRIPTION

THE SPONSOR
My name is called Lynet Akinyi; I am twenty one years old of age. My homeland is in Kisumu
County, Muhoroni Sub- County, Ramula location, Kabar village, studying at RAMOGI
INSTITUTE OF ADVANCED TECHNOLOGY in Kisumu where I sat for Diploma in
Information Communication Technology. I have entrepreneurial skills in Computer Technology.
My main purpose in the business is to ensure there is enough space for work as an resource are
readily available for the convenience of work and production approximately the company needed
a total amount of Ksh. 5000000 to start and manage the business properly and t0 acquire the
necessary resources needed in the company.

THE BUSINESS
DALA COMPUTER TRAINING CENTRE is located in Kisumu Town just next to Kisumu
International Airport.

P.O. 20229

KISUMU, KENYA

EMAIL :akinyilynet13@gmail.com

The area population is around 20 acres of land and there is a well-developed roads leading to the
company. There is sufficient clean water for drinking and for domestic purposes. The main
product produced by DALA COMPUTER TRAINING CENTRE is properly learned people
equipped with the total enough knowledge in the computer technology field quantity. The
company has permits from the government and certificate has been issued to confirm the
business. License also has provided for safety and care strictly followed to minor accidents such
fire out breaks.

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THE INDUSTRY
The size of the training centre is not too big but is proceeds to train many people and sell many
computer devices; it will be able to expand. The industry name is called DALA because it is
there for the people around Kisumu. The technology which is used by the trainers in my firm is
very modern. The business will bring profit in that due to many customers featuring, it will be
able to bring back the capital I used to start up the business and create employment for other
trainers.

BUSINESS OBJECTIVE
The main aim of starting up this business is to create employment to oneself for example when
the trainees come and get the skills. I will ensure that more works are employed because the
business will expand. As well all known there are challenges that may affect the business and
leads its failure, I will eventually take my time and settle down with the employees and try to
find out the problems they face as workers and try to find solution to solve them conveniently
without any effect.

THE PROJECT
I have noticed that the services we produce at the company are customers favorite and I will try
to increase the quantity of the services.

My employees are so friendly to customers and therefore they like to take the desert of the
company where they calmly welcomed and entertainment.

My products will be obtained from different places such as the schools and the street people
coming from different places of the town.

ENTRY AND GROWTH STRATEGIES

The business will advertise the product of high quality hence enable the customers and trainees
will increase the profit as many customers and trainees will be joining my more employer hence
promoting the employment opportunity.

I will check the competition target and there weakness since that will be the advantages for my
business to improve since the competitor are overpricing the customers.

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I will reduce the price at my training so that many customer can come for the cheap ones, this
will lead to my competitors failure and a success to me since I will gain more profit because the
customers will be many

CHAPTER THREE

MARKETING PLAN

THE CUSTOMER
The business will be targeting all people around Kisumu town, members from airport and the
individuals who are attracted by the well and the good services offered by company.

Since the business will be targeting many people, some of the well people and the price will abit
moderate so that all people can afford the prices indicated for the services.

This will be more advantageous since there will be no money source of income to many people.
The business will be targeting everybody who comes for the produce since the majority takes
will be searching for the packaging services.

COMPETITION
COMPETITORS STRENGTH WEAKNESS OPPORTUNITY THREATS

POA BREAD There is Lack of market Good network Inadequate

COMPANY available strategies connection with skilled
resource and the customers personnel
equipment for
production

ASUH OLI To many Bad role models Available market Many

BREAD customers and rudeness to competitors
COMPANY the customers

JAVA BAKING Good Show bad A well- High

COMPANY management relation to the developed competition
and well channel of

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 connection to customers distribution
the customers

CHALO Has many In adequate Available market Moderate price

BAKING skilled capital
COMPANY personnel and
trainees

PRICING STRATEGY
My products will be well packed so as to attract customers and the price will be moderate so that
the customers can afford, since I have skilled workers who will take care of the customers so that
more customers will be attracted. The advantage over my competitors hence their downfall. This
will be done by introducing a well condition compound with a conducive resource to ensure that
hygiene is well maintained and lower the price of the bread so as to serve many people.

SALES TACTICS
The products will be produced into different qualities since the price will differ and defend on
the quantity produced and packed per packet.

Eventually take away will be higher than those who are consuming in the restaurant because
there are those who will by and sell to people at their own price. At sometimes free offers will be
allowed so as to collect viewers from the customers and their opinions on the produce. My
company will partly depend on or sell and sometimes personal selling. I will motivate them by
lowering the price to these who purchase and on daily basis so as to attract more people.

PROMOTIONAL STRATEGY
My business will use posters, magazines, radios, television and advertisement along the
roadsides so as to spread the name of the business in a wide area.

The advertisement will be carried on weekly basis so as to allow many recognize the company
and acquire more visitors.

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I will ensure that the value of the product is added so as to increase the taste to overcome the
competitors.

During advertisement period I will ensure that the advertisement is done in a simple and
understandable language for both generation, through many customers will be attracted.

PLACE DISTRIBUTION STRATEGY

The orders will be picked and gathered in advance to give company easy time for distributing
them to their prospective places the company will use the readily available means of transport
commodities.

The supply will be free and no changes will be demanded, this is done so that to acquire more
customers and maintain them. There are times the mode of transport will be poor so it will force
the company for another mode of transport such as Lorries for quick delivery.

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 CHAPTER FOUR

ORGANISATION AND MANAGEMENT PLAN

MANAGEMENT TEAM
The management team will be composed of 8 members.

They will required to attend to their duties and responsibility as proposed to them so as to ensure
growth and not fall of the business.

THE ORGANISATION STRUCTURE

MANAGER

ASST. MANAGER

SUPPERVISOR

TRAINERS STORE KEEPER

RECEPTIONIST

SECURITY OFFICER
TRAINEES
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The person who is to manage the business is business manager.

DUTIES OF MANAGER
Employ new staffs and assigned them duties.

He will also be ready to develop new advancement.

He will be required to organize and manage the entire enterprise.

He will assist and supervise the employees.

The manager will be paid a salary of Ksh. 45000

THE MANAGEMENT
Here we will have 3 members who will take good control of the entire business and ensure all the
works are done as recommended.

The members of staffs will include

1. The manager
2. The assistant manager
3. The supervisor

The manager functions.

Administering and hiring new employees when new staffs are needed.

Assigning duties to the employees

Supervises the work being done

Standing with the business whether it is rising or falling.

Functions of Assistant manager.

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Take part of the manager when absent in the organization.

Assign duties to the employees

Function of supervisor

Supervise the work given to the employees.

Also ensure the work is done at the right time

POSITIION QUALIFICATION DUTIES SALARY

MANAGER Should have at least Employing new staff Ksh. 45000

two years of members.
experience.
Development in new
Should be 25-35 years advancement.
of age.
Organize the entire
Should have attained enterprise.
the Diploma in
Information Assisting and
Communication supervising
Technology employees

ASSISTANT Should be 20-28 years Attend to all the Ksh. 35000

MANAGER of age. duties of the manager
in his/her absence.
Should have
experience in
business
management.

Should have a
Diploma in ICT

SUPERVISOR Should be 25-30 years He/ she supervises Ksh. 30000

of age. the work/job done in
the enterprise.
Should have at least
one year of work
experience.

Should have the

certificate in ICT

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STAFFING AND OTHER MEMBERS
The business will have permanent employees. The number of the employees required will be 20.

The employees employed will be required to have all the qualifications needed to attain post
he/she is interviewing for.

They will also ensure that they perform the duties and the \responsibilities as instructed.

The members include the receptionists, service people, store keepers, stewards and the security
officers.

POSITION NO QUALIFICATION DUTIES SALARY

RECEPTIONIST 3 Must be able to Keeping Ksh. 20000

speak fluent accounts records
English Kiswahili

TRAINNERS 7 Have certificate in Meets Ksh. 15000

production customers order

Can speak fluent Bill the

English and customers
Kiswahili
Welcoming the
customers

STORE 3 Have experience in Ensures that Ksh. 10000

KEEPERS business goods are in
management or their safe
storekeeping conditions

FINANCIAL 4 Should have Keeping and Ksh. 8000

OFFICER qualification in handling all the
accounting financed records

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 SECURITY 3 Should not have a Providing the Ksh. 5000
OFFICERS crime case good security

Should not be an
alcoholic

The business will definitely take at least six months the staffs . those employees who will be
doing their work as expected will be required to learn more experiences and this will be done by
taking them into the training where they will study the field work.

The business will be insured especially under theft, fire and serious accidents will be
compensated.

The business will also have the legal permanent permits which will govern the business and it
will be renewed after every one year.

The employees will be motivated by giving them promotions and incentives. They will also
have an outgoings so that the employees can refresh their mind from work.

LEGAL REQUIREMENTS
The business will operate under sole proprietorship and this will take place after acquiring legal
permits from the government i.e. the business lances so as to ensure smooth and fair operation of
the business.

The business will also be required to adhere to some of the business law such as registration fees,
legal fee and some authority fees.

PROFFESSIONAL ADVISORY AND SUPPORT SERVICES

The business will require materials from the flour which will be taken from the industry. The
industry will require loan from the bank to assist in the business development. The loan will be
acquired from the Equity Bank.

Apart from the mentioned, the business will require advertising staffs that will franchise and
advertise the business. Equity bank will help the business by depositing cash and giving

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information regarding their services. The business will also have a private lawyer who works at
the high coat and he will be in charge of the business administration and other occurring issues.

CHAPTER FIVE

OPERATION AND THE PRODUCTION PLAN

PLANT FACILITY AND EQUIPMENT

The DALA COMPUTER TRAINING CENTRE will require equipment such as Computers,
printers, scanners, typewriters, photocopier, furniture’s, bulbs, telephone, and calculators.

The price will depend on the price of the processors and manufacturers and the quality of the
learned people to be produced.

The enterprise will have enough space to accommodate all the staffs and the customers.

ITEM TYPE SOURCE MODE OF COST

PAYMENT

printer Cheque 40000

computer Cash 15000

scanners Laboratory Cash 10000

equipments
ELECTRICITY typewriters Cash 10000

photocopier Cash 3000

cables Cash 5000

bust blowers Cash 5000

fire extiquishers Cash 20000

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 Bulbs Cash 10000

LIGHTING Furniture Class equipment Cash 100000

Telephone Cash 10000

Calculator Cash 10000

Felt pens cash 5000

TOTAL 243000

The business will expand as time passes by and the production will also increase if there is
increase in customers demand.

The broken and the damage equipment will be taken to the mechanics and their respective
service operation areas.

The spare parts I will get from the workshop after that proper care and maintenance cost will be
Ksh 20000, in case of any damage the repairement cost will be Ksh 20000.

The business will also require postage and sign boards which will cost approximately Ksh
15000.

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 E
N
T
R
A
N
C
E
RECEPTION AREA ADMINISTRATION
LEARNING ROOM

E
S.
X
RO
I
O
T
M

PRODUCTION SRATERGY
The industry will require a huge amount of materials which will be used on the daily basis and
the purchase will be on the monthly basis.

The budgeting of the materials which will be required will cost the total amount of Ksh 100000
another Ksh 500000 will be set aside for the purchase of some stocks in case of any storage .
Incase there is any sign of decree for the materials, the industry will do the purchase early before
for the next six months to avoid to avoid delay and decrease in the production.

The industry will purchase its own vehicle which help in transportation and supply of goods
to their destinations and the respective customers .The vehicle will cost Ksh 5000 ,000 and
fuel will be bought at a price ofKsh 20,000 per month As the business states it will operate
on monthly basis and the expenses will be expected to be Ksh 100,000 and above .The monthly

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overheads such as rent will be paid on monthly basis Rent Ksh5000 electricity Ksh30,000
water 203,000 Telephone Ksh 10,000 Labour Ksh 10,000. Early the expected production
expenses will be over Ksh 2,000,000 most of the stocks will be done on hire purchase.

5.3 PRODUCTION PROCESS

The employees will be required to follow the steps which they will be provided to them in the
production sector. The production of the products will be done physically and no machines will
be required expected.

Some of the external factors which will affect the business such as security that may bring threat
to the business may not occur in several occasions since their will be security officers to provide
security needed. In case of water shortage, I will make sure water bore wells, tanks and septrick
tanks are within the compound enterprise to ensure there is no delay of work because of water
shortage.

REGULATONS AFFECTING OPERATIONS

Since the business will have permits from the governments, the revetment will take place after
very six months. I will also ensure that the business has some insurance policies which will be
taken from if insurance office. The insurance will cover will include accidents insurance costing
Ksh 20000, life insurance cover Ksh 10000, fire insurance of Ksh 5000 and it will be renewed
after every six months.

The business will also pay government taxes, the payment will be done on every population
sectors. They include health taxes Ksh 5000, trademarks Ksh 7000, safety regulation of Ksh
15000 and environment will also require license which will amount Ksh 7000

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 CHAPTER SIX

FINANCIAL PLAN

PRE- OPERATIONAL COST

ITEMS COST(CASH)

Equipment and installation 208000

Trade license 7000

Electricity 30000

Water 20000

Advertisements 50000

Raw materials 100000

Rent 5000

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 Total 420000

CASH FLOW STATEMENT

RECIEPTS (INFLOW) COST(CASH)

Cash sales 80000

Credit sales 60000

Capital introduced 150000

Other income 60000

TOTAL 350000

EXPENSES/ OUTFLOWS

Cash purchases 208000

Salaries 168000

Rent 5000

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 Electricity 30000

Water 20000

Advertisements 50000

Maintenance 20000

Repairs 20000

Postages 15000

Transport 20000

Taxes

34000

TOTAL 590000

WORKING CAPITAL AND OPERATION COST

ITEM COST

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 Rent 50000

Electricity 30000

Postages 15000

Repairs 20000

Water 20000

Telephone 10000

Advertisement 50000

Legal fee 45000

Purchase of the materials 100000

The trainers 10000

Transport 20000

Maintenance 20000

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 Misalliances 60000

PRO-FPRMA INCOME STATEMENT (PROFIT AND LOSS)

RECIEPTS(INFLOW) KSH

Cash of sales 190000

Credit sales 624000

Total 814000

Gross profit 442000

OVERHEAD EXPENCES

Salaries 168000

Electricity 30000

Rent 51000

Water 20000

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 Telephone 10000

Advertisement 50000

Transport 20000

Repairs 20000

Maintenance 20000

Misalliances 60000

TOTAL 403000

Net profit before tax = ( G.P – OVERHEADS )

G.P =sales –purchases

G.P=814000-190000

=544000

N.P before tax = 544000-403000

=141000

N.P after tax = less 16%

=100%-16%

=84%

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 (84/100)*544000

=Ksh. 456960

PRO-FORMA BALANCE SHEET

BALANCE SHEET
ASSETS LIABILITIES

FIXED ASSETS LONG TERM LIABILITIES

Equipment Ksh. 208000 Bank loan Ksh. 500000

Furniture Ksh. 100000 Capital Ksh. 500000

Vehicle Ksh. 500000

Buildings Ksh. 500000

Land Ksh. 250000 CF Ksh. 558000

Ksh. 1558000 Ksh. 1558000

CURRENT ASSETS CURRENT

LIABILITIES

Stock of raw Ksh. 100000 Creditors Ksh. 24000

materials

Stock of finished Ksh. 30000

goods

C.A.B. Ksh. 500000

C.A.H. Ksh. 300000

Debtors Ksh. 60000 CF Ksh. 966000

Ksh. 990000 Ksh. 990000

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BREAK-EVEN LEVEL

Calculate break-even level

ITEM KSH.

Equipment and installation 208000

Trade license 7000

Electricity 30000

Water 20000

Advertisement 50000

Raw material 100000

Rent 5000

TOTAL 420000

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Variable cost =420000

I. Total contribution margin

= sales – variables cost

814000 – 420000

=394000

Contribution margin percentage

Contribution margin/sales *100

394000/814000

48.40%%

Determine the total fixed cost

Cash flows statements *12

420000*12

5040000

Calculate the break even level of sales in Ksh

Fixed cost/contribution

5040000/394000

12.79%

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DISIRED FINANCING
ITEM COST

Pre-operation 420000

Working capital 590000

Fixed assets 1558000

TOTAL 2568000

PROPOSED CAPITALISATION
ITEM KSH

Own capital 300000

Borrowed (loan) 500000

Total investment 800000

EXPECTED PROFIT RATIO

GROSS PROFIT PERCENTAGE

G.P /sales *100

544000/814000*100

66.83%

RETURN ON EQUITY

Net profit after tax/owners equity

456960/800000

0.57%

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RETURN ON INVESTMENT

Net profit after tax/total investment *100

456960/800000*100

0.57*100

57.12%

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