P.

O BOX 143
NAKURU
TEL: 0705143282

PRESENTED BY : NDUNGU ANN NJOKI

INDEX NO : 5521053214

DEPARTMENT : HATS

COURSE : DIPLOMA IN FASHION AND DESIGN

CENTER CODE : 552105

SUPERVISOR : MADAM JOYCE NJUGUNA

PRESENTED TO : KENYA NATIONALEXAMINATION COUNCIL IN

PARTIAL FULFILLMENT FOR THE AWARD OF

DIPLOMA IN FASHION AND DESIGN

EXAM SERIES : JUNE/JULY 2022

i
Table of Contents

DECLARATION.........................................................................................................................................v
DEDICATION............................................................................................................................................vi
ACKNOWLEDGEMENT.........................................................................................................................vii
EXECUTIVE SUMMARY.......................................................................................................................viii
CHAPTER ONE..........................................................................................................................................1
1.0 Business description..........................................................................................................................1
1.1 Background of the owner...................................................................................................................1
1.2 Nature of business.............................................................................................................................1
1.3 Business location and address............................................................................................................2
MAP LOCATION OF THE ENTERPRISE............................................................................................4
1.4 Form of ownership.............................................................................................................................5
1.5 Type of the business..........................................................................................................................5
1.6 The products......................................................................................................................................6
1.6 JUSTIFICATIONS OF OPPORTUNITY..........................................................................................9
1.7 The industry.......................................................................................................................................9
1.7.1 The proposed business belongs to the textile industry................................................................9
1.7.2 Characteristics of the industry...................................................................................................10
1.7.3 Describe the industry trends and prospects...............................................................................10
1.8 Business Goals.................................................................................................................................11
CHAPTER TWO.......................................................................................................................................13
2.0 Marketing plan.................................................................................................................................13
2.1 Individual customers........................................................................................................................13
2.2 Institutional customers.....................................................................................................................13
2.2.1 Potential competitors................................................................................................................14
2.2.3 Comparison of proposed products with competitors.................................................................15
2.3 Market share....................................................................................................................................17
2.4.1 Advertising and promotion strategy..........................................................................................18
2.4.2 Promotion strategy....................................................................................................................19
2.5 Pricing strategy................................................................................................................................19
2.6 Sales tactics.....................................................................................................................................20

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 2.7 Distribution strategy........................................................................................................................21
CHAPTER THREE...................................................................................................................................22
3.0 Organisation and management.........................................................................................................22
3.1 Organisation....................................................................................................................................22
3.1.1 Duties of the manager/Owner...................................................................................................22
3.2 Key management personnel, number and duties..............................................................................23
3.2.1 Other personnel.........................................................................................................................24
3.3 Recruitment, Training and promotion..............................................................................................27
3.3.1 Recruitment..............................................................................................................................27
3.3.2 Training....................................................................................................................................28
3.3.3 Promotion.................................................................................................................................28
3.3.4 Incentives and remuneration.....................................................................................................29
3.4 licensing, permits and by-laws.........................................................................................................30
3.4.1 License......................................................................................................................................30
3.4.2 Permits......................................................................................................................................30
3.4.3 By-law......................................................................................................................................30
3.5 Support services...............................................................................................................................31
3.5.1 Banking services.......................................................................................................................31
3.5.2 Insurance services.....................................................................................................................31
3.5.3 Consulting services...................................................................................................................31
3.5.4 Legal services...........................................................................................................................32
CHAPTER FOUR.....................................................................................................................................33
4.0 Operational/Production plan............................................................................................................33
4.1 Production design and development................................................................................................33
4.1.1 Development.............................................................................................................................33
4.1.2 Production.................................................................................................................................33
4.2 Product facilities and capacity.........................................................................................................34
4.2.1 Tools and requirement for production.......................................................................................34
4.2.1.2 Tools needed.............................................................................................................................34
4.2.3 Features of workshop layout.....................................................................................................35
WORKSHOP LAYOUT.......................................................................................................................37
4.2.4 Fixed Assets..............................................................................................................................38

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 4.3 Production strategy..........................................................................................................................39
4.3.1 Monthly material requirement..................................................................................................39
4.3.2 Monthly labour requirement.....................................................................................................39
4.3.3 Monthly production expenses...................................................................................................40
4.4.7 Total cost of production............................................................................................................40
4.5 Operational/production process.......................................................................................................40
4.6 Governmental Regulations..............................................................................................................42
4.6.1 Health regulations.....................................................................................................................42
4.6.2 Licensing of employees............................................................................................................43
4.6.3 Trade marks patent copyrignts..................................................................................................43
TRADE MARK.........................................................................................................................................45
CHAPTER FIVE.......................................................................................................................................46
5.0 Financial plan..................................................................................................................................46
5.1 Pre-operational cost.........................................................................................................................46
5.2 Working capital Requirement..........................................................................................................47
5.3 Projected cash flow statement for year 2024..................................................................................49
5.4 Proforma income statement.............................................................................................................51
5.5 Break-Even level.............................................................................................................................51
5.6 Expected profitability ratios.............................................................................................................52
5.7 Desired financing.............................................................................................................................53
5.8 Proposed capitalization....................................................................................................................53

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DECLARATION
I hereby declare that this prepared work is mine, through experience, participation and inventions

and therefore submit the business plan to Kenya National Examination Council for the award of

academic qualification in diploma in fashion and design.

CANDIDATE NAME: ……………………….

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

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

SUPERVISOR NAME: ………………………….

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

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

v
DEDICATION
I purely and whole heartedly dedicate this work to my parents Mr. and Mrs. Ndungu

vi
ACKNOWLEDGEMENT
I greatly thank supervisor Madam Joyce for the support and guidance he has accorded me
throughout so as to make this plan successfully completed.

My sincere thanks to my parents who gave me their moral support and financial support
throughout the course.

May God bless you abundantly.

vii
EXECUTIVE SUMMARY
1.0 Business description

Kandi fashion is a sole proprietor business to be. It will tend to deal in outfits for all genders. The
business will produce designs on its own stitch them and take them to the consumers. It will sell
its designs just outside its building in a boutique and will also make use of internet platforms to
make its sales country wide. The business will be located in Kaptembwa Nakuru. Chapter one
gives the description in Concern with the enterprise

2.0 Marketing plan

The business will have reliable consumers that will make the business grow they include:
individual customers and institutional customers. For the individual consumers they will get
there product after shopping at the boutique while institutional will make orders of their
interested outfits to be made and delivered to them, a good business has competitors which are
discussed in this chapter and so the business intends to work on its feet to have good market
share.

3.0 Organization and management

The manager is the owner herself, as she cannot work alone she intends to hire that will either
come from media platforms after advertising from other businesses. The business will also intend
to have a good social relation with its employees by following organizational management
techniques and co-operation with government regulation concerning employees welfare.

4.0 Production plan

The nature of the business is that it will produce products that is outfits. There will be a greatly
planned system of operations from the design face to the tangible product that will fulfill
consumers taste and preference. This will only be achieved by a good production plan of material
and labour which are detailed discussed in chapter 4.

viii
5.0 Financial plan

I this section tables and numeric’s are used to explain how the owner used his money, the assets
and liabilities in his business. The chapter includes, pre-operational costs, working capital
requirements, projected cash flow statement, pro-forma income statement, pro-forma balance
sheet, break-even level, expected profitability ratios, desired financing proposed capitalization.

ix
 CHAPTER ONE

1.0 Business description

1.1 Background of the owner

The owner of the business will be Ann Ndungu. He is 21 years of age. The entrepreneur is
currently a student of Rift valley Institute of Science and Technology. She pursue diploma in
Fashion and design. She is single, she went through primary education and sat for her KCPE in
the year 2013. She later joined Kiamaina Secondary in the year 2014 and attained her certificate
in 2017. The entrepreneur is in a family of four children, she has both parents.

She pursued Fashion and Design course due to love and passion in her heart towards the course.
This passion pushed her to know more about garment making and designing garments. The
knowledge of making fashion was obtained through the internet platforms and always going to
different made to measure shop. The little experience she obtained made her to have an interest
and need to have more knowledge and this lead her to pick fashion design as her career course.

Fashion design being a career course she had several goals that she would put into practice as
soon as she complete her course. The first and foremost long-term goal was to start her own
fashion styling enterprise. As she has not completed her course she intend to harness more
knowledge by completing the course to higher levels and also by going to attachments and
internship in industries.

1.2 Nature of business

The name of the proposed business as it being clothing will be “KANDIs FASHION”. The
business will be located in Nakuru County, in industrial area trading center, she intends to locate
it in an urban area where fashion is pronounced and appreciated. It has high population and the
social amenities, road and infrastructure are of high stand. It will be located near its source
material which will be BEDI investments and SPIN KNIT Company. It will be located in the
streets of Kaptembwa; the plot registration will be Nakuru/Kaptembwa/270. It will be near
Kaptembwa police station opposite Neema fashions in Sokoni Street.

1
The owner intend to start her enterprise in 2026 as she will have completed her course and have
enough experience to venture in business. She will operate as a sole proprietor as she want to be
the owner of the business alone.

The business intends to be producing designs on its own. It will create designs depending on the
consumers taste. It will also be making and selling pattern of the invested design. The major
activity will be investing a unique design stitch it and sell. The other activity will be selling the
invented design to consumers inform of patterns. The business will be making design of clothes
and sell them through internet platform and boutique. If the invented design finds market it will
be produced in large amount. The design will focused in any type of customers, be it individual
or institutional of event. There will be retail and whole sales. Also orders of the designs we
display will be made by people in institutions or events will be met.

1.3 Business location and address

The location of the enterprise is vital to its growth. The owner of the business served the
industrial area and saw it suit for her business. The area is highly populated it has people of
several classes; there are middle, high and low classes. The population is evenly distributed all
over. The area have several institution and hotel, motels, restraints and churches. All this make it
ideal for its growth. The business around example, Neema fashion, stop shop fashion are good
for competition. The highly populated area will offer market for displayed designs in the
boutiques for retail and whole sale orders for example wholesale will come from restricts,
motels, wedding and parties who are interested in our outstanding fashion and reputable name of
our designs.

The area is known for its good infrastructure due to high population. The roads are tarmac and
Marum they tend to offer good transport in all weather condition. Water is available from the
NAWASCO water suppliers which its transported through pipes from one area to another, thus
water being on essential need is highly taken care of. The electricity line posts are all over the
area this makes it highly electrified and incase of electricity loss substitute like generators will be
needed. Good electricity leads to good network condition as network boosters are located at
several areas.

2
The business being in on industrial zone, it located to its raw material like water and readymade
fabrics, machine purchase, threads, middle and accessories as for water NAWASCO water
supplies are very close, the fabrics will come from BEDI and spin knit, machines will come from
Amedo, threads and needles will come from tailor shops in the CBD. The area where business is
located is near residential area thus employees could seek shelter from any apartments and flats
in the area. There are reach in business activities several business has lead to the growth of the
area. The people are business oriented and this will motivate the employees.

3
MAP LOCATION OF THE ENTERPRISE

Kapembwa police
station

Ligland Hotel Kandi fashion

Kaptembwa road

KENYA
COMMERCIAL
BANK

Kaptembwa
hospital

4
1.4 Form of ownership
The proposed business will be a sole proprietorship kind of business. Beginning a sole proprietor
business is quite easy in comparison with other kind of business that is partnership, starting
partnership has a lot of steps that needs to be followed when it comes to sponsor its also require
process and this needs dedication and commitment. The most advantageous part that the owner
saw in sole appropriation is that she will have a full control of her business and will drive it in
accordance to her desire.

As raising capital on her own is quite difficult the owner will seek assistance from her parents
and borrow some remaining amount from equity back to sum up the money required to start the
business. The cash at hand will be Ksh 500,000 which is 5% of the amount she requires to start
the business. Her parents will give a contribution of Ksh 100,000 each of them Ksh 50,000 this
will give a 10% business capital. She will then borrow from her bank Ksh 40,000 giving a
percentage of 40%.

Name Amount Percentage

Owner 500,000 50%
Parent 100,000 10%
Bank 400,000 40%

1.5 Type of the business

The business will be a startup business meaning that the owner has never had any business on
her own she has only been an employee. The business type will be deadline with wholesale and
retail form of goods. As per the wholesale the orders made by the clients are predicted to be large
of a particular design inquired. The wholesale goods will differ from the retail as the wholesale
will involve a large number of people who wants our design thus it will only differ in
measurement. As per the retail the enterprise will establish two boutiques to sell the made
garments from our designs. The designs will differ and also does the prices. The measurement
too will differ, it will be fo any customer be it male or female.

The business will be small scale as it is a start up business. The hope will be that it will gro as the
services and the product offered will outwit the others leading to it being largely know and thus

5
grow. The business is expected to grow gradually that is by four years of time it will be a larger
scale.

The business will have an aim of starting it. Its aim will be to ensure that it creates an
environment in which fashion is embarrassed at all means. It tends to show that Kenyans can not
always be importing knowledge from overseas but also they can make outfits that will also sell to
other countries. This will be met by the business creating garment that are unique, that is
providing all kind of fashion it flop be it fades, made to measure, classic fashion it will create
designs of all type of clothes that will be embraced by consumer. This will be achieved by the
owner utilizing the knowledge she obtained that made her qualified to be a designer.

The enterprise will have tangible output products that is the readymade garment depending on
consumers taste and preference. It will also sell the designed patterns to other business.

The consumers will be also of wholesale and retail depending on their preferences. Wholesale
will be wedding maidens, employees of company dancers, organization official wears and also
other groups that will be interested in our fashions. The retails will be displayed at our boutiques
and the inquires made by individual customer from our advertisement platform will be delivered
to their doorstep.

The consumers will know about our produce by the enterprise using internet platforms, posters,
magazines, deploys on the Daily newspapers all this will have our designs and this will enable us
to have customers in the advertisements the enterprise will also send job vacancies for fashion
designers and their qualifications will be seen to it.

The pricing policies will be displayed on the deigns that are being advertised. The prices will
differ depending on the complexity of the designs and the materials used.

1.6 The products

The business will offer tangible good. It will tend to produce garments of different styles and
designs to the consumers. The enterprise will tend to produce different designs in large quantity
and small quantities. Before producing garments to large quantities there will be need to have
full awareness of the designs that will sell. This will be know by the advertisement response of

6
the designs. If people like the design in large number then its produced in large quantity as it will
sell. The one produced in small amount are the one of sample designs that sell but are cheap.

The products produce

The products will involve any garments both women and male wear the women wear includes:

Skirts

Skirts will be of any colors, any texture, all types of sizes. The skirts produced will differ in sizes
and designs the main features that will be with the skirts its drape, frills, yokes and other details
that will give it a distinct skirt and be a designers skirt loved by many.

Dresses

The dresses will have different detail and placed according to the production design sketch, they
will also differ in sizes colour and materials they will be casual, officials

Blouses

The business will produce blouses of different designs. The colours will differ from one design
to another. The material will also be of different types of fabrics; some will be fitting, easy fitting
and close fitting.

Trousers

They will be of all type of colours, they will be fitting others official, casual and also body
shapers, like for sporting activities. The trousers will be of any type all depending on the
designers creativity.

Blazers

The fabrics will be of any type, colour will also be distinct in each designs the texture will
depend on the fabric.

7
Men will include:

Shirts and ties

The shirts will be any casual, officials, tailored , all this will be produced by Kandi designs. The
enterprise will produce the shirts of different colour and texture.

Trousers and suits

The suits will be official, suits of different colours as for the trouser they will be of jeans and
kurki of shorts.

Coats and jackets

Coats will mainly be of black colour, jackets will differ in colour

Children will include:

Trousers, dresses and sweaters/jackets

They will be of different colour and materials. They will only differ in sex and design of
creativity.

Accessories and shoes

The accessories includes watches, bracelets, chains, earring, pins, hair chains, hair pins, all this
will be located at the boutiques.

The shoes will be for ladies only will be bought in wholesale from Bata shoes. The accessories
will also be bought in wholesale from the accessories shops in VBD Nakuru town.

The quality of the materials will be high depending on the type of garment to be made and also
consumers requirement and taste. The materials will differ in type like cotton, flux, polyester and
soon. As for the wholesales to the customers their products will be packed in boxes and delivered
to them directly from the enterprise.

The consumers will be good services for their needs. There will be free delivery of their produce
made. The first priority will be meeting their demands. The quality of the produce ill always go

8
with the price of the garment. The price strategy of the enterprise will favor the consumers
packet as prices will differ from one garment to the other.

1.6 JUSTIFICATIONS OF OPPORTUNITY

The need for starting Kandi’s Fashion enterprise is to give opportunities for Kenyans who have
fashion ideas see their way to business by utilizing their passion of garment making. The
proposed business will tend to meet the importance of fashion in out day today world as fashion
styles are emerging by day thus people will embrace fashion in the country if the proposed
business gains popurratly it will also be exporting its produce to other countries and importations
maybe reduced as other industries will emerge thus growth of the economy and industries.

The business will meet the need of fashion emerge people. It will meet the importance of going
with fashion trends in the area the business is going with fashion trends in the area the business is
going to be located. It will meet the need of the people at the outskirts of the business. As the
business will tend to have picked to its estimated potential. Its dream is to exports its produce to
other countries and be known all over. The establishment of Kandi’s designs will lead to
emergence of other small-scale entrepreneurs who will tend emulate our business thus growth of
fashion in the vanity.

The enterprise will assist in the growth of the located area of the business. It will also offer
employment and thus unemployment in the area will tend to reduce. It will also promote
unemployment in the area as no on can leave alone. For examples the business in the area as no
one can leave alone. For example the business will promote people selling in shop, transport
system by the employees and also the consumers, the electricity company will also be promoted.
The location of the business will meet a need to improve infrastructure in the area and also it can
lead to migration from other places to the area as it will have grown and attracted other business.

1.7 The industry

1.7.1 The proposed business belongs to the textile industry.

Textile industry is currently trying to raise again as other industries had been shut down due to
some factors. The size of the industry will be medium as it’s a infants business.

9
1.7.2 Characteristics of the industry
The size of the firm in the textile industry will be a medium scale enterprise of fashion. The
enterprise will used modern technology for example, putting employees information about their
credentials in our computer system, it will have electrical machine of stitching, overlooking,
button holders, and embroidery, thus will use the available modern technology.

The average number of the employees in the firm will be classified as personals and other
personals. As per the personnel they will be seven while other personals will be three. The
business being a sole proprietor and it being a medium scale the initial capital needed will be
Ksh 1,000,000. The levels of scale in the boutiques will be garments per day and jewelries and
shoes may differ in number, maybe 5 shoes per day. As per the wholesale, orders made will
come daily or weekly. The general level of scale per day will be Ksh 50,000 thus 10% will go to
the business the other one will be profit of the day.

The seasonal factors that will affect the business will be political state, war and instability will
lead to started growth or fall of the business. Climatic factor may also affect the prospect of the
business as people income will be low and this will make customers go for the needs first rather
than the new fashion in the market.

1.7.3 Describe the industry trends and prospects

1.7.3.1 Sales trends

Kandi’s fashion enterprise is a small scale production and has never been established before it
has only been proposed. Considerably with what products it’s going to be producing it will
eventually grow with time and it will became a renown enterprise all over Nakuru county. The
owner of the business will be educated and definitely an entrepreneur. She has all it takes to
make Kandi a big brand.

Signs of its growth

i. Its located in a growing and developed location

ii. Its located in a highly populated area
iii. Employees that tend to be employed will be sophisticated
iv. The owner of the business will be an entrepreneur not a business man
v. There will be use of scale tactics and trade secrets

10
 vi. It’s a unique brand in Nakuru county

1.7.3.2 Treads and prospects in technological development

The business will not decline it will be stable and strong. As it will tend to grow both in mind
and trading and consumers increase the business size will increase. High orders will be made of
high amount and thus many dressmakers will be needed and so does the machine and also the
designers. Many machines will be needed that are sophisticated and the business will become
highly technogized.

1.7.3.3 Competitive treads in the industry

In Kaptembwa or industries area the competition is quiet high. Leave alone the big enterprises
also the small-scale enterprises are also competitive. The business will have to arm itself well
and be ready to face the competitors with its head held high. It will tend to outwit its competitor
by coming up with high. It will tend to outwit its competitors by coming up with secret trending
aspects and sailing tactics that will outwit the others.

Kandi is still small before it gets bitten by other competitors it will have already outwitted them
in secret.

1.8 Business Goals

Short term goals

i. As a clothing line enterprise it will find reliable distributors who will expose the label
to the market
ii. Make sales and marketing a propriety
iii. Listen to her consumers – Ensuring that there is a way for customers to voice their
feedback and for her to show that the producer is listening
iv. Simplify day to day activities and out mate workflows to improve productivity. This
is trying out a customer relationship management solution to help her spend less time
on administrative tasks and ensuring that each customers has a positive experience
while interacting with the product
v. Building and nurture customer relationships
vi. Attract and retain talented employees.

11
Long-term goals

i. Indentify consumer treads need to be consistently on top of consumer trends and their
constant and fluid changes
ii. Getting recognition of Kandi’s brand by intensive marketing and advertising
strategies that expose the masses who and will be presented.
iii. Romain a profitable business, the revenue earn will always be more than the costs
incurred in the process of acquiring that revenue
iv. Increase social flow there will be achieved by increasing the large of opportunities for
people to want Kandi’s produced it will increase social media following in various
ways.
v. Test new ideas this will keep the business innovates and fresh by constantly testing
new ideas for business and market ideas.

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 CHAPTER TWO

2.0 Marketing plan

Kandi’s Fashion enterprise will have reliable consumers that will enable the business grew to its
expected extensions for this to be achieved potential and reliable consumers are needed. The
customers will be classified as;

a. Individual customers
b. Institutional customers

2.1 Individual customers

Kandi’s enterprise will tend to develop designs that will be sold t people directly from its
boutiques. The people that will be buying the product will be of all kinds. They will come from
different places of the located market. They will also be of different ages, occupation, education,
income and gender. In the boutiques the garments that will be sold will be of all ages, be it
children, teen or garments that will be of all ages, be it children, teen o adults. This clients will
come from different places and location. When it comes to adults their products prices will differ
from children. The adults prices will be higher due to the amount of material used and also the
complexity of the design and the type of the material. The prices of the clothes will be displayed
by putting the material. The prices of the clothes will be displayed by putting the amount of
money on them by using papers. The adults will be any income as the products will cover each
and every person be it high class client or low class client.

The customers will be of any religion as one will wear according to their desires our products
will always be so attractive to our consumers as the products will always differ from others.
They will always be unique and eye coughing. The garments made will also be good in
durability and the good services from our employees as they will have laid a good foundation
with the consumers. Hey will be purchasing directly from out boutiques as they will always be
opened from 8am to 6pm except on Sundays.

2.2 Institutional customers

This are customers that involves a larger number of individuals that will come from any given
business institution that will be interested with Kandi’s designs. This will include; motels, hotel,

13
restaurants, clubs that is sports, or dancers or any other organization that would want uniforms
for a particular design displayed through our advertisement platforms.

This customers will involve a large number of produce for a particular designs that will involve a
particular design. This clients will come from different places of our located business, the orders
that will be made will determine the number of produce of a given design. The prices of the
order made will differ from the individual customers as their orders at any convenient time they
prefer. The consumers will come to our produce as they are durable, eye coughing and
outstanding and yes they will be unique from other institutions.

The purchasing pattern will depend on the orders made by the clients. The business will sell its
produce weekly or monthly. Also the company will be selling their produce to business men who
tend to sell in their personal boutiques in a week it will tend to make garments for 2 to 3
companies thus in a month they will be making garments for almost twenty companies as the
name of the business will go countrywide and so does the produce.

2.2.1 Potential competitors

The potential customer are the one named above, they are close to Kandi’s enterprise. They are
all just a mile away from the located enterprise.

Advantages of Kandi location close to competitors

a. The monopoly myth – Locally being the sale monopoly supplier for a product of tale of
two retailers. The close proximity ignite a head to head battle for competitive advantage
b. Competitive environment will create fuel creativity and productivity generating a higher
quality of work
c. Consumers love choice – consumers compare before they make purchaser and for that a
competitor is required to be just a mile away from your location
d. Desire for better service. If people in the area were longing to have more services that are
distinct to the existing then Kandi brings up its enterprise for more services then it
becomes a win-win situation for the business.

14
Disadvantages of Kandi location near competitors

There will be high instability as one cannot say this customer is assured as today’s economy is
customer centric, the customers will not mind walking away if the get a more better deal than
Kandi’s

The size of the potential competitor are large-scale business compared to Kandi which is a small
scale business. The size of the competitors is quite large to Kandi’s though its expected to raise
in size in relation to the unique products it will be producing.

2.2.3 Comparison of proposed products with competitors

FIRM PRODUCT STRENGTH
Smart investments - Hospitality wears 45 high
- School uniforms
- Pattern and designs
- Fabric raw materials
Tawala limited - Uniforms 2 low
- Fabric
Clothe knit limited - Quality textile 5 high
- Knitwear
- Yarns
- Blankets
Kandi fashion - Pattern of designs 3 low
- Accessories
- Ready made garments

Competitive advantage

i. Cost leadership. Kandi will offer same of the quality products as its competitors but at
a low price

15
 ii. Differentiation. Other of the competitors merely offer the same produce to the
customers, Kandi comes up with reedy made fashioned designs
iii. Hold positions through defensive strategies: slaying or holding firmly the position
that makes Kandi a distant competitor.
iv. Kandi does not offer fabrics it will purchase from this competitors as all of them offer
the same produce but Kandi fashion will be a distinct competitor as it will offer ready
made garment of unique designs

2.2.4

FIRM STRENGTH WEAKNESS OPPORTUNITY THREATS

Smart - Good - Limited - Ability to -economic downtimes
investment competitive access to offer Increases government
skills skills higher regulation
- Adaptability to - Limited degree of
market culture expertise value
- Good location - Market
- Most leading growth
competition - High
degree of
value
Tawala - Availability of - Market - Competition
limited business culture growth - Shift in consumer
- Strong work - High behavior
ethics degree of - Not highly
- Good location value known
- Ability to
expand
Clothe knit - High - Market - Increased
limited competitive growth governmental
- Strong work - High regulation
ethics quality - Shift in consumer

16
 - Has a good produced behavior
location goods - Economic
- Its highly know - Growth of downtimes
- Produce good the - Unsustainable
goods industry price increased
supplier
FIRM STRENGTH WEAKNESS OPPORTUNITY THREAT
Smart 45 high 2 3 2
investment
Tawala 3 low 3 3 3
limited
Clothe knit 5 high 2 3 4
limited

With reference to it most competitor companies Kandi’s desire to outwit them by producing
garments at first of unique designs and having good relation with our employees it also tend to
use advertisement as a weapon of defeat since this business have little advertisement to their
company.

The competitors are of large scale products though also there is upcoming business like Kandi
fashion, it might be difficult to compete with them as they enter prize is still young and has not
yet adapted to the strategic location.

2.3 Market share

Sizing the market is a necessary task market size is the number of individuals in a certain market
segment who are potential buyers. Nakuru is a wide area that is dressily populated and as a result
of this it forms a good market for most business located especially in Kaptembwa.

In accordance with the strategic location of the firm, I is estimated to sell both in the boutiques
and in the industry. As the market due to population of people and the products that Kandi will
offer the number of people is expected to be high in the boutiques. Firm expects to have 80% of

17
the aligned business that will offer the same commodities as per the firm its expected to have
25% of market share.

The enterprise expects to have a market share of 20%

Market share pie chart

20%

30%
tawala limited
kandi's fashion
smart investment
clothe knit

20%

30%

2.4.1 Advertising and promotion strategy

The business will intends to make more sales through trade fares representation and exhibitions,
Kandi will employ several advertisement medias for her design

A. Having a brand website were all the activities around that builds the brand – This is
where the brands will live its where visitors can discover who Kandi designs are and will
be ready to build a relationship
B. Being active on social media, making Kandi’s brands seem by many people; make the
brand active and not bearing, giving customers a way of liking and buying Kandi’s
designs
C. Giving the images that will be displayed personality that is use quality photography,
custom packaging and witty copywriting
D. Blogging – Creating a clothing design blog that will make us trustworthy to the
consumers, it will provide visibility for any website by being easier to find on Google.

18
Advertisement will also be on TV, radio station, magazines, internet will only cost 3,000 per
month while media is 10,000 per month

The effectiveness of the advertisement will be measured for example in the internet platforms the
effectiveness will be all about how many followers and likes that will be displayed on the design
in the other medias of advertisement, is how people will make inquiries of how to came to our
firms and access the commodities.

2.4.2 Promotion strategy

The enterprise will use promotion campaigns, exhibition, posters to promote its products. The
first promotion will be using posters in streets to make people identify with the products, the
poster will have details on how access Kandi’s design and the cost of each design that is
children’s, men or women’s outfits

The enterprise will also hire a car that will be used to promote the brands. There will also be
posters on the cars displaying several outfits that belongs to Kandi.

Kandi enterprise will also involves in Exhibition shows what they offer, how to get them the
prizing strategies and so on. Kandi will hire models that will go on trading shows each month or
if it appears in a week or so. This models will not be many they will be few and their cost will be
loss. The models will be five individuals and two children’s. Ksh 500 will be paid to the per
show.

The effectiveness of our promotion campaign will be measure on if its advantageous to the firm
or not. To be advantageous simply means that it will meet its need. If the promotion will tend to
bring more clients to the firm then it advantageous and if the promotion will not produce the
number of estimated client then it will be rendered un-useful and it will be eliminated or
substituted.

2.5 Pricing strategy

The business goal is to make maximum returns and profit that will make the business grow from
one level to another. The selling price of the Kandi’s products will come from what they
produce. If a design is too complex then it means more time and more skills were used so does
the prise. When it comes to the fabric used some fabrics are expensive and others are cheap
others are locally available while others will tend to travel. So when it comes to the fabric used

19
the fabric quality will determine the price of garment. Pricing also differ with age adults clothes
can have the same price as for the children as making children’s garment is quite tedious. The
selling price of a commodity will also tread with the competitors. If for a particular garments it
sells at a higher to price then why not lower by 5% as the business is still to young in order to
gain customers.

Customers mostly wholesale would take credits, as their produce is large in number. They will
only be credit worthy if they have a good financial state in their institutions. The customers that
will purchase our commodities that is garment that are more than three in our boutiques will get
a discount of jewelries or hand bags. As for the customers that will be baying our commodities in
large-scale that is garments that are more than will get a discount of 5% of the price to be paid.

The selling price of enterprise commodity will not be fixed as pricing might change due to
several factor. Pricing will tend to go with trends competitions state of the government and
economical factors. After sale services will be delivering the produce to the economical factors.
After sale services will be delivering the produce to the customers mostly whole sale orders. As
the business is still young, it will purchase a van for this services the van cost will only be Ksh
2,000 per day that is fuel needed for any location delivery.

2.6 Sales tactics

Selling directly to customers

Kandi enterprise will have established boutiques to display, promote, advertise and sell their
garment. Clients that will come to this boutiques for the enterprises commodity will get them
directly from Kandi’s shopkeepers. Also the consumers who will come to Kandi’s industry to
make an order will be considered as direct clients.

Retain, recruit and remunerate sales force.

a. By setting clear targets for Kandi’s sales people. Linked to incentives such as
commissions and bonuses as this will motivate them and provide a clear indication of the
kind of performance expected of them
b. Setting activity targets for the sales people
c. Measuring the performance of the salespersons

20
 d. Managing the sale steam.

2.7 Distribution strategy

Kandi will use distributions, wholesalers representatives to distribute the purchased commodities
to the clients. This clients are those that will make higher orders and will be the enterprises duty
to transport to their stated paces.

He enterprise will use roads as a means of transport as it will involve, vehicles and the location
has no other means of transport except road. Road transport is also render cheaper as per air and
railway line services. The cost of traveling by road will only inquire Ksh 2,000 of the fuel need
as the vehicle will belong to the company.

Problems anticipated in distribution

i. In surplus agent practicing corruption hence affecting the revenue of the business
ii. Traffic jams on the road
iii. Very far places may cause loss to the transportation system of the business.

Solve

i. As per the traffic jam only the government can adjust road, but the business will tend
to transport its produce before rush to avoid traffic
ii. Very far places that will bring loss to the business will be anticipated by raising the
sell of the commodity in order to harbor the loss that will arise.

21
 CHAPTER THREE

3.0 Organisation and management

Kandi Fashion styling enterprise will have well planned and successful management by having a
qualified manager who will be in charge and will recruit qualified personnel who will make
Kandi business a stop shop.

3.1 Organisation
The business will require a good management for it to make it thrive well in the textile industry.
The management is the one that comes with strategies to be placed and policies to be made with
the aim of making the business grow and plough more profits. In the proposed business, the
owner of the business will be the manager, by then she will have finished her studies and enough
work experiences and he will have attained managerial skills.

3.1.1 Duties of the manager/Owner

i. Planning and directing the work of a group individuals, monitoring their work and
taking corrective measures when necessary
ii. she will be in charge of staffing that taking right procedures in order
iii. ensuring clarity around priorities and goals for the entire functional businesses
iv. communicating financial and goal results and Key performance indicators to direct
report
v. effective decision making
vi. Planning and forecasting
vii. Promotion and co-ordination
viii. Hiring and employees

As the manger will be the owner and director of the business he will distribute the money
according to the profit made and the salary of each employee. After all the employees have been
paid and the profit made to go back business before it pick up will be at least Ksh 150,000
depending on the infantry of the business and as it picks up definitely the salary would tend to
raise.

22
3.2 Key management personnel, number and duties
Kandi’s business will intend to employ personnel that will bring forward the growth of the
business. It will mostly likely employ people who have qualification and those having common
objective of the ideal part of the business that is growth.

a. Supervisor
i. He will be one
ii. He will also be aged from 30 years of age and above
iii. Must have a good work experience as a supervisor
iv. Have a good reputation from previous work experiences

Duties and responsibilities

i. Disciplining the shop floor

ii. Style analysis
iii. Line setting
iv. Machine selection
v. Line balancing
vi. Will also distribute salary to the employees

Salary Ksh 11,000

b. Accountant

He will be in charge of asset, calculations of profits and losses forecasting and budgeting control.
He should have a bachelor degree in commerce or CPA4

Duties and responsibilities

i. Maintain financial records

ii. Report financial matters to the manager
iii. Maintaining credit control
iv. He does computation of buying

23
Incentives

 Honoring the employees

 Create an unassigned office that will be amazing
 Throw a party when great profits have been made

3.2.1 Other personnel

The other personnel docket includes other employees who are not featured in the management
plan

a) Designers should be three

Qualification

i. Higher degree in fashion

ii. Good creativity
iii. Good drawing skills
iv. Aged 25-30 years
v. Good in sewing
vi. A certificate showing their qualification

Duties ad responsibility

i. They will be producing designs to make garments

ii. Draw bad exhibit their developed designs
iii. They will sewing the created designs
b) Security officers
i. Should have a K.C.S.E certificate
ii. At least an ear in his experience
iii. Aged 35 years and above
iv. He will be the only one

Duties and responsibility

Provide security of the enterprise premises

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 c) Cleaner

Should have at least a certificate of education

Duties

Clean business premises

d) Boutique keeper
 Certificate in K.C.S.E
 Hold a certificate in sales and marketing and an experience in sales and marketing

Duties and responsibility

i. Sale and market our design produce

ii. Serve customers in our boutique
iii. Distribution of products

25
Organization chart

Manager /owner

Supervisor

Operator Operator
Director Machinist

Botique keeper Cleaner Security Gard

The qualified employees intended to be employed will be obtained by putting posters of job
vacancies of the job and their qualifications. Also they will tend to utilize social media platforms
to acquire employees.

26
3.3 Recruitment, Training and promotion

3.3.1 Recruitment
This will be the positive process of searching for prospective employees and stimulating them to
apply for the job in the organization

The owner of the business will employ the following techniques in recruitment.

For the assistant manager and accountant, the business will use advertisement method. The
business will advertise so that people cab get to know of the available vacancies and apply so
that the enterprise chooses best from the application list.

Use a banner to attract interest. Not every candidate that might be interested in is using social or
digital channels to search for jobs, so a vinyl banner will be a good way to get their attention it
will provide the business with the perfect way to attract new employees by advertising their
hiring needs

Use your website. As the website is the face of Kandi’s business adding a careers page to the
website will be a no-brainer. This page will host job openings, companies’ values and culture
and any fun content that the employees will have. This will be creative and will tend to create
interest.

Give candidates a better idea of work location

Creating feature image of Kandi’s logo and a subtitle purple theme throughout the advertisement
ad

Another method the business will use id poaching methods. This is staling on employee from
another organization due to their performance. The enterprise will scan around and see if it can
obtain an employee for its competitors by the use of poaching method. For the sales
representatives. The business will deploy this method for managerial employees; but other
employees like security officers and cleaners the business might use ward of mouth or
advertisement.

27
3.3.2 Training
Training will be an organization activity aimed at imparting information or instructions to
improve the newly staff or highly promoted staff to help them attain desired business goals. The
employees will need training so as to continue sharpening their skills on their line of duty. The
training plans will be as follows.

 Classroom-based training programs-groups of employees go through a series of

presentation slides and activities, like case study assessments or information on company
policy issues
 Interactive training – it will involve learners in their own learning experience on-the-job
training-not only will the employees activity involved in learning, but they will also
participate in real activities that relate to their current or future job.
 Social learning- this will be learning from other employees by observing imitating and
modeling their behavior
 Establishing new employee procedures before hand
 Ensure that all mangers use n new hire training checklist
 Start on barding before day one

The following are purpose of training

i. It will help employees adapt the industry changes

ii. Training will improve the employees performance
iii. Will help improve the job satisfaction and morale of employees
iv. Training will help improve the job satisfaction and morale of employees
v. Reduction for close and constant supervision of workers
vi. Help to remove defect in the process of selection

3.3.3 Promotion
It will be the act of moving someone to a higher rank of his assigned area of work. The
proprietor will promote the employees as this helps motivate them to work hard towards the
achievements of the business laid goals

28
Factors to consider when promoting

a. The ability to consistently prioritize work and meet deadlines

b. A positive attitude
c. Work well with the team
d. Consistently putting the team’s best interest ahead of their own
e. Merit and ability
f. Education qualifications

Ways in which an employee will be promoted

i. Noncompetitive model of promotion

ii. Competitive model of promotion
iii. Upgrade promotion or out promotion
iv. Dry promotion
v. Paper promotion

3.3.4 Incentives and remuneration

Incentives are quite important in the smooth running of a business as it makes employees feel
comfortable and work comfortably without fear as they know that at a certain day they will
receive something or in case they get a problem they will be sorted.

The owner will give the following incentives

i. Bonus: This is an incentive given to employees in certain times of the year. This is to
appreciate them for the good job they are doing. The owner of the business will be
giving the employees bonus at every public holidays as a means of appreciation. They
will be given in terms of cash to every employees.
ii. Overtime payments. When working hours are over and the workers are still working
then they deserves overtime which some businesses don’t give to their employees. To
avoid all these the owner of the business will be giving overtime payment to workers
iii. Tea and snacks – The owner will offer this at 11:00 am

29
3.4 licensing, permits and by-laws

3.4.1 License
The proposed business will, acquire its trading license from the county government of Nakuru

The license will cost 10,000 which is inclusive of government license renewal period is from 14 th
January to 31st December yearly. The reasons as to why the business is acquiring the trading
license is because of the following

i. As an approval hat the business is legal

ii. To keep the business on track as far as paying of taxes is concerned
iii. To identify the business with the country government

3.4.2 Permits
A business permit acts as a proof that the business follows certain set rules and regulations.

The permits which the business will acquire should always be in shop to give customers
confidence that they are buying from a trusted source.

The owner of the business will a acquire the permit from the country government of Nakuru
department of trade and industrialization.

3.4.3 By-law
These are the rules and regulations enacted by an association and it will provide framework for
operation and management. The business will acquire by-laws from county government of
Nakuru.

The reasons for the laws are;

i. By-laws assist in committee assessment and other routine conduct

ii. By-laws allows for smoother operation and focus on companies purpose
iii. By-laws help to protect your companies limited liability protect on
iv. By-laws forms the companies legal framework for how it operates other by-laws of
the organization are;
a. Reporting time of the employee
b. Leaving time of the employee

30
3.5 Support services
Support services will be required for a successful completion of a process, program or project.
These includes.

3.5.1 Banking services

The proposed business will open a bank account with Equity bank, in Nakuru branch

The purpose will be;

a. To offer financial support in terms of loan

b. To save profits of the business
c. Facilitates in mobile banking for performing balance checks, account transaction
payments, credits application and other banking transactions through mobile devices
d. To earn interest on money deposited
e. To provide storage of the money
f. To provide overdraft facilities

3.5.2 Insurance services

To cover for risk occurrence in the business. The enterprise will need an insurance cover. Due to
uncertainty that may arise in the enterprises such as fire business needs an insurance to
compensate for the losses that will be inquired

The business will insure itself against

i. Risk against fire

ii. Risk of damage
iii. Incase of theft
iv. Incase of employees damage
v. Incase of natural calamities

3.5.3 Consulting services

These are services that develop finding, confusions and recommendation that are presented to
client for consideration and decision making

31
The owner of the business will consult Bedi investment in order to seek advice on the operation
of the business. On how to deal and relate with customers and how to penetrate the market. Other
consultant services the owner will seek includes

- Training
- Strategic development

3.5.4 Legal services

These will be important for protecting the owners persona assets from law suits against the
business

The owner of the business will need a lawyer because of some complex legal issues, that
commonly face small business for example; handling employees, contracts and incorporation .
but due to high cost of retaining a lawyer in the business, the proprietor of the business will
apply for a pre-paid legal services which is cost effective and provide the business with legal
advice and attorneys services for monthly fee.

The business will, retain the lawyer and pre-paid services due to the following;

i. Pre-paid plans make it easier for the business to practice preventive law instead of
reaching crisis.
ii. To provide business protector program
iii. Attorneys services provide consultation document review, letter writings and other
services at low cost.

32
 CHAPTER FOUR

4.0 Operational/Production plan

4.1 Production design and development

The company has designers as part of their design development with addition to the dress
makers. At the planning meeting designer will use concept board to present their ideas to the
development and management team. These concepts are typically colour and fabric swatches,
fashion sketches and magazine photos that capture the theme or mood of the design idea
previous seasons sales figures, sales forecasts for the new season and overall outlook of
upcoming seasons will be discussed in the planning seasons.

After the design team reviews the line, designers transform those final designs destined for actual
production into sample garments. If the product is to be made off share, the final designs will be
translated into garment specification sheets.

4.1.1 Development
 Design sketches will made into tech packs in illustrator
 Sources fabric and trim from wholesale vendors
 The tech designer will take the fabric into consideration with the clientele interest.
 Labels and hand tags sourced and also put into tech packs to be applied to garment during
production
 Sample cut and sewn according to the development package
 The produced sample fit in a model then its approved for production

4.1.2 Production
Cloning the salesman sample into a top sample

4.1.2.1 Production lay plan/markers

A series of production lay plans or meeker will be planned and created. It will incorporate
different sizes to ensure that the correct quantities of each size and colour are able to be cut and
ready for production and that the optimum utilization of the fabric is achieved.

33
4.1.2.2 Cutting
Fabric to the required length of the lay plan, with father lengths of fabric being laid on top, until
he correct amounts of plies of fabrics are achieved. This will enable the precise quantities and
sizes of the production garments to be cut.

4.2 Product facilities and capacity

4.2.1 Tools and requirement for production

4.2.1.1 Equipments
ITEM QUANTITY PRICE TOTAL SUPPLIER
Overlocking Machine 1 50,000 50,000 Tailor vendor
Sewing machine 3 30,000 60,000 Tailor shops
Zigzag machine 1 25,000 25,000
Sheves chairs 7 6,000 20,000 Carpentry
Ironing table 1 5,000 5,000 Carpentry
Ironing box 1 2,500 2,500 Supermarket
Cutting table 1 500 500 Carpentry
Total 143,000

4.2.1.2 Tools needed

Item Quantity Price Total Supplier
Shears 4 700 2,800 Tailor vendor
Seamripper 4 20 80 Tailor vendor
Pins 3 60 90 Tailor vendor
Tape measure 4 20 80 Tailor vendor
Rulers 4 200 800 Tailor vendor
Tracing wheel 2 50 100 Tailor vendor
Brown papers 1 roll 1,000 1,000 Tailor vendor
Hand needles 1 packet 50 50 Tailor vendor
Chalks 1 packet 50 50 Tailor vendor
Total 9 5,050

34
4.2.2 Plans for repair and maintenance for machinery and equipments
Machines and equipment requires constant, maintenance to keep it in good working order.
Conversely, poorly maintained large machinery equipment runs inefficiently Breakdowns are
costly and safely is also an important consideration.

Here are the plans repair and maintenance

a. Stay on top of large machinery operator training; many types of machinery have multiple
operators one of the ongoing inspectors on any checklist should be overseeing the correct
operation of the equipment.
b. Add and test lubricants frequently; lubricants reduce friction around any moving part. A
schedule of good lubrication maintenance extends the life of large machinery equipment
and parts. Getting the lubricants checked is a good way to diagnose problems with large
machinery
c. Check for signs of wear; vibration shock, high temperature, friction

Maintenance
Before the closing of the daily work in the business, the work is done

4.2.3 Features of workshop layout

Features of good layout

Efficient space utilization

An ideal layout should utilize the available space in an effective way the arrangement of
equipment, service points and workers will be done in such a way that space is properly utilized.

Flexibility

There will be a continuous innovation in types of products manufactured as well as in equipment,

techniques and process of production. Therefore the layout will be designed in such a way that
the layout is flexible enough to adopt to changes.

35
Minimum movement

It will be so designed that there is, minimum movement of men and machines. The movement
will be direct as far as possible

Visibility

The workshop will be arranged in such a way that there is no problem in supervision, co-
ordination and control. Row material, work in progress and finished goods will have specific
storage points and must be visible at all times

Reduced discomfort

It will arranged and designed in a way that there is minimum discomfort to the workers. It will
tend to provide proper lighting, ventilation and reduce the impact of heat, noise, vibration, dust,
fames.

Adhere to statutory regulations

The layout will adhere to the regulations of the factory act with regard to health, safety and
welfare of employees.

Preservation of materials and equipment

The layout will contain safeguards against fire, moisture, theft and general degeneration of
equipment and materials. There will be adequate and safe storage locations.

36
WORKSHOP LAYOUT

37
4.2.4 Fixed Assets
They are physical or tangible assets that last at least a year or longer

Tangible assets

Cash – Money will always be needed and to what reason is business being established at first
place is because of money. Money will be needed for almost everything concerning the
enterprise

Office supplies – Record kept for the business will be an asset as they will always be produced
and kept for future needs

Computer hardwares – This will be the part of our business market as much work will be done
online example marketing, advertising and so on

Machinery – They will be our backbone asset as they will be used for production of the
companies products

Stock – This will be the raw materials that the business will need for its production and will be
kept in a storage room.

Intangible assets

They are assets that cannot be touched or felt

Trade secrets – This will be the tack ticks used in soiling the products

Permit – This will be the permission granted to employees when they tend to be in need of it

Good will

Patents

Trade marks

Brand

Corporate intellectual property

38
Copyrights

4.3 Production strategy

4.3.1 Monthly material requirement

Fa

Item Quantity Price (Ksh) Total

Fabric (plane and vitenges) 10 rolls 10 x 20000 200,000
Lining fabrics 5 rolls 5 x 13000 65,000
Elastic bands 7 rolls 5 x 800 4,000
Sewing threads 10 packets 10 x 300 3,000
Buttons 20 packets 20 x500 10,000
Zippers 10 packets 10 x 500 5,000
Interfacings 3 rolls 3 x80000 24,000
Napers 5 rolls 5 x 500 2,500
Needles 1 box 1 x 1000 1,000
TOTAL KSH 314,500

4.3.2 Monthly labour requirement

Title Number Monthly pay Allowance Total
Manager/owner 1 15000 2000 17000
Supervisor 1 12000 2000 14000
Designer 1 10000 2000 12000
Machinist 1 10000 2000 11000
Boutique keeper 1 8000 500 8500
Total 7 55000 82500
Security will be from owner of the buiding which will provide sevices under tenants expenses.

Security Ksh5,000

Accountant timely 3,000

39
 TOTAL LABOUR
Employees cost 82,000
Others 18,000
Total 90,000

4.3.3 Monthly production expenses

Item Quantit Cost Total Supplier

y
Advertisement Monthly 6000 600 Blogs
Repair and maintain ace Timely 3000 3000 Technicians
Books of records 1 1000 200 Shops
Packaging material 15 100 1500 Shops
Transport Per trip 300 300 Vehicle
Electricity Monthly 15000 20000 KPLC
Water bill Monthly 5000 5000 NAWASCO
Rent Monthly 12000 12000 Owner of building
Total 24400 660000

4.4.7 Total cost of production

Strategies Cost
Monthly material requirement 314,500
Monthly labour requirement 90,000
Production monthly expenses 66,000
Cost total production 503,500

40
4.5 Operational/production process
For garment to be taken to the consumers fabric has to undergo several processes in order to be
garment. The following will be involved.

Production design

Designs will be developed by the designers and presented to be accepted once its accepted an
order is made concerning the design patterns are made and placed in a maker, after grading has
been done for several sizes

Fabric selection

Fabric are selected in relation to the customers taste and preference, then an order is made to the
fabric supplies then its wanted for its larval

Fabric inspection

Before the fabric is bought it will be insected to see whether its ideal for production of
professional garment

Receiving fabric

Fabrics will be brought by the suppliers. Its stored in the waiting area or store room.

Fabric spreading

After the fabric has been relaxed, it will be transformed to the cutting area of the garment. The
number of plies in each spread is dependent on the fabric type, spreading method, cutting
equipment and size of the garment order, garment patterns will be laid on top of the spread

Laying

Patterns will be layed that will help one to plan the placement of the pattern pieces in a tentative
manner

Marking

41
Marking will be done manually by use of chalks

Cutting

The total cutting operations will be done by knife cutting machine and band knife. All marking
and detail will also be transferred

Embroidery and interfacing

Only made if specified by the consumer. It will be performed by often machines.

Sewing

Stitching will be done after the out pieces are bundled according to size, colour and quantities
determined by the sewing room garments will be the garment becoming complete as it
progresses down the sewing line

Checking

Production results will be measured and compared to the planned quantity standard. Corrective
measures to be carried out if there are any deviations in the plans

Spot cleaning and laundry

Laundering will be done manually by the garment makers, if any articles are soiled or stained
during the manufacturing process

Fusing and pressing

After the garment are fully sewn and assembled they will then be transferred to the ironing
section of the facility for final pressing. The item used for ironing will be ironing boxes

Packing and shipping

The garments will be folded tagged, sized and packaged according to customer specification,
they will also be placed in protective plastic bags manually.

Transporting and delivery

42
The ready packed garment will be transported to the clients

4.6 Governmental Regulations

4.6.1 Health regulations

This is to ensure that the health of personnel is to the required standards. As its every employer
to ensure the safety health and welfare of all employees at work working on his/her workplace.
The occupational safety and health act, No 15 of 2007 and revised in 2010, provides for the
safety health and welfare of workers and all persons

Obligation of the employer

Provide and maintain system and procedures of work that are safe and without risks to health

Making arrangements for ensuring safety and the absence of risks to health in connection with
the use, handling, storage and transport of articles and substances.

Register the employees workplace as such workplace is exempted from registration under the act

Ensuring that every person employed participants in the application and review of safety and
health measures

Ensuring they were and use protective gears

4.6.2 Licensing of employees

Employees health regulations will be licensed by the employer and it will cater for any accident
encountered in the enterprise. This will make Kandis fashion be accepted interms of healthiness
of employees.

4.6.3 Trade marks patent copyrignts

Trademarks will take form and will be an indicator to consumers, that a certain product
originates from a specific source. Brands name and slogan will be typical trademarks Kandis
fashion will use its name brand and log as a trade mark. The trademark owner will registers its
mark with Kenyan patent and Trademark office once the trade mark is registered, it will be
important to monitor the marketplace to ensure that no one else starts using a similar mark that
would infringe on the enterprise

43
In trademark law, a personal name can only be protected as a trademark if the public has come to
see that persons name as the source of the fashion products on which its branded. This level of
recognition will only happen after extensive advertising and promotion as a brand name. in order
to obtain a copyright registration the creation must passes a certain medium of creativity.

There will be two patents utility patent and design patent. Utility patent will protect functional
inventions and methods and design patent will protect ornamental design of a product. The scope
of design patent will be defined by figures in the design application and will be prepared
according to the trademark patient office guidelines.

Importantly design patent takes time before being registered may take one to two years. But once
a design application is on file, the product will be labeled as “patent pending” once a design
patient is issued, the marketing will be changed to patented.

44
TRADE MARK

45
 CHAPTER FIVE

5.0 Financial plan

This is a cause of financial action intended to be implemented it’s a tool for accessing the
performance of the business on a continuous basis it will help to identify if the business is
running at a less or profit despite the assets and the liabilities of the business. The following table
shows the amount at hand and where it will be harvested from.

Name Amount Percentage

Owner 500,000 50%
Parent 100,000 10%
Bank 400,000 40%
Total 1,000,000 100%

5.1 Pre-operational cost

Item Amount (KSH)
Tools and equipments 147,050
Electricity bill 15,000
Water bill 5,000
Rent fee 20,000
Trade licence 7,000
Legal fees 2,000
Insurance policy payment 1,500
Consultancy fee 500
Total 216500

46
47
5.2 Working capital Requirement
The figure below illustrates the working capital for the year 2024 to 2027

Items 2924 2025 2026

Cash in hand 8,000,000 9,200,000 11,300,000
Cash at bank 50,000 50,000 70,000
Stock of raw materials 4,626,050 4,726,500 500,000
Debtors 485,000 400,000 300,000
Work in progress 3,000,000 3,100,000 3,700,000
Stock of finished goods 3,000,000 3,100,000 3,700,000
Total

Assumption

- Money at bank is estimated to increase by 10%

- Cash at hand is estimated to increase by 10%
- Stock at raw material increase in dependant with the cash in hand.

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 5.3 Projected cash flow statement for year 2024

MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
S
Cash in KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS. KSHS.
flow
Cash 524575 581950 500000 620000 680000 680000 700000 740000 800000 850000 890000 900000 8333600
sales
Debtors 50000 50000 50000 70000 65000 70000 50000 30000 30000 29000 485000
Cash in
hand
Cash in
bank
Total 373000 428000 493000 627000 599000 446000 424000 450000 537000 455000 500000 5323000
cash flow
Purchases 461550 120000 90000 105000 100000 130000 180000 85000 180000 100000 100000 110000 1320000
Creditors 30000 20000 21000 8000 17000 18000 15000 29000 20300 45000 32000 45000 300300
Salaries 29000 29000 29000 29000 29000 29000 29000 29000 29000 29000 29000 29000 348000
and
wages
Telephon 2000 800 16000 8000 1000 1700 1300 1400 1200 1000 8000 4000 21840
e
Electricit 3000 1500 1200 1000 900 1700 1000 1500 1000 1700 1000 1000 16500
y
Repair 1500 1300 800 700 1000 1200 1500 1500 800 500 800 500 12000
and
maintena
nce
Water 400 500 550 420 350 430 470 550 620 710 720 750 6850
installatio
n
Transport 21000 21000 21000 21000 20000 20000 20000 20000 20000 20000 20000 20000 250000

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Insurance 8200 8200
License 3000 3000
Total 178300 187600 165150 173120 170250 157030 178030 212870 252830 184820 197690 196990 2254750
cash out
flow
Net 333475 185400 262850 319880 456750 446970 267920 211130 197150 352180 257310 653010 3823250
cash/cf

Accumul 681950 378100 640950 960830 1417580 1884550 2152490 2363600 2560750 2912930 3170240 3823250
ative cash

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5.4 Proforma income statement
Profoma income statement for year ending 31st December 2024

Items 1st year 2nd year 3rd year

Sales 8,333,600 9,533,600 9,733,600
Cost of stocks 4,626,050 4,926,050 5,000,000
Gross profits 3,707,550 4,607,550 4,733,600
Expenses
Salaries 570,000 570,000 570,000
Rent 144,000 144,000 144,000
Water 262,000 262,000 262,000
Telephone 12,000 12,000 112,000
Advertising 72,000 72,000 72,000
Postage 112,000 112,000 12,000
Transport 17,200 17,200 17,000
Depreciation 5,000 _ _
Repair and maintenance 7,000 7,000 7,000
Total expenses 2,091,200 2,090,100 2,000,100

Gross profit 3,707,550 4,607,550 4,733,600

-2,091,200 -2,090,100 -2,000,000
Profit before tax 1,616,350 2,517,450 2,733,600
-18,000 -18,000 -18,000
Net profit after tax 1,598,350 2,499,450 2,715,600

5.5 Break-Even level

The break even level in Kandi fashions

i. Total Contribution margin

Total contribution margin

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 Total contribution = 8,333,600 – 4,626,050 [Total contribution marging =
contribution/sales x 100]

= 1,616,350

ii. Contribution margin %

1,616,350 x 100%
8,333,600
= 193.9%
iii. Break even level of sales
503,500 x 100%
193.9
= 259,666.9%

5.6 Expected profitability ratios

Expected profitability ratio of Kandi Fashions 1st year 2024

i. Gross profit %
1,616,350 x 100%
8,333,600
= 19.4%
ii. Returning on equity
1,598,350 x 100%
616,350
= 98.8%
iii. Return of investment
1,598,350 x 100%
673,250
= 23.73%

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5.7 Desired financing
The following table indicates total amount of money required to start Kandi fashions

Item Amount (KSH)

Pre-operational costs 216,500
Working capital 538,450
Machinery and equipments 40,00
Purchases 300,000
Total 824,950

5.8 Proposed capitalization

Item Cost KSH
Total investment 500,000
Your own contribution 300,000
Funds from borrowing sources equity 200,000
Total 1,000,000

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