BUSINESS PLAN

IMPALA TOOLS AND EQUIPMENT COMPANY

PRESENTED BY: NJERI BETH NJOKI

INDEX NUMBER: 5781010109

ADMISSION NUMBER: 2018/11581

COURSE CODE:

SUPERVISOR: MADAM LOICE

INSTITUTION: THE ELDORET NATIONAL POLYTECHNIC

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN

PARTIAL FULLFILLMENT OF THE REQUIREMENT

FOR THE AWARD FOR A CRAFT CERTIFICATE IN

LAND SURVEY AT THE ELDORET NATIONAL

POLYTECHNIC

EXAM SERIES: JULY 2021

i
DECLARATION
The business plan has never been submitted for supervision by my own approval. I declare

that this is my original work which has never been presented elsewhere before.

NAME: NJERI BETH NJOKI

Signature:………………………………...

Date:………………………………………

This business plan has never been submitted to Kenya national examination council with my

approval as supervisor. I closely supervised the data collected and making of the work.

SUPERVISOR: MADAM LOICE

Signature……………………………..

date…………………………………….

ii
 DECLARATION

I declare that this business plan is a result of my own research and efforts. It is original work

submitted to Kenya National Examination Council for the award of a craft certificate in land

survey.

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 Acknowledgement

Writing and compiling these business plan calls for help from various people. First, I thank

supervisor for all her patience and guidance in writing this business plan. My sincere

gratitude goes to my parents, relatives and friends for both encouraging and financially

supporting me to complete my business plan.

I would also like to give my thanks to the entire staff of Eldoret polytechnic and those who

directly or indirectly contributed to the success of this plan.

May the lord bless the work of their hands.

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 DEDICATION

I first dedicate this business plan particularly to parents for their dedication towards financial

in my academics. May God bless the work of their hands.

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 TABLE OF CONTENTS
DECLARATION....................................................................................................................................i
DECLARATION...................................................................................................................................ii
Acknowledgement................................................................................................................................iii
DEDICATION......................................................................................................................................iv
EXECUTIVE SUMARY.....................................................................................................................vii
CHAPTER ONE....................................................................................................................................1
1.0 BUSINESS DESCRIPTION........................................................................................................1
1.1 BUSINESS NAME......................................................................................................................1
1.4 PRODUCTS AND SERVICES...................................................................................................1
1.5 JUSTIFICATION OF OPPORTUNITY......................................................................................1
1.6 INDUSTRY.................................................................................................................................2
1.7 GOALS OF THE BUSINESS.....................................................................................................2
1.8 ENTRY AND GROWTH STRATEGY......................................................................................2
CHAPTER TWO...................................................................................................................................3
2.0 MARKET PLAN.........................................................................................................................3
2.1 CUSTOMERS.............................................................................................................................3
2.2 MARKET SHARE......................................................................................................................3
2.3 COMPETITION..........................................................................................................................3
2.5 SALES TACTICS.......................................................................................................................3
2.7 DISTRIBUTION STRATEGY....................................................................................................4
CHAPTER THREE...............................................................................................................................5
3.0 MANAGEMENT PLAN.............................................................................................................5
3.1ORGANIZATION STRUCTURE................................................................................................5
3.2 MANAGEMENT AND QUALIFICATIONS.............................................................................5
3.3 RECRUITMENT, TRAINING AND PROMOTION..................................................................6
3.4 REMUNERATION AND INCENTIVES....................................................................................6
3.5 LICENSE, PERMITS AND BY-LAWS......................................................................................6
CHAPTER FOUR.................................................................................................................................7
4.0 OPERATION / PRODUCT PLAN..............................................................................................7
4.1 PRODUCTION OR SERVICE DESIGN AND DEVELOPMENT.............................................7
4.2 PRODUCTION, FACILITY AND CAPACITY.........................................................................7
4.3 PRODUCTION OR SERVICE STRATEGY..............................................................................7
4.4 PRODUCTION PROCESS.........................................................................................................7

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 4.5 REGULATIONS AFFECTING OPERATION...........................................................................7
CHAPTER FIVE...................................................................................................................................8
5.0 FINANCIAL PLAN....................................................................................................................8
5.1 PRE-OPERATIONAL COSTS...................................................................................................8
5.2 ESTIMATED WORKING CAPITAL.........................................................................................8
5.2.1 WORKING CAPITAL.............................................................................................................9
5.3 BUSINESS PLANED CASH FLOW........................................................................................10
5.3.1 IMPALA EQUIPMENTS CASH FLOW FOR THE YEAR ENDING AS AT 31ST
DECEMBER 2022..........................................................................................................................10
5.3.2 IMPALA EQUIPMENTS CASH FLOW FOR THE YEAR ENDING AS AT 31ST
DECEMBER 2023..........................................................................................................................11
5.3.2 IMPALA EQUIPMENTS CASH FLOW FOR THE YEAR ENDING AS AT 31ST
DECEMBER 2024..........................................................................................................................12
5.4 PROFORMA INCOME STATEMENT....................................................................................13
5.5 PROFORMA BALANCESHEET – IMPALA EQUIPMENTS.................................................14
5.6 BREAK EVEN POINT.............................................................................................................14
6.7 PROFITABILITY RATIOS......................................................................................................15
6.8 DESIRED FINANCING............................................................................................................15

vii
 EXECUTIVE SUMARY

BUSINESS NAME
The name of the business will be Impala tools and equipment Company. The Company
manufactures all survey equipment’s.
BUSINESS LOCATION AND ADDRESS
The business will be located at Eldoret in Uasin Gishu County. It is located near KVDA
plaza. The area will be highly secured following it’s nearness to police station which will
provide security to the business.
MARKET SHARE
According to preliminary research conducted Eldoret are has a population of 400,000 people
during its early stage of operation. The firm will have managed to capture 20% of the
population and by the end of the years the firm will have capture a total of 50% of the
constituency population.
OPERATION / PRODUCT PLAN
This is where the conversion of raw material into final product. The manager will also
responsible for the design she will also carry out research about the new design from other
business in industry, magazine and seminars if possible.

viii
 CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 BUSINESS NAME
The name of the business will be Impala tools and equipment Company. The Company
manufactures all survey equipment’s.
1.2 BUSINESS LOCATION AND ADDRESS
The business will be located at Eldoret in Uasin Gishu County. It is located near KVDA
plaza. the area will be highly secured following it’s nearness to police station which will
provide security to the business. The business is at the central point of the town where many
people pass through there thus helping in adverting and making people to be aware of the
business.
The business name
Impala tools and equipment company,
P.O. BOX 329,
Eldoret.
1.3 BUSINESS FORM AND OWNERSHIP
Impala tools and equipment Company will operation as a sole proprietorship form of
business. This form is preferred because; all profit goes to manager, quick decision making,
independence in operation of the business full control of the business.
1.4 PRODUCTS AND SERVICES
It has created a new type of land survey equipment that will revolutionize the industry. Our
newest device, the Digital Geographer, DG-2000, has the look and feel of a traditional
distance wheel – but with one amazing new feature. When wheeled around the perimeter of
ANY area, the DG-2000 will calculate the area inside!

1.5 JUSTIFICATION OF OPPORTUNITY

Due to high demand of survey equipment’s in the country, it is wise to start a company that
manufacture tools requires in surveying industry. The reliable commercial customers will be
clients who are around and some engineering work. The potential entrepreneur has been
carrying out through research that the high percentages of people within the location need
their land to be subdivided and be given the parcel number.
1.6 INDUSTRY
The industry falls under the ministry of industrialization. The business will operate under
manufacturing, industry is ever growing due to the under development such as new cities and

1
road construction national land commission is currently pushing for demarcating the county
especially township. This industry has great opportunities hence suitable to invest in.
1.7 GOALS OF THE BUSINESS
The major goals of the business manufacture modern survey machine after three years of
operation. Manufacturer of engineering and surveying precision measuring instruments
1.8 ENTRY AND GROWTH STRATEGY
The firm will ensure that there is high quality product services offer to client this will help to
gain acceptances and penetration in the market. Availability of competitors will help in
pricing e.g lowering the prices by not overcharging the client, thus these honest will attract
many customers and the business will grow.

2
 CHAPTER TWO
2.0 MARKET PLAN
2.1 CUSTOMERS
Institution – these are universities and colleges that offers survey course and engineering
cource.
Individual customers – who will be starting construction companies and survey firms.
2.2 MARKET SHARE
According to preliminary research conducted Eldoret are has a population of 400,000 people
during its early stage of operation. The firm will have managed to capture 20% of the
population and by the end of the years the firm will have capture a total of 50% of the
constituency population.
2.3 COMPETITION

Since the impala tools and equipment’s is a breakthrough product, it currently has no direct
competition. The Digital Geographer is expected to segment and take a portion of market
share from companies that manufacture distance wheels. Every major distance wheel
manufacturer has excellent distribution and product support structures in place.

2.4 PRICING STRATEGY

Impala equipment’s will adopt appropriate pricing strategies in order to retain and even

attract more customers. Surveying services shall be charged on the basis of the distances of

the site.

2.5 SALES TACTICS

The business is much interested in attracting customers and retaining them. In the first year of

operation the business will lower their prices slightly than the competitors; this will help to

attract more customers in the market.

METHODS OF PROMOTION AND ADVERTISING

The strategies and incentive which are aimed at promoting services will include: Advertising

techniques to be used will be through posters so as to create publicity and awareness to all

clients and Calendar will also be used to display services offered to indicate where firms is

found.

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2.7 DISTRIBUTION STRATEGY
The distribution channel to be used is direct that the products and services will reach the

client directly from the office without any intermediaries, hence it will be reached to right

person at the right time.

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 CHAPTER THREE

3.0 MANAGEMENT PLAN

3.1ORGANIZATION STRUCTURE

MANAGING DIRECTOR

ASSISTANT MANAGING DIRECTOR

SUPERVISOR SECRETARY WATCHMAN

3.2 MANAGEMENT AND QUALIFICATIONS

1.manager
The business will be managed by who will be owner of the business she is Certificate holder

in surveying who will perform all the function of management planning, organizing, directing

and controlling duties and responsibilities of junior staff.

2. Assistant Manager

Computer literate and should have knowledge bin surveying software, who will perform in

reporting anything bro manager incharge of company when the manager is not around.

3. Supervisor

Will assist the manager to run the business, by allocating duties, ordering of stock, super vise
the junior employees, account for the salaries of the junior and assist i drafting of rules and
governing laws.

4. Secretary
Should have certificate in secretarial.The duty will be typing and clearing with the customers
before entering the main office
5. Watchman
Must be a man aged 22 years and above from recognized security company, the duty will be
guading the premises, investigating and reporting crimes.

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3.3 RECRUITMENT, TRAINING AND PROMOTION
The recruitment of employees will be done through advertisement and posting in the job
description. Those to be recruited are to present their curriculum vitae. Those who are
shortlisted by managers should then be interviewed.
3.4 REMUNERATION AND INCENTIVES
The amount paid to employee’s productivity, handwork, devotion and profitability. These
will lead to increment with the business progress.
JOB TITLE NUMBER OF TOTAL MONTHLY
EMPLOYEES SALARY
Manager 1 40000
Assistant manager 1 35000
Secretary 1 10000
watchman 2 8000
Total amount 148000
3.5 LICENSE, PERMITS AND BY-LAWS

The business should obtain trading license from ministry of housing, urban and development.

The county license will be obtained from multicipal council. The bylaws include registration

and the business ACT which will safeguard the business name.

3.6 SUPPORT SERVICE

The business will open an account with equity bank Eldoret branch because it is nearest and

enhance security. It will take Britam insurance so as to cover the business from any business

risk.

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 CHAPTER FOUR
4.0 OPERATION / PRODUCT PLAN
4.1 PRODUCTION OR SERVICE DESIGN AND DEVELOPMENT
This is where the conversion of raw material into final product. The manager will also
responsible for the design she will also carry out research about the new design from other
business in industry, magazine and seminars if possible.
4.2 PRODUCTION, FACILITY AND CAPACITY
This comprises of machines, tools, premises, instruments, plans, maps and field data
collection that affects the whole of the production process.
4.3 PRODUCTION OR SERVICE STRATEGY
Since Impala equipment’s Company will be dealing with survey products, the raw materials
required include: survey plan for deed plan preparations since the information on the survey
plan are essential for part development plans (PDP) , mutation forms, registry index maps
(RIM) etc.
4.4 REGULATIONS AFFECTING OPERATION
There are regulations that must be adhering to before the registration of any
business ,include; those that ensure safety of employees and customers in the premises
include; sickness, accidents etc. they include sanitary facilities, toilets, water taps, overall,
etc.
4.6 EQUIPMENT AND MATERIALS
The business will require equipment and materials in order the meet customer's
services.These are materials include; tape measure,Total station, Tripod stand, Ranging rod,
Computer, Printer, Photocopier, 2 Hand GPS, Panga, Scale rule, and scientific calculator.

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 CHAPTER FIVE
5.0 FINANCIAL PLAN

5.1 PRE-OPERATIONAL COSTS

The costs that the business will incur before the start of the business operations

ITEM AMOUNT
Goodwill (if any) 3,000
Rent deposit 4,000
Renovations 6,000
Installation costs 3,000
Water deposit 3,000
Electricity deposit 12,000
Telephone deposit 4,000
Licenses 1,500
Permits 1,500
Others (protective clothes) 2,000
Total 40,000

5.2 ESTIMATED WORKING CAPITAL

Working capital = current assets – current liabilities

ITEM YEAR 1 YEAR 2 YEAR 3

ASSETS
Cash at hand 400,000 350,000 420,000
Cash at bank 100,000 150,000 200,000
Debtors 20,000 15,000 10,000
TOTAL 420,000 515,000 630,000
LIABILITY
Bank loan 200,000 150,000 200,000
Trade credits 50,000 30,000 10,000
Bank overdraft - 5,000 -
TOTAL 250,000 185,000 210,000

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WC = CA- CA
YEAR 1 = 420,000 – 250,000
= 170,000
YEAR 2 = 515,000 – 250,000
= 330,000
YEAR 3 = 630,000 – 210,000
= 420,000
5.2.1 WORKING CAPITAL
ITEM YEAR 1 YEAR 2 YEAR 3

Stock of raw materials 800,000 1,000,000 1,200,000

Stock of materials in progress 3,050 5,000 80,000

Stock of finished goods 40,000 60,000 60,000

Debtors 8,000 10,000 12,000

Cash at hand and in bank 20,000 25,000 30,000

Creditors 2,000 4,000 6,000

TOTAL 853,050 1,104,000 1,388,000

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 5.3 BUSINESS PLANED CASH FLOW

5.3.1 IMPALA EQUIPMENTS CASH FLOW FOR THE YEAR ENDING AS AT 31ST DECEMBER 2022

ITEM/MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Balance b/f 69,000 70,000 71,050 72,050 72,500 73,000 75,050 80,000 82,175 83,000 83,050 830,875
Capital introduced 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 570,000
Cash sales 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000 36,000 38,000 44,000 46,000 380,000
Credit sales 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 55,000
Total cash inflow 42,000 141,000 154,000 167,000 70,050 192,500 195,000 194,550 212,000 220,675 23,000 271,500 22,067,750

CASH OUTLOW
Purchases 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 1,260,000

Debtors 8,000 4,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 162,000
Salaries 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Electricity 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 210,000
Water 3,000 3,020 3,040 3,060 3,080 4,000 4,020 4,040 4,060 4,080 5,000 5,020 45,420
Licenses 1,500
Telephone 4,000 4,050 4,060 4,070 4,080 4,090 5,000 5,550 5,580 6,000 6,050 7,000 62,950

Advertisement 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 101,700

Insurance 1,000 1,000 1,100 1,100 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 15,200

Transport 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 30,600
Loan pay 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 126,000
Postage 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 81,000
VAT 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Total output 111,000 124,170 225,050 239,500 242,550 265,500 279,050 278,550 294,175 303,670 308,450 312,600 2,665,146

NET cash 69,000 70,000 71,050 72,050 72,500 73,000 75,050 80,000 82,175 83,000 83,050 84,000 914,875

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 5.3.2 IMPALA EQUIPMENTS CASH FLOW FOR THE YEAR ENDING AS AT 31ST DECEMBER 2023

Particulars Jan Feb March April May June July Aug Sept Oct Nov Dec Total
Balb/f 78700 59800 73000 70000 85900 78100 63400 85000 66000 83900 89200 75500 908500
Sales 90000 80000 10000 100000 110000 80000 100000 98000 103500 90000 80000 10000 780000
0 0
Debtors 50000 4000 5000 2000 3000 2000 1000 7000 6000 3000 2000 7000 47000
Total 15000 114000 10500 122000 113000 10200 121000 10700 120000 12300 112000 12700 1377000
0 0 0 0 0 0
Purchases 10000 12000 10000 10000 10000 13000 10000 12000 12000 12000 10000 14000 135000
Networking 12000 12000 12000 14000 12000 10000 10000 10000 12000 10000 12000 14000 140000
Electricity 3000 3000 3000 2500 2000 2500 2400 3000 3000 2800 3000 3000 33800
License 3000 - - - - - - - - - - - 3000
Creditors 5000 4000 - - - 4000 4000 5000 4000 - - 5000 31000
Water 1200 1000 1500 1000 1400 1200 1000 1000 1100 1000 1500 1400 14300
Repair & 1000 - - 1500 - 1000 - 1000 - - - 1500 6000
maintenance
Rent 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
Advertisement 2000 - - - 1000 - - - 1000 - - 2500 6500
Refreshments 5000 6000 6000 4000 5000 4000 5000 6000 6000 5000 7000 8000 67000
Total Exp 45200 41000 35000 36100 34900 38600 36000 41000 42100 33800 36500 85240 472600
Net profit 59800 73000 70000 85900 78100 63400 85000 66000 83900 89200 75500 74600 904400
Cumulative bal 59800 132800 20280 288700 366800 43020 515200 58120 665100 75430 829800 90440
0 0 0 0 0

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 5.3.2 IMPALA EQUIPMENTS CASH FLOW FOR THE YEAR ENDING AS AT 31ST DECEMBER 2024

Particulars Jan Feb March April May June July Aug Sept Oct Nov Dec Total
Balb/f 74600 54000 82800 74500 73100 72500 85800 54500 65500 70500 75000 56100 8389000
Sales 70000 78000 84000 79580 85553 90500 98050 100000 129000 115000 98000 23920 125783
Debtors 3000 2500 4500 - 4500 9000 - 4500 - - - 2000 30000
Total 103000 122500 114500 120000 134500 129000 100000 104500 110000 120000 100000 120000 1380000
Purchases 14000 12000 10000 14000 15000 14000 12000 13000 14000 15000 12000 12000 157000
Networking 10000 12000 14000 12000 12000 10000 15000 10000 10000 12000 12000 10000 139000
Electricity 2000 2500 2000 2200 2300 2000 2500 2500 2500 2000 2400 2500 27400
Rent 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
License 3000 - - - - - - - - - - - 3000
Water 1000 1200 1000 1200 1200 1200 1500 1000 1000 1000 1000 1200 13500
Repair & 1000 - - 1500 - 1000 1000 - - 1000 1500 1500 8500
maintenance
Refreshments 6000 5000 5000 6000 7000 6000 5000 5000 5000 6000 6000 6000 68000
Advertisement 4000 - - 2000 2000 - 1000 - - - 1000 2000 12000
Creditors 5000 4000 5000 5000 5000 6000 5000 4000 4000 5000 6000 6000 59000
Total 49000 39700 40000 46900 47500 43200 46000 38500 39500 45000 43900 44200 523400
Bal b/d 54000 82800 74500 93100 87000 85800 54000 66000 705000 75000 56100 77800 856600
Cumulative bal 54000 136800 211300 284400 371400 457200 511200 577200 64700 722700 778800 856600

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5.4 PROFORMA INCOME STATEMENT

ITEM 2022 2023 2024

Sales 400,000 500,000 550,000
Cost of goods 2,800,000 3,500,000 4,370,000
GROSS PROFIT 3,209,000 4,000,000 4,850,000
EXPENSES
Wages/ salaries 180,000 185,000 190,000
Rent 24,500 24,000 24,500
Water 45,400 45,000 45,000
Telephone 160,000 16,000 16,000
Electricity 210,000 23,000 24,000
Advertising 101,700 100,000 90,000
Stationary 2,500 2,600 27,000
Postage 36,000 36,000 36,000
Transport 35,000 37,000 37,500
Repairs 87,000 80,000 70,000
Interest 15,300 16,000 16,500
Cleaning 12,000 15,000 13,000
Depreciation 4,000 5,000 4,500
Professional service 3,000 2,500 4,000
License 1,500 1,500 1,500
TOTAL 584,400 612,000 650,000
EXPENSES
Profit before tax 2,615,600 3,388,000 4,200,000
Tax provision (10%) 261,560 338,800 420,000
NET PROFIT 261,560 338,800 420,000
AFTER TAX

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5.5 PROFORMA BALANCESHEET – IMPALA EQUIPMENTS

ITEM Opening date End of Yr. 1 End of Yr. 2

ASSETS
Current assets
Cash at hand 600,000 650,000 500,000
Bank 50,000 100,000 150,000
Debtors 20,000 15,000 10,000
Stock of finished goods 120,000 130,000 140,000
Stock of work in progress 10,000 10,500 8,000
Stock of raw materials 8,000 8,500 9,000
Total current assets 808,000 914,000 817,000
Fixed assets
Machinery and equipment 50,000 40,000 45,000
Furniture and fittings 6,000 6,500 4,000
Total fixed assets 56,000 46,500 49,000
TOTAL ASSETS 864,000 960,500 866,000
LIABILITIES
Current liabilities 160,000 150,000 135,000
Creditors 50,000 40,000 50,000
Others 4,000 4,500 3,800
TOTAL CURRENT LIABILITIES
Long term liabilities 150,000 145,000 150,000
Bank loan 400,000 350,000 290,200
Capital employed 200,000 271,000 237,000
Profit
TOTAL LIABILITIES 864,000 960,500 866,000

5.6 BREAK EVEN POINT

5.6.1 Contribution margin = Total – variable cost

YEAR SALES TOTAL GROSS

COST PROFIT
2021 400,000 584,400 3,200,000
2022 500,000 612,000 4,000,000
2023 550,000 650,000 4,850,000

Contribution margin % age = contribution margin × 100%

Total sales

15
Year 2022 = 584,400 × 100%
400,000
= 146.1 %
Year 2023 = 612,000 × 100%
500,000
= 122.4%
Year 2024 = 650,000 × 100%
550,000
6.6.3 TOTAL EXPENSES
YEAR KSH
2022 584,400
2023 612,000
2024 650,000
6.7 PROFITABILITY RATIOS

RATIO TYPE WORKING 2022 2023 2024

FORMULA
Gross profit ratio Gross profit × 100 46.1% 22.4% 18.2%
Total sales
Return on equity Net profit after tax × 100 369.31% 327.3% 265.23%
Owners’ equity
Return on Net profit after tax + 221.59% 364.26% 51.8%
investment interest × 100
Total investment

6.8 DESIRED FINANCING

ITEM AMOUNT
Pre- operational costs 320,000
working capital 420,000
Fixed assets 560,000
Total financing requirements 1,400,000

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