BUSINESS PLAN

ETYANG BRICK FIRM

P.O. BOX 229

ADUNGOSI

TEL 0718014187

E-mail address: etyangbrickfirm@gmail.com

PRESENTED BY: ONOO ETYANG MOSES

INDEX NO: 5031111995

COURSE CODE: 2705

PAPER CODE: 2705/305

CENTER NAME: KITALE NATIONAL POLYTECHNIC

PRESENTED TO: THE KENYA NATIONAL EXAMINATIONS COUNCIL

IN PARTIAL FULFILMENT FOR THE AWARD OF DIPLOMA IN

BULDING TECHNOLOGY

SUPERVISOR: MR. SIMION ODENYO

i
SERIES: July 2024

DECLARATION
I declare that this writing is my own views and opinions concerning the proposed
business, without any duplication and therefore nobody is entitled to dubbing from
this handout
NAME :
SIGNATURE:

NAME OF SUPERVISOR:
DATE………………………….
SIGNATURE…………………….

ii
DEDICATION
I dedicate this project to my beloved family members for their financial and moral
support.

iii
ACKNOWLEDGEMENT
I would like to acknowledge the financial support and constant encouragement from
my family for the love time, also I pass gratitude to my supervisor for his constant
guidance in the course of writing this proposal. Finally, I thank my colleague and
Almighty God for the gift of life and this far success.

Table of Contents
DECLARATION.........................................................................................................ii
DEDICATION............................................................................................................iii

iv
ACKNOWLEDGEMENT...........................................................................................iv
EXECUTIVE SUMMARY........................................................................................vii
BUSINESS DESCRIPTION......................................................................................vii
MARKETING PLAN................................................................................................vii
ORGANIZATIONAL AND MANAGEMENT PLAN.............................................vii
OPERATIONAL / PRODUCTION PLAN................................................................vii
CHAPTER ONE...........................................................................................................1
1.0 BUSINESS DESCRIPTION................................................................................1
1.1 BUSINESS NAME................................................................................................1
1.2 BUSINESS ADDRESS..........................................................................................1
1.3 BUSINESS LOCATION......................................................................................1
1.4 FORM OF BUSINESS OWNERSHIP..................................................................2
1.5.0 THE NATURE OF THE BUSINESS.................................................................2
1.6 PRODUCTS AND SERVICES..............................................................................2
1.7 INDUSTRY............................................................................................................3
1.8 JUSTIFICATION OF BUSINESS OPPORTUNITY............................................3
1.9 ENTRY AND GROWTH STRATEGY.................................................................4
1.10 BUSINESS GOALS.............................................................................................4
CHAPTER TWO..........................................................................................................5
2.0 MARKETING PLAN.............................................................................................5
2.1 CUSTOMERS........................................................................................................5
2.2 MARKET SHARE.................................................................................................5
2.3 COMPETITION.....................................................................................................7
2.4 ADVERTISING AND PROMOTION STRATEGIES..........................................8
2.5 PRICING METHODS............................................................................................9
2.6 SALE TACTICS....................................................................................................9
2.7 DISTRIBUTION STRATEGY............................................................................10
CHAPTER THREE....................................................................................................11
3.0 MANAGEMENT AND ORGANIZATION PLAN.............................................11
BUSINESS MANAGER............................................................................................11
3.2 OTHER PERSONNEL, NUMBER AND DUTIES.............................................11
3.3 RECRUITMENT, TRAINING AND PROMOTION..........................................14
3.4 PROMOTION......................................................................................................15
3.5 REMUNERATION AND INCENTIVES............................................................16
3.6 INCENTIVES.......................................................................................................16
3.7 SUPPORT SERVICES.........................................................................................16
CHAPTER FOUR......................................................................................................18
4.0 PRODUCTION/OPERATION PLAN.................................................................18
4.1 PRODUCTION/OPERATIONAL FACILITIES AND CAPACITY..................18
4.2 PRODUCTION/OPERATION STRATEGIES....................................................20
4.4 GOVERNMENT REGULATIONS AND BY-LAWS........................................21
CHAPTER FIVE........................................................................................................22
5.0 FINANCIAL PLAN.............................................................................................22
5.1 BALANCE SHEET..............................................................................................22
5.2 CASH FLOW PROJECTION..............................................................................23
5.3 BREAK EVEN ANALYSIS................................................................................24

v
5.4 PROFITABILITY RATIOS.................................................................................25
5.5 PROPOSED CAPITALIZATION........................................................................26
5.6 ESTIMATED WORKING CAPITAL.................................................................27
APPENDIX I: BUSINESS LOGO.............................................................................28

vi
 EXECUTIVE SUMMARY

BUSINESS DESCRIPTION
The name of proposed business is brick Etyang brick firm. It will be operating under

sole proprietorship

MARKETING PLAN
The proposed business will target consumers, potential, individuals, institution and

Commercial customers. The market share will be 40 % because of the target

population.

ORGANIZATIONAL AND MANAGEMENT PLAN

The business will employ general manager, Etyang brick firm manager, Accountant,

Secretary, sales man, watchman and Driver. The selected personnel will be trained

and recruited by the manager.

OPERATIONAL / PRODUCTION PLAN

There will be required equipment to enhance offering of quality services to consumer

production facilities will monthly materials requirement will amount to 12,000

monthly

OPERATIONAL / PRODUCTION PLAN

There will be required equipment to enhance offering of quality services to consumer

production facilities will monthly materials requirement will amount to 12,000

monthly

vii
 CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1 BUSINESS NAME

The name of the business is ETYANG BRICK FIRM. The name was derived from
an English word meaning the Brick the product will be at a reduced price compared
to the market price. I decided to choose the name because
- It is easy to pronounce while reading the name.
- it is unique
- it is attractive
- business logo

1.2 BUSINESS ADDRESS

The business address will be contacted by the following address
ETYANG BRICK FIRM
P.O. BOX 229
ADUNGOSI
TEL 0718014187
E-mail address: etyangbrickfirm@gmail.com

The cost involved will be;

Post office rental box KSH 2,000
Signboard KSH 1,000
Telephone KSH 15,000
Total KSH 18,000

1.3 BUSINESS LOCATION

The business shall be located at Alomodoi village, along Malaba-Busia road and
250m off the main road, town opposite St. Monica secondary school.

1
Reasons for choosing the location
- accessibility of water supply
- availability of raw maternal
- availability of labor
- accessibility of equipment
- availability of customers
- good infrastructure
For more information refer to append 3 for a sketch map of business location.

1.4 FORM OF BUSINESS OWNERSHIP

The business will be sole proprietorship; it will be owned by a single person. On the

other hand, the business will have some advantage like;

1. There will be easy decision making

2. The proprietor will be the manager of the business.

3. It will be easier to start, as it requires little capital to start.

4. There will be secrets therefore the weakness and strength of the business

will remain private.

5. The proprietor will be able to contact customers easily and understand

their needs better.

1.5.0 THE NATURE OF THE BUSINESS

The business shall deal with the production and supply of bricks, I have decided to
venture into this kind of business because it is not concentrated in the region

1.6 PRODUCTS AND SERVICES

The business shall offer the following;
- packed bricks

2
- already made bricks
The services offered shall be;
- transportation

1.7 INDUSTRY
The business fall under building industry, I have decided to choose this business
because the area has low concentration similar industries.

1.8 JUSTIFICATION OF BUSINESS OPPORTUNITY

I have chosen this kind of business because of the following reasons;
Security
There is a lot of security in the town compared to rural areas because I will employ
watchman, acquire insurance policy and also will have public security both at night
and during daytime.

Infrastructure
The town is accessible to the good roads from different places like Busia and
Malaba.

Financial sources
The business will get capital from friends, own savings and family members and
through bank loans.

Labor
In Adungosi there exist large populations of youth who can be employed to run the
business.

3
Location
The presence of good communication network availability of good road network,
availability of raw materials accessibility of water supply, there is no competition
thus there is no other big brick firm to compete with.

1.9 ENTRY AND GROWTH STRATEGY

I intend to commence the business from January in the year 2026. The methods that
he will use to introduce the business into the market and penetrate include
advertisement through posters, signboards and radio. The cost to be incurred will be
as follows;

GROWTH STRATEGY
I will expand the business as follows;
i) I will open another Etyang brick firm at Webuye in four-year time. This will
cost me Ksh100,000. This money will be the profits saved.
ii) I will buy my own vehicle in which I will involve in transportation services
which will cost me Kshs200,000 this shall take off in the year 2030.
The source of capital shall be from profits and personal savings

1.10 BUSINESS GOALS

The following will be the goals of the business;
- to generate more income
- to improve my living standards
- to improve my social status
- to create employment to people and myself

4
 CHAPTER TWO

2.0 MARKETING PLAN

2.1 CUSTOMERS
The location of the customers will be specifically Adungosi areas in Busia. The
business will be dealing with the following customers in the offering of the services
and products.

Domestic customers
These are customers who buy goods for their own use. The business will have the
customers within Adungosi areas.

Institutional customers
These are customers who buy goods in large quantities like schools, colleges and
other institutions; they include Busia referral hospital, schools e.g St Monica
secondary school, Nambale boys, Busia Sugar Company and collages and all that are
within the area.

Commercial customers
These are customers who buy goods with the intention of reselling to make more
profit. The business will be selling goods to wholesaler’s and retail.

2.2 MARKET SHARE

According to the expectation of the business, the market size is 50,000 people.
ETYANG BRICK FIRM will occupy a percentage of 40% from the share. The
shares will be distributed among other on the pie chart
ETYANG BRICK FIRM = 40%
40 x360
100
= 144º

5
Sunrise brick firm= 20%
= 20 x 360
100
= 72º
Wonder loaf = 25%
= 25 x360
100
= 90º
Sandwich= 15%
15 x360
100
= 54 º
Business Market share (%) Degree
Etyang brick firm 40 144 º
Sunrise brick firm 20 72 º
Wonder 25 90 º
Sandwich 15 54 º

6
STRENGHT AND WEAKNESSES TABLE
BUSINESS STRENGHT WEAKNESS REMARKS
NAME
ETYANG  has managerial  no vehicle  need to buy a
BRICK FIRM skills car
 has skilled
personnel
SUNRISE  Prominent  No customers  Offer after sale
BRICK FIRM service to
attract more
customers
WONDER  Financially stable  No vehicle  Sell frequently
LOAF BRICK  Many employees  Seasonal
FIRM

SANDWICH  Enough stock  Skills in  Need more

BRICK FIRM financial money to
management operate the
business

2.3 COMPETITION
The business will be dealing with direct and indirect competitors
Direct competitors
These are businessmen who offer same products to some customers. They sell their
products at low prices to the customers eg. Concrete blocks.

7
2.4 ADVERTISING AND PROMOTION STRATEGIES
Advertising methods
There are some advertising methods that I will use to advertise the business. These
include;

Posters
I will advertise through posters whereby he will print many and distribute all over
the region; district and province to enable everyone to read and be aware.
Newspapers
I will also advertise news through newspaper to enable people to read know
particularly where the business is located
Public functions
This is whereby I will ensure that the report reaches the chiefs, sub chiefs, district
officers so that when they are holding a congregation e.g harambees, they announce
to people about the business no cost involved.

Sign board
This is whereby the signboard is able to act as an advertisement because these people
who do not know can easily read on the signboard across the road.
The cost involved in advertisement

Method Cost (KSH)

Posters 1000
Newspapers 10,000
Signboards 1,000
Total 12,000

PROMOTION METHODS
The business will have various promotions to enable people to buy the product.
These promotions include;
Providing discounts

8
For the business to prosper, I will ensure that when customers purchase products,
there will be discount thus the price will be less from the product price
The costs involved in promotions include;

2.5 PRICING METHODS

The business will have various methods of pricing, which as follows;

Market pricing
This is the pricing of products according to the general trend on the commonest
price. The business will ensure that the prices of its products are the agreed price all
over the market or less than the market price but not higher.

Cost plus pricing

Pricing according to the cost of production or operation in the business will ensure
that if the cost of production is increased, the price of the product will increase to
avoid the business running at loss.

Competitive pricing
This pricing is influenced by the competitors thus one finds out how much the
competitors are charging them. The business will ensure that it does some
competitive pricing so that it may sell a lot of products and get more profit

Psychological pricing
This is a descriptive pricing whereby it is intended to deceive the customers that the
price is low. The business will use this method so that the customers will buy
knowing that the price is reduced but not e.g instead of selling at KSH 10 it will be
sold at KSH 8.

2.6 SALE TACTICS

The business will have to offer different type of selling methods these will include;

9
Direct selling
This is the selling where I will sell products direct to customers the business will be
selling the products directly to customers who are close to the business or who wish
to buy in the etyang brick firm.

Indirect selling
This is selling of products by use of agents. The business will ensure that it has
enough vehicles or Lorries which will be transporting products to the required places
e.g like in schools, collages, hospitals and other places.
The techniques which will be in use include;

2.7 DISTRIBUTION STRATEGY

Etyang brick firm

Consumer

10
 CHAPTER THREE

3.0 MANAGEMENT AND ORGANIZATION PLAN

BUSINESS MANAGER
The business shall be headed by a manger and this post shall be held by the owner
who is Etyang. I will be part of the management where we will work together to
attain goals of the business.
Duties
- make major decisions of the business
- general recruitment of the employees
- drawing of plans to the business
- coordinating all the activities of the business
- assigning duties to the employees

Actual qualification
- Certificate in business management
- Age 20 years old
- 4 years of experience
- O-level mean grade of C plain and above
- Sex preferably male

3.2 OTHER PERSONNEL, NUMBER AND DUTIES

The following are the personnel needed in the management of the business.
i) Assistant manager
ii) Cooks
iii) Drivers
iv) Watchman

11
SALESMEN
Qualifications
- O level mean grade of D+
- Certificate in sale and marketing
- Should at least have three years of experience in business field
- Be over 25 years of age
Duties
- Sell products to the customers
- Advertising the business all over the area
COOKS
QUALIFICATION
- Should have experience of 3 years
- Certificate in catering
- O level mean grade of C-
Duties
- should be able to cook all types of food including baking, frying and boiling

WATCHMAN
Qualifications
- At least 2 years of experience
- Be over 30 years of age
Duties
- maintain security in the business
- providing peace whenever there is a problem in the business or with employees

CLEANERS
Qualifications
- level certificate
- Mean grade of D plain
- Have two years working experience
Duties

12
- Cleaning the compound
- Drain all the stagnant water and slashing grass in the compound.
- Weed flowers

STOREMAN
Qualifications
- have good relations with other staff
- O level mean grade of D+
- Should have the experience
- Should have good public relation
Duties
- In charge of all the equipment in the Etyang brick firm/business
- Should ensure there is enough stock
- Ensure that all products are kept well

DRIVER
Qualifications
- mean grade of D+ and above
- 3 years of experience
- Have a certificate of good conducts
- Have a clean driving license from a recognized driving school

13
THE MANAGEMENT STRUCTURE OF THE BUSINESS

Mangers

Salesman

Driver

Cleaner Cook Watchman

3.3 RECRUITMENT, TRAINING AND PROMOTION

3.3.1 Recruitment
The business will be advertising the business through the Deint Barazas use of media
and newspaper, posters so that if anyone will hear. He will be able to apply. In the
selection of the employs the manger will have to use a method of interview where
the applicants will be interviewed, those with relevant qualifications will be
recruited.
The newly recruited employees will be introduced to the business environment by
teaching them on how to use materials products in the Etyang brick firm. They will
also be introduced to the business by providing them a supervisor who will be
guiding them.

3.3.2 Training

14
The training programs for the business employees will be;

a) Through the seminars

As a manager, I will allow the employees to attend seminars where they will be
thought more concerning the business.
b) Those employees who had lower certificate grade will be provided with further
training for example if the accounts clerk had not passed well, he/she will be
provided with higher education
c) Provision of external training
d) Provision of job training: this is where one does not have skills, so they will get
skills as they work.

3.4 PROMOTION
The promotion will be done on merit and performance, this will be done by
increasing for them salary.
Also,
there will be promotion for work when an employee is working well he/she will be
promoted from one level to another e.g from the cleaner to a supervisor.

15
 3.5 REMUNERATION AND INCENTIVES
Title No Basic Pay House Gross Total
Allowance Salary amount
Manager 1 2500 500 2500 3000
Salesman 1 2100 400 2100 2500
Store man 1 1700 300 1700 2000
Cook 1 1300 200 1300 1500
Drivers 1 1200 100 1200 1300
Watchman 1 1200 200 1200 1400
Cleaner 1 1000 100 1000 1100

Total 7 12,800

3.6 INCENTIVES
The following incentives schemes will be available to the workers
Medical allowance
This is the amount of money to be used to pay the hospital arrears if any employee of
the business gets stick. It will only be provided if any employee becomes sick while
at work.

3.7 SUPPORT SERVICES

Banking services
The money got from the business will be taken to the savings account and current
account with the commercial bank Busia Branch

Advisory services
The business will provide advice to the employees whenever they have gone wrong
or they have a problem

16
Security services
The business will have a high security from insurance also from the surrounding
whereby there will be a watchman to take care of the business.

Medical insurance
This will help in promotion of treatment to the employees in case they become ill.
The cost involved in the support services includes;

Banking services KSH 10,000

Advisory services KSH 8,000
Medical insurance KSH 8,000
Security services KSH 26,000

17
 CHAPTER FOUR

4.0 PRODUCTION/OPERATION PLAN

4.1 PRODUCTION/OPERATIONAL FACILITIES AND CAPACITY

For the business to run smoothly, the following operational facilities and capacity
will be needed as in the table below;
Item Qty Description Mode of Cost
acquisition
Land 1 One acre Inheritance -
Vehicle 3 From second Purchase 600,000
Building Permanent Inheritance -
Chairs 20 Wooden Purchase 15,000
Tables 10 Wooden Purchase 10,000
Boots 3 Leather Purchase 70,000
Oven 10 Metal Purchase 5,000
Crates - Plastic Donations -
Refrigerators 5 Metal Donations 10,000
Brooms 2 Fiber type Purchase 500
Weigh machine 10 Metal Purchase 5,000
Total 730,000

18
 BAKING
MANAGERS ROOM
OFFICE

STORE
ROOM

SECRETARY’S
ROOM

MANAGER’S
OFFICE
SALESMAN
OFFICE

ACCOUNTS
CLERK

STAFF
ROOM
Emergency
door

PARKING
ROOM SECURITY
OFFICE

ENTRANCE

19
Item Cost
Tours 10,000
Seminars 10,000
Promotion 20,000
Worker’s uniforms 10,000
Servicing the vehicles 25,000
Electricity bills 10,000
Tools and furniture repair 15,000
Total 100,000

4.2 PRODUCTION/OPERATION STRATEGIES

The business will provide the following strategies to ensure maximum success in the
business;
Quality products
It will ensure that the business provides quality products and good grades so that it
attracts more customers
Time management
The business will ensure the employees report at work early every morning all days
and ensure that employees work on shifts as expected because the business is a
continuous process.
Increment of salaries
Employees will be given a certain percentage according to the work they do. This
will ensure the smooth running of the business and will also encourage them to be
hard working `
Offering credit facilities
The business will ensure that it offers credit facilities to the customers especially to
institutional customers and commercial who buy goods in large quantities

20
Step I purchasing/ordering of products
Purchases will be done first.
Step II loading
Brick to be loaded to a lorry
Step III transportation
Materials are transported to the required destination

4.4 GOVERNMENT REGULATIONS AND BY-LAWS

The business will operate under the following government rules and regulations;
Licensing
The business will have to get a trade license from the county council to enable it run
well without any problem.
Public health
The business will ensure that;
- It provides cleanliness to the equipment used e.g trays, for carrying bread before
parking
- provisions of uniforms to the workers
- provision of building hygienic latrines
- repainting of buildings after some years
- ensuring that the building, the floor and the compound is clean

Insurance policy
The business will ensure that it will be given an insurance cover. This will help in
case there will be dangers in the business. The business will repay what many have
got lost.
Employment
The underage worker will not be employed. Also, workers will be employed and
give the position according to their qualifications
Trade union act
Employees will be paid the amount of salary according to their qualifications and
their posts

21
 CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 BALANCE SHEET

Assets KSH Liabilities KSH
Current assets Current liabilities
Cash at hand 300,000 Creditors 50,000
Cash at bank 500,00 Payables 10,000
Stock 65,000
Prepaid wages 15,000
Total current assets 580,000 Total current liabilities 60,000
Fixed assets Long term liabilities
Land 300,000 Owner’ s equity 1,895,000
Building 150,000
Vehicle 600,000
Furniture & fittings 25,000
Total fixed assets 1,075,00
Total assets 1,955,000 Total liabilities 1,955,000

22
MONTH/ JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTA
ITEM
Opening 80000 793000 783000 777000 771500 751000 80490 10000 80800 958140 954200 82150 958140
balance 0 0 0 0 0
Sales 10000 95000 90000 80000 100000 90000 95000 99000 80000 95000 99000 99000 200900
0
Purchases 89000 85000 75000 65000 70000 6000 60000 65000 78000 70000 65000 80000 115900
0
Electricity 1000 800 1200 1500 1000 600 8000 1200 800 1200 1150 1050 853000
Wages 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 11000
License 4000 - - - - - - - - - - - 4000
Postal 500 500 500 500 500 500 500 500 500 500 500 500 6000
services
Advertisem 2000 - - - - - - - - - - - 2000
en
Water 300 300 300 300 300 300 300 300 300 300 300 300 3600
Transport 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
Total cash 10650 307500 393500 484500 564100 644100 72930 91800 99500 8400 84900 99000 242760
out flow 0 0 0
Surplus 21180 307500 393500 564100 644400 729300 82830 91880 10410 114780 758400 11400 -
0 0 0 0 00 0
Accumulat 10650 105300 95700 86000 90500 80100 80300 84900 99000 90500 85300 85.00 -
ed 0

5.2 CASH FLOW PROJECTION

23
5.3 BREAK EVEN ANALYSIS
STEP I LIST OF ALL EXPENSES
EXPENSES AMOUNT (KSH)
Cost of goods sold 894,000
Water 6,000
Postal service 2,000
Advertisement 8,400
Insurance 4,000
License 180,000
Salaries 10,000
Electricity 36,000
Other services 3,600
Total 1,144,000

Sales = 1,118,000
Step II VARIABLE COST
Expenses Amount (KSH)
Cost of goods 894,400
Sold advertisement 2,000
Electricity 10,000
Water 3,600
Postal services 6,000
TOTAL 916,000

FIXED EXPENSES
EXPENSES AMOUNT (KSHS)
Salaries 180,000
Insurance 8,400
License 400
Total 192,400

24
Step III
Dividing variable expenses by sales and then multiplies by one hundred percent
= total variable expenses x100
1118000
= 91600
1188
= 81.9
= 82%
Step IV
Subtracting the divided percent from hundred percent
100% - 82%
= 18%
Step V
Dividing the fixed expenses by the difference
192400 x100
18
= 1068888.9
= 1068889
Break an even point = 1068889 (November and December)

5.4 PROFITABILITY RATIOS

Return on sales
= profit
Sales
= 639400 = 0.57
= 1118000 = 0:0:57
Return on assets
= profit
Total assets
= 639400
1895000

25
 = 0.33
= 0:3:33
Return on equity
= profit
Equity
639400
1895000
= 0.34
= 1:0:34

5.5 PROPOSED CAPITALIZATION

Pre-operational cost
Item Amount
Advertisement 2,000
License 4,000
Vehicle 60,0000
Chairs 15,000
Tables 10,000
Boots 70,000
Oven 5,000
Crate 500
Brooms 10,000
Weigh machine 5,000
Cutlery 10,000
Total 731,500

26
5.6 ESTIMATED WORKING CAPITAL
= current assts – current liabilities
= 880000 – 60000
= 820,000
Proposed capitalization
= working capital + pre-operational cost
= 731500 + 820000
= 1,551,500
5.7 DESIRED FINANCING
Source Amount
Personal savings 387,875
Donations 387,000
Family and friends contributions 775,750
Total 550,625

27
APPENDIX I: BUSINESS LOGO

28