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SERI
ES:NOVEMBER
1
DECLARATI
ON
I ODI
WUOR HES BONE,her
ebydecl
aret
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k her
e bot
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yle and
subst
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ect
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.NCAN OTI
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edge and has nev
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ed t
o any
exami
nat
ionbody
.

NAME:
ODI
WUORHESBONE

SI
GNATURE:
___
___
___
___
___
__

DATE:
___
___
___
___
___
___
___
__

Super
visor

Thi
sbusi nesspl
anhasbeensubmi
tt
edt
oKNEC wi
thappr
ovaloft
hecol
l
ege
super
visor.

NAME:
MR.VI
CTOR

SI
GNATURE:
___
___
___
___
___
___
_

Dat
e:_
___
___
___
___
___
___
___
___
_

Super
visor

DEDI
CATI
ON

Speci
aldedi
cat
iongoest
omybel
ovedpar
ent
sfort
hem bei
ngapi
l
lari
nmyl
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fe,
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other
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ster
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rpr
ayer
,encour
agementandf
inanci
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suppor
twi
thspeci
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easons.

2
 i
i

ACKNOWLEDGEMENT

It
hankt
heAl
might
yGodf
orhi
spr
otect
ion,
gui
danceandbl
essi
ngsal
lthr
oughmy
t
hree y
earcour
set
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owedonme.Myspeci
algr
ati
tudegoest
o
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ent
sfort
hei
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t,mor
alandencour
agementi
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esst
hem al
l
.

3
 Tabl
eofCont
ent

DECLARATION...
...........I
DEDICATION.......
.............ii
ACKNOWLEDGE
MENT..............iii
CHAPTER
ONE................1
1.0 EXECUTIVE
SUMMARY ..........
1.
1Busi
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.8
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0ORGANI SATI ONALANDMANAGEMENTPLAN. ..
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..8
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1ManagementTeam. ..
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.8
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2Other per sonnel ..
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3Recr uitment ,TrainingandPr omot i
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.9
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3.1Recr uitment ………………………. .
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.10
4.
4Remuner at i
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.10
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4.1Remuner ati
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4.2Incent iv es...
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4.
5License, per mi tandby Law...
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5.1Li censes. .
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.11
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5.2Per mit......
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5.3By Laws. .
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..11
4.
6Other
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.11
4.
6.1Banki ngser vices...
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12
KISUMU. ..
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.12
4.
6.2Insur anceser vices..
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4.
6.3Consul t i
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5.
0PRODUCTI ONANDOPERATI ONPLAN. ...
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.13
5
5.
0pr oduct i
onf aci l
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1.2 Mai ntenanceandRepai rs..
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1.1Firm Lay out....
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2Product ionSt rategy ...
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3Product ionPr ocess. .
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4Fact orsaf f
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4.1Heal thr egul ations...
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4.2Saf ety .
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5.
4.3Env i
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6.
0FINANCI ALPLAN. .
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6.
1Pr e–oper ationalCost .
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6.
2Pr ofor maBal ancesheetHESBONE' SFILLING STATI ON st atementf ortheYearEndi ng2023,
2024,and2025………………………………………………………………………. …………………………………………………….18
6.
3Wor kingCapi t al
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6.
4Cashf lowPr oj ections. .
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6.
4PROFORMAI NCOMESTATEMENT. .
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6Br eakEv enAnal ysis..
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6.
6.1Fixedcost …………………………………. ..
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6.
6.2Var i
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6.6.
3Br eakEv enPoi ntf orthr eeConsecut iveYear s..
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.23
6. 7Desi redFi nanci ng..
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6. 8Capi tal i
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6.
9Pr ofitabi l
it
yRat iosf orHESBONES'FI LLING STATI ON f ortheYear2023, 2024and
2025...
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25
CHAPTERSEVEN. ..
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.26
7.
0RI SKMANAGEMENTPROCEDURE. ...
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.26
CHAPTERONE

1.
0EXECUTI
VESUMMARY

Thi
sent
ail
sthedescr
ipt
ionoft
hebusi
nesssetup,t
hroughmar
ket
ingpl
an,
or
gani
zat
ionalpl
an,pr
oduct
ionpl
anandt
henf
inal
l
ythef
inanci
alpl
anwhi
ch
out
lay
showt
hef
inanceswer
ecol
l
ect
ed,usedandt
hegener
alf
inanci
alposi
ti
on
oft
hebusi
nesst
hrought
hespeci
fi
edy
ear
s.

1.
1Busi
nessDescr
ipt
ion.

HESBONES'
FILLI
NG STATI
ON i
sabusi
nessi
ntheener
gyi
ndust
ry.The
busi
nessmi
ssi
oni
stopr
ovi
deener
gyser
vicet
othecommuni
tywi
th
f
avour
abl
epr
icesandqual
i
tat
iveser
vices.Thebusi
nessi
sasol
epr
opr
iet
orshi
p
andi
tisl
ocat
edal
ongKachok-
Kisumut
ownRoadi
nKi
sumuCi
ty.
6
1.
2Mar
ketPl
an

Thi
schapt
erent
ail
sgi
vi
ngt
her
equi
redser
viceswhi
char
epet
rol
eum ser
vicest
o
pot
ent
ialcust
omer
swhoar
eofal
lsoci
alcl
assesandagegr
oups.Themar
kett
o
becont
rol
l
edi
sthewhol
eexi
sti
ngmar
ketaf
teraspeci
fi
edper
iodoft
ime.The
compet
it
ionf
acedal
soi
stobeconsi
der
edasTOTALFI
LLI
NG STATI
ON and
SHELL FI
LLI
NG STATI
ON ar
ethemaj
orcompet
it
orst
obeconsi
der
ed.The
adv
ert
isementpr
ocedur
esar
eal
soment
ionedi
nthi
ssect
ion.

1.
3Mar
ket
ingandOr
gani
zat
ionPl
an

Thi
scov
erst
hegener
alst
ruct
ureofanor
gani
zat
iont
aki
ngi
ntoconsi
der
ati
ont
he
t
op execut
ives,mi
ddl
esuper
visor
swho ar
eMrHesboneOdi
wuorand Mr
s
Mar
ionOdi
wuor
. Thi
s chapt
er al
sodeal
swi
tht
hepr
ocedur
esofr
ecr
uit
ing
member
soft
hey
out
h,t
opr
ovi
desomef
orm ofempl
oymentt
othem,t
rai
ning
andpr
omot
ionalt
echni
quest
obeempl
oyedgear
ingt
otheachi
evement
soft
he
goal
s.Thepl
anf
urt
her
mor
ecov
erst
hel
egalr
equi
rement
swi
thi
nandout
sidet
he
wor
kingenv
ironmentl
i
keensur
ingwehav
eal
lthenecessar
yper
mit
sandal
lthe
t
axesar
epai
dint
ime.Thesuppor
tser
vicest
hathel
psi
nthesmoot
hrunni
ngof
t
hebusi
nessi
sfeat
ured,t
hei
rbr
anches,t
hecostofoper
ati
ng suchser
vice
pr
ovi
der
s and t
he anal
ysi
s oft
he possi
blei
mpact
s oft
he same ser
vices
i
nst
it
uti
onst
othegener
alwel
far
eoft
hebusi
ness.

1.
4Pr
oduct
ionandoper
ati
onPl
an

Thi
schapt
erent
ail
sthepr
ocedur
esort
echni
quest
obedepl
oyedi
nthev
ent
ure
f
ort
hebusi
nesst
ocommenceandpr
osper
.Themat
eri
alst
obeusedar
edeskt
op
comput
er,pumpi
ng machi
nes,cash r
egi
ster
s,mai
ntenance costand r
epai
rs
t
oget
herwi
tht
her
epl
acementmet
hods.I
tal
socov
erst
hei
nsi
del
ayoutoft
he
pr
emi
sest
ounder
taket
hebusi
ness,t
hest
rat
egi
est
obeempl
oyedt
owi
nthe
mar
ketsegment
,mont
hlyexpensesonmat
eri
alsandbel
ow,
itsoper
ati
onpr
ocess
7
i
scov
ered undert
hissect
ion.Ther
egul
ati
onaf
fect
ing t
heoper
ati
oni
sal
so
consi
der
edaswel
l
.

1.
5Fi
nanci
alPl
an

Thi
schapt
erent
ir
elycov
erst
hecost
sincur
redi
nthewhol
epr
ocessf
rom t
hef
ir
st
st
aget
othef
inalst
age.Thewor
kingcapi
talf
orsuccessi
vey
ear
sandpr
oject
ed
cashf
lowsf
ort
hreeconsecut
ivey
ear
sar
eaccount
edf
ori
nthi
ssect
ion.The
i
ncome st
atementf
ort
he t
hree successi
vey
ear
s al
so comput
ed l
ess t
ax
deduct
ion.

Thebal
ancesheeti
sal
sodi
spl
ayedf
ort
het
hreey
ear
s(2023,
2024and2025)
.
Thebr
eakev
enpoi
ntanal
ysi
sisal
soaccount
edf
orbasi
ngont
hef
ixedand
v
ari
abl
ecost
sint
hebusi
ness.
Theprofit
abi
li
tyr
ati
osarealsocal
culatedi
nthisar
earangingfrom gr
ossprof
it
rati
o,r
eturnonequi
tyt
oreturnoninvestment
s.Thedesir
edf i
nanceandthe
proposedcapi
tal
stobeinvestedi
nthebusinessar
ealsocomput edtoget
her.

8
 5CHAPTERTWO

2.
0BUSI
NESSDESCRI
PTI
ON
Theproposedbusi
nesswil
lbeafil
li
ngstat
ioncentert
hatisai
mingatpr
ovidi
ngthel
ocal
motoruserswi
thpetr
oleum pr
oductoft
hehighestqual
it
yatfai
randaff
ordabl
epri
ces.

2.
1TheSponsor
IHesbonet hesponsoroftheaboveproposedbusiness;I
’m 23year
soldofage
andaChr ist
ianbyrel
igi
on.I’
m notmarri
edandaKeny anci
ti
zenbybirt
hwho
resi
desinKi sumuCounty.Academical
ly
,thesponsoriscurr
entl
ytaki
ngacourse
i
nKI SUMUNATI ONALPOLYTECHNI Cpursui
ngacr af
tcert
if
icat
einAutomoti
ve
Engineer
ing.

2.
2TheNat
ureOfTheBusi
ness

HFS
HESBONESFI
LLI
NGSTATI
ON

Thenameoft
hepr
oposedbusi
nessi
sHesbone'
sFi
l
li
ngSt
ati
on,t
headdr
essof
t
hebusi
nessi
sHesbonesFi
l
li
ngSt
ati
on P.
O.BOX19200,KI
SUMU.Thebusi
ness
can as wel
l be r
eached t
hrough onl
i
ne f
or mor
e i
nfor
mat
ion at
odi
wuor
hesbon97@gmai
l
.com orourwebsi
te atwww.
hesbonef
il
li
ng.
com or
cont
actuswi
tht
het
elephonenumber0795871371.
Theai
m ofusi
ngt
hel
ogoi
s
becausei
tisuni
queaswel
lasasi
gnofqual
i
tyandquant
it
yassur
ance.
2.
2.2Busi
nesspur
pose

Thepurposeoftheproposedbusi nesswil
lbetoprovi
deaffor
dabl
epetr
oleum
serv
icestothel
ocalmotori
st,dr
iversandfarmerst
hatoper
atesfar
m machines
l
ikewaterpumpi
nggenerat
orsandot herf
arm machi
nes.

2.
2.3For
m ofbusi
nessowner
shi
p

Thei
ntendedbusi
ness,
Hesbones'
Fi
ll
i
ngSt
ati
onwi
l
lbeasol
epr
opr
iet
orshi
p.

Thi
sisbecausei
twi
l
lbest
art
edandoper
atedbyHesbone.I
naddi
ti
on,
the

st
art
-upcapi
tal
Wil
lbef
rom KCBBankwhi
chwi
l
lcomeasal
ong-
ter
mloan.

Adv
ant
agesofsol
epr
opr
iet
orshi
p

• Fewl
egal
for
mal
i
tiesar
erequi
redt
ost
art

• Li
tt
lecapi
tal
tost
artandoper
ateef
fect
ivel
y

• Al
lthepr
ofi
tsenj
oyedbyt
heowner

• I
tfaci
l
itat
eseasydeci
sionmaki
ng

Di
sadv
ant
agesofsol
epr
opr
iet
orshi
p

• Unl
i
mit
edl
i
abi
l
iti
es

• Poordeci
sionmaki
ng

• Di
ssol
vi
ngbusi
nessduet
olooses

2.
2.3Busi
nessLocat
ion

Thepr
oposedbusi
nesswi
l
lbel
ocat
edal
ongt
heKachok-Ki
sumut
ownHi
ghway
i
nKi
sumuCi
ty.

Themai
nreasonf
orl
ocat
ingt
hebusi
nessi
nthear
eai
sbecauseofunl
i
mit
ed
mar
ketf
ort
hepr
oduct
sduet
ohi
ghdemandf
rom cust
omer
susi
ngt
hebusyr
oad.

10
Ont
heot
herhand,i
tisduet
ogoodi
nfr
ast
ruct
ure,st
eadysuppl
yofr
esour
ces,
secur
it
yandi
tisast
rat
egi
cpoi
ntwher
ether
eisnoot
herent
erpr
iseoft
hesame
t
hatex
istt
ogat
herf
orpeopl
es’
demandmor
eef
fect
ivel
y.
2.3THEI
NDUSTRY

Theproposedbusi
nessfall
sunderEner
gyindust
rywhi
chi
sbei
ngr
egul
atedby
Ener
gyandPetrol
eum Regul
ator
yAut
hori
ty(
EPRA)

2.
3.1Thei
ndust
rysi
ze
Thepr
oposedbusi
nesswi
ll
beaproduct
ionmedi
um si
zei
ndust
ryandal
abori
ntensi
ve
wit
hamaximum offi
veemploy
ees

Pr
oduct
ionVol
ume

Costme2,
000,
000Keny
ashi
l
li
ngscostonpr
oduct
ioni
nthest
artoft
hisbusi
ness
enought
oinst
all
themachi
nesandbuyt
henecessar
ypr
oduct
s

Pr
ofi
tabi
li
ty

Theannuali
ncomewi
l
lamountt
oov
er4,
000,
000whi
cht
hepr
ofi
tear
nedwi
l
lbe
usedi
ntheexpansi
onoft
hebusi
ness.

Numberofcompet
it
ors

Mybusinesswi
l
lhav
ethr
eecompet
it
orswhohav
ethesame
busi
ness.

Cont
ri
but
ionoft
hecount
ryt
otheeconomy
Thi
sty
peoft
hebusi
nessi
ndust
rywi
l
lreal
l
yhel
pandboostt
heKeny
aneconomy
t
hrought
axest
hatIwi
l
lpayannual
l
yandt
hebusi
nessper
mit
sthatIwi
l
lpayf
or
annual
l
y.I
t wi
l
lal
so i
ncr
ease t
he Keny
a economy t
hrough r
educt
ion of
dependencyr
ateduet
oempl
oymentoppor
tuni
ti
est
hatIwi
l
lgr
antmywor
ker
s.

2.
3.2I
ndust
rychar
act
eri
sti
cs

11
Capi
tal
izat
ion

Thepr
oposedbusi
nesswi
l
lneedapr
oposedcapi
talof2,
000,
000t
ofi
nancei
tto
st
abi
l
ity
,fr
om acqui
ri
ngt
hepr
oduct
stor
ent
ingt
hebui
l
dingt
hatwi
l
lactasa
st
oragear
ea.

DemandandSuppl
y

Thest
orewi
l
lbesetupi
nKi
sumuwher
ether
eisar
eadymar
ketmeani
nga
st
eadydemand,
andani
ncr
easei
ndemandhenceani
ncr
easei
npr
iceswhi
chwi
l
l
r
esul
tinmor
epr
ofi
tsf
ort
hecompany
.Thest
eadydemandwi
l
lal
soenabl
eust
o
gr
owourbusi
ness.Adr
opi
ndemandwi
l
lleadt
oar
educt
ioni
nsuppl
ywhi
chwi
l
l
i
mpar
tnegat
ivel
yonourpr
ofi
tsandmayev
enf
orceust
oreducet
hepr
icesof
goods.

Nat
ureofcompet
it
ion

Thecompet
it
ionwi
l
lbest
if
fbutduet
oadequat
epl
anni
ngandst
udy
ingoft
he
t
argetcust
omer
,Iam bet
terpr
epar
edandknowwhatt
hecust
omer
swant
.

Gov
ernmentr
egul
ati
ons

Thegov
ernmentr
egul
atest
hebusi
nesst
hroughpay
mentoft
axeswhi
chl
eadst
o
i
ncr
easeofgov
ernmentr
evenue.

Pr
ofi
tabi
li
ty

Ther
ateofr
etur
nthatIwi
l
lgetf
rom t
hebusi
nesswi
l
lbear
ound3,
000,
000Keny
a
Shi
l
li
ngsaf
teral
lthededuct
ionswhi
chwi
l
lhel
pint
heexpansi
onoft
hebusi
ness.

2.
3.3I
NDUSTRYTRENDS
NATUREOFDEMAND
Thepr
oposedbusi
nesswi
l
lhav
eahi
ghdemandbecauset
heywi
l
l
pr
ovi
degoodser
vicesandt
her
ewi
l
lbest
ateoft
hear
tequi
pmentt
oease
t
hewor
kloadandf
ast
ent
hepr
ocesshencesav
ingt
imeandener
gy.

12
 Cust
omer
swi
l
lal
sobepr
ovi
dedwi
thgui
danceonwhatbestt
obuyf
or
whatpur
poses,
andal
loft
hecust
omer
squer
ieswi
l
lbeanswer
ed.Ot
her
exempl
aryser
vicesl
i
kecl
eani
ngt
hecarwi
ndscr
eenwi
l
lal
sobeof
fer
ed.

.
Technol
ogi
caldev
elopment
Someoft het
echnol
ogi
caldev
elopmentt
hathast
akenpl
acewi
thi
nthe
busi
ness
I
ndust
ryei
nsect
ionofCCTVcamer
ast
oincr
easechancesofsecur
it
y
wi
thi
ntheI
ndust
ryandanot
her
.Technol
ogi
cal
dev
elopmenti
sbuy
inga
comput
erf
ormet
ost
orei
mpor
tantdet
ail
saboutmybusi
nesssi
ncei
t
makesi
teasi
ert
ost
orei
nfor
mat
ion.

Pr
ofi
tabi
li
ty
Thebusi
nessi
ntendst
omakeal
otofpr
ofi
tduet
other
eadyandgr
owi
ng
mar
ket
,thef
actt
hatwewi
l
lal
sododel
i
ver
ieswi
l
lhel
pusat
tractmor
e
cl
i
ent
swhi
chi
ntur
nwi
l
lhel
ppr
opel
ourpr
ofi
tsi
naposi
ti
vedi
rect
ion.

Mar
ketst
rat
egi
es
Thepr
oposedbusi
nesswi
l
lusemoder
nmeansofmar
ket
ingsuchasbi
l
l
boar
ds,
adv
ert
isement
sthr
oughnewspaper
sandt
elev
isi
onandt
her
ewi
l
l
al
sobeawebsi
tet
hatwi
l
lbeact
ivef
or24hour
saday

2.
3.4I
NDUSTRYOUTLOOK
I
nthenextf
ivet
oteny
ear
s,t
hebusi
nesswi
l
lhav
eexpandedduet
oa
st
eadycl
i
ent
elebase,
mor
eov
erHesbones'
Fi
ll
i
ngSt
ati
onwi
l
lst
ri
vet
o
pr
ovi
debet
terser
vicest
hani
tscompet
it
orsat
tract
ingmor
ecust
omer
s.
2.
4PRODUCTS/
SERVI
CES

Thebusi
nesswi
l
lpr
ovi
debot
hpr
oduct
sandser
vices.Mybusi
nessi
sai
medat
bei
ngt
henumberonesuppl
i
erser
vicesi
nKi
sumuandi
naf
ewy
ear
s’t
imeKeny
a.

13
Unl
i
keot
herst
ati
onsser
viceswi
l
lal
soof
ferdel
i
ver
yser
vicesatacheapcost
,
t
hiswi
l
lgoal
ongwayi
nat
tract
ingcust
omer
s.

2.
5BUSI
NESSGOALSANDOBJECTI
VES

2.
5.1Shor
t–t
ermsgoal
s/obj
ect
ives
Thebusi
nessai
msatachi
evi
ngcer
tai
ngoal
sint
henearf
utur
e.someof
t
hegoal
sincl
ude;
• Toear
nmor
epr
ofi
ts
• Toi
ncr
easemybusi
nessandbecomei
nter
nat
ional
• Toincr
easethenumberofcust
omer
sbysel
l
ing
pr
oduct
sofgoodqual
i
ty

2.
5.2Longt
erm goal
s
Thebusi
nessal
sohassomel
ongt
imegoal
s,t
hoset
hatwi
l
lbei
nit
iat
edaf
tert
he
busi
nesshasr
unf
orawhi
l
eandi
sst
abl
eenoughsuchgoal
sincl
ude;
• Tobui
l
dmor
est
oragebui
l
dingssoast
oincr
easet
hebusi
nessandempl
oy
mor
ewor
ker
s.
• Toexpandt
hebusi
nesscount
rywi
deandev
eni
nter
nat
ional
l
ywi
thmor
e
st
ati
onsal
lov
ert
hecount
ry.

2.
6Just
if
icat
ionofbusi
nessoppor
tuni
ty
Owi
ngt
otheneedt
ocr
eat
emor
eempl
oyment
,thegov
ernmentofKeny
ahas
embr
acedsel
f-
empl
oymentsoast
omeett
hev
isi
on2030.Thi
sinspi
redmet
o
comeupwi
tht
hisbusi
nesspl
an.Ther
eisal
soneedf
orbet
terandmor
e
af
for
dabl
epet
rol
eum ser
vicesandt
hegov
ernmenthasal
sosetupi
nit
iat
ivest
o
encour
aget
hesol
epr
opr
iet
orsl
i
kemysel
ftocomeupwi
thbusi
nesspl
ans.

2.
7ENTRYSTRATEGY
Theproposedbusi
nesswi
l
lannouncei
tsent
ryt
othemar
ket
thr
ough;

14
Awar
enesscr
eat
ion
Thr
oughawarenesscreat
ionthebusi
nessannouncesi
tsent
ryt
othemar
ketby
adv
ert
isementandbi
ll
boards

At
tract
ionofcost

Thebusinessannouncesit
sentrytot
hemar
ketbyofferi
ngf r
eegift
stothe
customersandgi
vingthedi
scount
swhent
hecust
omer
sr efi
llt
heirt
anksatmy
stat
ion.

2.
10.
1Ent
rypl
an
Thebusi
nesswi
l
lempl
oyuni
queadv
ert
isi
ngandpr
omot
ionalt
echni
quest
hatwi
l
l
makei
tpenet
rat
eint
othemar
ketandbesuccessf
ul.Thebusi
nesswi
l
lal
sobe
commi
tt
edt
oof
fer
ingexempl
aryser
vicesandi
ntur
npr
icet
hem r
easonabl
y
hencewi
nni
ngt
heconf
idenceofmanycust
omer
s.

2.
10.
2Gr
owt
hpl
an
Thebusi
nessi
ntendst
oempl
oyqual
i
fiedper
sonnelwhowi
l
lint
urnenhance
qual
i
typr
oduct
ionandi
ntur
nyi
eldgr
eat
ersal
esandev
ent
ual
l
yleadt
ogr
owt
h
andexpansi
onoft
hebusi
ness.Thebusi
nesswi
l
lal
soempl
oyhi
ght
echnol
ogyi
n
pr
oduct
ionpr
ocesst
oenhanceef
fi
ciencyandgr
eat
erpr
oduct
iont
ogat
herf
or
mar
ketdemandandcust
omersat
isf
act
ionandi
ntur
nfaci
l
itat
ethegr
owt
hand
expansi
onoft
hebusi
ness.

Tabl
e2.
4

15
Busi
ness St
rengt
hs Weaknesses Oppor
tuni
ty Thr
eat
s
HESBONES Adv
ance Cash f
low Rapi
dgr
owi
ng High
FI
LLING sal
est
act
ics. pr
obl
em. market
. competit
ion.
STATION Poorqualit
y
Good Poor Achi
evementof product
s.
worki
ng adver
ti
sement obj
ecti
ves.
condi
tion, progr
amme.
TOTAL Exper
ienced. Poorstaff
ing. Var
iet
y of High
FI
LLING Stabi
l
ityin Poor sell
ing products. competit
ion.
STATION themar ket
. t act
ics. Changesin
Highlyski
ll
ed technol
ogy.
personnel
.

SHELL Exper
ienced. Lackofempl
oyee Hugest
ock. Hi
gh
FI
LLING Good compet
it
ions.
mot
ivat
ion. Gr
owi ng
STATION st
aff
ing. market. Lackof
Lack of
sal
estact
ics. prot
ect
ive
equi
pmentand
medici
ne.

CHAPTERTHREE

3.
0MARKETI
NGPLAN

Hesbones'
Fil
l
ingSt
ati
oni
ntendst
osel
lit
spr
oduct
sandot
herr
elat
edser
vicest
o
i
tscust
omer
sbot
hlocal
l
yandi
nter
nat
ional
l
y.Thebusi
nesswi
l
lpr
icei
tspr
oduct
s
r
easonabl
eandempl
oyuni
queadv
ert
isi
ngandpr
omot
ionalt
echni
quest
hatwi
l
l
makei
tgai
nmor
ecust
omer
sinor
dert
omeett
hemar
ketexpect
ati
on.The
busi
nesswi
l
lal
sodi
rect
lydi
str
ibut
epr
oduct
sbot
hinwhol
esal
eandi
ndi
vi
dual
pr
icesf
rom t
hebusi
nesspr
emi
sest
hroughaut
hor
izedagent
s.Thi
swi
l
lguar
ant
ee
t
he cust
omer
sofqual
i
typr
oduct
satr
easonabl
e pr
iceshencer
etai
ning t
he
cust
omer
s’conf
idencet
othebusi
nesst
oenhancei
tsexpansi
on.

3.
1Cust
omer
s

Thepr
oposedbusi
nesswi
l
lgai
nahi
ghper
cent
ageofi
tscust
omer
sfr
om wi
thi
n
1
andar
oundt
hebusi
nesspr
emi
ses.Thecust
omer
scompr
isesofal
lcl
assesof
peopl
esuchast
hey
out
h,t
eenageandt
heol
dwho ar
erel
ati
vel
yqual
i
fyi
ng
pr
ospect
s.

Thebusi
nessal
soi
ssi
tuat
edatast
rat
egi
cposi
ti
onsur
roundedbymaj
orhot
els
i
nthet
owncent
erandgov
ernmenti
nst
it
uti
onswhi
chwi
l
lusual
l
ypl
aceor
der
son
t
hequal
i
tyser
vicesf
rom t
hest
ati
on.

3.
2Mar
ketShar
eorsi
ze

Af
ter2y
ear
sTabl
e3.
2
Popul
ati Per
cent
a Degr
on ge ee

Fi
gur
e3.
2mar
ketshar
eaf
tert
woy
ear
s

3.
3Compet
it
ion
Thepr
oposedbusi
nessi
sexpect
edt
oencount
erast
if
fcompet
it
ionf
rom i
ts
compet
it
orssomeofwhi
char
elocat
edar
oundt
heent
erpr
iseandot
her
ssome

2
 ki
l
omet
ersawayf
rom t
hebusi
nesspr
emi
ses.Ther
epr
esent
ati
onoft
hekey
compet
it
ors,t
hei
r si
ze,l
ocat
ion,adv
ant
ages,and weaknesses and how
Hesbonesf
il
li
ngst
ati
onwi
l
lcapi
tal
i
zeont
hei
rweaknesseswi
l
lbeasshown
bel
ow.

Tabl
e3.
3
Compet
it
ors Si
ze Location Strength Weaknesses
Tot
alf
il
li
ng Lar ge Along Uhur u Enjoys the Product sar eofr elativ
ely
business Garden st r , economi
eet esof l
owqual it
yhenceDanmax
nexttothe l
arg e-
scale stati
on wi llcapital
ize on
mar ketpl
ace producti
on thisi n orderto wi nt he
i
nt hemar ket confidence of mor e
customer s.
Baraka Medium Al ong John Committ
ed to Itisnoti naposi tiont o
fi
l
li
ng busi
ness Kerich road hi
gh qual i
ty surrendertheor dersmade
oppositeGK pr
oducti
on to by cust omers on t he
pri
son i
tscust
omers. specifi
ed dat es hence
Danmax st at
ioners wi l
l
capital
izeont heseor ders
towi nmor ecust omer s.
3.
4Met
hodsofPr
omot
ionandAdv
ert
isi
ng
The pr
oposed busi
ness wi
l
lempl
oy uni
que pr
omot
ionaland adv
ert
isi
ng
t
echni
ques i
n or
dert
o make pr
oduct
s and ot
herr
elat
ed ser
vices f
rom t
he
ent
erpr
iseknownt
oit
spot
ent
ial
cust
omer
s.

3.
4.1Adv
ert
isement

Thebusi
nessi
ntendst
ouset
elev
isi
onmost
lyf
ori
tsadv
ert
isi
ngi
tspr
oduct
sand
ser
vicesf
oratl
eastmi
nut
esi
mmedi
atel
yaf
tert
henewshi
ghl
i
ght
swhent
he
audi
encear
est
il
lat
tent
ive.Thebusi
nesssampl
esandpi
ctur
esofi
tspr
oduct
sto
bedi
spl
ayedont
hescr
eeni
nor
dert
owi
ntheconf
idenceoft
heaudi
encet
owar
ds
t
hepr
oduct
soft
heconf
idenceoft
hebusi
ness.Thebusi
nessi
ntendst
ospend
appr
oxi
mat
elyKsh.
3000mont
hlyf
oraper
iodoff
ourmont
hs.Theef
fect
iveness
oft
hisadv
ert
isi
ngpr
ocesswi
l
lther
efor
ebemeasur
edbyt
her
ateatwhi
cht
he
sal
esar
eincr
easi
ngi
nthebusi
nessdur
ingandaf
teradv
ert
isi
ngper
iod.

3
3.
4.2 Pr
omot
ionalMet
hods
Thepr
oposedbusi
nessi
ntendst
ohi
requal
i
fiedsal
esmeni
ncompanyofi
ts
agent
stoget
herwi
thsomeoft
hesampl
epr
oduct
sint
ended f
orcust
omer
’s
di
spl
aysanddemonst
rat
ionsmadeonal
lthef
eat
uresoft
hepr
oduct
s.These
pr
omot
ionalpr
ogr
ammewi
l
lbeconduct
edr
egul
arl
yaf
terev
eryf
ourmont
hsf
or
oney
earar
oundandout
sidet
het
own.Thi
spr
ogr
ammewi
l
lcostt
hebusi
nessa
t
otalofksh.
39,
000y
ear
ly.Theef
fect
ivenessofeachpr
omot
ionalpr
ogr
ammewi
l
l
bemeasur
edbyt
her
ateatwhi
chcust
omer
sandsal
esar
eincr
easi
ngwi
thi
na
speci
fi
edper
iod.

4
3.
5Pr
ici
ngSt
rat
egy
Thepr
oposedbusi
nessi
ntendst
opr
icei
tspr
oduct
sandot
herr
elat
edser
vices
r
easonabl
y.Thebusi
nesswi
l
lther
efor
ecar
ryoutani
ntensi
vemar
ket
ingr
esear
ch
ont
heav
ail
abl
epr
icesi
nor
dert
ocomeupwi
thanappr
opr
iat
epr
icef
ori
ts
pr
oduct
s.Themai
nfact
ort
hatwi
l
linf
luencet
hepr
iceset
ti
ngar
ethecust
omer
s
whi
cht
hebusi
nesswoul
dli
ket
oret
ainbyquot
ingr
easonabl
epr
icest
othem.The
pr
icesoft
hepr
oduct
swi
l
lnotbef
ixedbecauseofcr
edi
tthatwi
l
lbeof
fer
ed
dependi
ngont
het
ermsani
alcusdcondi
ti
onsoft
hebusi
ness.Thebusi
nesswi
l
l
al
soof
feraf
ter–sal
e–ser
vicef
orev
erypur
chaseofgoodsmadebycust
omer
s
whowi
l
lli
vewi
thi
nthebusi
nesspr
emi
sesaswel
lasdi
scount
sinor
dert
oat
tract
andr
etai
nthepot
ent
ial
cust
omer
s.

3.
6Sal
esTact
ics

The busi
ness wi
l
luse v
ari
ous met
hods i
n or
der t
oreach i
ts pot
ent
ial
cust
omer
usesomeofi
tsaut
hor
izedagent
stosel
lit
spr
oduct
soni
tsbehal
f.On
t
heot
herhand,t
hebusi
nesswi
l
lempl
oyqual
i
fiedsal
esmenwhowi
l
ldi
rect
ly
i
nter
actt
othecust
omer
sar
oundt
hear
ea.Occasi
onal
l
y,t
hebusi
nesswi
l
lrecr
uit
mor
esal
esf
orcet
hatwi
l
laf
fectt
hesal
esoft
hebusi
nesshencemot
ivat
ethe
cust
omer
sbyi
ncr
easi
ngt
hei
rcommi
ssi
onsf
oranyi
ncr
easedsal
esandi
ntur
n
i
ncr
easet
hei
rwagesf
oracer
tai
nper
cent
age.

3.
7Di
str
ibut
ionSt
rat
egy
Thepr
oposedbusi
nessi
ntendst
ousedi
ff
erentdi
str
ibut
ionchannel
sthatwi
l
lbe
consi
der
edt
obet
hemostappr
opr
iat
etoi
tspr
oduct
s.Basi
cal
l
y,t
hebusi
nesswi
l
l
mai
nlyuser
oadt
ranspor
ttodi
str
ibut
eit
spr
oduct
stoi
tsconsumer
s.Thi
sis
becauset
hemeansoft
ranspor
tisr
elat
ivel
ycheaperandf
lexi
blehencei
tis
r
eli
abl
eandsui
tabl
etobot
hthebusi
nessandt
heconsumer
s.

Thebusi
nesswi
l
lal
sobeusi
ngi
tsagent
slocat
edi
ndi
ff
erentar
easi
ntownt
o
di
str
ibut
eit
spr
oduct
stoi
tsconsumer
sandi
ntendst
ospendappr
oxi
mat
elya
t
hir
doft
hepr
eser
vedcashf
orspeci
fi
cal
l
ytr
anspor
ti
ngmat
ter
sonl
y.
5
The maj
orant
ici
pat
ed di
str
ibut
ion pr
obl
em i
sthe sucki
ng off
uelf
rom t
he
t
ranspor
ti
ngt
ruckdur
ingt
ranspor
tat
ionoft
hepr
oduct
s.Thi
ski
ndofpr
obl
em wi
l
l
beov
ercomebyt
hebusi
nessbyensur
ingpr
operpackagi
ngoft
hepr
oduct
sand
ont
heot
herhand,ourdr
iver
stobeext
racar
efuldur
ingt
ranspor
tat
ionpr
ocess.
Foranappr
oxi
mat
edper
iodoff
ourt
ofi
vey
ear
sfr
om t
heoper
ati
ondat
e,t
he
busi
nessi
ntendst
oempl
oymor
eofi
tsagent
snat
ional
l
yandev
eni
nter
nat
ional
l
y
i
nor
dert
odi
str
ibut
eit
spr
oduct
sal
lov
eri
nor
dert
oexpandt
hemar
ketf
or
gr
eat
err
eal
i
zat
ionoft
hebusi
nessgoal
sandobj
ect
ivest
oenj
oyeconomi
esof
l
argescal
epr
oduct
ion.

6
 CHAPTERFOUR

4.
0ORGANI
SATI
ONALANDMANAGEMENTPLAN

4.
1ManagementTeam
The pr
oposed busi
ness wi
l
lbe l
ooki
ng f
orwar
dto hav
e a wel
l
-pl
anned
managementt
oget
herwi
th ski
l
led co-
ordi
nat
es per
sonnelt
o enhance wel
l
pl
annedst
rat
egi
esf
ort
heachi
evementoft
hedesi
redobj
ect
ives.

The managementwi
l
lal
so cl
ear
lyshow how t
he busi
ness wi
l
lactwi
tht
o
compensat
ionofi
tsempl
oyeesi
nter
msofr
eti
rement
,ret
renchmentandev
eni
n
caseofacci
denti
nthecour
sedel
i
ver
ingt
hei
rser
vices.

4.
2Ot
herper
sonnel
Thebusi
nessi
ntendst
ohav
eanef
fect
ivemanagementt
eam t
hatwi
l
lensur
ethe
achi
evementofi
tsobj
ect
ives.Thekeymanagementper
sonnel
incl
ude;

Mar
ionOdi
wuorwhowi
l
lbet
hemanageroft
hebusi
nessi
spur
sui
ngBachel
or’
s
degr
eei
nbusi
nessmanagementatKCA Uni
ver
sit
y.Hewi
l
lbet
hesecondi
n
cont
rol
ort
akef
ull
cont
rol
oft
hebusi
nessi
nmyabsence.

I
nt hefi
rstyear
,thebusi
nessi
ntendst
ohav
eanor
gani
zat
ionalst
ruct
ureas
shownbelow.

Fi
gur
e4.
1char
tofor
gani
zat
ionst
ruct
ureatbegi
nni
ngofbusi
ness

Manager

d
Super
visor
manager

Sal
esexecut
ive Account
ant

7
4.
3Recr
uit
ment
,Tr
aini
ngandPr
omot
ion

Thepr
oposedbusi
nessi
ntendst
oat
tai
nit
sper
sonnelandt
rai
nthem i
nrel
ati
on
t
oent
erpr
iser
ulesandr
egul
ati
onsi
nor
dert
opr
ovet
hem t
obemor
eusef
uland
r
esour
cef
ult
othebusi
ness.

4.
3.1 Recr
uit
ment
The pr
oposed busi
ness wi
l
lmost
lyr
ecr
uiti
ts empl
oyees usi
ng t
he i
nter
nal
sour
cesofr
ecr
uit
ment
.Thebusi
nesswi
l
lal
soempl
oyoccasi
onalpr
omot
ionst
o
t
he har
dwor
king empl
oyees.I
twi
l
latt
imes t
ransf
erempl
oyees f
rom one
depar
tmentt
oanot
heri
nor
dert
omot
ivat
ethem andenhanceef
fi
ciencyi
nor
der
t
oachi
evegr
eat
erandqual
i
typr
oduct
ion.Thebusi
nesswi
l
lal
sosomet
imesuse
post
ersi
nadv
ert
isi
ngofi
tsv
acanci
est
oget
herwi
thspeci
fi
cqual
i
ficat
ionsi
nthei
r
r
espect
iveposi
ti
ons.Thi
swi
l
lenabl
ethebusi
nesst
oacqui
rehi
ghl
yski
l
ledand
qual
i
fiedper
sonnelt
oenhancequal
i
fypr
oduct
iont
oenabl
ethebusi
nesst
oat
tai
n
maxi
mum cust
omersat
isf
act
ion.

4.
3.2 Tr
aini
ng
Thebusi
nessi
ntendst
oconducti
tst
rai
ningpr
ocessf
ori
tsempl
oyee’
stwi
cei
na
y
ear
.Thi
spr
ocesswi
l
lbecar
ri
edoutt
hroughsemi
nar
s,showsandexhi
bit
ionsi
n
or
dert
oequi
pthem wi
thmor
eski
l
lsandknowl
edgehencet
hebusi
nesswi
l
l
ef
fi
cient
lyacqui
regr
eatandqual
i
typr
oduct
iont
omeett
hemar
ketdemandand
i
ncr
easesal
es.

4.
3.3Pr
omot
ion
Thebusi
nessi
ntendst
ohav
evar
iouspr
omot
ionmet
hodst
oit
sempl
oyeesf
or
i
nst
ance awar
ding pr
omot
ion t
o empl
oyees basi
ng on t
hei
r har
dwor
king,
exper
ienceanddet
ermi
nat
ion.

Thebusi
nessshal
lal
soi
ssuecompensat
ionf
ormst
oef
fectcompensat
iont
o
empl
oyeesi
ncaseofr
eti
rement
,ret
renchmentandev
endeat
h.

8
4.
4Remuner
ati
onandI
ncent
ives
Theempl oyeeswi l
l beemployedoncontr
actbasisandeachempl oyeecontr
actwil
lbe
renewedaf tereveryfi
nanci
alyear
,ther
enewal ofthecontr
actwil
ldependont he
employee’sper f
ormanceandcompet enceduringtheprevi
ousyear.Theemployeeswil
l
begivenallowancesdependi ngonthebasicsalar
y,theNSSFandNHI Fwill
bededucted
from t
hebasi csalary

4.
4.1Remuner
ati
on

Thebusi
nessshal
lhav
ecl
earr
emuner
ati
ongui
del
i
nest
oit
sempl
oyeesr
egar
ding
t
hei
rsal
ari
esandal
l
owancesasshowni
nthet
abl
ebel
ow.

Tabl
e4.
1sal
ari
esandal
l
owances
Posi
ti
on No Basi
c Al
lowance Tot
al Gross
pay pay
Manager 1 15000 3000 18000 17500
Super
visor 1 12000 2000 14000 13500
Sal
esexecut
ive 4 10000 1000 11000 10500
Account
ant 1 10000 1000 11000 10500
Dr
iver 1 8000 1000 9000 8500
Securi
ty 2 7000 500 7500 7000
personnel
Total 10 62000 8500 70500 67500
4.
4.2I
ncent
ives
Thebusi
nessi
ntendst
o mot
ivat
eit
sempl
oyeest
hroughi
ncent
ivesl
i
kef
ree
medi
calwel
far
e,houseal
l
owanceandev
enpr
ovi
det
hem wi
thacupoft
eadur
ing
t
hecour
seoft
hei
rwor
kinor
dert
ogi
vet
hem st
rengt
htoenabl
ethem di
schar
ge
t
hei
rdut
ieswel
l
.Inaddi
ti
on,t
hebusi
nessshal
lensur
eti
dinessandsaf
etyby
suppl
yi
ngapr
onsandov
eral
l
stot
hewor
ker
sdependi
ngont
hei
rrespect
ivear
eas
ofoper
ati
ons.

9
4.
5Li
cense,
per
mitandby
--Law

4.
5.1Li
censes
Thepr
oposedbusi
ness i
ntendst
oacqui
real
lthel
egaldocument
snecessar
yfor
t
heoper
ati
onoft
hebusi
ness.Thebusi
nesswi
l
lhav
etodot
hisi
nrespectof
LabourLaw223oft
heconst
it
uti
oni
nor
dert
olegal
i
zei
tsoper
ati
oni
nthear
ea.

4.
5.2Per
mit
Thel
i
censesandot
herr
elat
eddocument
spr
ovi
dedbyt
hev
ari
ousdepar
tment
s
ofKeny
afori
nst
ancemuni
cipalcounci
lofKeny
awi
l
lbeanassur
ancet
hatt
he
busi
nessabi
desbyt
hel
awsl
aiddownbyt
hesesect
ors.

4.
5.3By
-Laws
I
ntheser
egar
ds,t
hebusi
nessshal
lacqui
rei
tsper
mit
sandl
i
censesf
rom t
he
muni
cipalcounci
lofKi
sumuatacostofksh7,
000pery
ear
.Thel
i
censewi
l
lbe
subj
ectt
orenewal
att
heendofev
eryf
inanci
aly
ear
.

4.
6Ot
herSuppor
tSer
vices
Thebusi
nesswi
l
lhav
evar
ioussuppor
tser
vicesf
rom al
readyest
abl
i
shedi
nst
it
uti
ons
andor
gani
zat
ionst
hatwi
l
lenabl
ethebusi
nesst
ocapi
tal
i
zei
nthear
ea.Thebusi
ness
shal
lbeaccessedt
obanki
ngser
vicesof
fer
edbyKeny
aCommer
cial
Bank.

4.
6.1Banki
ngser
vices
Thebusi
nessshal
lal
sot
akecov
eragai
nstr
isksf
rom KCBI
nsur
anceCompany
Ki
sumubr
ancht
oensur
est
abi
l
ityandcont
inui
tyoft
hebusi
ness.Thebusi
ness
wi
l
lal
soempl
oysecur
it
yser
viceper
sonnel
from KKsecur
it
yli
mit
edKi
sumu
br
anch.Thi
swi
l
lensur
ethebusi
nessofi
tssaf
etyagai
nsti
ntr
uder
s.Theaddr
ess
oft
hesesuppor
tser
vicesar
easf
oll
ows;

10
Keny
aCommer
cial
Bank
P.O.Box0342
KI
SUMU
4.
6.2I
nsur
anceser
vices

KCBI
nsur
anceCompanyLi
mit
ed,
P.O.Box206
KI
SUMU
KKSECURI
TYLI
MITED
P.O.Box3333
NAI
ROBI

4.
6.3Consul
ti
ngser
vices
OMBAIADVOCATECOMPANY

P.
OBOX234555

KI
SUMU

Theabov
esuppor
tser
viceswi
l
lbewr
it
tenandsummar
izedunderoneboar
dfor

easyunder
standandr
eacht
heni
twi
l
lbef
ixedont
hewal
loft
hemanager
’sof
fi
ce

whi
chi
satt
hecent
ral
place.Thi
sledt
othebusi
nesst
ober
ecogni
zedqui
ckl
y.

CHAPTERFI
VE5.
0PRODUCTI
ONANDOPERATI
ONPLAN

5.
0 pr
oduct
ionf
aci
li
ti
esandcapaci
ty
Thepr
oposedbusi
nesswi
l
lbel
ooki
ngf
orwar
dtol
ayi
ngdowncompr
ehensi
ve
st
rat
egi
esasf
araspr
oduct
ionofgoodsaswel
last
hedel
i
ver
yofr
elat
edser
vices
11
t
oit
scust
omer
sisconcer
ned.

Thest
rat
egi
esi
ncl
udehow t
hebusi
nesswi
l
lacqui
rei
tsequi
pmenti
nor
dert
o
maxi
mizecr
eat
ivi
tyandi
nnov
ati
onf
rom i
tsempl
oyeesi
ndel
i
ver
ingt
hei
rser
vices
pr
oduct
s.

The pr
oposed busi
nesswi
l
lhav
eto acqui
re pr
emi
sesas t
he mai
n ar
ea of
oper
ati
ont
oenhanceef
fect
iveoper
ati
onsoft
hebusi
ness.

Thebusi
nesswi
l
lincl
ude;st
oraget
anks,manager
’sof
fi
ce,super
visor
s’of
fi
ce,
cashi
er’
sof
fi
ceandt
her
ecept
ionof
fi
ce.Thei
l
lust
rat
ionsoft
hesedepar
tment
s
wi
l
lbel
aiddownasshownbel
ow.

Tabl
e5.
1
Equi
pment Quant
it
y Uni
tcost Tot
al Sour
ce
STORAGE 2 300000 600000 SAHOTALI
MITED
TANKS
STORAGE 2 50,
000 100,
000 SABATLI
MITED
SHELVES
Fi
reext
ingui
sher 2 12,
000 28,
000 HENRYRESCUE
LI
MITED
Cal
cul
ator 3 500 1,
500 TUSKEYS
Tot
al 9 729500
5.
1.2 Mai
ntenanceandRepai
rs

Thepr
oposed busi
nesswi
l
lhav
eit
sequi
pmentr
epai
red and mai
ntai
ned on
mont
hlybasi
s.Thi
swi
l
lbedonet
hroughchecki
ngandr
epl
aci
ngt
hewor
nout
par
tsandi
ncaseofanyr
epl
acement
,thespar
epar
tswi
l
lbeobt
ainedf
rom t
he
l
ocalst
ores.Thewhol
epr
ocesswi
l
lcostt
hebusi
nessanappr
oxi
mat
eamountof
ksh20000.

Theai
m ofconduct
ingt
hismai
ntenanceandr
epai
rser
vicei
stoenabl
ethe
busi
nesst
omai
ntai
nef
fi
ciencyandqual
i
tyofpr
oduct
ionofgoodsandser
vices
t
oit
spot
ent
ial
cust
omer
s.
12
5.
1.1 Fi
rm Lay
out
Fi
gure5.
1premise
lay
out

Recept
ion Secur
it
y

Cl
oak
Manager

Account
ant

Super
visor

Cashi
er

St
ore

5.
2 Pr
oduct
ionSt
rat
egy
Thebusi
nesswi
l
llaydowni
tsst
rat
egi
escompr
ehensi
vel
yinmoder
ntechnol
ogy
i
nor
dert
owi
thst
andt
hest
if
fcompet
it
ionandi
ntur
nmanagert
ocapi
tal
i
zei
nthe
mar
ket
.

5.
3 Pr
oduct
ionPr
ocess
Thepr
oposedbusi
nessi
ntendst
oacqui
rei
tsgoodsatanaf
for
dabl
epr
ice.The
busi
nesswi
l
lthensel
lthegoodst
obot
hhi
ghendandl
ow-
endi
ndi
vi
dual
sand
or
gani
zat
ionsataf
for
dabl
epr
icesensur
ingast
eadyf
lowofcust
omer
swhowi
l
l
keept
hebusi
nessr
unni
ng.Thepr
oduct
swi
l
lbeser
vedt
ocust
omer
sonf
ir
st
comef
ir
stser
vebasi
sbutt
hepr
oduct
sonor
derwi
l
lbest
ri
ctl
ysol
dtot
he
r
espect
ivecust
omer
sbysodoi
ngdi
rectdel
i
ver
y.i
twi
l
lenabl
ethebusi
nesst
owi
n
andr
etai
ncust
omer
s’conf
idencet
hroughsat
isf
act
ion.

13
5.
4Fact
orsaf
fect
ingoper
ati
ons

5.
4.1Heal
thr
egul
ati
ons
Thepr
oposedbusi
nesswi
l
lbel
ooki
ngf
orwar
dtodesi
gni
ngi
tspr
oduct
sby
packi
ngt
hem appr
opr
iat
elyf
orsaf
etyagai
nstanydamagest
hatmayoccur
.The
whol
epr
ocesswi
l
lbecar
ri
edouti
nacont
rol
l
edpl
aceunderst
ri
ctsuper
visi
ont
o
ensur
equal
i
tyi
nther
ightquant
it
yofgoodsi
sdel
i
ver
ed t
othei
rrespect
ive
cust
omer
s.

Thebusi
nessneedt
ohav
emont
hlymat
eri
alr
equi
rementi
nor
dert
ofaci
l
itat
e
cont
inuouspr
oduct
ionofgoodsandser
vices.

5.
4.2Saf
ety
Thebusi
nesswi
l
lal
soensur
equal
i
typr
oduct
sint
hepr
ocessbyi
nst
all
i
ngt
he
moder
npumpi
ngmachi
nesandusi
ngel
ect
ri
fi
edchannel
stoenhancequant
it
y
pr
oduct
ionandev
ent
ual
l
ywi
ntheconf
idenceofmor
ecust
omer
s.Theent
erpr
ise
wi
l
lopenf
rom 5:
00am t
o2:
00pm.
Ther
ewi
l
lal
soaone-
hourl
unchbr
eaki
nthecour
seofoper
ati
onasshownbel
ow.

5.
4.3Env
ironment
alRegul
ati
ons

Thebusi
nessi
ntendst
ofol
l
owandabi
debyt
heLabourl
aws,
thesaf
etyr
ulesand
env
ironment
alr
egul
ati
onsdur
ingt
hepr
oduct
ionpr
ocess.Thi
swi
l
lal
soi
ncl
ude
t
aki
ng t
he necessar
y saf
ety measur
es t
oit
s empl
oyees dur
ing pr
oduct
ion
pr
ocessi
nor
dert
oensur
eaconduci
ve,
heal
thywor
kingenv
ironment
.Bysodoi
ng,
i
twi
l
lenabl
ethebusi
nesst
o ef
fectand co-
ordi
nat
eit
spr
oduct
ion pr
ocess
smoot
hlyandev
ent
ual
l
ymeetbot
hthebusi
nessobj
ect
ivesandmaxi
mizat
ionof
sal
est
hroughcust
omersat
isf
act
ion.

14
 CHAPTERSI
X

6.
0FI
NANCI
ALPLAN

Thi
schapt
erpor
tray
sthef
inanci
alout
lookandr
equi
rement
sfort
hebusi
nessby
gi
vi
ngt
hei
ntendedr
esour
cesi
nrel
ati
ont
othei
rusesf
ort
hepr
oposedbusi
ness.
Thef
inanci
alst
atementwi
l
lbecont
ainedi
npr
o– f
ormai
ncomest
atement
cl
ear
lypor
tray
ingt
hepr
ofi
torl
ossf
ort
het
hreef
inanci
aly
ear
srespect
ivel
y.I
n
addi
ti
on,i
twi
l
lal
soshow at
hreey
ear
s’f
inanci
alanal
ysi
soft
hebal
ancesheet
,
cashf
lowst
atementandbr
eak-
evenpoi
ntanal
ysi
soft
heent
erpr
ise.

6.
1 Pr
e–oper
ati
onalCost
Tabl
e6.
1
NO DESCRI
PTI
ON COSTKSHS

1 Tool
sandEqui
pment 500000

2 Rent 10000

3 Wat
erbi
l
ls 300

4 El
ect
ri
cit
y 700

5 Tr
anspor
t 10000

6 Adv
ert
isement 5000

7 l
i
censeandl
egal
document 2,
000

8 I
nsur
ance 2500

9 Ot
her
s 850

TOTAL 531350

6.
2 Pr
ofor
maBal
ancesheetHESBONESFI
LLI
NGSTATI
ONst
atementf
ort
he
15
 YearEndi
ng2023,2024and2025
DESCRI
PTI
ON YEAR1 YEAR2 YEAR3

Sal
es 3,
369,
500 5,
552,
000 7,
702,
500

Lesscostof 2,
025,
500 4,
125,
500 6,
235,
500
goodssold

Gr
osspr
ofi
t 1344000 1426500 1467000

LessExpenses

Sal
ari
es 732,
000 777,
000 785,
000

El
ect
ri
cit
y 8400 10000 9,
300

Rent 120000 120000 120000

Wat
er 3,
600 3,
600 3,
600

Tr
anspor
t 120000 120000 140000

Li
cense 24,
000 24,
500 25,
000

I
nsur
ance 30000 30000 40000

Adv
ert
isement 60000 55000 67000

TOTAL 978000 1130100 1189900

EXPENSES

NETPROFIT 366000 296400 277100

BEFORETAX

LESSPROVI
SION 58560 47424 44336
OFTAX16%

NET PROFI
T 307440 248976 232764
AFTERTAX

6.
3Wor
kingCapi
tal
I
tshowst hedif
fer
encebetweent
het
otalcur
rentasset
sandt
het
otalcur
rent
l
iabi
l
iti
esasshownintabl
ebel
ow

16
I
TEMS 1STYEAR)
KSHS( 2NDYEAR) KSHS(
KSHS( 3RDYEAR)

Cashatbank 150,
000 200,
000 270,
000

Cashathand 800,
000 900,
000 1,
100,
000

Mov
eabl
e 200,
000 250,
000 300,
000

I
mmedi
ateasset
s 100,
000 150,
000 200,
000

TOTAL 1,
250,
000 1,
500,
000 1,
870,
000

LI
ABI
LITI
ES COST

I
TEMS 1STYEAR 2NDYEAR 3RDYEAR

Bankov
erdr
aft 400,
000 350,
000 300,
000

Cr
edi
tor
s 250,
000 2,
000 150,
000

Bankl
oans 150,
000 100,
000 50,
000

TOTALS 800,
000 650,
000 500,
000

6.
4Cashf
lowPr
oject
ions.

17
 ,

0
DESCRI
PTI
ON JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

Begi
nni
ng - 200,
500 250,
500 325,
500 430,
500 570,
500 745,
500 970,
500 1,
230,
500 1,
53
cash
Cashsal
es 150,
000 160,
000 165,
000 175,
000 180,
500 185,
000 189,
000 195,
000 205,
000 225

Cashatbank 50,
000 20,
000 25,
000 40,
000 30,
000 10,
000 40,
000 20,
000 30,
000 40,

Cashathand 40,
000 70,
000 65,
000 50,
000 60,
000 180,
000 80,
000 70,
000 60,
000 80,

Total
cash 240,
000 450,
500 505,
500 590,
500 701,
000 945,
500 1,
054,
500 1,
255,
500 1,
525,
500 1,
94
fl
ow
Cashoutf
low

Pur
chases 68,
000 54,
600 62,
000 70,
000 80,
000 50,
000 60,
000 100,
000 130,
000 120

Sal
ari
es 61,
000 61,
000 61,
000 61,
000 61,
000 61,
000 61,
000 61,
000 61,
000 61,

El
ect
ri
cit
y 700 800 700 600 650 700 700 750 750 800

I
nsur
ance 1,
500 1,
500 1,
500 1,
500 1,
500 1,
500 1,
500 1,
500 1,
500 1,
50

Rent 3,
000 3,
000 3,
000 3,
000 3,
000 3,
000 3,
000 3,
000 3,
000 3,
00

Wat
er 300 300 300 300 300 300 300 300 300 300

Adv
ert
isement 200 - - 200 - - - 200 - -

Tr
anspor
t 800 500 600 800 800 500 600 1,
000 1,
000 1,
00

Li
cense 2,
000 2,
000 2,
000 2,
000 2,
000 2,
000 2,
000 2,
000 2,
000 2,
00

Total
cashout 137,
500 123,
700 131,
100 139,
400 149,
250 119,
000 129,
100 169,
750 199,
550 189
fl
ow
Surpl
us 102,
500 326,
800 374,
400 451,
100 551,
750 826,
500 925,
400 1,
085,
750 1,
325,
950 1,
75

Accumul
ated 102,
500 429,
300 803,
700 1,
254,
800 1,
806,
530 2,
633,
050 3,
558,
450 4,
644,
200 5,
970,
150 7,
72
cash
,

6.
4PROFORMAI
NCOMESTATEMENT
DESCRI
PTI
ON YEAR1 YEAR2 YEAR3

Sal
es 2,
369,
500 2,
552,
000 2,
702,
500

18
Lesscostof 1,
025,
500 1,
125,
500 1,
235,
500
goodssold

Gr
osspr
ofi
t 1,
344,
000 1,
4426,
500 1,
467,
000

LessExpenses

Sal
ari
es 732,
000 777,
000 785,
000

El
ect
ri
cit
y 8,
550 9,
050 9,
300

Rent 36,
000 36,
000 37,
000

Wat
er 3,
600 3,
600 3,
600

Tr
anspor
t 9,
600 10,
000 11,
000

Li
cense 24,
000 24,
500 25,
000

I
nsur
ance 18,
000 18,
000 19,
000

Adv
ert
isement 800 1,
000 1,
500

TOTAL 832,
550 879,
150 891,
400
EXPENSES

NETPROFI
T 511,
450 547,
350 575,
600
BEFORETAX

LESSPROVI
SION 81,
832 87,
576 92,
096

OFTAX16%

NETPROFI
T 429,
618 459,
774 483,
504
AFTERTAX

6.
6 Br
eakEv
enAnal
ysi
s
Thi
stabl
ecompr
isesofv
ari
abl
ecost
sandfi
xedcost
.Itpor
tray
stheuni
tofsal
es
19
i
nagi
venper
iodwi
thoutconsi
der
ati
onoft
hepr
ofi
tatt
hepoi
nt.

6.
6.1 Fi
xedcost
DEPRECIATI
ON SHS

Sal
es 2,
369,
500

VARI
ABLECOSTS

Tr
anspor
t 9,
600

Tel
ephone 2,
000

Wat
er 3,
600

El
ect
ri
cit
y 8,
550

Adv
ert
isement 2000

Pur
chase 1,
015,
000

TOTAL 1040700

6.
6.2 Var
iabl
eCost
I
tems 2023 2024 2025
Pur
chases 298,
000 305,
600 400,
600
El
ect
ri
cit
ybi
l
l 22,
300 22,
600 29,
200
Wat
erbi
l
l 13,
400 16,
300 18,
900
Tr
anspor
t 21,
900 26,
000 32,
900
Cr
edi
tor
s 25,
200 25,
600 45,
400
Tot
al 380,
800 396,
100 527,
000
6.
6.3Br
eakEv
enPoi
ntf
ort
hreeConsecut
iveYear
s

Tabl
e6.
9
Par
ti
cul
ars 2023 2024 2025

20
BEP=Fi
xedCost 475,
800 566,
400 657,
000

1–Vari
abl
e 1–380,
800 1–396,
100 1–527,
000
Cost
1,
003,
200 1,
236,
100 1,
441,
400
Sal
es
475,
800 566,
400 527,
000

1–0.
379585 1–0.
320443 1–
0.
365616761
475,
800 566,
400
657,
000
0.
620414673 0.
679556671
0.
634383239
= =
ksh.
766,
906.
43 ksh.
833,
484.
57 =
ksh.
1,035,
651.
57

6.
7Desi
redFi
nanci
ng
I
TEM SHS

Pr
e-oper
ati
onal
cost 37,
550

Wor
kingcapi
t 1sty
al ear 1,
250,
000

Desi
redFi
nanci
ng 1,
287,
550

6.8Capi
tal
izat
ion
ITEM SHS

Bankl
oan 1,
150,
000

Owner
s’Equi
ty 527,
190

21
Tot
alI
nvest
ment
/Li
abi
li
ti
es 1,
677,
190

6.
9 Pr
ofi
tabi
li
tyRat
iosf
or
HESBONES'
FILLI
NGSTATI
ONf
ort
heYear2023,
2024and
2025
Tabl
e6.
10
Typeof Wor
kingFor
mul
a 2018 2019 2020
Rat
io
Grosspr
ofi
t G.P×100
r
atio
Sal
es
=129.
70% =124.
72% =127.
79%
Retur
non N.
Paf
tert
ax×100
equit
y
Owner
s’equi
ty
=309.
51% =355.
73% =431.
59%
Ret
urnon NPprof
itaf
ter
i
nvest
ment t
ax×100
Tot
ali
nvest
ment =154.
76% =142.
29% =143.
86%
Tot
al 464.
27% 498.
02% 575.
45%

22
 CHAPTERSEVEN

7.
0RI
SKMANAGEMENTPROCEDURE
Thepr
ojectmanagerorot
herdesi
gneewi
l
lser
veast
heRi
skManagerf
ort
his

pr
oject
.Car
efulat
tent
ionwi
l
lbegi
vent
othepr
ojectdel
i
ver
abl
es,assumpt
ions,

const
rai
nts,WBS,cost
/ef
for
test
imat
es,r
esour
cepl
an,andot
herkeypr
oject

document
s.

Al
lri
sksi
dent
if
iedwi
l
lbeassessedt
oident
if
yther
angeofpossi
blepr
oject

out
comes.Qual
i
ficat
ionwi
l
lbeusedt
odet
ermi
newhi
chr
isksar
ethet
opr
iskst
o

pur
sueandr
espondt
oandwhi
chr
iskscanbei
gnor
ed.

Thepr
obabi
l
ityandi
mpactofoccur
rencef
oreachi
dent
if
iedr
iskwi
l
lbeassessed

byt
hepr
ojectmanager
,wi
thi
nputf
rom t
hepr
ojectt
eam usi
ngt
hef
oll
owi
ng

appr
oach:

23
27