BUSINESS PLAN

MWASHTECH COMPUTER SOLUTIONS AND CONSULTANCY

BY

MARTIN MWASHIGADI NAMSANDO

ICT-G-4-0592-18

DEPARTMENT OF COMPUTING AND INFORMATICS

A BUSINESS PLAN SUBMITTED TO THE SCHOOL OF COMPUTING S IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
BACHELOR OF SCIENCE IN COMPUTER SCIENCE OF GRETSA UNIVERSITY IN
KENYA.

SEPTEMBER 2021
 DECLARATION

This research proposal is my original work and has not been presented for award of a degree in

computer science or for any similar purpose in any other institution.

Signature: ___________________ Date: __________________

Martin Mwashigadi Namsando

ICT-G-4-0564-18

Supervisors’ Approval

This proposal has been submitted with my approval as university supervisor.

. Signature: ___________________ Date: ________________________

Name________________________

School of computing and informatics.

Gretsa University

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ACKNOWLEDGMENT

First, I would take this chance to thank the Almighty God for the far he has brought me so far for
he is the reason I am here today.
I would also like to thank my parents for the far that they have supported me through my studies.
Appreciation also goes to my lecturers for their guidance and support.

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Contents
DECLARATION..............................................................................................................................................ii
ACKNOWLEDGMENT...................................................................................................................................iii
CHAPTER ONE..............................................................................................................................................1
BUSINESS DESCRIPTION...............................................................................................................................1
Business goals.........................................................................................................................................1
Vision..................................................................................................................................................1
Mission................................................................................................................................................1
Core values.........................................................................................................................................1
short term goals.................................................................................................................................1
Long term goals.................................................................................................................................1
Business name........................................................................................................................................1
Business location and address...............................................................................................................2
Form of business ownership.................................................................................................................2
Type of business.....................................................................................................................................2
The industry...........................................................................................................................................2
Justification of the business opportunity.............................................................................................2
Market entry strategy...........................................................................................................................2
Market growth strategy........................................................................................................................2
CHAPTER TWO.............................................................................................................................................3
MARKETING PLAN.......................................................................................................................................3
Target customers.........................................................................................................................................3
Market Potential and Sales Potential..........................................................................................................3
Competitor Analysis....................................................................................................................................3
Product/Service Portfolio and Strategy.......................................................................................................3
Promotion Strategy.....................................................................................................................................3
Pricing Strategy............................................................................................................................................3
Place/Distribution Strategy.........................................................................................................................4
Extended Marketing Mix Strategy: People, Process, and Physical Ambience..............................................4
CHAPTER THREE..........................................................................................................................................5
ORGANIZATIONAL/MANAGEMENT PLAN....................................................................................................5
Proposed organization/management structure..........................................................................................5

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Key Personnel Qualifications and Duties.....................................................................................................5
Management team......................................................................................................................................6
Other Personnel..........................................................................................................................................6
Recruitment, Training and Development....................................................................................................6
Personnel recruitment plan.........................................................................................................................7
Personnel training plan...............................................................................................................................7
Period time training;....................................................................................................................................7
Personnel development plan.......................................................................................................................7
Employee promotional status development;..............................................................................................7
Employee remuneration development;......................................................................................................8
CHAPTER FOUR............................................................................................................................................9
PRODUCTION/ OPERATIONAL PLAN............................................................................................................9
Production Facilities and Capacity...............................................................................................................9
Business premises layout............................................................................................................................9
Production/operation strategy....................................................................................................................9
Projected Annual Production/Operation Inputs Requirements...................................................................9
Projected annual overhead requirements...................................................................................................9
Production/operation process...................................................................................................................10
Internal factors affecting the business operation......................................................................................10
External factors affecting the business operation.....................................................................................10
Government regulations affecting production process.............................................................................10
License, permits and recent by-laws compliance......................................................................................11
Outsourced support services.....................................................................................................................11
CHAPTER FIVE............................................................................................................................................12
Introduction...............................................................................................................................................12
Initial working capital requirements..........................................................................................................12
Start-up statement of financial position....................................................................................................12
Statement of external funding..................................................................................................................14
Auditing and Controls................................................................................................................................14
Key Financial Ratios Computations............................................................................................................14
Profitability ratio;......................................................................................................................................14
APPENDICES..............................................................................................................................................15
APPENDIX 1: LOAN REPAYMENT SCHEDULE..............................................................................................15

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CHAPTER ONE

BUSINESS DESCRIPTION

Business goals
The goal of this business organization is to be a widely known IT firm with its main focus on
providing efficient and affordable computers through refurbishing them and also offer
consultancy purposes to our esteemed customers. All these will be achieved through providing
the best customer services and experience.
Vision
I. Constant quality assurance to customers will be considered to each and every product
sale.
II. Will lead the way to a future aspiring IT organization with its foot in every trend that
comes on each and every year.
Mission
I. To meet each and every user’s requirement however long or short it is.
II. Offer quality consultancies to our customers regardless of one’s computer literacy level
III. Supplying of quality computer products to whatever the price point of each and every
client no matter the gender and it’s respective market value.
Core values
I. Investment into customers “hearts” by providing services specifically defined and
designed for them.
II. Being able to take the risks for the computer products sold to the customers.

short term goals

I. Be able to have a stable customer feedback mechanism by the end of the year for the
products sold and consultancies made.
II. Be able to have a stable margin growth of about 3 percent every day.

Long term goals

I. An investment plan to overcome any risks that will occur in the organization.
II. To have established atleast five branches in the country or even at the current county.
Business name
The respective business name will be Mwashtech computer solution and consultancies where by
solution means finding the best way of overcoming a given a problem while consultancy is to be
able to know more regarding a given topic. The name mwash represents a short form from my
official name.

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Business location and address
The business will be located at Nairobi county, embakasi east sub county. This location is
suitable due to the large population and the market gap in the area.
ADDRESS…. P. O BOX 34194-00100 NAIROBI.
TELEPHONE NUMBERS 0705296636
EMAIL…. mwashtech08@gmail.com

Form of business ownership

This will be a privately owned business where by I personally will be undertaking the managerial
duties of the business.
Type of business
This business will be a sole proprietorship business with me acting as the director and
coordinator of all-important actions pertaining the organization. This means that it will be easier
for decision making and also in gaining of profits.
The industry
This kind of business venture falls under the computer service industry which is concerned with
offering of IT consultancies and also sale of computer products.
Justification of the business opportunity
Since technology is growing at a faster rate and the use of computers is also growing. This
business will therefore play a major role in sale of these computer products at an affordable price
which in turn will greatly help the organization. Consultancy will also have its way since not
everyone is computer literate thus anyone would want to know more about it.

Market entry strategy

My market strategy will be mainly through advertisement to the public and also customer
referrals. As the business grows, I shall introduce offers to the products being sold in order to
attract more customers.
Market growth strategy
This business shall be a core service business that facilitates quality customer service and quality
in terms of its products whereby it will be a guaranteed strategy towards making its growth
strategy.

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CHAPTER TWO

MARKETING PLAN

Target customers

My target customers will be mainly the residents from Nairobi county who will be interested in
the purchase of these products. The other target customers that the business shall look at shall be
companies and institutions e.g. schools and universities who may offer tender for I to supply
them with these products.

Market Potential and Sales Potential

Since Nairobi is a large geographical area with a larger population, therefore there will be a
higher chance of these products being sold to the market with inclusion of various companies
and institutions. These refurbished computer products will be at a convenient price as compared
to purchase of a new product which will require a higher amount of money.

Competitor Analysis

The competitor analysis will be analyzed based on the various organizations that have been in
dominance in the respective market economies. The business owner shall respectively calculate
the various organizations in operation and in turn see the preferred essential market share
opportunity that the organization may have towards creating out its market opportunity towards
its various products being sold.

Product/Service Portfolio and Strategy

These products and services will be mainly;

I. Information technology consultancy services.
II. Sale of refurbished computer products.

Promotion Strategy

The business owner shall mainly develop the business extensively by the use of advertisements
whereby print advertisements in the form of quality posters that shall in turn facilitate the aspect
whereby most of its product services will attract our potential customers. The other
advertisement feature and strategy that shall be used is the aspect of use of social media in the
creating awareness of the business products/services.

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Pricing Strategy

The pricing strategy will be affordable and will be based mainly on the different kinds of
products to be sold. Pricing is an important factor towards the attainment of a potential business
venture, therefore the business owner shall cluster the various business services/products and
make sure that they are well outlined dependent on the prices.

Place/Distribution Strategy

The business owner shall first of all ensure that the logistical variance of the business does not at
all interfere with the business transactional effort at all with respect towards transformational
facility of factor.
The premises will also be secured adequately since items such as computers are very expensive
so the business owner will employ security guards to guard the property and also installation of
CCTV cameras in strategic locations to aid in deterring theft cases.

Extended Marketing Mix Strategy: People, Process, and Physical Ambience

These are set of controllable and marketing tools that will greatly the organization to acquire
adequate responses from the marketing environment hence promoting the organization and
maximizing its profit. This mix strategy will also be of great help in creating and maintain good
business relationship with all the people involved.
The 4 Ps of marketing strategies are product, price, promotion and place and are explained
below;
1. Product-this refers to the product or service the business offers to the target market.
2. Price-this refers to how much the product or service costs.
3. Place-refers to where or how people will acquire the product or service.
4. Promotion-refers to thoughtful ways of advertising to ensure the product reaches target
market.

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CHAPTER THREE

ORGANIZATIONAL/MANAGEMENT PLAN

Proposed organization/management structure

The following shall be the proposed organizational/management structure of the business

venture;
Staff Number
Manager 1

Assistant manager 1

IT consultant 2

Security 1

Marketing personnel 1

TOTAL 6

Key Personnel Qualifications and Duties

The following are some of the personnel qualifications and duties;

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Management team

Employee Qualifications Duties

Assistant Manager A bachelor’s degree in commerce
(management/business administration) or a
bachelor’s degree in Business IT
A working experience of at least 2 years in
a respective IT firm
Oversee the execution of daily
operations.
Maintain compliance to external
regulations.
Maintain and develop plans and
objectives of institution.
Maintaining an overall
managemen.t style that follows
company best practices

Other Personnel

Employee Qualifications Duties

IT consultant A degree in computer science,
information system or related field.
Excellent written and verbal
communication.
Good interpersonal skills.
Understanding of a client’s business
needs.
Designing and implementing a
technology solution.

Security A KCSE certificate with a Ensure safety of goods and people.

minimum requirement of C- Inspection and patrol
(minus) Monitor surveillance cameras.
A certificate of good conduct
A good working experience from
other security firms

Recruitment, Training and Development

The following shall be the activities that shall be undertaken in the process of personnel
recruitment plan, personnel training as well as personnel development plan.

Personnel recruitment plan

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The business shall in turn come up with personnel recruitment plan that shall in turn be of
essential benefit towards the attainment of the various human personnel workforce that shall
work with the organization. The recruitment plan shall be as follows;
STAGES UNDERTAKEN ACTIVITY UNDERTAKEN
1st Stage Reviewing of the application letters

2nd Stage Calling up and notification of the various

selected applicants.

3rd Stage Appointing of interview sessions for

applicants.

4th Stage Issuing of the relevant applicants who have

been successfully appointed.

Personnel training plan

The following are the various personnel training plan that shall be undertaken towards the
employees appointed;

Period time training;

The employees who shall be successfully appointed shall undergo orientation of the various
organizational structures and in turn be given a 1-month period time training under which would
help them build capacity competency in working towards the organization for full employment
status.

Personnel development plan

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Employee promotional status development;

This promotional status benefit is whereby the employees who shall have worked within the
organization for a period of 2years and above shall be raised their promotional status dependent
on their current employee position they hold.

Employee remuneration development;

Under this plan, the business owner shall develop the employees using the criteria of
remuneration development whereby employees who constantly work for 2 years consistently will
have a remuneration increment of 5% of their own basic salary.

CHAPTER FOUR

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PRODUCTION/ OPERATIONAL PLAN

Production Facilities and Capacity

The production facility will be a utilized one due to limited production costs and it is an
emerging establishment. The production facilities include items such labor among and computer
products.
The true capacity of our facility will be the upper limit of the abilities of one part of the business
we are running. This will be done through ways such as determining the demand, material
resource planning and striking the balance between demand and supply.

Business premises layout

Production/operation strategy

The core principles in the operation strategy will be quality of service, the facilities available,
technology and planning and control. One of the production/operation strategy will be marketing
activity. Marketing is an essential factor in business which facilitates the aspect of ensuring that a
company keeps on generating the necessary potential customers. This shall be done by the
necessary marketing personnel.

Projected Annual Production/Operation Inputs Requirements

Labor requirements
Worker Salary
Assistant manager 25,000
IT consultant (2) 20,000
Security 8,000
Marketer 12,000

TOTAL 85,000

Projected annual overhead requirements

Item Cost
Repair and maintenance 50,000
Insurance and taxes 25,000

TOTAL 75,000

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Production/operation process

The production or the operational process shall follow all the due processes as planned in the
business. First, upon the attraction of customers, the customer needs will be well identified in
order to sell the required products for them. Under the consultancy side, the responses to be
given out will be of great benefit and it will mainly focus on the customer’s needs.

Internal factors affecting the business operation

Some of the common internal factors may include; workers, competition and financial situations.
These factors can affect the business venture either positively or negatively. Another factor is the
management’s irresponsibility to handle out clients/customers well.

External factors affecting the business operation

Some of the external factors may include;

I. Economic aspects that may lower the customer’s purchasing power.
II. Political instability under which tension and violence may be inflicted.

Government regulations affecting production process

Some of the anticipated government regulations that may affect the business operation process
include;
I. Regulation policies from the government.
II. Taxation from the government.
III. Employment act which are laws that set out contracts of services and provision of matters
such as summary of dismissal.
IV. Insurance which are policies that a business should obtain for example public liability
that covers for all those people working for the business.

License, permits and recent by-laws compliance

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The business shall indeed first take a business license from the respective count government of
Nairobi and a certificate permit from the respective institution that handle out technology and
innovations management in Kenya.
The other aspect is that the business will progressively ensure that it follows the necessary by-
laws that shall be implemented into Acts in order to not be disclosed out of disobedience from
the respective regulatory bodies.

Outsourced support services

Some of the outsourced support services include;

I. Other organizations that sell computer products, this will occur when there is shortage of
a given product that is in demand.
II. Internet sources that shall be outsourced from an internet based company.
III. Insurance; where by the business will identify an insurance company that will cover the
business against any risk that may occur.
IV. Banking; where by the business will identify a bank where by the business will save
some of the money to cater for any emergency that may occur. Saving of these money
will in turn make the bank to aid us with loans that may assist in other production
processes.

CHAPTER FIVE

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Introduction

This will be created by gathering all the important components that will make up the business
and expressing them in numbers. This will include both the startup costs incurred and also the
revenue. By doing this the business will be ensured of cash flow and smooth running of
operations.

Initial working capital requirements.

ITEMS COST
Trade licenses 10,000

Business permit 5,000

Electricity (per month) 3,000

Rent (monthly) 12,000

Purchase of chairs and tables 20,000

Accidental or petty cash 8000

Salary (all personnel) 120,000

Purchase of computer products 300,000

TOTAL 478,000

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Start-up statement of financial position

This will show what the business owns, what it owes to debtors and the amount of money that
the owner has at hand. The statement is as follows;
Current asset 2021
Cash at bank 450,000

Debtors 0

Creditors 87,000

Cash at hand 150,000

Operational cost 300,000

TOTAL 987,000

Five year projected income statement

ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4

Sales 900,000 1,050,000 1,280,000 1,450,000
Cost of goods 400,000 500,000 700,000 900,000
sold
Gross profit 500,000 550,000 580,000 550,000
EXPENSES
Salaries and 85,000 85,000 91,000 98,000
wages
Electricity 2,500 3,000 2,000 3,200
Insurance 30,000 35,000 32,000 36,000
Repair and 8,000 10,000 12,000 11,000
maintenance
Loan 90,000 100,000 100,000 100,000
repayment
Internet 1,200 1,200 1,200 1,400
Computer 30,000 35,000 40,000 32,000
products
Total expenses 246,700 269,200 278,200 281,600
Net profit 253,300 280,000 301,800 268,400

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 Statement of external funding

This will refer to money acquired from external sources to aid me in the starting of the business.
They include money from friends and family and this has been shown below;
Savings 150,000
Friends and family 200,000
Loans 500,000
Tot TOTAL 850,000

Auditing and Controls

The business will ensure that it uses strategies in order to avoid problems with the auditing
agencies. Examples of these strategies will include; risk assessment, information and
communication with relevant parties. The respective account books will therefore be checked
oftenly in order to identify any discrepancies that may occur.
The business will also utilize both external and internal auditing so as to protect the reputation of
the business organization.

Key Financial Ratios Computations

These financial ratio computations are of great importance in that it will be useful to track the
business performance and also make decisions concerning it.
Examples of these ratio computations include; profitability ratio, leverage ratio etc.

Profitability ratio;

This ratio deals with issue of how much a business has made profits in relation to some elements
representing what it took that amount (sales investment).
Gross profit margin
= gross profit/sales * 100%
= 500,000/900,000 * 100%
= 55.56%

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APPENDICES

APPENDIX 1: LOAN REPAYMENT SCHEDULE

Annual rate 2.10%

Borrowed principal 500,000
Payable interest 15,000
Total payable 565,000
Monthly payment 21,000
Number of monthly payments 24
Number of yearly payments 2

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