WALL SCONCES AND PENDANT LIGHTS ENTERPRISE

TITLE : BUSINESS PLAN

PRESENTED BY: MAINA GODFREY GICHUKI

COURSE : DIPLOMA IN CIVIL ENGINEERING

INDEX NO : 2021151501

PAPER NO :2707/305

CENTER CODE : 202115

CENTER NAME : THE NYERI NATIONAL POLYTECHNIC

SUPERVISOR : MR KIMANI

PRESENTED TO : THE KENYA NATIONAL EXAMINATION COUNCIL

INPARTIAL FULFILLMENT OF THE AWARD OF DIPLOMA IN

CIVIL ENGINEERING

EXAM SERIES :JUNE/JULY 2024

 DECLARATION

I hereby declare that this is my original work which i have dedicated my time to produce it

and has never been presented to any other examination council before.No part of this research
should be produced without my consent

NAME : MAINA GODFREY GICHUKI

Student sign: ................Date:............

This project was submitted with the approval of the supervisor.

NAME : MR KIMANI

Supervisor's signature:...............Date:.............
 DEDICATION

This is dedicated to my loving parents for the care and potential financial support and ensured i
complete my course

Also my dedication goes to my classmate , friends and my teacher Mr Kimani for their
encouragement and

guidance in the preparation of the business plan

 ACKNOWLEDGEMENT

I particularly thank my sincere thanks to my lecturer Mr. Kimani for his graduate over project
preparation

My special acknowledgement and recognition is extended to my dear brothers, sister and the
institution for their mutual support.
Contents

DECLARATION...............................................................................................................................................

DEDICATION..................................................................................................................................................i

ACKNOWLEDGMENT.................................................................................................................................ii

EXECUTIVE SUMMARY.............................................................................................................................iv

CHAPTER ONE...............................................................................................................................................1

1.1 BUSINESS DESCRIPTION......................................................................................................................iv

1.2 BUSINESS NAME.....................................................................................................................................1

1.4 BUSINESS LOCATION AND ADDRESS................................................................................................1

1.5 FORM OF BUSINESS OWNERSHIP............................................................................................................

1.8 TYPE OF BUSINESS................................................................................................................................3

1.9 PRODUCTS AND SERVICES.................................................................................................................3

1.10 JUSTIFICATION OF BUSINESS OPPORTUNITY...............................................................................3

1.11 INDUSTRY................................................................................................................................................3

1.12 GOALS OF THE BUSINESS....................................................................................................................4

1.13 ENTRY AND GROWTH STRATEGY....................................................................................................5

Entry Strategy...................................................................................................................................................5

CHAPTER TWO..............................................................................................................................................6

2.2 MARKETING PLAN................................................................................................................................6

2.3 CUSTOMERS............................................................................................................................................8

2.4 MARKET SHARE.....................................................................................................................................9

2.5 COMPETITION.........................................................................................................................................9

2.6 PROMOTION ADVERTISEMENT.........................................................................................................9

2.7 PRICING STRATEGY.............................................................................................................................10

2.8 SALES TACTICS.........................................................................................................................................

2.9 DISTRIBUTION STRATEGY.....................................................................................................................

CHAPTER THREE

3.0MANAGEMENT AND ORGANIZATION..............................................................................................11

3.2 BUSINESS MANAGERS.......................................................................................................................12

3.2.2. PERSONNEL, NUMBER AND OUTLINE..........................................................................................12

3.4 RECRUITMENT , TRAINING AND PROMOTION...............................................................................12

3.5.1. LICENSES ............................................................................................................................................13

3.5.2 PERMITS...............................................................................................................................................13

3.5.3. BY-LAWS.............................................................................................................................................13

3.6. SUPPORT SERVICES............................................................................................................................13

CHAPTER F O U R.......................................................................................................................................15

4.1OPERATIONAL PLAN............................................................................................................................16

4.2 COST OF MATERIALS PER MONTH ..................................................................................................18

4.3 BUSINESS OPERATIONAL PROCESS.................................................................................................18

4.4 GOVERNMENT REGULATIONS GOVERNING OPERATIONS OF THE BUSINESS............................

CHAPTER FIVE............................................................................................................................................20
5.1. FINANCIAL PLAN.................................................................................................................................20

5.2. INTRODUCTION....................................................................................................................................20

5.3. PRE-OPERATION COST............................................................................................................................

5.3 ESTIMATION OF WORKING CAPITAL..................................................................................................

5.4 PERFOMA INCOME STATEMENT..........................................................................................................

5.5 PERFOMA BALANCE SHEET..................................................................................................................

5.6 PROJECTED CASHFLOW.........................................................................................................................

5.7 BREAK-EVEN POINT................................................................................................................................

5.8 EXPECTED PROBABILTY RATIO.........................................................................................................

5.9 DESIRED FINACING.................................................................................................................................

5.10 PROJECTED CAPITLIZATION...............................................................................................................

5.11 APPENDIX..............................................................................................................................................26
 EXECUTIVE SUMMARY

1.0 CHAPTER ONE: BUSINESS DESCRIPTION

It is the chapter of introduction of the business. The business will be sponsored by its manager

The form of ownership is sole proprietorship. The name of business WALL SCONCES AND
PENDANT LIGHT ENTERPRISES which is located in Karatina Philips plaza, ground floor
Room No (E20). This chapter also shows the type of product that the business is offering the
industry in and it falls in and goals the business tends to achieve. Also it highlights the entry and
growth strategy that the business plan to employ

2.0 CHAPTER TWO: MARKETING PLAN

This chapter highlights the plan chat the business has above entering, competing and succeeding
in the market. It also shows the customer to be targeted by a proprietor, the share that the
business will occupy in the market competition and the potential competitors. It also shows the
methods of advertising and promotion to be used, the pricing strategy and the sales tactics that
are to be employed. It also shows the distribution strategy of the product used by the business

3.0 CHAPTER THREE: MANAGEMENT PLAN

It highlights the WALL SCONCES AND PENDANT LIGHT ENTERPRISES management .It
shows the personnel and workforce of the business and how they will be recruited. It also shows
the permit and the license and other supportive services that the business will require for the
operation

4.0 CHAPTER FOUR: OPERATIONAL PLAN

It highlights the requirement of the business. It shows the requirements the raw materials and the
purchases required for the first month. It also elaborates the production strategy and design the
production process, the internal rules and regulations and legal requirement that will affect the
operation of WALL SCONCES AND PENDANT LIGHT ENTERPRISES
5.0 CHAPTER FIVE: FINANCIAL PLAN

This chapter highlights the financial plan of the business. WALL SCONCES AND PENDANT
LIGHT ENTERPRISES requires a working capital of Ksh1, 000,000 to start its operation. It also
shows the proper trading profit and loss accounts, the performance balance sheet and cash flow
statement. It also highlights the break even point analysis the proposed capitalization, the desired
financing and profitability ratios of the business.
 CHAPTER ONE

1.1 BUSINESS DESCRIPTION

I, the owner of the business was born in Karatina .Attended my low class in Bogani primary
school and later joined Anestar high school located near Lanet army barracks where I sat my
final exams. After the results were released I made a choice to join the Nyeri National
Polytechnic where pursued diploma in civil engineering.

1.2 BUSINESS NAME

The proposed name of business is WALL SCONCES AND PENDANT LIGHT
ENTERPRICES. The name indicates the type of components it shall be dealing with. This makes
it easy for the customer to recognize and identify the enterprise. The name also contributes to the
part of advertisement.

1.3 BUSINESS LOCATION AND ADDRESS

The business will be located at the Philips plaza on the Karatina Central Business District
(KCBD), ground floor room number 20. It is located of the highway of Mathai Street. The place
is well secured, good infrastructure and accessible by the customers.
WALL SCOUNCES AND PENDANT LIGHT ENTERPRISES
P.O BOX 1175-00300
KARATINA- NYERI
TELEPHONE: 0200016441
CELL PHONE: 0114608690
EMAIL: mordenastheticslight@yahoo.com
 1.4 FORM OF BUSINESS OWNERSHIP

The enterprise will be proprietor business. The owner has a diploma in civil engineering and the
proposed capitalization to the business will be sh.800,000

Sources Amount

Personal savings 350,000

Friends and family members 150,000
Bank loan 300,000

Total investment Kshs.800,000

The loan will be borrowed from co-operative Bank and repaid in bits of sh.30,000 per month
1.4 TYPE OF BUSINESS
The business will be retail asthetic enterprise engaged in wall sconces and pendant lights. The
major products that business will specialize in are, ceiling pendant lights, chandelier lights and
wall sconce. The minor component will be installation components and maintenance services.

1.5 .1 PRODUCT

TYPE FORM MARKET

Class A Pendant lights Firms, schools

Chandelier lights Hospitals, firms

Class B Waling lights Individuals, tenants

Wall sconces Individual, offices

 1.5 .2 SERVICES
The business will offer services like installation of wall sconces and pendant lights. It will also
offer repair services of these asthetic light bulbs

1.6 JUSTIFICTION OF OPPORTUNITY

The choice to this type of business enterprise is due to the aesthetic enhancement and revolution
of historical aspect like use of lamps. Hence many customers will be attracted to new technology
components. The location of the business is at central business center, thus easily accessible.
Rapid infrastructure development and modern construction of houses will contribute to a large
market target. On the other hand, the technical skills required through a diploma course in
building and construction will improve the production of the enterprise.
1.7 INDUSTRY
The business will fall under Civil and Electric industry. It will be centered on new technology
components. This has initiated from the idea of putting human knowledge into practices.
Thereby, entering into a technological world, therefore the industry will venture into current and
latest components to attract large market.
1.8 GOALS OF THE BUSINESS
The goals of business will be devised into long term goals and short term goals
1.8.1 LONG TERM GOALS
This will include providing employment to growth and skill as businesses expand after two years
and above. Also there shall be expansion of the business by initiating branches in thika town and
narumoro town

1.8.2 SHORT TERM GOALS

This will be done at duration of one year at the start of the business. They include offering high
quality goods, after sale service and trade discount. There shall be average pricing and attract
more customers
1.9 ENTRY AND GROWTH STRATEGY
1.9.1 ENTRY
The enterprise shall create awareness of its distance in the location by. Advertising through bill
boards, printed calendars bearing enterprise name and location through ratio and packing box
and paper bags with business name and location printed. Also promotion will be ensured by the
enterprise through locating promotions at strategic places and offer products at lower prices
compared to the price quotation in the business. All this will enable the enterprise to capture
large parts of the market

1.9.2 GROWTH
For the enterprise to penetrate the market and retain the customers to the business
there will be allowance given after sale service i.e locating and explanation on how to
operate the product guarantee and fee repair
The enterprise will also expand and come up with branches in Thika and Karatina town
It will increase stock and introduce new type of products
 CHAPTER THREE
2.0 MARKET PLAN
The need to conduct the market survey is to know the customers surrounding the enterprise
so that the enterprise can make good relation with the customers

2.1 CUSTOMERS
This are financial buyers who are willing to purchase goods and services, the enterprise is
targeting the following categories of customers.

2.1.1 INDIVIDUAL CUSTOMERS

These are customers who will purchase our equipment regularly. This group of customers consist
of potential buyers who will be interested to know the kind of our equipments. They will come
solely to purchase always. They include nearby customers and others. These products will be
mostly pendant lights, wall sconces and bulbs. The service will include installation of wall
sconces and pendant light bulbs

2.1.2 INDUSTRIAL CUSTOMERS

These are industries nearby the enterprise. The enterprise will make sure that it creates good
relation with these customers. They will be interested in components like pendant lights and
bulbs. Also they will require services like installation of pendant lights and their repair. The
enterprise will ensure good relationship in order to create a strong hold of demand over our
services

2.1.3 COMMERCIAL CUSTOMERS

These are customers who will come and buy goods from the business and then resell them again.
These customers include hawkers and retailers from other towns like Nyeri. The business will
highly target them in order to improve the demanding curve of enterprise. This will be ensured
through initiation of middlemen to revisit them know and sale and service will be offered in
order to attract large number and keep them.
 2.1.4 INSTITUTIONAL CUSTOMERS
These are customers from institutions surrounding the enterprise, which the enterprise will
highly target. They include Kimathi University, Mathenge Institute and Nyeri Polytechnic. The
enterprise shall form a good link with item to errors proper contribute to the bonuses growth

2.2 MARKET SHARE

Nyeri town is densely populated hence the enterprise will target a good percent of the potential
buyers within the central business district and outside
The summary below shows our potential customers. The costs of the 10,000 customers who are
targeted by the enterprise 4,000 are individual customers. Industrial customers contribute of
2,500 customers. While institutions customers contribute to 1,000 of our customers.

4,000 7,500×100 = 75%

2,500 10,000
+ 1,000
7,500
 2.3 COMPETITION
After markets survey is conducted, it was found that there are three major competitors,two
offering complementary services. The two named:
(i) L.G Appliances
P.o Box 188,
Karatina
(ii) Wega Electric sellers
P.o Box 9702,
Karatina
These are enterprises who tend to compete with my enterprise. They hold a good number of
customers about 30%. They also supply the same kind of item my business supplies

2.3.1 IDENTIFICATION OF COMPETITORS

2.3.1.1 L.G appliances
This business deals with repair,sale of pendant lights and installation of equipments
Strength of L.G appliances
The business is properly established in the market, holding 30% of the customers in the area
as compared with other competitors. It has operated for five years and located few meters
from central business district.
Weakness of L.G appliances
It deals only with old version products with low quality and it does not offer sale service to
the customers.
2.3.1.2Wega Electric seller
This business deals in installation products and few electronic equipment including wall
sconces.
Strength
The business has operated for 8 years and takes 25% of the market share. The business
is located few meters from the central business district
Weakness
The enterprise has mo skilled personnel,small stock and sales volume is less
3.3.2 COMPETITORS COMPARISON
The enterprise will use the following strategic to overcome competetive threats
Opening Hours
It will open early in the morning at 7.00 a.m and close down at 6.00 p.m to ensure that
notification to the customers is well done due to time accessible.
Physical Evidence
Well skilled employees will be employed whereby they will ensure proper dressing and humble
attraction of the customers.
Cost leadership strategy
This enterprise will operate at low overheads and sell more goods at low price for enterprise
expansion.
Differential strategy
The enterprise will use different trade mark show, unique packaging and attractive pantry of
the premises in order to differentiate itself from the competitors.
 2.4 PROMOTION AND ADVERTISMENT
2.4.1 Advertising
The enterprise will enhance various advertising technique programs like distributing colorful
posters around every surrounding town, issuing business cards, strategically pilled, signposts.
Also printing T-shirts and cap that bears the business name. As the business expands advertising
will also be done through ratio media, Television and through internet. Also sponsoring social
function like sport where by each participants will have to wear the business printed T-shirt. By
this the business will use a maximum of Kshs 12,000 for this kind of advertising and this will be
from the profit the business will have made annually.
2.4.2 Promotion
The business promotion will come in form of offering after sale service i.e. loading the goods
into the vehicles. There will be also guarantee for equipment bought by the customers.
2.5 PRICING STRATEGY
The business will be at the top of what the market will bear. The process will be competitive
with the two competitors will which maintain the high level of quality and expert management
process are based on average number of products and average monthly sales of about Kshs.
300,000 It will try to follow expenditures like cost of product, government policies, distribution
and supply in order to suit the prices as required.
2.6 SALES TACTICS
Sale in the business is based upon proving customers with good quality technological products of
their need. It must be in touch with needs and desires of the customers in order to best attract a
constant flow of customers. This will be accomplished by including sale program like trade
discount and credit discount.
2.7 DISTRIBUTION STRATEGY
The enterprise will focus on providing highly products to ensure direct contact distribution.
There shall be Co-operation of Insurance Cover to protect spoilage during distribution by track
and middlemen. Also by ensuring an updated website for anyone interested in
product/engagements.
 CHAPTER THREE
3.0 ORGANIZATION AND MANAGERS PLAN

3.1 BUSINESS MANAGERS AND QUALIFICATIONS

3.1.1 Management summary
The initial management team depends on the founder himself, with back-up assistance from
personnel departments. Maina Godfrey, the owner of the enterprise, assumes the responsibilities
of the CEO. He is a learned person to the field of Building and Construction engineering,
(Diploma with an additional business administration).
3.1.2 Organization structure
Wall sconces and pendant light enterprise depend on an organized division of responsibilities in
order to make efficient, diversified enterprises. The main departments are sales and purchase,
Finance and marketing researcher.

Owner Manager|
Accountant's clerk

Service & Receptionist

Sales and maintenanc
Marketing cleaner
purchasing e
Manager research
technicians
Manager
 4.2 PERSONNEL, NUMBER AND OUTLINE
The table below shows the personnel, their number, qualifications/skills and duties/
responsibilities.

Title Qualifications Duties

Sales and purchase Holder of a diploma In charge of goods
manager in sale and purchase and supervises the
sales field
At least 2 years
working experience in Informs the manager
the related field about stock movement

Accounts manager Holder of C.P.A III or Preparation of budget,

IV and registered with cash flow and audit of
relevant firm the business
5 years of working Payment and
experience in receiving of cash
accounting field
Preparation of balance
sheet

Marketing researcher Holder in marketing Conducts all markets

manager and research option and research
management for the
At least 1 year of
enterprise
working experience

Technicians A certificate in Service and

electrical installation maintenance of lights
or instruments and bulb components,
offering technical
2 year working
advice to customers
experience