BUSINESS PLAN

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 P.O BOX 132 Nyamira
TE:0790643235

PRESENTED BY: TIBERIUS ONYAMBU MOINDI.

INDEX NUMBER:7411050382.
SUPERVISED BY: MR. LAMECH.
PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DIPLOMA IN
ELECTRICAL AND ELECTRONIC ENGINEERING.

DATE OF PRESENTATION:

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DECLARATION

I here by declare that this business plan is my original work.I also affirm that it has not presented
to this institution or any other collage for academic purpose

Name : TIBERIUS ONYAMBU MOINDI

Admin No : TKNP/C/0862
Signature :.
Date :
The business plan has been submitted to the Kenya National Examination council for examination
with any approval as the college principal
signed by the collage principle

Name :………………………….
signature:…………………………..
Date :…………………………...

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DEDICATION
I dedicate this business plan to my family members:
Dad:Moindi,Mum:Alice,Sister :Yuvencia
You gave me every reason to study hard.

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ACKNOWLEDGEMENT
I am grateful to God for giving me good health and strength to do my business plan work.my
sincere thanks to my parents and my sister Yuvencia for their molal ,social, and fancial support
during writing of the business plan.
I also appreciate my friend Job for your support during that period.
Thank you to my business plan supervisor Mr Lamech for guidance and support during writing the
business plan

God bless you all.

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CONTENTS

DEDICATION

AKNOWLEDGEMENT

CONTENTS PAGE

CHAPTER ONE

EXECUTIVE SUMMARY……………………………………………………………………… 11

1.1 BUSINESS DESCRIPTION…………………………………………………………………. 11

1.2 MARKETING PLAN………………………………………………………………………… 11

1.3 ORGANIZATIONAL AND MANAGEMENT……………………………………………… 11

1.4 OPERATIONAL PLAN……………………………………………………………………… 11

1.5 FINANCIAL PLAN ……………………………………………………………………………11

CHAPTER TWO

BUSINESS DESCRIPTION …………………………………………………………………… 12

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2.1 PERSONAL BACKGROUND……………………………………………………………… 12

2.2 BUSINESS NAME……………………………………………………………………………12

2.3 BUSINESS ALLOCATION………………………………………………………………… 12

2.4 FORM OF OWNERSHIP…………………………………………………………………… 13

2.5TYPE OF BUSINESS…………………………………………………………………………13

2.6 PRODUCT AND SERVICES ……………………………………………………………… 13

2.7 JUSTIFICATION OF OPPORTUNITY…………………………………………………… 14

2.8 INDUSTRY………………………………………………………………………………… 14

2.9 BUSINESS OBJECTIVE…………………………………………………………………… 15

2.9.1 GOALS…………………………………………………………………………………… 15

2.9.2 OBJECTS………………………………………………………………………………… 15

2.10.0 ENTRY AND GROWTH………………………………………………………………… 15

2.10.1 ENTRY PLAN …………………………………………………………………………… 15

2.10.2 GROWTH PLAN ………………………………………………………………………… 16

CHAPTER THREE

MARKETING PLAN…………………………………………………………………………… 17

3.1CUSTOMERS………………………………………………………………………………… 17

3.2MARKET SHARE…………………………………………………………………………… 17

3.3 COMPETITION……………………………………………………………………………… 18

3.4 METHODS OF PROMOTING AND ADVERTISEMENT………………………………… 19

3.5 PRICING STRATEGY…………………………………………………………………………19

3.6 SALES TACTICS………………………………………………………………………………20

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3.7 DISTRIBUTION STRATEGY …………………………………………………………………20

CHAPTER FOUR

ORGANIZATION AND MANAGEMENT…………………………………………………… 22

4.1 MANAGEMENT TEAM………………………………………………………………………22

4.1.1 GENERAL MANAGER…………………………………………………………………… 22

4.1.2 DEPUTY GENERAL MANAGER …………………………………………………………22

4.1.3 MARKETING MANAGER……………………………………………………………… 23

4.2 OTHER PERSONAL ……………………………………………………………………… 23

4.3 RECRUITMENT TRAINING AND PROMOTION ………………………………………….25

4.3.1 RECRUITMENT……………………………………………………………………………25.

4.3.2 TRAINING …………………………………………………………………………………25

4.4.1 REMUNERATION …………………………………………………………………………25

4.4.2 INCENTIVE ……………………………………………………………………………… 26

4.5 LICENSES PERMITS AND BY LAWS …………………………………………………… 26

4.5.1 LICENSES AND PERMITS ……………………………………………………………… 26

4.5.2 BY LAWS………………………………………………………………………………… 27

4.6 SUPPORT SERVICES……………………………………………………………………… 27

4.6.1 BANKING SERVICES …………………………………………………………………… 27

4.6.2 INSURANCE SERVICES………………………………………………………………… 27

4.6.3 CONSULTING SERVICES ……………………………………………………………… 27

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CHAPTER FIVE

PRODUCTION/OPERATION PLAN………………………………………………………… 28

5.1PRODUCTION FACILITY AND CAPACITY…………………………………………………28

5.1.1 FIRM LAYOUT …………………………………………………………………………… 28

5.1.2 REPAIRS AND MANTAINANCE………………………………………………………… 29

5.2 PRODUCTION STRATEGY ………………………………………………………………… 29

5.3 PRODUCTION PROCESS…………………………………………………………………… 30

5.4 PRODUCTION AFFECTING OPERATION………………………………………………… 30

5.4.1 HEALTH REGULATION ………………………………………………………………… 30

5.4.2 SAFETY …………………………………………………………………………………… 30

5.4.3 ENVIRONMENTAL REGULATION…………………………………………………… 30

CHAPTER SIX

FINANCIAL PLAN………………………………………………………………………………32

6.1 PRE OPERATIONAL COST……………………………………………………………… 32

6.2 WORKING COST……………………………………………………………………………32

6.3 PROJECTED CASH FLOW STATEMENT …………………………………………………33

6.4 INCOME STATEMENT……………...………………………………………………………34

6.5 BALANCE SHEET ……………………………….………………………………………… 35

6.6 BREAK EVEN POINT ………………………………………………………………………36

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6.7 CALCULATION OF PROFITABILITY RATIO…………………………………………… 36

6.8 RETURN ON INVESTMENT ……………………………………………………………… 39

APPENDIX І…………………………………………………………………………………… 40

APPENDIX ІІ…………………………………………………………………………………… 41

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 1.0 EXECUTIVE SUMMARY.
1.1 Business description

The business will operate under the name TOMCOM SOLAR PUMB INSTALLATION.It will be
situated at Konate along Kericho Kisii road.It will operate as a sole proprietor byTiberius Onyambu
as a proprietor.The business address will be PO BOX132 NYAMIRA.

1.2 Marketing plan

The business potential customers will include schools,individuals,hospitals and factories.

The business will face competition from:
• Wotech Kenya.
• Drip masters.
• Wilo East Africa l.td
• Grekkon L.t.d.

1.3 Organizational and management.

The business will be managed by various personnel in their various sections.The owner will be the
overall boss assisted by deputy general manager who will also check on the shortcomings of the
enterprise and give solutions in absence of the general maneger.All accounts will be under the
cashier who will control and keep books of accounts.He will also receive payments and information
on behalf of the business

1.4 Operational plan.

The business will need vehicles,pumps,masks,aprons,computers etc.

there will be regulations affecting the running of the business.

1.5 Financial plan.

The business will need twenty million shilingTthe enterprise will borrow four million from Equity
BANK.\

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 2.0 BUSINESS DESCRIPTION.
2.1 Personal background.

The business will be operated and managed by Tiberius Onyambu who is currently taking Diploma
course in Electrical and Electronic Engineering.the business will start its operation in 2027 Junuary
1st.this will be possible because the owner will have accumulated enough and entrepreneur skills.

2.2 Business name.

The bussiness will operate TOMCOM SOLAR PUMMBS INSTALLATION.This will be derived
from owner`s name and its operation.At the start up stage it shall be only one branch but more will
be opened after one year of opening of the business.

2.3 Business allocation.

•
TOM COM SOLAR PUMP INSTALLATION will be located in Konate along Kericho Kisii road
opposite National OIL petroleum station.
The business will operate under the following address
TOMCOM SOLAR PUMP INSTALLATION.
PO.BOX 132
NYAMIRA
TELL No;0790643235
EMAIL;tomcomsolarpumb@gmail.conm

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 2.4 Form of ownership.

The business will run under sole proprietorship at the start up stage because of the following
➢ it is easy to capitalise from personal saving.
➢ Owner enjoys all the benefit alone.
➢ Decision making is easy.
➢ Easy to control and manage the business.
➢

2.5 Type of business

➢
The business will be a start up which will start its operation in January 1st 2027.Its main operation
will be selling solar, pumps and installing them.

2.6 product and services

NO PRODUCT DESCRIPTION SIZE

1 solar monocrystaline 100W to 200W

polycrystaline 100W to200W

2 battery Luminous tubular • 12v,50A

to36,100A

Felicity lithium 12V ,50A to36V,100A

Veston tall tubular 12V,50A to 36V,100A

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3 pump centrifugal 0.5HP to 50 HP

diaphram 00.5HP to 50HP

4 wire sheated 2.0mm to10mm

Un sheated 2.0mm to10mm

5 pipes metallic Heavy and light gauge

blastic Heavy and light gauge

2.7Justification of opportunity

The research carried on the area justify the suitability on the area for the intended type of the
business.This due to
I. There is customers and industrial marketing the area.
II. Low cost of starting business.
III. Availability of solar energy.
IV. Solar and pumps are easy to maintain.
V. Due to government objective to use clean energy thus solar will be needed.

2.8 Industry.

TOMCOM SOLAR INSTALLATION fall under power inndustrs in the ministry of energy.

NO ITEM COMPANY PRODUCTION PER

YEAR

1 SOLAR SUNTECH 2000MW

2 BATTERY LG SOLUTION L.T.D 1600GWH

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3 PUMP KISSAN IRON 100,000
WORKS

2.9 Business objective.

2.9.1 goals

• Maximize profit and satisfy customers

• cope with market demand after seven months of starting.
• Win customers.
• To provide best quality products to the customers
• To expand market shere through opening other branches.

2.9.2 Objectives.

• To achieve business success.

• Satisfy customers.
• Open other branches.
• Survive in the market.
• To be outstanding brand.

2.10.0 entry and growth.

•
The business will enter the market by taking opportunity where necessary that is by capitalising on
competitors weaknesses.

2.10.1 Entry plan.

The business will enter the market through the following

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 • collecting all legal documents like licenses.
• Paying initial rent and writing the name of the business and what it offers on the wall.
• Creating awareness by putting posters in strategic areas indicating location of the business.
• Pricing low prices than other competitors to attract more customers.
• Attracting will be achieved through promotion like free delivery.
•

2.10.2 Growth plan.

•
Growth will be determined by depending on demand of the demand of products.customers being the
beseline of every successful business they will also determine the growth of the business.
It will also depend on entrepreneur on public relation and the following professional ethic.
• Cooperation and team work spirit.
• Use of diplomatic way of abroaching.And know how to solve problem.
• Panctuality.

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 3.0 MARKETING PLAN
3.1customers.

Customers targeted will be grouped according to their potentiality of buying.This depend on facts
like income,social class and economic activity.
In Konate area there are 50,000 people whose economic activity is farming.
Institutions
I. Schools
There are 20 schoolsI in Konate whereby 10 of them are boarding schools like kebirigo
boys High School,Sironga Girls School,Senetor Kebaso e.t.c.They will need our products
like pumps and pipes for water supply in those institution
II.Hospital.
Hospital like Kinaro Hospital will need our products for their day to day activities.
III. Factory.
Kebirigo Tea Factory will need our product in their production.

3.2 MARKET SHERE.

Market share before entry.

No company product Sales per year

1 Wotech Kenya 1500 80

2 Drib masters 1250 75

3 Wilo East Africa 1200 60

4 Grekkon L.t.d 1100 45

5 Un exploited market 1050 45

share

After entry

No company product Sales per year

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1 Wotech Kanya 1500 75

2 Drip masters 1250 62

3 Wilo East Africa 1200 53

4 Grekkon L.t.d 1100 35

5 TOMCOM PUMBS 1150 50

INSTALLATION

6 Un exploited market 750 25

3.3 competition.
Before entering the marketing

No company product(unit) worthy Customers per profit

month

1 Wotect Kenya 1500 8,500,000 200 5,500,000

2 Drip masters 1250 8,000,000 150 4,000,000

3 Wlo East 1200 7,000,000 125 900,000

Africa

4 Grekkon L.t.d 1100 5,000,000 120 600,000

5 Un exploited 1050
markety

After entering the market.

No company product Worthy customers profit

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1 Motech Kenya 1500 8,500,000 225 5,140,000

2 Drip Masters 1250 8,000,000 145 3,140,000

3 Wilo East 1200 7,000,000 120 940,000

Africa L.t.d

4 Grekkon L.t.d 1100 5,000,000 115 640,000

5 T 1150 6,760,000 125 1,140,000

TOMCOM
Solar pump
installation

6 Unexploited 1150
market

3.4 methods of promotion and advertisement.

Promotion will be done to cope with competitors.

This will be done by:
• giving out clothes with business logo.
• Free delivery of goods.
• Giving discount to those who buy in large quantities
Advertisement will be done by:
• putting signpost at strategic places and positions.
• Putting company products in social media.
•

3.5 pricing strategy.

The business will use plus pricing and competitive pricing in the entry so that it can cope with the
competition.
This will be done to get the customers for the growth of the business

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the product of the business will be priced according to the income and the quality of the product .
Discount will be given to those who will buy in bulky and free delivery to any of the customers
who buy from our products.

3.6 sales tactics

personal selling will be used so as to give out advice and instruction to the customers where
necessary.This will be so in order to meet expectation of buying the product and its use.
Trained personnel will help customers where necessary and accordingly.
That is by:
• using diplomatic ways to talk to the customers;
• good welcoming and service to the customers

3.7 distribution strategy.

Since solar are not perishable many channels can be used to distribute goods.The business will use
direct channel of distribution thus no middle men shall be involved.
The business will require the transportation vehicles to do distribution.

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TOMCOM SOLAR PUMP TOMCOM SOLAR PUMPS SHOP
INSTALLATION BOARD

TOMCOM SOLAR PUMP WORKSHOP

CUSTOMERS

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 4.0 ORGANIZATION AND MANAGEMENT.
4.0 MANAGEMENT TEAM.

The business will employ individual with a certain qualification that suits the business.
Those in the top position will guide and control those below them in operating the business.
Their will be general manager ,deputy general manAger marketing manager and others.

4.1.1 General manager.

duties
• job description to those below.
• Employing new employee.
• Decision making.
Qualification
• master degree in human resource management
experience
• 5 years work experience.

4.1.2 Deputy general manager.

Duties
• evaluating and interviewing employee.
• Check on the business shortcomings.
• Give direction in directors absence.
Qualification
• diploma/certificate in human resource management
experience
• A tleast 5 years work experience at managing level.

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 4.1.3 Marketing manager.

Duties
• promotional tool.
• Coordination.
Qualification.
• diploma/certificate in sales marketing.
Experience
• At least 5 years in sales and marketing.

4.2 other personal.

no tittle Number of qualification duties

personal

1 cashier 1 K.A.T.C holder • Receiving payment on

behalf of the business.

• Keeping business
documents.

2 Messanger 2 Certificate in • Taking orders from

sales. customers.

3 Cleaner. 1 • Std 8 Cleaning business premises.

leaver.

• Faithful
.

4 Watchman. 2 • Faithful Protecting business premises.

Both day and night.
• energeti
c.

5 Technician. 1 Diploma in Checking condition of products

electrical before being sold.
engineering

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 .

Owner.

General manager.

Deputy general maneger

Marketing Manager

Technician.

Casheir. Cleaner and

messenger Watchman.

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 4.3 Recruitment,training and promotion
4.31 Recruitment.

It will be done in different ways

• interviewing both in both oral and written.
• Looking at the certificate on application to know the level of education.
• Physical and medical examination of the applicants person.

4.3.2 Training.

Training will familiarize workers with job and give them skills like communication,public relation
and other technical skills.
This will also enable them to learn from competitors mistakes so as to able to prevent them or to
able to know how to handle them.
The business manager will also be allowed to attend seminers for more skills outside the business
premises.

4.4.1 Remuneration.

All employees will enjoy 1000 shillings for each and this will cater their transport back home as
well as medical.
Salaries will vary with positions and responsibilities as below

s/no Tittle. No Monthly bay. Allowance and Net pay.

benefits

1 G/manager 1 130000 1000 14000

2 Deputy 1 10000 1000 11000

g/manager

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3 Market 1 8000 1000 9000
manager

4 cashier 1 6000 1000 7000

5 Technician. 1 6000 1000 7000

6 Massanger. 2 5000 1000 12000

7 Cleaner. 1 5000 1000 6000

8 Watchman. 2 4000 1000 10000

Total. *** *** *** *** 76000

4.42 INCENTIVE

The employees will enjoy incentives such as off duties and leave
Each employee shall shall be given off duties every two weeks a day(once in two weeks)one person
at a time.
In case of sickness he/she will get off each person will go a two week paid leave in a year .they will
also not work in holidays.
There will be annual parties for the employees and the faithful customers.customers and employees
will get awards according to their perfomance.

4.5 licenses,permits and by laws.

4.5.1Licenses and permits

this allows the business to operate within the town center.They will be obtained at Nyamira Town
Council licensing office.
Before licensing will be registered at Huduma centrer Nyamira.the business will get license at 8000
and will be renewed at daily basis.

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 4.5.2 by laws.

The business will use the following by laws during operations:

• install security alarms especially against theft.
• Ensure good ventilation and drainage for the store
• install atleast 5 fire extinguishers to cater for any fire out break.

4.6 Support services.

4.6,1 Banking services.

The business will bank its money at Equity at Nyamira town.this will provide security of the
business money and earn some interest.

4.6.2 Insurance services.

Business will ensure its premises and assets,stocks and other equipments against fire theft risk.This
will give the business security oand hope of contunuity incaseoff break of this risks.the business
will ensure with BRITAM insurance PO BOX 334367 NAIROBI.THE INSURANCE GOES
FOR 30,000 per year.

4.6.3 consulting services

The business will do consultation with the ministry of energy so as to meet the standards required .it
will also do consultation with IEEE for the safety of the customers employees and long lasting of
equipment.

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 5.0 production/operation plan.
5.1 production facility and capacity.

s/no Item. Quantity. Cost Capacity.

1 Pickup 2 2,000,000 CC1800

2 Office 1 room 20,000 5 office personnel

3 store 1 room 20,000 1 tone of

equipment/rem
ovable
equipment

4 Electricity 3 phase 20,000 800W

5 Tables 2 25,000 6 by 4

6 chairs 4 600 1 per personnel

7 Shelves 2 1,000 Large size

8 Computers 4 25,000 pc

9 Workshop 1 room 20,000 15by18

5.1.1 Firm layout.

Offices.
Work shop

Store.

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 5.1.2 Repairs and maintainence.

s/no item quantity Frequent

1 Pickup 2 4 times a year

2 Building 3 2 times a year

3 Computer 4 4 times a year

5.2 Production strategy.

s/no product price quantity Total cost

1 Solar 4,000 5,000 2,000,000

2 Battery 6,000 6,000 3,600,000

3 Wires 3,500 20 rolls 70,0001

4 pipes 100 10,000 1,000,000

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 ** ** ** Total 6,670,000

5.3 Production process.

TOMCOM will use techniques to develop products finishing and packaging products.It will then
estimate distribution costs putting into customers care and then attributes preferred of products by
customers.

5.4production affecting operation

5.4.1 Health regulations

Sick employee will be given leave.

In healthy act 2017 in article 43(1)(c) and 53(!)(c) of the constitution;the national healthy system
shall ensure that measures for managing environmental risks factors certain occurance and
distribution of diseases are but in place and implemented.
We will work following the regulations.

5.4.2 Safety.

The business will provide the required gears to anyone entering

the store and the workshop.
• Every employees at work place shall ensure his/her own safety and those around him/her
• all employees to wear protective equipment or clothes provided.

5.4.3 Environmental regulation.

No person shall dispose e-west by burning,.

No person shall carry out open burning of electrical equipment containing e-west.
The business will put dustbins in categorical of different waste so as to be easy in collecting them.

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31
 6.0 FINANCIAL PLAN.
60 pe-operational cost.

These are the expenses occurred before the business operational.

Item Cost

Prepaid rent 60,000

Permits 8,000

Electricity bills 25,000

Total 93,000

6.2 Working capital

.
Working capital= total current assets – total liabilities.

Current assets January to April May to August September to

December

stock 6,670,000 6,670,000 6,670,000

Cash in bank 5,000,000 5,005,000 5,010,000

Cash in hand 3,000,000 3,000,000 3,000,000

total 13,670,000 13,675,000 13,680,000

Current liabilities

Short term loans 4,000,000 0.00 0.00

Repairs 10,000 10,000 10,000

Total current liabilities 4,010,000 10,000 10,000

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Working capital 9,660,000 6,660,000 6,660,000

6.3 Projected cash flow statement.

Projected cash flow as from January 2027 -2027 December

1tem Jan - April May - August September - December

Cash balance 384,500 384,100 384,200

Interest from bank 50,0000 50,000 50,000

Total cash flow 434,500 434,100 434,200

Cash outflow

Purchases 6,670,000 0.00 0.00

salaries 304,000 304,000 304,200

Rent 60,000 60,000 60,000

Electricity 25,000 25,000 25,000

Total out flow 7,059,000 389,000 389,200

Net cash flow -6,235,500 45,100 45,000

net cash flow = total cash flow – cash out flow.

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 6.4 Income statement

Elite surveying and consulting.

Income state ment as from January 2027 to December 2027.

Item January-April May-August September-December.

Sales 9,104,000 8,880,000 7,200,000

Cost of services 4,320,000 4,160,000 3,200,000

Gross profit 4,784,000 4,720,000 1,000,000

Expenses

Salaries 304,000 304,000 304,000

Electricity 25,000 25,000 25,000

Advertisement 10,000 10,000 10,000

licenses 8,000 8,000 8,000

Mantainance 25,000 25,000 25,000

Insurance 30,000 30,000 30,000

Total expenses 402,000 402,000 402,000

Net profit before tax 31,000 31,500 31,050

Taxation 16% 11,000 10,900 12,000

Net pfofit after tax 50,000 42,000 45,000

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 6.5 Balance sheet.

Elite survey and consulting.

Balance sheet as from 1st January- April,May – August,September- December.

Item Jan - April May - August Sep - December

Fixed assets

furniture 1,000 1,000 1,000

vehicles 2,000,000 2,000,000 2,000,000

Total fixed assets 2,001,000 2,001,000 2,001,000

Current assets

stock 6,670,000 6,660,000 6,570,000

Cash at bank 5,000,000 5,000,000 5,000,000

Cash in hand 3,000,000 3,000,000 3,000,000

Total current 14,670,000 14,660,000 14,570,000

assets

Total assets 16,671,000 16,661,000 16,570,000

Current liabilities

Short time loan 4,000,000 1,000,000 2,000,000

Total current 4,000,000 1,000,000 2,000,000

liabilities

Long term
liabilities

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Owners equity 5,000,000 4,000,000 3,000,000

Total long term 5,000,000 4,000,000 3,000,000

liabilities

Total liabilities 9,000,000 5,000,000 5,000,000

Net profit 11,000,000 7,000,000 7,000,000

Total (net profit - 2,000,000 2,000,000 2,000,000

liabilities)

6.6 Break even point

determination of fixed cost

Fixed cost Junuary- April May -Aaugust September- December

salaries 304,000 304,000 304,000

rent 60,000 60,000 60,000

license 8,000 8,000 8,000

Insurance 30,000 30,000 30,000

Total 402,000 402,000 402,000

Determination of variable cosr

Variable cost January - April May - August September - December

electricity 30,000 30,000 30,000

advertisement 10,000 10,000 10,000

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Mantainence 25,000 25,000 25,000

internet 3,500 5,000 4,500

Total 68,500 70,000 69,500

Calculation of break-even point

break-even = contribution/sales
contribution = sales – variable cost
January – April
contribution =9,104,000 – 68,000=9,036,000
contribution margin =9,036,00/9,104,000
=0.98
break even point=402,000/0.98
=406,626.83
may – august
condition=8,880,000-70,000
=8,810,000
contribution margin=8,810,000/8,880,000
=0.99
break even point=402,000/0.99
=406060.60
September – December
contribution=7,200,000-69,500
=7,130,500
contribution margin=7,130,500/7,200,000

37
 = 0.99
break-even point=402,000/0.99
=405,918.23

6.7 calculate of profitability ratio

gross profitability percentage
%G.P= { Gross profit/sales}

JANUARY – APRIL.

%GP= 4,784,000 × 100

9104000
=53%

MAY - AUGUST

%GP = 4,720,000
8,880,000 × 100

=53%

%GP = 1,000,000
7,200,000
=14%

38
 6.8 Return of investment

R.I.O= Net profit × 100

total fixed assets

39
 APPENDIX І
CRITICAL RISKS
The risks expected to be encountered during the operation of the business include the following:
• Over taxation in the region may affect the operation budget of the business
• In case of theft or any fire-outbreaks most of the facilities used to run the business may be
damaged thus affecting business negatively.
• Presence of corruption by some members may affect business negatively.
The mitigation to be used during the operation of the business includes the following.
➢ Insurence cover.
➢ Prudence management and adhere to corporate
➢ Maintain enough working capital
➢ develop risk management plan.

40
 APPENDIX ІІ

REFERENCE
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women in entrepreneurship:A global perspective(pp.359-373).New York,NK:Routledge.

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