BUSINESS DESCRIPTION

SAFECARE AUTO SPARE PARTS SHOP

The owner of the proposed business will be Nambuye I Makokha, aged 23 yrs who is
undertaking craft certificate in Automotive Engineering under NYS Vocational Training
Institute. Current residence; Nairobi Industrial Area. I attended Mahanga Secondary school, and
attained KCSE. In the year 2017, grade D (plain).

I am the owner of the proposed business which worked closely with Automotive Enterprise. The
business is a Sole proprietorship. The business name is SAFECARE AUTO SPARE PARTS
SHOP. I am well trained and equipped with skill and a lot of experience of automobile vehicles.
I have also an idea of all vehicle spare parts.

My business will be dealing with selling of genuine vehicle spare parts. On addition to that I will
be also selling both new and used spare parts. My business will be located at South B along
Shimo La Tewa road. My shop entails all vehicle spare parts namely:

i. Oil Filter
ii. Engine Oil
iii. Radiators
iv. Alternators
v. Batteries
vi. Coil Springs
vii. Brake lining/ pads
viii. Sheering systems
ix. Gear box and many more.

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1.0.1 OPPORTUNITIES AND ENTRY

There is a high population; due to this reason there will be an increase of customers. There is
good infrastructure; there is well tarmacked road to facilitate good transportation of products in
and out of the business. Good security; the area has good security due to the presence of Land
Mawe Police station, who always take patrol during the day and night hours hence safeguarding
every activity taking place in the area.

I will be offering high quality goods and products at affordable and bargainnable prices to my
customers. My business will be penetrating and gaining acceptance in the market, I will do the
following: placing many banners of the business at different parts. By advertising of the business
through social media, that is; radios, Facebook and twitter. Also having a good public relation
with the customers of which my competitors may not have.

1.0.2 TARGET MARKET

I am targeting to have more customers who are in need with my services, that is Subaru, Toyota
and Isuzu. This is due to provision of high quality goods and services to my customers. I am
expecting my business to rise due to the increase of number of customers.

1.0.3 COMPETITIVE ADVANTAGES

The business will have the following advantages over my competitors- I will be offering
discounts on every commodity that I offer to my customers. I will be offering proper and regular
promotions that will push my competitors behind me. I will be offering a one-week guarantee for
every spare that they buy. I will also be offering free delivery to my customers. I will also offer
high quality goods and products at affordable and bargainnable prices. My proper public
relations that will my business do to gain more customers.

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1.0.4 MANAGEMENT TEAM

Since the business is sole proprietorship and I will be the managing director. My responsibility
will be; planning, coordinating, organizing and directing. I will be having a Subordinate staff for
the smooth running of the business.

The presence of secretary will enable the manager to have a proper filling system, therefore
making work easier for the business. The presence of technicians will be diagnosing and
servicing. I will be having an accountant to assist the manager to make payment of entering cash
inflow and cash outflow and do all cash flow. The presence of cleaners to ensure the shop is to
clean and neat to attract customers, to avoid the spread of diseases due to used parts which are
harmful to our health. I will obtain supportive services that is; postal, banking,
telecommunication and insurance

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1.0.5 FINANCIAL PLAN

I will be having financial calculation of the business, it is listed and the desired financial
calculation documented. The proposed capitalization will be as follows;

Owners contribution – Ksh 50,000

Friends - Ksh 1,500,000

Bank - Ksh 3,000,000

Family - Ksh 100,000

Youth fund - Ksh 250, 000

Total - Ksh 4,675,000

My working hours will be as follows;

DAY OPENNING TIME CLOSSING TIME

Monday 7:30 am 4:30 pm
Tuesday 7:30 am 4:30 pm
Wednesday 7:30 am 4:30 pm
Thursday 7:30 am 4:30 pm
Friday 7:30 am 4:30 pm
Saturday 7:30 am 2:30 pm

Tea break 10:00 am 10:30 am

Lunch hour 1:00 pm 2:00 pm

Public holiday 8:00 am 3:00 pm

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1.0.6 CRITICAL RISKS, PROBLEMS AND SOLUTIONS

The main risk it will be competition from the large enterprises that have been established before
that is; Safezone Spare parts shop. The other problem is insecurity which may arise since the
business will not be running 24 hours, and the watchman will not be in also for 24 hours.

I will not be receiving incentives from donor agencies which it may be supporting my business to
grow since it is a small enterprise. There are also some few infrastructure problems that is,
shortage of power and water will hinder better visibility in the shop and cleanliness in the shop
respectively.

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 CHAPER ONE

1.0 BUSINESS DESCRIPTION

1.1 THE OWNER’S DETAILS

Safecare Auto spare parts shop will be owned by Nambuye I Makokha, who is a Kenyan citizen
aged 23 years old, born and brought up at Sitabicha Village at Bungoma county. The title
“Safecare” derived from my own creativity which I got from my studies.

IRINE MAKOKHA,

P.O BOX 21,

NAIROBI.

MOBILE NO: 0706 1991 24,

EMAIIL: opichoirine@gmail.com.

I have experienced and gained knowledge from the practical attachment Aratech Auto Garage.

1.2 BUSINESS VENTURE

1.2.1 BUSINES NAME

My business will be called Safecare Auto Spare Parts shop. It was derived from sole
proprietorship’s creativity.

1.2.2 LOCATION OF THE BUSINESS

Safecare Auto Spare parts shop will be located at South B along Shimo la Tewa road in Nairobi
County. The reason why I started this kind of business is that there was well tarmacked road to
facilitate good transport of goods and products in and out of my business. The presence of Land
Mawe police station is to provide good security in the area. Nearness from the Nairobi town

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promotes my business since export of goods and products from Japan are easily accessible from
me cite of work cot

pared to my competitors who are outside Nairobi County.

1.2.3 LEGAL FORMS OF THE BUSINESS

The business will take the form of sole proprietorship since I am the manager. I will be enjoying
the following advantage;

i. Decision making will be fast since there is no consolidation

ii. I will maintain the secrets of my business
iii. I will have close and personal conduct with my customer
iv. My business will just require few legal procedures to start it
v. I will be the boss since the business is mine
vi. I will enjoy the business alone
vii. I am also able to access the credit worthless of my customers.

1.3 MAJOR ACTIVITIES OF THE BUSINESS

The purpose of the proposed business is to offer high quality and reliable goods and products to
the public at competitive and affordable prices. This business will offer the following;

i. I will be offering one week guarantee for each spare part bought
ii. In case of new customer, I will be offering discounts and incentives
iii. I will be re-conducting old customers
iv. I will be offering free delivery of goods to my customers
v. I will be willing to change
vi. I will be letting customers try sample
vii. I will take advantage of online rating and review sites
viii. I will be selling new and genuine goods.

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1.4 PRINCIPAL CUSTOMERS

The most targeted customers are people with own matatu, government vehicles, public vehicle
and private vehicles because I will be selling to their new and genuine products.

1.5 AMOUNT INVESTED BY THE OWNER

The amount to be invested in the business will be as follows;

Owners contribution – Ksh 50,000

Friends - Ksh 1,500,000

Bank - Ksh 3,000,000

Family - Ksh 100,000

Youth fund - Ksh 250, 000

Total - Ksh 4,675,000

1.6 PRODUCTS AND SERVICES

My business falls under the sales service industry, this is involving importing and selling of
Automotive Spare Parts; examples oil filters, brake, pads and many more.

1.6.1 FEATURES OF THE PRODUCTION

I will be offering one week guarantee for each spare part bought. I will also offer incentives,
discounts, promotion towards my goods. I will also provide original products especially of other
firms. I will also ensure stabilizing prices and curb unsuitable market demand.

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1.6.2 BENEFITS OBTAINED FROM THE PRODUCT SERVICE

The customers will benefit from having new spare part which will make their vehicle work well.
They will also benefit from receiving high quality goods and products at affordable prices. I will
employ some people who will enable them to meet their daily needs; that is watchmen

1.6.3 UNIQUE FEACTURES OF THE GOODS AND SERVICES

My business will be offering the advancement of technology which will make it to be more
famous. My services are obtained at affordable, high quality services, I will be using
computerized machine to diagnose and detect the problems. I will be offering discounts to my
customers after every services. I will also offer qualified skilled personnel to offer quality
services to my customers. I will also offer free delivery to customers who are far from my shop
if they are in need.

1.7 ENTRY AND GROWTH STRATEGY

1.7.1 ENTRY STRATEGY

The entry to the market is to be done within the shortest time possible through;

 Lowering of the prices of my services and goods compared to my competitors.

 Employment of qualified personnel to be dealing with customers.
 I will provide a wide range of products compared to my competitors.
 I will do advertisement campaign to make my customers aware of my services

1.7.2 STRENGTH AND WEAKNESSES OF COMPETITORS

The research will be done in the market to establish the weaknesses and strength of competitors
so that the business can take advantage of winning the customers. This will only be done by
establishing SWOT analysis.

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 Competitors Strength Weaknesses Opportunities Threats
AutoZone  Good  Unqualified  Good  High
financial Personnel geographical competitors
relation  Poor location. High taxation.
 Skilled communicatio  Good
labor n skills government
regulations.
Safezone  Offer  Poor  Good  Insecurity
wide management infrastructure
range of
services

JasAuto  Nearness  Poor  Growing  High

to technology. number of bargaining
highway.  Inadequate customers. power of
 High customers.  Good supplier.
quality geographical
material. areas.

1.7.3 COMPETITIVE ADVANTAGE OF THE BUSINESS

The business will have an advantage of being near potential customers who can easily access the
business premises. Availability of goods and products that are of high quality which will attract
and maintain customers, I will have qualified staffs under my supervision so that to offer
qualified services to the customers. Use of advanced technology to detect the problem on offered
services. Good public relations to customers, proper and regular promotion to maintain
customers.

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1.7.4 PRICING PLAN

The following factors will be considered when choosing the pricing of the object that is;

Competitor price-by comparing the competitor price, the owner will be able to provide services
at a lower price to attract more customers. Market demand-the low of demand will be considered
which state that the higher the demand the higher the price and the higher the supply the low the
price. Discount facilities-discount will be provided to the customers according to the mode of
buying example regular customers will be getting after sale services and the irregular customers
will get a discount on product they are looking that day.

Location-where there are commercial customers the services will be offered at higher price due
to strategic position of the business. Economy of the country-the higher the economy of the
country leads to higher pricing of products. Government policy-taxation imposed on the products
and services both in the business will be reflected on price of product, therefore if the taxes are
higher the product will also be a bit higher or when taxes are lower the services will be at
affordable prices.

1.7.5 PLANS TO ATTRACT CUSTOMERS

To attract many customers, the business will improve the quality of the product and services, it
offers discounts to customers according to their power of purchasing. Regular advertisement to
maintain the awareness to customers, therefore attracting them my business. Qualified personnel
that will advertise my products. Transport will be offered according to the vicinity.

1.8 GROWTH STRATEGY

This is done through carrying out market research and promotion activities to reach more people
in the unexploited located area hence entrance of my business in to new market segments. The
business will be insured against risks such as fire and theft to ensure the continuity of the
business in case of a loss. There shall be agents placed in strategic centers open in south B town
so that the customers can get goods and products as nearer as possible to them. To ensure my
business growth, I will employ professional personnel to satisfy the need of customers. In case of
financial constrains the business will be ready to borrow loans from financial institutions such as

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banks, friends, and youth funds. Advancing technology within my business to improve on
customer services.

1.9 GROWTH PLAN

1.9.1 TREDS WHICH SIGNALS BUSINESS GROWTH

Increasing number of workers shows that my business is growing. When potential customers
tend to increase, this shows that there is growth. Opening of new branches shows that the
business is growing. The increase in capital of assets, example; high profit margin.

1.9.2 OPPORTUNITIES ARISING FROM THE TREND

Due to increased assets and capital of the business, the business will be able to expand and
employ more people hence will be able to reduce the rate of employment. The government will
collect a lot of revenue from my business due to taxation, this means that the revenue to the
government will increase. Living standard of customers will improve due to high quality
products and services the business will offer.

1.9.3 PLAN TO TAKE ADVANTAGES OF THE OPPORTUNITIES

Due to good infrastructure, this will lead to number of customers looking for products and goods
therefore increasing my profit margin. Due to good climatic conditions will lead increase in
number of customers therefore to increase the profit margin of the business. Due to increased
number of customers, which will lead to high profit margins that will make my business to
expand and therefore, it will offer employment opportunities to people.

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The government will collect less amount of money through taxation which will give in the
expansion of my business from profit gained. The more the secure of my business area the more
the customers I get to my business.

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 CHAPTER TWO

2.0 MARKENTING PLAN

2.1 INTRODUCTION

The marketing plan helps to identify the number of potential customers in the market. It is also
through marketing plan where the owner of the business can identify the preferences and tests of
customers. Hence I will ensure goods and services are available at affordable price due to high
demand from my customers. I will also offer quality goods to attract customers and maintain
them.

2.2 POTENTIAL CUSTOMERS

There are three categories of customers that I will dealing with namely;

I. Individual customers- these are customers who will purchase spare parts for personal
use and satisfaction that is brake pads, air filters and engine oil.
II. Institution- this will include vehicles such as school bus, university vehicles and
institution vehicles.
III. Light commercial vehicles- this will include Toyota cars, Nissan cars and Subaru.

2.3 MARKET SHARE

The business is in position of taking larger share of the market starting with 55%. It is expected
to rise to the strategic position of my shop, offering high quality goods and products, good
security around the area, good infrastructure and proper marketing tactics. The advantage is that I
have few businesses that are similar to that of mine.

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2.4 COMPETITION

The business will encounter competition from the readily established businesses and more so the
number of customers in the business will be determined by the high quality products that I will
be offering. The competitors include;

1. AUTOEXPRESS SPARE PARTS SHOP,

PO BOX 23,

NAIROBI.

2. JAS-AUTO SPARE PARTS SHOP,

PO BOX 346,

NAIROBI.

3. SAFEZONE AUTO SPARE PARTS SHOP,

PO BOX 212,

NAIROBI.

ITEMS MINE COMPETITOR

Quality 5 4
Public relation 3 3
Pricing 3 2
Quality 4 3
Reputation 3 4
Sales 3 5

key;

5=excellent, 4=very good, 3=good, 2=fair, 1=poor

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From the performance analysis table, it shows that the business is well place and performance is
expected to rise with time.

COMPETITOR 1: AUTOEXPRESS SPARE PARTS SHOP

This business is located at South B opposite Dar-eel salam road, it has been operating for 10
years. It is near to the highway so it is an advantage since he gets attracted to more customers. It
has poor communication skills which makes him/her to lose customers to my business. He/she
experience high taxation from the government which makes him to get lower profit compared to
my shop.

COMPETITOR 2: SAFEZONE SPARE PARTS SHOP

This business is located at South B opposite Matta Hospital. It has been operating for five years.
It has a wide range of services. It experiences poor management which makes it to operate at low
rate, it gives encouragement to work on management to win all customers to my business. It also
experiences high bargaining power from the customers of which I allow in my shop that I offer
high quality products and goods at a bargainnable prices to attract my customers.

COMPETITOR 3: JAS-AUTO SPARE PARTS SHOPS

This business is located at South B Opposite Rehabilitation Center. It has been operating for
seven years. It has well skilled labor personnel. More so the business has poor technology since
it uses outdated machinery to perform it services to customers. On the other hand I use modern
technology like lifting machines in my shop.

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2.4.1 COPING UP WITH COMPETITION

To cope up with competition I will allow my workers to attend many seminars, conferences and
workshops to acquire more skill and knowledge on how to handle customers and also acquire
automobile skills.

I will be selecting and allocating my employees according to gender equality. The business will
also cope with competition using modern technology which will ensure accuracy and faster
services to the customers. I will cope with competition by offering high quality goods and
products at a bargainnable prices. I will also use the language of courtesy to attract and maintain
customers.

2.5 ADVERTISEMENTS AND PROMOTIONS

The business is aided to serve customers around South B. It is aimed to create awareness of
Safecare Auto Spare parts shop. In order to reach a larger number of people, I will do extensive
advertisements in order to make them aware of my business. This includes:

 Use of local radio station that is SULWE FM which will allow translation into
national language (Kiswahili) for I will be operating with all tribes across the
country.
 Use of posters,
 Use of road shows
 Use of friends.

The public is to be made aware about the location of the business, the products and goods I will
be offering.

The promotions will take place while the business is on-going and after sale services will include
selling of engine oil, air cleaners and oil filters.

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In order to reach a larger of customers, the sole proprietorship will carry out promotions of her
services by offering special offers which includes:

 Lowering the prices of goods and products.

 Giving out discounts to new customers on the commodities purchased.

2.6 PRICING STRATEGY

The business has to set a defined price for the products and goods offered. The price has to be
more reasonable than that of the competitors. My strategy will be fast to conduct a thorough
research from suppliers and fellow business persons. The demand of customers.

The quality of materials that I will be offering to my customers.

The economy of the country- when the economy is high the price will automatically rise.

Government policy- when the taxes will be high, the price will also go up too. The bus will be
located at strategic place due to influence of people around my shop.

2.7 SALES STRATEGIES

The business is intended to exploit its competitors’ weaknesses by use of good communication
skills to attract and maintain customers. That is, use of courteous language. I will have well
trained technicians to offer good services to my customers.

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 I will introduce the latest technology to make work faster and easier. I will be ready to hear and
understand my customers. Good public relation will be used in my business to lift the brand
awareness, build credibility, engage my target audience and bring more sales than my
competitors.

I will also sell my products and goods to my customers directly since I will be the manager of
my business compared to my competitors.

2.8 DISTRIBUTION STRATEGY

The sale agents will take part in the distribution services upon the opening of the branches,
customers will be able to get goods and products at their nearest station. I will distribute
procures.

Distribution strategy charts

=SAFECARE AUTO SPARE PARTS SERVICES

PUBLIC SERVICE SPARE PARTS INVINDUAL

INDIVINDUAL
AUTO
DEALERS CAR OWNERS
VEHICLE OWNERS MECHANICS
S

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Price list

Product Cost (Ksh)

Brake pads 2,500
Coil spring 6,000
Engine oil 3,000
Air filter 800
Oil filter 1,000
Battery 7,000
Steering system 10,000
Alternator 5,000
Engine head gasket 3,000
Gearbox 50,000
Clutches 20,000
Radiators 10,000
Bolts and nuts 200
Pistons 4,000
Steering fluid 5,000
Braking fluid 4,500

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 CHAPTER 3

3.0 ORGANIZATION AND MANAGEMENT

3.1 ORGANIZATIONAL PLAN

Organization management arise from the need to carry out business activities that ensures the
firm runs successfully and effectively. The object of the firm is to provide the required
framework within which management takes.

Since the business is experiencing the problem of dealing with larger number of customers, the
work must be coordinated in such a way that each member is comfortable enough for him to
perform his/her duties and responsibilities.

Each member will be allocated according to his level of education and qualifications.

3.1.1 ORGANIZATION STRUCTURE

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3.2 BUSINESS MANAGER

The business manager who is the owner of the business will acquire an automotive mechanical
engineering craft certificate by the time of commencement of the business shop.

The manager will be expected to undertake the following duties;

 Delegation of duties
 Formulating of the salary scales
 Coming up with the business policies
 Helping on how to solve disputes
 Recruiting of new employees
 Deciding on time schedules
 Creation of good public relation with other businesses
 Authorize and finance for the payment of salary
 Learning and evaluation of department duties’

3.3 KEY PERSONNEL

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