Contents

Title pages
EXECUTIVE SUMMARY ....................................................................................... 3
CHAPTER ONE ..........................................................................................................
1.0 Sponsor ....................................................................................................................
1.1 Business name ...........................................................................................................
1.2 Mission statement ........................................................................................................
1.3 Business location ...........................................................................................................
1.4 Form of Business Ownership ..........................................................................................
1.5 Type of Business ..............................................................................................................
1.6 Products and services ........................................................................................................
1.7 Justification of the Business Opportunities........................................................................
1.8 The industry ........................................................................................................................
1.9 Business Objectives Mission and Visions ............................................................................
1.10 Internal assessment ...........................................................................................................
1.11 Growth and Entry Strategy ...............................................................................................
CHAPTER TWO .......................................................................................................................
2.0 Marketing Objectives ..........................................................................................................
2.2 Target Customer..................................................................................................................
2.3 Market Share .......................................................................................................................
2.4 Advertisement and Promotion Strategies............................................................................
2.5 Pricing .................................................................................................................................
2.6 Sale tactics ..........................................................................................................................
2.7 Distribution .........................................................................................................................

2.8 Customer service .................................................................................................................

2.9 Duties and Responsibility ...................................................................................................
2.10 Recruitment .......................................................................................................................
2.11 Training .............................................................................................................................
2.12 Promotion .......................................................................................................................
EXECUTIVE SUMMARY
The Multi-purpose business center Building Construction Company Business is an enterprise
that wants to involve itself in building residential houses and commercial houses and other types
of house for people usage and rental purpose the business realized that many people were in such
of residential house and rental houses which were affordable and modern. The capital for the
business is 15 million birr. Out of this 4.5,000,000 million birr 30% by promoter M.r Abel Kiros
and 10.5,000,000 million birr will cover by bank loan . The houses will build around Sabiyan
camps in wereda 02 on the area around 300 karameters.
The enterprise plans to build houses which will be affordable by all people from different walks
of life. This houses includes

Low class houses

Middle class houses

High class houses

The business will have a good market share since it intends to have modern houses which are
affordable to all This will be will be supported by the organization and the management team
that has been put into place. Its operation and production are also well organized to ensure that
the business do not suffer in future maybe by running out of products and If the issue is finances
business tends to use the entrepreneurs savings loans and many more sources The business has
also mechanisms to use in order to overcome any kind of risks that may arise during its operation

1.Introduction1.
1.General Background
The current fast and dynamic economic growth of Ethiopia especially in urban area necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to
support the overall economic development sustainable. In the building sector of the economy, the
multi- purpose in the one becoming rapidly expanding in urban areas of the nation since dynamic
economic development of urban economy requires the construction of these buildings in towns
to support the growing of business service sectors like supermarkets, Beauty salon, shops, offices
cinemas, Computer Center, Cafeterias, restaurant, assembly hall, guest house and other activities.
In this regard, mixed used building expands in the all parts of the country. Investment and
property development play an important role in any emerging markets or economies. Property
generally comprises reside vial houses and commercial real estate property (mainly mixed us
building) developed for rental business and sale. The property investment market in Ethiopia
 remained under developed for several years. As a consequence, the supply of residential houses
and non-residential real estate that can be used for residence, office space, shopping malls and
catering services in the urban centers of the country is disproportionately low to cope with the
growing demand in the country spinning from the average growth in GDP of 5.5 percent over the
last ten years and population increase. The relatively good performance of the macro-economy
(real growth in GDP, low inflation rate and growth in investment and export sector) has
stimulated unprecedented investment growth in the property sector over the last five years. The
growth of investment in the property market over the last five years in consistent with the global
experience suggesting that

investment in the residential and commercial property (real estate) is greatly influenced by the
performance of the macro economic conditions. In general, a stable macroeconomic condition
leads to economic and business growth and develops investors’ confidence. This certainly spurs
large demand in the property market for office space, shopping malls, catering services,
apartment and residential houses. Following growing demand trends, and with the expectation of
high return on their investment capital, large number of land developers pooled their financial
resources and invested in the property market. To this effect, the owner of the envisioned Mixed
Use Building Ato Abel Kiros_________ who has been living for long time in this town, planned
to construct in Diredawa town and undertaken this project study to check the market, technical
and financial feasibility of this project. The promoter is very ambitious and committed to realize
the project. Hence, she expects to get the necessary support from the city administration to make
the project to be operational. Looking at the past trends and permits issues by the Government to
the construction of real estate properties including the mixed use building in the major urban
areas of the country specially in Addis Ababa one can easily conclude that the momentum is
more likely to continue .Besides, the government polices and incentives for the private sector
investment are very promising that motivates the promoter to engaged in mixed use building
business

1.3.Project description
The long-term goal of the project is become the best choice in Diredawa and its surrounding
areas by creating a differentiated experience capitalizing on personal service. The proposed
project will have a total area of 300m2, designed to reader a multipurpose giving business, which
will in turn plays significant role towards solving shortage of business center in Diredawa town.
The historical nature of the town as business unique location in one of the most attractive parts of
the occurrence of the town along the along the Ethiopian Rift Valley lakes laid a fertile ground
for future promising growth of the town. The owner plans the project to render banking and
insurance, shopping facility, bank and cafeteria services to create high quality class to satisfy the
interest of customers in the town. Based on environmental and other considerations, the
entrepreneur has determined the type and size of the building which is already
determined by the site; conceptual planning and preliminary analysis have been carried out by
analysts. In order to attract its clients to the service, the project will develop high standard shop
 & banking rooms and office of best choices and will also save best quality restaurant and café,
national and international dish and various types of soft drinks

Project Rationale Internationally

the economic growth this country is experiencing, the good governance created and even if the
town is in its nascent stage of development these project are the first in kind in the town are
feasible and would be a model development in promoting and attracting different urban
investments .In order to respond to the created environment the town is in need of major, basic
and feasible urban projects to be developed. The existing promising investment opportunities, the
demands of service needs along with relatively sound investment support made by the
government in such kinds of feasible projects, compelled the project promoter to initiate the
multipurpose oriented business project to be established. Despite the promising business
opportunities of the town, the trend on such kinds of investment found to minimal. Since there is
no such kind of modern tourist facilities and business station in the town to accommodate the
existing demand of these services in the town and the surrounding areas. The mismatch between
the demand for and supply of such kind of services in easily observed in the town. Therefore, the
existing shortage or absence in the supply of these services, along with its commercial and
administrative access, better location and infrastructure access, escalating trend of urbanization
and business activities, thus it is with such reason that this project is identified and proposed and
assumed to be more profitable.

In general, the country’s decentralized state based economy, privatized and free market
economy; good governance creates a favorable environment for the development of investment
for private investors
 CHAPTER ONE
Sponsor
Every business has the owner and the owner of the Multi-purpose business center Building
Construction Company is individual between several members holding various qualifications in
this field and experience in estate designing and house planning.
1.1 Business name
The business name is Multi-purpose business center Building Construction Company. This is
because the company will focus on a lot of construction in residential and rental houses. The
companies address is; Diredawa
Multi-purpose business center Building Construction Company is in Diredawa city Sabiyan
camps.
 1.2 Mission statement
The business mission statement is standard houses for harmonious living. The company wants its
Customers to have modern houses to live in and that’s why it came up with such a mission
statement.

1.3 Business location

This business is located in Diredawa city Market. The main reasons and factors that enhanced the
location of the business are;
1. The security in the area is impressing due to the police station around
2. The roads are well built hence less traffic jam
3. The place is accessible by merchant from Djibiuoti
1.4 Form of Business Ownership
The Multi-purpose business center Building Construction Company is owned up by Abel Kiros
forming a private limited company which will enable the business to enjoy the following
advantages in addition to limited liability
The business will pay corporation tax on its taxable profits and tend to be exempt from higher
personnel income tax rates. The business will enjoy permanent succession because the business
is its own legal entity. The employees and shareholders acts agents of the company and therefore
do not affect the company if they leave In case of death or resignation the business article of
association allocates the shares to the remaining member.

the significance of the project

The envisaged project deemed to add to the economic development of the nation in general and
zone and town in specific with following ways:
A. Source of Revenue As public policy of any nation, the government collects different forms of
taxes from different business organizations and individuals. Among the different forms of taxes,
business income taxes, payroll income tax and VAT are collected from undertaking business
activities. Therefore, the building will serve as sources of revenue for the town as well as for the
region.
 B. Employment opportunity One of the problems that our country faced is unemployment.
Therefore, the current objective of the government is working on tackling the problem of
unemployment and fostering the development process either through creating self employment
or employment in other organization. Hence, this project will hire 26 individuals and more than
eighty individual during construction.
C. Sources of social service In addition to serving as a source of employment and income for the
region, the project renders social services for different group of people. Hence, it Is also provide
the following services;
Serve as a source of mental satisfaction for the different users,
Since, the center encompasses different recreational areas; it will divert the attention of the users
from different evil deeds.
It deemed to minimize the demand for shops and other bundles of services in the area.
Furthermore, it serves as the pilot experience and ground for other investor to enter in to such
kinds of urban development. It also contributes on the efforts made on as a character given
building for physical development pattern of the townscape.

Type of Business
The type of business is market center. Under this business the construction of residential houses
is carried out for all types of people. The type of houses constructed are categorized into three
stages.

Low class houses

Middle class houses
High class house

Products and services

The main product in this kind of business is building all kind of houses ranging from residential
Houses to social halls. The houses will be affordable to all people from different walks of people.
This includes low, middle and high class houses, the product will be for renting also for
purchasing according to the demand of the client. The company will offer some services to the
customers to show hospitality and also as a way of showing gratitude to the customers for
choosing our products/houses. The services will include; free transport-this will happen when
they relocate to our houses.

Justification of the Business Opportunities

The main reason that led to implementation of this business is because there is high demand of
residential houses all over the country. Many people think ready built houses are easy to own as
compared to building one for you. This thought or perception made the company to come up
with the construction business. The aim of the business is to make and provide the customer
With modern houses which are affordable and safe for their living. This is done by making sure
the company builds houses which are affordable to different kind of people from different walk
of life and also by making sure that the houses built are strong enough to withstand any kind of
catastrophe.
1.8 The industry
The Multi-purpose business center Building Construction Company falls under construction
industry

Size of industry
The business is a fast growing sector, each day the growth is escalating due to high demands of
Settlement for people all over the world. In the country the demand is the same as compared to
other parts of the country and the world at large. This industry is wide to the extent of covering
all real estate categories including single and multifamily residential dwellings commercial
dwellings, industrial and agricultural, land offices space, go-downs and ware houses, retail
outlets and shopping centers.
The number in the region *100 Total number1753 X100 =33%5376 According to the survey the
industry is growing rapidly due to high demands of residential houses.

The Industrial Trends and Prospect

Ethiopia is the most developing country in east Africa region and the middle class is growing
rapidly creating opportunities for housing. Business in tourism has increased significantly in
Oromia creating the need for more accommodation facilities. These are a need for investment in
affordable hotel. Accommodation facilitates that are up to standard with the rest of the world.
Low cost project remains the eternal gap in the market as potential demand is huge. However
due to the absence of good infrastructure in many parts of the country the costs and therefore sale
prices of this projects are such that the homes are not really affordable for the target market. The
security issues also have created difficulties in leaving in some areas of the region due to fears of
attack .Technology has been a great challenge to the real estate sector too, technology is dynamic
and as we know it changes within a very short time as a matter of fact this technology has kept
sector on its toes since the sector is left with no choice but to change with the technology though
it is very expensive to by.
Despite this technology having its demerits it has its merits too. It has propelled the sector to
great heights in terms of service rendering and products producing. According to the statistics
and if the statistic is something to go by then I can say the real estate sector has been growing
from year to year. Many forms have been created in Diredawa and in other parts of the country
giving the sector the privilege of being among the sectors that are rapidly growing in the country

Key Characteristics of the Industry

Anyone setting up a company needs to start by investing money in the project you need to find
out how much you need to invest by planning capital requirement and that is what is the business
is putting much attention on as it prepares to venture into the market Capital requirement is a key
plan especially if the business is planning to or needs to apply for government or assistance or
for a bank loan. Multi-purpose market center Construction industry is planning to get some of its
funds from bank loans and government and that is why it has to do a lot of thorough planning of
the capital the following are the cost which might accrue during the business preparation for the
lunch
1) Consultancy costs
2) Notaries fee
3) Operational expenses for goods
4) Vehicle and offices expenses
5) Machines and buildings cost
6) Staff salary
Fixed costs- they are costs that you will incur in the operation whether you are creating the profit
or not they include; Insurances, loans payment and lease or rent payment equipment’s inventory
and owner income are also included.

The business will incur variable costs-they are substantially from month to month and are based
on the usage, they include advertising delivering and shipping charges also utilities and
employment ways are included

1.9 Business Objectives Mission and Visions

Every company or business has objectives, mission and visions which helps the business to be
focused and have goals to achieve .objectives helps the company to move on track and it is easy
for the company to assess its success as per the achievement it has made

Objectives
 To construct and develop modern shops, offices, and restaurant, bedroom & cafeteria facilities
that enable to provide standard services to visitors.
To undertake trading and other refuted business activities that enable to generate a reasonable to
the invested capital.
To develop modern business center that would provide services of international standard in order
to attract foreign visitors and thereby contribute to wards the generation of hard currency for the
country.
To create employment opportunities for the population in the town and
Contribute towards the beautification of the town through the construction of modern building
infrastructure and facilities
The business objective is to build a lot of residential and a social halls unto 40% 2025 by making
the house affordable and modern the enterprise will strive employment opportunity to the owner
and other members of the community who will need work

Goals
To complete a quarter of the business intended project within the first 1 year to asses
commitment To improve the number and quality of residential houses in the region To built
different types of houses that are affordable to its customers

Mission
To be the best company that can create and design attractive homes to our customers. This is by
having the best engineers and designers who are experienced to do the jobs.

Vision
The business wants to expand regionally and make itself popular in east Africa by marketing it
and building houses that are standard and modern

1.10 Internal assessment

I. Strength
The location where the business is taking place has good climatic history. It is not dry neither is
to wet, it is accessible with both electricity and water The security is good since it is located near
the police station The technology has also boosted the project by making it simple and easy to be
done. The project has available market.
II.Weakness
The big challenge facing the project is capital; capital is limited due to many requirements
involved in starting up the project also the limited human resources acts as a barrier to the
accomplishment of the project.

.III.Opportunities
The project has numerous opportunities since it is entitled to expansion with the rising demands
of residential houses. The government has also thrown weight behind the sector by encouraging
the industry to continue with its project.

Threats
The field has numerous people and companies who bring about a lot of competition. This
competition can range from the quality of products to the price of the product this has pushed
many companies to deep dip into their pockets in order to attract the attention of the customer
and remain top.

1.11 Growth and Entry Strategy

Entry strategy
Entry strategy is very important for any business which wan to venture into the market, the
strategy helps the developer to have some tactics that will guide him in monitoring how the
business is doing and how to enter the market the enterprise will begin operating in the month of
January 2013.this are some of the business strategies The advertising methods during this period
and other subsequent periods will be through posters stickers, journals and use of employees and
customers as sales representatives

Growth
For an enterprise to expand there must be growth in the business. A business is termed successful
when it grows in terms of size and profit income.

CHAPTER TWO
2.0 Marketing Objectives
Multi –purpose business center Building Construction Company will have many customers to
sell its products to. The business is targeting the customers around the location and others from
far. The houses built along the Sabiyan are targeting customers from Diredawa city. This are
merchant who are the city or outside the city and want to reside around the university area The
business is expected to hold a market share of 15%initially but his is expected to rise to25%as
operations and construction continues. Multi –purpose business center Building Construction
Company Construction Industry will rely on the use of radios television set, magazines and
stickers as well as billboards and newspapers to have a big market share. It is interested to note
that both locals and international media will be used to advertise for the presence of our products
the business will strive to have a competitive pricing system whereby only high and moderate
prices will be offered to the customers, the business will ensure this by making sure it deals with
the customers directly without using middlemen
2.2 Target Customer
The business will have both commercial and individual and as a matter of facts the Multi –
purpose business center Building Construction Company estate plans to build low, middle and
high class houses, conferences hall, and many more types of houses. The business decided to do
business with both individuals and commercials so that no one should feel left out; this will also
increase the market share of the business. if the enterprise serves a number of customers in the
forms of individual, groups of individuals institution government departments and other social
organization

2.3 Market Share

The business intention is to grow by 15% and later to have an increase in market share of up
to25%.despite all this plans the business has got a lot of competition. The competitions are both
from within the region and outside the region2CompetitionThe following enterprises will be
expected to compete alongside multi-purpose business center Building Construction Company

competitors strength weakness

They have special finance They suffer the weakness
base The have loyal of employees dissatisfaction
customers Their products credibility
are of moderate price
It have poor customer and
public relation
Offers quality products Good
expertise management It has
all the modern equipment
 2.4 Advertisement and Promotion Strategies
Advertising is trying to persuade people to buy a product or a service by announcing on the
internet, on the television and in newspapers. The business needs to be advertised to attract the
customers and to be recognized by the public which help the business to be much known to
people. The Multi-purpose market center Building Construction Company will use a host of
media to advertise and promote its products and services to the customers. The use of a radio as
mean of advertising and promotion will be of great use to the company. Both the locals and
international broadcasting Medias will be asked to assist in the advertising and promoting the
activities of the business. Also the use of newspaper and magazines will be maximized in
advertising and promoting the products of the business. The specific newspapers that the
enterprise intend to use are; the standard, the daily nation and the parent’s magazine Posters
stickers and letters will be also used to advertise the goods and services of multi-purpose market
center Building Construction Company. The posters will be printed and posted at all strategic
points in Diredawa town and other places. On other hand the stickers will also be produced and
distributed to as many vehicles as possible, the car owners will have them free of charge.

Promotion-This is a process of attracting people’s

Attention to your event, product etc. It can be done through reduction of prices or giving free
product after the customer has bought either one or more products
2.5 Pricing
At the beginning of the business operations the business will have to operate with normal prices
despite the high startup costs and operation the nature of the pricing will depend on fundamental
business factors, the cost of service, the quality of the product and services and the nature of
product to be solved will be the main determinants. With high cost of services and products the
price might be forced to hike, while with the low price of the product the price will be low The
market price at which the goals and services are currently charged will also be another
determinant that is if the products in the market are expensive then the price will rise but if the
prices of the product are low then the price will lower
The table 2.1 below is for price list of individual customers Products

Products Price per product (ksh)

Single room 1000,000
Self contained house 1.5,0000,0000
Family living house 2.5,0000,000
Social hall 3.5,000,000

Table 2.1 The price able for commercial customers

Products price Discount % Price per product(ksh

Single room 1000,000 20%
Self contained house 1.5,000,000 10%
Family living house 2.5,000,000 15%
Social hall 3.5,0000,000 10%

2.6 Sale tactics

The business will use a host of instrument to sell itself and its products There will be
advertisement placed in newspapers journals and poster. In addition the employees and
customers will be used as sales representatives. The enterprise will also engage a public relation
firms as means of promoting its activities and familiarizing itself with the public The use of
stickers and other publications to sell the business and its product will be undertaken as a very
large scale. Therefore inured to sell itself and the products Multi-purpose market center Building
Construction Company will use advertisements personal selling and public relation and also
publicity.

2.7 Distribution
In order to deal with its customers properly, the business will try to deal directly with customers.
This means there will be no middlemen to connect the business with the customers. This kind of
strategy will ensure direct assessment of the needs and aspirations of the customers by the
proprietor. As well it has the potential to limit communication expenses and other core problem
associated with consumers’ relationship management The business will encourage scenario
where customers are free to contact the owner at any time and vice verse

2.8 Customer service

The business intends to attract its customers by providing quality products better than those of
our competitors. We shall advertise our services and products to make the well
known to everyone. Customers will be given different services ranging from house repair, free
delivery of their goods to their new homes and also installation of their home applications will be
done free of charge. The management team will consist of the general manager
marketing managers and chief engineer manager they will ensure all their departments are in
order and running efficiently as required to enable smooth operation of the business activities

This management team will be highlighted

1. General Manager
2. Marketing manager
3. Chief engineer manager
Job title Qualification Duties Responsibility
General manager Holder of degree To evaluate Provides funds for
in civil engineering employees He running business He
and Business controls and manages the affairs of
Administration Proper oversees all the the business Evaluates
knowledge to make business activities He the business growth
sound decision Should undertakes all and performance
have general matters to do with Organizes and
business management the administration coordinates the
 skills Should be of operation of the
age 30 and above business
Chief engineer Should have a To come up with Assigning work to
degree in both best designs and plans other employees He
construction engineer Ensure the products will be inspecting
and information of the company are the projects started
communication up to required by the business for
technology rom a standard safety reasons He
recognized university will also be
in Ethiopia Should expected to inspect
have ability to his junior engineer
make complex
decision Should be
of age 25 and
above
architecture Holder of diploma Drawing well Can undertake any
in drawings and designed house plans other duty as many be
designs2 years explaining all the assigned Be able to
working experience drawing details to cope with all kinds of
Ability to work long the aimed patties drawings and designs
hours Can draw 2-3 Shaping drawings demanded by his
plans a day into different sizes employees
and design
Land surveyor Diploma in civil Advertise the Undertakes the
engineering - Three company on the sites services of repair
years experience- of construction- and maintenance of
Ability to attend Check whether the the land
and work long hours site has all the
important features for
construction he
inspects the land
constructor Commitment during should have 6 To carry out the work
working hours months of as provided by your
experience- Ability to senior
work for long hours

2.10 Recruitment
This is the process to get someone to work in the company or join an organization The function
of recruitment at the center will be undertaken by the manager with the assistance of the
marketing manager, the potential candidates will have to be identified and then contacted
through either the existing employees, customers or the advertisement The reasons we use
advertisement is because it is
1) Cheap. It is not costly as compared to other methods
2) It is popular-the adverts are accessed by many people
3) It can take long before it gets invalid. Depending on the customer The candidates will then be
invited for selection where the testing method will be the means The management of the
enterprise will have to get employees from existing construction firms around and outside the
region that will have had the experience needed to work effectively .these will then be converted
to proper workers with the very great perquisites that can make them work the center

2.11 Training
Training is the process of teaching someone to do a particular job or activity
The enterprise will offer short courses for the employees and other stake holders who may be in
need of the information about the various features in our firm Specifically the employees will be
encouraged to undertake courses in construction machine maintenance and embracing of the new
technology in the construction sectors and workshop management practices
2.12 Promotion
Promotion is a process of attracting people’s attention to an event All the positions with the
exception of the general manager will be held on temporary basis. This therefore means that
promotion opportunities for all the employees In this regard the enterprise will strive to make the
employees conformed through the use of other means and instruments like providing
meaningful work, allowing the employees the freedom to undertake their own activities
without unnecessary hindrance2.13 Remuneration and incentives
2.13.1 Remuneration Is increasing the employee’s salary to improve their working
morale There will be straight salary of all in the position of the employees in the business; the
skills being possessed by the employee and the nature of duties undertaken by the employee at
any single time in the workplace For instance the chief engineer will earn more than all other
employees, by this position of being second in the business hierarchy, while the constructors will
earn less than any other employees in the center.

13.2 Incentives
In attempts to improve the performance of employees, the business will install a range
of strategies. There will be a piece work system of servicing whereby the employees
will be enumerated according to the piece of work they produced within a given rate of
payment The profits and other gains made by the center will also be shared between the manager
and the other employees The various welfare services and other benefits will equally be
provided by the business in pursuit of the comfort of its employees. The employees will
also be given the chances to participate in the decision making process within the
business. This will likely inspire the performance of the employees in terms of productivity
efficiency and effectiveness
Category of Basic salary Allowances Total remunerations
employees
General manager 100,000 20,000 120,000
Chief engineer 80,000 10,000 90,0000
Architectures 70,000 15,000 85,000
Marketing manager 80,000 10,000 90,000
Land surveyor 50,000 8,000 58,000
instructor 60,000 20,000 80,000
constructor 120,000 50,000 170,000

CHAPTER THREE

PRODUCTION AND OPERATION PLANNING

3.1 Production Objectives Multipurpose market center Building Construction Company has
some objectives related to producing products First the business has a plan to produce more
goods or products as compared to the customers demand. The business also has a plan to build
houses that can withstand any kind of catastrophe. This includes earthquakes and thunderstorms.
The main reason to build such strong houses is to ensure our customers are safe in all kinds of
weather an avoiding any fatal case of the above to occur
3.2 Production Facilities and Capacity Facilities will be provided in abundant to enable smooth
running of the business. The business is also planning to offer facilities for young children and
people with special needs and many more. By doing so multipurpose market center Building
Construction Company will be more famous and considered to be serving every member of the
community or people from different walks of life irrespective of their disabilities, status and
gender

3.3 Production strategy

The production strategy will be put in place to make sure the business does not run out of
products or stock. The strategy will be effective as soon as the business products are introduces
into the market To make sure the stock lasts ,multi-purpose market center Building Construction
Company will ensure construction of all sorts of houses will be taking place every day as long as
our products are having a good share in the market and attractive to the customers all over multi-
purpose market center Building Construction Company will also buy more land to make sure it
has enough sites of construction in future. This will prevent the business from reducing its pace
of construction of houses due to lack of enough land

3.4 Monthly Overhead Expense

item Monthly cost
Water 12,000
electricity 8,000
security 10,000
Garbage collectors 5,000
Internet 4,000
maintenance 150,000
Total 1890,000

3.5 Production process

The product production will be carried out only after the product has been well analyzed
by the business analyzing team and have met the required standard to be now introduced
to the market. The production process itself shows how our products are being processed
these are the houses that will be taking a period of 7 months to be built and 3 months to do
all the required finishing before they are ready to be used by the customer both for renting
and buying process .this includes safety measures.3.6 Regulations Affecting Operations The
servicing and operation function at the multi-purpose market center Building
Construction Company will be affected or constrained by a number of factors which will

comprise of a 3.7 Operation table/production schedule

activity When to Who is to What to be Duration of

be done do it done the action
Recruitment It will be manager Interview 2 week
of the staff done after short listing
six months
Training it will be Civil Learning weeks
taking place engineer the new
technology
after 2
every year

CHAPTER FOUR 4.

FINANCIAL 4.0
Multipurpose market center Building Construction Company will have to draw up
financial statements after every year end. The statistic from this financial document will be
of help especially when the business wants to determine the effectiveness of the business
operations. The profit obtained from the business operation will be invested in other more
important activities for the benefit of the owner and others in the business In addition the
most important areas will be much more looked into and these are significant documents to
be constructed after every trading period, they include balance sheets income statement
working capital and cash flows among other

4.0.1 Pre-operation cost

Items Cost
Business registration 55,000
License fee 10,0000
Electricity connectivity 100,000
Water installation 50,000
Machines and equipment’s 1,000,000
Feasibility analysis fee
70,000
Stationary 5000
Traveling and transport 12,000
Communication 15,000
Fixed assets and acquisition 1.5,000,000
Repairs and maintenance 150,000
Office computer 80,000
Office stamp 3,000
Reception seats 4,000
Tractors 1,000,000
Security 20,000
Insurance 25,000
Salary and wages 500,000
Padlocks 1500
Total 3.5,000,000

4.0.2 Working capital

items 2nd 3rd

st
1 year year (4%) year (6%)
Stock 1,5000,000 3,000,000 9,000,000
Debtors 1.0500,000 7,000,000 3,000,000
Cash at bank 4000,000 9,000,000 13,000,000
Cash in hand 4.5,000,000 8,000,000 12,000,000
Prepayment 4.5,000,000 - -
Total current 15,000,000 - -

Projected statement of financial position

Multi- purpose market center Building Construction Company projected statement of
financial position as at year1, year 2, and year 3.

1st year 2nd year 3rd year

Fixed assets 4.5,000,000 6,000,000 9,000,000
Premises 10000900 23635520 7691334
Vehicles and tractor 50000112 6977100 200100000
Machinery 73000000 100000000 110000
Current assets 4.5,000,000 6,000,000
-
Stock
Debtors
Cash at hand
- - -
Cash at bank
- - -
Total assets
- - -
current liabilities
- - -
Trade creditors
- - -
bank overdraft
- - -

CHAPTER FIVE
5.1 RISK MANAGEMENT
This is the identification assessment and prioritization of the risks. It aims to generate ideas
and promote good practice for the betterment of the business and managing risks through
the exchange of information

5.2 Definition of Risk

It is also known as hazard permit, jeopardy, danger, venture chances. Risk is a situation
involving exposure to danger. It can also be defined as a probability or threat of damage,
liability loss or other negative occurrence that is caused by external or internal
vulnerability

5.3 Risk Management Stages 5.3.1 Risk Identification

Here the business risks are identified. In Building Construction Company some of the most
feared risks are earthquake, building collapsing and many more
5.3.2 Risk evaluation
Risk evaluation is concerned with assessing probability and impact of individual risks
taking into account any factors outside the immediate scope under investigation In Multi
purpose Building Construction Company there is probability that some risks may arise.
probability is the evaluated likelihood of particular outcome actually happening including
a consideration of the frequency with which the outcome may arises for example major
damage to building is relatively unlikely to happen but would have enormous impact on
business continuity.

5.3.3 Choosing device of handling

Risks are many and occur differently however there are some devices that can be used to
handle the risks when they occur multipurpose market Building Construction Company
business will ensure the following things are put into consideration to avoid risks All
construction will be provided with helmet for protection in case of bricks failings Strong
functions will be put in place to withstand earthquake Fire extinguisher will be provided in
the buildings incase of inferno Emerging exit will be availing incase of any pending danger
5.4 Types of Risk

5.4.1 Financial risks

Financial support is very crucial to any business to function however lack of it can cause
the business to fail drastically and stop functioning. Debts can also cause the business fail
since the business needs many top function and when debts
are incurred it means there is no many and businesses don’t run in absence of money to
cater for its expenses
5.4.2 Economic Risk

Economy is crucial for a business to function regarded that in real estate materials price do
change with economy changes. The business will face risks in terms of economy when there
is inflation, this may affect the budget and plans of the business to carry out its activity.

5.5 How to Handle Risk

Multi purpose market center Building Construction Company will put in place mechanism
to overcome this risk. In terms of financial risks the business will put in place some
measures to make sure it gets financial plans in order through;
a) Borrowing loans from banks
b) Using the savings to boost the business
c) Contribution from friends To overcome economic risks the business ensure that
a)Its budget is not fixed
b) It will purchase many of its material to avoid later rush when there is inflation