Business Plan: Bookshop & Stationery

FABULOUS BOOKSHOP & STATIONERY
“Center of effectiveness, efficiency and satisfaction”
BUSINESS PLAN
FABULOUS BOOKSHOP
BOOKSHOP & STATIONERY
PREPARED BY:
©2020
Table of Contents
1
1.0 EXECUTIVE SUMMARY.....................................................................................................3
1.1 BUSINESS DESCRIPTION...................................................................................................3
1.2 PHILOSOPHY, MISSION, VISION AND OBJECTIVE OF THE BUSINESS...............4
2.0 THE BUSINESS TYPE OF OWNERSHIP.......................................................................4
2.1 DESCRIPTION OF PRODUCTS AND SERVICES OFFERED....................................4
3.0 PARTNERSHIP DEED...................................................................................................5
3.1 BUSINESS PARTNERS..................................................................................................7
4.0 LOCATION OF OUR BUSINESS..............................................................................8
4.1 The dimensions of our office cover the following units.................................................9
4.2 Material availability........................................................................................................9
4.3 Customer base.................................................................................................................9
4.3.1 Nature of demand........................................................................................................9
4.3.2 Price...........................................................................................................................10
4.3.3 Accessibility..............................................................................................................10
4.4 Feasible factors.............................................................................................................10
4.4.1 Demography..............................................................................................................10
4.4.2 Security and defense..................................................................................................10
4.4.3 Availability of health services...................................................................................11
4.4.4 Absence of blue laws.................................................................................................11
4.4.5 Availability of energy and electricity.....................................................................11
5.0 LEGAL REQUIREMENT.....................................................................................11
5.2 Registration of the Business:.....................................................................................12
5.3 Registration of Business License and Permit;...........................................................13
5.4 Registration of Taxpayer Identification Number (TIN);...........................................13
5.5 Registration of Added Value Taxes (VAT);.............................................................13
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5.6 Registration for the Employees Compensation:........................................................14
6.0 STRENGTHS AND WEAKNESS OF THE BUSINESS IN COMPARISON

TO EXISTING BUSINESS......................................................................................14
6.1 Strengths................................................................................................................14
6.2 Weakness...............................................................................................................17
7.0 The following are the opportunities that facing our business,.....................20
7.1 The following are the challenges that will face our business fabulous bookshop
and stationery...................................................................................................................21
8.0 FABULOUS BOOKSHOP & STATINERY MANAGEMENT STRUCTURE 22
9.0 THE ANALYSIS OF INITIAL FINANCIAL REQUIREMENTS FOR
FABULOUS BOOKSHOP& STATIONERY........................................................23
10.0 SOURCES OF CAPITAL................................................................................30
References.................................................................................................................32
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1.0 EXECUTIVE SUMMARY.

Our idea of business is to startup a “BOOKSHOP AND STATIONERY” business. This idea
has risen due to the scarcity of bookshops and stationery services which are highly demanded
due to the increase in various Institutions in Nairobi. There are a lot of organizations that need
services like graphic designs and printout materials, for example receipt books, text books,
payment vouchers and other stationeries
1.1 BUSINESS DESCRIPTION

The name proposed for this business is “FABULOUS BOOKSHOP AND STATIONERY”
which will be located at Ndumboini Street near Uthiru area in Nairobi town. Just as the word
fabulous means, that is, extra ordinary large, our business is expecting to expand year to year by
45% increasing its market through providing services of good quality, timely delivery of
products such as compendiums, being price conscious as well as making some advertisement
through posters, local radios like Impact FM, television and social networks like Facebook and
Twitter. The Press will have some staff members who will be performing various activities;
staffs will include Press Manager, Proof reader in charge, operators and Marketing Manager.it
will also be using advanced technology such as advanced printers, scanners and photocopy
machines in the course of providing its services and be flexible to changes.
The stationary industry consists of a number of firms taking advantage in Nairobi region which
is highly populated and surrounded by number of institutions. Having the few competitors as an
opportunity to our business, it ensures the available market for our efficient services. Thus the
availability of various sectors, such as health and education which include Universities that is to
say CBE, UDOM, ST. JOHN, HOMBOLO and offices which need stationary services ensures
the market for the products. It will also be using advanced technology such as advanced printers,
scanner sand photocopy machines in the course of producing its services and be flexible to
changes.
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1.2 PHILOSOPHY, MISSION, VISION AND OBJECTIVE OF THE

BUSINESS
1.2.1 Vision statement for the project: to be the best Bookshop and stationery in Nairobi in five
years to come with several branches near various institutions and with the ability to increase it’s
Capital and employ high skilled staff members.
1.2.2 Mission statement for the project: - Providing and promoting highly quality services and
ensure sustainable production system using the quality inputs available.
1.2.3 Values and objectives of the business: the objective of the project is to generate profit and
provide the best and high quality services and products that will satisfy Nairobi people.
1.2.4 Business Philosophy: Centre of effectiveness, efficiency and satisfaction.
2.0 THE BUSINESS TYPE OF OWNERSHIP

The type of business that we will be dealing with is a partnership. Partnership is the type of
business where members range from two to twenty people who have agreed to work together
with the aim of generating profit thus our partnership consists of twenty active partners. The
partnership business is suitable for us because it has less legal restrictions and it needs less
capital compared to the company business establishment, also we cannot do a sole proprietorship
since it needs just one owner.
Despite it being a partnership, we aim to grow to become a corporate company by generating

more income and building a lasting relationship with customers so as to make them feel like they
are part and parcel of the business and earn their trust thus ensures a steady supply of market
2.1 DESCRIPTION OF PRODUCTS AND SERVICES OFFERED.

The business will supply best print out stationeries these includes receipt books, exercise books,
brochures, payment vouchers, cards, photocopy, scanning, graphic designs, lamination etc. And
the bookshop will be available for various books like novels, academic books, inspiring books,
story books for all ages etc. It will also be expecting to receive orders from various organizations
and institutions.
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3.0 PARTNERSHIP DEED

THIS DEED OF Partnership made this 6th day of January 2021 between TWENTY
MEMBERS (listed below with their address numbers, Contact and the area of residence)
NOW THIS DEED WITNESSETH
1. That it is hereby mutually agreed that the said TWENTY MEMBERS (mentioned
below) shall become partners in the trade or business of BOOKSHOP &
STATIONERY upon the following terms and conditions:
2. The partnership shall commence on the 1st day of March. 2021 in the name of
FABULOUS BOOKSHOP & STATIONERY and shall continue for a period of 5
years, until determined in the manner and upon the conditions as hereinafter provided.
3. The partnership business shall be that of BOOKSHOP & STATIONERY SERVICE
and such other business or business as the partners may from time to time unanimously
agree upon.
4. The capital of the partnership shall be the sum of Ksh 32,635,000 and shall be
contributed by the partners in equal shares and shall belong to the partners in such equal
shares.
5. The profits and losses of the business (including loss of capital) shall be divided and
borne by the partners in equal shares.
6. That each partner shall not be allowed to engage to the business but they shall be
participating only on the executive meeting and annual meeting as the owner of the
business
7. The firm shall maintain all necessary and proper books of account at its office and entries
of all receipts, payments and other matters as are usually done and entered in account
books, shall be made in the books of account. The bankers of the partnership shall be
KCB Kencom branch and such other bank or banks as the partners may from time to
time unanimously agree upon.
8. Neither partner shall directly or indirectly engage in any similar business.
i. Neither partner shall without the consent of the other partner-
ii. Assign, mortgage or charge his share in the assets or profits of the firm.
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iii. Draw, accept or indorse any bill of exchange or promissory note on account
of the firm.
9. Enter into any bond or become surety for any person or persons or knowingly cause or
suffer to be done anything whereby the partnership property may be endangered.
10. If either partner commits any act of bankruptcy or any criminal offence or any breach of
any of the provisions of this deed any act which would be a ground for the dissolution of
the firm by the court or any partner becomes physically or mentally unfit to attend the
business, then in any such case, the other partner may within one month after becoming
aware thereof, determine the partnership by notice in writing and in such case he or any
other partner shall have the option of purchasing the share of the partner committing
breach or default, in the capital and assets of the business.
All disputes between the partners or the partners and the representatives of a deceased partner in
relation to any matter whatsoever touching the partnership affairs or the construction or
interpretation of this agreement, and whether before or after the determination of the partnership
shall be referred to a single arbitrator to be appointed by ALL PARTNER MEMBERS and the
decision of such arbitrator shall be final and binding.
The appointed arbitrator shall be High Court of Kenya
IN WITNESS WHEREOF the parties hereto have hereunto set their hands the day and year first
hereinabove written.
WITNESSES Execution
1. ………………………………..
2. ………………………………..
Signed and delivered by ……………………
Signed and delivered by …………………….
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3.1 BUSINESS PARTNERS

S/N PARTNER NAMES Address number PHONE NUMBER PARTNER’S SIGNATURE
01 VICTOR A BYEMELWA
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
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4.0 LOCATION OF OUR BUSINESS

Location of our business (FABULOUS BOOKSHOP & STATIONERY) will be at
MTENDEN STREET near AUDITY OFFICE AND JAMATINI IN NAIROBI TOWN
Block name. NATIONAL INSURANCE CO-OPERATION (NIC)
Office no. 13 GROUND FLOORS
The business premises are rented.
PICTURE: This area is located at MTENDEN STREET IN NAIROBI TOWN where our business will be conducted
and that building is where we rented our office. The block name NATIOAL INSURANCE CO-OPERATION (NIC)
Our office no. 13 GROUND FLOOR
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4.1 The dimensions of our office cover the following units.

Width of 30.3 foots, length of 36.5foots, and height of 15.2foots
The price of renting the office of our business is KSH. 400,000/= per month but our agreement
of payment is to pay annually which will be 4,800,000/= per year.
Our business location based on the following consideration
4.2 Material availability

According to the location of our business it is very easy to get materials from different areas
because of the availability of safety roads, railway, and airport. Here we can import materials
from either outside the country because of the availability of transportation ways like airport,
roads, and railway or we can import materials from another regions apart from Nairobi because
the transportation way linking with different regions. Due to availability of safety roads, railway,
and the transportation cost will be very low compared to those areas far from these services
where the transportation cost will be very high.
4.3 Customer base

Here we considered on following factors
4.3.1 Nature of demand

Our business will cover all sectors because all the organizations need different materials from
stationery. Most of sectors which will be covered by our business are;
Universities, colleges, and schools, here students, teachers and lectures they need papers,
different books, compendium, pens, therefore they can order this books, papers, compendium,
exercise books and also to renew their old books, scanning, photocopying, and laminating . This
has a result both students and teachers will reduce their cost because of introducing our firm in
this Nairobi region.
Public and private offices, most of their activities done through the use of papers, pens, files,
memos and other materials. Our firm will help this public and private offices to get their needs
easily instead for them to look for the materials from far areas
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Mosques and Churches, this is because religious maters need book shop in order to help them in
buying and renewing their bibles, ave maria, books of songs,(tenz za rohoni), katekisimu, and
also they need envelops for putting 10% of their salaries to their whole might God.
4.3.2 Price
A firm set a price by considering different cost of the operations for example transport cost,
wages and salaries of workers, electricity cost. Hence a firm decided the price which will favor
both side that is customer for getting their required services and also the firm can get the profit
from the price setting. Also the firm will regulate the price of their services in order to meet the
requirement and demand of customers, this is because customers prefers price which is not very
high, they prefer the price which is appropriate that will enable them to buy the services and
meet their demands. Also this price will help us to win the market, because the services sold are
based on emotions of the customers and also the fashion of the services is good
4.3.3 Accessibility
Our business will be located at the place where the transport and communication are available
and of high quality for example roads and railway which this will help the customers to get
services at reasonable time, and there will be no delaying of services when customers ordering
because of high quality of transport and communication.
4.4 Feasible factors

Here we considered the following factors.
4.4.1 Demography
Our firm will be located at the place where there is high population of people by which people
from different colleges for example from CBE, UDOM, MIPANGO and other colleges also
other population from area A, area B, area c also population from MAKULU and other places,
they are able to reach our firm, this will enable our firm to get more customers hence
development.
4.4.2 Security and defense

Our firm will be located at the place where the defense and security are available hence there
will be no thieves this also will encourage our employees to work freely without any afraid from
robbery
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4.4.3 Availability of health services

Our firm will be located near the health centers for examples AGAKHAN health center and
other health centers, so it will be easy for our employees and managers to reach the health center
easily when they get sick from either Malaria, typhoid, TB, or any other diseases during work
time, even if an accident will happen to our employees the health services will be very near so
this will be easy to serve lives of employees and employers
4.4.4 Absence of blue laws

The place where our business going to be conducted there is no any strictly laws that can hinder
our business, most of the streets or areas have strictly laws for example laws that prevent running
of business in some days of the week, mostly in Friday, or Saturday, or Sunday due to some
believes in religious or due to some cultural believes. MTENDENI STREET is the place
allowing the running of business at any day no any limitations.
4.4.5 Availability of energy and electricity

The running of our business will be easy due presence of energy and electricity which used in
operating of machines for typing, printing, laminating, and scanning of different materials which
are ordered or needed by our customers, electricity help to quick all the activities in the firm
hence will quick development
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5.0 LEGAL REQUIREMENT

Legal requirements: These are the rules and regulations set by the government and
must be followed when someone needs to establish a business. Even our business adheres to this
rules and regulation. In order to establish our business we must follow the following rules and
regulation:
Partnership Agreement; these are the rules and regulations that put by partners in order to
run the business and avoid inconveniences among the partners .The following are the agreement
of partnership in our business;
 Name and address of each Partners

 Nature of the business to carry on and the locally where business is set up
 Duration of partnership whether for a fixed period.
 Capital contribution of each partners
 Profit sharing ratio among the partners
 Interest on capital if any to be paid to partners
 Drawings and interest on drawings, whether permissible.
 Loan and advances by partner to the firm
 Method of keeping accounts who and how to audit accounts, maintaining a bank
account.
 The mode of admission and retirement of each partners
 How to value goodwill of admission retired and death of a partner
 Method of dissolution of partners of a firm.
This entire document may be needed during the registration of the business.
5.2 Registration of the Business:

All business operating in Kenya whatever their legal form must register with Business
Registration and Licensing Agency (BRELA) , which is under the Ministry of Industries and
Trade to obtain name of the business. Even our business we should register to Business
Registration and Licensing Agency (BRELA), Where by the following documents are needed:
 Document which contain name of the business.
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 Names of the partners

 Trademark( Name, symbols or words which used by the business to differentiate
with other business)
After submitting of the above documents we should fill the prescribed form to make the
declaration that a business as complied with the requirement of Kenya business law.
5.3 Registration of Business License and Permit;

The procedures of obtaining business license and Permit is done in TRA .Where by the
following document are required during the registration.
 Proof of Kenya citizenship example Passport of the Partner of the business, birth
certificate.
 Photocopy of the business name.
5.4 Registration of Taxpayer Identification Number (TIN);

Every business that income is chargeable to tax under the income Tax Act 2004 must
apply for registration and have Taxpayer Identification Number (TIN) allocated to him by
the commissioner for Domestic Revenue. Registration of TIN for Partnership is within 15
days to carry on the business, TIN is used for the purpose of all taxes with Kenya
Revenue Authority (TRA). In order to obtain this Taxpayer Identification Number (TIN)
we should submit the following documents to Kenya Revenue Authority.
 Copy of business license

 Documents from Business Registration and Licensing Agency (BRELA) Such as capital
contribution of partner s
 Names of the business and Trademark
 Name of the partners
 Passport of each partner
 Bank name and account number of the business
 Physical Address.
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5.5 Registration of Added Value Taxes (VAT);

Vat is an indirect tax which was introduced in Kenya since 1998 by VAT Act, 1997. It is
the levied upon the supply of any taxable goods and services by any business that is registered
for VAT purpose. According to rule and regulation of VAT Act 1997, the application for
registration must be made on form of VAT 101 this is according to laws and regulation of the act
1997. This application is obtain from TRA and Approved by the commissioner for domestic
Revenue and Issued the certificate of Registration for Value added tax.(VAT)
5.6 Registration for the Employees Compensation:

This is done at the National Insurance Corporation , the employers must complete the
employees compensation insurance Tariff proposal form, in case any employee in the business
get injured at working place must be compensated.
Copyright; A copyright can prevent illegal copying of written matter and computer
programs. In order to ensure copyright protection in our business the copyright owner should
always include notices on all copies of the work. According to our business this protection is
very important because it help us to protect our business materials.
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6.0 STRENGTHS AND WEAKNESS OF THE BUSINESS IN COMPARISON TO

EXISTING BUSINESS
6.1 Strengths
Every business has its strength those things that are consistently do well to get people
talking, attract new business and keep customers coming back. Unfortunately strength can
sometimes cover up flaws in the business so they do not get the attention they need.
Strength can be defined as quality or state of being strong. In other words strength is state
of being good. After conducting a feasibility study concerning with the strength and weakness of
stationery and book-shop business in Nairobi region then we came out with the following vivid
explanatory concerning with strength of stationery and book-shops in comparison to the existing
similar and related businesses.
Locality, In Nairobi region the strength of a business is highly associated with the location
of the business. For the case of stationery services the better and suitable area for the success of
this business Mtendeni Street. Mtendeni street is consisted with interaction of different people
especially university students from different universities and colleges example students from
Udom, St .John and CBE. In reality according to Nairobi business environment the strength of
the business is determined with where your business has been located. The area like Mtendeni
street where is consisted with large number of people the business is expected to receive large
number of customers compared to place like Gitaru where there is little number of people which
implies lower number of customers. Generally in any business in order to be strong and it is
largely affected with the number of customers, where locality is inevitable due to fact that people
prefer place with simple and accessible area for their purchasing
Picture:-The
picture above shows the Nairobi town area known as Uhuru park and Archives’ square..
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Quality services at affordable price, as in any business quality are among the determinants of
the strength of the business. The business which provides services of low quality services with
the price related to the people living standard guarantees the business to receive more customers
compared to the business which provide services of low quality. Comeback to our case stationery
and book shop business also the strength of it is much associated with the degree of quality
services provided. Here in Nairobi take an example HABIB STATIONERY
Located at Nkuhungu Street the services which they provide is quietly poor to the value of
money customers spend. This scenario leads HABIB STATIONERY to receive less number of
customers which make a business to have a weak performance, on the other side VICTORIOUS
STATIONERY located nearby CBE tends to receive large number of customers due to its quality
services it provides and tend to be strong as days go on. So for the establishment of stationery
and book shop services in Nairobi region it needs high commitment of quality services to win the
market. So the strength of the stationery and book shop business is viewed on the aspect of
quality at affordable price.
Customer care, to build a business and to make it strong is not an easy task. The strength
of stationery and book shop business is much associated with customer care. In the sense of
caring, listening and make the customers to feel they are part and parcel of the business. As it is
well known the strength of the business is determined by customers, so it is responsibility of the
business to ensure that it manage and retain the customers in order to increase the strength of the
business. When we go in the reality of Nairobi region VICTORIOUS STATIONERY become
among the best stationeries due to how it cares its customers and how it satisfy its customers. In
order for our business to win the market the issue of customer care should be taken into
consideration since it is the channel which will connect us with our customers.
Specialized personnel, Performance of any business depends on the high skilled and specialized
employees. Therefore specialized personnel are one of the factors to consider in operating a
business in a successive way. People with business skills and specialized are very important
because when the business has this type of employees will be able to provide services of high
quality. This is because every employee is specialized in her or his task hence can provide
services quickly at the right time.
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When you go through different stationeries and book-shops in Nairobi town you will come to
realize that people who are running the business of this kind they have no enough knowledge
concerning with stationeries and book-shops services.
Our business will employ people with high skilled and specialized employees in order to harvest
more customers hence our business can be expanded.
Financial health of the business, before establishment of any business, capital is very
important factor to take into consideration. Capital is money or assets which can be engaged in
the operating of the business. Capital which can be contributed from partnership business is
quietly different from capital contributed from sole proprietorship. There is high possibility of
raising fund in partnership compared to sole proprietorship kind of business.
Our business will be formed under partnership type of business. In Nairobi many types of
stationery are owned, managed and operated by sole proprietorship. Therefore it is very difficult
for them to accumulate huge capital compared to partnership business. Each partner will
contribute an amount of money as his or her capital and we will borrow some from bank where
we can finally have a huge capital and we will be able to reach our targeted goals.
6.2 Weakness
For clarification, weaknesses are areas where improvements need to be made because your
current situation leaves you vulnerable to economic pressures, market forces or aggressive
competitors. In short, these are the things that hurt long-term, sustainable profitability.
Here’s an interesting way to look at weaknesses. IF you were going to sell your business, what
things would make it less attractive to a potential buyer? Note, the things that would make it
attractive are typically strengths!
Here’s some common small business weak spots you should avoid:
No documented systems and procedures. As a result, critical activities including

marketing, sales, hiring, service delivery, billing and customer care are not easily repeatable by
others and are often inconsistent, inefficient and ineffective. Most of stationery business here in
Nairobi is managed without keeping the record of transaction and this became among the
weakness on running the business. Also makes difficult even to know whether the business is
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making profit or loss. So for the new stationery service to use the weakness as opportunity to
strength the business by taking the time to write down how you handle routine tasks saves you
time and money, makes training easier and ensures customers’ expectations are consistently met
so they keep coming back. For instance
Business is TOO dependent on owner or one key person. Some of this is due to a lack
of written procedures, but is also due to a lack of delegation. A lot of stationery business owners
are reluctant to delegate tasks to others because it requires time to train them or they simply
don’t believe others can do it just as well. With documented procedures, training and delegation
is a lot easier and you may just find that others do it just as well – if not better! The more you
delegate (or outsource) to others, the more time you free up to work on more important tasks like
growth and profit improvement. Stationery business around jamatini at Mtendeni Street most of
the owner are in family bases like Mwakanyuka stationery and Betty stationery service these
leads to low capital investment and shortage of fund to run the business.
Too many eggs in one basket, if your business is too dependent on one or two ‘big’
customers, your business is far more vulnerable. It is clear that the major customer for stationery
are the student (university students) and when they close for the holiday or end of the semester
also the business it’s like closed also for the holiday due to lack/ shortage of big customer and on
which in one way or Another is the weakness of the stationery business here in Nairobi. It’s easy
to become content or complacent when you land a big account. But mergers, acquisitions, new
competition or even one bad experience can cause the customer to leave and result in a major
revenue loss that you can’t quickly overcome. While you want to keep your big (and small)
customers happy, you need to make getting new customers a priority too! So the stationery
business in Nairobi should invest more time and resources to grow your customer base. You’ll
improve your revenue and profit while reducing your long-term risk.
No proven methods for revenue growth. Among the weakness of many stationery

business in Nairobi town is lack of methods for the revenue growth. If you needed customers
quickly, what would you do? Whether you need a lot or a few, every business should have 2-4
proven ways to get new business. Things that consistently work that you can depend on to
deliver results, Trying new strategies is necessary to take advantage of changes in the market and
new technology but don’t eliminate what works – simply add new stuff to your mix and be
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consistent! Only eliminate a strategy when it no longer produces the results you want or need to
make it payoff.
Wrong people supporting your business, Among the weakness of stationery business
in Nairobi town is lack of Business consultancy, most of business is run without the ideas of
business and this makes the business either to underutilize the resources available or makes
the business to earn little amount of revenue. This weakness makes the field of stationery
business to be weak and for the FABULOUS BOOK SHOP AND STATIONERY
SERVICE we use this weakness as our opportunity to win the market.
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For a business to be established it must consider the available opportunities and

challenges. However our business will have the following opportunities and challenges;
7.0 The following are the opportunities that facing our business,
Presence of educational institutions, Nairobi area especially the suburbs of Nairobi
town are surrounded by different educational institutions like primary schools, secondary
schools, colleges and universities which will become the potential customers to our business. For
example there are universities like UDOM, CBE, St. John and Mipango, colleges like Madini,
Mirembe and Hombolo, as well as secondary and primary schools.
Availability of government and private offices, and hospitals. Availability of such

kind of institutions will provide us with tenders to provide them with files and other stationery
materials like ledgers, pay slips, cashbooks and registration books.
Great demand of stationery materials by business firms like bus companies, hotels
and guests, whole sale and retail shops as well as network companies. Presence of such business
firms will constitutes a great part of the market size. Hence profit accumulation will be possible
because they possess inelastic demand of our goods.
Lack of other competitive stationery which produce quality books, stationery

materials and advanced internet services. Nairobi area lacks a highly qualified, strong and
competitive firms; this will become an opportunity to our business and provide chance to for us
to catch up the market by proving advanced internet services, quality books as well as effective
and efficient production of paper works.
Accessibility of Nairobi town, The area is located at the center of the country which is
crossed by different transport routes like railways and roads running both internal and external of
the area, this become an imperative to the growth of our business. These make our business more
accessible to our customers both from internal and external of Nairobi area. Also transportation
of materials will be easy.
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7.1 The following are the challenges that will face our business fabulous bookshop and
stationery
Presence of street venders in Nairobi town engaging selling stationery material, the
business will face a competition from street venders who can easily reach even customers of
remote areas; therefore, it will be difficult to some customers to reach the area where our
business is located. However most of the people prefer accessible services to inaccessible one.
Solution to problem, there we should establish mobile stationery that will catch up the small
scale trade venders.
Revenue fluctuation, the greater portion our market size will comprise of mainly
students, parliament and operation of universities which always operate for a time and get into
holiday; this will cause decrease in revenue during the holiday periods.
Solution to the problem is to extend our investment to the point of having public tenders to
produce and supplying goods like ledgers to the banks, bus tickets, costa’s tickets, coupons as
well as cards like wedding cards.
Electricity problems, this is among the problems that face our business .when hydro-
electric power supply break, we lose power to run our activities like photocopy, operation of
computers, scanner, printer and laminators.
Solution to the problem is to prepare a budget for unexpected event like emergency
breakdown in electric supply by buy generators and petrol.
Time and personal commitment problem, Partnership form of business is run by two
or more people who join together and have different behaviors and possess different responsibly
that bound to their families or personal matters. So when we divide task and responsibilities
relating to our business which need time and commitment, these individual behaviors and
commitment problems may affect our business hence poor operation and low profit.
To resolve this problem we suppose to generate or to arrange certain by law or partnership deed
that states the duties and responsibilities and disciplinary measure.
Business stress, the market of stationaries at Nairobi town has a lot of firms that run the
same business (competitor’s) customers complaint’s so we suppose prepare our self to handle
22
these challenges by solving customer’s problems immediately and advertise our services,
promoting and trade discounts.
Lack of quality assets to secure loans, Partnership business will face the problem of lack
of qualified and authorized assets or property to secure loans; hence this could affect the initial
capital availability to run our business.
The problem will be solved by relying on member’s contribution to attain initial capital to
start the business
Working capital requirements is a minimum amount of resources a business needs to cover.
Initial capital refers to the financial resources that are required to start up a business. If initial
capital outlay required depending on the kind of business to be established leading us to
conclude that a business requires a small/large amount of money to start a business.as we know
any business must analyze the capital which is going to be used in operating such business.
8.0 FABULOUS BOOKSHOP & STATINERY MANAGEMENT STRUCTURE
TOP MANAGER
FINANCIAL MANAGER OTHER EMPLOYEES
FUNCTION OF TOP MANAGER
 Organizing
 Controlling
 Directing
 Planning
The functions of a financial manager are to calculate and keep the financial records of the
business. Also other services will be provided by employees.
23
9.0 THE ANALYSIS OF INITIAL FINANCIAL REQUIREMENTS FOR FABULOUS

BOOKSHOP& STATIONERY.
S/NO PARTICULARS AMOUNT AMOUNT

1 Rent 12@400000 04,800,000
2 Electricity bills 12@100,000 1,200,000
3 Printers HP Lsejelt P2055 4@550,000 2,200,000
4 Photocopy machine canon new IR 2420 4@ 2,850,000 11,400,000
5 Transport cost distributions cost 600,000
6 Binding machine A3 4@115,000 460,000
7 Laminating machine 3@145,000 435,000
8 Office furniture 1,000,000
9 Computers 25@500,000 12,500,000
10 Employees’ salaries 6 1,800,000
11 Paper cutter 4@45,000 180,000
12 Business card cutter angle 3@35,000 105,000
13 Business card cutter 4@95,000 380,000
14 Electric business card cutter 2@250,000 500000
15 Company stamp 4@120,000 480,000
16 Bank account expenses 30,000
17 Books (exercise books, note books, ream paper etc.) 6,000,000
18 Stationery equipment’s (pens, pencils, rubber etc.) 3,000,000
19 Financial manager/operating manager salary 800,000
20 Marketing manager salary 750,000
21 Advertisement expenses and emergency expenses 2,200,000
22 Scanner 3@150000 450,000
23 Photocopy machine Ricoh Aticio 14,000,000
TOTAL AMOUNT 0 0
Contributed by partners; Kshs 32,635,000
Each partner contributes: Kshs 1,631,750
The remaining amount will be borrowed from the financial institutions (KCB Bank).
32, 635,000 Kshs Therefore the estimated budget is 65.2million Kshs.
24

Financial analysis
Contribution from parterner

Loan from financial institution
(CRDB)
50% 50%
25
RONEL COMPUTERS
EMURUA DIKIRR 0711659374
STATIONERY DEVICE DETAILS & AMOUNT
photocopy machine
Price 2,850,000 Kshs
CANON NEW IR 2520
Desktop computer
Price 500000 Kshs
Hpinternal memory2gb, 2.4ghz,540hard disc
26
PRINTER.
Price; 550,000Kshs
Hp LaserJet P2055
BOOKS:
Exercise books.
Note books.
Quran etc.
SCANNER:
Price 150000 Kshs
Hp 1230
School Equipment’s:
27
Paper cutter machine:
Price; 45,000/120,000Kshs
28
Stationery items:
Laminating machine:
Price 145,000Kshs
29
Business card cutter machine:
Price 250,000Kshs
30
10.0 SOURCES OF CAPITAL

According to the initial financial requirements envisaged to start up the business
which have been described, the source of capital shall be taken from our pocket and later
we decided to borrow money from financial institution that will make us to accomplish our
business
Firstly our Partnership needed Ksh 32,635,000 amount of money in order to start up the
business. The Fabulous Bookshop stationery decided that each partner should contribute Kshs
1,631,750 so as to support the starting of the business by purchasing the various equipment.
After six months our business which is Fabulous Bookshop and Stationery needed Ksh
32635000 in order our business to be more improved.
By regarding the financial institution which operate in Nairobi first we made

contact with KCB Bank at Kencom branch so as to ask for a loan of 32635000Ksh, then the
Branch Manager/Director at KCB Bank provided for us overdraft loan application requirement
as follows;
*Current Account with KCB (Six month old)
*Valid Business License
*Income Tax Return and Tax Clearance and [TIN]
*Certificate of Registration
*Business Plan, Budget and Cash flow projections
*Extract from Registrar
*Original Title Deed and Valuation Report.
The KCB Bank Interest Rates is 20 % which depend on interest rates of Central
Bank which range from 17% to 24%. As we have analyzed the above information. Fabulous
Bookshop and Stationery will be able to get the loan from KCB Bank.
After agreement with KCB Bank our partnership will repay the loan after each 3 months
Kshs 108783333 according to the performance of the business.
31
Apart from that the following are the reason which has made us to borrow or to choose
the KCB Bank for applying loan, and these are as follows
1. The Bank allows flexible payment period ranging from 3 to 12 months
2. Customer can borrow between Kshs. 1 million and Kshs 300 million so they are sure to
get an amount that is sufficient to meet the financial obligation.
3. Interest rates are competitive and affordable.
4. Customer has free access to relationship manager to assist with banking needs.
5. Customer will also get free business advisory services and references, books which
will enable the customer to learn more about loans application and repay back.
References
32
1. Bailey, A. (2009). Introduction to Business (2 ed.). United states of America: Kendall

Hunt Publishing Company.
2. Boone, L. E., & Kurtz, D. L. (2006). Contemporary Business (3 ed.). south- western
USA: Thomason.
3. Cobb, B. F. (2007). Business Philosophy . USA : Thomas Y crowell/ The universith of

michigan.
4. Dave Duesseam, D. L. (2008). An Introduction to Business. USA: the university of

Readers press.
5. Hasting, P. G. (2010). Introduction to business (4 ed.). USA: Mc Graw- Hill/

pennsylvavian state university.
6. shaw, A. w. (2006). An Approch to Business Problem (2 ed.). USA: Harvard university

press.
33

Business Plan: Bookshop & Stationery

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FABULOUS BOOKSHOP & STATIONERY

“Center of effectiveness, efficiency and satisfaction”

1.0 EXECUTIVE SUMMARY.....................................................................................................3

1.1 BUSINESS DESCRIPTION...................................................................................................3

1.2 PHILOSOPHY, MISSION, VISION AND OBJECTIVE OF THE BUSINESS...............4

2.0 THE BUSINESS TYPE OF OWNERSHIP.......................................................................4

2.1 DESCRIPTION OF PRODUCTS AND SERVICES OFFERED....................................4

3.0 PARTNERSHIP DEED...................................................................................................5

3.1 BUSINESS PARTNERS..................................................................................................7

4.0 LOCATION OF OUR BUSINESS..............................................................................8

4.1 The dimensions of our office cover the following units.................................................9

4.2 Material availability........................................................................................................9

4.3 Customer base.................................................................................................................9

4.3.1 Nature of demand........................................................................................................9

4.4 Feasible factors.............................................................................................................10

4.4.2 Security and defense..................................................................................................10

4.4.3 Availability of health services...................................................................................11

4.4.4 Absence of blue laws.................................................................................................11

4.4.5 Availability of energy and electricity.....................................................................11

5.0 LEGAL REQUIREMENT.....................................................................................11

5.2 Registration of the Business:.....................................................................................12

5.3 Registration of Business License and Permit;...........................................................13

5.4 Registration of Taxpayer Identification Number (TIN);...........................................13

5.5 Registration of Added Value Taxes (VAT);.............................................................13

5.6 Registration for the Employees Compensation:........................................................14

6.0 STRENGTHS AND WEAKNESS OF THE BUSINESS IN COMPARISON

1.0 EXECUTIVE SUMMARY.

1.1 BUSINESS DESCRIPTION

1.2 PHILOSOPHY, MISSION, VISION AND OBJECTIVE OF THE

1.2.4 Business Philosophy: Centre of effectiveness, efficiency and satisfaction.

2.0 THE BUSINESS TYPE OF OWNERSHIP

Despite it being a partnership, we aim to grow to become a corporate company by generating

2.1 DESCRIPTION OF PRODUCTS AND SERVICES OFFERED.

3.0 PARTNERSHIP DEED

NOW THIS DEED WITNESSETH

The appointed arbitrator shall be High Court of Kenya

Signed and delivered by ……………………

Signed and delivered by …………………….

3.1 BUSINESS PARTNERS

4.0 LOCATION OF OUR BUSINESS

Block name. NATIONAL INSURANCE CO-OPERATION (NIC)

Office no. 13 GROUND FLOORS

The business premises are rented.

4.1 The dimensions of our office cover the following units.

Our business location based on the following consideration

4.2 Material availability

4.3 Customer base

4.3.1 Nature of demand

4.4 Feasible factors

4.4.2 Security and defense

4.4.3 Availability of health services

4.4.4 Absence of blue laws

4.4.5 Availability of energy and electricity

5.0 LEGAL REQUIREMENT

 Name and address of each Partners

5.2 Registration of the Business:

 Document which contain name of the business.

 Names of the partners

5.3 Registration of Business License and Permit;