WENSAM ELECTRONIC AND ELECTONICS ENTERPRISE

PRESENTER : WENCES KIPRONO SAMOE

ADM NO : 28846

CENTRE NAME :THIKA TECHNICAL TRAINING INSTITUTE

LOGO :

COURSE CODE :2601

INDEX NUMBER: 2071012566
COURSE TITLE : DIPLOMA IN ELECTRICAL & ELECTRONICS
(POWER OPTION)

SUPERVISOR : MR. ANTONY WANYORO

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL
AS PARTIAL FULFILLMENT FOR THE AWARD IN
DIPLOMA IN ELECTRICAL & ELECTRONICS (POWER
OPTION)
ENGINEERING.

EXAM SERIES : NOVEMBER 2021

i
 DECLARATION
I declare that this piece of work is my own original and has never been to any exam body for the

award of DIPLOMA IN ELECTRICAL & ELECTRONICS (POWER OPTION)

This business plan has been submitted to the Kenya National Examination Council with approval

from the business plan supervisor.

Any duplication and representation of the work is prohibited, all rights reserved.

NAME: WENCES KIPRONO SAMOE

DATE: ………………

SIGNATURE:……………

SUPERVISOR: MR. ANTONY WANYORO

DATE:………….

SIGNAGTURE:……………

ii
 DEDICATION

I humbly dedicate this business plan to my loving family members and all my friends for both their

moral and financial support during the publication process.

iii
 ACKNOWLEDGEMENT

I humbly express my sincere thanks to MR. ANTONY WANYORO and entire electrical

department team for their maximum support to ensure that this publication was successful.

In addition I do thank all lecturers who contributed their relevant information necessary for my

work to be complete. Special thanks to my parents who provided their financial support.

iv
 TABLE OF CONTENTS
DECLARATION........................................................................................................................... ii
DEDICATIONS. .......................................................................................................................... iii
ACKNOWLEDGEMENT. .......................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................. v
EXECUTIVE SUMMARY. ....................................................................................................... vii
Marketing Plan........................................................................................................................... viii
CHAPTER ONE ........................................................................................................................... 1
BUSINESS DESCRIPTION. ....................................................................................................... 1
1.0INTRODUCTION.................................................................................................................... 1
BUSINESS LOCATION AND ADDRESS ................................................................................. 1
1.1.1BUSINESS LOCATION MAP. ........................................................................................... 2
1.2THE FORM OF BUSINESS OWNERSHIP. ........................................................................ 2
1.2.1DATE OF BUSINESS COMMENCEMENT. .................................................................... 3
1.2.2BUSINESS LAYOUT. .......................................................................................................... 3
1.3PRODUCTS AND SERVICES OFFERED. .......................................................................... 4
1.4IDUSTRY WHICH THE BUSINESS WILL OPPERATE UNDER. ................................. 4
1.5JUSTIFICATION OF THE BUSINESS. ............................................................................... 5
1.6THE BUSINESS OBJECTIVES/ GOALS. ........................................................................... 5
1.6.1SHORT TERM GOALS....................................................................................................... 5
1.6.2LONG TERM GOALS. ........................................................................................................ 6
1.7ENTRY AND GROWTH STRATEGY. ................................................................................ 6
1.7.1GROWTH STRATEGY. ...................................................................................................... 6
CHAPTER TWO. ......................................................................................................................... 8
MARKETING PLAN. .................................................................................................................. 8
2.0INTRODUCTION.................................................................................................................... 8
2.1POTENTIAL CUSTOMERS.................................................................................................. 8
2.1.1INSTITUTIONAL OR GOVERNMENTAL CUSTOMERS. .......................................... 8
2.1.2INDIVIDUAL CUSTOMERS.............................................................................................. 8
2.1.3CHARACTERISTICS OF POTENTIAL CUSTOMERS. ............................................... 9
2.3MARKET SHARE. .................................................................................................................. 9
2.3.1PIE CHART REPRESENTATION. ................................................................................. 10

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2.3.2COMPETITION ................................................................................................................. 10
2.4PRICING STRATEGY. ........................................................................................................ 13
2.5ADVERTISNG AND PROMOTION STRATEGY. ........................................................... 13
2.5.2PROMOTION STRATEGY. ............................................................................................. 14
2.5.3DISTRIBUTION STRATEGY. ......................................................................................... 14
2.6SALES TACTICS .................................................................................................................. 15
CHAPTER THREE. ................................................................................................................... 16
ORGANISATION AND MANAGEMENT PLAN. ................................................................. 16
3.0INTRODUCTION.................................................................................................................. 16
3.1.1ORGANISATION CHART. .............................................................................................. 16
3.2MANAGEMENT TEAM. ..................................................................................................... 17
3.2.1BUSINESS MANAGER. .................................................................................................... 17
3.3OTHER PERSONNEL.......................................................................................................... 18
3.4RECRUITMENT, TRAINING AND PROMOTION ........................................................ 21
3.5REMONITION OF STAFF. ................................................................................................. 22
3.5.1REMONILATION OF MANAGEMENT TEAM. .......................................................... 22
3.6RENUMERATION AND INCENTIVES. ........................................................................... 23
3.7SUPPORT SERVICES. ......................................................................................................... 26
3.8LICENCE, PERMITS AND BY LAWS. ............................................................................. 26
CHAPTER FOUR: ..................................................................................................................... 28
OPERATION/ PRODUCTION PLAN. .................................................................................... 28
4.0INTRODUCTION.................................................................................................................. 28
4.1PRODUCTION FACILITIES AND CAPACITY UTILISATION................................... 28
4.1.1LIST OF MACHINE EQUIPMENT AND TOOLS REQUIRED. .................................... 29
4.1.1PRODUCTION PROCESS. ............................................................................................... 29
4.2PRODUCTION STRATEGY. .............................................................................................. 30
4.2.1OPERATION PLANS. ....................................................................................................... 30
4.2.2WORK SCHEDULE. ......................................................................................................... 30
4.2.3PRODUCTION PLAN. ...................................................................................................... 31
4.3PRODUCTION DESIGN AND DEVELOPMENT. ........................................................... 32
4.4RELEVANT REGULATION. .............................................................................................. 32
CHAPTER FIVE: ....................................................................................................................... 33

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FINANCIAL PLAN. ................................................................................................................... 33
5.0INTRODUCTION.................................................................................................................. 33
5.1PRE-OPERATION COST .................................................................................................... 33
5.1.2PROPOSED CAPITALISATION. .................................................................................... 34
5.2WORKING CAPITAL REQUIREMENTS. ....................................................................... 34
5.2.1 CASHFLOW BUSINESS PLANION. ............................................................................. 35
5.2.3 BUSINESS PLANED INCOME STATEMENT ............................................................. 38
5.2.4 BALANCE SHEET............................................................................................................ 39
5.6 BALANCE SHEET AS AT 31st DECEMBER 2023 .......................................................... 40
BALANCE SHEET AS AT 31st DECEMBER 2022 ................................................................ 41
5.7 CALCULATION OF BREAK EVEN POINT ................................................................... 43
5.8 DESIRED FINANCES FOR YEAY ONE…………………………………………………37

5.9 PROPOSED CAPITALIZATION........................................................................................38

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 EXECUTIVE SUMMARY

Executive summary is the overview of the proposed business from business description, Marketing

plan, managerial plan, production/operational plan and financial plan.

Business Description

The business shall be called WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE. It

shall be owned by WENCES KIPRONO SAMOE Makau-. P.O. Box 126 Kerugoya .

The owner shall be sole proprietor. The business shall be stated with the mission “quality and

accessible service at affordable prices,” the services shall be repairing electrical appliances. The

proposed business is situated in Kakamega town along the main road leading to Butere-Mumias,

100m from main bus stage opposite co-operative bank, Ambwere plaza. The business will operate

under the hospitality industry.

Marketing Plan

After a research carried out, it was found out that the business will have workers, students from

medical schools and the Masinde Muliro University, individuals and businessmen as potential

customers. The business identifies electrical dealers as the main competitors offering the same

services. The business shall therefore promote its service by offering attractive packaging,

signboards, posters, placed on strategic position and locations for advertisement and also giving

viii
discounts and applying price control mechanism. The enterprise targets several types of customers

as stated above and hopes to attract more customers. It will also utilize the distribution channels.

Management Plan.

The enterprise shall employ four key personnel who include the owner manager, assistant manager.

Also the business will employ supportive staff (subordinate) to assist in the naming of the business.

This section will also include salary scale for the month of up to Kshs 32,000 the Licenses, permits,

bylaws and supportive professional services e.g. lawyer, bankers, Insurance services will be

needed for effective and efficient operation.

Operation/ production plan.

WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE will involve the operational

features of offering the services hence equipment, machines and tools shall be put in place with

the necessary space parts, Production strategies, expenses and government regulation i.e. health

regulation and employment contract act shall be regulated and employment contract act shall be

regulated in operational plan

ix
 CHAPTER ONE

BUSINESS DESCRIPTION.

1.0INTRODUCTION.
The business name will be WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE
located in a place called Nasewa in Busia County just opposite the Busia sugar company Nuclear
next to Nasewa Health Centre 10km from the main Kisumu Busia highway.

The business is a sole proprietorship form and will majorly deal with manufacturing, assembling

and trading of electrical appliances.

The location site is favorable due to the efficient customer and presence of adequate transportation

means.

1.1 BUSINESS LOCATION AND ADDRESS

The business owner would wish to locate the intended business in Busia county, Nasewa estate

along the Matayos - Nambale road on the right hand side of the large Kisumu-Busia highway.

The location was identified after a fine research by the manager who realized that there will be
abundant security due to the existence of the Busia Sugar Company and the Chiefs office with a
police camp. Besides that the owner discovered good infrastructure and ready market for the
business products and services which might make the enterprise successful. For identification and
communication purposes of the business enterprise, the owner managed to poses an address of the
business.

1
1.1.1BUSINESS LOCATION MAP.

TO BUDALANGI

KISUMU-BUSIA HIGHWAY

MATOYOS KORINDA

MURUMBA ROAD BUSIA SUGAR COMPANY

CHIEFS CAMP

TO BUTALA

WENSAM ELECTRONIC AND ELECTRONICS ENTERPRISE

1.2THE FORM OF BUSINESS OWNERSHIP.

The legal form of ownership is sole proprietorship. The owner will be the manager who will have

power and control over all the business activities. The owner who will be a sole proprietor will

find this kind of business advantageous as there will be easy decision making, few legal procedures

will be required to start and maintain the business, enjoy all the profit and also will be independent.

Besides this the owner may also find it complicated due to facts that in case of loses he will be the

only one responsible, tiresome since he is alone and eventually collapse of the business in case of

passing away.

2
1.2.1DATE OF BUSINESS COMMENCEMENT.

The business workers are expected to take off on the tenth of January 2022 after the manager will

have satisfactorily completed a DIPLOMA course in Electrical and Electronics Engineering and

acquired entrepreneurial skills and knowledge to facilitate profitable works

1.2.2BUSINESS LAYOUT.

LAVATORIES
STORE
MEN WOMEN

HRM MGR FINANCE MGR MRKTNG MGR

OFFICE OFFICE OFFICE

OFFICES

ACCOUTANTS
IT MGR OFFICE
OFFICE DIRECTOR’S RECEPTION
OFFICE
SECRETARY’S
OFFICE

PARKING BAY FOR

DIRECTOR

PARKING BAY FOR STUFF

3
1.3PRODUCTS AND SERVICES OFFERED.

Following various changes in technology, the owner of the business expects to offer goods and

services which are of high quality, affordable, durable and accessible of latest in term of

technology to enhance a suitable attitude to the business by customers. Such goods and services

may be for example energy saving jikos, solar controlled motors and standby generators. The

services are expected to be of large value and very helpful to the entire community surrounding

the business environment. This will include motor driving, adjusting the generator output to their

low or high value, electricity maintenance and repair to ensure continuous consumption and

production activity improves living standards, motivate seriousness in work, provision of

employment and also help stipulate peoples work towards achieving their set goals.

(i) CHARACTERICS OF GOODS AND SERVICES

An intention has been dealt with by the business manager that the products or goods and services

which will be offered onto the market should poses features that will motivate and attract

customers into the business enterprise and make their choices the appropriate characteristics that

the owner deserves to provide will be of high quality, durable, less expensive, robust, very reliable,

available and of latest technology considering the current market strategy.

1.4 INDUSTRY WHICH THE BUSINESS WILL OPPERATE UNDER.

The owner will classify the business as manufacturing, assembling and trading. Manufacturing

will be in the line with reproduction of motor rewinding wires from old SWG obtained after

dismantling blown out vehicles for the rewinding business purpose. Assembling will come into

practice as the owner will be purchasing options then putting them together to come up with

4
complete sets of electric machines and equipment like motors and generators. Trading sections of

the business will involve offering the available goods to the willing customers on profitable terms.

1.5 JUSTIFICATION OF THE BUSINESS.

Most of the people are venturing into the Electrical field. The business manager thus expect to earn

a living with a lot of ease there is no much competition and consumers are many. There will be

possible because the manager have attained technical experience personal knowledge to run the

business.

The manager will order for his customers to be offered goods and services without fare charge of

the product, regular operation, attractive display and good communication with persuasive

language. Mainly to give his business enterprise an opportunity to change marketing strategy to

achieve the profit.

The owner having successfully gone through proper academic requirements and qualifying for the

award of a DIPLOMA Electrical and Electronics Engineering from Success Professionals Institute,

will be in a better chances of possessing the suitable market strategies in good time.

1.6 THE BUSINESS OBJECTIVES/ GOALS.

The manager intends to operate the business profitably to be able to acquire both short and long

term goals. These goals will be achieved through commitment in hard work for the benefits of the

business enterprise.

1.6.1 SHORT TERM GOALS.

The business manager will aim at obtaining at least 43% profit within the first five months thereby

creating job opportunities in the surrounding, contributing a market share of about 60% of the

population, attracting more customers into the business and maximize business profit. The

5
manager will come up with possible means of ensuring that the business goods and services are

available at all times before advertising the product in the market.

1.6.2 LONG TERM GOALS.

The manager will introduce modern technology and uplift his skills to provide quality and better

working condition of the business within a period of 1 and 1/2 years of operation. To make business

work easier in term of transportation the business manager will keep aside at least 5% of the profit

every month to enable purchase of at least 2 Lorries by the end of the second year. In addition to

that, the owner is ambitious of expanding his business enterprise by extending its branches too fast

developing towns like THIKA, Kakamega and Eldoret among others.

1.7 ENTRY AND GROWTH STRATEGY.

As per the management, the business is hoping to commence its normal operation as from 10th

April 2021 as stated in the agreement with the council.

The business will penetrate into the market where there are few competitors as the manager

organizes for the suitable ways of capturing half the market share percentage.

These will be archived through conducting personal selling, advertising using posters, magazines,

newspapers and signboards

1.7.1 GROWTH STRATEGY.

The business owner have an admiration that the business activities become profitable and of

growth to the economy. His enterprise is to maximize his capability and prove that skills and

knowledge gained in the entrepreneurship education and any other management services are of

great value and very successful to this business enterprise.

6
Among the growth strategies the manager have come up with is employing and training

complementing staff that will ensure that there is increased products and services loyalty through

advertisement, monitoring sales and profit volume improving level of technology wishing turn will

enhance business expansion.

The small amount of capital available makes the business to start off ass a small business

enterprise. All profit realized will be ploughed back to the business to help in expansion.

The business owner will continue carrying out assuring on the potential clients and intends to open

up new branches in other parts of the country like, Kisumu, Eldoret, Kakamega, Nakuru and

THIKA.

7
 CHAPTER TWO.

MARKETING PLAN.

2.0 INTRODUCTION.

WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE targets both domestic and

industrial customers in its provision. The business environment will be much conducive for its

customer and thereafter facilitate faster expansion due to the presence of the potential customers

responsible for the growth and expansion of this business firm.

2.1 POTENTIAL CUSTOMERS.

The business customers will be categorized into two main categories.

2.1.1 INSTITUTIONAL OR GOVERNMENTAL CUSTOMERS.

These category constitutes the public institutions who are business clients. Within this graphical

location such customers include a nearby police camp division, Kenya wildlife service, Nasewa

health Centre, Busia sugar company, St. Austin Nasewa primary school and St. James Nasewa

primary school among others. These customers will generate large income to the business thereby

enabling a faster growth and expansion of the firm in the area.

2.1.2 INDIVIDUAL CUSTOMERS.

These kind of customers have organizations and are owned by individuals who manage and control

their operation without much interference from external factors. In this business environment such

customers are the bundala youth fish farmers, Tuungane Help group for both domestic and

industrial to help boost life standards for the entire society.

8
2.1.3 CHARACTERISTICS OF POTENTIAL CUSTOMERS.

The business customers will majorly constitute of genders, working and unemployed whose

lifestyle will be ranging from low class to high class. The business will consider its all customers

by ensuring strict cash payment for any type of service and goods being offered majorly to do

away with credit payment in addition to money transfer and personal cheques. The business also

intends to all of its potential customers and instead attract more by providing goods and services

that are durable, accessible, affordable, serviceable and at least familiar for easy control and

operational services.

2.3 MARKET SHARE.

The targeted Naaimprove Electric Centre will try by all means to familiarize with customers within

and outside its location in order to acquire an opportunity in the ready market by providing the

potential customers with quality electrical goods and services. The business will begin with a 37%

market share and aim at raising the share after 2-3 years to at least 85% share in the market by

then. This will be as a result of high demand and acquisition of the business goods and services

within the business environment. The high quality of goods and services provided by the

WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE will thus play a major role in

contributing to a large market share thereby making the business center popular therefore attracting

more customers. At the start this center will capture at least 40% of the market share through

enhancing the provision of high quality products to its customers. The market share of the business

will be calculated by the expression:

Percentage market share= market share/ market size x100%

9
After 2-5 years of operation the business will have exhibited a moderate share as illustrated in the

chart below.

2.3.1PIE CHART REPRESENTATION.

Sales

32%
37% assembling work
manufacturing work
tading work

31%

2.3.2 COMPETITION

In consideration to a field research that has been carried out to access the number, weakness and

strength of the competitors who the business intends to compete with as it will be commuting its

profitable duties, the few competitors realized in the same environments have their business names

known to their customers as.

Aweso General Engineering Works.

Manyiga Mbulu Electrical and Electronic Workshop.

Mazuri Electrical Shop.

Fablogos Electrical and Electronic Workshop.

10
In determination of their strengths and weakness in comparison to the WENSAM ELECTRONIC

AND ELECTRONIC ENTERPRISE a variety of conclusions are discussed to facilitate stiff

competition strategies. The various weakness and strength are analyzed in the table shown next

page.

11
BUSINESS NAME LOCATION STRENGTH WEAKNESSES
Aweso General Engineering 150m from Modern technology used Low quality of goods
Works WENSAM Long hours of service Low skilled personnel
ELECTRONIC More customers Operate in small scale
AND Experience in market Low pay for employees
ELECTRONICS Long working hours
ENTERPRISE
Manyiga Mbulu Electrical 200m from Huge source of raw Poor customers
and Electronic Works WENSAM materials relationship
ELECTRONIC Located at strategic point Unskilled employees
AND where customer pass by Low quality of products
ELECTRONICS Short service hours
ENTERPRISE No testing of products

Mazrui Electrical Shop 500m from Large market Low pay to employees
WENSAM Good record keeping Long working hours
ELECTRONIC Operates under large scale No exact working hours.
AND Ready source of funds
ELECTRONICS
ENTERPRISE
Fablogos Electrical and 1km from Modern machines and Short hours of service
Electronics Workshop. WENSAM equipment. Low skilled personnel
ELECTRONIC Acquired customers No testing of products
AND Good pay to employees Poor record keeping
ELECTRONICS
ENTERPRISE

12
2.4 PRICING STRATEGY.

The prevailing market prices will help determine the prices at which the business will offer its

services and products. The pricing strategy will base on: the cost of the materials, trend of the

market supply and demand cost of labor and overheads, the variation in market and prices among

others. The business will use a cost plus pricing method. Hence the total cost of production will be

added to a desired profit to make up the total cost of production in the current market. By so doing

the WENSAM ELECTRONIC AND ELECTRONICS ENTERPRISE Electric Centre will be

trying its best to acquire a unique way doing away with its competitors on the market.

2.5 ADVERTISNG AND PROMOTION STRATEGY.

2.5.1 ADVERTISING.

The business aims at putting up the most effective means of reaching potential customers on it’s

under market to perfect its provision of business goods and services. The manager will consider

the cost and time of advertising the business goods. The possible method includes offering

customers packing bags with business advertisement, putting in place seminars and attending trade

show exhibitions on their goods, promoting sales by donating a generator to a secondary schools

to boost business image. Additional advertisement means will be through placing the signboards

on the Matayos –Nambale road along the Kisumu Busia highway. This will give directions of the

business and also show services offered hence attracting more customers. The business manager

may also decide to advertise in local radio the business services at a lower cost of 350/- a week to

help reach local communities.

13
2.5.2 PROMOTION STRATEGY.

In order to promote business sales the manager will organize for production of calendars, capes

and key holders with business log to offer business customers with aims of promoting business

sales.

The management will enhance further promotion by planning for free donation of generators and

other relevant goods to secondary schools and industries for the purpose of boosting its image.

Reducing price is a special offer to customers and this may contribute to sale promotion, thereby

expanding the business.

2.5.3 DISTRIBUTION STRATEGY.

The customers will be highly welcomed, make a choice of goods and services they will desire,

package and given at the counter. The distribution channel which the manager will have power

over in the business will be effective, convenient and reliable to all customers. The distribution

channel may be long especially when the customers purchase goods in large quantities which may

need transport services by the help of the agent or agents. The distribution channel for the

WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE will resemble the one drawn

below.

14
WENSAM ELECTRONIC
CUSTOMER
AND ELECTRONICS

ENTERPRISE AGENT

ELECTRIC CENTRE

CUSTOMER

2.6 SALES TACTICS

The business manager will concentrate on most applicable tactics of running the business like

personal selling. The personal selling will include direct conduct with the business customers to

inform them about the goods and services it desires to offer in the present market structure. The

manager will provide poster and sign boards with business details of location and type of products

to be offered. The owner will also organize for quarantines to all potential customers who purchase

expensive electrical goods like generators, motors, armored cables at a cost giving at least 40%

profit to the business enterprise.

15
 CHAPTER THREE.

ORGANISATION AND MANAGEMENT PLAN.

3.0 INTRODUCTION.

This chapter will include details of how the business will be organized and managed. It will show

the personnel who will be responsible for the running of the business and the strategies they will

use.

3.1 ORGANISATION STRUCTURE.

3.1.1 ORGANISATION CHART.

The WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE has a relatively smaller

organizational chart showing positions of the key personnel from the top to the bottom level and

channels of communication illustrated.

16
 Managing Director

(manager )

Salesmen
Foreman
supervisor accountant

Security

Officer

3.2 MANAGEMENT TEAM.

3.2.1 BUSINESS MANAGER.

The manager is the key personnel for this sole proprietorship legal form of business. The

operations and the management of the business will be under her instructions: will be known by

the name WENCES KIPRONO SAMOE - aged 22 years.

QUALIFICATIONS.

The WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE is privileged to have

experienced engineers in the field of electrical engineering power point. The manager qualified by

17
having satisfactorily achieved a DIPLOMA in Business Management at Success Professionals

Institute for period of 3 years.

DUTIES

The major responsibility of the manager in enterprise works will include evaluating the

performance of the business, recruitment and termination of staff services, negotiating for loans

on behalf of the business, achieving all business goals planning, co-coordinating and administering

business functions effectively.

The manager fits to be the head of this enterprise mainly because he poses both theoretical,

practical and entrepreneual skills well acquired throughout his training session to provide smooth

running of the business. In addition, the manager is honest, faithful, social, responsible and

principled hence suitable for the position.

3.3 OTHER PERSONNEL.

Being a medium scale type of business, there is a number of persons who co-ordinate to meet the

standards of the requirements. These personnel are under the control of the key personnel shown

in the organization chart above.

The total number of employees in the business is seventeen and they include one foreman, two

accountants, three sales men, four security personnel and eight juniors which include three

cleaners, two welders and two drivers.

18
Foreman

The business has only one foreman as the key personnel. The qualifications are at least a pass in

electrical engineering, diplomas, two year experience, and a DIPLOMA in sales and marketing

and of the age 25-35 years.

The main duties of the foreman in the business is to recruit the staff, ensure proper utilization of

the machine and equipment, updating the manager on serious issues, guiding and instructing the

employees, representing the WENSAM ELECTRONIC AND ELECTRONICS ENTERPRISE in

labor union meeting and also being in charge of the stores and stocking.

Salesmen.

The business desires to have three salesmen with one being the head. Qualifications are that should

have a credit or pass in sales and marketing, must be computer literate, must be 2-5 years of

experience with at least a DIPLOMA in banking and financing and of age below 30 years, fluent

in both English and Kiswahili. They will be responsible for keeping of important records and

documents of the firm like inventories, files and certificates, advising the manager on financial

issues like purchasing, sales and transport costs, type letters and other documents of the business,

processing of salaries, receiving and welcoming visitors.

Accountant.

The business intends to have two accountants, the senior and the assistant.

Qualifications.

19
They must have at least a pass in accounting DIPLOMA or a C.P.A. 1 and 2 certificates from

recognized institutions, computer literate, at least a C in K.C.S.E. ,at least a three years working

experience, must be honest and faithful and of the age of 25-30 years.

Duties.

They will majorly deal with receiving and recording of incomes, issuing of receipt, keeping

financial records, coordinating with the sales men to advice the manager on financial issues and

all accounting duties of the business.

Security officer

These are four in number. One is the head of the other three.

Qualification.

Senior officer must have at least a DIPLOMA in K.C.S.E. of at least C- whereas the rest at least a

K.C.P.E. certificate, they must be fluent in languages, physically fit, height 4-6fts an experience

of 2 years and age 20-28 years.

Duties.

To provide total security of the premises by managing the gate against any intruder, direct clients

when necessary and to ensure that all kind of business premises are free from theft.

Driver.

The firm will have two drivers who will also work as office messengers when need arises.

Qualifications.

20
Must possess at least a K.C.S.E. certificate with a minimum of C plain in both English and

Kiswahili and a working experience of 2-5 years with a valid driving license.

Duties.

Transportation of business goods to various destinations, ensuring that the firm vehicles are well

maintained and serviced, delivery of parcels.

Cleaners and Welders

Are the personnel who help in keeping of the business environment tidy, welding and fabricating

of enterprise equipment such as motors and stands for business goods on display?

3.4 RECRUITMENT, TRAINING AND PROMOTION

RECRUITMENT

The WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE desires to employ more

efficient staff members in order to boost the standards of the business through increased profits

and quality of the products.

The recruitment process will follow a number of steps such as advertisement of the post to create

the awareness about the position, the short listing the various posts which they need persons. After

the interview the processing will be done through marking before making relevant selection for

appointment of that particular posts.

TRAINING.

After recruitment of new business employees, a training session will be put in place to enable them

acquire particular skills in consideration to their field of working. The relevant skills that may

acquire include, financial, quality control, management among others.

21
According to the level of understanding a trainee will be assigned a particular duty in respective

areas of work to help production thereby growth and development of the electrical Centre within

shorter period of time if under well management.

PROMOTION

The Centre targets to provide job adjustment, by promoting the positions of the various personnel.

This will base on a number of aspects such as job groups, job performance techniques,

dedication to work, good conduct and sense of responsibility and furthermore on the basis level of

academics and qualifications in various areas.

3.5 REMONITION OF STAFF.

The business will ensure that the employees will be paid their salaries on time during the time

which will be agreed upon by the employees and the finance manager. The employees’ salary will

not be paid on cash basis but will either be paid by cheque or deposited in the employees’ bank

account, this will be done for the security of the salaries.

3.5.1 REMONILATION OF MANAGEMENT TEAM.

The payment of the managers will be done on the basis of the profit and efficiency on their

departments. This way every manager will strive to make sure that their side makes the best profit

and also that they are very effective. However there will be a standing salary which will be made

despite an increase or decrease in profit.

22
3.6 RENUMERATION AND INCENTIVES.

Remuneration are salaries awarded to business personnel’s in consideration to their job positions

and duties. The WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE has its

systematic remuneration progressives as illustrated below.

Key personnel Salary per month Salary per year

Manager 12500 150000

Accountant 11000 132000

Sales supervisor 10800 129600

Foreman 10200 122400

Security officer 9800 117600

Total 54300 651600

Support staff Salaries per month Salaries per year

Two sales men 14000 168000

Two divers 13750 165000

Three watchmen 19050 228600

Two welders 12400 148800

23
 Three cleaners 17250 207000

Total 76450 917400

INCENTIVES.

Are allowances to firm personal savings and employees on top of their salaries to cater for other

expenses such as house, medical, transport and insurance allowances. A tabulated record of

incentives for the WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE is as below.

24
 Allowances.

TITLE. Transport Medical House Ksh. Ksh. Yearly

Monthly

Manage. 4850 6630 7225 18705 224460

Accountant. 4375 6595 7080 18050 216600

Sales supervisor 4350 6480 7050 17880 214560

Foreman. 4325 6475 7030 17830 213960

Security officer 4160 6430 6910 17500 21000

Sales man 4800 6400 7375 18575 222900

Driver 3940 6300 7135 17375 208500

Watchman 4000 6425 6950 17375 208500

Welders 4250 6575 6675 17500 210000

cleaners 4060 6270 6890 17220 206640

Total. 43110 64580 70320 178010 2136120

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3.7 SUPPORT SERVICES.

The enterprise has managed to acquire a number of supportive documents which contribute to the

protection and growth of the business Centre in any situation.

The service include;

Insurance cover protecting against any accidents e.g. fire, theft, breakdown among others. Other

services are lawyers to protect it in court case, accounting books audited by senior accountants to

show business financial records. In addition, establishment of good relationship with the banking

institutions e.g. KCB to enhance offering of mortgages to advance the business enterprise when

need arises.

3.8 LICENCE, PERMITS AND BY LAWS.

To enable smart operations of business then it must meet the government rules and regulations.

The business will acquire a number of documents such as licenses, permits and by laws.

The various licenses and other supportive documents will be of cost depending on validity and set

regulations for their existence.

In totality the documents include; NSSF (National Security Society Fund) National Hospital

Insurance Fund (NHIF) the Kenya Bureau of Standards (KEBS).

The other legal licenses required to start the business from Busia County council under the docket

of ministry of legal government. The license will be renewed annually at proposed cost of ksh.

2000 stated in the Kenyan industrial act. The works men compensation by law (cap 236) license

for protection of workers through compensation in case of damage or sickness.

Trade mark license that permit the use of the trade marks to identify the goods and services to be

26
offered as per the agreement. The permits will be obtained from the trading ministry which puts

into consideration the pricing policy, business environment and a certificate from the Kenya

Bureau of Standards (KEBS) before issuing of a permit to give a go ahead for the enterprise.

The WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE must also comply with the

bylaws for effective operations after the permission from the municipal council after a proper

inspections of the enterprise. A few sample of the bylaw for this Electrical Centre include being

on the business with one license, yearly renewal of the license and recommendation by the public

health for the business to run.

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 CHAPTER FOUR:

OPERATION/ PRODUCTION PLAN.

4.0 INTRODUCTION.

The WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE business will have a number

of objectives set help during production. The objectives include.

Ordering of goods in large quantities at a minimum loss to ensure low cost for its potential

customer to acquire possible discounts.

The business will also lest its goods thoroughly before delivery to promote good relationship with

customers and also to attract more customers.

The business will provide goods at affordable rates to the customers hence reducing bulky of

payment.

Furthermore the Centre will provide free maintenance and repair of goods to its customers under

a period of one year.

4.1 PRODUCTION FACILITIES AND CAPACITY UTILISATION.

The business aims at getting involved in using the best production methods by encouraging right

equipment and machinery mainly to enhance adequate, quality and efficient outputs inform of

products being of desired shape and size.

The table below shows a variety of equipment used by the WENSAM ELECTRONIC AND

ELECTRONIC ENTERPRISE for production.

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4.1.1LIST OF MACHINE EQUIPMENT AND TOOLS REQUIRED.
ITEM QUANTITY COST TOTAL COST SUPPLIER
Generator 1 80000 80000 Burglar

Printer 2 150000 300000 Boumale.

Computer 2 40000 80000 Santase

Photocopy machine 1 15000 15000 Burglar.

Tools cupboard 1 6000 6000 Mainper.

Maintenance tools 5sets 2000 10000 Burglar.

Stationary 2sets 3000 6000 Boumale.

Furniture 2sets 5000 10000 Tuskys ltd.

TOTAL Ksh. 301000 Ksh. 507000

4.1.1PRODUCTION PROCESS.

The business will majorly deal with trading of goods which they order from outside in large

quantities for resale to other customers. The received products will then be recorded in the

computer and the receipts and the invoices printed and any other documents reference in respective

files. The technician will be assigned to test the products before they are sold to the final customers.

29
In this same case the materials worn out from the old machines such as motors and generators will

be manufactured into different gauges for use to avoid wastages of wires, thus providing a

favorable chance for business expansion thereby capturing a variety of customers.

4.2 PRODUCTION STRATEGY.

The business will put in place a strategic plan that all the products are tested before being released

from the store for change on the market. This will mainly help to reduce or do away with

complaints from the customers.

The firm will ensure that products are ordered in large quantities to help in measuring of low price

charged to the customers. A warranty will be offered to the customers for a period of one year.

After sales services will be offered to customers. Those who buy bulky goods will be given a free

transport to their destinations, this will help improve and attract more customers into the business

from other business organizations.

4.2.1 OPERATION PLANS.

WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE will be located in western

province, Busia County opposite the large Busia sugar Company Nuclear next to the Nesewa

Health Centre on a land map measuring 50 by 50 square meter: inherited land hence advantageous.

The location is safe as it is free from theft and other related incidences with plenty of potential

customers.

4.2.2 WORK SCHEDULE.

A weekday schedule will always set off at 8:00 am up to 6 pm time that all usual workers will be

reporting and leaving the business firm with an exception of holidays. During weekends reporting

30
and leaving will be as from 8 am to 2 pm. Following a wide requirement by customers the business

will involve shifts workers who will take at least six hours beginning from 6pm. Up to 8am. In two

shifts a total of 14 hours, to enhance continuous profitability of the business.

Reception and dispatch of business goods will be made immediately in two ways as illustrated

below.

GOODS

RECEIVED
STORE DISPATCH

GOODS SALES
DISPATCH
RECEIVED COUNTER

4.2.3 PRODUCTION PLAN.

The production plan of this business covers all its manufacturers, assembling and trading sections

of goods and services.

The company will thus order in large quantities, test them and resell them at a profit where

necessary before trading them. This will just be to expand business income.

The business plan in production sector is to provide such as motors, generators, motor rewinding

wires, bearings, rotor and shafts, excitation capacitor, water pumps. Etc.

31
4.3 PRODUCTION DESIGN AND DEVELOPMENT.

The business will majorly deal with trading of goods which they order from outside in large

quantities for resale to other customers. The received products will then be recorded in the

computer and the receipts and the invoices printed and any other documents reference in respective

files. The technician will be assigned to test the products before they are sold to the final customers.

In this same case the materials worn out from the old machines such as motors and generators will

be manufactured into different gauges for use to avoid wastages of wires, thus providing a

favorable chance for business expansion thereby capturing a variety of customers.

4.4 RELEVANT REGULATION.

The business will operate under strict government regulations which will be obtained and renewed

on stipulated regular basis to avoid conflict with the law.

For the business to start its operation it must have licenses and permits after full approval by the

municipal council to satisfy human consumption.

In addition, WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE will be a registered

party of National Insurance Company for all sorts of disaster compensation within its expected

period of operation.

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 CHAPTER FIVE

FINANCIAL PLAN.

5.0 INTRODUCTION
This chapter shows how money will be utilized in running of the business during the starting of
the business and the plan of some years to come.

The finance of the business is expected to cover all the financial activities undertaken by the
WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE as the business.

The financial statement is to show proportional costs, the profoma invoice statements, profoma
balance sheet and the cash flow protection.

5.1 PRE-OPERATION COST

These are costs incurred by the business before commencing its operation.

ITEM COST (KSH.)

Electricity installation 15540

Advertisements 12100

Miscellaneous expenses 8980

Water installation feasibility 9880

License and permit 11450

Rent deposit 12500

Insurance 22550

Telephone installation 14440

33
 Business registration 4260
6600

TOTAL 118300

5.1.2 PROPOSED CAPITALISATION.

During the starting of the business, the business owner will have to look for the capital to finance
the start of the business.

The business will borrow cash from a bank and other N.G.Os. the business will also get assistance
from well-wishers.

5.2 WORKING CAPITAL REQUIREMENTS.

This describes how excess the value of the current assets is over the current liabilities as at given
period for the WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE type of business.

34
ESTIMATION OF WORKING CAPITALS

YEAR 1 YEAR 2 YEAR 3

Current Assets.

Debtors 42400 38000 33120

Cash at bank 400000 500000 500000

Cash in hand 250000 100000 200000

TOTALS 692400 638000 733120

CURRENT LIABILITIS

Creditors 80400 31000 33500

totals 80400 31000 33500

working capital 612000 607000 699920

Working capital = current assets – current liabilities

1st year=692400-80400=612000

2nd year=63800-31000=607000

3rd year=733120-33500=699620

5.2.1 CASHFLOW BUSINESS PLANION.

This part shows the movement of funds into and out of the business. It involves two parts i.e. both
inflow and outflow for acquisition of Net cash flow .The cash flow for three years 2020 and 2021
are as follows

35
 Year 1 Jan Feb Marc April May June July August Sept Oct Nov Dec
Beginning 40,000 50 10,000 20,000 40,000 30,000 16,000 18,000 10,000 19,000 20,000 45,000
capital
Donation 200,000
Owner Saving 800,000
Promotion 3,000 4,000 6,000 5,000 1,500 4,000 4,500 1,000 1,500 1,500 3,0000 3,5000 2,000
Advertisemen 4,500 3,000 1,500 1,000 500 2,000 2,500 40,000 1,000 1,000 2,000 1,500 3,000

36
t
Telephone 6,000 6,000 4,000 4,000 5,000 5,000 400 400 400 400 400 800 800
Transport 200 50 100 100 100 50 800 500 500 400 150 100 900
Rent 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Electricity 1,000 500 900 900 1,000 500 500 450 450 950 950 950 950
Water Bill 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Expenditure 9,000 10,000 8,000 8,000
 PROFORMA CASH FLOW STATEMENT YEAR2
Year 1 Jan Feb March April May June July August Sept Oct Nov Dec
Beginning 50,000 10,000 20,000 25,000 20,000 16,000 17,000 18,000 18,000 10,000 12,000 18,000
capital
Capital 30,000 200,000 15,000 12,000 10,000 10,000

37
purchase
advertisement 10,000 200 50 70 100 300 400 500 200 100 100 50 50
Transport 18,000 2,000 3000 5,000 4,500 6,000 5,500 400 200 100 500 600 550
Rent 3,000 500 460 100 300 350 200 250 650 700 600 200 110
Water Bills 560 300 200 100 150 350 400 250 190 960 100 400 400
Electricity 36,000 500 500 200 100 200 400 450 150 650 110 650 550
Bills
5.2.3 BUSINESS PLANED INCOME STATEMENT
This section summarizes the business income and expenses for the given period mainly for the
purpose of knowing whether the business is operating at a loss or profit.

WENSAM ELECTRONIC AND ELECTRONIC ENTERPRISE business has its business planed
income statement recorded for the three years of its operation as follows.

BUSINESS PLANED INCOME STATEMENTS

DETAILS YEAR1 2019 YEAR2 2020 YEAR3 2021

Net sale 1855929 1853700 1854814
Less loss of sales 750000 990500 888900
Gross profit 1105929 863200 965914
Expenses
Rent 24000 24000 24000
Salaries 490500 490500 490500
Telephone 18642 17850 18430
Electricity 11150 4450 4410
Water 8461 9160 8635
Advertisement 5257 3155 9030
Insurance 15000 15000 15000
Postage 8139 4260 4414
Repair & maintenance 10005 24400 2700
Miscellaneous 5515 5360 6380
Depreciation 9524 9524 9524
Loans interests 150000 150000 150000
Total expenses 756193 762659 743023
Net profit before tax 349736 100541 222891
Less income tax 20000 20000 20000
Net profit after tax 329736 80541 202891

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5.2.4 BALANCE SHEET.
AS AT 1st JAN 2024

ASSETS LIABILITIES + CAPITAL

Fixed Assets Liabilities

Furniture and fittings 5700 Long term liabilities

Machinery 44270 Loans 33670

Current Assets

Cash in hand 150000 Capital 600300

Cash in bank 350000

Debtor 4000

Stock 80000

39
5.6 BALANCE SHEET AS AT 31st DECEMBER 2023
FIXED ASSETS COST DEPOSIT NET Liability +assets

Furniture& fittings 5700 670 5030 Capital 600300

Machinery 44270 88541 35416 Add net profit 349736

40446 Loans 337000

12887036

Current assets

Cash at hand 250000 Short term liabilities

Cash at bank 40000 Creditors 85165

debtors 42400

stock 639355

1,372,201 1,372,201

40
BALANCE SHEET AS AT 31st DECEMBER 2022

FIXED ASSETS COST DEPOSIT NET Liability + assets

Furniture & fitting 6030 670 5360 Capital 600000

Machinery 35416 8854 26562 Add net profit 100541

31922 Reserves 539300

Loans 250000

Current assets Short term liabilities

Cash at hand 10000 Creditors 31000

Cash in bank 500000

Debtors 38000

Stock 851219

1,521,141 1,521,141

41
BALANCE SHEET AS AT 31st DECEMBER 2024

FIXED ASSETS COST DEPOSIT NET Liability + assets

Furniture & fittings 5630 670 4690 Capital 600300

Machinery 26562 8854 17708 Add net profit 222891

22398 Loans 165000

Reserves 570042

Current assets Short term liabilities

Cash at hand 200000 Creditors 9,600

Cash at bank 500000

Debtors 33120

Stock 812315

1,567,833 1,567,833

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5.7 CALCULATION OF BREAK EVEN POINT
B.E.P

YEAR SALES

2019 1,855,929

2020 1,533,700

2021 1,854,814

DESIRED FINANCING.

This specifies the appropriate amount of money required by the WENSAM ELECTRONIC AND
ELECTRONIC ENTERPRISE business to operate successfully e.g. for buying furniture,
machines, paying electricity bills among other necessary expenses before commencement.

43
5.8 DESIRED FINANCES FOR YEAY ONE

DETAILS AMOUNT IN KSH.

Business registration 6600

Electricity installation 15540

Insurance 14440

Rent deposit 22550

License and permit 12500

Telephone installation 4260

Flexibility study 11460

Water installation 9880

Advertisement initials 12100

Miscellaneous expenses 8980

Add fix assets 118300

Furniture and fittings 5030

Machinery 35416

Add working capital 612000

44
TOTAL DESIRED FINANCE 770,746
5.9 PROPOSED CAPITALIZATION

DETAILS AMOUNT IN KSH

Bank loan 150,000

Capital 600,300
Contribution from friends 50,000

Total proposed capitalization 800,300

45