CHAPTER ONE
1.0 BUSINESS DESCRIPTION
THE BUSINESS
i. Describe your proposed business;
What will be the name of the proposed
business?
Where exactly your business be located
(indicate the urban/rural area, trading centre,
plot number, land registration number, name
of the building/house, ward, street and
avenue)
When do you intend to start your
business?
Will you operate as a sole proprietor,
partnership or company?
What will be the major activity of your
business?
What will be the other activity of the
business?
Who will be your principal customers?
ii. Describe in details the exact place of your
business location
In relation to your proposed business
location, what will be your market area?
What infrastructure exist in your planned
business location (indicate the availability of
roads, railway, airport, telephone, water and
electricity)
To what extent is your business location
close to sources of raw materials, potential
markets, employees’ residents, potential
suppliers and critical market services?
iii. Justify the need for your business
venture;
What specific needs will your business
venture satisfy? (Consider the unsatisfied
local demand, export orientation, import
substitution, subcontracting or potential in
the growth industry)
What contribution will your business
make to the local community? (Consider
points like; employment creation, use of
local resources, promotion of indigenous
technology or provision of goods and
services.
1.1 BUSINESS NAME
It means the name of the business
Need to describe how the name is selected
One need to come up with a logo of the business
Logo identifies the business
1.2 BUSINESS LOCATION AND ADDRESS
It means where the business will be located, the
place and site
Location is general
Site is specific
Include a the map of the location
Physical address of business including email
and website.
1.3 FORM OF OWNERSHIP
The form of business may include;
Sole proprietorship
Partnership
Private company/public Company
Cooperatives
Give reasons for choosing this kind of
ownership
Give advantages and disadvantages to
show that you understand the business you
are going to start.
1.4 TYPE OF BUSINESS
It means whether the business is a
startup or ongoing
Give some of the activities of the
business
1.5 PRODUCTS AND SERVICES
What products and services you are going to
offer
Describe clearly and include features of
products and services for example indicate the
size, color, shape, materials, quality, and
packaging of the products
What benefits will customers obtain from using
your products and services e.g. consider the
performance, convenience, economy, comfort,
durability, servicing and warranties.
1.6 JUSTIFICATION OF OPORTUNITIES
The reasons for choosing that kind of business
e.g. exploit resources, nutritional value of the
opportunity, niche market, technology
advancement, professional qualifications, unmet
demand , climate favorable, infrastructure and
security.
1.7 THE INDUSTRY
i. Describe the size of the industry of your
proposed business
What is the name of your proposed
industry? Example; A ‘Matatu’ business
belongs to the transport industry.)
What is the size of the industry in your
business community? (Consider the total
number of firms in the industry.)
ii. Describe the key characteristics of the
industry of your proposed business.
What is the size of the firms in the
industry? (Indicate whether small, medium
or large)
What kind of technology is applied in
the industry? (Indicate whether modern,
obsolete, sophisticated or simple)
What is the average number of
employees in the firms in the industry?
What is the basic capital requirements
for the entry into the industry?
What is the general level of
sales/profitability for firms operating in the
industry?
What is the seasonal factors experienced
in the industry?
iii. Describe the industry trends and
prospects
What are the trends and prospects of
sales in their industry? (Indicate signs of
growth, stability or decline)
What are the trends and prospects of
technological development in the industry?
What are the competitive trends in the
industry (e.g. product innovation)?
1.8 BUSINESS GOALS AND OBJECTIVES
1.8.1 Goals
What does the business want to achieve in the
long term? For example to become a quality
leader, market leader, penetrate in the markets.
This are classified into primary goals, secondary
goals and long-term goals.
1.8.2 Objectives
What does the business want to achieve in the
short term? For example to maximize profits,
increase sales and minimize costs.
1.9 THE ENTRY AND GROWTH
Describe your entry and growth strategy
How will you penetrate and gain
acceptance in your market area? (Consider
your competitive advantages, weaknesses
among competitors, pricing, distribution,
advertising and promotion)
What will be the growth and expansion
beyond the entry products and services?
1.9.1 ENTRY STRATEGY
Competitive advantages of the business
that is what your business has, compared to
competitors
Weakness of the competitors
Pricing plan- how you will set your
prices for the products
Plans to attract consumers- methods
you’re going to use
1.9.2 GROWTH STRATEGY
Trends which signal business
growth/signs of business growth
Opportunities coming from the
trends/prevailing opportunities
Plans to take advantages of the
opportunities
Carry out SWOT analysis or use the 4
P’s of marketing as strategies for entry and
growth.
Activity 1
1. Following the above procedure write
chapter one of your business plan.
REFERENCES
1. Internet and ,EBooks
2. Entrepreneurship manual by KIE 2010
3. Entrepreneurship Simplified by N.A
SALEEMI(2009)
