BUSINESS PLAN-ELECTRICAL SHOP

This chapter contains the name of the business i.e. VAPSHI ELECTRICAL ENTERPRISE
which originates from the Victor Asutsi Peler
name

heTe Is Tull
Shitambatsi for a unique
of the location and address
in
identity the
of the business, form of
Duse rrhy. description
wnCsnp

The business is majorly involved in selling and repair of clectrical and electronic tools and
cquipment and oftering services relevant lo elcctrical. his chapter shows how the busincss

protnt maximzation eg. advertisement low prizes ol pducts/ *TviCes. promotion discounts
and attcr Salc services.

2.0 MARKETING PLAN

two describes and

Chapter different
ways of trading types of customers the business targets. The
business targets to serve 2,8000 potential customers within its locality. Its growth will be

determined by the quality of goods and services offered hence determing the profit of the
business.

This chapter shows the competitors of VAPSHI business which are BUSH, OBASH, BUYA and
others and indicate how the business will capital1ze on their weakness hence its success methods
of promotions and advertisement made to improve the business are clearly shown.

3.0 ORGANIZATION AND MANAGEMENT PLAN

Chapter three contains the management of the business and its organization structure. The

business has a manager

supervisor, sccretary. technical, artisans and security officers wth stated
responsibilities respective for their qualifications.

Recruitment of employees, training and promotion of workers and other important exercises are
in
cIearty shown tis chapter. 1he chapler also shows how remuneralion and incentives are aon t
and also the legality of the business.

4.0 PRODUCTION OPERATION PLAN

chapter four contains production and operational plan for the business. The business is largely
dealing with sales and repair of electrical tools 8 cquipments plus materials (facilities) hence
their estimmated cost are shown.
It also shows the business layout. production strategies, design and development of the business.

calculations1or
of ihe
monthly malerials requtred lor the business to operate. There are also the
operations of business.
regulations
5.0 FINANCLAL PLAN

Chapter five include calculations and totals of different finance plans like the pre-operational
cOst, the working capilal ctc.

It shows the cash flow projection tor year one which is tabulated and the accumulated cash is

1,312.500
This other calculations include the proforma balance sheet, income statement which has net
profit after taxation, break even level of the business, contribution margin and the break even
level of sales.

It has the profitability ratios which shows how the level of success of the buSiness are
calculated.

CHAPTER ONE

1.0 BUSINESS DESCRIPTION

the proposed business that is VAPSHI ELECTRICAL ENTERPRISE will be dealing specifically
with the sale of electrical materials, tools and equipments and also will be offering different
services like repair of electrical equipment, tools or gadgets, winding of motors ete.

1.I BUSINESS NAME

VAPSHI ELECTRICAL ENTERPRISE is the preferable name for the proposed business.
VAPSHI is a term arlistically twisted from real name i.e. VICTOR ASUTSI PETER
SHITAMBASI which is very unique or original name. Thus VAPSHI is a concrete ward that can
attract many people. It act as an advertisement.

1.2 BUSINESS PHYSICAL LOCATION

The business will be located at Kambi Mtu Market centre which is in Lubao area. North- West
torm Kakamega town and 10 KM way. IhiIs place is monthly prelerred because it is along the
road enhaneing easy transportation of goods arnd services. It 1s also at a market place hence it will
attract many people as customer. there is lull security as there is a police post.

The business address is

VAPSHI ELECTRICAL ENTERPRISE

P.O BOX 168

KAKAMEGA

Telephone N. 07269141

E-mail [email protected]

1.3 FORM OF OWNERSHIP

This business will be a sole proprietorship kind of business as it will be runned by one person.
This will be because
so
of the lollowing reasons:
(a) He will be the boss of his own thus nun the business without any interruption

(6) Easy to make decisions

(C) He will enjoy all the profits as he I will be the chief controller of the business.

14 TYPE OF BUSINESS

This business is to engage much in the following

(a) Selling of electrical materials like cables, switches insulators, lighting systems ete. electrical
tools like phase resters, clkctrical tool boxes and any other clectrical relatcd tools or cquipment.

(6) Repairing of faulty electrical gadgels in different capacitors.

(C) Motor Winding. rewinding, dismanting. repair and sell the rewinded motors.

Leasing out services like lighting system, music stereo type. Microphone etc in special occasions
like funeral. political meetings. weddings cte.

1.5 PRODUCTS/SERVICES

The products produced will be of high qualities, convenient and cheap for customers to afford.
Also the services will be aftordable lo all people sulficient motor rewinding will be done. All
these will be achieved by having skillful personnel and having a large stock to begin with, The
products and services will be readily available because of its location in situated in a market
centre along the road.
1.6 JUSTIFICATION OF OPPORTUNITTY

The assurance that the success of this business will be profound because of the following.

(a) Availability of knowledge and skills required to run any business which was got through
three years in college, also from the experience got during attachment and lastly the
entrepreneurial skils.

(b) The business will be situated in an area reachable many people enhancing the business too
grow. Also transportation of materials and workers will be casy as the business will be near the
road.

(C) Research will be done and more consultalions on how to grow in business.

1.7 INDUSTRY

This business
will e
Dn a hem to customers well doing
rewardin of motorsete This indsir sutable heeae artatiosfservICes
as as
nkC e w
thee maerials
becasvdue to the access of road, thersisis market
cre narket as the busincss will be locatcd
as the located in
business will be in an arca where
where
an area

is
there less competitiOn, availabilnty ol skillcd personncl and toois
qualnty products and servICEs olered
cquipments required hence

1.8 BUSINESS GOALS

Inthis changing world, the business will be very resourcetul to many people as it will have the
TOlowing goals.

1.8.1 SHORT TERM GOALS

(a) The business will create job opportunity to self and to others

(b) To establish a very successful business which can win customers interest at large within a
VCry Short periocd ot tume
possible
(c) To provide the best and quality products and services.

(d) To employ qualified personnel to assist in running the business thus eflicient production of
work.
1.8.2 LOG TERM GOALS

(a) To maximize prolit

(6) To expand into a bigger business dealing with large quantity of stock hence inereasing the
capacity of sales and services and workers.

(c) To open other branches that is 2-3 branches elsewhere so as to reach many people with our
services and products hence grow bigger in business.

(d) To venture into other small business beside this one e.g. opening a cyber cate, video show
Ce.
(c) To make sure all the personnel involved in the busincss get knowledge and skills with time
i.c. as the world changes, technology changes also so they need to be updatcd.

1.9.1 ENTRY STRATEGY

The business will employ many tactics and ways of penetrating the market e.g

(a) By oftering low prices to some products and services

(6) Ofering promotions like giving discounts and incentives

(C) Making more advertisement through posters radio, TVs, Road shows elc.

1.9.2 GROWTH STRATEGY

For ht business to grow into a large enterprise, the following is requiredd

(a) Employing dedicated and qualified personnel who can manage the business well

(6) Creating more space tor expnsion of the busness eg. buying land or plots.

(C) Buying a vehicle which can be used in transporting materials hence reducing cost of
ransportation and alsO lime wastage.

(d) Training the untrained stalf so as to improve their production hence effective work

(c) Steady carrying out of advertisement and frequent promotions

() Buying electronics devices like computer or laptop to help in storing information and other
necessary work.
(g) Motivating all the workers.

CHAPTER Two

2.0 MARKETING PLAN

VAPISH ELECTRICAL ENTERPRISE has many strategic plans to achieve its objectives and to
reach the market demands. These are like expanding its operation and space and also cmploying

skillful personnelto help management. The business

n whiech
wll be located in a central place
can be reached by many thus capturing many customers. The business will do throughout
advertisement of its services and products, ofler promotions, discount etc to win the interest of
people. The pricing of items and services will be relatively cheaper as compared to other
competitors. These products and services will always be readily available

2.1 POTENTIAL CUSTOMERS

The business targets to win both domestic and commereial customers. the domestic customerss
will be general public especially people around Kambimtu market who are most largeted as they
will buy as well bring their items for service. The commercial customers will be the middlemen
and hawkCrs who will buy goods Irom the business and sell them to the market.

2.2 MARKET SHARE

through research done thoroughly on the market in Kambimtu area, the bumcss is expected to
reach and serve 2,800 two thousand eight hundred customers who are potentlual.

There will be competition from other businesses like Bush Ekectro Shop, Obash workshop
(electrons) Buya electrons and others

NAME OF BUINESS PERCENTAGESHARE TOTAL NUMBER OF

CUSTOMERS
Bush electro shop 650

Obash workshop 21

Buya electronics 9 20

Vapshi electrical enterprise 26 30

thers 300

Totals 2,800
2.3 COMPETITION

VAPISH ELECTRICAL ENTERPRISE will face stiff competition from other business like
BUSH, OBASH, BUYA and others who werc established 4 years ago. The buiness will base on
the competitors weakness to conguer the buiness scene. Despite these competition, the enterprise
will have measures to cope and analyze competition 1.e.

(a) Developing Excellency in product and services provision

(6) Inerease the size of the buiness by expanding its operations and shop lour.

(c) Persuading more customers through promotions

(d) Improving the quality of goods and services each day

(e) Choosing the right and low cost technology with high volume.

SWOT ANALYSIS TABLE

BUSINESS NAME STRENGTH WEAKNESS

BUSH ELECTRO SHOP I t s centrally located
Poor relation

OBASH WORKSHOP
Longterm experience No
Highpromotion
prices offered
Readily available
petonnet

Quicker and better

SeTvices
BUYA ELECTRONICS Many employees L a z y personnel who are
not alwayS availabie
VAPSHI ELECTRONICS Low prices Little capital
ENTERPRISES
Quality goods and
SCTVIces
 Technical expertise
Promotionn

Famous in the market

OTHERS Famous in the market Je Few workers

2.3.2 ANALYSIS TABLE

BUSINESS| Product Pricing Promotion| Personnel| Location Size Total

NAME SCTVICE
Bush
lec
Sho

Obash

Electr
Vapshi
EIeerrones
npriSC
Ohes
Total 6

2.4.1 TRADE PROMOTION

This will be done by the business through

(a) Offering discounts on goods and services bought trom the buiness

(b) without
Employing good character and well hevared employees who can attend to all customers
favour or
lecar
(c) Purchasing enough stock of materials or items required to make sure that customers don't
miss anything

(d) ofering frec samples on goods bought hence atracting more pcople

(e) Marketing the services and products through buiness exhibitions and shows.

2.4.2 ADVERTISEMENT
The enterprise will employ the following advertisement methods.

(a) Through posters where all the activities and location of the buiness will be written on the
posters and spread all over the Kambimtu market
(b) Through local F.M radio e-g. Murembe F.M. West F.M or Radio Mabo who can pass
inlormalion in local language to many people.
(c) Use of sign post to show where VAPSHI ENTERPRISE can be found.

(d) Through local newspaper like Kambi Faily Asubuhi Nisikize ete. which are locally
wrillen and do reach many people around.

(e) Through direct email to the middlemen who can be potential customers.

(0 Al:I these methods will ensure that customers are, well informed about the direction,
location operating time and Kind ol services provided.

2.5 PRICING STRATEGY

The business will adopt different pricing strategies like:-

(a) Competitive pricing where competitors prices will be analyzed and compared then come up
with a suitable price which is relatively cheap lor the products and services.

(b) Cost plus where prices will be determined through the cost of materials used or involved

(c) Psychological pricing where goods and services are blended to capture the customers
psychologY

(d) Diseriminating pricing where the enterprise will be selling a commodity at two different in
cost eg. time pricing where by during the day charges can be different from that of evenings.
2.6 SALES TACTICS

There are many sale tactics that buiness is going to use eg.

(a) Opening its doors for long hours make sure that customeTs get what they want at any time.

(b) Having enough stock and offering the best quality products and services

(c) Adopting an atractive way of pricing where goods or services wont be priced so high hence
altordable to everyonc

(d) Advertise frequently goods and services of the buiness through the radio. posters, newspaper
Cc
(e) Employing very polite, humble, friendly. net and educated workers who will attend to
cUstomers and any oner persons correctuy.

2.7 DISTRIBUTION STRATEGY

The enterprise will employ both direct and indirect channels of distributing its goods and
to
services customers. Goods and services will be sold to customers directly from he shop tloor
or sensing experts to them to services or repair their items. Also goods may reach the customers
indirectly from the business through agents, distributions or hawkers.

CHAPTER THREE

3.0ORGANIZATION PLAN/ MANAGEMENT

3.1 KEY MANAGEMENT PERSONNEL

(a) Manager

Qualifications

Should have a diploma in Electrical Engineering

. Should be compuler literate

.Should have 30 and above years

3.2 OTHER PERSONNEL, DUTIES AND NUMBER

SECRETARY

The proposed buiness will have one secretary

Qualification
Should be at least a stage lI module and above with basis knowledge ON BOOK keeping
and oftice practices

Should also be
computer literate

DUTIES AND RESPONSIBILITIES

Responsible for office records and book keeping

T o handle issues relating to customers i.e. acting as receptionist

Receive and make calls on behalf of the buiness organization.

TECHNICIAN (2)

The buiness will employ two lechniciansS

QUALIFICATION

Should be a certificate holder or above in electrical engineering

Should be computer literate

Duties and responsibilities

L o o k for contracts of work

Design and cooperate all electrical projects.

ARTISANS

T h e proposed enterprise will have three Artisans

 Qualifications

They should have skills atlcast in determining any faulis, knowledge on electrical gadgets
ec.

Should be able to communicatle either in Kiswahili or English

Duties and Responsibilities

Should be able to detect any fault in an cquipment and serviee or diagnose

Carrying out duties delicated to them by the seniors.

Security oflicer

T h e business will have one security ollicer

Qualification
Should be a form tour leaver and above

Should have a 5 years experience in security forces

Duties and Responsibilities

Keeping Vigilant security during the night and day time

3.3 RECRUITMENT, TRAINING AND PROMOTION

RECRUITMENT

T h e business will make advertisement of its job opportunitices through local newspaper, local
F.M radio like West F.M etc.

There will be interviews for the reeruits done by the manager questions will be asked
Individuals dignity honour will be considered reach to
concerning the job ascertained. so as
the satistaction of the customers.

Employees will have at least a week to adopi and be familiarized with the buiness.

Training
 be trained according to their qualification s to improve their
The new employees will
elticiency and knowledge

They will be taught safety measures, their roles etc. in the buiness.

T h e y will also be attending seminars or workshop

PROMOTION

T h e employees will be promoted according to their performance and ability working

T h e following will be considered when promotmg employee

Their level of pertormance

Training and qualification of each individual

Punctuality and accountability

G o o d public relation

Loyalty to the enterprise

Irust WorthinesSS

Diligence
. Creativity

3.4 REMUNERATION AND INCENTIVES

Remuneration will be done so that salaries set for employees c an be realistic according to their
experience and level of education

Employees earmings will include salaries and allowances monthly.

INCENTIVES

(i) Financial incentives

Employees will be paid money according to their productivity and hours worked for. Also they
can earn overtime, bonus and interests

(i) Non- Financial incentives

There will be safety at work place, health facilities, sick pays, transportation to and from work,
free lunch, free tea, saety clotting etc.

REMUNERATION AND INCENTIVES TABLE

JOB TITLE UMBER SALARIES MEDICAL OTHER TOTAL

KSHS P.M ALLOWANCE SPECIFY (KSHS)
PERSONNEL
Manager 20,000 4,000 2,000 26,000

Supervisor 12,800 3,200 1,000 17,000

Technician 9.000 2.500 00 24,000

Secretary 7,000 1300 8,300

Artisans 5,500 1,100 19,800

Security officer 3,800 1 TO0 4,900

Total 100,000

3.5 LICENSES, PERMITS AND BY - LAWS

The buiness will require legal procedures for it to start its operations

will
TheseagenciCs.
include clearances. permissions, licenses etc from the government ministries and
these legal documents
Olher Some of
are:
i) Trading icense from eh Ministry of Trade which is free of charge

(i) Certificate of ownership from the register of ownership (chargeable)

(ii) Labour laws governing the employees Insurance whereby employees will be inaired by
Duness.