BUSINESS PLAN

APEX WEBSITE DESIGNERS

PHONE NUMBER: 0759154313

PRESENTED BY: CHARLES KANYENJE KABIRU

INDEX NUMBER: 2060010618

PRESENTED TO: NAIROBI INSTITUTE OF BUSINESS STUDIES

TECHNICAL COLLEGE

SUPERVISOR: MR. FELIX MUMO

PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL

IN PARTIAL FULFILLMENT FOR THE AWARD OF DIPLOMA IN
INFORMATION COMMUNICATION AND TECHNOLOGY

EXAM SERIES: JULY 2024

i|Page
 DECLARATION

STUDENT DECLARATION
I declare that this business plan is my original work and has not been presented for the award of
certificate, diploma or degree to any other institution or examining body.

Student name: Charles Kanyenje Kabiru

Index number: 2060010618

Signature:

Date:

SUPERVISOR DECLARATION
I hereby declare that the business plan has been supervised and presented to the Kenya National
Examinational Council with my approval as the college supervisor.

Supervisor name: Mr. Felix Mumo

Signature:

Date:

ii | P a g e
 1 ACKNOWLEDGEMENT
First and foremost is to thank the Almighty Lord for bringing me this far. And also to thank my
parents for their undying support and also to those who never lost faith in me plus the institution
for the knowledge imparted to me by my lecturers and lastly I want to thank myself for never
giving up and for reaching this far.

iii | P a g e
 2 DEDICATION
In my early stages of starting this project I struggled a bit with the starting of this project but my
cousin Jeff helped me with research, feedback and constructive criticism which made me reach
this far which is why I am dedicating this project to him.

iv | P a g e
TABLE OF CONTENTS
1 ACKNOWLEDGEMENT.........................................................................................................................iii
2 DEDICATION........................................................................................................................................iv
1. CHAPTER ONE: BUSINESS DESCRIPTION.............................................................................................1
1.1.1. Background of the business owner..........................................................................................1
1.1. Business name and location.........................................................................................................2
1.1.1. Business Name.....................................................................................................................2
1.1.2. Business location and address.............................................................................................2
1.2. Form of business ownership........................................................................................................3
1.3. Products and services...................................................................................................................3
1.1.3. Services................................................................................................................................3
1.4. Justification of a business opportunity.........................................................................................3
1.5. Industry........................................................................................................................................4
1.1.4. Industry size.........................................................................................................................4
2.1.1.....................................................................................................................................................4
1.1.5. Industry characteristics........................................................................................................4
1.1.6. Industry trends.....................................................................................................................5
1.1.7. Industry future.....................................................................................................................5
1.6. GOALS OF THE BUSINESS......................................................................................................6
1.1.8. SHORT TERM GOALS............................................................................................................6
1.1.9. LONG TERM GOALS..............................................................................................................6
1.7. ENTRY AND GROWTH STRATEGY......................................................................................6
1.1.10. ENTRY STRATEGY.................................................................................................................6
1.1.11. Growth strategy...................................................................................................................7
1.1.12. SWOT ANALYSIS.............................................................................................................7
2 CHAPTER TWO: MARKETING PLAN.....................................................................................................8
2.1. POTENTIAL CUSTOMERS.......................................................................................................8
2.2. Organizational customers............................................................................................................8
2.3. Domestic customers.....................................................................................................................8
2.4. Institutional customers.................................................................................................................8

v|Page
 2.5. Market share................................................................................................................................8
2.6. COMPETITON...........................................................................................................................9
2.7. PROMOTION AND ADVERTISING STRATEGY.................................................................10
1.1. PROMOTION..........................................................................................................................10
1.2. Advertising strategy...............................................................................................................11
2.8. PRICING STRATEGY..............................................................................................................11
2.9. SALES TACTICS.....................................................................................................................12
2.10. DISTRIBUTION STRATEGY..............................................................................................12
3 CHAPTER THREE: MANAGEMENTAND ORGANIZATION PLAN...........................................................13
3 13
3.1 Management team....................................................................................................................13
3.2 Functions and roles of a manager..............................................................................................13
3.2.1. Functions of a manager......................................................................................................13
3.2.2. Roles of a manager............................................................................................................15
3.3 Organizational chart..................................................................................................................16
3.4 Key personnel............................................................................................................................17
3.5 Recruitment, training and promotions......................................................................................17
3.2.3. Recruitment.......................................................................................................................17
3.2.4. Training.............................................................................................................................18
3.2.5. Promotions.........................................................................................................................18
3.6 Remuneration and incentives....................................................................................................19
3.2.6. Remuneration.....................................................................................................................19
3.2.7. Incentives...........................................................................................................................19
3.7 Licenses, permits and by-laws...................................................................................................20
3.2.8. Licenses.............................................................................................................................20
3.2.9. Permits...............................................................................................................................20
3.2.10. By-laws..............................................................................................................................20
3.8 Support services........................................................................................................................20
3.2.11. Banking services................................................................................................................21
3.2.12. Insurance services..............................................................................................................21
3.2.13. Legal services....................................................................................................................21
3.2.14. Consultancy services..........................................................................................................21

vi | P a g e
4 CHAPTER FOUR: PRODUCTION/OPERATION PLANS..........................................................................22
4.1. Production facilities and capacities............................................................................................22
4.1.2. Machinery, tools and equipment.......................................................................................22
4.1.3. Firm layout.........................................................................................................................23
4.2. Production strategy...................................................................................................................23
4.1.4. Cost of material..................................................................................................................24
4.1.5. Cost of labor.......................................................................................................................24
4.1.6. Overhead cost....................................................................................................................24
4.1.7. Total cost of production.....................................................................................................24
4.1.8. Production process............................................................................................................24
4.3. Regulation affecting operations.................................................................................................25
4.1.9. Regulation laws..................................................................................................................25
4.1.10. Labor laws..........................................................................................................................25
4.1.11. Employees, safety rules and regulations............................................................................25
5 CHAPTER FIVE: FINANCIAL PLAN........................................................................................................26
5.1 Pre-operation cost.....................................................................................................................26
5.2 Working capital..........................................................................................................................26
5.3 Cash flow projection....................................................................................................................1
5.3.1 Cash flow projection for the year 2024................................................................................1
5.3.2 Cash flow projection for the year 2025................................................................................3
5.3.3 Cash flow projection for the year 2026................................................................................4
5.4 Pro-foma income statement.........................................................................................................1
5.7 Total contribution........................................................................................................................2
5.4.3. Contribution margin percentage..........................................................................................2
5.4.4. Total fixed cost.....................................................................................................................2
5.4.5. Break-even point..................................................................................................................2
5.8 Profitability ratios........................................................................................................................3
5.4.6. Gross profit ratio..................................................................................................................3
5.4.7. Net profit ratio.....................................................................................................................3
5.4.8. Return on equity..................................................................................................................4
5.4.9. Return on in investment......................................................................................................4
5.4.10. Asset turnover.....................................................................................................................4

vii | P a g e
 5.4.11. Quick ratio...........................................................................................................................4
5.4.12. Liquidity ratio.......................................................................................................................4
5.9 Desired financing.........................................................................................................................5
5.10 Proposed capitalization................................................................................................................5

viii | P a g e
 LIST OF TABLES

Table 1.........................................................................................................................................................1
Table 2.........................................................................................................................................................7
Table 3.......................................................................................................................................................10
Table 4.......................................................................................................................................................17
Table 5.......................................................................................................................................................19
Table 6.......................................................................................................................................................22
Table 7.......................................................................................................................................................26
Table 8.......................................................................................................................................................26
Table 9.........................................................................................................................................................2
Table 10.......................................................................................................................................................3
Table 11.......................................................................................................................................................4
Table 12.......................................................................................................................................................1
Table 13.......................................................................................................................................................1
Table 14.......................................................................................................................................................2
Table 15.......................................................................................................................................................5
Table 16.......................................................................................................................................................5

ix | P a g e
 LIST OF FIGURES

Figure 1........................................................................................................................................................2
Figure 2........................................................................................................................................................5
Figure 3........................................................................................................................................................9
Figure 4......................................................................................................................................................16
Figure 5......................................................................................................................................................23

x|Page
 EXECUTIVE SUMMARY

CHAPTER ONE: BUSINESS DESCRIPTION

The proposed business is Apex Web Designers. The business is a sole proprietorship and will be
located in Nairobi County, Ruaraka town along Baba Dogo Road. The proposed business is more
concerned with the production of services more than products and its objective is to serve all
types of business around the world with the services it offers.

CHAPTER TWO: MARKETING PLAN

The proposed business potential customers will be organizations, institutions and individual
customers, and the main competitors are Brightstar web designers, New Dawn Designers and
Nova Web Designers. The main threat that comes from my competitors is that they have skilled
personnel with years of experience and the way we have adopted to curb this threat is through
the strategic location of our business and the business having adequate resources the promotion
strategy to be adopted is the use of social media.

CHAPTER THREE: ORGANISATIONAL PLAN

The owner of the proposed business will be the manager and will be supported by; the
subordinate staff in running the business. The manager and his subordinate staff will be needed
to have met some academic qualifications for the business to run smoothly. The subordinate staff
-will include a secretary, salesperson, an accountant, a web designer, trainers and cleaners.

CHAPTER FOUR: PRODUCTION PLAN

The proposed business will be operating on a full-time basis, where all employees will be
expected to work full time to enable high production. The proposed business will have facilities
for production of the offered services, and also come up with strategies to enhance the quality of
our services, service price, customer relations and employee motivation. This will take place
through professional training and employee’s performance appraisal.

CHAPTER FIVE: FINANCIAL PLAN

The proposed business capital was 520,000 ksh, the business total pre-operational cost was
375,800 ksh, working capital 320,000 ksh,

xi | P a g e
 1. CHAPTER ONE: BUSINESS DESCRIPTION
1.1.1. Background of the business owner
The name of the proposed business owner is Charles Kanyenje, a Kenyan citizen, 19 years of
age, and single.

He went to Stary academy attained 329 marks out of 500 in his Kenya certificate of Primary
Education, and later joined Endarasha Boys High school and attained a C+. He is currently a
student at Nibs technical college pursuing diploma in Information Communication and
Technology and he plans to further his education to a degree level in Information
Communication and Technology at Jomo Kenyatta University.

The owner of the proposed business does not have professional qualification but has little
business experience which he acquired working as a sales rep for Ariel.

The owner intends to invest a capital of, ksh 800,000 of which ksh 500,000 will be owner’s
equity, ksh 100,000 will be bank loan and ksh 200,000 will be contribution from family and
friends.
Table 1

Source Amount
Owner’s equity Ksh 500,000
Bank loan Ksh 100,000
Contribution from family and friends Ksh 200,000
TOTAL ksh 800,000

1|Page
 1.1.Business name and location
1.1.1. Business Name
The name of the proposed business honor is Nova web designers and the reason why I settled
with this name is because the name is concise and easy to remember which is advantageous
when it comes to marketing.

1.1.2. Business location and address

The proposed business will be located at Baba Dogo Road in Ruaraka town

And the main reason why I chose this location is because Ruaraka is a growing urban town with
a lot of resources and also a dense population whereby the dense population will serve as my
potential clients.

Ruaraka also has major businesses that attract people and small businesses such as my business

Hence, they will require my services.

MALL

BABA DOGO
ROAD

Figure 1

2|Page
P.O BOX 426-48

1.2.Form of business ownership

The form of ownership will be entirely sole proprietorship

The advantages of being in a sole proprietorship are;

1. I will be able to have full control of decisions being made.

2. I will enjoy all the profits without having to share unlike in a partnership.
3. I can be flexible with the hours.

The disadvantages of being a sole proprietor are;

1. Losses are suffered alone.

2. There is no assurance of a salary unlike being employed.
3. Long working hours compared to an employed person.

1.3.Products and services

1.1.3. Services

The esteemed business proposal will be involved in making of all kinds of websites, maintaining
websites which includes making any adjustments to the websites if need be.

The business will also be involved in printing documents such as posters, brochures, calendars
and printing large scale documents like those on billboards.

The business also focuses on graphic and 3d printing.

1.4.Justification of a business opportunity

The reason behind my choice of becoming a web designer is due to the advancements that
technology has made and through this technology I will be able to gather resources that will help

3|Page
me advance myself in our ever-growing society, also I will be able to meet customers demand
and in turn giving back to the community.

Last but not least in order to get self-satisfaction.

1.5.Industry
1.1.4. Industry size
The proposed business which is web designing falls under Information Communication and
Technology industry.

And at first, I will be opening one firm and after it becomes a success, I will open other branches
across the major towns and cities in Kenya.

The required personnel will be myself and two others who have met the required qualifications
in order to help me with the day-to-day activities.

2.1.1
1.1.5. Industry characteristics
The machinery needed for the smooth flow of the business will be three laptops or desktops, two
printers and one plotter without forgetting internet connection to help in getting in touch with the
clients and also it is essential in the web designing business.

The equipment needed are supposed to be of date so as to cope with the emerging trends in the
technological world and also to meet the needs of the clients plus smooth flow of operations.

4|Page
 1.1.6. Industry trends
According to statistics the web designing businesses in ICT industry has inclined gradually over
the past few years in both sales and profits as the demand in these services are in need as more
and more businesses are adapting technology.

BAR GRAPH SHOWING THE TREND OF WEB DESIGNING SALES AND PROFITS.

Sales and profits

80

70

60

50

40

30

20

10

0
2019 2020 2021 2022 2023

Series 1 Linear (Series 1)

Figure 2

1.1.7. Industry future

According to the graph above in 1:6:3 it appears the industry has a bright has a bright future and
that the good days are in-front of it in the coming years.

5|Page
 1.6.GOALS OF THE BUSINESS
1.1.8. SHORT TERM GOALS
Within the first ten months of opening the business these are the goals I hope to have achieved;

 To have raised awareness about the existence of my business in Ruaraka only at first
through appealing posters which will in turn give my business the exposure it needs
which will bring clients to my business thus promoting it and maximizing sales and
profits.
 Begin online sales in the coming five months.
 Begin an “employee of the month” program to motivate my workmates.

1.1.9. LONG TERM GOALS

As time progresses and have moved past the break-even point this is what I hope to accomplish;

 To expand my business across the major cities and urban towns in the country to
maximize profits.
 Producing and distributing new products to the market.
 Contributing to the growth and development of web designing industry by raising even
more awareness.
 By creating a good reputation for my business which will be favorable to the business
through small donations in charity.

1.7.ENTRY AND GROWTH STRATEGY

1.1.10. ENTRY STRATEGY
Nova web designers ltd will commence its operations sometime in January 2025 in order to have
a whole year to adapt to any new changes in the world, technology or something I might have
overlooked as crucial to its functionality.

1. I will use social media to promote my business through TikTok, Facebook and Instagram
as it’s easier to reach a larger audience and it is also cost effective.
2. In order to attract more clients, I will learn what other web designers charge for their
services and then I will charge slightly less thus appearing like the preferable option.

6|Page
 1.1.11. Growth strategy
In order for my business to have a long run in the future it will be essential I produce a variety of
goods and more services which will be of high quality and also to embrace technological
advancements as they make work easier and also aid in the production of high-quality products.

1.1.12. SWOT ANALYSIS

Table 2

Strengths of the Weaknesses of the Opportunities Threats

business business
Experienced and skilled Inadequate resources Decrease in Advancement of
workforce competition. technology.
Advancement of High cost of operating. Advancement High taxation.
technology of technology.
Up-to-date machinery. Regularly keeping up with Demand for High cost of raising
changes in technology. these services awareness.
by opening
businesses.

7|Page
 2 CHAPTER TWO: MARKETING PLAN
1.2.POTENTIAL CUSTOMERS
The potential customers of the proposed business are classified into three categories one of them
being;

1.3.Organizational customers
Just within my business vicinity is a well-known restaurant and recreational park and such major
companies require websites for their target customers to access their services and information
and my proposed business will be there to help them in maintaining their websites and updating
their websites with their new information and new services and products.

1.4.Domestic customers
These are individual customers who will require my services and products such as people who
require printing services and posters and also during campaigns as political leaders require
posters and billboards for their exposure and my business will be more than ready to act on this
customer’s requests.

1.5.Institutional customers
There is a mall near my business which is Garden city which houses many businesses whereby
these businesses will require my services for their exposure through the use of posters which I
print and also A1 size paper which are placed on billboards, also they will require websites will
need to be updated my proposed business will be ready to assist.

1.6.Market share
The total population of the proposed business is approximately six hundred thousand people
whereby Brightstar targets two hundred thousand people, New Dawn targets a hundred and fifty
thousand people where these people are going to be the potential customers.

The market share is as follows;

Brightstar web designers 200,000/600,000 * 100 = 33%

8|Page
New Dawn web designers 250,000/600,000*100= 42%

Nova web designers 150,000/600,000*100= 25%

Sales

25%
33%

42%

Brightstar web designers New Dawn web designers

Nova web designers

Figure 3

1.7.COMPETITON
The proposed business takes competition from two other web designers which are Brightstar web
designers and New Dawn web designers.

And it’s important for a business to face competition because it keeps a business busy and
creative trying to find a way to better their services and quality of their products in order to win
over more customers and remain in operation.

And also, competition helps a business to remain relevant and up to date with emerging trends in
order to remain a choice to customers.

Strengths Weaknesses Opportunities Threats

Experienced Poor location Increase in Increase in
Brightstar personnel customer competition
demand

9|Page
 Inadequate
resources
Inexperienced
personnel
Bad reviews Increase in Increase in
New Dawn customer competition
demand
Poor location
Inadequate
resources
Inexperienced Increase in
Nova personnel competition
Poor location
Negative Increase in
reviews customer
demand
Table 3

Nova web designers will take advantage of the other competitor’s weaknesses in order to become
the better option for example inadequate resources Nova will ensure that it will always have
necessary funds to cope with any emerging trends and also to hire experienced opportunities as a
way of giving back to the community hence becoming the better reviews.

1.8.PROMOTION AND ADVERTISING STRATEGY

1.1. PROMOTION
Promotion is a marketing tool used a strategy to communicate between the sellers and the buyers.

When introducing my business to the market I will use social media to exposure my business to
the potential customers and organizations as platforms such as TikTok, Facebook, Instagram can
be used to reach a lot of people at once and also, it’s cost effective which is an added advantage.

And the reason for choosing social media is that one

1. I will reach a large population of people

2. It is cost effective as not a lot of resources are used in promotion of businesses in social
media.

10 | P a g e
3. Through social media there is in depth analysis through comments and also feedback where I
will know my customer’s needs and also through it we will interact and exchange
information based on their needs.
4. And also, it helps in generating more income as I am dealing with a larger market as even
residents of neighboring countries and continents can request for my web designing services.

1.2. Advertising strategy

Advertising is the activity or profession of producing advertisements for commercial products or
services.

The proposed business shall use social media as a means of advertising and also through the use
of posters.

The reason for choosing social media is;

 There is increase in brand awareness.

 It is a cost-effective method of marketing.
 Also, it has better return on investment (ROI).
 There is access to a wider audience.
 It gives my business to a competitive advantage of other businesses.
 There is improved customer engagement.


1.9.PRICING STRATEGY
Pricing is the process whereby a business sets the price at which it will sell its products and
services, and which is a part of the business’s marketing plan.

Pricing strategy to be used will be price skimming whereby when introducing new products and
services at beginning they are expensive but gradually decrease over time.

And also, employ value-based pricing strategy where prices vary form one location to another
and also their quality as geological factors come into play.

Prices will vary as there is technological advancement with each passing day, hence will differ
from time to time.

11 | P a g e
Price skimming is advantageous in that one can segment the customer’s base with different
marketing strategies at each price level.

Value based pricing strategy is inexorably linked to the customer and what they want. Using
value pricing means you are obligated to gain a deep understanding of your customers and
respond to their needs. This relationship can result in increased product innovation and gaining a
competitive advantage.

1.10. SALES TACTICS

The selling tactics that the proposed business will employ is selling directly to the customers as
through this I will understand deeply what the consumer needs and also through this I will create
rapport with the customers hence creating loyalty and that becomes a competitive advantage.

As customers will come directly to buy posters and for printing services and also web designing
services hence selling directly is more appropriate.

1.11. DISTRIBUTION STRATEGY

The distribution strategy to be used will be directly as I will use road transport the products made
and requested by the customers to them as road transport is cost effective.

For the services this are done through electronic means where after they pay I will send through
the use of email the website designed as these transactions can be done even in remote areas
without even having to meet up.

The cost for transportation will be according to distance covered to avoid misuse of funds and
also to protect the business from dishonest people.

The problem facing my proposed business is that it focuses more on the service side than the
products side hence the products to be transported won’t a lot but this can be rectified through
pricing slightly more on products which require to be transported to the customer rather than the
ones where the customer comes for it themselves.

12 | P a g e
 3 CHAPTER THREE: MANAGEMENTAND ORGANIZATION PLAN

3
3.1 Management team
Tis business will be managed by one manager which will be me and the supporting staff will
include a secretary, a salesperson, accountant and about three production personnel.

3.2 Functions and roles of a manager

1.1.1. Functions of a manager
Under functions we set the foundation of the business through these five managerial processes
which are;

Planning

Planning sets the pace for all subsequent steps in the managerial process.

The steps I intend to use in accomplishing my goals are as operational manager is to lay out the
steps on how to tackle the firm’s direction and how it will affect my business like saving up for
any emergencies in the future.

And to ensure it is effective, I will incorporate the effects of both external and internal factors as
well.

External being shortage of resources, both capital and material, general economic trends such as
inflation and how to adopt to these factors.

Internal being limited growth opportunities due to saturation requiring diversification.

Organizing

Requires a formal structure of authority and the direction and flow of such authority through
which work subdivisions are defined arranged and coordinated so that each participant to the
other part in a united and coherent manner so as to attain the prescribed objectives.

Here I will provide the business with everything useful for its functioning like raw material,
tools, capital and personnels.

13 | P a g e
It is connected with;

1. Identifying the tasks that must be performed and grouping them whenever necessary.
2. Assigning these tasks to the personnel while defining their authority and responsibility.
3. Delegating this authority to these employees.
4. Coordinating these activities.

Staffing

As the manager, I will personally recruit the workforce needed, and also participate in training
them and getting them up to speed with the operations of the firm.

I will also compensate and evaluate the employees in order to maintain it with the proper
incentives and motivations, since the human element is the most vital part of the management
process, it is of utmost importance I recruit the right personnel.

And lastly, I will internalize the sociological and psychological structure of the workforce to
ensure that everything and everyone are compatible.

Directing

Being the manager, I will be involved in leading, communicating, motivating and supervising the
employees so that they perform their activities in the most efficient manner possible, in order to
achieve the desired goals.

Controlling

Controlling consists of these activities that are undertaken to ensure that the events do not
deviate from the pre-arranged plans.

And the activities consist of establishing standards for work performance, measuring
performance and comparing it to these set standards and taking corrective actions as when
needed, to correct any deviations.

14 | P a g e
 1.1.2. Roles of a manager
a) Interpersonal roles
Figurehead includes symbolic duties which are legal or social in nature.
Leader- includes all aspects of being a good leader. This involves building a team,
coaching the members, motivating them, and developing strong relationships.
Liaison- includes developing and maintaining a network outside the office for
information and assistance.
b) Informational roles
Monitor- includes seeking information regarding the issues that are affecting the
organization. Also, this includes internal as well as external information.

Disseminator- on receiving any important information from internal or external sources,

the same needs to be disseminated or transmitted within the organization.

Spokesperson- includes representing the organizing and providing information about the
organization to outsiders.
c) Decisional roles
Entrepreneur- involves all aspects associated with acting as an initiator, designer, and
also as an encourager of innovation and change.

Disturbance handler- taking corrective action when the organization faces unexpected
difficulties which are important in nature.

Resource allocator- being responsible for the optimum allocation of resources like time,
equipment, funds and also human resources and others.

Negotiator- includes representing the organization in negotiations which affect the

manager’s scope of responsibility.

15 | P a g e
3.3 Organizational chart

Manager

Web-
Secretary Salesperson accountant
designer

Cleaners

Figure 4

Titles Duties Responsibilities Qualifications

Manager  To organize  To ensure there  Must have a
the business is a smooth diploma in ICT
activity flow of business
activities
Accountant  Manage  Issue receipts,  Must have a
transactions refunds diploma in
with accounting.
customers
Secretary  Filing  Preparing  Must have a
 Organizing and reports diploma in
servicing  Handling secretarial
meeting correspondence
 Prioritizing
workloads
Cleaners  cleaning the  performing and  a good rating
workplace documenting  experience

16 | P a g e
  stocking and routine
supplying inspection
designated activities
faculty areas
Web designer  involved in  designing the  Diploma in
technical and overall layout ICT
graphical and aesthetic
experts of for websites
website
building

Table 4

3.4 Key personnel

3.5 Recruitment, training and promotions
1.1.3. Recruitment
Recruitment is the overall process of identifying, sourcing, screening, shortlisting and
interviewing candidates for jobs within the organization.

The technique employed in recruiting personnel is employee referrals, it is both popular and
effective to hiring new employees as it encourages existing employees to refer people in their
professional and personal networks.

And one of its many benefits is that usually, the referred candidate gets the job and the employee
who referred them gets a reward or bonus.

Whereby, this incentivizes them to promote them to promote the job opening in their network
and encourage qualified professional to apply.

Another benefit of employee referral programs is converting existing employees into brand
ambassadors for your organization.

17 | P a g e
This approach is also very cost effective and ensures that many candidates with relevant skills
and profiles apply for the job.

When they promote a job opening in their network, their peers become more likely to apply for it
because it comes because it comes from a trusted source.

1.1.4. Training
Training is the action of teaching a person or an animal a particular skill or behavior.

Employee training methods refer to the various approaches and techniques used to educate and
develop employee’s skills, knowledge and competencies.

Usually, meant to enhance employee’s job performance, job satisfaction, and overall
effectiveness within an organization.

On the job training is the technique to be employed by the proposed business, as it enables active
participation for employees by allowing them to learn in the flow of work.

According to the 70-20-10 model, 70% of employee learning comes from work experiences, so
on the job training should be part of my training program.

And the reason as to why I chose this method is because

I. it leads to better results as it is easier for employees to learn while working on a project
themselves.
II. Training employees on the job saves money spent on costly off site training programs.
III. Employees pick up new skills without disrupting their daily routines and productivity.

1.1.5. Promotions
Promotion refers to any type of marketing communication used to inform target audiences of the
relative merits of a product, services, brand or issue, persuasively.

18 | P a g e
Promotion is the advancement of an employee to a higher job involving more work, greater
responsibility and higher status.

The technique to be employed by the proposed business will be promotion based on merits of the
employee as it is a growing business and this method will propel the business to the next level as
its advantages are;

I. It motivates the employees to perform better as promotions are based on merits.

II. The management is able to retain competent employees as they are eligible for
promotions based on merits.
III. Leads to increased productivity in the organization.

3.6 Remuneration and incentives

1.1.6. Remuneration
In order to motivate and maintain my most competent employees they will receive bonuses on
their salary but fairly as it matches their previous contribution to the business

1.1.7. Incentives
The employees who will go above and beyond for my proposed business such as working
overtime and bringing in astonishing results they will receive bonuses on their salary, receive
overtime payment and allowances.

Title Salary Allowance

Manager 15000 6000
Accountant 5000 5000
Secretary 5000 4000
Cleaners 5000 2000
Web designer 10000 1000
Table 5

19 | P a g e
3.7 Licenses, permits and by-laws
1.1.8. Licenses
The first thing I will start with is get a registration certificate which goes for around ksh 10000,
then I will get an NSSF and NHIF registration for the welfare of my employees whereby initial
payment is ksh 1500, which covers three months, with subsequent monthly payments of ksh 500.

After that I will get a KRA Pin Registration to indicate that I comply with the tax regulations.

1.1.9. Permits
Once my business is registered and I have secured the necessary social and healthcare
registrations, I will need a legal business permit, whereby where I will be located it will be ksh
15000.

And I will acquire the permit from the Communications Authority of Kenya.

1.1.10. By-laws
The reasons why my business needs to comply with the by-laws is because;

I. To avoid lawsuits.
II. To reduce the risk of fines and penalties for violations.
III. To maintain a better public image.
IV. To enhance customer trust.
V. To create uniformity in the marketplace.

3.8 Support services

My business will require the following support services;

I. Banking services
II. Insurance services
III. Consultancy
IV. Legal services

20 | P a g e
 1.1.11. Banking services
My business will open up a bank account and register using Equity bank, Ruaraka branch and it
can be reached using the following details [email protected], (020) 274-4000 and the
account will be used to hold the company’s assets and generated income.

1.1.12. Insurance services

The firm my business is looking forward to be insured by is Walton Insurance Agency and it can
be reached through the following credentials [email protected] , call 0700296850 and
the purpose of it will be to insure the whole business and employees.

1.1.13. Legal services

The legal firm the business will follow is Begi’s Law offices and Chambers BLOC which their
services will be useful when writing contracts, drafting legal letters, interpreting labor laws and
deployment and others. Ruth Okara, Bishop’s Gardens Towers, 1st Ngong Avenue, 2nd floor.

1.1.14. Consultancy services

Concerning consultancy, my firm will consult SMD Consulting Associates in Nairobi, on issues
concerning the law and how to properly navigate it and also on asset management.

21 | P a g e
 4 CHAPTER FOUR: PRODUCTION/OPERATION PLANS
1.1. Production facilities and capacities
The facilities required by the proposed business an office with 2 rooms, furniture, a plotter, a printer,
power, 4 desktop computers, internet connection, a store.

1.1.1. Machinery, tools and equipment

Item Quantity Cost Capacity
Cubicles 2 rooms 20,000 4 personnel
Store 1 room 5,000 Able to hold cleaning
tools
Furniture 1 set 18,000 10 seater
Plotter 1 60,000
Printer 2 34,000
Electricity 1 phase 15,000 1200 kw
Desktop Computers 4 125,000
Internet Connection 2 7,000 150 mbps
Water 30 litres 300 6 personnel
Table 6

22 | P a g e
 1.1.2. Firm layout

Receptionist

Figure 5

1.2. Production strategy and Service strategy

The proposed business mainly deals with services than products and the method of producing the
services such as web designing is manually and the total cost of creating a fully functioning website is
25,000 ksh and when it comes to modifying and repairing it comes to 7000 ksh.

With the ever-growing rise in artificial intelligence, the smart way of coping with this is to accept it and
using it to our advantage as they’re sites which can make a website with little or no experience in coding
but this is a silver lining as with the use of artificial intelligence it will be easier and faster to develop
websites which are more-better and hence my services will be top notch.

My workers will need to have an in-depth knowledge on software engineering, be well informed on
website development languages, and also integrity in order to create a conducive work environment.

23 | P a g e
 1.1.3. Cost of material
The proposed business will require 4 desktop computers, 2 Wi-Fi routers, a plotter and a printer and my
supplier will be Dove computers located at Kimathi-street, City estate, Nairobi +254 714 752 979.

The cost will be ksh 244,000.

1.1.4. Cost of labor

My workers will be paid on a monthly basis and the total cost of labor will be ksh 40,000

1.1.5. Overhead cost

1.1.6. Total cost of production
2. The monthly production cost for all the products and services will be 25,000 ksh for production,
7000 ksh and copier pages to be used by the printer and A1 size pages for the plotter where the
total cost comes to around ksh 349,000.

3.8.1 Production process

The proposed business plan focuses on services more than products since it is a web-designing kind of
business.

And the method to be employed is Just-In-Time as a client reaches out for my services and after they
have made clear what they are in need of. Then will I start building up their website.

The requirements is an internet connection and a state of the art desktop or laptop and the appropriate
skillset.

The external factors that may affect the production process is Technological advancements as there is
use of artificial intelligence in making simple websites and the best way to curb this is to make even
better websites with the help of AI as it production will be much faster and this will keep me relevant in
the industry.

Another external factor is economic fluctuations like interest rates and since I cannot control the market
what I will do is when the cost of materials needed goes up so does the cost of my services but in a
sense that clients can afford them.

24 | P a g e
 1.3. Regulation affecting operations

3.8.2 Health laws

The proposed business will adhere to all health regulations such as providing a clean, conducive work
environment and all employees will be held to a high standard in account for their health such as to
avoid littering in the workplace, no eating in the workplace areas etc.

3.8.3 Environment laws

Since it is a services type of business, there won’t be much of an interaction with environment, since
machines are used when the need to dispose them occurs it will be done in an environmentally friendly
manner such as recycling.

The proposed business will be in tune with the regulations set by the National Environment
Management Authority.

3.8.4 Employees, safety rules and regulations

When handling heavy equipment, the staff will be provided with gloves, and there will be an air
conditioning system to minimize the heat generated by the machines, which will also be in favor of the
employees.

And all employees will be insured by a life and health insurance agency.

25 | P a g e
5 CHAPTER FIVE: FINANCIAL PLAN
5.1Pre-operation cost
Item Cost
Licenses 27000
Advertisement 7000
Recruitment 1500
Rent deposit 18000
Installations 8000
Utility bills 15000
Land and buildings 15000
Equipment 244000
Insurance 3000
Total
Table 7

5.2Working capital
Items Amount
Current Assets Values
Cash in hand 280000
Stock 240000
Total current assets 520000
Current liabilities Amount
Cash in bank 100000
Total current liabilities
Working capital
Table 8

26 | P a g e
 Cash flow projection
5.3.1 Cash flow projection for the year 2025
Items Jan Feb Mar April May June July Aug Sep Oct Nov Dec
Bal c/d 75333 78516 81549 101632 114915 145798 161401 184714 214097 211230 240813
Cash inflows
Loan 10000
0
Sales 50000 65000 70000 85000 80000 95000 90000 85000 90000 95000 98000 99000
Debtors 30000 4000 4500 5000 2000 3500 1000 1500 9500 8500 3500 4000
Discount 15000 3500 800 2500 5000 4500 1500 2500 3500 500 1500 2500
reserved
Total cash 19500 147833 153816 174049 188632 217915 238298 263901 287214 318097 314230 346313
inflows 0
Cash outflows
Purchases 20000 35000 55000 30000
Salaries 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000
Creditors 2000 1500 4000 5500 2500 3000 2000 10000 8500 9000 4500 9500
Discounts 500 1500 2000 1500 1400 2500 3500 3000 4000 4500 2800 3000
allowed
Electricity 400 450 500 800 500 600 650 600 550 450 500 600
bills
Loan 4167 4167 4167 4167 4167 4167 4167 4167 4167 4167 4167 4167
repayment
Insurance 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Transport 500 450 400 350 450 550 330 320 300 250 200 500
Advertisemen 4000 4000
t
Licenses & 27000
permit
Rent 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000
Water bills 100 250 200 400 550 300 250 100 150 200 230 150
Total cash 11966 69317 72267 72267 73717 72117 76897 79187 73117 106867 73417 78977

1|Page
outflows 7
Net-cash 75333 78516 81549 101632 114915 145798 161401 184714 214097 211230 240813 267336

Table 9

2|Page
 5.3.2 Cash flow projection for the year 2026
Items Jan Feb Mar April May June July Aug Sep Oct Nov Dec
Bal c/d 267336 131069 73302 191035 265318 378051 505784 579017 707850 819698 941516 1068349
Cash inflows
Loan
Sales 65000 105000 185000 180000 180000 195000 190000 195000 180000 185000 195000 110000
Debtors 5000 2000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Discount 1500 2000 3000 3000
reserved
Total cash 338836 143569 261302 376035 448318 576051 701784 777017 890850 1010683 1139516 1181349
inflows
Cash outflows 35000 40000 50000 50000
Purchases
Salaries 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000
Creditors 2000 2000 2000 2000 2000 2000 2000 2000 2000
Discounts 1000 1000 1000 1000 1000 1000 1000 2000 2000 2000 2000 2000
allowed
Electricity bills 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Loan 4167 4167 4167 4167 4167 4167 4167 4167 4167 4167 4167 4167
repayment
Insurance 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Transport
Advertisement 4000 4000
Licenses & 27000
permit
Rent 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000
Water bills 500 500 500 500 500 500 500 500 500 500 500 500
Total cash 136267 70267 70267 110717 70267 70267 122767 69167 71167 69167 71167 71167
outflows
Net-cash 131069 73302 191035 265318 378051 505784 579017 707850 819683 941516 1068349 1110182

Table 10

3|Page
 5.3.3Cash flow projection for the year 2027
5.3.1 Items Jan Feb Mar April May June July Aug Sep Oct Nov Dec
Bal c/d 1110182 994682 1005182 1035682 990182 1042682 1083182 1112182 1241682 1373182 1389682 1424182
Cash inflows
Loan
Sales 80000 80000 100000 100000 120000 110000 190000 200000 2000000 180000 200000 210000
Debtors
Discount 5000 2000 2500 5000 5000 2500
reserved
Total cash 1195182 107468 1105182 1137682 111018 1152682 1275682 1312182 1441682 1558182 1594682 1636682
inflows 4 2
Cash outflows
Purchases
Salaries 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000
Creditors
Discounts 5000 5000 5000 3000 3000 5000 5000 5000 3000 3000 5000 5000
allowed
Electricity bills 1000 1000 1000 1000 1000 1000 1000 2000 2000 2000 2000 2000
Loan
repayment
Insurance 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Transport 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
Advertisement 4000 4000
Licenses & 27000
permit
Rent 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000
Water bills 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Total cash 200500 69500 69500 147500 67500 69500 163500 70500 68500 168500 170500 160500
outflows
Net-cash 994682 100518 1035682 990182 104268 1083182 1112182 1241682 1241682 1389682 1424182 1476182
2 2

Table 11

4|Page
3.9

5|Page
3.10 Pro-foma income statement

Items 2025 2026 2027

Sales 1,002,000 1,770,000 1,965,000
Cost of sales 500,000 400,000 450,000
Gros profit 1,465,000 1,370,000 1,515,000
Expense
Salaries 480,000 480,000 480,000
Licenses and permits 27,000 27,000 27,000
Utility bills 9280 29,000 18,000
Insurance 36,000 36,000 36,000
Advertisement 8,000 8,000 8,000
Total expenses 560,280 560,280 560,280
Net profit before tax 904,720 809,720 954,720
Provision for tax 90,472 80,972 95,472
Net profit after tax 814,248 728,748 859,248
Table 12

3.11 Break-even point

Particulars Amount
Fixed cost
Rent 18,000
Salaries 40,000
Insurance 4000
Licenses and permits 27,000
Loan repayment 4167
Variable cost
Advertisements 4000
Electricity 1000
Water bill 1000
Transport 1500
Discount allowed 5000
Purchases 20,000
Total variable cost 32,500
Table 13

1|Page
3.12 The balance-sheet statement of the year 2025,2026,2027
Item Amount
Current assets
Cash at hand 280,000
Stock 140,000
Total current assets 420,000
Fixed assets
Computers 104,000
Furniture’s and Machinery 140,000
Total fixed assets 244,000
Current liabilities
Creditors 20,000
Bank overdraft 100,000
Total current liabilities 120,000
Table 14

3.13 Total contribution

Total contribution= sales -variable cost

= 210,000-32,500

=177,500

1.1.1. Contribution margin percentage

=(total contribution/sales)*100

=177,500/210,000*100

=84.52%

1.1.2. Total fixed cost

=18,000+40,000+4,000+27,000+4167

=93,167

1.1.3. Break-even point

=fixed cost/contribution margin

2|Page
=93,167/84.52

=110,230.71

The break even point will be reached on June the first year.

3.14 Profitability ratios

1.1.4. Gross profit ratio
Gross profit ratio= (g.p/sales)*100

2025

=(1465000/1002000)*100

=146.21%

2026

=(1370000/1770000)*100

=77.40%

2027

=(1515000/1965000)*100

=77.1%

1.1.5. Net profit ratio

=(n.p/sales)*100%

2025

=(814248/1002000)*100

=81.26%

2026

=(728748/1770000)*100

=41.17%

2027

=(859248/1515000)*100

=56.72%

3|Page
 1.1.6. Return on equity
=(n.p/owners equity)*100

2025

=(814,248/520000)*100

=156.59%

2026

=(728748/520000)*100

=140.14%

2027

=(859248/520000)*100

=165.24%

1.1.7. Return on in investment

1.1.8. Asset turnover
=sales/assets
420000-244000
=176000
1.1.9. Quick ratio

=(current assets-closing stock)/current liabilities

=(420000-244000)/120000

=1.47%

1.1.10. Liquidity ratio

=current assets/current liabilities

=420000/120000

=3.5%

4|Page
3.15 Desired financing
The desired financing shows the amount that the business should possess for investing if the business
worked as planned.

Item Amount
Pre-operational cost 375000
Working capital 144200
Total 520000
Table 15

3.16 Proposed capitalization

Item Amount
Owners’ contribution 180000
Borrowed funds 100000
Friends’ contribution 240000
Total investment 520000
Table 16

5|Page