CHAPTER TWO
2.0 BUSINESS DESCRIPTION
2.1 Background of the owner
The name of the owner of the business is Doris Njoki aged 22 years, and a student of Thika
Technical Training Institute undertaking a diploma in applied biology course and a resident of
Kabi town.
BUSINESS NAME
Name of the proposed business will be Doris Animal Feeds. The name Doris Animal Feeds was
derived from my name, the business is scheduled to commence its operation in January 2022.
2.3 BUSINESS LOCATION AND ADDRESS
The business will located at Kabi Town Transzoia County.
The business address will be follows :
P.o Box 2878 Transzoia.
EMAIL:
[email protected].
Contact :0706174791.
The reason why I choose Karara street is because of good infrastructure and good security
to operate my business.
2.4 FORM OF OWNERSHIP
Doris Animal feeds is a startup principal officer who will be investing significant amount of their own
capital into the company and will also be seeking a loan to cover start-up costs and future growth.
2.5 TYPES OF BUSINESS
The enterprise will be a sole proprietor business type.
2.6 PRODUCT AND SERVICE
Product
The Animal feeds business will in its initial stages sell Animals feeds to farmers, schools,
college and retail shops in the region. Future expansion will see the farm see animal feeds to
other animal feed retailers at a wholesale price.
Service
Services to be offered by the business will include processing, packaging and marketing of
the farmers'meat. In addition, the business will incorporate Livestock farming consultancy to
nurture young and upcoming farmers in the region.
2.7 INDUSTRY
The proposed Animal feeds business under the agricultural sector will specifically major on
selling of animal feeds.This kind of production will necessitate the use of modern technology
from production management, thus leading to quality products. The business will start by
employing a maximum of three employees which is subject to increment as the business
expands.
(a) Industry size
The number of competitors in the industry will increase at an alarming rate due to the
freedom to enter the industry and promising future of the industry. It is characterized by the fair
returns as indicated by survey of sales conducted for different animal feeds.
(b) lndustry is characterized by a growing trend with a very high rate of growth,with the
release of Youth Fund and Government Commitment to improve the economy.
(c) Industry Characteristics
>Capital requirement:Amount of capital required depends on the size of the business one is
intending to start. If the owner wants to engage in a wide range of products it will require a large
sum of capital.
>Technology :Initially many furniture makers used conventional methods and tools but
changes in technology have led to the introduction of smoothers, planners and interlocking
machines which have increased production.
>Distribution :Chain of distribution in this industry flows from manufacturer to consumer
mostly using two types of channels.
2.8 JUSTIFICATION OF OPPORTUNITY
Doris Animal Feeds is to be located in strategic areas with a huge population mostly living
in the outskirts of Kabisa town Transzoia County which offer a high demand of the dairy
products. This will provide a suitable market for the business. In addition it will be located close
to a number of retail shops which adds to the already existing market this guarantee's a positive
return on the initial investment. Land as a factor of production is also readily available which in
turn support the company 's vision to expand. Resources and materials needed will be sourced
from reliable sources and this minimizes costs associated with transportation. A good network of
road both tarmac and murram, water and electricity are also available. The business will also
benefit the country government as it will create employment (direct and indirect) and therefore
reducing the number of individuals who are unemployed. This way the business will in long run
raise the living standards of the local community.
2.9 Goals and Objectives
To increase its market share
The business will aim at increasing its market share from the expected 25% in February
2022 to 32% in December 2022, by providing quality and timelines of services by instituting
procedures that will avoid delayed schedules to build up a reputation of better quality services.
Maximum profit
The business will aim to increase its net profits from the budgeted 100,000 in July 2022 to
ksh 120,000 in July 2022.
Diversification
The business intends later to venture into other products like large scale production of
animal feeds.
2.10 ENTRY AND GROWTH STRATEGY
When entering the market, the business conduct a
SWOT(Strength,Weaknesses,Opportunities and Threats) analysis to analyze the strength,
weaknesses, opportunities and threats of the business. This will enable us make maximum
utilization of the opportunities and take advantage of competitors 'weaknesses.
