BUSINESS PLAN

TITLE: KEVIN'S ELECTRICAL ENTERTPRICE

PRESENTER: KEVIN WANGA OMUSULA

INDEX NUMBER: 6161041211

COURSE CODE: 2601

COURSE: DIPLOMA IN ELECTRICAL AND ELECTRONIC ENGINEERING(POWER

OPTIONS)

SUPERVISOR: MR.KIBIWOT

EXAM SERIES: JULY SERIES

PRESENTED TO KENYA NATIONAL EXAMINATION COUNCIL IN PARIAL

FULFILMENT FOR THE AWARD OF DIPLOMA IN ELECTRICAL AND

ELECTRONIC ENGINNERING (POWER OPTION)

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2
 DECLARATION
I declare that this is my original work and it has never been presented by anyone else for the
purpose of examination

NAME OF STUDENT: KEVIN WANGA OMUSULA

SIGNATURE__________________

DATE_________________

SUPERVISOR _____________________________

SIGNATURE_______________________

DATE _______________________________

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ACKNOWLEDGMENT

I sincerely want to thank my friends and classmates who contributed to the collection, writing
and printing of this work
I also want to thank my supervisor Mr. Kibiwot for the guidance and encouragement to the
success of my business plan.
Also to my brother Joel who helped me in financial support for printing and research of the plan.

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DECLARATION........................................................................................................................................i
ACKNOWLEDGMENT...........................................................................................................................ii
EXECUTIVE SUMMARY........................................................................................................................iv
1.0 BUSINESS DESCRIPTION.............................................................................................................iv
CHAPTER ONE........................................................................................................................................1
1.0 BUSINESS DESCRIPTION...........................................................................................................1
1.1 BUSINESS NAME AND ADDRESS........................................................................................1
1.2 FORM OF OWNERSHIP...............................................................................................................1
1.4 BUSINESS LOCATION.................................................................................................................1
1.5 PRODUCTS AND SERVICES.......................................................................................................2
1.6 GOALS OF THE BUSINESS.........................................................................................................2
1.7ENTRY AND GROWTH STRATEGY..........................................................................................3
CHAPTER TWO.......................................................................................................................................4
MARKETING PLAN............................................................................................................................4
2.1 POTENTIAL CUSTOMERS..........................................................................................................4
2.2 COMPETITION..............................................................................................................................4
2.3 PRICING STRATTEGY................................................................................................................4
2.5 METHODS OF PROMOTION AND ADVERTISING................................................................5
2.6 DISTRIBUTION STRATEGY..........................................................................................................5
2.7. MARKET SHARE...........................................................................................................................5
CHAPTER THREE...................................................................................................................................6
3.0 ORGANISATIONAL PLAN..........................................................................................................6
3.1 ORGANISATIONAL STRUCTURE.............................................................................................6
3.2 PERSONNEL AND QUALIFICATION........................................................................................6
RECRUITMENT TRAINING AND PROMOTION..........................................................................7
SALARY AND INCENTIVES.............................................................................................................8
LICENCE PERMITS AND BY LAWS...............................................................................................9
SUPPORT SERVICES..........................................................................................................................9
CHAPTER FOUR...................................................................................................................................10
4.0 PRODUCTION/OPERATIONAL...............................................................................................10
4.1 PRODUCT/SERVICES DESIGN AND DEVELOPMENT.......................................................10
4.1 a) product/service design...............................................................................................................10

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 4.3 PRODUCTION/OPERATION PROCESS..................................................................................13
4.4 PRODUCTION AND OPERATION STRATEGY.....................................................................13
4.5 regulations affecting operations.......................................................................................................13
CHAPTER FIVE.....................................................................................................................................15
5.0 FINANCIAL PLAN.......................................................................................................................15
5.1 PRE-OPERATIONAL COST.......................................................................................................15
5.2 WORKING CAPITAL..................................................................................................................16
5.3 PROJECTED CASHFLOW STATEMENT...............................................................................17
5.4 PROJECTED INCOME STATEMENT......................................................................................18
5.5.PROFORMA BALANCE SHEET AS AT 1ST JAN 2027............................................................19
5.6 BREAK EVEN LEVEL ANALYSIS............................................................................................20
5.7 DESIRED FINANCING................................................................................................................22
5.8 PROPOSED CAPITALISATION................................................................................................22

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EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The business will be Kevin's Electrical Enterprise and it will be located in Mumias town,
sabatia, mumias Road, uchumi plaza . The owner of the business will be KEVIN OMUSULA.
Its starting year is 2027. The business will operate on daily basis.
The main customers of the business will be st,,mary's secondary school, general public and major
residents of mumias town. The business average monthly sales of the product and services will
be approximately 250000. The business will have competition from p, jay Electricals.
The shop attendant will be in charge of all the employees. Employees will be trained based on
qualifications e.g customer care skills, accounts and procurement. Motivation of employees will
be through salary increment, loam tea and end year party.
1.2 MARKETING PLAN
It deals with the marketing plan which shows the potential customers, it explains the market
share. It also explains the competitor’s strength and weaknesses and ways of competing with
them, the method of promotion and advertisement, the pricing strategy, the market demand and
the distribution strategy under distribution of products and services.
1.3 MANAGEMENT PLAN
This shows organization plan which shows how the positions will be shared from the manager to
the lower level, it shows the organization structure, and their roles, recruitment of the staffs,
training, motivation and promotion of staffs .
1.4 OPERATIONAL PLAN
The shop attendant will be in charge of all the calls and delivery services. Other online platforms
will be used to order other products. Custom designing of electrical installation that are offered
in the business has certified numerous customers and users thus this makes the business unique.
1.5 FINANCIAL PLAN
This deals with financial plan which shows the pre operational cost to be incurred before
commencing of the business. It also involves estimation of the working capital including looking
at assets and liabilities, preparations of the cash flow projections, break even points, the desired
financing and the proposed capitalization.

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CHAPTER ONE
1.0 BUSINESS DESCRIPTION
The business will be Kevin's Electrical Enterprise and it will be located in Mumias town,
sabatia, mumias Road, uchumi plaza . The owner of the business will be KEVIN OMUSULA.
Its starting year is 2027. The business will operate on daily basis.
The main customers of the business will be st,,mary's secondary school, general public and major
residents of mumias town. The business average monthly sales of the product and services will
be approximately 250000. The business will have competition from p, jay Electricals.
The shop attendant will be in charge of all the employees. Employees will be trained based on
qualifications e.g customer care skills, accounts and procurement. Motivation of employees will
be through salary increment, loam tea and end year party.

1.1 BUSINESS NAME AND ADDRESS

The owner chose the name of the business to be Iten Electronic Enterprise.
Email address: omusulakevo8@gmail
Contact: 0792650198
Address: Kevin's Electrical Enterprise
P0 box 81 Butere
The name of the business creates a friendly atmosphere. It enables the justifying time and money
invested. It is one of its kind.
1.2 FORM OF OWNERSHIP
The business will be solely owned by KEVIN OMUSULA . This form of business ownership is
advantageous. One can make decisions on her own. He will be her own boss. He will keep
secrets and profits by himself from her business.
The owner of the business will contribute fund from her personal savings account which is
percent from the total investment.
1.4 BUSINESS LOCATION
The business entity will be located in Ekero town on sabatia road at kimo plaza.
It is located in that place because it has tarmacked road that will facilitate easy transportation. it
is secured for it is nearby police station and county government offices. The area is densely
populated thus the business will run smoothly for the demand will be high.

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1.5 PRODUCTS AND SERVICES

1. Power installation
This will involve electrical installation in houses and big business buildings.
The owner of the business made it easy since all the installation materials will be available.
2. Electrical repairing services
The business will be offering electrical repairs in houses when the problem arises.
3. Maintenance of electrical components
The business will also deal with maintenance of electricity in the buildings. When any electricity
distribution board, junction box or adapter box needs any maintenance, the business can offer
that.
4 Electrical equipment for sale, repair and installation.
I. Cables- there will be cables according to customer’s preference e.g. 2.5mm,
4.0mm and 16mm.
II. Conduits- these are piping that cables run through in a concrete wall. Plastic
conduits will be of 20mm, 25mm ,32mm, 50mm and 150 mm diameters.
III. Fuel/ circuit breakers- this equipment will be of use when the installation is done.
It will disconnect the supply whenever there is a short circuit and it will of 5-6A
IV. Connectors- it will be joining one part to another
V. Switches- it will be of all types i.e. 1-way, 2-way and intermediate types.

1.6 GOALS OF THE BUSINESS

To be self-employed.
To improve the living standard.
To be an international electrical contractor

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1.7ENTRY AND GROWTH STRATEGY
The business will be opened throughout after it has acquired license from the local authority
within the business location. There will be offering of discounts to customers to enable
aggressive marketing and attract more customers.
The business is expected to expand from small scale to large scale after acquiring enough market
and modern technology. Also, for the growth of the business the owner intends to have fair
pricing of its customers and quality products and services. Owner also will introduce use of
modern technology so as to make work easier.
The business will have sign posts to advertise services involved in the business thus it will draw
attention of more potential customers, resulting to growth and more profit to the business.
The business will be advertised in local radio station, this will attract more customers and it will
advantage over the potential competitors who deal with the same business.
Transportation services will be offered to potential customers who comes from far hence this will
attract more customers into the business, this will help the business to maintain

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CHAPTER TWO

MARKETING PLAN
2.1 POTENTIAL CUSTOMERS
The business will have the following as potential customers
I. St Mary's secondary school
II. County government of kakamega
III. Residents of Mumias town
IV. Employees and workers from different sectors within Mumias town
2.2 COMPETITION
The business expects to have stiff competition from the following main competitors;
P-jay Electricals- it is situated 50 km from the business location. It offers the same
services like rewinding motors and servicing them.
COPING WITH COMPETITION
The business will use the following methods to cope up with the competition;
I. Offering of high-quality services. this will be done by cultivating team relationship to
ensure health competition.
II. Meet and create opportunity. This is done by going out and meeting new people. since
people would like to do business with people with a common goal.
III. Setting fair prices that could help and affordable.
2.3 PRICING STRATTEGY
The business will apply the following methods to determine and calculate the price and charges
of the services; operation cost, government policies.
Products and services Charges(cash)

Electricity installation 9000

Installation of conduit pipes 500

Installation of distribution boards 500

Building of back board boxes 1000

Repairing services 1500
Maintenance of electrical equipment 5000

Equipment needed for installation 12000

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2.5 METHODS OF PROMOTION AND ADVERTISING
The business will use the following methods to advertise its services and products;
I. POSTERS
The business will use posters by making posters containing the services, prices, discounts
and offers of the business. these posters will be placed along highway and within busy
towns like Iten and kapsowar. It will cost the business 1800 per month making the
posters.
II. SOCIAL MEDIA
Facebook, Twitter, Instagram will be used to advertise the business services. This is by posting
the kind of services it offers and its cost and discount. this platform will cost around sh. 2000 per
month.
III. LOCAL RADIO STATION
West and Nyota fm are the local radio station within the business locality. Thus, the local will be
used to advertise the services and contacts of the business which will cost sh.3500 monthly.
2.6 DISTRIBUTION STRATEGY
The business will deliver its services direct where services are needed. The business will use its
vehicle to transport the raw materials from the premises to the market. Since the business is
located in place where most roads are untarmacked it will encounter problems as it will be
impassible during rainy season, this will make the business to use the other means like hiring
local transporting services e.g. motorbikes to transport products.
2.7. MARKET SHARE
The business expects different number of customers depending on the economic status of the
time. The number ranges from 20-30 per month. the peak sales of the business are in the month
of April, august, September, October, November and December while the ret months there is low
sales in the business.

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CHAPTER THREE
3.0 ORGANISATIONAL PLAN
3.1 ORGANISATIONAL STRUCTURE

MANAGER

SHOP ATTENDANT 1 SHOP ATTENDANT

2

3.2 PERSONNEL AND QUALIFICATION

1. MANAGER
Qualifications
a. Should be 18 years and above
b. Should have a certificate in electrical and electronic engineering
Duties and responsibilities
a) Make decisions
b) Formulate and administers the organizational policies
c) Coordinates formulates the activities of the business
d) supervises the employees
I.3 OTHER PERSONELL
i. Shop attendant 1
ii. Shop attendant 2
Qualifications
Should be 18 years and abore
i. Should have a certificate in supply
ii. Should have at least 2 years of experience
Duties and responsibilities
a) General cleaning of the business
b) Advertise the prices of products and services to customers
c) Attending to the customers

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 d) Offer transport services to the customers

RECRUITMENT TRAINING AND PROMOTION

A. Recruitment
Vacancies in the business will be announced through posters and oral communication and those
who meet the qualification will go through an interview that will be done by the manager and his
hired panel, and the qualified interviewee will be employed permanently.

B. Training
Owner will go training like taking a course in
 Accounts
 Procurement
All employees must go through induction which will involve the following
 Attending shows and exhibitions – this will enable then=m gain new ideas and have a
chance to experts in the field
 Customer care services – being trained how to handle customers will enable them
understand and pay attention to customer needs.
Promotions
The business will use the following to promote employees
Annual salary increment
Good responsibility such as
Punctuality. Hardworking
Dressing code. Honesty
Cleanliness. Loyalty

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SALARY AND INCENTIVES
A. Salary structure
Position Ksh. Per month

Manager 20000

Shop attendants 12000

Work technician 15,000

B. Incentives
The business will us the following means to encourage employees
 Advance salary
 Commission by big sales
 Issuing employees with protective devices

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LICENCE PERMITS AND BY LAWS
LICENCE/PERMITS ORGANISATION FEE
PIN KENYA REVENUE 500
AUTHORITY
BUSINESS Registration of business 2000
REGISTRATION society
NAME Registration of corporation
BUSINESS society 1000
REGITRATION

BUSINESS LICENSE 1 TEN 5000

PUBLIC HEALTH CARE
BUSINESS LICENSE Kakamega County 4500

NHIF KCB 500

PAYE KCB 400
NSSF KCB 400

CERTIFICATE OF Criminal Investigation 1000

GOOD CONDUCT Department

SUPPORT SERVICES

Bank kcb HEN BRANCH

Water Chebara Dam
Electricity Kenya Power and Lightening Company
Security GS Security
Internet services Safaricom

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CHAPTER FOUR
4.0 PRODUCTION/OPERATIONAL
4.1 PRODUCT/SERVICES DESIGN AND DEVELOPMENT
4.1 a) product/service design
The service offered by the business allows the person to make a call without physical presence.
The shop attendant will be in charge of all the calls and delivery services. Other online platforms
will be used to order other products. Custom designing of electrical installation that are offered
in the business has certified numerous customers and users thus this makes the business unique.
4.1 b) office premises layout

display RECIEVIING DESK WASH

ROOMS

Shop
attendant
office MANAGERS
OFFICE

4.1 C) quality control

The business will consider a quality program so as to put substantive effort into fostering loyalty
of the customers. However, provision of support services will be offered to customers in order to
help solve issues that they may have.
There will be testing of the products used in implementing the service before its given to the
customers .

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4.2 a) production / operation facilities
Quantity Item description Unit cost Total cost

6 Workshop tables 3,000 18,000

4 Office files 500 2000

6 Office chairs 4,500 30,000

2 Desktops 15,000 30000

1 Bench 1200 1200

10 Floating switches 600 6000

200 Capacitor stator 1000 200000

10 Conductor 800 8000

2 Copper wires 1000 2500

100 Insulation tapes 4000 5000

1 Red copper cables 1200 2500

5 Helmet 350 700

1 Electric drill 400 5000

2 Screw driver 500 1000

1 Multimeter 2000 1500

5 Allan keys 200 1000

10 Ball hammer 500 350

20 Pliers 2000 1800

3 Full electric toolbox 150,000 120,000

TOTAL 215750 252100

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2 c) operational expenses for the 1st month
Expenses Amount Ksh

Rent 7000

Salaries/wages 70000

Water 2000

Electricity 3000

Telephone 2000

Stationery 1000

Transport 5000

Advertising 4000

Security 3000

Licenses 10100

Repair/maintenance 5000

Office expenses 9000

Insurance 3000

TOTAL 124100

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4.3 PRODUCTION/OPERATION PROCESS
The business will follow the following steps in its daily operation
Step 1
Customer will be welcomed by the shop attendant and his/her request attended to
Step 2
The shop attendant will confirm with the owner to find out if the service requested is available.
Step 3
If the service is available the customer will be directed to the owner of the business to negotiate
the price of the service offered
Step 4
The owner will calculate the price for the material needed for the service
Step 5
The owner after they have agreed the price of the service, she will decide the mode of payment
Step 6
Customer will give out some down payment for the service to start and also purchase some of the
materials needed
Step 7
The customer will then wait for the job to get finished before handling over to him/ her, after the
customer has confirmed that the installation is good, he/she will have to finish the payment that
remained before taking the full installation of the house.
4.4 PRODUCTION AND OPERATION STRATEGY
Average monthly raw material requirements = 773000
Average monthly operation expenses = 70,000
Average monthly production and operational cost = 913000
4.4 b) average monthly production/operations capacity
4.5 regulations affecting operations
The owner of the business will ensure it will be operated accordingly to the current government
regulations that will affects its operations e.g.
The business licencing act
The Kevin's electrical enterprise business will be legally registered with the registrar of the
business act in accordance to the rules and regulations of the business.

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Public health act
The business will ensure neatness and tidiness of the shop and its surrounding as per the
standards set by the public health regulations. The business will have toilets and bathrooms to
enhance cleanliness
Compulsory salary deduction
The business will follow the governments set standards on salary deduction to the business
laborers to avoid fine set by the government
Employment act
The business will employ its employees according their level of education and age as per
regulations set by the government act. It will also consider the experience of the person on
different field
Environmental regulations
The business will ensure its location and the condition as per the environmental regulations; thus,
ensuring conservation of the environment as per the regulations.
Kakamega county by laws
The busines will follow in order the laws and regulations of the county government of the above-
mentioned county to the latter.

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CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1 PRE-OPERATIONAL COST
QUANTITY ITEM DESCRIPTION TOTAL COST

2 Desktops 20000

10 Floating switches 6000

10 Conductors 8000

200 Capacitors stators 20000

2 Copper wires 2500

100 Insulation tapes 5000

1 Red copper cables 2500

5 Helmet 700

1 Electric drill 5000

2 Screw drivers 1000

1 Multimeter 1500

20 Plie 1800

3 Electric toolbox 120000

TOTAL 252100

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5.2 WORKING CAPITAL
ITEMS TOTAL COST

Insulation tapes 500

Capacitor stators 20000

Rent 7000

Salary/wages 70000

License/ permits 10000

Advertisement 4000

Repair/maintenance 5000

Telephone 2000

Water 2000

Electricity 3000

Transport 5000

Insurance 3000

Office expenses 9000

Miscellaneous 3000

TOTAL 150500

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5.3 PROJECTED CASHFLOW STATEMENT
Year 1 Year 2 Year 3

Beginning cash 3935450 4328995 4761894

Cash inflow 1235000 13585000 1494350

Total cash inflow 4748768 5223644 5746009

Purchases 592405 651645 716810

Rent 84000 27720 84000

Salaries and wages 840000 924000 1016400

Repair and maintenance 60000 66000 72600

Telephone 11200 12320 13558

Water 14500 15950 17545

Electricity 10300 10813 11896

License and permits 10000 10000 10000

Transport 9700 99770 109747

Insurance 3000 3000 3000

Total cash out 1174952 1292447 1421691

Net cash 3573816 3931197 4324317

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5.4 PROJECTED INCOME STATEMENT
Year 1 Year 2 Year 3
sales 3916819 4308500 4739350

purchases 1617660 1779426 1957368

Gross profit 2102106 2312316 2543548
expenses
Rent 84000 84000 84000
Salaries and wages 840000 840000 840000
Advertisements 48000 48000 48000
Repair and 60000 66000 72600
maintenance
Telephone 11200 11200 11200
Water 14500 15950 17545
Electricity 10300 11330 12463

License and permits 10000 10000 10000

Transport 90700 90700 90700
Insurance 3000 3000 3000
Cleaning services 38000 41800 45980
Office expenses 25200 26460 29106
Total expenses 1211935 1333128 1466441
Net profit before tax 3908505 42993555 4514322
Provision of tax 390850.5 429935 472928
10%
Net profit after tax 3517655 3869420 4256362

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5.5.PROFORMA BALANCE SHEET AS AT 1ST JAN 2027
PROFORMA BALANCE SHEET AS AT 31ST DEC 2022
Long term liabilities Fixed assets

Loan = Total loan repayment Machine, tools and equipment

Short term liabilities Current assets

Provision for tax 10% = 390850 Stock = 592405

Creditors = 3775371 Net cash for Dec = 3573816

Debtors

4166221 4166221

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5.6 BREAK EVEN LEVEL ANALYSIS
1) Total contribution margin = total sales – total variable costs
3916819 – 1211935 = 2704884
2) contribution margin percentage
Total contribution margin x 100
Total sales
2704884/3916819 x 100
=69.06%
3) Break-even level
Total fixed cost
contribution margin
103200/69.06
=14943.53
PROFITABILITY RATIOS
a . Gross profit percentage
Total gross profit x 100%
Total sales
2102106x100
3916819
=0.536687
= 53.6687%
a. Return on equity
Total net profit after tax x 100%
Owners’ equity

3713080x 100
402600
= 922.275

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 a. Return on investment
Total net profit after tax x 100%
Total investment
3713080 x 100
150500
= 2467.16
b. Return on sales
Total net profit after tax x 100
Total sales

3713080 x 100
3916819
=0.94798 x 100
= 94.7983

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5.7 DESIRED FINANCING
It is the amount of money required to start the business
PARTICULARS AMOUNT

Pre operational 252100

Working capital 150500

TOTAL 402600

5.8 PROPOSED CAPITALISATION

SOURCES AMOUNT

Bank loan 100000

Personal Savings 50000

Family Contribution 100000

TOTAL 250000

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