TECHNICAL UNIVERSITY UNIV ERSITY OF KENYA
NAME EUPHEMIA ATIENO ATIENO SAOLA
REGISTRATION NUMBER 109/05645
TASK BUSINESS PLAN
PRESENTED TO MADAM WANJALA COURSE BACHELOR OF ENGINEERING ELECTRICAL AND ELECTRONICS TELECOMMUNICATIONS OPTION!
1
T"#$% &' C&()%()*
CHAPTER ONE............................................................................................................................3 ONE............................................................................................................................3 Business description................... .....................................................................................................3 Business name name and address................................................... address................................................... ....................................................... ....3 Business Location............................................................................................................................3 Form of Business Ownership............……………………………………………………… Ownership............……………………………………………………………...4 ……...4 Type of business…………………………………………………………………………………...4 Products and Services......................................................................................................................
CHAPTER TWO…..…………………………………………………………………………….! TWO…..…………………………………………………………………………….! "ar#etin$ "ar#etin$ p%an……………..…………………………… p%an……………..………………………………………………………… …………………………………….......! ……….......!
CHAPTER THREE.....................................................................................................................&! THREE.....................................................................................................................&! Or$ani'ation Or$ani'ation and mana$ement p%an……………………………………...………………............&! p%an……………………………………...………………............&! Or$ani'ationa% structure………………………………………………...……………..…………() *emunerations and incentives……………………………..………………………………..…...(3
CHAPTER FOUR ………………………… FOUR …………………………………..…………………… ………..…………………………….…………...(+ ……….…………...(+ Operation,Product Operation,Production ion p%an............................................ ........................................................ .........(+
CHAPTER FIVE........................................................................................................................3) FIVE........................................................................................................................3) Financia% p%an…………………...…………………………………………………………….….3) -ash f%ow proection…………………...…… proection…………………...……………………………… ……………………………………………….......3& …………………….......3&
APPENDI+ A, FORMULAS......................................................................................................3) FORMULAS......................................................................................................3)
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CHAPTER ONE 1-0 BUSINESS DESCRIPTION E.%)2% S33" The number of wor#in$ parents/ inc%udin$ sin$%e/parent fami%ies with both parents emp%oyed is c%imbin$0 creatin$ an ever/$rowin$ need for 1ua%ity chi%d care0 thus 2 wi%% bui%d a business carin$ for them without focusin$ much on academics. That is a home day care. I()&)&( The basic wor# 2 wi%% be doin$ wi%% be carin$ for these chi%dren with much responsibi%ity and serious commitment. 2 wi%% be responsib%e for their safety and we%%/bein$. 2 wi%% a%so p%ay a #ey ro%e in their overa%% deve%opment and may we%% be someone they%% remember in their entire %ives. The open enro%%ment for infant care 5 wee#s 6 3+ months70 Todd%er care ( 8 6 years of a$e7 and Before and 9fter schoo% + years and up7. 1-1 BUSINESS BUSI NESS NAME, NAME , PRECIOUS PRECI OUS MOMENTS CHILD DAY CARE The name of the business wi%% be Precious moments chi%d day care . The name wi%% try to si$nify the type of care that wi%% be offered to the chi%dren. 2t te%%s peop%e about my phi%osophy of chi%d care. 2t is a%so easy to spe%% and to remember. "oreover it isnt an overused name for a chi%d care or simi%ar to any chi%d care center around my business %oca%ity. 1-7 BUSINESS LOCATION LOCATION AND ADDRESS This business wi%% be %ocated at :reenspan estate in ;onho%m area of
o$oo or Outerin$ *oad. -%ients usin$ pub%ic service can access the ma%% from the -entra% Business ;istrict -B;70 usin$ matatus number 33 p%yin$ the >o$oo *oad route and a%i$ht at the -a%te? Fue% Station where you can easi%y $et another that wi%% ta#e you to the entrance of the estate. These ones are number &!,+) that you can pic# from the OT- bus stop or "uthurwa Bus Stop as we%%. 2t wi%% be strate$ica%%y %ocated to serve peop%e around ;ohno%m0 @omaroc#0 @ayo%e and Amoa. This wi%% be a suitab%e %ocation for the day care since the demo$raphic data around the area shows where the future demand wi%% %ie that is maority of the chi%dhood popu%ation is current%y at pre/schoo% a$e0 thus the demand for schoo%/a$e chi%d care services. "oreover the %abour force 3
participation rates of women around this area p%ay a ro%e in determinin$ the need of chi%d care services. Security is a%so ade1uate around the area which wi%% $ive the parents a peace of mind whenever the chi%dren are in the day care.
1-8 FORM OF BUSINESS OWNERSHIP Precious moments wi%% be a partnership business between my husband and 2. This is so because it bein$ partnership it wi%% be re%ative%y easy to start/up that is •
There is %ess paperwor# in comparison to business structures %i#e Trusts and -ompanies7
•
2t wi%% be ine?pensive capita% cost wi%% be shared
•
There wi%% be %ess $overnment interference and re$u%ation at %east in comparison to a -ompany7
•
2t wi%% offer more privacy in comparison to the reportin$ re1uirements of a -ompany7 it bein$ a fami%y business
•
•
There wi%% be %ess need for hirin$ %awyers0 accountants0 and other consu%tants at %east in comparison to a Trust or -ompany7 There wi%% be broader mana$ement base compared to that of a So%e proprietorship70 which a%so means a wider poo% of e?pertise0 shared ris# which can be both $ood and bad7 and more sources of capita%
•
There may be ta? p%annin$ advanta$es such as income sp%ittin$7
1-4 TYPE OF BUSINESS The nature of the business is a start/up #ind. 2t is intended to commence on th >anuary ()&. This is so since it wi%% be the be$innin$ of the year where most chi%dren are be%ieved to start their academic years. 2t wi%% be operatin$ from "onday to Friday. Precious "oments wi%% provide corporate c%ientsC emp%oyees with nurturin$0 innovative chi%d care services for their chi%dren to p%ay0 %earn and thrive throu$hout the day. De wi%% pride ourse%ves on bein$ a %eadin$ trusted care in @enya. Our center wi%% offer our corporate partnersC emp%oyees rea% peace of mind0 a%%owin$ them to focus on their wor#0 #nowin$ that their %oved ones are under e?pert care in a safe and nurturin$ environment. Part of our mission wi%% inc%ude improvin$ the wor#,%ife ba%ance of Parents0 ma#in$ us a cornerstone for numerous emp%oyee we%%ness strate$ies.
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1-5 PRODUCTS AND SERVICES The services offered wi%% be as shown in the tab%e
S%2% &''%%
S%2% )%
A:% :&
9 safe nurturin$ #id/friend%y
Dith enou$h toys0 beds0 chairs For a%% a$e $roups
environment
and tab%e for each chi%d.
=utri tritiona iona%% mea mea%s and sna snac#s.
Bre Brea#fas fast0 snac nac#s0 %unch. ch.
For a%% a$e/$r /$roups
;ai%y report
2t wi%% invo%ve how the chi%d
For a%% a$e/$roups
faired on each particu%ar day. Fun0 activities0 $ames and crafts.
Transportation
Eomewor# assistance
Toys0 birthday ce%ebration
For a%% a$e $roups
bicyc%e ridin$
+ years and up
swimmin$
+ years and up
sin$in$ $ames.
years and above.
;rawin$ and co%ourin$
years and above.
To and from homes
For a%% a$e/$roups
To and from their schoo%s
years and above.
For chi%dren who attend chi%d
years and above
care before and after schoo%. Potty trainin$.
Todd%er care(years/4 years7
;iapers chan$in$ and baby
2nfant care 5 months/ 3+
washin$
months7
Bib%e Bib%e study study and and uar uaran an study study
Bib%e Bib%e and and uar uaran an storie stories0 s0 sin$in$0 study of $ood and simp%e %ivin$ studies.
5
years and above
Two annua% fie%d trips
To the museum0 nationa% par#s0 chi%dren p%ay$rounds0 snac#s companies %i#e house of mani.
years and above.
1-6 JUSTIFICATION JUSTIFICATION OF OPPORTUNITY Some of the factors that inspired me to start this business in the re$ion are Lar$e increase over the %ast twenty years in the numbers of emp%oyed mother with youn$ chi%dre chi%dren n has more than than doub%ed doub%ed the number number of youn$ youn$ chi%dren chi%dren in non/pare non/parenta% nta% care. Thus accessib%e0 affordab%e and 1ua%ity chi%d care benefits the socia% and financia% needs of parents and educationa% and deve%opment needs of the chi%dren. "y business %oca%ity is surrounded by rich fami%ies who have no prob%em spendin$ some of their income on chi%d care. The chi%d care is a%so needed since more than &( mi%%ion chi%den under the a$e of si? receive some type of re$u%ar chi%d care or ear%y education from someone other than a parent. There is a%so a need of chi%d care to the chi%dren since !)G of chi%drens brain $rowth ta#es p%ace before they enter #inder$arten. ua%ity preschoo% improves the abi%ity of the chi%dren to do we%% in schoo%. Anavai%abi%ity of chi%d care in that %oca%ity has created a need for one. 1-; INDUSTRY The business wi%% be a service industry that comprises estab%ishments primari%y en$a$ed in providin$ day care of infants or chi%dren. These estab%ishments $enera%%y care for preschoo% chi%dren0 but may care for o%der chi%dren when they are not in schoo% and may a%so offer pre /#inder$arten educationa% pro$rams The industry is an inspiration to me because of the fo%%owin$ reasons P%*&("$ &(*%")&(* •
2 have passion for he%pin$ youn$ chi%dren and their parents.
•
2 enoy the independence and responsibi%ity of bein$ my own boss.
•
2 have the time0 #now%ed$e0 s#i%%s and motivation to ma#e a sma%% business succeed. 6
•
2 wi%% have the time to %earn the s#i%%s 2 need or 2 wi%% be wi%%in$ to hire peop%e to provide the s#i%%s you %ac#.
•
Hou are comfortab%e with the financia% ris# invo%ved unti% your business $ets estab%ished.
F"3$ &(*%")&(* •
The income from a chi%d care business wi%% he%p support my fami%y. fami%y.
•
2 wi%% be ab%e to save on my own chi%d care costs.
•
Hou can be home with and care for your own chi%dren.
H%$ '& "%()* •
2 wi%% be he%pin$ parents support their fami%ies by ma#in$ more chi%d care avai%ab%e.
•
Parents need to #now that their chi%dren are in a safe0 hea%thy and %earnin$ environment. -ommunity need.
•
Hou he%p %oca% businesses by supportin$ wor#ers who need chi%d care.
•
Hour sma%% business supports the %oca% economy by ma#in$ purchases0 buyin$ services0 payin$ ta?es and payin$ sa%aries.
•
Hour community may be %ac#in$ certain types of chi%d care0 such as care for infants and todd%ers0 schoo%/a$e chi%dren0 mi%d%y i%% chi%dren0 or chi%dren with specia% needs.
;iscounts and credit terms wi%% be offered offered to potentia% customers customers to stren$then stren$then the entry strate$y to the business. ;urin$ entry0 as a mana$er 2 wi%% advertise ob vacancies and invite competent indiv individu idua%s a%s to app%y app%y.. 2nterv 2ntervie iews ws for those those who 1ua% 1ua%ify ify wi%% wi%% be done done and and train trainin in$ $ them them if necessa necessary ry.. 2 wi%% ac1uire ac1uire business business %icense %icense and permits permits from the re%evant re%evant authorities authorities before before venturin$ into the business. To promote the services0 2 wi%% advertise throu$h the media and bi%% boards %ocated at strate$ic points and a%so visitin$ various houses to create awareness. 2 wi%% char$e char$e my customers at a re%ative%y %ower cost so that they are attracted more. This wi%% assist me to cope up with upcomin$ competitors and therefore remain in business. For $rowth enhancement0 a%% the profits rea%i'ed wi%% be used to assist the business $row. The mana$er wi%% increase the number of emp%oyees in order to increase the %eve% of production to the business $rowth. The supervisor wi%% be responsib%e for ensurin$ that the ob is done at a%% time to improve performance therefore %eadin$ to the business $rowth. 2 wi%% be carryin$ out mar#et
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research re$u%ar%y re$u%ar%y to determine the desires of the customer. customer. This wi%% he%p in widenin$ the scope of business therefore assistin$ in its $rowth. The business future is ma?imi'ation of profit throu$h branches across the country puttin$ up faci%ities for seminars and conferencin$ by the year ()&5. 1-< GOALS OF THE BUSINESS Short term $oa%s The business or$ani'ation wi%% he%p in creation of obs either direct%y or indirect%y to the peop%e in the area. This wi%% he%p to improve their standard of %ivin$ and he%p them p%an their future. The business wi%% ensure that a%% the chi%dren around this re$ion. Lon$ term $oa%s "a?imi'ation of profit throu$h branches across the country puttin$ up an institute for crafts men and technicians and other faci%ities for seminars and conferencin$ by the year ()&5.
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CHAPTER 7 7-0 MARKETING PLAN "ar#etin$ p%an is used in any business enterprise to determine the performance of the business. 2t invo%ves brin$in$ in the $oods and services to the mar#et with an aim of ma#in$ profits. The Services offered in the business wi%% be of hi$h 1ua%ity to attract customers. 7-1 CUSTOMER PROFILE This inc%udes residents of ;onoh%m0 @omaroc#0 @ayo%e and Amoa estates. 9%% these customers wi%% have to be served with hi$h 1ua%ity services so as they are retained by the enterprise. "aority of fami%ies around these re$ion are midd%e c%ass thus the services offered wi%% be affordab%e in accordance to their income and in accordance to their chi%drens a$e. For e?amp%e 2nfants wi%% re1uire much care as compared to todd%ers thus their fee wi%% be hi$her. 7-7 MARKET SHARE The survey carried out showed that the mar#et is $rowin$ at a sufficient rate to a%%ow another new business to deve%op. P*<-2OAS "O"<=TS ;9H -9*< did a %ot of research in the area of proposed business %ocation usin$ various techni1ues which inc%ude M"=%) *2% This is a systematic too% which can be used to reduce ris#s and improve the probabi%ity of business to succeed. 2t shows that the mar#et $rowth is favorab%e. I()%2%>* This was done to #now the views of customers. 2nterviews were conducted with a se%ected samp%e of peop%e throu$h face to face interviews0 te%ephones dependin$ on the nature of the 1uestion. The area has a hi$h popu%ation0 $ood infrastructure hence the number of peop%e who re1uire my is hi$h. 2tCs about &))) customers who are interested in my products and services.
9
T"#$% %%*%()(: 3"=%) *?"%
S%:3%()
T&)"$ P&$")&( T":%) P&$")&(
C&3)")&(
M"=%) *?"%
2ndividua% tota%7 &)))
3))
3)),&)))I&))
3)G
2nfants
&)
)
),&)I&))
33.33G
Todd%ers
3)
&))
&)),&)I&))
++.+JG
+years and above ))
&)
&),))I&))
3)G
T?% *%:3%()
,represents the type of customers that wi%% be served.
T?% )&)"$ &$")&( , represents the tota% popu%ation of customers around my business %oca%ity. T?% )":%) &$")&(, represents &$")&(, represents the number of customers 2 intend to serve. C&3)")&(
, represents , represents ca%cu%ation of mar#et share.
M"=%) *?"%
, represents the percenta$e of the customers to the tota% popu%ation.
7-8 COMPETITION The competitors can be are c%assified into two $roups •
;irect competitors
•
2ndirect competitor
10
D%) &3%))&* &7 BH :*9:*9-< < 9-9 9-9;< ;<"H "H P.O. Bo? 54!/4)&)) ;onho%m/=airobi. Te% )J/()()5)&
(7 Le1ud Le1udee ;ay ;ay -are -are and and =ur =urser sery y P.O Bo? B o? !/4)+)& @omaroc#/=airobi. Te% )J(3+&+(4& I(%) &3%))&* &7 "titha "titha Eouse Eouse $ir%s $ir%s 9ssociat 9ssociation. ion. (7 "ama "ama 2an 2ans s =un =unni nies es.. A("$** '& &3%))&* &3%))&*
By :ra :race 9ca 9cadame amey
I ( ) % (" $
I()%("$
E.)%("$
E.)%("$
*)%(:)?
>%"=(%**
#*(%**
#*(%**
&&)()
)?%")*
-onstant f%ow
Offers on%y
of s#i%%ed
%earnin$
%aborers.
opportunities
Lar Lar$e #inder$arten
Ei$h char$es =o $ood site
11
Dide e?perience of mar#et
Le1ude ;ay -are
for business ;ea%s on%y with
9ccess to
and minima%
$ood %earnin$
day care
s#i%%s.
services
Standard services
chi%dren above
De%% trained staff
years
Di Dide e?p e?perie rience nce
Poor oor
:et free
Their
mana$ement
transport
services are
Prices are hi$h
9vai%abi%ity of
and =ursery
annua% trips "titha Eouse :ir%s
Lar$e number of
Poor
Strate$ic
9ssociation
customers
communication
$eo$raphica%
networ#.
position.
The house $ir%s offer cheap
Their services
services
dont offer trust
considered poor.
assuarance. "ama "ama 2an 2anss nunn nunnie iess
Lar$ Lar$ee mar# mar#et et
=o $rea $reatt impa impact ct Ei$h char$es
The nunnies can move around the who%e
P*<-2OAS
S#i%%ed wor#ers
"eans of
9ccess to
Surp%us from
"O"<=TS ;9 ;9H H
c%ose to my
transport to
current
$overnment
-9*<
business
various
techno%o$y
and sponsors
Offers variety of services. ;ea%in$ in a
destinations
:overnment
9dvertisement
po%icies are
can be
favorab%e.
12
to my competitors insec
number of
cha%%en$in$
9ccess to
chi%drens a$e/
%oans from
$roups.
micro finance ready mar#et.
:ood business site
:ood networ# throu$h socia% media
7-4 ADVERTISING AND PROMOTION A2%)*(: Before the commencement of my business0 there wi%% be pub%ic awareness of its commencement throu$h the radio0 te%evision0 posters0 $a'ettes and ma$a'ines. R"& This wi%% be done throu$h throu$h different different channe%s i.e. -iti'en0 -iti'en0 @iss F" and @B- radio. Throu$h Throu$h this advertisin$ every service wi%% be #nown by the customer. This wi%% be done any particu%ar time of the year e.$. 4/5 times.
%ocation0 address0 te%ephone0 fa? number and a%so emai% address0 services to$ether with their prices and char$es char$es 0 discount offered offered and brief terms. They wi%% be made as short and brief to the point as possib%e. 9ppro?imate%y &))) posters can be used per year at #sh per poster costin$ a tota% of #sh ))). G"@%))%* This wi%% be done twice per year and it wi%% be throu$h the dai%y =ation :a'ette and the
Price *eductions Prices wi%% be reduced by 5G0 %ess for the first twenty customers.
•
Soft %oans This wi%% be $iven to emp%oyees emp%oyees as a motivation. motivation. This wi%% ma#e them wor# to their best0 thus increasin$ the production and in turn increase the sa%es.
•
;iscounts 1uantity discounts discounts wi%% be rendered to customers. This wi%% indirect%y indirect%y motivate customers to opt for services for my business.
7-5 PRICING STRATEGY STRATEGY Price is a va%ue e?pressed in monetary. This is the amount of money needed to ac1uire some combination of a product and services. 2t affects firmCs competitive position and the share of the mar#et. O#%)2%* &' (: •
To achieve tar$et return
•
To stabi%i'e prices
•
To improve and maintain our mar#et0
14
•
To cope up with competition
•
To ma?imi'e price
The thin$s that are considered to arrive at the price of the commodities and services C&*) &' &) The price of services wi%% $o hand in hand with the cost of services encountered. C&3%))&* The price of the service wi%% be &G %ess than the norma% price i.e. competitorsC prices in order to beat up the competitor. P&')* "( &')* 3":( There wi%% be reasonab%e prices or char$es so as to obtain ma?imum reasonab%e profits. This wi%% be a subect to verification every end month. G&2%(3%() &$ The price settin$ up of the services wi%% indirect%y inc%ude the amount of ta?es paid for that services. T&)"$ %.%(*%* ;urin$ the price set up a%% services wi%% partia%%y inc%ude amount or e?penses incurred e.$. sa%aries0 wa$es0 ta?es0 rent and e%ectricity. &7 "ate "ateri ria% a%ss cos costt (7 The price of the services services wi%% wi%% be direct%y direct%y proportiona proportiona%% to the cost of the services. services. ;emand 2f the demand of the product .in the mar#et is hi$h0 the price wi%% be hi$h and vice versa 37 Supp%y 2f the amount of services supp%ied to the mar#et is hi$h0 the price of the service wi%% be %ow and vice versa. 15
47 Ani1ue Ani1uene ness ss of the the ser servic vices es 9ny new service produced in my business wi%% be char$ed reasonab%y hi$h before my competitors starts producin$ them. 7 Busine Business ss prom promoti otion on cost cost 9%% e?penses incurred durin$ promotion period wi%% be indirect%y be inc%usive in the mar#et price of the services. PRICING METHODS S%"*&( (: This settin$ the price of products and services accordin$ to seasons N&(B":"((: (: There wi%% be no bar$ainin$ between the buyer and the se%%er ne$otiatin$ that is to reach a consensus. P%(%)")&( (: This is the %owerin$ of price be%ow competitors to increase your share in the mar#et. C&3%))&( &%()% (: Business set prices after carefu% consideration of the competitive mar#et structure. The business can provide services at a %ower or hi$her price in %ine with the competition. P*?&$&:"$ (: 9 product price is set at a fu%% number. The price setters fee% that such a price has an apparent psycho%o$ica% si$nificance for the customer perspective. 7-5-8 PRICE TABLE, SERVICES
PRICES
=utritiona% mea%s and snac#s
())) shi%%in$s per month.
Fun0 activities0 $ames and crafts
())) shi%%in$s per month 16
Transportation
&))) per month
Tutoria% or homewor# assistance.
&))) shi%%in$s per month
=ecessities %i#e diapers0 water0 pottys0 chairs0 tab%es and beds e.t.c
()) per month
9nnua% fie%d trip
5)) shi%%in$s per trip
"edica% fee
())) shi%%in$s per month
7-6 SALES TACTICS D%) S%$$(: M%)?&* •
-omin$ face to face with the potentia% c%ients
•
2nterro$atin$ the customers en1uiries
•
Location the potentia% customers.
•
Learnin$ the customers attitude towards the services
•
9dvertisin$ the services at the counter
•
:ivin$ advisory services to customers services on the sta$e
•
"eetin$ to customers obectives.
I(%) S%$$(: M%)?&* •
Pub%ic announcement of services throu$h the te%evision
•
Pub%ic announcement of services throu$h the radios
•
9dvertisin$ the business services throu$h the posters
•
-a%%in$ for e?hibitions se%%in$ services at a reasonab%e cheap
7-; DISTRIBUTION STRATEGY STRATEGY The distribution channe% of my products wi%% inc%ude •
Business *epresentatives These wi%% be throu$h on/%ine or throu$h a team of members of the business in %ine of sa%es. They wi%% be re1uired to promote sa%es throu$h ne$otiatin$ with the customers0 since one wi%% not have to pay for a%% the service. 17
M&% &' )"(*&)
R&" T"(*&) This wi%% be used to transport the chi%dren to and from their homes. 2t wi%% a%so be used to transport o%der chi%dren to and from their schoo%s for those needin$ chi%d care before and after schoo%. The appro?imate cost of transport throu$h this means wi%% cost @sh 5)) per month
PROBLEMS ASSOCIATED ASSOCIATED WITH DISTRIBUTION
A%()* 2t wi%% be hard to predict an accident on the way which wi%% be a hu$e %oss for the business and the chi%drens fami%ies
P&& I('"*))% "( C&33(")&( Poor road conditions such as pot ho%es0 mud0 rou$h and bumped roads wou%d de%ay the chi%dren to their schoo%s and homes. 2n communication there are interior p%aces where there is a prob%em.
S)")%:%* )& &2%&3% )?% ?"$$%(:%*, For muddy and untarmar#ed roads0 emp%oy the uses of four whee% drive vehic%es. ;ifferent vehic%es can be used to transport the chi%dren to their various destinations. De%% e?perienced drivers wi%% be emp%oyed so as to avoid issues %i#e accidents.
18
CHAPTER 8 8-0 O:"(@")&( "( 3"(":%3%() $"(
9s described ear%ier in the business description0 Precious "oments is a patnership form of business si$nificant%y meanin$ that both parties wi%% be in char$e of the business have severa% duties and responsibi%ities which are very crucia% and needs to specia% attention . These wi%% be as fo%%ows
H(: "( %)(: "( '(: &' %3$&%%*,
2t wi%% be our duty and responsibi%ity to enro%% new emp%oyees to assi$n recruitments and to hire new new emp%o emp%oyee yees. s. For For one to succe succeed ed throu throu$h $h our
enro% enro%%me %ment nt they they must must have have the the desir desired ed
1ua%ifications and have passed the interior interview which we wi%% be conductin$ with the he%p of some of our staff. *ecruitment *ecruitment of new members wi%% be throu$h direct interview whereby one wi%% be re1uired to come face to face with the interviewers for e?amination and a%so indirect interview whereby app%ications wi%% be invited throu$h %etters a0 te%ephones 0 or emai%s . 9fter enro%%ment one wi%% $o further trainin$ throu$h a trainer assi$ned for that duty. The mana$er wi%% be the chief %e$a% advisor of the any matter arisin$ arisin$ in the business0 shou%d be directed to me whatever the circumstance and my decision wi%% be fina%
2 wi%% be chief or$ani'er of the staff members0 duties and responsibi%ities
2 wi%% be the overa%% in char$e of a%% business operations in re%ation to contracts0 sa%es0 purchases0 purchases0 insta%%ation and maintenance 2 wi%% be the one to decide on sa%aries and a%%owances of m emp%oyees 2 wi%% wi%% be enti entit% t%ed ed to not not %ess %ess than than @sh @sh 40) 40))) )) per per mont month h from from the the prof profit its0 s0 putt puttin in$ $ into into consideration the business pro$ress.
19
ORGANISATION ORGANISATION STRUCTURE
Board of Directors
Chief Director
Co-Chief Director
Business Manager
Secretary
Accountant
Child care Teacher
Child care Nurse
Child Attendant
8-1 BUSINESS BUSINES S MANAGER M ANAGER S! AND UALIFICATIONS UALIF ICATIONS ua%ifications &. ;ip%oma or de$ree ho%der in mana$eria% s#i%%s. (.
20
Cook
8-7 PERSONEL NUMBER UALIFICATIONS UALIFICATIONS AND DUTIES-
PERSONEL
NUMBER
UALIFICATION
DUTIES AN AND RESPONSIBILITIES
Business mana$er
&
;ip%oma or de$ree ho%der in mana$eria% s#i%%s.
"y co/actor when am not around. Supervisin$ senior technician. 9ssistin$ in recruitin$ new emp%oyees.
Se Secretary
&
;ip%oma in secretaria% studies. -omputer Literate. 9$e (&/(5years o%d. Perfect communication s#i%%s. Priority $iven to %adies.
*eceivin$ phone ca%%s and forwardin$ to respective personne%. De%comin$ c%ients before meetin$ senior officers. Si$nin$ contracts. ;irectin$ c%ients.
Business accountant
&
9t %east a certificate from @9S=
@eepin$ business records. *ecordin$ a%% transactions performed inf%ows,outf%ows.
Bus driver.
&
9$ed (( years and above. Posses a commercia% ;rivers Licence with P Passen$er7 and S Schoo% bus7.
Transportation of chi%dren to and from their homes. Di%% carry out any transportation needed.
-hi%d care teacher
(
9 dip%oma ho%der in ear%y chi%dhood. Ladies wi%% be hi$h%y prioriti'ed
Ee%pin$ chi%dren who attend other schoo%s with their homewor#s.
9t %east ( years e?perience
21
-hi%ds nurse
&
;e$ree or ;ip%oma of Ei$her
9ssessin$0 p%anin$ and carryin$ out ursib$ care re1uirements. Drittin$ c%inica% records of every chi%d.
-hi%d attendant
!
-ertificate in ear%y chi%dren. De%% competent in chi%d care. Eas a $ood persona%ity.
Di%% be carryin$ out a%% services invo%vin$ chi%d care.
-oo#s
&
-ertificate in caterin$.
@itchen responsibi%ities.
8-8 RECRUITMENTS TRAINING AND PROMOTION-
:overnment a$encies e.$. ministry of %abor and human resources -o%%e$es and Aniversities Private emp%oyment a$encies Da%# in e.$. to companies , or$ani'ations0 and re1uest for obs Patnership source of recruitment
8-8-1 RECRUITMENT PROCESS •
9dvertisin$ throu$h the newspaper %eaf%ets and posters vacancies
•
-o%%ection of app%ication %etters
•
Sortin$ out the app%ication and se%ectin$ those who have met the re1uirements
•
Postin$ interview appointment %etters to those who have made 1ua%ified
•
Sendin$ the re$rets to those who did not ma#e meet the re1uirements
•
-onductin$ interviews to the app%icants
•
Se%ectin$ the successors
•
2ntroducin$ the new emp%oyees to the new members of staff
8-8-7 TRAINING "ethods of Trainin$
I(&& S%3("* This is where business emp%oys an e?pert to train the wor#ers on different s#i%% son wor#in$
22
O( )?% &# M%)?& The business wi%% emp%oy wor#ers who wi%% be trained as they do their wor#K they $ain #now%ed$e and s#i%%s as they continue wor#in$
O'' )?% &# M%)?& This is whereby the trainees are $iven %eave to $o and train e%sewhere. They can be sent to a co%%e$e or bi$ companies or ta#e a course
R%"(: Dor#ers can a%so $ain #now%ed$e throu$h readin$ ourna%s0 ma$a'ines0 and boo#s which are re%ated to the trade area
8-8-8 ADVANTAGES OF TRAINING There is a hi$h performance of the business There is uniformity of the procedure since every person is we%% s#i%%ed The wor#ers are %ess supervised ;eve%opment of manpower There is economy use of materia%s and e1uipment since a%% %aborers are we%% trained on how to use the e1uipments
S)"'' 3%3#%*
B"* *"$"
"$$& "$$&>" >"( (%* %*
T&)"$ &)"$ % % 3&()?
T&)"$ % %"
&
Business "ana$er.
3))))
&))))
4))))
45))))
&
Secretary
())))
)))
()))
3)))))
&
Business ;river
)))
3)))
5)))
!+)))
(
-hi%d -are teacher.
&)))I(
)))I(
())))I(
(4))))I(
&
-hi%d nurse.
&)))
3)))
&5)))
(&+)))
!
-hi%d 9ttendant
J)))I!
3)))I!
&))))I!
&())))I!
&
-oo#
)))
()))
J)))
54)))
T&)"$
1 6<000
60 00 0
77 < 000
7;8 6 000
23
LEGAL ASPECTS 8-5 LICENSES PERMITS AND BY LAWS License permits and by %aws are the %e$a% documents which a business must abide with. They are issued by the $overnment officers to the businessK itCs a basis re1uirement for any business to operate LICENSE The business wi%% be re$istered with the re$ister of companies0 whose department fa%%s under the attorney $enera%. BY LAWS These are ru%es and re$u%ations set by the %oca% authority concernin$ business enterprises. The business wi%% ensure reviewin$ of %icense to prevent the disruption by the %oca% authority Ei$h safety standards wi%% be maintained.
LICENCE
CONTACTS
AMOUNT PAID =*?!
Business %icense
=airobi city -ounci% P.O Bo? 3))J =airobi
0)))
<%e <%ectrica rica%% %icen cense
"in "inistry stry of ener$y =ai =airobi robi P.O Bo? Bo? 3)5( 5( =airobi.
&0))
-ontract %icense
Town counci% te%ephone )()3&)&&(
&0))
-ertificate of re$istration
www.attorney$enera%.co.#e
&05))
T&)"$ &*)
9<0 0
8-6 SUPPORT SERVICES =ames of services
-ost per month @sh7
Tota% cost per year @sh7
transport
&50)))
(&+0)))
Dater and sewera$e
30)))
3+0)))
Eea%th,medica%
(0))
3)0)))
<%ectricity
(0)))
(40)))
Posta%
())
40)))
24
Le$a%,advisory services
()))
(40)))
Ban#in$
))
+)))
"obi%e,te%ephone
(0)))
(40)))
Security
40)))
450)))
9dvertisement
0)))
++)0)))
Stationeries
&0)))
&(0)))
*epair and maintenance
(0)))
(40)))
:arba$e
())
(4))
())
(4))
T&)"$ &*)
97600
1111700
C&()")* &' *%2% &2%* Transportation "r. @arana P.o. Bo? &++ =airobi. Te%ephone )J&4J4(33 Eea%th , "edica% :etrudes -hi%drens Eospita% P.o. Bo? !/4)+)& =airobi Te%ephone )J(3+&+(4&
25
CHAPTER 4 4-0 OPERATIONAL/PRODUCTION PLAN This is the technica% part that ta#es care of the aspects of the business that resu%ts in the fina% product or services for the customers. -arefu% p%annin$ is re1uired to ensure that the output is acceptab%e and of $ood 1ua%ity that customers wi%% be wi%%in$ to spend their money on. The partnership wi%% ensure p%annin$ and contro% strate$ies to ensure that MP*<-2OAS "O"<=TSM provides the best services to the customers. The business wi%% be openin$ at 5))am and c%osin$ at )) pm on dai%y wor#in$ hours There wi%% be c%eanin$ every mornin$ for & minutes before openin$ time. The secretary wi%% ta#e the position of the reception where a%% c%ients and customers pass throu$h. 4-1 PRODUCTION FACILITIES AND CAPACITY These are the materia%s that wi%% be need in runnin$ of the business M")%"$*/ %3%()
"())
S&% ("3% "( "%**
U() %
T&)"$ &*)
Tab%es
&)
>OB9O E9*;D9*<
5))
5)))
4))
40)))
&0)))
&()))
)))
)))
!))
&05))
P.O BON (+& =92*OB2 -hairs
&)
=H9:OB<2 E9*D9*< P.O BON 43& =92*OB2
Benches
&(
LAEH29 :<=<*9L DO*@S P.O BON &34 =92*OB2
First 9id #it
&
:
She%ves
(
@[email protected] FA*=2TA*
@2T-E<= F9-2L2T2
J))
@9"@A=>2 S<*2-
&))
J)))
:9S [email protected]<*
(
[email protected] SAP<*"9*@
50)))
&+0)))
26
P.O BON &34 =92*OB2 -omputers
3
[email protected] -O""A==2-9T2O=S
()0)))
+)0)))
P.O BON &( =92*OB2 T&)"$
7 1 ;8 00
4-7 PRODUCTION STRATEGY STRATEGY These are the factors that wi%% be considered so as to increase the profit every year
there wi%% be constant supervision and $ood teacher to chi%d ratio. This is so that the care $iver are capab%e of watchin$ the chi%dren at a%% times even durin$ s%eep.
The teachers wi%% be creative and inte%%i$ent with ear%y chi%dhood certificates.
MOMENTS wi%% happi%y share its The enviroment wi%% be safe and hea%thy. PRECIOUS MOMENTS wi%% po%icies on everythin$ from immuni'ation0 to hand washin$0 dea%in$ with sic# chi%dren and diaper chan$in$.
PRECIOUS MOMENTS wi%% MOMENTS wi%% be we%comin$ to parents and their ideas.
There wi%% be a focus on %earnin$ environment that is stoc#ed with rich variety of a$e appropriate materia%s and toys. The dai%y and wee#%y schedu%es wi%% have a %ot of activities %i#e art0 music0 outdoor p%ay and homewor# doin$.
P*<-2OAS "O"<=TS wi%% have hi$h standards and desire to improve.
COST OF LABOUR PER MONTH This is the amount of money that the proprietor intends to spend every month on remuneration of the emp%oyees.
N0
S)"'' 3%3#%*
B"* *"$"
"$$& "$$&>" >"( (%* %*
T&)"$ &)"$ % % 3&()?
T&)"$ % %"
&
Business "ana$er.
3))))
&))))
4))))
45))))
&
Secretary
())))
)))
()))
3)))))
&
Business ;river
)))
3)))
5)))
!+)))
(
-hi%d -are teacher.
&)))I(
)))I(
())))I(
(4))))I(
27
&
-hi%d nurse.
&)))
3)))
&5)))
(&+)))
!
-hi%d 9ttendant
J)))I!
3)))I!
&))))I!
&())))I!
&
-oo#
)))
()))
J)))
54)))
T&)"$
1 6<000
60 00 0
77 < 000
7;8 6 000
OVERHEAD COST These are the e?penses that the business wi%% incur on a month%y basis or otherwise0 e?penses incurred as operationa% costs0 most%y for amenities0 ener$y and other uti%ities that support the efficient runnin$ of the business.
N"3% N" 3%** &' *%2 *%2% %**
C&*) C& *) % 3& 3&() ()? ? =*? =*?!!
T&)"$ &)"$ &*) &*) % % %" %" =*?! =*?!
transport
&50)))
(&+0)))
Dater and sewera$e
30)))
3+0)))
Eea%th,medica%
(0))
3)0)))
<%ectricity
(0)))
(40)))
Posta%
())
40)))
Le$a%,advisory services
()))
(40)))
Ban#in$
))
+)))
"obi%e,te%ephone
(0)))
(40)))
Security
40)))
450)))
9dvertisement
0)))
++)0)))
Stationeries
&0)))
&(0)))
*epair and maintenance
(0)))
(40)))
:arba$e
())
(4))
())
(4))
T&)"$ &*)
97600
1111700
28
4-4 REGULATIONS REGULATIONS AFFECTING OPERATIONS OPERATIONS There are $overnment po%icies that affect and re$u%ate the wor#in$ of the business. These inc%udeK TA+ATION LAWS ACT CAP 4;0! The proprietor wi%% obtain both the 9T and pin numbers from the @enya revenue authority to ensure payment of ta?es to the $overnment. The emp%oyees sha%% be re$istered as by the income ta? department. HEALTH AND SAF SAFETY ETY ACT A CT CAP 74;! 74 ;! 2t is a re1uirement that in a%% operations pub%ic hea%th must be maintained.
29
CHAPTER 5 5-0 FINANCIAL PLAN This section out%ines the various e?penses to be incurred0 e?pected income from various sources and how it wi%% be spent. 5-1 P%&%")&("$ &*) These are costs incurred before the business comes into operation. These wi%% inc%ude various materia% costs and e1uipment as we%% as %e$a% documents to ensure smooth runnin$ of the business. I)%3*
C&*) =*?!
Tab%es
5)))
-hairs
40)))
Benches
&()))
First 9id #it
)))
She%ves
&05))
@itchen Faci%ities
J)))
:as -oo#er
&+0)))
-omputers
+)0)))
<%ectricity
(0)))
2nsurance
50)))
2ntern 2nternet et servic services es insta insta%%a %%atio tion n
&())) &()))
Dater insta%%ation
0)))
Te%ephone insta%%ation
0)))
Business re$istration
30)))
T&)"$
()03))
30
5-7E*)3")&( &' W&=(: ")"$ This is the tota% amount re1uired to start an enterprise and financin$ for a%% the e?penses Dor#in$ capita% current assets/ current %iabi%ities I)%3*
A3&() =*?*!
-ash at ban#
&))))
-ash in hand
))))
-reditors
4))))
Short term %oan
5)))))
;ebtors
()))))
Dor#in$ capita%
&04(0)) 0
5-8 CASH FLOW PROJECTION FOR MEDIUIP SYSTEM SERVICES FROM APRIL 7015 TO MARCH 7016 cash in flow flow april may jun june july july august septe eptem mber octo octobe berr noem oember !ece ecember jan january feb februa ruary march tot total beg beginning inningbala balanc ncee 59500 74800 96000 124600 163600 206900 253800 305200 359600 418600 484300 2546900 cashsales 180000 185000 190000 200000 210000 215000 220000 225000 230000 235000 240000 245000 2575000 !ebtors 9000 10000 11000 11500 12000 12500 13000 13500 14000 14500 15000 15500 15 151500 cash at ban" 50000 50000 tota total in flow 239000 254500 275800 307500 346600 391100 439900 492300 549200 609100 673600 744800 53 5323400 cash outflow cash purc purcha hasses 90000 94000 95000 96000 97000 98000 99000 100000 101000 10200 103000 104000 1179000 cre!itors 3000 3000 3100 3100 3200 3100 3100 3500 3500 3400 3400 35400 rent 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30 30000 wag wagesan!salari laries es 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 600000 allowances 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48000 promotions 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000 telephone an! posta 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400 electricity 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000 water 300 300 300 300 300 300 300 300 300 300 300 300 36 3600 a!ertisement 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000 loan repayment repayment interest on loan lic license an! permits its 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30000 transport 10000 10000 9000 11000 10000 10000 11000 11000 12000 12000 10000 11000 12 127000 insuarance 4000 4000 mislleneous 1000 1200 1300 1300 1400 1500 1500 1500 1600 1500 1400 1400 16600 total total cash cashoutflow outflow 176500 179700 179800 182900 183000 184200 186100 187100 189600 190500 189300 191300 222 2220000 net 59500 74800 96000 124600 163600 206900 253800 305200 359600 418600 484300 725 725500 3272400
31
5-4 PROFORMA BALANCE SHEET OF PRECIOUS MOMENTS MOMEN TS DAY DAY CARE AT ENDING 7015 7016 AND 701; 1*) % %"
7( % %"
8 %"
-ash in ban#
&)))))
&J))))
()))))
-ash in hand
55+)
+(5)))
J))))
;ebtors
+5)))
J)))
!))))
Stoc#
&(J4)))
&3)))))
&4))))
Sub tota%
&!5J+5)
(&+5)))
(4!)))))
-reditors
&))))
+&+)))
+))))
Sub tota%
&34+4))
&+34)))
&J54)))
Ban# %oan
&354)
(J&+5)
(J&+5)
Owner e1uity
+)54J)
3!(&()
5(5()
=et profit
+!!&+)
J!(+)
J!3))
Sub tota%
&(34&
&3!&(()
&4)3))
Tota% %iabi%ities
()!)J&)
((!J)))
(+35))
I )% 3 C%() "**%)*
C%() $"#$)%*
L&(: )%3 $"#$)%*
5-5 PROFORMA PROF ORMA STATEMENT STATEMENT FOR PRECIOUS MOMENTS MOMEN TS DAY DAY CARE AT YEAR ENDING 7016 701; 701< 1*) % %"
7( % %"
8 %"
5&+44))
(!5)))
(+!))))
Da$es and sa%aries
J+)))
+54)))
J44)))
*ent
J)))
J))))
&)5)))
Dater
&)!)
&()))
&4)))
I )% 3 I(&3% Tota% income E.%(*%*
32
Te%ephone
4&5)
4)))
45)))
<%ectricity
4)4))
4()))
4))
9dvertisin$
(())
(+)))
3))))
Stationery
&+())
&5())
())))
Transport
5))
+()))
J))))
;epreciation
!)))
&5)))
3))))
Loan payment
&354)
(&J+5)
(&J+5)
*epair and maintenance
&()))
&4))
&5!))
2nsurance
45)))
+5)))
53)))
Le$a% e?penses
&))))
&!)))
(&)))
Tota% e?penses
&)&(4)
&3&+35)
&44!5)
=et profit before ta?
J()3+)
JJ(+)
5&))))
Provision for ta? &G7
(&())
&+)))
&4J))
=et profit after ta?
+!!0&+)
J!(+)
J!3))
5-6 B%"= %2%( "("$** C"$$")&( &' #%"=%2%( &()* Brea#/even point is the %eve% of operation at which the business neither sustains a %oss of ma#es of profit. 9 profit mar$in is e?pected by the business if production is above this %eve%. 2t is the point at which the business wi%% on%y ab%e to meet variab%e costs and fi?ed costs on%y. Brea#/even point measures the intensity of mar$ina% profit as a percenta$e of sa%es a%so #nown as mar$ina% profit ratios mpr7 it is ca%cu%ated as Brea#/even point B
The $reater the vo%ume of sa%es from the brea#/even points the more the mar$in of safety.
33
B%"=%2%( B%"=% 2%( &() '& )?% '*) %" %((: %(( : 4TH JANUARY 7016 I) % 3
A3&()
F.% &*)* Furniture and fittin$s
&54&J)
-omputers
!5)))
2nsurance
+)))
Licenses
&4))
Tota% fi?ed costs
35())
V""#$% &*)* 9dvertisin$
4+(+)
-osts of services%abor7
5J())
Te%ephone
&(3)
<%ectricity
&+J)
Dater
45))
:enera% e?penses transport7
5&()
Tota% variab%e cost
&)3(35
B
Services
(4J555JI&)) 4J(&45J (.G 34
The ca%cu%ations above depicts that the mar#et for services offered by the business is hi$h and prosperous. This creates a bi$$er chance for the business to capture a %ar$er mar#et share by improvin$ on services rendered further and offerin$ the best prices for the commodities so%d. 2t indicates the possibi%ity of a stab%e mar#et share. N%) &') ")& =et profit ratio is the difference between the $ross profit and the e?penses incurred. =et profit ratio shows the profit $enerated by sa%es and it is ca%cu%ated as be%ow =et profit ratio profit before interest and ta?I&)) Services !((&)(I&)) 4J(&45J &!.3G 5-< D%*% '("((: This is the capita% re1uired to start and #eep the business operationa% for some time. 2tem Pre/operationa% costs 4J3(!.J Dor#in$ capita%
54+4J).(
Tota% desired financin$ #sh &)0+))0)))
5-9 P&&*% ")"$@")&( Ban# %oan OwnerCs Owner Cs e1uity -ontributions
J))))) &3))))) &5)))))
TOTAL INVESTMENT #sh &)0+))0)))
35
APPENDI+ A, FORMULAS &. Dor#in$ or#in$ capita% capita% current current assets/ assets/ curren currentt %iabi%itie %iabi%itiess (. Brea#/e Brea#/even ven point point B
Services
4. =et profit profit ratio ratio profit profit before before intere interest st and ta?I ta?I&)) &)) Services
36
