BUSINESS PLAN

BUSINESS NAME: KALIMAX SURVEY WORKSHOP AND

EQUIPMENT`S

ADDRESS: P.O. BOX 44-30500 LODWAR-KENYA

PRESENTED BY: EKALIMON MATHEW EKALICH

SCHOOL NAME: LODWAR TECHNICAL AND VOCATIONAL

COLLEGE

COURSE CODE: 2312

PAPER CODE: 307

INDEX NUMBER: 5011100028

SUPERVISOR NAME: CHURCHILL OCHIENG JUMA

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN

FULFILLMENT OF AWARD IN DIPLOMA IN LAND SURVEY

SERIES: JULY 2024

ACKNOWLEDGEMENT
I wish to acknowledge my parents for the support they offered me to fulfill the business plan,
their commitments towards the successive of this business is highly appreciated. More thanks to
my friends, brothers, sisters and relatives who has always been there for me.
I am heartily thankful to my supervisor Mr.Churchil ochieng juma whose encouragement,
guidance and support from the initial to the final level enable me to develop an understanding of
the business plan.

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DECLARATION
This business plan is the work of my hands and brain it has never been presented by anybody.
This information is so unique that no one has ever presented every this entitled in the business
plan is originated from my thoughts.

STUDENT’S NAME: ………………………………………..

INDEX: ………………………………………………………
SIGNATURE: ……………………………………………….
DATE: ……………………………………………………….

SUPERVISOR’S NAME: ………………………………………

SIGNATURE: ………………………………………………….
DATE: …………………………………………………………

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DEDICATION
I dedicate this work to my parents for the support they have offered me. I also dedicate this work
to my friends who helped me on some of the ideas of writing this business plan.

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Contents
BUSINESS PLAN ........................................................................................................................... i
ACKNOWLEDGEMENT .............................................................................................................. ii
DECLARATION ........................................................................................................................... iii
DEDICATION ............................................................................................................................... iv
CHAPTER ONE ............................................................................................................................. 1
1. BUSINESS DESCRIPTION ................................................................................................ 1
1.1. MARKET PLAN.............................................................................................................. 1
1.2. ORGANIZATION AND MANAGEMENT .................................................................... 1
1.3. OPERATIONAL PLAN .................................................................................................. 1
1.4. FINANCIAL PLAN ......................................................................................................... 1
CHAPTER TWO ............................................................................................................................ 2
2. BUSINESS DESCRIPTION ................................................................................................ 2
2.1. BUSINESS NAME .......................................................................................................... 2
2.2. BUSINESS LOCATION AND ADDRESS ..................................................................... 2
2.2.1. MAP OF THE PROPOSED BUSINESS LOCATION ................................................ 3
2.3. FORM OF BUSINESS OWNERSHIP ............................................................................ 4
2.3.1. PROPRIETORSHIP PROFILE .................................................................................... 4
2.3.2. CAPITAL INVESTMENT ........................................................................................... 4
2.4. TYPE OF THE BUSINESS ............................................................................................. 4
2.5. PRODUCTS AND SERVICES ....................................................................................... 5
2.6. INDUSTRY ...................................................................................................................... 5
2.6.1. NAME OF THE INDUSTRY ...................................................................................... 5
2.6.2. COMPETITION FROM OTHER FIRMS ................................................................... 5
2.7. GOALS OF THE BUSINESS .......................................................................................... 6
2.7.1. LONG OR SHORT TERM GOALS ............................................................................ 6
2.7.2. LONG TERM GOALS ................................................................................................. 6
2.7.3. SHORT TERM GOALS ............................................................................................... 6
2.8. THE ENTRY AND GROWTH STRATEGY .................................................................. 6
CHAPTER THREE ........................................................................................................................ 7
3. MARKETING PLAN .......................................................................................................... 7

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 3.1. CUSTOMERS .................................................................................................................. 7
3.2. MARKET SHARE ........................................................................................................... 7
3.2.1. PIE CHART OF COMPETITORS MARKET SHARE ............................................... 8
3.3. METHODS OF PROMOTION AND ADVERTISING .................................................. 8
3.4. COMPETITORS .............................................................................................................. 9
3.5. PRICING STRATEGY .................................................................................................... 9
3.6. SALES TACTICS .......................................................................................................... 10
3.7. DISTRIBUTION STRATEGY ...................................................................................... 10
CHAPTER FOUR ......................................................................................................................... 11
4. ORGANIZATION AND MANAGEMENT...................................................................... 11
4.1. ORGANIZATIONAL STRUCTURE ............................................................................ 11
4.2. KEY MANAGEMENT PERSONNEL.......................................................................... 12
4.3. RECRUITMENT TRAINING AND PROMOTION OF PERSONNEL ...................... 12
4.3.1. RECRUITMENT ........................................................................................................ 12
4.3.2. TRAINING ................................................................................................................. 12
4.3.3. PROMOTION PERSONNEL .................................................................................... 12
4.4. RENUMERATION AND INCENTIVES ...................................................................... 13
4.4.1. STRUCTURE OF THE SALARIES PAID TO STAFF MEMBERS ........................ 13
4.5. LICENSE PERMIT AND BY LAWS ........................................................................... 13
4.5.1. LICENSE .................................................................................................................... 13
4.5.2. PERMIT...................................................................................................................... 13
4.5.3. LAWS ......................................................................................................................... 13
4.6. SUPPORTIVE SERVICES ............................................................................................ 13
CHAPTER FIVE .......................................................................................................................... 15
5. PRODUCTION AND OPERATIONAL PLANS ............................................................. 15
5.1. PRODUCTION FACILITIES / CAPACITY ................................................................. 15
5.2. PRODUCTION COST ................................................................................................... 15
5.3. PRODUCTION PROCESS ............................................................................................ 15
5.3.1. FEATURES OF THE PRODUCTS ........................................................................... 15
5.3.2. EXTERNAL FEATURES AFFECTING PRODUCTION PROCESS ...................... 15
5.3.3. INTERNAL FEATURES AFFECTINGB PRODUCTION PROCESS .................... 15

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 5.3.4. PLANS TO OVERCOME EXTERNAL AND INTERNAL FACTORS .................. 16
5.4. LABOUR COST ............................................................................................................ 16
5.5. OVERHEAD COST ....................................................................................................... 16
5.6. PRODUCTION STRATEGY ........................................................................................ 16
5.7. REGULATIONS AFFECTING OPERATION ............................................................. 16
5.7.1. HEALTH REGULATIONS ....................................................................................... 16
5.7.2. TRADE MARKS AND COPY RIGHTS ................................................................... 16
5.7.3. SAFETY REGULATIONS ........................................................................................ 17
CHAPTER SIX ............................................................................................................................. 18
6. FINANCIAL PLAN........................................................................................................... 18
6.1. PROJECTED CASH FLOW STATEMENT FOR THE 1ST YEAR ............................ 18
6.2. PROJECTED CASH FLOW STATEMENT FOR THE 2ND YEAR ........................... 19
6.3. PROJECTED CASH FLOW STATEMENT FOR THE 3RD YEAR ........................... 20
6.4. PROFORMA BALANCE SHEET FOR THE 3RD YEAR........................................... 21
6.5. BREAK EVEN ANALYSIS FOR THE 1ST YEAR ..................................................... 22
6.5.1. BREAK ANALYSIS FOR THE 2ND YEAR ............................................................ 22
6.5.2. BREAK EVEN ANALYSIS FOR THE 3RD YEAR ................................................ 22

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EXECUTIVE SUMMARY FOR KALIMAX SURVEY WORKSHOP AND EQUIPMENT
SHOP

Business Description: Kalimax Survey Workshop and Equipment Shop, located along the
Lodwar to Kitale highway, aims to serve the growing Lodwar area with high-quality survey
equipment and services. The business, managed by Kalimon and Maximilla, will operate from
Monday to Saturday, 8:00 AM to 5:00 PM.

Market Plan: The market is promising due to rapid development in Lodwar. Kalimax plans to
use advertising and a medium-level pricing strategy to attract customers at county and sub-
county levels.

Organization and Management: The business will have four personnel: a Manager, Deputy
Manager, Subordinate, and Security Guard. Kalimon, the owner, has a diploma in Land
Surveying and Mapping Engineering.

Financial Plan: With a capital investment of KSHS 2,730,000 sourced from family, loans,
savings, and friends, the business expects to maintain financial records diligently for profit
assessment and expansion.

Operational Plan: Kalimax will use a streamlined process where customers receive receipts
upon payment and collect products from staff. Consultancy services will be available near the
reception.

Products and Services: The shop will sell a variety of survey equipment, including tape
measures, GPS units, theodolites, and real-time kinematic devices. Quality storage and security
measures will be implemented.

Industry and Competition: Operating in the trade industry, Kalimax faces competition from
firms like Ekai Electronics and the Ministry of Land. Competitive strategies include maintaining
lower prices and high-quality products.

Goals: Long-term goals focus on enhancing communication technology and economic

development. Short-term goals include selling materials at competitive prices and creating local
employment.

Marketing and Sales: Kalimax will target government institutions, commercial customers, and
individual buyers. Marketing efforts will include online advertising and media promotions.

Financial Projections: The business projects significant growth, with detailed cash flow
statements indicating steady increases in revenue and expenses over three years. Break-even
analysis shows positive contribution margins.This summary outlines Kalimax's strategic plans to
establish a successful survey equipment business in a competitive and growing market.

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 CHAPTER ONE

1. BUSINESS DESCRIPTION
The name of the business will be Kalimax survey workshop and equipment shop. The business
will be located at Kanamkemer along the Lodwar to Kitale highway near Rexona building.

1.1. MARKET PLAN

Lodwar area is rapidly developing at the moment several business growths are raising over time.
This constitutes to an attractive and enabling market for kalimax survey workshop and
equipment shop. The business will advertise its goods and services to make it easier for the
customers to access the location of the business and goods offered. The pricing strategy will be
set at a medium level so as to attract customers within the county level and sub-county.

1.2. ORGANIZATION AND MANAGEMENT

This business will be managed by kalimon and maximilla (kalimax) kalimon as the manager.
The business will require a maximum of four personnel to operate the business. They include;
The Manager, Deputy Manager, Subordinate and security guard. The Manager will have duties
as cost control, day to day supervision and supplier relations.

1.3. OPERATIONAL PLAN

The business will be operated from Monday to Saturday that is from 8.00 am to 5.00pm.
Customers and clients will obtain receipts after paying cash which will be taken to another staff
for issues of the product bought while those who seek consultancy will be handled in an office
extended near the reception.

1.4. FINANCIAL PLAN

The source capital will be from the family members, loans from banks and personal savings.
Financial record will be properly and securely kept for profit assessment and payment
monitoring. The profit obtained will be used to expand the business operations.

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 CHAPTER TWO

2. BUSINESS DESCRIPTION

2.1. BUSINESS NAME

The name of the business will be kalimax survey workshop and equipment’s shop.

2.2. BUSINESS LOCATION AND ADDRESS

Kalimax survey work shop and equipment will be situated at kanamkemer along the Lodwar-
kitale highway near Rexona building, which is 200m from Antidote, previously a club on the
kerio highway. (Easting 1353)
Address of the business
Kalimax survey workshop and equipment’s
P.O. BOX 44-30400
LODWAR- KENYA
PHONE NO: 0791409514
E-mail:[email protected]

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 2.2.1. MAP OF THE PROPOSED BUSINESS LOCATION
KITALE HIGHWAY
BODABODA STAGE

KERIO ROAD KANAM PRY

ANTIDOTE KALIMAX
WORKSHOP
ELECTONICS

EKAI
ELECTRONICS
LAPUR BAR

REXONA

KANAM HIGHWAY

A.C.K CHURCH ROBERT SHOP

JUNCTION

LODWAR TOWN

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 2.3. FORM OF BUSINESS OWNERSHIP
The form of business ownership will be a sole proprietorship since the owner is the financer of
the business thus capital will be induced by the owner. Knowledge and skills will be acquired
from the business owner or individual.
The profit is enjoyed by the owner of the business this is because he has invented his energy and
resources to the business therefore he must be accounted to both profit and loss.
He is the one involved in the management and controlling of the business.
Ensures that the products and services are made available to the customers.
A sole proprietor funds the business financially so as to ensure that the business objectives or
goals are achieved successfully.
2.3.1. PROPRIETORSHIP PROFILE
The proposed form of business will be owned by kalimon who is a Kenyan by citizenship aged
28 years and a resident of Turkana central. He has a Diploma in land surveying and mapping
Engineering.

2.3.2. CAPITAL INVESTMENT

The intended capital investment will be KSHS. 800,000

SOURCE AMOUNT
Family members 800,000
Loans from Banks 600,000
Personal savings 750,000
Friends and relatives 580,000

TOTAL 2,730,000

2.4. TYPE OF THE BUSINESS

The proposed business will be trading type of business. It will provide unique products that are
of high quality so as to attract many customers. The business will operate on a good environment
and near people’s houses so as to reduce transportation cost thus the customers can easily access
the products they need to buy.
The business will be selling surveys and equipment’s products e.g. tape measure, global
positioning system(GPS),steel band, ranging rods, grunters chain, revenue chain, engineers
chain, plumb fork, dumpy level and staffs, theodolites, total station, automated machine for
Leveling, compass, prism, real time kinematic (RTK) and many others. The storage facilities for
the materials will be of high quality so as to prevent the materials from damages. Security of the
items will be highly observed.

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I will ensure that all materials required by my customers are made readily available to them. This
is to ensure that the customer’s demands are mate accordingly. I will also ensure that good
relationship is made between me and my customers to promote unity among us and promotion of
the products I will be offering to them.

2.5. PRODUCTS AND SERVICES

The proposed business will offer the following products

PRODUCTS QUANTITY TOTAL COST

Tape measures 100 pieces 1500
Steel bands 200 pieces 7000
Global positioning system (GPS) 50 pieces 12000
Ranging rods 150 pieces 8000
Günter’s chain 60 pieces 12000
Revenue chains 80 pieces 42500
Engineers chain 80 pieces 26000
Plump fork 50 pieces 150000
Dumpy level 4 pieces 307500
Magnetic compass 10 pieces 12500
Theodolites level 2 pieces 15000
Total station 2 pieces 700000
Real time kinematic 2 pieces 800000
TOTAL 790 2,087,700

2.6. INDUSTRY
This form of business falls under trade industry, whereby products like Gunter’s chain, plump
fork (bob), dumpy level and staff are actually used in survey linear measurement in land.

2.6.1. NAME OF THE INDUSTRY

The name of this form of business will be kalimax survey workshop and equipment shop.

2.6.2. COMPETITION FROM OTHER FIRMS

This form of business faces stiff competition from the other firms such as ministry of land,
private licensed surveyors and Ekai Electronics which is located within my trading industry. Ekai
Electronics is located in a strategic point near Robert junction which is busy hence attracting
many customers and he is selling the same other similar products.

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 2.7. GOALS OF THE BUSINESS

2.7.1. LONG OR SHORT TERM GOALS

2.7.2. LONG TERM GOALS

To improve technology in terms of communication i.e. products like global positioning
system GPS) and real time kinematic (RTK) aids in giving people information.
To promote unity among people involved in the buying of products this is done through
interactions.
To promote economy development in terms of modern use of products like global
positioning system instead of spacing methods (sag).

2.7.3. SHORT TERM GOALS

Business will benefit during selling its materials at high prices
To reduce means of communication like use of letters to use of satellites controls as a means
of passing information.
To provide employment to the people living near the business industry.
To promote the community by provision of required needs i.e. kalimon antennae, fork, and
tape measures.

2.8. THE ENTRY AND GROWTH STRATEGY

The business is going to start with a maximum of two million eight hundred and seven thousand,
seven hundred only, whereby the money will facilitate activities of the business well.
The strategy of the proposed business will be high this is because of promotions and
advertisements that will be used by the proposed business in order to attract attention of the
customers so that they can buy more of our goods.
The proposed business will also grow and expand other branches will be opened to different
places has the profit expected from the proposed business is of huge amount of money.
The business will intend to take people for training so that they are promoted to various
departments in terms of improving communication and telecommunication in our community.
The business will ensure that people living around our business industry benefits in terms of
technology as the business is provide educate them with knowledge and skills of using our
equipment’s hence promoting technology in the community.

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 CHAPTER THREE

3. MARKETING PLAN
This form of business will be selling its products at affordable prices, good quality and exact
quantity to attract many customers.

3.1. CUSTOMERS
 Our client area: that is survey workshop and equipment engineers.
 Government institutions: these are public institutions like schools i.e. technical
vocational education trainings (TVET), libraries and hospitals owned by the government
will also be our customer as they are able to purchase on our survey instruments, tape
measures, ranging rods, dumpy levels, staffs and replacing crashed out machines in the
ministries.
 Commercial customers: these are engineers who have the knowledge and skills in
survey construction and installation of AutoCAD and arch cad. They take the tender from
the business to supply materials suitable for construction.
 Individual customers: these are the ordinary customers who come to buy products or
materials for their own use.

3.2. MARKET SHARE

This form of business is expected to cover a small piece of land that is 38% because of the small
initial capital invested. Stiff competition from other firms also leads to a market share whereby
resources are being shared equally and used well for the effective running of the business
successfully. This proposed form of business is expected to serve around 1000 people as there
are other firms competing.
SUMMARY OF THE MARKET SHARE

1ST YEAR PERCENTAGE 2ND YEAR PERCENTAGE

KALIMON SURVEY 45% KALIMON SURVEY 70%
WORKSHOP WORKSHOP
EKAI ELECTRONICS 55% EKAI ELECTRONICS 30%

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 3.2.1. PIE CHART OF COMPETITORS MARKET SHARE
The following charts below shows the shares in the market between two competing businesses in
two years.
1ST YEAR

Sales

KALIMON SURVEY
WORKSHOP
EKAI ELECTRICALS

2ND YEAR

Sales

KALIMON SURVEY
WORKSHOP
EKAI ELECTRICALS

3.3. METHODS OF PROMOTION AND ADVERTISING

This form of business will be advertised to potential customers so that they can be able to access
the business i.e. location of the business and the price of the products.

8
In this form of business method of promotion and advertising will be through Facebook and what
sap other ways will be through advertising our products on media i.e. radios and televisions this
is to make a wide range of people access our products. Our emails addresses and contacts will
also be displayed for easy assessments of our products.

3.4. COMPETITORS
This form of business faces stiff competition from EKAI ELECTRONICS which is located on a
strategic point near Robert junction where many people pass by and this attracts many customers
to access his products.
The following are competitor’s weaknesses and strengths of the business;
WEAKNESSES
 Lack of enough resources to compete with other business men
 Lack of skills and knowledge to run the business compared to other Engineers
 They lack support from the donor that they will be collaborating with them
 Provision of the same products in the local market
 Differences in products prices
STRENGTHS
 Lowering your prices in the sale of your products
 Hear customer’s grievances and make proper decisions
 Being creative and innovative in the business
 Bringing the choice of your customer’s preferences

3.5. PRICING STRATEGY

This is a process of setting reasonable prices on products and services towards achieving high
sales.
The financial price is the measurement of value and has the following importance;
 Economic value which relate to generation of production revenue
 Profit- through price profit cost and revenue elements are measurable
 Product quality- price gives indication of the product quality
 Meeting consumer’s expectations is measurable through price
The following are factors which facilitate the business to be run smoothly;
 Customer’s complaints
 Individual personal skills
 Surveys
 Research bindings
 Trade, shows and exhibitions
 architectures
 roads engineers and physical planners

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 3.6. SALES TACTICS
Sales tactics refers to strategies which are aimed at promoting the purchasing of a given product.
Offering discount to the customers so that they can continue buying your products. Offering
credit facilities to the customers so that they may exist on buying of the products offered in the
business. I will also use free samples to the customers in my business so that a group of people
may come and buy goods from your business.

3.7. DISTRIBUTION STRATEGY

Distribution is the process of passing goods from one point of production to the other point of
use.
Channels of distribution for various products:
Manufacturing Wholesale Retailers Final user
Manufacturing Wholesale Final user
Manufacture Retailers Final user
Manufacturer’s Final user

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 CHAPTER FOUR

4. ORGANIZATION AND MANAGEMENT

The business will require a maximum number of four personnel to control and manage the
operation of the business. The staffs that will be employed includes: The manager, Deputy
Manager, Subordinate staff and the security guard. However, each staff member will be required
to perform tasks accordingly.

4.1. ORGANIZATIONAL STRUCTURE

The business management panel will be arranged in hierarchal order where the management will
adopt vertical line command. This structure will encourage effective communication and will be
simple and readily understood by the staff.
The chart below shows line of commands in a vertical manner

KALIMAX SURVEY WORKSHOP AND EQUIPMENT MANAGEMENT CHART

MANAGING DIRECTOR

DEPUTY MANAGING DIRECTOR

SURBODINATE STAFF SECURITY GUARD

The above managerial staff will be aiming at providing sufficient services so as to enhance the
business and facilitate its activities perfectly.

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 4.2. KEY MANAGEMENT PERSONNEL
This business will involve the skilled and qualified staff to carry out operations of the business
successfully. There will be recruitment of hardworking and committed staffs to perform the
business operation for the enhancement of adequate production of good results for the progress
of the business.
The managing board will comprise of the managing director, deputy managing director and the
subordinate staff. The managing director will plan all the activities that will be taking place in
the business. He or she must ensure that there are adequate resources required in the business in
order to run and operate well.
The deputy managing director will be working hand in hand with the manager of the business
that is assisting some tasks done by the manager. He or she is hold responsible when the manager
is not around and can work on behave of the manager in his absence. Subordinate staff will be
individuals helping in other activities such as transporting of the surveying materials from the
center, selling of the products and cleaning of the business environment.
The security guard will provide security to the products of the business and ensuring that order is
maintained around the business area and he ensures that order is observed at the place of work.

4.3. RECRUITMENT TRAINING AND PROMOTION OF PERSONNEL

4.3.1. RECRUITMENT
The owners of the business will recruit staff members by putting in consideration their skills,
qualifications and ability to do work. The recruitment determines the nature of staffs required,
the managing board will use external requirement as a source of recruiting the employees
The business will use advertisement has a method of recruiting members of the staff. The
managing director must have a degree in survey and equipment engineering. 3years experience.
The subordinate staff that is cleaner must have completed his or her secondary education with a
certified certificate for reference.
The security guard must have at least a certificate of secondary education and worked at least 4
years with other security agencies or operations i.e. G4S, K.K

4.3.2. TRAINING
After recruitment of the staff, they will be provided with training programs so as to improve their
operation skills and knowledge. The top management will ensure that the staff members are well
equipped with skills of performing their various tasks in progression or success of the business
operation. It will be a two week training whereby all foodstuffs and allowances will be
accommodated by the managerial.

4.3.3. PROMOTION PERSONNEL

Promotion of staffs in the business enterprise will be from the lower position to the higher
position. The staff members will be promoted according to how they perform their tasks, those
ones who will be hardworking will be definitely promoted.

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 4.4. RENUMERATION AND INCENTIVES
The staff will be involved in decision making whereby they will come together and make
policies that governs them in the business operation and involved in bargaining power of wages
and salaries administration.
The staff will be provided with incentives like allowances according to their performance and
their welfares. The incentives will be given to the staff to the benefit of motivating them. The
staff will be paid to a chain command. However, the management will ensure that each staff
member is paid according to the work done.

4.4.1. STRUCTURE OF THE SALARIES PAID TO STAFF MEMBERS

NO POSITION AMOUNT PAID IN KSHS TOTTAL AMOUNT
PER MONTH IN KSHS
1. MANAGER 35,000 35,000
2. D. MANAGER 23,000 23,000
3. SUBORDINATE 18,000 18,000
4. SECURITY GUARD 12,000 12,000

GRAND TOTAL 88000

4.5. LICENSE PERMIT AND BY LAWS

4.5.1. LICENSE
The owner of the business will visit the municipal office to seek for license so as to start and
operate a business. The licensing authority will have to indicate that the owner of the business
will be given an okay or yes for commencing the business and taxes will be imposed to the
owner.

4.5.2. PERMIT
On the other hand the owner of the business will be issued with permit to run the business with
the specified period of time.
The business owner will be given date of commencing the business with the consent of
municipal offer.

4.5.3. LAWS
The government will impose by laws and regulations that will govern the operation and working
boundaries of the operating form of business activities. These by laws set up by the government
are to regulate the business and facilitate the proper progress of the business.

4.6. SUPPORTIVE SERVICES

The supportive services will be assisted by the Kenya commercial Bank which can be used as a
borrowing of a venture which can assist the transfer operation and returning bank money. It can
be used to send money from the point where the business is being carried to the banks for saving
purposes. It is also used as a means of paying employees working in the business operation.

13
14
 CHAPTER FIVE

5. PRODUCTION AND OPERATIONAL PLANS

The production will be improved by getting better warehouse and power to facilitate working of
the survey workshop and equipment charging of real time kinematic batteries and workshop
system power for computers displaced of equipment. The operational cost of goods and services
is being determined by the types of goods being required. Sometimes many items are costly
enough.

5.1. PRODUCTION FACILITIES / CAPACITY

Facilities - a room where surveying and equipment materials are kept for the purpose of
engineering construction and measurement, while they are still in a process administration is
determined. The enterprise may use vehicles to transport products to the market for them to fetch
good prices.
Capacity – is the volume or strength that enterprise carries a volume of certain units which can
be either bulky or light so that it can reach the market easily.

5.2. PRODUCTION COST

The surveying/engineering construction and measuring cost depends and varies in accordance
depending to the type of activity you are trying to run out. The required items sometimes are
costly enough.
Some of these items costs keep changing due to the demand by the customers, but most of them
have fixed prices whereby one cannot change it.

5.3. PRODUCTION PROCESS

This is done by survey engineers; there must be power source, means of transport for the survey
materials and personnel in charge of selling the products. There must be enough resources for the
activities to run successively.

5.3.1. FEATURES OF THE PRODUCTS

 High quality products
 Low prices of the products
 Accuracy in terms of performing activities or task i.e. computers
 Sufficient quantity

5.3.2. EXTERNAL FEATURES AFFECTING PRODUCTION PROCESS

 Stiff competition from other firms
 Lack of enough space for business expansion
 Government policy

5.3.3. INTERNAL FEATURES AFFECTINGB PRODUCTION PROCESS

 Lack of enough resources
 Lack of skilled personnel

15
  Lack of enough materials for survey construction and measures.

5.3.4. PLANS TO OVERCOME EXTERNAL AND INTERNAL FACTORS

The business owner should ensure that his goods are of good quality, lower prices and enough
resources this is to reduce competition from other firms.
The business should ensure that it has followed steps of acquiring the business legal license for
running and operating the business successfully this is to prevent the government from
interfering with the business.

5.4. LABOUR COST

This is the amount of money used by the management to pay the laborers that is those people
involved in the transportation of materials from the trucks to the storage facilities. This is done
due to heavy work carried out by them and it is not done as per month, it is given according to
the work done. The cost payment depends on the services that the casual are doing.

5.5. OVERHEAD COST

This is the expense the firm would spend apart from the labor cost. This overhead cost increases
the morale of employees who are working in an enterprise to make sure that the required
objectives are mate by the organization.
This can be done or achieved through hard work of the employees who wish to increase its
productivity in the firm.
This overhead cost will assist the firm to solve emergency issues when accrue in the
organization. It also assists to increase the number of employments in the firm.

5.6. PRODUCTION STRATEGY

These are ways of improving firm productivity since they have been bought and settled in the
firm. It can be improved by selling surveying materials at a cheaper price so that many people
may be attracted to buying of the products offered by the business; hence persuading the
customers to buy the products since no other firms are selling their goods at that price.

5.7. REGULATIONS AFFECTING OPERATION

You need to consider some specific regulations affecting the particular type of business

5.7.1. HEALTH REGULATIONS

The business top management will ensure that the geographical area under which the business is
operating must be clean and avoid careless disposal of used survey pegs, nylon papers and used
batteries this is to prevent people living around business from being affected.

5.7.2. TRADE MARKS AND COPY RIGHTS

The business should ensure that it operates within its area of work and not cross boundaries so as
to prevent inconveniences and misunderstanding among the people living around the business
due to trade marks.

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 5.7.3. SAFETY REGULATIONS
The business should work strictly under its operational activities and this is done by registering
to the ministry of trade and industry so that a certificate of incorporation will be issued by
registrar of business. This will compile with government rules and regulations so that your
business may be permitted to operate anywhere in the country. It will be also advantageous to the
business management people as it will be legal for them to purchase and supply their goods
without fear.

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 CHAPTER SIX

6. FINANCIAL PLAN

6.1. PROJECTED CASH FLOW STATEMENT FOR THE 1ST YEAR

MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC T.
Y A
OPENING 500 9000 1400 20000 2500 3000 3500 3700 4000 4300 4800 5400
STOCK 0 0 0 0 0 0 0 0 0 0

SALES 400 5000 6000 5000 5000 5000 2000 3000 3000 5000 6000 1000
0 0
T. SALES 900 1400 2000 25000 3000 3500 3700 4000 4300 4800 5400 6400
0 0 0 0 0 0 0 0 0 0 0
EXPENSES
ELECTRICITY 120 130 140 110 100 120 130 110 80 90 100 110
WATER 60 70 80 50 50 60 90 60 40 50 50 60
RENT 500 500 500 500 500 500 500 500 500 500 500 500
MAINTAINAN 200 100 120 130 140 100 120 100 120 100 110 130
CE
SALARIES 200 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
0
FUEL 250 300 280 300 800 300 180 200 200 220 200 180
INSURANCE 200 200 200 200 200 200 200 200 200 200 200 200
T.EXPENSES 333 3300 3320 3290 3290 3280 3200 3170 3140 3160 3160 3180
0
NET CASH 567 1070 1668 21710 2671 3172 3380 3683 3986 4484 5084 6082
FLOW 0 0 0 0 0 0 0 0 0 0 0

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 6.2. PROJECTED CASH FLOW STATEMENT FOR THE 2ND YEAR
MONTH JA FE MA AP MA JU JU AU SE OC NO DE T.
N B R R Y N LY G P T V C A
OPENING 200 240 340 370 410 480 500 580 620 720 800 840
STOCK 000 000 000 000 000 000 000 000 000 000 000 000
SALES 200 300 400 500 600 700 800 900 100 120 140 160
00 00 00 00 00 00 00 00 000 000 000 000
T. SALE 220 270 380 420 470 550 580 670 720 820 940 100
000 000 000 000 000 000 000 000 000 000 000 0000
EXPENSES
ELECTR 200 210 250 200 240 230 250 300 220 240 260 300
ICITY
WATER 400 500 600 700 800 820 840 860 920 940 960 980
RENT 100 100 100 100 100 100 100 100 100 100 100 1000
0 0 0 0 0 0 0 0 0 0 0
MAINTA 200 200 200 200 200 200 200 200 200 200 200 200
INANCE
SALARY 400 400 400 400 400 400 400 400 400 400 400 4000
00 00 00 00 00 00 00 00 00 00 00 0
FUEL 250 300 400 450 500 650 600 400 350 450 480 500
INSURA 200 200 200 200 200 200 200 200 200 200 200 200
NCE
T. 422 424 426 469 429 435 430 427 428 430 431 4318
EXPENSES 50 10 50 50 40 00 90 60 90 30 00 0
T. 177 227 337 373 427 506 536 627 677 776 896 9568
SALES.T 750 590 350 050 060 500 910 240 110 670 900 20
EXPENS
ES

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 6.3. PROJECTED CASH FLOW STATEMENT FOR THE 3RD YEAR
MONTH J F M A M J J A S O N D
Opening 250 450 670 920 1075 1250 1450 1670 1920 2120 2380 2620
stock 000 000 000 000 000 000 000 000 000 000 000 000

Sales 100 2200 250 150 1800 2000 2200 2500 2000 2600 2400 3000
000 00 000 000 00 00 00 00 00 00 00 00

T. sales 3500 6700 920 107 1255 1450 1670 1920 2120 2380 2620 2920
00 00 00 000 000 000 000 000 000 000 000 000

Expenses 222

Electricity 500 600 700 400 800 900 800 700 800 900 1000 9000

Water 600 700 800 900 800 900 700 600 700 800 900 1000
Rent 1200 1200 120 120 1000 1200 1200 1200 1200 1200 1200 1200
0 0
Mainte 1000 1000 120 130 1200 1400 1300 1200 1300 1500 1400 1200
nance 0 0

Salaries 8000 8000 800 800 8000 8000 8000 8000 8000 8000 8000 8000
0 0

Fuel 1000 1200 110 900 1000 1100 1200 1300 1000 1100 1200 1300
0

Insurance 400 400 400 400 400 400 400 400 400 400 400 400

Expenses 127 131 134 131 134 139 136 134 134 139 141 140
00 00 00 00 00 00 00 00 00 00 00 00

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 6.4. PROFORMA BALANCE SHEET FOR THE 3RD YEAR
Assets kshs Liabilities kshs

Fixed asset Loan

500,000
Building 10,000 Creditors 750,000
Motor vehicle 20,000 1,250,000
Rent 15,000 Sales 400,000
Electronics 25,000 Wages 400,000
70,000 Deposit 800,000
Current asset
Stock 200,000 Income tax 500,000
Bank 500,000 Payroll taxes 250,000
Debtors 300,000 Debts 1,000,000
Cash 1,000,000 6,950,000
Goods 2,000,000 NET GROSS = 4,200,000
8,200,000

4,000,000
NET GROSS = 4,200,000

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 6.5. BREAK EVEN ANALYSIS FOR THE 1ST YEAR
Contributions margin = total sales – variable cost
Total amount = total sales – variables cost
= 156340000 - 162000
= 15472000

6.5.1. BREAK ANALYSIS FOR THE 2ND YEAR

Contribution margin = total sales – variable cost
C.M = T.S V.C
17554000 – 162000 = 17392000

6.5.2. BREAK EVEN ANALYSIS FOR THE 3RD YEAR

Contribution margin = total sales – variable cost / total sales
= 173894000 – 324000 / 173894000
= 173570000 * 100% / 173894000
= 89.21%

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