KEGAD SOLUTIONS DATA MINING AND ANALYTICS

COMPANY.

Presented by:

KEVIN GACHATHI KIBUGI.

SMPQ/00425/2016

This is a business plan submitted for the partial fulfillment of the

requirement for the award of BSc Mathematics degree in the School of
Mathematics and Acturial Science, Department of Pure and Applied
Mathematics of the Technical University of Kenya.
DECLARATION.
I here by declare that this business plan is my original work and that it has been
presented for the award of a degree in BSc Mathematics at the Technical University
of Kenya.

NAME: Kevin Gachathi Kibugi

REG NO: SMPQ/00425/2016

SIGN: ………………………………………

DATE: ……………………………………..

SUPERVISOR DECLARATION.

This business plan has been submitted for examination with my approval as
university supervisor.

LECTURER: Mrs. Martha Achieng

SIGN: ………………................................

DATE: ……………………………………
ACKNOWLEDGEMENTS.
I take this opportunity to acknowledge Mrs. Martha Achieng for being informative
and a capable insignitor for the business plan.

I also wish to acknowledge the School of Mathematics and Actuarial Science and The
Technical University of Kenya at large for the chance offered in the institution to
learn important life skills such as drafting a business plan.
DEDICATION.
I wish to dedicate this work to myself and my future endeavors in entrepreneurship.
Table of Contents
DECLARATION...................................................................................................................................... 2
ACKNOWLEDGEMENTS...................................................................................................................... 3
DEDICATION.......................................................................................................................................... 4
EXECUTIVE SUMMARY........................................................................................................................ 7
CHAPTER ONE....................................................................................................................................... 8
1.0: BUSINESS DESCRIPTION....................................................................................................................................8
1.1: BUSINESS SPONSORS.........................................................................................................................................8
1.2: BUSINESS NAME.................................................................................................................................................9
1.3: BUSINESS LOCATION AND ADDRESS...........................................................................................................10
1.4: FORM OF BUSINESS OWNERSHIP.................................................................................................................10
1.5: TYPE OF BUSINESS.........................................................................................................................................11
1.6: PRODUCTS AND SERVICES.............................................................................................................................11
1.7: JUSTIFICATION OF BUSINESS OPPORTUNITY..............................................................................................12
1.8: INDUSTRY......................................................................................................................................................... 13
1.9: BUSINESS GOALS.............................................................................................................................................14
1.10: ENTRY AND GROWTH STRATEGY..............................................................................................................14
CHAPTER TWO................................................................................................................................... 17
MARKETING PLAN............................................................................................................................. 17
2.1: CUSTOMERS...................................................................................................................................................... 17
2.2: MARKET SHARE...............................................................................................................................................17
2.3: COMPETITORS..................................................................................................................................................18
2.4: METHODS OF ADVERTISING AND SALES PROMOTION............................................................................19
2.5: PRICING STRATEGY.........................................................................................................................................20
2.6: SALES TACTICS................................................................................................................................................ 21
2.7: DISTRIBUTION STRATEGY..............................................................................................................................21
CHAPTER THREE............................................................................................................................... 22
ORGANIZATION PLAN...................................................................................................................... 22
3.1: BUSINESS MANAGER.......................................................................................................................................22
3.2: KEY PERSONNEL............................................................................................................................................. 23
3.3: PERSONNEL...................................................................................................................................................... 26
3.4: RECRUITMENT, TRAINING AND PROMOTION............................................................................................28
3.5: REMUNERATION AND INCENTIVES..............................................................................................................29
3.6: LEGAL REQUIREMENTS..................................................................................................................................30
3.7: SUPPORTING SERVICES...................................................................................................................................30
CHAPTER 4.......................................................................................................................................... 31
OPERATIONAL PLAN........................................................................................................................ 31
4.1: PRODUTION FACILITIES AND CAPACITY.....................................................................................................31
4.2: PRODUCTION STRATEGY................................................................................................................................32
4.3: PRODUCTION PROCESS...................................................................................................................................33
4.4: RULES AND REGULATIONS AFFECTING PRODUCTION..............................................................................34
CHAPTER FIVE.................................................................................................................................... 36
FINANCIAL PLAN................................................................................................................................ 36
5.1: PRE-OPERATIONAL COSTS............................................................................................................................36
5.2: WORKING CAPITAL ESTIMATION.................................................................................................................36
5.3: CASH FLOW PROJECTIONS.............................................................................................................................36
5.4: PRO FORMA INCOME STATEMENT...............................................................................................................38
5.5: PRO FORMA BALANCE SHEET......................................................................................................................39
5.6: THE BREAK-EVEN POINT.............................................................................................................................. 41
5.7: EXPECTED PROFITABILITY RATIOS AND PERCENTAGES..........................................................................41
5.8: DESIRED FINANCING.......................................................................................................................................41
EXECUTIVE SUMMARY.
Kegad Solutions Data Mining & Analytics Company, Inc. is a company that is owned
and managed by Kevin Gachathi Kibugi and his partners. Kevin is going to be the Chief
Executive Officer of the organization. He is a qualified and well trained Data Miner and
Analyst waiting to graduate with a Degree in Math and with enough experience working
in data mining and analytics industry online.

This business focuses on providing data solutions to customers for better business
insights in their areas of work. We plan on pricing our customer with a consideration of
how the analytics will be done and the intensity of it.

Kegad Solutions targets SME’s specifically medium enterprises which store their data
across anywhere in the country. This is efficient due to the efficiency of the internet in
working with partners remotely.

Our competitive advantage is that we have fair prices for medium enterprises than most
big tech companies in Kenya and providing the same quality services as they do.
However, the business has various competitors with the same quality services as Kegad
Solutions.

The overall business plan is logical, clear and simple and of good quality.
CHAPTER ONE.

1.0: Business Description.

Kegad Solutions Data Mining & Analytics Company, Inc. is a licensed data mining and
analytics company that will be located in the heart of Nairobi City – Kenya. We will be
able to acquire a standard office facility that is highly suitable for the kind of business we
want to operate.

Kegad Solutions Data Mining & Analytics Company, Inc. is in the data mining and
analytics industry to provide several services to clients in different sectors of the
economy. We will develop products such as predictive analytics software, statistical
analysis software and data mining software with the aim of finding anomalies, patterns
and correlations within large data sets to predict outcomes.

We are geared towards helping our clients shift through all the chaotic and repetitive
noise in their data, help them understand what is relevant and then make good use of that
information to assess likely outcomes and also assist them in accelerating the pace of
making informed decisions. We are well trained and equipped to service the market
segments that require the services we will be offering.

We are in the data mining and analytics line of business to deliver excellent result
oriented services to all those who will patronize our services. We will also ensure that in
the line of carrying out our duty, we comply with the laws and regulations governing
businesses in Nairobi and Kenya at whole. Our employees are well trained and qualified
to handle the wide range of marketing research services.

1.1: Business Sponsors.

Kegad Solutions Data Mining & Analytics Company, Inc. is a private company that will
be owned and managed by myself, Kevin Kibugi and my patners. We are the financiers
of the business, but may likely welcome partners later, which is why there is a restriction
in the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

 Generate part of the startup capital from personal savings.

 Source for soft loans from wealthy allies.
 Apply for a venture capital fund.
We will be able to generate about 3,500,000 KES (Personal savings 1,000,000 KES and
soft loan from allies 2,500,000 KES) and we are looking forward to obtaining a venture
facility of 5,000,000 KES. All the papers and documents have been duly signed and
submitted.

1.2: Business Name.

The name of this business is KEGAD SOLUTIONS DATA MINING & ANALYTICS
COMPANY, INC.

Our Mission and Vision.

 Our vision is to establish a standard data mining and analytics company whose
services and brand will not only be accepted in the Kenya, but also in other parts
of Africa.
 Our mission is to provide result oriented data mining and analytics services and
other related services that will assist businesses, individuals and non-profit
 organizations in developing the models that can uncover connections within
millions or billions of records.
 We want to build a data mining and analytics company that can favorably
compete with other leading brands in the data mining and analytics industry.

1.3: Business Location And Address.

The business is located in MMID Studio Building. – 4th Floor, standard office facility
that is highly suitable for the kind of business we want to operate. Located in
Westlands Road, Parklands, Nairobi. This choice of location is favorable for Kegad Data
Mining and Analytics Inc. because in the urban places is where most companies whether
formal or informal store data on their customers. Therefore making this location good for
business on our side since with the right and targeted advertisements we will reach most
of our favorable customers. Most services we use as a company will be easier and
cheaper to get in this location for example internet, servers, computers, telephones etc.

The addresses and telephone number will be:

Kegad Solutions Data Mining and Analytics.

P.O.BOX 1172-00100,

Nairobi.

Telephone number: +254701407066

E-mail: [email protected]

[email protected]

1.4: Form Of Business Ownership.

Kegad Solutions Data Mining & Analytics Company, Inc. will be a private company that
is owned and managed by Mr. Kevin Kibugi and his immediate and trusted counterparts.
Kevin Kibugi is going to be the CEO of the organization.

He is a qualified and well trained Data Miner and Analyst with a Degree in Mathematics
with experience working in the data mining and analytics industry for many clients both
online and in person.

The main advantage of this type of ownership is to maintain ownership among trusted
counterparts or family for as long as the company lives. Given that this is a data mining
and analytics company, a public company would require an IPO thus influencing the
decisions made in the company moving forward. Instead, a private company will ensure
trust between the management and our clients which will play out as advantageous in
maintaining clients.

1.5: Type Of Business.

Kegad Solutions Data Mining & Analytics Company, Inc. is a start-up business in the
data mining and analytics industry to provide several services to clients in different
sectors of the economy. Our major activities will be to develop products such as
predictive analytics software, statistical analysis software and data mining software with
the aim of finding anomalies, patterns and correlations within data sets to predict
outcomes and some minor activities are more of field research based on our clients
relevant market. This business is meant to officially commence on 1ST October 2021 for
better preparation and planning.

1.6: Products And Services.

Kegad Solutions Data Mining & Analytics Company, Inc. is in the data mining and
analytics line of business to offer varieties of services within the scope of the data mining
and analytics industry in Africa.

These are the services that Kegad Solutions Data Mining & Analytics Company, Inc. will
be offering;

 Develop predictive analytics software. – We will provide efficient and effective

software to mine and analyze historical data patterns and extract information from
data to predict future outcomes. Such as RapidMiner, Alteryx and Explorium.
 Develop statistical analysis software. – We will provide SAS to solve the most
complex business problems.
 Develop data mining software. – Using Python and R, we will creatively mine our
clients data with efficient time utilization.
 Use data to help our clients increase revenue, cut cost, improve customer
relationship, reduce risk and more.
 Other data mining and analytics related research services.

Our services will promise quality insights, reliable information based on your data,
additional information using more research in our clients’ niche and efficient time
management.
1.7: Justification of Business Opportunity.

The world as we know it will continue to be increasingly driven by data. From a

corporate perspective, data analytics is the tool that helps business owners in this day and
age both understand how their business is faring and pinpoint areas that need attention.

In its function to deliver critical insights as to whether a business is moving in the right
direction, data analytics is fundamentally the key to effective decision-making. Skilled
data analysts, the right software and infrastructure will help to identify trends in the
market and explain the mechanics behind the success of one product or service versus
another which may not be faring as well.

Together with tools such as machine learning and artificial intelligence, part of the data
analytics picture is data mining, the process of collating large sets of data and analyzing
them to extract useful information from a broad test base. As a result, businesses can
utilize data analytics to better understand their client base in terms of customer trends and
behaviors. This information can of course be targeted at more effective marketing
strategies and more focused pitching of products and services.

Data analytics is the key to driving productivity, efficiency and revenue growth. The
results from analyzing data sets is going to tell an organization where they can optimize,
which processes can be optimized or automated, which processes they can get better
efficiencies out of and which processes are unproductive and thus can have resources
dedicated away. In this way cost effectiveness is increased as areas that are hording a
company’s finances unnecessarily can be identified and decisions can be made around
technologies that can be put in place to reduce operational and production costs.

There are so many ways data analytics can be useful and for the most part the how
depends on the organization but at its core it’s all about helping that organization make
the best decisions to get their business where it needs to be.

This also includes the problems that arise, large and small, which could lead to losses for
the company, among other things. Data analytics support a business in detecting those
problems and setting out a forecast of their potential impact. Thus, when used correctly
and driven by skilled data analysts, those data sets are highly valuable in helping an
organization make informed decisions in the running of the business and helping them to
mitigate any losses.

Data analytics has found its way across a variety of industries from banking and
healthcare to technology, manufacturing, and education. Candidates applying for data
analytics jobs typically require a bachelor’s degree in a subject like computer science,
mathematics, statistics, in some cases a master's in data analytics or similar will also be
necessary. Candidates should also be able to show some level of practical experience
working in data analytics or a related field.

The growth of data has consequently seen the jobs landscape evolve to include data
specialists, data architects and at the top of the food chain, Chief Data Officers (CDOs).
Professionals aspiring to apply their skills within the field of data analytics and business
intelligence can expect a decent income. Average salaries, according to Indeed, for entry
level and junior data analyst jobs in the UK start at upwards of around £30,000 moving
towards £50,000 and over for mid-level to senior roles depending on the organization and
candidate experience.

Data analytics strengthens business by encouraging disciplined thinking, keeping key

decision-makers focused, improving processes and optimizing communication between
business leaders and data experts in order to drive the right conversations for the success
of the business both for the clients and our company as well.

1.8: Industry.

Kegad Solutions Data Mining and Analytics Company, Inc. falls under the technology
industry. Data analytics is one of the most important areas of current tech industry. In the
tech industry, we have only just begun to scratch the surface of what is possible with data
analytics; from machine learning, to making predictions about the future, data analytics is
enabling us to harness the true power of data and turn it towards solving previously
unsolvable problems. Data analytics is used in most sectors today such as banking and
securities, communications and media, healthcare, education, manufacturing, insurance,
transportation, energy and sports. There is no specific sector for data analytics as every
sector has data it collects. Thus, in every sector there is the big data analytics sub sector
where our company falls under.

The big data analytics sub-sector was valued at US$ 37.34 billion in 2018 and expected
to reach US$ 105.08 billion by 2027. Increasing volume of data and adoption of big data
tools to spur revenue growth during the forecast period. The rapidly increasing volume
and complexity of data are due to growing mobile data traffic, cloud-computing traffic
and burgeoning development and adoption of new technologies which is driving the
growth of big data analytics market. The banking sector contributed 13.9 percent of the
big data analytics value. Since data has transitioned from nice to have to a must-have
commodity, there has been demand for data analytics talents. There is a large skill gap
making it a demanding career and a report from Indeed indicates in 2019 there was a
344% rise in demand for data science specialists. Which shows there is really quit a large
number of employees in the data area in 2021.
In addition, the SME segment expected to grow at a remarkable pace during the forecast
period. This can be associated with the increasing trend of digitalization and the adoption
of big data technology among others. Here is where Kegad Solutions Data Mining and
Analytics company falls under as we are expected to grow as an SME.

1.9: Business Goals.

Short-term goals.

Produce Quality Products or Services.

Enhance Customer Satisfaction.

Medium-term goals.

Increase Market Share.

Be an Employer of Choice.

Long-term goals.

Create Value for the Stockholders.

Gain an Industry-wide Recognition for Excellence.

1.10: Entry And Growth Strategy.

This is the summary of the SWOT analysis that was conducted for Kegad Solutions Data
Mining & Analytics Company, Inc.;
 Strength:

Our core strength lies in the ability to quickly adopt new technology, access to skilled and
flexible workforce and provision of relevant results. Also, we have a team of experts in
the industry, a team with excellent qualifications and experience in data mining and
analytics.

Aside from the synergy that exists in our carefully selected team members and our strong
online presence, Kegad Solutions Data Mining & Analytics Company, Inc. is well
positioned in a business community with the right demography and we know we will
attract loads of clients from the first day we open our doors for business.

 Weakness:
As a new data mining and analytics company in Kenya, it might take some time for our
organization to break into the market and gain acceptance especially from top profile
clients in the fast – growing data mining and analytics industry; that is perhaps our major
weakness.

 Opportunities:

The opportunities that are available to data mining and analytics companies are unlimited
considering the fact that the data mining and analytics industry is a dynamic industry.
Every organization that has products and services to sell would always look for useful
data and strategies that will help them reach out to their target market hence the need for
the services of data mining and analytics companies.

 Threat:
Just like any other business, one of the major threats that we are likely going to face is
economic downturn. It is a fact that economic downturn affects purchasing/spending
power. Another threat that may likely confront us is the arrival of a data mining and
analytics company in same location where our target market exists and who may want to
adopt same Business model like us.

Here is also a summary of the 4P’s of marketing for Kegad Solutiond Data Mining and
Analytics Company, Inc.:

Products.

Cognitive Solutions are products that help businesses process large amounts of data into
insights for managerial decisions and, consequently, competitive advantage. For example,
Kegad’s cognitive systems will help clients develop effective strategies by determining
patterns in consumer behaviors based on data collected through sales transactions. On the
other hand, Business Services include consulting, application management, and global
process services. The company also offers integration software under the Technology
Services & Cloud Platforms product segment. In addition, Systems products are focused
on servers and operating systems software. Kegad’s organizational structure reflects the
focus on these core product lines. Each product line is represented as a division in the
firm’s corporate structure.

Place.

Kegad’s official website enables customers to access valuable information about the
company’s products. The website is a convenient way to communicate with target clients
around the world. Customers can also create and pay for accounts to use the company’s
services through the official website. On the other hand, business partners are a
company’s traditional way of reaching its target market. For example, business partners
like authorized distributors are major channels for distributing IBM products, even before
the advent of the Internet, which also might work for Kegad in small-scale. This aspect of
the marketing mix influences the location strategy in Kegad’s operations management.

Promotion.

Advertising takes a primary role in promoting Kegad’s products. For example, we plan
on advertising in print media as well as online media, inclusive of popular news websites.
On the other hand, direct marketing takes the form of direct communications between the
company and corporate customers, especially in introducing new products to current
clients. For instance, we plan on sending emails about new products to firms that already
use our systems and services after establishing our selves. In addition, sales promotion is
occasionally used to increase the company’s share of the information technology market.
For example, discounts and free trials will be offered to attract more customers to some
of the firm’s products, such as cognitive services. Personal selling is applied as a way of
addressing the needs of specific customers, such as those in nearby markets. This
communications tactic is also occasionally applied to support direct marketing. Public
relations involve sponsorships of events, such as professional soccer events like the
Kenya Premier League. Public relations tactics influence Kegad’s corporate social
responsibility strategy and some activities in employee engagement programs.

Prices.

In the market-oriented pricing strategy, the objective is to set prices that are comparable
with the prevailing prices for some products in the information technology industry. For
example, Kegad’s products, such as cognitive solutions, are priced competitively,
especially because of high competition and considerable price sensitivity affecting some
products in the specific market. On the other hand, the value-based pricing strategy is
applied in some of the company’s product lines. The objective of this strategy is to
determine suitable prices and price ranges based on how customers perceive and need our
products. For instance, the company’s customized business analytics for restaurant chains
are priced based on the value-based pricing strategy.
CHAPTER TWO

MARKETING PLAN.
2.1: Customers.
Kegad Solutions Data Mining & Analytics Company, Inc. is in business to service a wide
range of customers in Nairobi and all across the Kenya and Eastern Africa. We will
ensure that we target both private companies and government organizations.
In view of that, we have created strategies that will enable us to reach out to various
corporate organizations and individuals who we know can’t afford to do without our
services.  We have conducted our market research and survey and we will ensure that we
meet and surpass the expectations of our clients. Below is a list of the people and
organizations that we have specifically market our services to;

 Banks, Insurance Companies and other related Financial Institutions. – For

monitoring financial markets through network activities and reduction of
fraudulent transactions.
 Blue Chips Companies. – From developing new products to handling consumer
needs through predictive analytics.
 Transportation Organizations. – Better route planning, traffic management and
logistics mainly incorporated by the government thus the public sector.
 Retail Companies. – To predict and manage staffing and inventory requirements.
 Manufacturers and Distributors. – To increase productivity by using big data to
enhance supply chain management and optimum allocation of resources.

2.2: Market Share.

The Information Technology industry in Kenya as of 2020 has a market share of 764
billion Kenyan Shillings which is 8% of the Kenyan GDP. The Market Size of Data
Science and Analytics section in Information Technology is at least 2% of the
Information Technology Industry which is approximately 15 billion Kenyan Shillings.
Having big companies in Kenya such as IBM and Sigma Data Systems which work for
bigger Data Analytics firms in Kenya. There fore our served available market (SAM) is
about 1 billion Kenyan Shillings and the most served obtainable market (SOM) is 2% of
the SAM which is 20,000,000 KES which is bound to rise to 50,000,000 KES in a year.
As illustrated on the pie chart below:
 Market Share.

Others
29%
IBM
40%

Kegad Data Mining & Analytics

2%
eLuminous Technologies
6%

Lafont Innovations LLC

10% Sigma Data Systems
12%

2.3: Competitors.

We are aware that to be highly competitive in the data mining and analytics industry
means that we should be able to develop models that can uncover connections within
millions or billions of records; increase revenue, cut costs, improve customer
relationships, reduce risks and more. Some of our main competitors are:

Sigma Data Systems. Located in Gazi, Kenya.

Sigma prides itself on understanding the criticality of each piece of data in today’s world
and in the next generation. Sigma work in a way where it collects data, transforms it for
analysis and runs analytical algorithms. Their services include data analytics, AI and ML
development, Predictive analytics and Data warehousing. The quality of there products is
state of the art and that is why Sigma is one of our biggest competitors. They use a good
virtual service distribution through their website, email and phone as in this sector
services can be offered remotely.

eLuminous Technologies Pvt Ltd. Located in Changamwe, Kenya.

eLuminous Technologies Pvt Ltd. company prides itself in offering state-of-the-art

Business Intelligence, Web Development, Web Design, Front End Development and
Mobile Apps Development Services and has years of experience in offering personalized
solutions to clients across the globe. eLuminous has served e-commerce, banking, media
and healthcare industries. They use their experience and years of doing business as a
good marketing strategy and use the virtual service distribution and selective distribution
strategy.

Lafont Innovation LLC. Located in Nairobi, Kenya.

Lafont have categorized their operations in two significant segments below, which focus
on the development and expansion of Lafont Innovations Limited. As Developers, they
focus on providing invaluable technology-based business concepts for purposes of
execution by third-parties. Their services cover system maintenance, cyber threats and
quality assurance and are of high quality. Having served big companies they use a direct
sales distribution strategy with exclusives.

Kegad Solutions® Data Mining & Analytics Company, Inc. is coming into the market
well prepared to favorably compete in the industry. Our competitive advantage is that we
will ensure our pricing policy is appropriate, plus the fact that we having a good
reputation and also economies of scale.
Our staff is well groomed in all aspects of data mining and analytics and all our
employees are trained to provide customized customer service to all our clients. Our
services will be carried out by highly trained professionals who know what it takes to
give our highly esteemed customers value for their money.

Lastly, all our employees will be well taken care of, and their welfare package will be
among the best within our category in the industry. It will enable them to be more than
willing to build the business with us and help deliver our set goals and achieve all our
business aims and objectives.

2.4: Methods Of Advertising And Sales Promotion.

We are in the data mining and analytics business to become one of the market leaders and
also to maximize profit, hence we are going to explore all available means to promote our
company.
Kegad Solutions Data Mining & Analytics Company, Inc. has a long – term plan of
working for clients all across the Africa and other parts of the world, which is why we
will deliberately build our brand to be well accepted in Kenya before venturing out.
As a matter of fact, our advertising strategy is not solely for winning customers over but
to effectively communicate our brand to the general public. Here are the platforms we
intend leveraging on to promote and advertise Kegad Solutions Data Mining & Analytics
Company, Inc.;

 Place adverts on both print (community based newspapers and magazines) and
electronic media platforms.
 Sponsor relevant community research programs.
  Leverage on the Internet and social media platforms like Instagram, Facebook,
twitter, YouTube, Google + et al to promote our brand.
 Install our billboards in strategic locations all around Nairobi.
 Distribute our fliers and handbills in targeted areas.
 Ensure that all our workers wear our branded shirts and all our vehicles are
branded with our company’s logo.

The sales promotion strategy adopted by Kegad Solutions Data Mining & Analytics
Company, Inc. will be based on generating long-term personalized relationships with
customers. In order to achieve that, we will ensure that we offer all – round data mining
and analytics services at affordable prices compare to what is obtainable in and around
Nairobi.
All our employees will be well trained and equipped to provide excellent and
knowledgeable data mining and analytics services and customer service. We know that if
we are consistent with offering high quality and result oriented data mining and analytics
at an affordable sales price, we will increase the number of our customers by more than
25 percent for the first year and then more than 40 percent subsequently.

2.5: Pricing Strategy.

Generally, data mining and analytics services are billed on the results produced and flat
fees on a weekly or monthly basis as it applies. As a result of this, Kegad Solutions Data
Mining & Analytics Company, Inc. will charge our clients flat fees except for few
occasions where there will be need for us to charge special clients on hourly basis.

At Kegad Solutions Data Mining & Analytics Company, Inc. we will keep our fees below
the average market rate by keeping our overhead low and by collecting payment in
advance. In addition, we will also offer special discounted rates to all our clients at
regular intervals.

 Payment Options

The payment policy adopted by Kegad Solutions Data Mining & Analytics Company,
Inc. is all-inclusive because we are quite aware that different customers prefer different
payment options as it suits them but at the same time, we will ensure that we abide by the
financial rules and regulation of the Kenya.

Here are the payment options that Kegad Solutions Data Mining & Analytics Company,
Inc. will make available to her clients;

 Payment via bank transfer

  Payment with online platforms such as PayPal.
 Payment via credit cards
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer
 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make
payment for our services without any stress on their part. Our bank account numbers will
be made available on our website.

2.6: Sales Tactics.

Kegad Solutions Data Mining and Analytics plans on using the direct sales strategy
whereby we take advantage of email marketing and social media. Email marketing can
offer a greater reach provided we stray away from automated marketing programs as it
looks like spam. Social media is perfect for direct sales as we can expand to a greater
market worldwide and build our own virtual community. For customer service,
According to the latest sales research, 80 percent of sales transactions require 5
interactions after the first contact with a customer. We understand that we must nurture
viable leads until an action is taken. We will send emails, direct mail, make phone calls
or send brochures to customers at designated intervals. By taking this action, your
customers will think of you when it is time to make their next purchases. We will also do
our best to solve your customers’ problems and develop the ability to actively listen to
them.

Our public relations strategy involves, research and careful planning in our PR work.
Research is an essential part of public relations management as it allows you to be
strategic. This ensures the communication is specifically targeted to audiences who want,
need, or care about the information. Studying PR campaigns that we would like to take
inspiration from. See what the competition is up to and think about outmaneuvering
them.

2.7: Distribution Strategy.

Kegad Solutions plans on using a producer-consumer channel of distribution. Our
services are put into as many online locations as possible with the use of intensive
distribution strategy. This method hinges on making our services available in multiple
locations for our customers. Also we will opt for exclusive distribution, to make a deal
with a good advertising company to publish our services through their specific storefront
only. This channel reduces too many middlemen thus reducing the distribution cost and
is much favorable in our type of business. Main problem we may encounter is anti-trust
from our targeted customers although with quality marketing we can bypass the problem.
CHAPTER THREE

ORGANIZATION PLAN.

3.1: Business Manager.

Myself as one of the highest-ranking executive at Kegad Solutions Data Mining and
Analytics, elected as the business manager or CEO. I will be primarily responsible for
leading the company or organization and making major decisions for the organization.
Other duties include:
Act as the figurative head of the organization when communicating with stockholders,
government entities and the general public.
Lead the development of the organization's long- and short-term strategies.
Manage overall operations and make major decisions affecting the organization.
Manage the organization's resources.
Negotiate or approve agreements and contracts for the organization.

As most CEO’s have experience working in upper management in the same or similar
industry I will learn from those before me and equip myself with the skills that I do not
hold myself. Some skills and qualifications I have include:

 Good communication skills.

 Problem-solving skills.
 Leadership skills.
 Time management skills.
 Decision-making skills.
 Prioritization and delegation skills.

We hope to leverage on their expertise to build our brand. When hiring, we will look out
for applicants that are not just qualified and experienced, but honest, customer centric and
are ready to work to help us build a prosperous business that will benefit all the stake
holders.

Kegad Solutions Data Mining and Analytics will be divided into departments namely;
 Administration. – This department is responsible for running the whole business
and making decisions based on the company success. This department is headed
by the Chief Executive Officer.
 Development team. – This department is responsible for coming up with software
for better analytics of data and also maintaining our data warehouses and
softwares. This department is supervised by the Chief Technology Officer.
 Analytics. – The analytics team is the most important team as it serves in data
mining and analyzing the data for insights in order to give the clients feedback
 and solutions to their business problems. This department is supervised by the
Chief Data Officer.
 Human Resource. – This department takes care of our employees and makes sure
every employee is in a good and health state to work at our organization. It is
managed by the Human Resource Manager.
 Marketing and Research. – This is the team for getting our name out there for
clients to hear and consult us. It is supervised by the Chief Marketing Officer.

Here is Kegad Solution Inc. organization chart;

Manager

Chief Data Chief Financial Chief Technology Chief Marketin

Officer Officer Officer Officer

Data Analysts
Accountants Marketing
Software Developers
Executive

3.2: Key Personnel.

Chief Data Officer.

The Chief Data officer sits at a unique crossroads between the data analytics team and the
rest of the C-suite and senior management. As a result, the Chief Data Officer needs to be
able to bridge the gap between business objectives and data projects. Some of the skill
sets necessary for a Chief Data Officer include:
1. Expert knowledge in statistics, programming languages, database technology,
and data visualization.
2. The ability to engage with both technical and non-technical audiences and
explain the business value of a given project.
3. Strong communication skills, business acumen, and knowledge of the industry
s(he) works in.
 4. While not a required qualification, many Chief Data Officer have a computer
science, engineering, or related degree.
5. A significant number of years of “in the field” practitioner experience under
his or her belt.
Key Chief Data Officer Responsibilities are:
1. Helping data teams determine the best route for tackling use cases (which
might be determined by understanding the scope, identifying possible
techniques and approaches, and outlining both the business and technical
advantages or drawbacks to each one).
2.
3. Navigating ethical concerns around machine learning and ways to address
them (including but not limited to establishing a sound governance strategy,
standards for data quality and integrity, and a Responsible AI framework).

4. Maintaining a pulse on the various data science, machine learning, and AI

projects throughout the organization in order to effectively track progress and
results.

5. Communicating insights back to the business, such as KPIs from the data
science team, as well as communicate the clients’ short- and long-term
insights and vision to help them gain buy-in from their business units.

Chief Marketing Officer.

The CMO is responsible for the marketing team decisions as he is the supervisor of the
research and marketing department in our company. Some of the skill sets required are:

1. Superb analytical skills.

2. Demonstrated ability to lead and inspire our team.
3. Outstanding communication and interpersonal skills.
4. Flexibility.
5. Passionate customer advocacy.
6. Thorough knowledge of marketing principles, our brand and service
management.
7. Deep understanding of changing market dynamics in data analytics.
8. Entrepreneurial spirit.
9. A bachelor's degree is usually required and an advanced degree in marketing
or business (MBA) is preferred. In addition, most CMOs have approximately
10 years of well-rounded marketing or business development experience in
positions of increasing responsibility- with a focus on marketing expansion- as
well as three to five years of experience in a leadership role.

Some of the roles and responsibilities of the CMO are:

1. Set marketing goals and objectives.

2. Plan, implement and manage marketing strategy.
 3. Contribute to the overall growth of the company.
4. Review and manage content marketing strategy.
5. Determine KPIs for marketing department.
6. Keep the marketing budget in check.
7. Track KPIs on a regular basis and present reports.
8. Work with sales and development and customer success teams.
9. Create and present the annual marketing plan and strategy.
10. Use data and reports to make evidence-based decisions.

Chief Financial Officer

The CFO is responsible for managing the financial decisions of our company. Equipped
the following responsibilities:

1. Executing the company's financial strategy.

2. Developing plans for growth to increase company profit while also reducing
expenditure.
3. Identifying investment opportunities and managing mergers and acquisitions.
4. Assisting the Chief Executive Officer (CEO) to develop financial plans.
5. Managing accounting procedures.

CFO use various skills and industry knowledge to effectively complete the duties for this
role/ These skills can include:

1. Decision-making and problem-solving skills.

2. Leadership skills with the ability to delegate, motivate and inspire team
members.
3. Honesty and integrity.
4. Strong written and verbal communication skills.
5. Ability to manage time effectively.

Chief Technology Officer

Chief Technology Officer (CTO) has the following duties and responsibilities:

1. Lead the strategy for technology platforms, partnerships and external

relationships.
2. Represent the technological agenda in staff meetings and when making hiring
decisions.
3. Identify, compare, select and implement technology solutions to meet current
and future needs.
4. Develop, track and control the development of annual operating and capital
budgets for purchasing, staffing and operations.
5. Manage and optimize infrastructure assets to satisfy internal financial targets.
6. Create overall technology standards and practices and ensure adherence.
7. Consolidate our technology platforms and create plans for each.
 8. Track, analyze and monitor technology performance metrics.
9. Oversee all system design and changes in system architecture.

Chief Technology Officer (CTO) should have the following requirements and
qualifications:

1. Previous working experience as a CTO (Chief Technology Officer) for 3

years.
2. MA in Engineering, Computer Science or similar relevant field.
3. In-depth knowledge of web systems architecture, design and development.
4. Hands on experience with complex project management.
5. Outstanding communication, interpersonal and leadership skills.
6. Excellent organizational and time-management skills.
7. Effective negotiation and vendor management skills.
8. Proactive problem solver.
9. Attention to details.

3.3: Personnel.

Data Miner/Data Analyst

1. Develops records, management processes and policies.
2. Identifies areas to increase efficiency and automation of processes.
3. Sets up and maintain automated data processes.
4. Identifies, evaluates and implements external services and tools to support
data validation and cleansing.
5. Produces and tracks key performance indicators.
6. Develops and supports reporting processes.
7. Monitors and audits data quality.
8. Liaises with internal and external clients to fully understand data content.
9. Gathers, understands and documents detailed business requirements using
appropriate tools and techniques.
10. Designs and carries out surveys and analyze survey data.
11. Prepares reports for internal and external audience using business analytics
reporting tools.
12. Creates data dashboards, graphs and visualizations.
13. Provides sector and competitor benchmarking.
Miners and analyzes large datasets, draw valid inferences and present them successfully
to management using a reporting tool. They should have a Bachelors degree in
mathematics, statistics or computer science. The required skills are being proficient with
Python, R and Stata, good communication skills and proficient with data visualization
software. Experience working with large amounts of data.

Software Developer
 1. Responsible for developing predictive analytics software, statistical
analysis software and data mining software et al.
2. Keeps up with the latest software and happenings in the industry.
3. Handles any other duty as assigned by the CEO.

They should have a Bachelors degree in computer science. The required skills are being
proficient with Python, Java or Front-end web development, good communication skills
and proficient with data visualization software. Experience on developing software on
Github.

Office Administrator
1. Responsible for overseeing the smooth running of HR and administrative
tasks for the organization.
2. Designs job descriptions with KPI to drive performance management for
psychologists, social workers and marriage counselors.
3. Regularly holds meetings with key stakeholders to review the effectiveness of
the organizations’ Policies, Procedures and Processes.
4. Maintains office supplies by checking stocks; placing and expediting orders;
evaluating new products.
5. Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
6. Defines job positions for recruitment and managing interviewing process
7. Carries out staff induction for new team members
8. Responsible for training, evaluation and assessment of employees
9. Responsible for arranging travel, meetings and appointments
10. Oversees the smooth running of the daily activities for the organization.

Marketing Executive
1. Recognizes, arranges, and reaches out to new clients, and business
opportunities et al.
2. Identifies development opportunities; follows up on development leads and
contacts; participates in the structuring and financing of projects; assures the
completion of development projects.
3. Writes winning proposal documents, negotiate fees and rates in line with
organizations’ policy.
4. Responsible for handling business research, market surveys and feasibility
studies for clients.
5. Responsible for supervising implementation, advocate for the customer’s
needs, and communicate with clients.
6. Develops, executes and evaluates new plans for expanding sales.
7. Documents all customer contact and information.
8. Helps to increase sales and growth for the organization.

Accountant
1. Responsible for preparing financial reports, budgets, and financial statements
for the organization.
 2. Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex
proposed projects; conducts market research to forecast trends and business
conditions.
3. Responsible for financial forecasting and risks analysis.
4. Performs cash management, general ledger accounting, and financial reporting
for one or more properties.
5. Responsible for developing and managing financial systems and policies.
6. Responsible for administering payrolls.
7. Ensures compliance with taxation legislation.
8. Handles all financial transactions for the organization.
9. Serves as internal auditor for the organization.

Client Service Executive

1. Welcomes clients and visitors by greeting them in person or on the telephone;
answering or directing inquiries.
2. Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone)
provides the client with a personalized customer service experience of the
highest level.
3. Through interaction with clients on the phone, uses every opportunity to build
client’s interest in the company’s products and services.
4. Manages administrative duties assigned by the principal partners in an
effective and timely manner.
5. Consistently stays abreast of any new information on the organizations’
services, promotional campaigns etc. to ensure accurate and helpful
information is supplied to clients when they make enquiries.
6. Receives parcels/documents for the organization.

3.4: Recruitment, Training And Promotion.

Since we are a startup company, we require a short recruitment process of only a few
people. Attracting the right candidates may be an intense procedure since when done
badly and thus redone thus re-advertised. The first step will to carry out a job analysis to
identify the requirements needed. Then we will come up with job descriptions for every
position required in our company. Then do some targeted advertisements since all we
need is just a few positions filled. Then the selection process of choosing the right person
for the job requires that we assess the candidates using tests and interviews.

Training new individuals in the company will have a training scheme which is done in
two ways: On the job training where the newbies learn through experience at work and
off the job where there shall be courses especially for data analysts and software
engineers. Promotions within Kegad Solutions will depend on the qualification shown by
an employee to do a more advanced job through monthly assessment of their day-to-day
activities.
3.5: Remuneration And Incentives.

The table below will show the remunerations of the employees listed above which
includes salaries, allowances and other benefits we shall give for their services.

Title Basic Salary Allowance Benefits

CEO 85,000 KES 12,000 KES Restricted Stock
options
CFO 52,000 KES 11,000 KES Stock options
CTO 57,000 KES 12,000 KES Stock options
CMO 50,000 KES 11,000 KES Stock options
CDO 55,000 KES 12,000 KES Stock options
Data Analyst 50,000 KES 10,000 KES Executive promotion
Software Developer 50,000 KES 10,000 KES Executive promotion
Office Admin 20,000 KES 7,000 KES Annual Pay raise
Marketer 23,000 KES 7,500 KES Annual Pay raise
Accountant 35,000 KES 7,000 KES Annual Pay raise
Client Servers 20,000 KES 6,000 KES Annual Pay raise
TOTAL 497,000 KES 106,000 KES

The salaries may be quite low but since we are a start-up company with few employees,
they may rise drastically after the first year of business.

Employees will also have non-financial incentives. Which include:

Competition:
Competition is a kind of non-financial incentive. If there is a healthy competition among
the individual workers or groups of workers. It will lead them to get their personal or
group goals in a better way.

Praise:
Praise satisfies one’s needs. In fact, praise is more effective than any other incentive.
However, this incentive should be used with great care because praising an incompetent
worker would create resentment among competent workers. Of course, occasionally, a
pat on the back of an incompetent worker may act as an incentive to him for
improvement.

Workers Participation in Management:

Workers’ participation in management provides a significant incentive to the workers. It
gives them psychological satisfaction that their voice is being heard as workers’
participation in management provides for two way communication.

Opportunity for Growth:

Opportunity for growth is another incentive. If the workers are provided opportunities for
their advancement and growth and to develop their personality, they feel very much
satisfied and become more committed to organization objectives.

3.6: Legal Requirements.

Kegad Solutions Data Mining and Analytics company plans on opening a business on the
jurisdiction of the Nairobi County, therefore we require a single business permit. The
Unified business permit in Kenya, Nairobi county is suitable for our business. Unified
business permit consolidates all the licenses required to run our business including:
1. City Council business permit. – This is an annual business permit and depending
on our industry and premises size, it is bound to cost approximately Ksh. 30,000.
2. Fire Safety Certificate. – All businesses require to be fire safety certified therefore
with the purchase of the right fire safety equipment and a fire inspector check on
our premises we will obtain a Fire Safety Certificate.

The registration of our Company will be about Kshs 45,000. This process is done by a
certified lawyer. We will choose a reliable lawyer to handle the matter for us and it
should be done in about 2 weeks. With a good lawyer, we should have a certificate of
incorporation, and for an extra fee (about Kshs.2500) we will get a company seal.

A Kenyan company can have directors who live abroad and are not Kenyan citizens.
However, at least one of the directors should be a Kenyan citizen so that they can access
the eCitizen platform and submit certain forms with ease. As the business manager of
Kegad Solutions, I plan on having an eCitizen account as it is essential for directors of
private companies registered in Kenya.

3.7: Supporting Services.

Kegad Solutions Data Mining and Analytics Inc. requires a certain business infrastructure
for us to run efficiently and effectively. Some of the services are:
 Network Services
This is for basic communications and network services for our employees for
faster communication and Internet research. The best network provider in Kenya
is Safaricom and therefore Kegad Solutions will opt for Safaricom for network
services.
 Business Services
For services such as payroll and financial controls and banking we will rely on
Kenya Commercial Bank for most of our financial and banking services.
 Computing
Foundational technologies such as operating systems, databases, security tools
and content management platforms will be managed on our Microsoft corporate
accounts.
  IT Services
At Kegad we prefer IBM to handle our core IT services such as data backup, data
warehouses, information security etc.
 Legal Services
For legal representatives our company will work with MMS Advocates, a Kenyan
corporate law firm for legal advice, legal representation and transactional services
located in Upper Hill, Nairobi.

CHAPTER 4

OPERATIONAL PLAN

4.1: Prodution Facilities And Capacity.

Kegad Solutions Data Mining and Analytics Company is a service company which
provides data driven insights. Most of our production facilities will obvious be softwares
and fewer hardware such as computers and telephones. Most data science software is free
and comes pre installed in our digital workstations. Some of the production facilities will
include:
 Computers
Computers are where the data mining and analysis will be executed therefore
making them completely necessary in our company. Every employee’s desk will
be equipped with a Data Science Workstation computer which is fast and durable
enough to handle big data and all the softwares used in data mining and analysis.
 Softwares
Most of data mining and analysis involves using tools designed to accelerate and
make big data analysis easier. This tools can be free or sold by their respective
companies. Most tools needed for data mining and analysis are Hadoop, R,
Python, Apache Spark, Tableau, Tensorflow etc. which will be acquired and and
installed on every work station.
 Server
Some softwares such as Hadoop are designed to run on hundreds of individual
computers. Therefore a private server is very useful in efficiently managing and
distributing infrastructure resources to launch multiple data mining and analysis
projects. The server basically processes large amount of data and manage bid data
software tools.
 Telephones
The telephones are basically for communication among the organization or with
clients working with our company.
 Projectors
 Being a data mining and analytics company, we must provide our findings to our
clients using some data visualization softwares such as Tableau. Client may come
to the offices and a presentation is made which is visible and understandable to
our clients thus the use of projectors in conference rooms.
Equipment No. Capacity Cost per Acquisitio Supply Repairs Suppliers
unit n
Computers 10 1TB 75,000 Buy Immediately When HP
needed
Softwares 10 - 30,000 Buy Immediately When Data
needed Tools
vendors
Office 10 3x1.5 7,500 Buy Immediately When -
Desk & needed
Chair
Server 1 2TB 100,000 Buy Immediately When Dell
needed
Telephones 10 K4 6,000 Buy Immediately When IBM
needed
Projectors 2 1080p 50,000 Buy Immediately When LG
needed
Office 10 - 3,000 Buy Immediately n/a -
Stationery
Total 1,361,000

The company’s premise is an office building where we shall rent out a floor to conduct
our business. It will consist of offices, front desk area and two conference rooms for
meetings. The location is in Westland, Nairobi City where it is efficient to meet with
clients since most companies are based in Nairobi.

4.2: Production Strategy

Data has been compared to oil as it fuels innovation engines. Needless to say, it takes
incentives to graduate a data analysis project from a project into a production application.
Kegad Solutions production strategy will consist of workflows, data sources and
distribution channels for optimum service to our clients.

Data products emerge as an application layer built on top of business workflows. Data
products have a record of success when deployed on operational settings such as process
automation, customer support and regulation compliance. We will serve our clients in
most areas like this, which will lead to success rates dealing with our clients thus
maximizing profits.
Data sources may be public, private or synthetic. Public data is available for everyone to
access, modify, use in their endeavors. Private data I unavailable to the masses and it is in
most companies where they will entrust us to work with. Private data is the backbone of
companies like Google, Amazon and Facebook. Using private data companies can get
most results according to their niche. We can work on product recommendations,
clustering, network improvements etc. This is the main work of our company and will
help us build trust with our clients and utilize our core facilities to maximum.

With data products well built for our clients, it needs to be delivered to them. Each
distribution channel has different product pricing. Using the marketplace the pricing is
mostly value-based with a sell through contract compared to Direct channel where a build
and complete strategy is used and a sell-to contract. Mostly we will be working with the
two channels, that is Direct and Marketplace distribution channels which will most
definitely maximize profit with the right marketing.

4.3: Production Process

Data mining and analysis follows a series of steps from getting the raw data from our
clients to coming up with insights at the very final step which then ensures the client pays
us for our services. The steps may not be the same all through as it depends on the client.
These are the most general steps:

Step 1: Frame the problem

The first thing we have to do before we solve a problem is to define exactly what it is.
We need to be able to translate data questions into something actionable.

We will often get ambiguous inputs from the people who have problems. We will
develop the intuition to turn scarce inputs into actionable outputs–and to ask the
questions that nobody else is asking.

Step 2: Collecting the raw data needed for your problem

After defining the problem, we will need data to give us the insights needed to turn the
problem around with a solution. This part of the process involves thinking through what
data we need from our client and finding ways to get that data, whether it’s querying
internal databases, or purchasing external datasets.

Step 3: Process the data for analysis

Having all of the raw data, we will need to process it before we can do any analysis.
Oftentimes, data can be quite messy, especially if it hasn’t been well maintained. We will
see errors that will corrupt your analysis: values set to null though they really are zero,
duplicate values, and missing values. It’s up to our data analysts to go through and check
the data to make sure we get accurate insights.
Once we’re done cleaning the data, we’ll be ready for exploratory data analysis (EDA).

Step 4: Explore the data

The difficulty here isn’t coming up with ideas to test, it’s coming up with ideas that are
likely to turn into insights. Our clients have a fixed deadline for the data science projects
so we’ll have to prioritize our questions.

Our data analysts and software engineers will have to look at some of the most interesting
patterns that can help explain our clients data using company softwares. From that we can
begin to trace patterns we can analyze more deeply.

Step 5: Perform in-depth analysis

This step of the process is where we have to apply your statistical, mathematical and
technological knowledge and leverage all of the data science tools at our disposal to
crunch the data and find every insight you can.

In this case, we might have to create predictive models that compares certain patterns
from our clients data. If we asked a lot of the right questions while framing our client’s
problem, we may have come up with accurate insights for our clients.

We can now combine all of those qualitative insights with data from your quantitative
analysis to craft a story that moves our client to action.

Step 6: Communicate results of the analysis

It’s important that the client understand why the insights we have uncovered are
important. Ultimately, our company has been called upon to create a solution throughout
the data science process. Proper communication will mean the difference between action
and inaction on your proposals.

We need to craft a compelling story here that ties our client’s data with their knowledge.
We start by explaining the reasons behind the underperformance of the older
demographic. We tie that in with the answers the clients gave us and the insights we’ve
uncovered from the data. Then we move to concrete solutions that address the problem.

4.4: Rules And Regulations Affecting Production

Government regulations require companies to abide by the laws of the country they
represent. In Kenya, the government regulations that apply on our data mining business
are taxes, licenses, advertising, employment and antitrust.
Pay-As-You-Earn(PAYE) tax will be filed by our company to the Kenya Revenue
Authority where Kegad Solutions will pay taxes as required by the Government of
Kenya. The relevant licenses as stated above will be acquired for us to run our business
legally in Nairobi City.

Advertising will be done with no explicit content as required and our employees will be
well taken care of and the company will ensure that they have a social security number
and health insurance. Since we will be dealing with data, the antitrust laws are at the most
importance in our company since we do not want to violate our clients trust whether they
are NGO’s or Public sector companies.
CHAPTER FIVE.

FINANCIAL PLAN.

5.1: Pre-Operational Costs.

The items listed below are the basics that we would need when starting our data mining
and analytics company in the Nairobi.

 The total fee for registering the Business – 30,000 KES.

 Legal expenses for obtaining licenses and permits – 45,000 KES.
 Marketing promotion expenses for the grand opening of Kegad Solutions Data
Mining & Analytics Company, Inc. in the amount of 50,000 KES and as well as
flyer printing (2,000 flyers at 10 KES per copy) for the total amount of – 70,000
KES.
 Cost for payment of rent for 4 months at 250,000 KES per month in the total
amount of – 1,000,000 KES.
 Cost for facility remodeling (construction of racks and shelves) – 500,000 KES.
 Operational cost for the first 3 months (salaries of employees, payments of bills et
al) – 1,809,000 KES.
 The cost for the purchase of furniture and operational facilities (Computers,
Softwares, Telephone, TVs, tables and chairs et al) – 1,361,000 KES.
 The cost of launching a website – 30,000 KES.
 Miscellaneous – 100,000 KES.
 TOTAL – 4,945,000 KES

5.2: Working Capital Estimation.

Current Assets - 1,520,430 KES

Current Liabilities - 500,000 KES
Therefore the operational capital is 1,520,430 less 500,000, which is 1,020,430.

5.3: Cash Flow Projections.

KEGAD DATA MINING AND ANALYTICS COMPANY INC., 2021-

2022.

Income
(In KES.)
 Month OCT NOV DEC JAN FEB MAR
Income Bal b/f 3,500,000 0 0 0 0 0

Sales 0 0 0 0 687,000 615,000

Debtors 5,000,000 0 0 0 0 0

Sales of Assets 0 0 0 0 0 0
Total Income 8,500,000 0 0 0 687,000 615,000

Month APR MAY JUN JUL AUG SEP Total

Income Bal b/f 0 0 0 0 0 0 3,500,000

Sales 623,00 857,00 1,007,00 867,000 918,000 1,713,000 7,287,000

0 0 0
Debtors 0 0 0 0 0 0 5,000,000
Sales of Assets 0 0 0 0 0 0 0

Total Income 623,00 857,00 1,007,00 867,000 918,000 1,713,000 15,787,000

0 0 0

Expenditure.
(In KES.)

Month OCT NOV DEC JAN FEB MAR

Purchases 1,391,00 0 0 0 0 0
0
Salaries 603,000 603,000 603,000 603,000 603,000 603,000

Rent and Utilities 270,000 270,000 270,000 270,000 270,000 270,000

Loan repayment 0 0 185,557 185,557 185,557 185,557

@ 14% interest
rate
Creditors payment 0 30,000 30,000 30,000 30,000 30,000

Advertising 70,000 10,000 10,000 10,000 10,000 10,000

Misc. (Repairs 0 0 3,000 3,000 3,000 3,000

etc.)
Total 2,334,00 913,000 1,101,55 1,101,55 1,101,55 1,101,55
0 7 7 7 7

Month APR MAY JUN JUL AUG SEP TOTAL

Purchases 0 0 0 0 0 0 1,391,00
0
Salaries 603,000 603,000 603,000 603,000 603,000 603,000 7,236,00
0
Rent and 270,000 270,000 270,000 270,000 270,000 270,000 3,240,00
Utilities 0
Loan 185,557 185,557 185,557 185,557 185,557 185,557 1,855,57
repayment 0
Creditors 30,000 30,000 30,000 30,000 30,000 30,000 330,000
payment
Advertising 10,000 10,000 10,000 10,000 10,000 10,000 190,000

Misc. 3,000 3,000 3,000 3,000 3,000 3,000 30,000

(Repairs
etc.)
Total 1,101,5 1,101,5 1,101,5 1,101,5 1,101,5 1,101,5 14,262,5
57 57 57 57 57 57 70

Month OCT NOV DEC JAN FEB MAR

Net Cash 6,166,000 -913,000 -1,101,557 -1,101,557 -414,557 -486,557

Cumulativ 6,166,000 5,253,000 4,151,443 3,049,886 2,635,329 2,148,772

e cash flow

Month APR MAY JUN JUL AUG SEP

Net Cash -478,557 -244,557 -94,557 -234,557 -187,557 611,443

Cumulativ 1,670,215 1,425,658 1,331,101 1,096,544 908,987 1,520,430

e cash flow

5.4: Pro Forma Income Statement.

Kegad Data Mining and Analytics

Trading, Profit and Loss account fot the year ending on 30TH September 2022.
 2021-2022 2022-2023 2023-2024

Net Sales 7,287,000 20,287,000 37,787,000

Cost of Sales 100,000 162,000 340,000

Gross Profit 7,187,000 20,125,000 37,447,000

Expenses

Salaries 7,236,000 7,236,000 7,236,000

Rent and Utilities 3,240,000 3,240,000 3,240,000

Loan repayments 1,855,570 1,855,570 1,855,570

Advertising 190,000 300,000 500,000

Misc. 50,000 100,000 100,000

Total Expenses 12,571,570 12,731,570 12,931,570

Net Profit before -5,384,000 7,393,430 24,515,430

tax
Net Profit after tax - 5,175,401 17,160,801
@ 30%

5.5: Pro Forma Balance Sheet.

Kegad Solutins Data Mining and Analytics Company.
Balance Sheet (in KES)
For 2021 to 2024.

ASSETS 2021-2022 2022-2023 2023-2024

Current Assets

Cash 1,520,430 2,000,000 3,500,000

Debtors 0 1,000,000 750,000

Investments 0 500,000 1,000,000

Total Current 1,520,430 3,500,000 5,250,000

Assets
 Fixed Assets

Computers, 1,085,000 2,000,000 2,050,000

softwares, Server
etc.
Furniture 500,000 750,000 750,000

Depreciation - -200,000 -250,000

Total Fixed Assets 1,585,000 2,550,000 2,550,000

TOTAL ASSETS 3,105,430 6,050,000 7,800,000

LIABILITIES

Current Liabilities

Payables(Creditors) 500,000 1,000,000 1,000,000

Total Current 500,000 1,000,000 1,000,000

Liabilities
Long-term
Liabilities
Bank Loan 1,855,570 1,855,570 1,855,570

Other long-term 15,000 15,000 20,000

liabilities.
(Software renewal)
Total Long-term 1,870,570 1,870,570 1,875,570
liabilities
Total Liabilities 2,370,570 2,870,570 2,875,570

Owners’ Equity 734,860 3,179,430 4,924,430

Total Liabilities 3,105,430 6,050,000 7,800,000

and Equity
5.6: The Break-even Point.

The contribution margin is:

Sales – Total variable costs
7,287,000 – 4,360,000 = 2,927,000

Thus the percentage contribution margin is 2,927,000 x 100

7,287,000

= 40.16%

Break-even point is given by: fixed costs/ percentage contribution margin

2,260,000/ 0.4016 = 5,627,490 KES
Therefore, 5,627,490 KES is the break-even point.

5.7: Expected Profitability Ratios and Percentages.

1. Current ratio.
The current ratio is given by current assets: current liabilities from the above
balance sheet.
Thus, CA:CL = 1,520,430:500,000
= 3.04:1
Therefore, the current liabilities are covered three times by the current assets.

2. Return on Capital (R.O.C)

This is given by the Net Profit after tax x 100

Capital
Thus, 5,175,401 x 100 = 40.65%
12,731,570

3. Return on Investment (R.O.I)

This is given by; Net Profit after tax x 100
Investment
Thus, 5,175,401 x 100 = 60.89%
8,500,000

5.8: Desired Financing.

Total amount of starting off this business is:
1. Pre-operational costs – 4,945,000 KES
2. Working capital – 1,020,430 KES
Total desired financing is 5,965,000 KES.
I. Proposed Capitalization.
The capital structure of Kegad Solutions Data Mining and Analytics is:
 Owners equity – 1,000,000 KES
 Borrowed finances (Creditors and Bank loans) – 7,500,000 KES
 Total contribution – 8,500,000 KES