JOSAM BAKERS

SUBJECT : ENTREPRENEURSHIP

PROJECT NAME : JOSAM BAKERS

PRESENTER NAME : JOAN MUTHENGI

INDEX NO :

CENTER :

SUPERVISOR : MR.

SUBMITTED TO : THE KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILMENT FOR
THE AWARD OF CERTIFICATE IN
BUSINESS MANAGEMENT

SERIES : JULY 2022

Contents
DECLARATION..........................................................................................................................................i
STATEMENT OF APPROVAL..................................................................................................................ii
DEDICATION............................................................................................................................................iii
ACKNOWLEDGEMENT..........................................................................................................................iv
EXECUTIVE SUMMARY.........................................................................................................................v
CHAPTER ONE..........................................................................................................................................1
BUSINESS DESCRIPTION.......................................................................................................................1
1.0 INTRODUCTION.............................................................................................................................1
1.1 BACKGROUND OF THE OWNER...........................................................................................1
1.1.1 Education and professional qualification....................................................................................1
1.1.2 Relevant business experience.....................................................................................................1
1.1.3 Plans to acquire advanced experience........................................................................................1
1.1.4 Capital.........................................................................................................................................1
1.2 NATURE OF THE BUSINESS...................................................................................................2
1.3 PRODUCTS AND SERVICES.........................................................................................................2
1.4 ENTRY STRATEGY........................................................................................................................2
1.4.1 competitive advantage of the business......................................................................................2
1.4.2 weakness of the competition......................................................................................................2
1.4.3 pricing strategy...........................................................................................................................3
1.5 GROWTH STRATEGY....................................................................................................................3
CHAPTER TWO.............................................................................................................................................4
MARKETING PLAN.......................................................................................................................................4
2.0 INTRODUCTION.......................................................................................................................4
2.1 POTENTIAL CUSTOMERS.......................................................................................................4
2.2 COMPETITION..........................................................................................................................4
2.3 PRICING STRATEGY................................................................................................................5
2.4 SALE TACTICS..........................................................................................................................5
2.5 ADVERTISEMENT AND PROMOTION STRATEGY............................................................5
2.6 DISTRIBUTION STRATEGY....................................................................................................6
CHAPTER THREE..........................................................................................................................................7
ORGANIZATIONAL PLAN..............................................................................................................................7
3.0 INTRODUCTION.............................................................................................................................7
3.1 ORGANIZATIONAL STRUCTURE................................................................................................7
3.2 KEY MANAGEMENT PERSONNEL..............................................................................................8
3.3 OTHERS.........................................................................................................................................10
3.4 SUPPORTING ADVISORY SERVICES........................................................................................11
CHAPTER FOUR.....................................................................................................................................12
OPERATIONAL PLAN............................................................................................................................12
4.0 INTRODUCTION...........................................................................................................................12
4.1 PRODUCTION FACILITIES AND PRODUCTION......................................................................12
4.2 PRODUCTION STRATEGY..........................................................................................................14
4.3 PRODUCTION PROCESS.............................................................................................................15
4.4 REGULATION AFFECTING OPERATION..................................................................................15
CHAPTER FIVE.......................................................................................................................................16
FINANCIAL PLAN..................................................................................................................................16
5.0 INTRODUCTION...........................................................................................................................16
5.1 PRE-OPERATIONAL COSTS.......................................................................................................16
5.2 WORKING CAPITAL EQUIPMENT............................................................................................16
5.3 PRO-FORMA INCOME STATEMENT.........................................................................................17
5.4 PRO-FORMA BALANCE SHEET.................................................................................................18
5.5 CASH FLOW STATEMENT..........................................................................................................20
5.6 BREAK-EVEN POINT...................................................................................................................21
5.7 DESIRED FINANCE......................................................................................................................23
5.8 PROPOSED CAPITALIZATION...................................................................................................23
5.9 EXPECTED PROFITABILITY RATIO.........................................................................................23
APPENDIX...........................................................................................................................................25
DECLARATION

I declare that this is my original work and has never been submitted by any other student of

any college or institution of higher learning to the Kenya national examination in partial

fulfillment for the requirement for the award in certificate in business management.

NAME : …………………………………………………………

INDEX NO : …………………………………………………………

SIGN : …………………………………………………………

DATE : …………………………………………………………

i
STATEMENT OF APPROVAL

This business plan has been submitted to Kenya National Examination Council with my

approval as the institute supervision.

NAME : …………………………………………………………

INDEX NO : …………………………………………………………

SIGN : …………………………………………………………

DATE : …………………………………………………………
PRESENTER NAME : FELIX MUTILU

ADM NUMBER : 5632

COURSE : CERTIFICATE IN ICT

CENTRE : MACHAKOS UNIVERSITY

COLLEG

SUPERVISOR : MRS. BOIT

SUBMITTED TO : MACHAKOS UNIVERSITY

COLLEGE IN PARTIAL FULFILLMENT FOR THE AWARD OF
CERTIFICATE IN INFORMATION COMMUNICATION
TECHNOLOGY

ii
DEDICATION

I dedicate this work to my parents, brother, all my relatives and friends for their endless

support for me to make this business plan a success.

iii
ACKNOWLEDGEMENT

I wish to thank Mr.…………………………………….............for his assistance on my

research and his suggestion and guidance throughout the entire project duration.

I also do thank my parents who financed this project to make it successful. Not forgetting my

friends and relatives who contributed to this business plan success. May God bless them.

iv
EXECUTIVE SUMMARY

CHAPTER ONE: BUSINESS DESCRIPTION

The chapter entails the name and objectives of the business. It also states in the major

activities of the business and how it came to venture in the market.

CHAPTER TWO: MARKETING PLAN

This section combines the sales tactics to be involved in forming the customers on the

product’s and potential customer’s target. Products to be sold will be described in this

section.

CHAPTER THREE: ORGANIZATIONAL PLAN

It will include the work force that will ensure the objectives and goals of the business are

achieved. This chapter will basically describe the managerial structure and their order of

authority starting from the top management down to the subordinates.

Duties and responsibilities will also be described in this chapter.

CHAPTER FOUR: OPERATIONAL PLAN

This chapter involves the expenses of the required equipment for the operation of the

business to begin and the raw materials to be purchased.

CHAPTER FIVE: FINANCIAL PLAN

This chapter discloses all financial analysis in terms of cash flow in a given duration break-

even level, gross profit margin and return on investment.

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 CHAPTER ONE

BUSINESS DESCRIPTION

1.0 BUSINESS NAME

The name of the business will be Josam Bakers. It is named Josam Bakers because it’s under my

name and am aspiring to register it to impact my talent in baking hence increasing production.

The target of the business will be doing baking and selling baked products and also ingredients to

different customers at an affordable price.

1.1 LOCATION AND ADDRESS OF THE BUSINESS

It will be located at Syokimau opposite Naivas supermarket along Mombasa road. The owner

found the location suitable for the business as it is very populated so it will attract many

customers. The place is secure for her business and also accessible. The business address is as

follows:

NAME : Josam Bakers

PO BOX : 3290-90100 Machakos, Kenya

Telephone number : …………….

Mobile number : 0713536688

E-mail : [email protected]

Website : ……………

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1.2 TYPE OF OWNERSHIP

Josam Bakers is a sole proprietorship business owned by Joan Wayua. The proprietor is a single

lady who is also the key decision maker. She will be able to keep secrets of the business hence

keeping competition high. She hails from Machakos County and currently she is a student in

Kiambu Technical Institute pursuing certificate in baking.

1.3 PRODUCTS AND SERVICES

The proposed business will be dealing with general baking supply of bakery products. This will

include products like cakes of all events and occasions, cookies, pizza, icing sugar, decorating

tools and many others as the market may require as time goes by. The services will be offered by

devoted and qualified personnel. The owner will enjoy her profit alone since she is the sole

proprietor. This will enable her to seek viable means to improve on the situation and conditions

of the venture, for the sole benefit of attracting many more customers.

1.4 JUSTIFICATION OF OPPORTUNITY

The growth of the business will be determined by the products and services offered to customers.

The business is targeting to produce quality products to attract the customers hence increase the

market demand. Also, quality personnel will be applied where the society will be involved

through creation of jobs especially to the youth.

1.5 INDUSTRY

Josam Bakers is a service providing enterprise and operating in the hospitality industry.

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1.6 GOALS OF THE BUSINESS

Short term goals

i. Give quality services to the customers.

ii. Fully capitalize with events after breaking even

iii. Create job opportunities to the community

iv. Grow to two other branches within two years

Long term goals

i. Within four years of operation the business intends to be the most famous and expanded

to opening new branches country wide.

ii. Maximize the profit through increasing the sales within the four years of operation

process.

1.7 ENTRY AND GROWTH STRATEGY

Entry strategy depicts a mean through which the business intends to get a bigger market share

and exhaust goods and services. The owner is bearing in mind that for one to prosper in every

activity, she has to ensure: quality goods and services, offer products to the expectation of the

customers and offer an integrated (one stop shop) for all the bakery requirements of the customer

that is, from the readily baked cakes, cookies as well as baking materials. Also, the proprietor

finds a need to find ways and means to deploy to counter our competitors. These are made

possible by collecting information on the weaknesses of the competitors and loop holes in the

market to build on them. The aim of the business is to ensure all customers are charged a fair

price on every product or service that will be rendered. This will bring more customers to the

business.

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For the growth strategy, by the end of the year upon its starting, the owner will analyze its

growth and predict her future trends to growth. This will be through a time series analysis and

interviewing customers to get their feedback. By doing this, she will be in a position to apply

casual relation of the present performance to determine the future trend growth. This will enable

the owner to identify new opportunities in the market and also gaps that needs to be filled. She

will also know what products and services the customers need and bring them onboard.

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 CHAPTER TWO

MARKETING PLAN

2.0 INTRODUCTION

This section will deal with how the business will do its marketing through different ways in order

to gain stability in its locality. It will also deal with how the business can get to the people they

are targeting the pricing strategy of its products, how they are going to distribute their products

and services around their locality.

2.1 POTENTIAL CUSTOMERS

The business has been established in a highly developing area of different income class, so it will

be targeting individuals and organizations that may have work to be done in the hospitality

department especially events. Therefore, having knowledge of customer’s income, the owner

will have a clear picture of the cost she will charge to suit the income of the customer.

2.2 MARKET SHARE

For the rapid growth of the business, the owner will do her best to ensure that qualified personnel

is offered to produce quality products for betterment of the society. Within 2 years’ time the

business is expected to have diversified to its level best due to the market demand. This will

increase the number of customers leading to business growth.

2.3 COMPETITION

There are three main firms that are competitors to Josam Bakers and are located near to the firm.

They offer products and service similar to Josam Bakers and they have their strength and

weakness.

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Some of their weaknesses include:

i. Lack of devoted and qualified personnel.

ii. Does not offer transport to customers who purchase bulky good.

iii. The owner lacks managerial skill.

iv. High costing to their products and services.

v. Lack of modern facilities.

Their strengths include:

i. Well established since they started years before.

ii. They have permanent premises.

iii. They are well known in the area since the owners are known politicians.

The owner has plans to capitalize on the weaknesses of the competitor. These plans include:

i. Service and product offered will have a measure up to the required standards of the

customer.

ii. All necessary facilities and man power for the effective work to be adequately made

available.

iii. Employing well qualified personnel.

iv. Fair pricing of the products and services.

v. Acquire modern facilities.

vi. Offering transport for customers who purchase goods in bulk.

vii. Publish calendars’ and magazines annually to reflect the standard of work it does.

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2.4 METHODS OF ADVERTISEMENT AND PROMOTION

The owner will create awareness to her customers through advertising by means of posters,

magazines, calendars, printed t-shirts, mass media (Radio maisha, Radio Citizen, Capital FM).

This will eventually lead to increase of getting new jobs as a result of that awareness hence

increment in profit. Each means of advertisement will be allocated its own amount of money as

shown below.

Items Amount in Ksh.

Poster 2,000

Magazines 2,000

T-Shirts 2,000

News Paper 7,000

Other Items 5,500

TOTAL 18,500

By use of all these means of advertising, the owner will use various ways to measure the

effectiveness of the advertisements. They include:

i. Interviewing people in the effectiveness of the adverts.

ii. Determining the quality of the application sent to the enterprise and the location of the

applicant.

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On December holidays, the owner will be organizing a one-day party for the workers, friends

and customers in the business. In an attempt to measure the effectiveness of the promotion

campaign, the following will be carried out: -

i. Oral interview to some selected individuals.

ii. Interviewing workers and customers.

2.5 PRICING STRATEGY

The owner of the enterprise will offer services and products which are fairly priced, giving him

an added advantage to his competitors. By this the owner will examine the payment structure of

his competitor and come up with his own price. However, all payments will be made as agreed in

fully. Necessary negotiations and only in very special cases will be paid in installments upon

agreeing with the customer. Reasonable discounts will be offered to those purchasing in bulk.

2.6 SALE TACTICS

The owner will deploy a number of ways in reaching his customers effectively and this will

include:

i. Direct selling

The management will directly inform the potential customers of the quality and standards

of its services and products and also sell them to the customers.

ii. Indirect selling

It will be publishing calendars, magazines and advertising its services and products

through mass media.

13
 iii. Utilization of distributor or agent

Responsible people from different localities will be situated to market the services and

popularity of the enterprise. Distributors will be motivated by offering them high

commission and provision of after sales services to them.

2.7 DISTRIBUTION STRATEGY

The owner intends to use roads as means of transport simply because: -

i. It’s effective and satisfactory in reaching the anticipated customers.

ii. Bakery goods are delicate and perishable hence can’t be transported for long distances

hence road transport will be convenient for a start

iii. The short distance involved.

iv. It’s cheaper to use road transport.

v. The area has a well-developed road network.

vi. Cheaper and affordable by the targeted group in the market

To overcome the problem of lack of transport, the owner will be using private vehicles to ferry

materials and workers.

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 CHAPTER THREE

ORGANIZATIONAL PLAN

3.0 INTRODUCTION
This chapter consists of the structure of the organization. It shows the responsibilities of the
manager and also the pay as well as the various levels of management involved in the firm. It
also captures the number of personnel required in every available field in the firm and also their
salaries. The resources required in the firm are also specified in this section. The preliminary cost
and overhead costs are also stated in this chapter.

3.1 ORGANIZATIONAL STRUCTURE

Josam Bakers will be established as a sole proprietor. The owner’s direct participation in it will

be quite minimal because the enterprise will employ a qualified civil engineer as the manager.

However, there are areas where the owner must be directly involved e.g.

i. When taking a new contract.

ii. When sucking and employing new personnel.

iii. Responsible for issuing final approvals on various issues and matters.

As the director of the enterprise, she will be earning Ksh.15,000 per month.

Below is the organizational chart showing various levels of the firm’s personnel

3.2 KEY MANAGEMENT PERSONNEL

Josama Bakers absolutely like to employ a team of four trained, skilled and qualified workers for

its active and smooth running and satisfactory achievement of its goals and objectives.

15
The key personnel will include: -

i) DIRECTOR

 He will be the owner of the business but his participation at time will be indirect.

 He will be a mandatory signatory during major transactions including finance

budgeting.

 He will be earning Ksh. 15,000 per month

ii) MANAGER

 He will be in charge of day to day running of the enterprise

 He must have held the same position in a similar job for at least 2 years and with

good reputation

 Other duties will include

 Staffing

 Organizing

 Planning

 Controlling

 Motivating

 Coordinating

 Taking orders

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  He will earn Ksh. 10,000

iii) Two bakers

They will be holders of craft certificate with at least a pass in the related field and with a

minimum experience of one year. The duties will include: -

 Involved in baking activities

 Delivering products to consumers

 Participate in preparation of work scheduling

 He will be earning Ksh. 7,000 per month each.

17
 CHAPTER FOUR

OPERATIONAL PLAN

DIRECTOR

MANAGER

SUPERVISOR ACCOUNT DEPT.

SECRETARY

TECHNICIAN BOOKS

UNSKILLED PERSONNELS

MESSENGER SECURITY GUARD

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 CHAPTER FIVE

FINANCIAL PLAN

5.0 INTRODUCTION
This is a comprehensive evaluation of an individual's current pay and future financial state by
using current known variables to predict future income, asset values and withdrawal plans.

5.1 PRE-OPERATIONAL Topima Construction starts its operation, it will incur per-
operational cost. The table shows the expected per –operational cost and their approximate
amounts
PARTICULARS COST

Rent 5,000

License 2,000

Equipment and machine 15,000

Stationary 5,000

Transport 2,000

Furniture 6,000

TOTAL 35,000

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Insurance 15,000

20