EXECUTIVE SUMMARY

Mwemamos general dealers is an already registered personal business

located in Mwense District. Specialized in: Motor bike spares, bicycle spare,
transport, building Materials, Hardware, groceries and other general good
products to its valued customers. Mr. Mando Morrison who is the
owner, will also be the Director. He will make all business decisions and
carry out management functions of planning, organizing, controlling,
directing, coordinating and leadership for the Shop. The business is founded
on the principle of total quality management and continuous improvement to
ensure customers get the best service that will be affordable to the
customers. Focus will also be placed on product and service differentiation
as this is crucial for a start up entity like ours. Our differentiation factor will
be the provision of affordable high quality Auto Spares services and
unmatched friendly customer care.

Listening to every customer concerns and tailors our energy towards

customer satisfaction.

I have chosen Mwense because the project as a high growth rate due to the
population of vehicles and motor bikes the district. This will increase our
sales and make us profitable immediately I boost my business.

I will run my auto spare services in the most cost effective manner but
ensuring that by so doing I do not compromise the quality of my services.

This business plan looks at all items required with regard to cost of
purchasing Spares, marketing, overheads (rent, transport, communication)
and other hidden costs. The total cost for the successful execution of the
project is K200, 000.00 and these funds will be sourced through the CDF
loan fund.

All things being equal, the Auto spare services will be commissioned as soon
as project is funded.

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VISION

To become a provider of top quality Auto spare services in business

and spread my foot prints to other districts and across Zambia.

MISSION STATEMENT

To provide the highest Auto spare services that is equal to value for
the customers. We see ourselves to be among the top five Auto spare
related providers by 2026.

CORE VALUES

 Integrity
 Professionalism
 Excellence
 Commitment
 Honest
 Customer care
 Ethical
 Responsible
 Transparency

OBJECTIVES

A number of objectives will be put in place to serve as performance

targets. These will guide me in whatever will be doing.

All my objectives, short and long term (strategic ones) will be smart in
nature.

S Specific
M Measurable
A Attainable
R Realistic
T Time

Short Term Objectives

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  Creation of three (3) direct jobs immediately am going to be
funded in the business

 To make annual sales of K272,000.00 by December 2023

 Realizing a net profit of K171,136.00 by January, 2024

 To seek top notch value for money products

Long Term Objectives

 Creating three (3) more jobs by January 2023 as expand the

business

 To acquire more Auto Spare parts which can also be used by

other small companies that do have vehicles and motor bikes.
This will bring in extra revenue to the business. I project to
actualize this objective by July 2026.

BUSINESS OWNERSHIP

I own the business and will carry out all the management functions
and decision making. I will apply a “bottom up” management style of
getting inputs from customers and workers in decision making.

BUSINESS DESCRIPTION

Business Name : Mwemamos General Dealers

Business Director : Mando Morrison
Business Location : Kalanga Market
Business Phone No. : 0974 73 67 44 / 0971 21 46 15
Email : @gmail.com
Business Bank : Natsave
Business Bank Account No. : 3201763260901
TPIN : 2508094646

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 ECONOMIC BENEFITS

 Job formation
 Tax contribution to the government
 Contribution to the Gross Domestic Project (GDP)
 More entrepreneurs will emulate us and jump in the trend

WHY US? HOW DIFFERENT ARE WE?

There being many other players in the market, why would customers
choose my spares than my competitors?

 We will offer quality products at affordable prices. We will

deliberately sell our products at slightly lower prices than our rivals.
 Use of an excellent sales and marketing strategy
 Our flexibility to engage customers on a one on one level

BUSINESS LOCATION

I am located in Mwense district, Kalanga Market. This is a prime area with

enough parking spaces. I have my own shop, the projected benefits in large
sales will outweigh many costs.

This location will give me a competitive advantage from my rivals.

COMPETITIVE COMPARISON

 My fleet of vehicles will be unmatched by my competitors

 Good customer care and flexibility in the way I do my business,
coupled with good and affordable prices. I will carter for every
pocket.
 I will meet and exceed my customer expectations

MARKET ANALYSIS

My market study has indicated that there is great demand for Auto
Spare services in Mwense Town. Though a number of vehicles and
motor bike are available, the demand is still very high. Further, it has
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 been revealed that the big players in the business have been
exploiting customers by charging unreasonable prices on such
services, citing cost of transport, fuel and other logistics. I as an extra
ordinary player on the market want to come in and provide customers
quality, comfortability and affordability. My customers will pay less for
more. The objective is to have more customer and ensure they come
back for future repeat purchases. I will achieve this by putting a good
customer care strategy in place. The demand for Auto spare services
which is projected to keep on increasing will give me good growth
prospects in Mwense Town.

Pricing Strategy

My prices will depend on what the market services will be at any

particular time, factoring the cost of transport, cost of production
and other logistics.

I have quickly penetrate the market, however, sell my services at slightly

reduced prices (but this will not affect my profit)

SALES AND MARKETING STRATEGIES

 Personal selling through word of mouth

 Use of the internet on platforms such as facebook and other
commercial groups
 Distribution of fliers and catalogue to our prospective customers
 Offer of discounts to loyal bulky buyers
 Advertise on local radios my business

MANAGEMENT AND HUMAN RESOURCES

Management

A good management system will be put in place to ensure the

business is run in an effective and efficient manner that
promotes business growth.

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 I will head the business and will perform all management
functions and make decisions. A team of qualified employees
will help the director to ensure the business is a success.

Management will also ensure that workers are motivated by

paying them good salaries that are competitive and putting the
qualified people to do the right jobs. A motivated team of
workers is key for production and growth of any business. This
also makes workers to be more willing to stay with the company
and incidents of theft are reduced.

Human Resources

These are the most important assets in any company, big or

small. They are crucial for the success of any business.
I will treat my workers properly and pay them good salaries. At my
inception I will employee three (3) workers on a permanent basis
/arrangement.

Cashier 1

Duties and responsibilities

 Collecting and receipting all money realized from sales

 Delivering of invoices and log books
 Assisting the director in monitoring inventory levels and
advising or reorders accordingly

Cashier 2
 Making bank deposits as directed by the director. This will be
done regularly to avoid the risk of keeping cash at the shop.
 Any other duties as assigned by the director
 Making new business orders from the clients

Cashier 3

Duties and Responsibilities

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  Ensuring that the Auto spare shop is in a good condition and
disinfected on a regular basis
 Greeting all the customers that walk in the shop
 Doing some errands e.g routine buying of daily small needs of
the business such as talk time, buying of Zesco electricity
units etc
 Any other duties as assigned

ORGANIZATION STRUCTURE

DIRECTOR

CASHIER (03)

Salaries per Month

DESIGNATION QTY QUALIFICATION SALARY (K)

Cashier 1 01 Certificate in Auto Motive 2,500

Mechanics, grade 12 school
certificate and a Drivers
licence
Cashier 2 01 Grade 12 School Certificate & 2,000
Drivers’ license class B
Cashier 3 01 Grade 12 School Certificate 1,500

TOTAL WAGE BURDEN PER MONTH 6,000

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RISK SENSITIVITY
Potential risks include the following:-

 Price Wars

 But my offer of quality products at affordable prices with a

flexibility of listening to my customer concerns and needs will
enable is not, fair such potential risks. We are optimistic the
business environment is very favourable and such potential
risks do not pose any threat to us.

COMPETITOR/SWOT ANALYSIS

We face a number of competitors in the targeted market some of

whom big and well established. Therefore, I will conduct a SWOT
analysis to assess the business environment.

SWOT (Strengths, Weaknesses, Opportunities and Threats) is a

business appraisal method of analysis how a business is performing in
relation to its business environment. The environment in this contexts
is the competition. SW (Strengths and Weaknesses) are internal
factors while OT (Opportunities and Threats) are external factors.
Internal factors include a good sales and marketing strategy or
location while external factors include continuous demand for a
product/service and technological issues.

Other macro environmental factors that may affect a business are

coined as:

P Political
E Environmental
S Social / Cultural Norms
T Technology
E Economical
L Legal Issues

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 SWOT ANALYSIS FOR OUR BUTCHERY

STRENGTHS WEAKNESSES
 Good location in a prime  New on the market
area
 Friendly employees plus a  We cant compete
good customer care strongly on price
reductions as we are
yet to be well
established
 Affordable prices  Finding new
customers
 Good sales marketing
 Techniques

OPPORTUNITY THREATS
 There is continuous  Lack of funds to buy
demand for bus hiring new vehicles
 Economic downturn
that may affect
buying power of
customers

In modern business competition is very health as it leads to

improvements in product/service delivery. It leads to
innovativeness.

This ultimately trickles down to the en user (the customer) who

benefits through:-

 Affordable prices
 Quality products/services
 Customer care
 Convenience and reading available products/services
 Choice

OPERATING PLAN

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I intend to borrow a total sum of K200, 000.00 from the CDF loan
fund. This will carter for the purchase Auto Spare parts.

OVERHEAD COSTS / MONTH

ITEM ESTIMATED COST (K)

Electricity 250
Water 180
Communication 150
Transport 2,700
Marketing 350
Other 250
Rent 1,800
TOTAL MONTHLY OVERHEAD 5,680

TOTAL PROJECT COST

ITEM ESTIMATED COST (K)

Fixed assets requirements
Equipment (spare parts) 180000

INITIAL WORKING CAPITAL REQUIREMENTS:-

salaries 6,000
Overhead costs 5,680

TOTAL ROUNDED OFF FUNDS NEEDED TO

COMMISSION THE PROJECT 200,000.00

18.6 FINANCIAL PROJECTIONS

18.6.1 Income Statement for the Year Ending December 2023

K
SALES 280,000

Purchases (Fuel) 84,864

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 GROSS PROFIT 187,136

Less Expenses 5,000

Salaries 72,000

Overhead Costs 5,680

NET PROFIT BEFORE TAX 280,000

Tax (3, 748)
NET PROFIT AFTER TAX 193,572

After one year of trading the business will make an annual Net Profit of
K193, 572 which translates to 48.6% of annual total sales. I will be able
to pay all the financial obligations on time, and still remain operational.

The profits will infact be much higher because we deliberately picked

minimal sales projections in order not to overcast profits.

CONCLUSION

Our business will be run in a cost effective manner and on continuous

improvement principles:-

Our projected sales and profits will be realized because we will ensure
we strategically choose a good business location with a huge human
traffic. To ensure our employees do not steal, the Director will
supervise the cashier or infact work for two weeks to observe the sales
and cashing trend.

This Auto spare, all things being equal will be viable and profitable.
Therefore, we will take the business risk that is well calculated to
invest in the proposal.

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