BUSINESS NAME: MESH CONSTRUCTION COMPANY

ADDRESS: P.O BOX 267-40100, KISUMU

EMAIL: [email protected]
INSTITUTION: THE NYERI NATIONAL POLYTECHNIC
PRESENTER: SHEM NEWTON ODHIAMBO

INDEX:

SUPERVISOR: Madam Nancy

PRESENTED TO:

THE NYERI NATIONAL POLYTECHNIC FOR AWARD IN CERTIFICATE IN

BUILDING TECHNOLOGY.

DATE PRESENTED: JULY 2024

DECLARATION
I declare that this business plan is my original work and it has not been copied from anyone. It’s
my own creativity. It has never been submitted to any college or university for award of Degree,
Diploma or certificate

Name: SHEM NEWTON ODHIAMBO

Date: ………………………………………

Sign: …………………………………….

Supervisor: Madam Nancy

Date: ………………………………………

Sign: …………………………………….

1
 DEDICATION

I first and foremost thank the Almighty God for giving me good creativity when writing this
business plan which was through hard work, research and investigation.

I also thank my supervisor, Madam Nancy who was a great inspiration during struggles and
difficulties while writing the business plan.

2
ACKNOWLEDGEMENT
I would like to express my gratitude and sincere appreciation to my supervisor, Madam Nancy for
the guidance, time and commitment towards completion of this business plan. I also acknowledge
my entire classmate for their moral support and encouragements in the entire time, to all of them,
I pray that God creator of heaven and earth to give them favor for cheerfully assisting.

3
Table of Contents
BUSINESS NAME: MESH CONSTRUCTION COMPANY ........................................................ i
DECLARATION ............................................................................................................................ 1
ACKNOWLEDGEMENT .............................................................................................................. 3
CHAPTER ONE ............................................................................................................................. 6
INTRODUCTION......................................................................................................................... 6
1.0 BACKGROUND INFORMATION. ................................................................................ 6
CHAPTER TWO ............................................................................................................................ 7
2.0 BUSINESS DESCRIPTION. ............................................................................................ 7
2.1 BUSINESS NAME. ................................................................................................................. 7
2.2 Mission and vision statement. ................................................................................................... 7
2.3 Business location ...................................................................................................................... 8
2.4 Ownership ................................................................................................................................. 8
2.5 Type of business ....................................................................................................................... 9
2.6 Product/ services ....................................................................................................................... 9
2.7 Justification of business opportunity. ....................................................................................... 9
2.9 Business goals/objectives........................................................................................................ 10
CHAPTER THREE ...................................................................................................................... 11
3.0 Marketing plan ................................................................................................................. 11
3.1 Customers. ........................................................................................................................ 11
3.2Competition analysis. ............................................................................................................. 11
3.3 Advertising and sales promotion. ........................................................................................ 12
3.4 Pricing strategy ................................................................................................................ 13
3.6 Distribution Strategy ............................................................................................................ 13
CHAPTER FOUR ......................................................................................................................... 14
4.0 ORGANISATION AND MANAGEMENT PLAN. ...................................................... 14
4.1 Business manager and qualifications. ............................................................................ 14
4.3 Key personnel ................................................................................................................... 15
4, 4 Finance management plans and book keeping .................................................................. 15
CHAPTER FIVE .......................................................................................................................... 16
5.0 OPERATIONAL/PRODUCTION PLAN. .................................................................... 16

4
5.1 Business Premises layout. ....................................................................................................... 16
5.2 Production strategy ................................................................................................................. 16
5.3 Procurements........................................................................................................................... 16
5.4 Purchasing plans and supplies mode....................................................................................... 17
5.5 Stock control ........................................................................................................................... 17
5.6 Operative strategy. .................................................................................................................. 17
CHAPTER SIX ............................................................................................................................. 18
6.0 FINANCIAL PLAN. ........................................................................................................ 18
6.1 Pre-operational cost. ............................................................................................................. 18
6.2 Working capital estimation. .................................................................................................... 18
6.3 Business records...................................................................................................................... 18
6.4 Stock inventory records .......................................................................................................... 19
6.5 Operation cost ......................................................................................................................... 19
6.6 Business assets and balance sheet. .......................................................................................... 19
6.7 Business cash flow projection statements. .............................................................................. 20
6.7.1 Cash flow for the year 2023 ................................................................................................. 20
6.7.2 Cash flow for the year 2024 ................................................................................................. 21
6.7.3 Cash flow for the year 2024 ................................................................................................. 22
7.0 Executive summary…………………………………………………………………...……26

5
CHAPTER ONE
INTRODUCTION.

1.0 BACKGROUND INFORMATION.

Each and every day the world is evolving, new technology is being advanced. It’s our duty to
embrace and accept this new technology. Infrastructure is one of the largest sector to have
been witnessed to develop from ancient times up to 21st century.
Over the years, new roads, railway lines, airports, and houses are being constructed. These
developments will ensure that the livelihood of many peoples will be made easier. That
means people will live comfortable in their houses, travelling for both goods and animals will
be fast and easier. Trade being one of the major economic activity in many countries will be
carried out efficiently.
Kenya being one of the countries in Africa has experienced these vast infrastructure
developments. Both the public and private sectors have been involved in these developments.
According to Statistic research in 2020 Kenya is ranked 18th with an index of 26.09
infrastructure development rate.
The government of Kenya through the vision 2030 also wants to ensure that the industrial
sector revolves from the processing to manufacturing. The 2011 Act on housing reforms has
been made in the housing sector whose aim is the implementation of cities and urban areas.
Facilitation of production of 200000 housing units annually through various initiative. The
government wants to ensure there are affordable quality houses for lower income Kenyans.

6
CHAPTER TWO
2.0 BUSINESS DESCRIPTION.

2.1 BUSINESS NAME.

The name of the proposed business enterprise will be MESH CONSTRUCTION FIRM, which
deals with construction of both residential, commercial houses, construction of new roads,
repairing maintenance and renovation of roads, construction of bridges and dams, hiring of
mechanical plants.
The business will be registered under the name of the owner whom is Shem Newton Odhiambo.
The logo will also provide more information about our products and services.

2.2 Mission and vision statement.

The aim of the business is to ensure that all our clients get to acquire the best goods and services
at relatively good prices. The business will also focus on expansion in such a way that its products
will be different from the existing ones in the market.

The main mission of this business is to create employment to the society as expansion continuous.

The vision of the business is to see that our clients enjoy our products and services thereby
maintaining a good relationships and network with each one of them.

7
2.3 Business location
Mesh construction firm is located in Kisumu town. It’s within the city square, just opposite The
Kisumu International Airport which is 200m apart.
There is a sign board next to Riat College showing where the business is located.
The reason of the owner to locate the business at this location is because there are fewer
competitors, good means of transport and there are a lot of customers who are likely to enquire
about our goods and services.

2.4 Ownership
Mesh construction firm is a sole proprietorship type of business.
The business will be self-employment so as I can earn income to employ others and also satisfy
the local demand for the product and services.
Advantages
▪ Easiest and the owner enjoys the profit alone.
▪ Tax reporting is simple.
▪ Owner solely controls the business.
▪ Easy in payment of utility bills.
▪ Quick decision making.

Disadvantages

▪ Unlimited personal ability

8
 ▪ Can be hard to raise capital.
▪ Poor decision making unlike in partnership.

2.5 Type of business

Mesh construction firm will mostly be engaged in the construction sector. i.e.
I. Construction of new, modern, commercial and industrial houses.
II. Construction of bridges

Other activities will include;

I. House renovations
II. Bridge repairing and renovation

2.6 Product/ services

The following are the products that our firm offer:

❖ New equipment’s- World class machines that are suited for each application,
❖ Used equipment-regarding on your financial budget we got you covered.
❖ Rental equipment- reliable, affordable machinery for temporary use.
❖ Promotion- we offer discount that allow you to save on your investment.

Our services are:

❖ Handling of construction materials

❖ Cost estimation
❖ Project scheduling
❖ Designing
❖ Building permits
❖ Construction project management
❖ Excavations.

2.7 Justification of business opportunity.

I. Providing solution to human needs
II. Can start of as a small enterprise
III. To build a lifelong career
IV. Have an impact towards national economic development.
V. Good job security

9
2.8 Industry analysis.

Mesh construction firm is under the ministry of transport, infrastructure, housing and urban
development because it mostly deals with the development of state infrastructure.

2.9 Business goals/objectives

The following are goals which have been set:

I. Opening branches in many parts of the country.

II. Employing more employees.
III. Selling high quality goods and offering the best services at affordable prices.
IV. To add more services to the firm.

10
CHAPTER THREE
3.0 Marketing plan
3.1 Customers.

My potential customer will be men and women of Kenya, both in public and private sector.

Customers will be categories as follows:

a) Commercial customers
Buy products or services for resale as a profit to their customer.
b) Individual customer
Buy products or services for their personal use and consumption.
c) Industrial customers
Buys products or services in bulk in order to resale to commercial customers.

3.2Competition analysis.

The business is a highly competitive kind of business whereby there are many enterprises in the
same business.

The business will have a profit on its goods and services due to the market demand.

Its competitors will be:

❖ Ahmed contractors
❖ Voca engineers
❖ Denny builders

The size of potential competitors is small in size due to the capacity of their products and
services. Also, the location is far from customers’ attraction but Mesh construction is located
where customers can see it and it’s large in size to accommodate more and more products and
services.

11
The table below summarizes the competitors’ strength and weakness.

STRENGTHS WEAKNESSES
Ahmed contractors -Been in business for long -No room for expansion
-Quality products -Lack of trained personnel
-Quality services

Voca engineers -Quality products -Poor services

-Enough capital -Outdated products
-Room for expansion -Lack of trained personnel

Denny builders -Room for expansion -Have few employees

-Skilled workers -Lack of many customers
-Quality products and
services

Mesh construction firm -Quality products and

services
-Enough Capital
-Room for expansion
-Enough employees.
-Skilled workers.
3.3 Advertising and sales promotion.

The business will be getting its goods from Asia and Europe where we will be selling our goods
country wide at low cost. We will also supply goods in East Africa countries where some will
order there goods through online services.

Our firms will also be advertised in televisions, newspapers, leaflets, social media, bill boards
etc.

My company will search market of our clients through various advertising method i.e. social
media, posters, Radios and television. Where the news will spread faster in the country wide.

12
 3.4 Pricing strategy
I will calculate the selling price of the product while adding expenses. The cost of the transport,
purchasing and maintenance shall be fixed due to the price of the product. My selling price will
differ according to the selling price of my product competitors which will differ either fixed or
variable price due to the government price policy, will set price of my product at a fixed price,
unless the government adjust the selling price of the price tag which will earn the profit due to the
demand of the price I will sometimes increase the selling of the product.

3.5 Sales tactics.

My firm will be viewing customer’s feedback very seriously according to the goods and services
we offer to them. We will also provide office cellphone and our social media details for proper
communication with our customers and suppliers. My firm will also give very good services to our
customers and also buy goods at very affordable price from our suppliers to avoid high competition
from other firms.

3.6 Distribution Strategy

My channels of distributing my product will be through wholesales or retails I order to make all
my customers get the products, I will transport my product through the means of road transport. I
may sometimes face problems like climatic problem, theft, poor road transport and more others.

I will solve my problem by changing the means of transport in order to avoid poor road transport
and theft improves the security during the transporting times of the product.

13
CHAPTER FOUR
ORGANISATION AND MANAGEMENT PLAN.
4.1 Business manager and qualifications.

The business will be sole proprietorship where a good proposal qualified management is required
for the business to attain its target which will enable the business to expand and also to make
profit and growth.
The manager of the business will be the owner of business because he has the skills required by
the business.

Duties and responsibilities

i. Paying employees
ii. Decision making
iii. In charge of promotion and demotion
iv. Solving problem in the organization
v. Assigning duties
vi. Planning and coordinating business activities.

4.2 Licenses, permits and by-laws

The firm will require the following legal documents:

Document Amount ksh.

Registration fee 11000

Licenses 5000
Permit 15000
Insurance 6000

14
 4.3 Key personnel

The firm will employ supportive staff that will work hand in hand for the smooth running of the
business.

GENERAL MANAGER

SUPPLIES MANAGER FINANCIAL MANAGER

OTHER EMPLOYEES
STORE KEEPER

WATCHMAN

4, 4 Finance management plans and book keeping

It acts as a guide to help the entrepreneur on how to allocate the finds or effective business
operation and promotion of financial problems.

Expenses Pre operation cost

Advertisement 20000
Electricity deposit 10000
Renovation 15000
Trading license 5000
Machinery and equipment 6000
Total 56000

15
CHAPTER FIVE
5.1 OPERATIONAL/PRODUCTION PLAN.

Production plan shows all the activities that have taken place during the production in the
proposed business, if also tells the requirement of item and their number needed for the
production to take place, which enhances the growth of business of high quality goods and
service produced.
Equally the technicians will also ensure that the business does not run out of stock. This will save
customers time from moving from the business enterprise to those other competitors.
The business will be opened from 8:00am to 6:00pm from Monday to Saturday. It will remain
closed on Sunday and on given public holidays.
Discounts will be given to customers who will buy goods in bulk and some services i.e. transport
will be of no charge.
Time being the manager of all activities; no time tasting will be tolerated from anyone. All duties
must be completed on time unless unavoidable circumstances come on.

5.2 Business Premises layout.

Mesh construction firm will be allocated on the town, where it will be much convenient to the
customers to have their services from company. It will engage in operating to the customers
effectively without excessive cost.
The location of the business also gives us a good chance of expanding it.

5.3 Production strategy

Every work in and out of the business will have a planned flow. The cashier will be the one to
receive this work and together with my technicians they will carry out the work; and speed up
the process.

Customers will be expected to collect their properties on the date expected as promised by
technicians.

The manager will be expected to carry out the continuous inspections.

5.4 Procurements.
It will be conducted by the procurement officers by creating a good list of the required items and
all the materials of the required items of the shop.
16
Proposal registration for the procurement items will be sent from the suppliers whereby it will be
accessed and negotiated for purchasing conditions and price including to suppliers plans will
commence.

There will be confirmation and estimate presentation such as specification, price and quality
assurance from supply’s procurement officer will access all the products and items and he will
approve documents of the purchasing items.

5.5 Purchasing plans and supplies mode.

All products will be ordered from head office where the required items will be checked on time
and sent to purchasing office due to checking of quality of product, which will be sold to our
customers.
The highest bidder with the lowest cost of products will be required to sell the products in the
company on the specific time and date. The supplying of the products will be made according to
the mode of request from the customers. There will be various means of transport to be used
depending on the mode of request from the customers.

5.6 Stock control

Stock control will be required to be conducted in the company whereby a stock inventory record
will be put to assert that the records will not be cost of what is in the company and what is not
available.

Some measures will be taken such as installing CCTV’s in the business to ensure that shoplifters
will not steal from enterprise.
This will minimize loss of items from the business leading to the stock of enterprise to be safe.

5.7 Operative strategy.

The operation strategy in the business is by improving the rate of repairing and customers
relationship in the business. The main purpose of strategy is to assist in making decision and how
to improve them.
The business will be opened from 8:00am to 6:00pm from Monday to Saturday it will remain
closed on Sunday and during holidays.

Discounts will be given to customers who will buy our products in bulk and some services will
not be charged.

17
CHAPTER SIX
FINANCIAL PLAN.
6.1 Pre-operational cost.
The business will have the following cash before opening the enterprise for the customer.

Item amount
Electricity 15000
Insurance 6000
Building 10000
License 3000
Renovation 15000
Cash records 5000
Total 54000

6.2 Working capital estimation.

This is what expected in terms of money at the beginning of process in the business process.

ITEMS 1st YEAR 2nd YEAR 3rd YEAR

Working capital 250,000 200,000 150,000
Overall operating cost 400,000 800,000 300,000
Fixed assets 50,000 40,000 200,000
Total 700,000 104,000 650,000

6.3 Business records

Mesh construction will have its records kept safe of either selling or repairing of an electrical
item brought in the business.
The following records will help keeping good records in the business
❖ Account document
❖ Employment contractor’s record

18
6.4 Stock inventory records
This is records in any business venture in response to what one has in the stock for the business.
The proposed business ventures are expected to have the following stocks types.
❖ Raw materials and components – they are materials which are ready to be used
❖ Work in progress- these are stocks of unfinished goods in production and finished goods
that are ready for sale.
6.5 Operation cost
These is amount of money incurred before proposed business starts into operation
The proposed Mesh construction is expected to have the following.

ITEM COST (ksh)

License 5000
Insurance 15000
Rent 7000
Water and electricity 10000
Total 37000

6.6 Business assets and balance sheet.

Balance sheet as at 1st January 2023
Liabilities Fixed assets

Share capital 33,000 equipment’s 60,000

Ordinary shares 200,000 Computer 80,000
Preference shares 30,000 Hot airproof 300,000
Total 530,000 Total 440,000

Current liabilities

Account pays 20,000 Stock 20,000

Creditors 15,000 Account record 10,000
Bank loan 50,000 Bank 80,000
Total 85,000 Total 314,000

19
6.7 Business cash flow projection statements.
6.7.1 Cash flow for the year 2023
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Loan 500,000 _ _ _ _ _ _ _ _ _ _ _

Savings 150,000 _ _ _ _ _ _ _ _ _ _ _

Sales 150,000 157,000 159,500 162,400 171,900 177,000 183,100 200,000 21,500 222,500 230,000 245,000

Tools 2,000 2,500 2,700 2,200 3,000 3,500 1,400 5,000 6,100 7,000 4,000 5,000

Total 802,000 159,500 162,200 164,600 174,900 180.500 184,500 205,000 221,100 229,500 234,000 250,000

receipts
Salaries 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000

Rent 10,000 10,000 10,0000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Electricity 10,000 5,000 6,000 3,000 2,000 6,000 8,000 4,000 7,000 6,000 7,000 7,000

Telephone 500 500 300 500 500 500 400 500 500 400 1200 1200

Purchase 70,000 20,000 30,000 20,000 24,000 20,000 18,000 12,000 10,000 14,000 20,000 18,000

Total 311,500 146,500 157,300 144,500 147,500 147,500 147,500 137,500 138,500 141,400 149,200 147,200

expenses
Net cash 490,500 13,000 4,900 20,100 27,400 33,000 37,000 67,500 82,600 88,100 84,800 102,800

Bal b/d _ 490,500 503,500 508,400 528,500 555,900 588,000 625,000 692,500 775,100 863,200 948,000

Bal c/d 490,500 503,500 508,400 528,500 555,900 588,900 625,000 692,500 775,100 863,200 948,000 1,050,8000

20
 6.7.2 Cash flow for the year 2024
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Bal c/f 1,050,8000 _ _ _ _ _ _ _ _ _ _ _

Loan _ _ _ _ _ _ _ _ _ _ _ _

Sales 245,000 252,550 254,000 257,400 266,900 272,000 278,100 295,000 316,500 317,500 325,000 326,000

Tools 2,200 2,578 2,777 2,208 3,010 3,500 1,400 5,005 6,100 7,000 4,000 5,000

Total 10,660,700 160,120 162,277 164,608 174,910 180,500 184,500 205,005 227,600 229,500 234,000 236,000
receipts

Salaries 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000

Rent 10,000 10,000 10,0000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Electricity 10,000 5,000 6,000 3,000 2,000 6,000 8,000 4,000 7,000 6,000 7,000 7,000

Telephone 500 500 300 700 500 500 300 500 500 500 1200 1200

Purchase 60,000 20,000 30,000 20,000 24,000 20,000 18,000 12,000 10,000 13,000 20,000 18,000

Total 191,500 147,000 157,300 144,700 147,500 147,5 00 147,300 137,500 138,500 140,500 160,000 147,200
expenses

Net cash 10,469,200 13,120 4,977 19,908 27,410 33,000 37,200 67,505 89,100 89,000 74,000 88,800

Bal b/d 948,000 11,417,200 11,430,320 11,435,297 11,455,205 11,482,615 11,515,615 11,552,815 11,620,320 11,709,420 11,798,420 11,872,420

Bal c/d 11,417,200 11,430,320 11,435,297 11,455,205 11,482.615 11,515,615 11,5522,815 11,620,320 11,709,420 11,798,420 11,872,420 11,961,220

21
 6.7.3 Cash flow for the year 2025
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Bal b/f 11,961,220 _ _ _ _ _ _ _ _ _ _ _
Savings - - - - - - - - - - - -
Sales 326,000 333,600 335,550 338,555 347,600 353,000 359,000 376,010 397,000 398,000 406,000 421,000
Stationary 2,246 2,500 2,600 2,201 3,003 3,501 1,402 5,003 5,106 6,008 4,002 5,080

Total 12,289,466 336,100 338,150 340,756 350,603 356,501 360,402 381,013 402,106 404,008 410,002 426,080
receipts

Payments _ _ _ _ _ _ _ _ _ _ _ _
Salaries 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000

Rent 10,000 10,000 10,0000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Electricity 10,000 5,000 6,000 3,000 2,000 6,000 8,000 4,000 7,000 6,000 7,000 7,000

Telephone 500 500 300 500 500 500 400 500 500 400 1200 1200

Purchase 55,000 23,000 20,000 25,000 34,000 34,000 14,000 13,000 20,000 10,000 21,000 16,000

Total 186,500 149,500 150,000 149,500 155,700 161,500 143,400 138,500 148,500 137,400 150,000 145,200
expenses

Net cash 12,102,966 186,600 188,150 192,256 194,903 195,001 217,002 242,513 253,606 266,608 260,002 280,880

Bal b/d 11,872,420 23,975,386 24,161.986 24,350,136 24,542,392 24,561,295 24,756,198 24,973,200 25,215,713 25,469,319 25,735,927 25,995,927

Bal c/d 23,975,386 24,161,986 24,350,136 24,542,392 24,737,295 24,756,296 24,973,200 25,215,713 25,469,319 25,735,927 25,995,929 26,276,807

22
 7.0 EXECUTIVE SUMMARY

The proposed business is having the name Mesh construction firm from the word Shem, where a
lot of practical and technical will be applied in the business. The idea of starting the business
started since I was in high school and later, I thought of joining college where I pursued building
technology engineering. This is so that my dream will come true of owning a company. I will start
the company on 1st January 2024.

The following indicates what is in the chapter of business plan.

Chapter two

The planned type of business is explained including business products and services offered in the
business. It also contains a form of ownership of the business and details of the owner. Also, it
indicates why the owner chooses the business.

Chapter four

In this chapter, the owner indicates on the market opportunity and challenges on this proposed
business. It also increases the targeted customers, pricing and strategies are also illustrated in this
chapter. It also includes the proposed business expectation to its competitors.

Chapter five

It contains, all operations plan of proposed business and also all the features which are placed in
order for business to operate effectively. Health and safety precautions are also included in this
chapter.

Chapter Six

All finance plan of proposed business is indicated. It also gives out on how the business will
prosper.

23