SCHOOL NAME : THE KISUMU NATIONAL POLYTECHNIC

BUSINESS NAME : SAMPO WOODWORK MACHINES AND EQUIPMENT FOR

HIRE

PRESENTED BY : OCHIENG MARTIN

EMAIL : [email protected]

COURSE : CRAFT IN AUTOMOTIVE ENGINEERING

DATE:

SIGN:

ADDRESS:

SUPERVISOR NAME : MADAM EMILLY WESONGA

SIGN :

DATE:
ACKNOWLEDGEMENT
I wish to give my special gratitude to the following Personnel who make my study in the institute
of Kisumu Polytechnic to run smoothly and successful:

The school principal

The head of mechanical department

Human Resource Development Manager.

Training staff and coordinators

Not forgetting my supervisor Madan Emilly Wasonga Who ensured that Imaximumly
understand the entire process work of business plan study as a unit that Will expand and make
me be creative in future, and to the people of society.
DEDICATION
This work is dedicated to my teacher Madam Emily, My parents , friends and relatives at large.
Executive summary
sample woodwork machines and equipment For hire

might be the most convenient and reliable in this nation especially when it is set and managed
properly these aspect of sample woodwork machines and equipment for hire, will be the most
and appropriate for us as an entrepreneurs us to make money in Kenya within the shortest time
possible.Possible this business is probably to work at its short since the research we have done as
shown that many people in this nation has skills and experience in Woodwork and design but
most of their percentage is around 85% lack this machines so as to do and manage their work as
they increase experience and knowledge in the field.

And therefore the important sector are important and necessary to human life as they make
work easier and help in saving of time and have large output of product at a time.

The business will be located along Kisumu highway busia road at kisian junction just next to
desnol fueling station.

The business will provide its customers with the reliable efficient and affordable work output
services and this will be the main purpose this business.The business will involve the capital
investment of 10 million includes the expenditure and others.

The primary income for the organization will come from selling of the machines spare
parts the income of hired machines .Will come from minor and major serviceing of machines.
 Chapter one Business this description

1.1 business name

The purpose name of the business will be some machines and the equipments for hire.I adopted
the business name from my neighbor who introduces me into his work while I was in class two
and he inspired me towards the use and work of the machines. The business introduced will be a
retail store, our workshop for media and minor would work machines and equipment for hire,
we’ll also offer service like selling their parts and serviceing the machines. They show will be
divided into two part a we will contain machines for higher and services like repairing of
machines will be offered in this section . but to be is where new machines and spell but of those
machines will be sold use mismanagement of the workshop and shop itself. The sponsor is
Charles Omondi aged 42 years married who is currently working and managing his workshop.
Who is a Sole proprietor of the business.Incompleting of my college level education I will lucky
get to work at our actual of my neighbor where I will assist him in operation and servicing Of
woodwork machines. And that when I got the expedience and develop more interest in the
business.

1.2 Business location and address

The business will be located along Kisumu highway busia road at kisian junction just next to
décor fueling station. My main target are those people around kisian .

The address of the business will be :

SAMPO WOOD WORK MACHINES AND EQUIPMENT FOR HIRE

P.O BOX 7373- 40100

KISUMU

MOBILE : 0794643378/01112297260

EMAIL : [email protected]

1.3 Form of ownership.

1.4 PRODUCT AND SERVICES
First and for host the binnous will start by the folowing wardwork machines equipments
includes –

Lida table saw

Carpentry table saw

Carpentry electric saw

OCA wood router machine

Stallion multi purpose

Total electric planner

Industrial circular saw

Business will be flexible , give conducive environment to employees. Employers and owner wil
offer grand services to customers which will enhance attitudes of customers towards buying of
machines spare parts and repair faults services
1.5 JUSTIFICATION AND OPPORTUNITY
When considering the justification for hiring woodwork machines and equipment, several factors
come into play that can demonstrate the benefits and practicality of renting rather than
purchasing outright. Here's a breakdown:

1. Cost-Effectiveness

Ownership requires ongoing maintenance, repairs, and storage costs, which can be avoided by
hiring. The rental company typically covers these expenses, reducing the overall cost of use.

2. Access to High-Quality Equipment

Hiring provides access to the latest models and technology without the need for constant
upgrades. This ensures the use of efficient, high-performance equipment, improving the quality
and speed of work.

3. Flexibility

1.6 INDUSTRY
For businesses or individuals who do not need constant use of woodwork machines, hiring offers
the flexibility to rent equipment only when required. This approach aligns costs with project
timelines and budgets.

The business plan is a type of business that is designed to satisfy the minds of the customers in
the country and the world At the initial stage, the fear of business will with on this meeting of the
needs of the surrounding population of Kisian and its environments Kenya at the tertiary level of
development the enterprise i planned to extend its distribution to cell and at Kenya and this as
planned will be 8-10 years construction.

1.7 GOALS & OBJECTIVES OF THE BUSINESS

My target as a self-reliance for this across is to Ensure, probably, within 12 years will have
employed more than 15000 individuals die to open of new branches countrywide.

OBJECTIVES
The main objective is to supply residents and currencies with quality machines and their
spaceport and secretions level at services done succeeding the expectation of customer and later
to create self employmeny for the Individuals.

1.8 ENTRY AND GROWTH STRATEGY

Entry into the business shall be at 2032 january , when there will be high number of woodwork
machines and equipment permit The location of this business shall also help the framing into
then okwor market, as well bull to accessible to many customers To enable customers know or
when the business property there wil be a big signpost at to round and in the strategic position.
There shall be face-to-face communication with the customers to ensure that one is satisfied with
services given to them. Dedocent shall be given to good worthy of certain amount also services
on this will initiate and promote the customer relationship. This will position good
communication skills and attitude with customers and the will encourage des relationship
between the customers and the business employees. Thus promoting business premises.
CHAPTER TWO

2.0 MARKET PLAN.

2.1 CUSTOMERS
Due to the high competition from other business like Down ban machinery services and hire
services. Selling, at and hiring of these machines at low and affordable price as prevailed. And as
stated earlier, most of the targeted customer are from around Kisian and Comprissios of the box
high middle and low income customers who are treated equally and appropriately. The demand
of the customer within Kuan area can be predicted daily and weekly since It is realistic that all
the furniture and materials of related sites that itta Rea, arce daily texture for the people in there
life day in day out Since this form deal with all varieties of the customer any payment is qui
accepted the fry will deal with educated and computerized personnel and as a entrepreneur war
face and receive other demands from those customer bare on different design depending on the
other special machines which Make us to think aloud.

2.2 COMPETITION
Apart from my business other small and large workshops have been running and Managing their
business successfully in and out the region. The business will carry vigorous promotions to
create awareness among the people. Due to competition the enterprise managements shall unsure
fair price to products Sold and services offered. The business will develop online by creating a
website and placing its products of new have almost all the spare parts of leaving wading. that
they ready give competition to call and every member within the Region and which also gist thon
large amount of income to their works huge. But they have learning machines that do the work
which makes it difficult for there to cope with other competitors. The sampo service Machines
and equipment has the machine and it's Spare parts that make at least mod reliable. to the
customer since it reduces movement from one workshop to the other. The only reason once can
see this shop is that customers like the artwork and when given by the other Sellers and Reforge
this gives the grantee Competition and love of sales rates and services Affixed in this sector
Running and managing the business one of these enticed processes that once needs to find the
facts and Ways of ensuring that he/she has profit or has got the last kiss in his/her my business.
To cope with this competition efficiently and on catalysts. I shall ensure that there is the proper
handling of the customer to increases trustworthiness it will be done on developing habits of both
and care more for the customers to computer the other parts

2.3 MARKET SHARE/SDE

The main business workshop will be located in kisian opposite Desmol Fueling station. There is
availability of a good road network that links Kisian and other towns and this offers a good
opportunity that I will used to reach the next target, this area around is large enough

brand at woodwork machines operations and A mantaince process , and types of shape the
machines can form. There will be also parttime teachings on how to use the machines. Therefore,
will get

touched with online directors.

Down town woodwork machineries 10%

Jammy woodwork machineries for hire 5%

Mike furnitures and woodwork machineries 25%

Sampo woodwork machines and equipment for 60%

hire

And Kurufor the People above are my competitors, they include. Downtown woodwork
machineries, Jammy woodwork machines for hire, Mike Furniture and woodwork machines and
therefore I am glad to have the following headers within this region Being that I will be leading
with high percentage of sevin adequate services to my mouth. Down town woodwork modular
have more with members but they lack machines to improve and to continue with their work
adequately who is heated poste to my workshop I also have Jemmy woodwork machines for hire
who is located kisumu-Bondo road at Crown Point Company. Who has good management and
many people like the ship but lack spare parts of two machines which mostly use a lot of money
to do services on buying games of their mediation; which is great challenge to his workshop On
the other hand, Mike furniture and woodwork machines and It encourages this kind of the
business and other business. The market share contains likes of for my word out machines for
hire, Down town woodwork machineries, mike furnitures and equipment for hire. shows in the
pie chart below

market share

18%
sampo
Jemmy
45%
mike
Down town
27%

9%

2.3 ADVERTISING AND SALES PROMOTION

The enterprise shall employ three acts /SJ of Media internet and bill board. The enterprise will
use media like Tvs and Radios to advertise and to promote the goods products and services
offered in the shop. In addition the sales promotion will be done through internets, due to faster
growth of this generation many people can reach the products and their prices; internets sources
like whatsapp , facebook, twitter shall be used. Billboard shall be to promote sales of products
and services as it will Encourage and increase programs growth and acceptance of these products

For an enterprise to increase the of progress growth of these products and services advertisement
be done yearly So as to save and increase Awareness of per customers and clients. And this
project of advertising and sales promotion will said Around forty and include the party's why will
participate in the promotion
An enterprise then will set standards on how to handle customers to increase effectiveness of
more customer this will make workshop succesfull and will increase the rate sales of products
and services.

2.4 PRICING STRATEGY

As a sales entrepreneur setting of price of the business will take into account, the processes of the
price at which it will acquire the commodities e.g timbers woodwork machineries spare parts and
other services offered

The setting of the market place will depend on the competition and quality and reliability of the
products and services.

2.5 SALE TACTICS

As a sale entrepreneur businesse shall employ the qualified personel at full capacity, who will be
able to and ensure handling and caring of the customers. The following method of selling shall
be employed, prospecting of the customer this will encourage concerns and care for related
customers to the future reference. Secondly the qualified personnel will be ensure that the
personnel will always be ready for the services and products afford.

2.6 DISTRIBUTION STRATEGY

The products and services will be delivered to clients of other Companies near and far to good
road transportation, There shall be also an outlet shop at at the gates to serve customers near
business location.

Offering job to trained trainess and qualified persons who easily understand the customer the
cutomer could be an ecesity idea to raise business taste.
CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 MANAGEMENT TEAM

The management team will be as follows

Company manager(CEO)

Assistant manager

Store manager

Finance manager

Executive marketing and sales manager

Part time workers/cleaners

CEO

FINANCE MANAGER PRODUCT MANAGER ASSISTANT MANAGER

EXECUTIVE MARKETING AND SALES STORE MANAGER

MANAGER
 PART TIME WORKERS

3.2 RESPONSIBILITIES
The enterprise manager will be responsible for planning, organizing and managing the activities
of the company.

The finance manager duties includes planning the finance and monitoring activity services that
maintain enterprise process continuation.

Assistant manager will be responsible for the management of health and welfare of the workers.

The account manager identifies and develop business opportunities in existing channels.

Executive marketing and sales manager will work to maintain sales volume in line with
objectives of the enterprise, review sales progress, develop specific plan activities to ensure
revenue growth. He is responsible for calling customers, maintenance and extension of sales
territory. A diploma or certificate in sales management is required for the post.

The product manager is responsible for managing the products, operating to ensure the
achievement of the company. A diploma in electrical and electronics power option is required in
this post

The part time workers and cleaners who work time but not regularly. They also take part in
cleaning to ensure that the working place is clean
3.3 RECRUITIMENT TRAINING AND PROMOTION

3.3.1 RECRUITMENT
The post shall be advertised on local media. The application shall be done and interview done by
qualified persons.

The recruitment will be presentation of education certificates and other certificates required.

3.3.2 TRAINING
The staff will be taught to know how to here to the roles and regulations set in the business and
the precaution so breaking them

There shall be refresh training so as to keep the employees up to date with developing
technologies.

3.3.3 PROMOTION
The staff that will show greater progress in achieving the business goal shall be motivated
through promotion which include salary increments.

3.4 REMUNERATION AND INCENTIVES

3.4.1 THE REMUNERATION FOR VARIOUS PAST SHALL BE;

SN JOB TITLE BASIC ALLOWANCE TOTAL TOTAL
SALARY MONTHLY ANNUAL
(KSH) SALARY SALARY
 1. SAMPO WOOD 50000 10000 60000 720000
CEO

2. ASSISTANT 47000 50000 52000 624000

MANAGER

3. STORE 40000 6000 46000 552000

MANAGER

4. FINANCIAL 41000 7000 48000 576000

MANAGER

5. PRODUCTION 35000 5000 40000 480000

MANAGER

6. EXECUTIVE 34000 4000 38000 456000

MARKETING
AND SALES
7. PARTTIME 850 3200 28000 12000
CLEANERS

TOTAL 312000 3420000

A trade license (enterprise license) will be obtained from meru county government and shall be
renewed annually as required

3.4.2 INCREMENTS
Lunch shall be provided in the company for all workers .The executive marketing and sales
manager shall be paid a 10% commission for any sales over and above the daily target.
3.5 LINCENSES, PERMITS AND BYLAWS

3.5.1 LICENSES

3.5.2PERMITS
A business permit from the county government. This shall be obtained to ensure that the business
adheres to the laid down laws

3.5.3 BYLAWS
The county by laws on the location of the business shall be considered .The waste products and
containers shall be disposed correctly according to NEMA.

3.6 SUPPORT SERVICES

3.6.1 BANKING SERVICES

The business shall open an account with cooperative bank mikinduri branch.

The deposit can be made directily to the account by customers and baking slips presented to the
finance manager as prove of payment .Electronic money transfer through moble phone service
providers will be also allowed.

3.6.2 INSURANCE SERVICES

The business shall be insured with AMACO insurance to shield against risk that may arise. The
risks include personal risk and financial risk.

3.6.3 LEGAL SERVICES

These services will be sought when the need arise from qualified and experienced law firm
within meru county.
CHAPTER FOUR

4.0 PRODUCTION/OPERATION

4.1 PRODUCT FACILITY AND CAPACITY

The equipment and facilities involved in the business include:

Compressors

Cables

Conduits

Switching facilities

Phone accessories

Air conditioning facilities

Toolbox

The assets involved are:

Land

Fencing materials

Transport vehicle

Buildings

MD office
4.2OPERATIONSITELAYOUT

SALES OFFICES

PHONE ACCESSORIES
STORES

FABRICATION AND PAITING

NEW INSTALLATIONS
ASSESORIES

PARKING

BACK UP
GENERATOR
4.3PRODUCTION STRATEGY

Enterprise will manage to serve customers more than their expectations by employing qualified
technicians and normal workers ensuring operations of repairing faults , damages are done by
experience.

Cost of materials per month

Item Amount (KSHS)

Toolbox 105000

Woodwork machines accessories 30000

Air conditioning facilities 15000

Spare parts 90000

Extension cables 5000

Total costs 245000

Cost of labour per month

Personnel Salary / month.

CEO 60000
Assistant manager 52000
Store manager 46000
Financial manager 48000
Production manager 40000
Executive marking and sales manager 38000
Part time cleaners 28000
Total monthly costs. 312000
Overhead costs

Item Amount (KSHS)

Electricity 5000

water 8000

Telephone 125000

Insurance premiums 300000

Transport 150000

Postage 100000

Total cost 688000

Total cost of production per month

Item Amount

Cost of materials 245000

Cost of labour 312000

Overhead costs 6888000

Total costs 1245000

4.4 PRODUCTION PROCESS

4.5 PRODUCTIONS AFFECTING OPERATIONS

4.5.1 HEALTH REGULATIONS

Managers will ensure disposal of food waste by ensuring enough dust bins in the enterprise and
machinery an used parts e. g plastics ,rubber ,papers and chemical containers are well disposed.
Proper ventilation and spacing is a critical success factor. Watering and water source will be
numerous for drinking and washing utensils. Organizing every morning and evening Hopnhi
electrical and electronics complex is cleaned and waters plashed to avoid much dust.

4.5.2 ENVIRONMENTAL REGULATIONS

Weather conditions that are in the enterprise e.g sunlight, rainfall will be throughghly dealt with
by controlling using the housing materials. painting during rainfall to be done under the shade.
CHAPTER FIVE

5.0 FINANCIAL PLAN

The business will source its capital through:

Bank loan from Cooperative Bank where the 80% of the capital involved will be secured.

Contribution from the entrepeneur.

5.1 Pre-operational costs

Projectedstartupcosts
Initialleasepaymentsanddeposits 50,000
Working capital 150,000
FF&E 60,000
Lease hold improvements 100,000
Security deposits 200,000
Opening supplies 100,000
Company vehicle and lease deposit 100,000
Marketing budget 100,000
Miscellaneous and unforeseen costs 5 ,000
Totalsartupcosts 865,000
5.2 Pro-forrma balance sheet

Year 1 2 3
Assets
Cash 880,930 1,040,780 1,231,490
Development/expansion 525,000 580,550 652,870
Inventory 350,000 627,770 989,350
FF7E 20,000 472,220 761,480
Accumulated 80,360 160,710 241,070
depreciation
Total assets 450,360 560,610 794,110
Liabilities and equity
Accounts payable 130,050 267,160 409,900
Long term liabilities 169,210 1,080,840 992,470
Other liabilities 0 0 0
Total liabilities 299,260 348,000 402,360

Net worth 626,320 1,212,610 1,991,750

Total liabilities and 925,580 1,200,452 1,794,110
equity

5.3 Working capital=ksh 7,000,000

5.4 Cash flow projection
Year 1 2 3
Cash from operations 522,250 222,170 492,620
Cash from receivables 0 0 0
Operating cash flow 522,250 222,170 492,620

Other cash inflows

Equity investment 250,000 0 0
Increased borrowing 150,000 0 0
Sales of business assets 0 0 0
E/Pincreases 379,020 435,870 501,250
Total other cash 779,020 658,040 501,250
inflows

Total cash inflow 301,270 458,040 3,393,880

Cash outflows
Repayment of principal 80,790 88,370 96,660
E/Pdecreases 248,970 298,760 358,520
E/Rincreases 0 0 0
Asset purchases 125,000 555,540 723,160
Dividents 65,580 1,555,520 2,024,840
Total cash outflows 520,340 2,498,200 3,203,170

Net cashflow 700,930 159,850 190,710

Cash balance 700,930 1,040,780 1,231,490

5.5 Pro-forma income statement

Sales 552,900 7,142,660 7,785,500
Cost of goods sold 655,290 714,270 778,550
Gross margin 90% 90% 90%
 Operating income 1,208,190 56,428,390 7,006,950
Expenses
Payroll 130,000 2,502,900 2,737,120
General and 44,000 149,760 155,750
adminstrative
Marketing expenses 137,610 150,000 163,500
Professional fees and 50,000 257,500 262,530
licenses
Insurance costs 5,000 78,750 82,690
Travel and vehicle 50,000 165,000 181,500
costs
Rentandutilities 45,000 183,750 192,940
Miscellaneous costs 4,150 53,570 58,390
Pay roll taxes 64,500 375,440 410,570
Total operating costs ,738,450 3,916,660 4,247,680

Income tax 66,500 908,110 1,005,950

Interest expenses 31,070 121,970 112,020
Depreciation 18,930 58,930 58,930

Netprofit 425,860 1,481,650 1,641,290

Profit margin 17.18% 20.74% 21.08%

5.6 Break even analysis

Year 1 2 3
Monthly revenue 6,930 425,450 444,620
 Yearly revenue 83,160 5,105,400 5,335,450

5.7Desired financing
Financing
Equity contribution
Managementi nvestment 250,000

Total equity financing 250,000

Banks and lenders 1,000,000

Total debt financing 1,000,000

Total financing 1,250,000

5.8Capitalization
Year 1 2 3
Sales 552,900 7,142,660 7,785,500
Operating costs 775,260 391,666 4,247,680
Taxes,interests and 96,490 1,089,010 1,176,910
depreciation
Netprofit 125,860 148,165 1,641,290

5.9 Profitabilityratios
Year 1 2 3
Sales
Sales growth 0% 20% 17%
Gross margin 70% 70% 70%

Financials
Profit margin 16.69% 20.65% 23.18%
Assets toliabilities 1.48 1.9 2.42
Equity toliabilities 0.48 0.9 1.42
Assets to equity 3.07 2.11 1.7
Liquidity
Acid test 0.68 0.77 0.88
Cash to assets 0.46 0.41 0.36