CHAPTER ONE

1.0 INTRODUCTION

1.1 BUSINESS DESCRIPTION.

The business intends to venture into a flower farm. The business name is Jami
flower farm; the business will be located along Eldoret - Iten road. Its aim is to sell
flowers to customers in town.

1.2 MARKET PLAN

Marketing plan is the ability to build a growing body of satisfied customers and
improve the company. Jami flower farm has different customers in town and also
outside the town e.g. Kericho and Nakuru; customers could get products and
service in different way.

The sales tactics will be applied, those frequent customers especially who buy the
product in bulk will be provided with discount. Advertisement and promotion will
be conducted by use of posters and local radio station.

1.3 ORGANIZATIONAL PLAN.

The management system is designed to cope with the operation of the business. It
shows how the enterprise has been divided in compartment its responsibilities
assigned to every department. The starting personnel will be for each having a
responsibility in the running of the business to make it successful.

1.4 PRODUCT AND OPERATIONAL PLAN.

Jami flower farm requires materials and equipment before starting the operation.
This materials and equipment required to run the business.

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It ensures that any services rendered to a customer must be satisfied beyond and
reasonable doubts.

This is the key point as far a winning customer confidence is confirmed.

1.5 FINANCIAL PLAN.

This refers to the money used to ensure proper operation of a business operation of
a business organization. The estimated capital for the first three years will be Kshs.
3000 000

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 CHAPTER TWO

2.0 BUSINESS DESCRIPTION.

2.1 BUSINESS NAME

The proposed business name is Jami flower firm. This name was gotten from
Swahili word the community, which is the targeted market , the flower farm
intends to sell it to different occasions. Examples are parties, weddings,
celebrations, meetings and farewell parties.

2.2 BUSINESS LOCATION.

The business is located at Eldoret town along Iten – Eldoret road near Chepkoilel
Campus. The business is located in this place of its fertile land and the demand of
flower from different customers. For example, Cheserek’s farm when he exports
them. A part from the customers there is good communication and enough power.

JAMI FLOWER FARM

P.O BOX 2060,

ELDORET.

2.3 BUSINESS OWNERSHIP

The business will be a sole proprietorship, the owner of the business is Mr Timon

Kogo who has a farm near town and started the business away from Eldoret

town; when he noticed a lot of customers who travelled from different parts

to purchase the flowers. He decided to locate along Iten – Eldoret road

which makes easy transport to customers. For the first customer he sells

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 more than one hundred items of flowers on the graduation day at Chepkoilel

Campus. Some customers come to the farm to buy the flowers to plant in

their compounds.

2.4 TYPES OF BUSINESS.

It is a flower farm, where flowers are grown in a green covered field. These
flowers are sold in harvested flower buds, seedling or those to be transplanted to
other places.

The owner started the business because there is high demand of flowers especially
during the month of December and Holiday seasons because of different occasions
taking place and many customers need fresh flowers. It is a product industry kind
of business hence produces the flowers in plenty to customers.

2.5 PRODUCT / SERVICE

Jami flower farm is a product kind of business hence flowers are produced from
the farm thus sold to the customers. Visitors especially those visiting the Rift
Valley Province take interest in the farm and thus take a stop over to buy the
flowers for various occasions and to their homes.

In other cases flowers are harvested from the and taken to the factory where they
are sorted to different demands of customers, some customers need flowers that
still have the buds growing on them and while others need flowers to be planted.

2.6 JUSTIFICATION

The business involves Agriculture. The location of the business is in a green land
with enough water from the rivers and the county council also provides piped

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water. All this started from a small farm to a big ten hectares land and it continues
after when the customers increase the flowers in the farm decrease. The major
requirement of the business is to cater for the needs of the customers of Eldoret
town, Iten and to other places of the country hence this gave a challenge to the
business to grow at large.

2.7 INDUSTRY.

The flower farm in the Agriculture industry will get supplies from different
countries for plating different types of seeds. Unlike seedlings from Kenya this will
improve the business by producing different flowers.

The business is small growing business, labour machine needed are few because
work done is by use of hand. It’s very competitive because of one flower farm
called Equator Farm which has a branch in Chepkoilel campus. The flower farm is
not seasoned just because flowers are grown every month and when they are
harvested there is already others to be harvested.

2.8 BUSINESS GOALS.

There stated short term and long term goals will be as follows.

Short term goals.

 Make profit each and every month hence improve the farms growth.
 To satisfy the each customer needs every time they come to purchase the
flowers.
 To sell more flowers each and every day.

Long term goals.

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  To improve and make high steps of running a flower farm after there years.
 To make the business standards well maintained in the farm.
 To open more branches in the years to come in different places of the
country e.g. Nakuru, Kitale and Kisumu.
 To create more job opportunities by employing learned and qualified
workers to obtain the set goals.

CHAPTER THREE

3.0 MARKETING PLAN.

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3.1 CUSTOMERS.

This are people willing and able to buy the goods and services that are needed.
Potential customers are from churches, schools, hospitals, Hotels, clubs and
companies.

Many of them get the flowers for their ceremonies, parties and meetings.

3.2 COMPETITION.

Equator farm is one of the competitors within the town; it has two branches near
Eldoret town. This company purchases flowers in bulk just when they need in high
demands of the flowers. It has existed in Eldoret municipality for the last three
years and it will be a great challenge of Jami flower farm.

Jami flower farm sells their flowers directly to customers by transporting to their
places and giving them an advantage. Due too long working hours of the shop
assistant, the publics confidence is diminishing and nowadays it sells more
products.

Kanduki flower farm is located in town center the customers are more due to the
churches, schools, hospitals and clubs. Unlike the Saosa Flower farm which is
outside the town center. The advantage to Jami flower Farm which reduces
transport costs to many customers. It also attracts more customers who visit the
town centre unlike the equator flower farm inside the flower farm inside the rural
area where customers do not reach.

3.3 PRICING STRATEGY.

There are different ways of pricing commodities and the charges for each flower.
Jami flower farm have different types of flowers and some trees. The product price

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will be determined after considering variable costs and in comparison to other
competitors. The prices will be flexible and will reduce with time so that more
customers can purchase flowers in that farm.

3.4 SALES TACTICS.

During services the sales women and men and other farm assistants will be sent to
rural centers and other nearby towns to offer information about Jami flower farm
and their products. The farm also employs confident attendants who will handle
customers in a more responsible manner.

During any ceremony the sales ladies and men are sent to sell these flowers and
also give some free to customers. Flowers would be harvested and packed in boxes
and transported to some of the supermarkets in those seasons which the demand is
high in the market.

3.5 ADVERTISING AND PROMOTION STRATEGY

The methods of promotion and advertising to be used include signboards, posters

and newspapers. Whereby people are able to see and hear about the flowers. Sign
posts will be hoisted on the way in the junction of Chepkoilel and Iten road, also
other signposts will be hoisted as far as on your way to Nakuru hence the
florescent lights and flowers will be planted around the sign post.

The sign post would contain the name, address of the flower farm. This would be
printed by qualified printer so that writing is visible from a distance. This helps
potential supplies or customers to locate the farm easily.

Around the flower farm or the reception would be planted different flowers and
each flower will be named according to both English & Kiswahili.

3.6 DISTRIBUTION STRATEGY.

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The distribution strategy for transportation of the flowers will be provided; pickups
will be used to transport the flowers to destination of the customers. For the farm it
will distribute the flowers to different places by pickups and hired vans.

Flowers are packed in the boxes and distributed to customers, this would make
easy transportation of flowers. Some of salesmen would use motorbike to
distribute the flowers.

CHAPTER FOUR.

4.0 ORGANIZATION PLAN AND MANAGEMENT

4.1 ORGANIZATIONAL STRACTURE.

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 MANAGER

SUPERVISOR DRIVER

GARDENER

4.2 MANAGEMENT TEAM

The following are the persons in the management of the business.

MANAGER

Duties / responsibilities

 Employ and dismiss the staff.

 In charge of the establishment.
 Payment of salaries.
 Stock taking.

Qualifications.

 Diploma in horticulture
 Certificate in computer packages.
 A minimum of three years experience in flower farm.

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 Aged between 25 – 35 years old.

SUPERVISORS

Duties / responsibilities

 Arranging and keeping records of the products.

 Going round the garden and far as responsible for seedling transportation.
 Offer appropriate instruction of the expected job.
 Keeps the record books of account.

Qualification

 Certificate in human resource management

 Certificate in computer packages.
 A minimum of six months experience.
 Aged between 25 – 40 years.
 Should be of good conduct.
 Able to speak in both English and Kiswahili.

GARDENER

 Ensures that the store is clean.

 Ensures that the equipments are clean and well maintained.
 Responsible for the flowers general cultivation.
 Keeps the keys to the stores.
 Ensures that the farm is clear from the bush.

Qualifications

 Able to communicate in English and Kiswahili

 Two years experience in the same field.
 O –level certificate
 Aged between 25 – 40 years.

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 Salary for the gardener is minimum of Kshs. 4000.

4.3 RECRUITMENT AND TRAINING.

Some personnel’s are to be offered education and information regarding the

business in various institutions to increase the knowledge hence various
seminars will be held within the business by inviting lecturers to inform
workers about the work and how it is supposed to be performed.

Overtime will be avoided and will be clearly indicated in a writing statement of

the terms of equipment to the staff and everyone must be punctual. This will be
motivated by the manager hence the workers days are completed within a given
range of time and duration. Thus hardworking staff will be promoted with time
and salary increment is considered.

4.4 REMUNERATION AND INCENTIVES.

Workers are to be paid their salaries according to different sections they are
working hence overtime is to be paid according to the extra time or hours they
work.

Workers to be provided with 10:00am and 4:am o’clock tea-lunch will be

treated as part of the staff meals and added to labour leave maternity, to be
given to women once a year and they are paid their normal salaries and
travelling cost included men are given leave according to the month they are
given once per year.

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Sick off will be given to workers who will not be feeling well and there are
taken to the companies hospital.

4.5 SUPPLY SERVICES.

Electricity

The supply of power service will be offered by the Kenya power and lighting
company. Electricity is a great help because it gives light to the flower farm and
the workers houses, this helps in noticing I any stealing, it also helps watchmen
in lighting during their work at night.

Telephone

It is required by the farm to communicate with customers who are far. The
manager will use the telephone to know what is needed, when and where
drivers and some workers will use to inform that managers or the company
what is going on where they are. That is if they are transporting flowers and a
problem occurs while on transit it will be easy to communicate. The driver and
the manager will use to inquire for the goods supplied and goods delivered.

Insurance

The company will have to be insured against cases of fire and theft.

Security

Personnel’s who offer security services to the flower will be acquired from the
protective custody security guards.

Water.

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It will be piped by the water engineers of workshop engineering department, the water will
help in watering the flowers, cleaning the equipment and also piped to the workers houses for
their own purposes.

4.6 LICENSES AND PERMIT.

The business is going to be registered and to obtain the required license before

its operation charges for the business license and permits are to as per the trade

licensing act.

The permit will be provided by the Eldoret municipal council through the

ministry of labour and the ministry of agriculture. It shows the name its

location and the charges required for a particular time charges for the permit

will depend on the kind of business one is involved in i.e. 3,000 /= for a

cleaner.

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 CHAPTER FIVE

5.0 PRODUCTION AND OPERATIONAL PLAN

5.1 PRODUCTION, FACILITIES AND CAPACITY UTILIZATION.

This business is going to have a number of assets to enable it run with minimum
difficulties to ensure effective operation of the flower farm. The following
facilities will be required.

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Item NO: Cost / item Ksh Total
Jumble 8 200 1600

Panga 4 150 600

Prunner 8 250 2000

Slasher 8 100 800

Watering can 4 300 1200

Spade 4 150 600

Shovel 4 150 600

Knapsack sprayer 8 200 1600

TOTAL 48 1500 9000

5.2 PRODUCTION STRATEGY

This is operational circle on how the business / enterprise will operate.

Type of material Quantity Source Cost per (Ksh) Total

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Boxes 10 Supermarket 200 2000

Chemicals 10 Agro vet 300 3000

Cloves 8 Hardware 20 160

Boots 8pairs Bata 300 2400

Aprons 8 Uniform shop 100 800

Polythene 16 Hardware 50 800

5.3 PRODUCTION, DESIGN AND DEVELOPMENT.

The product design shows the general look of the items or the goods involved
in business flowers and the containers (boxes) used should have unique shape
and patterns to relieve the customer from the monotony of the usual shapes and
signs which may be outdated.

The farm will have a lot of uniform for the workers and the staff. For the
workers in the farm will wear aprons, boots and hats which will help protect
them from dust? For the staff in the office, will wear black trouser, white shirt
and a black jacket. This will help differentiate the workers in the farm.

Making advertisement for the product, transportation and providing loading and
unloading services to customers hence customers will also contribute to the
development of the business. Some of the losses will be packed in polythene
packs with some wording.

5.4 RELEVANT REGULATIONS

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 i). Trade Mark Act (CAP 506)

It allows any person who is running a business of an y kind. It allows the

business to uses of any kind of trade mark which can be understood by the
customers. It also helps the customers differentiate with other business.

ii) Registration of the business name. (ACT CAP 499)

Ever y form of business should have a name. This should not be the Sur. Name;
it should be a sign with the registration.

iii). Trade License Act (CAP 497)

The business with the government to show that it is not illegal. This will reduce
the business being closed down.

iv). Employment Act (CAP 226)

It provides that any contract of service which is not in writing and not
signed by the company involved.

v). Income Tax Act (CAP 470)

it is paid to be registered office for the business to run.

Trade mark

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 CHAPTER SIX

6.0 FINANCIAL PLAN

6.1 PRE-OPERATIONAL COST.

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This is the money required before the start of any business. The projected starting
capital is Kshs 1,000,000 and this is composed of:

a). personal savings - Ksh 150,000

b). parent’s offer - Ksh 50,000

c). bank loan - Ksh 800,000

6.2 ESTIMATION OF WORKING CAPITAL.

Items Cost
Transport 5000
License 2000
Telephone 500
Rent 6000
Electricity 5000
Water 3000
Insurance 8000
Renovation 4000
Postage 500
Advertisement 2000

Total 36000

Overheads

Expenses Monthly Cost

Transport 2000
License 1000

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Water 2000
Postage 10
Electricity 2000
Advertisement 1500

Total 8510

6.3 PREPARATION OF PROFORMA BALANCES SHEET.

Balance sheet at the start 30th June 2010

Capital Kshs Fixed assets Kshs

Owners Equity 150,000 Furniture 0,000
Equipment 9,000
Land 21,000

Liabilities Current assets

Parent’s offer 50,000 Cash at hand 800,000
Bank loan 800,000 Creditors 150,000
1,000,000

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