BUSINESS PLAN

KOKOTH PLUMBING HARDWARE

P.O BOX 30 – 40400

MIGORI

BY:

OKOTH ISAIAH OTIENO

INDEX NO: 731101078

PAPER NO: 1305/316B

PRESENTED TO THE KENYA NATIONAL EXAMINATION COUNCIL IN

PARTIAL FULFILMENT OF REQUIREMENT FOR THE AWARD CRAFT IN
PLUMBING AND PIPE FITTING.

MAWEGO TECHNICAL TRAINING INSTITUTE

P.O BOX 289 – 40222

OYUGIS

JULY 2023
DECLARATION
This business plan is my original work and has not been submitted for any award elsewhere

CANDIDATES NAME: OKOTH ISAIAH OTIENO

Date.......................................................

Signature...............................................

SUPERVISOR: MADAM MERCYLEEN

Date...............................................................

Signature.......................................................

i
DEDICATION
I dedicate this work to my beloved father, Mr. Joseph Otieno for supporting this work to be
successful. I appreciate all that he offered which enabled my business plan to be.

ii
ACKNOWLEDGEMENT
A grant thanks to the institutions for allowing me takes my course. I also thank my lectures in
the business department for giving me the knowledge.

I thank my supervisor Madam Mercyleen for giving me the support and knowledge to come
up with this business plan and finally I thank my classmates for their support.

iii
Contents
DECLARATION ........................................................................................................................ i
DEDICATION ...........................................................................................................................ii
ACKNOWLEDGEMENT ....................................................................................................... iii
EXECUTIVE SUMMARY ....................................................................................................... 6
MARKETING PLAN ................................................................................................................ 6
ORGANIZATION AND MANAGEMENT PLAN .................................................................. 6
OPERATIONAL PLAN ............................................................................................................ 6
FINANCIAL PLAN................................................................................................................... 7
CHAPTER ONE: BUSINESS DESCRIPTION ...................... Error! Bookmark not defined.
1.2 BUSINESS LOCATION AND ADDRESS ...................... Error! Bookmark not defined.
1.3 FORM AND TYPE OF BUSINESS OWNERSHIP ......... Error! Bookmark not defined.
1.4 PRODUCT AND SERVICES ........................................... Error! Bookmark not defined.
1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY ... Error! Bookmark not defined.
1.6 INDUSTRY ....................................................................... Error! Bookmark not defined.
1.7 BUSINESS GOALS AND OBJECTIVES ........................ Error! Bookmark not defined.
1.7.2Business objectives .......................................................... Error! Bookmark not defined.
1.8 ENTRY AND GROWTH STRATEGY ............................ Error! Bookmark not defined.
1.8.2 Growth strategy............................................................... Error! Bookmark not defined.
CHAPTER TWO. MARKETING AREA ............................... Error! Bookmark not defined.
2.2 Market share....................................................................... Error! Bookmark not defined.
2.3 Competition........................................................................ Error! Bookmark not defined.
2.4 METHODS OF PROMOTING AND ADVERTISEMENT ............ Error! Bookmark not
defined.
2.4.2 Advertising Methods ....................................................... Error! Bookmark not defined.
2.5 PRICING STRATEGY ...................................................... Error! Bookmark not defined.
2.6 SALES TACTICS .............................................................. Error! Bookmark not defined.
2.7 DISTRIBUTION STRATEGY .......................................... Error! Bookmark not defined.
CHAPTER THREE: ORGANIZATION AND MANAGEMENT PLAN ... Error! Bookmark
not defined.
3.2 BUSINESS MANAGEMENT AND QUALIFICATION . Error! Bookmark not defined.
3.3 PERSONNEL, NUMBER AND UTY. ............................. Error! Bookmark not defined.

iv
RECRUITMENT TRAINING AND PROMOTION .............. Error! Bookmark not defined.
RENUMERATION AND INCENTIVES. .............................. Error! Bookmark not defined.
LICENCE, PERMITS AND BY – LAW ................................ Error! Bookmark not defined.
3.7 SUPPORT SERVICE ........................................................ Error! Bookmark not defined.
CHAPTER FOUR; OPERATIONAL PLAN .......................... Error! Bookmark not defined.
4.2 OPERATIONAL FACILITIES AND CAPACITY .......... Error! Bookmark not defined.
4.3 OPERATIONA STRATEGY ............................................ Error! Bookmark not defined.
4.5 Regulation affecting the operation ..................................... Error! Bookmark not defined.
4.6 Materials and equipment .................................................... Error! Bookmark not defined.
5.1 PRE-OPARATION COST ESTIMATION ....................... Error! Bookmark not defined.
5.4 PROFORMA INCOME STATEMENTS .......................... Error! Bookmark not defined.
5.5 PROFORMA BALANCE SHEET .................................... Error! Bookmark not defined.
5.7 PROPOSED CAPITALIZATION ..................................... Error! Bookmark not defined.

v
EXECUTIVE SUMMARY
BUSINESS DESCRIPTION

KOKOTH PLUMBING HARDWARE is a sole proprietorship. The business shall be located in

Migori town along Masara Lichota Air strip road opposite Akidiva Hospital, adjacent Moi suba
girls. The business intends to commence its operation in January 2023. The business will be
dealing in building materials both metallic and non-metallic form. KOKOTH PLUMBING
HARDWARE falls under building and constructors industry. Kokoth has a target of generating
40% profit annually. It will ease the problem of unemployment by creating job opportunities
entry it will advertise its products by use of posters, radios, signboard, at Migori town and the
surrounding. The business is aiming at bringing changes to the community and employing many
people in the area and increase customers’ base.

MARKETING PLAN
The business will service an area of large population by the start the business will serve
approximately 45% the population. The business will have competition will enable quality
service to be product. Promotion will be carried out to ensure awareness of the. The business will
use difference sales techniques and various channels to overcome challenges and reach its
customers.

ORGANIZATION AND MANAGEMENT PLAN

The business will be organized and managed by Okoth isiah as the sole manager and plough the
profits realized back into the business to enable easy management this shall be done after
acquiring abundant knowledge in the faculty of plumbing and pipe fitting course under
building and construction and the business managerial skills respectively and help of others
who will be recurred through interview, trained, promoted and remuneration. This will be done
following the qualifications of a person and how the work assigned is carried out by the
individuals Kokoth is to obtain license, permit and supporting services for the business to run
smoothly through Migori county municipal office of different categories of requirement.

OPERATIONAL PLAN
The production strategy will enable business to maximize profit on the customers need by
bringing what customers need at the right time. The business is planning to use more effective
method to make orders from producing company and same to customers to make order online it

6
will include, purchasing, loading, transporting receiving orders from customers and welcoming
them again.

FINANCIAL PLAN
The business will commence with a capital of ksh 3,500,000.000 out of which 20% will come
from bank loan, 40% from family and friends and 40% from personal savings. The pre-operation
cost will be ksh 932000 working capital will be ksh 1311000 for first year ksh 1679000 for
second year while and ksh 1489000 for third year. The cash flow projection for the whole year
for the next three years and their quarterly projections are well calculated. The expression will
also have the breakeven point of 60% profitability ratio desired financing of ksh 5000 000 and
the proposed capitalization.