SPINNWILL MASONRY PRODUCTION

NAME: OCHIENG SILA OUMA

INDEX NO: 7031010206

COURSE NAME: DIPLOMA IN BUILDING TECHNOLOGY

COURSE CODE: 2705

PAPER CODE: 305

TITLE: BUSINESS PLAN

SUPERVISOR: MADAM SANDRA

CENTRE NAME: THE KISII NATIONAL POLYTECHNIC

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL

FOR THE FULFILMENT OF THE AWARD OF DIPLOMA IN

BUILDING TECHNOLOGY

SERIES: JULY 2025

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DECLARATION

I declare that this business plan has never been presented anywhere or to the National

Examination Council for exam purposes.

Student Name: Ochieng Sila Ouma

Signature......................Date...............................

Declaration by the supervisor. I declare that this is his original work and has never been

presented to any institution.

Supervisors Name: Madam Sandra

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

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

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DEDICATION

I dedicate this business plan to my dad my whole family and friends for their support, tolerance

and prayers in every steps of my education journey

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ACKNOWLEDGEMENT

I acknowledge the effort of my, parents and supervisor who assisted me both financially and

academically to ensure the success of this business plan.

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EXECUTIVE SUMMARY

The effort of my supervisor, parents, and friends are acknowledged and the piece to be

dedicated to friends and hence declaration that it has never been presented anywhere or to the

National extermination council for exam purposes.

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Table of Contents

DECLARATION.............................................................................................................................2

DEDICATION.................................................................................................................................3

ACKNOWLEDGEMENT...............................................................................................................4

EXECUTIVE SUMMARY.............................................................................................................5

CHAPTER ONE..............................................................................................................................7

BUSINESS NAME..........................................................................................................................7

BUSINESS LOCATION AND ADDRESS....................................................................................7

CHAPTER TWO.............................................................................................................................9

2.1 CUSTOMERS............................................................................................................................9

2.2 MARKERT SHARE..................................................................................................................9

2.3 COMPETITION.........................................................................................................................9

CHAPTER THREE.......................................................................................................................11

3.1 ORGANIZATIONAL STRUCTURE......................................................................................11

3.2 MANAGERS AND QUALIFICATIONS................................................................................11

CHAPTER FOUR..........................................................................................................................14

4.0 OPERATIONAL PLAN...........................................................................................................14

4.1 PRODUCT OR SERVICE DESIGN AND DEVELOPMENT................................................14

4.2 PRODUCTION OF OPERATIONAL FACILITIES AND CAPACITY................................14

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CHAPTER FIVE...........................................................................................................................16

5.0 FINANCIAL PLANNING.......................................................................................................16

5.1 PRE- OPERATIONTIONAL COST........................................................................................16

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 CHAPTER ONE

BUSINESS DESCRIPTION

1.0 BUSINESS NAME

The proposed business name will be spin will masonry products . The business will be named

after the already exited kind of business in the community and collapsed 8 years ago. They will

be located in Mbita town. The business will employee those who have experience in the field of

building as to acquire relevant experience. The qualification will be one must attain a certificate

in Building entrepreneurship and diploma in Building. The proposed business is likely to begin

5th. 01. 2026.

1.2 BUSINESS LOCATION AND ADDRESS

The business will be located in:

MBITA TOWN

P.O BOX, 4030, MBITA

The building will be located opposite public works office on left as one enter town. I choose the

above location because of the high demand in Mbita as the existing business is 7km away from

Mbita, thus causing high transportation to customers. The location is easily accessed and mostly

it is easy for identification.

1.3 FORMS AND TYPE OF OWNERSHIP

The business will be sole proprietorship. Contribution will be owner’s contribution. The

business will operate on both production and services. The main activity of the business will be

to produce Masonry Products e.g. titles, concrete, blocks, vents, spindles etc. the business will

cover about 60-70

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1.4 PRODUCTS AND SERVICES

The business will produce advanced products such as strong and lasting bricks, dust, chips etc. in

order to maintain the existing income of company. The significant that will make this company

unique from existing one is the kind of management. It will after the discount, motivation will be

employed and over time will be paid differently from normal working hours and promotion of

working ranks will be offered within the members of the company.

1.5 JUSTIFICATION OF OPPORTUNITY

What motivates me to start this kind of business is that it is easily marketable and profitable. The

region for the location of this business will be high favored by environmental factors e.g. the

location is hot and hence will favors the drying of bricks hence gaining strength for better works.

The business will promote employment to the community.

1.6 THE INDUSRTRY

The business will tail under building industry. The business will cover an area of 990m2. It will

be highly identified worldwide because of various factors e.g. high-quality products. The

products to be offered will be a high quality, discount will be offered to the customers depending

on the product purchased. The business will purchase operating Machines e.g. Backactor,

dragline that will help in excavations with the help of these plants, quality products will increase

and time wastage will be minimized. And with quality products, customers will be attracted

more and more.

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1.7 GOAL OF BUSINESS

The business will aim to provide customers in the building sector with setter quality products.

The major objective will be to provide quality products than the exixting business. The goals

will be archived by employing qualified personel purchasing plants to minimize time wastage

and also provide discount to customers.

1.8 ENTRY AND GROWTH STRATEGY.

There will be discount offered to every customer depending on the qualities of purchase. A well-

designed sign board will be erected in strategic position for the advertisement of the business.

There will be a designed and well-arranged chart to give directives to the customers hence

improving servicing quality. The business will employ well trained and qualified trainees with

various skills in different field to ensure positive influence between customers and business thus

emulating the business growth in rapidly manner.

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 CHAPTER TWO

MARKETING PLAN

2.1 CUSTOMERS

The business will specifically target contractors since the group which hold building project. The

level of income will is approximately 2.5million. and the occupation will be engineering. It will

welcome all religion. Purchasing will be according to the customers demand. The education level

will not be considered in customers.

2.2 MARKERT SHARE

The business will give 350,000 people services and over seventy firms among 90 existing

firms.70/100 *25000= 24500

2.3 COMPETITION

Nyasweta building and To pare building company are among the operating business of similar

kind. The existing business ate located at Sindo area.

Name of competitor Location (Distance apart from proposed

business

Nyasweta building Topaco building investing 7km 8.5km

The location of the existing business will help reduce competition to my business since they will

not be closed to my business. It will be disadvantage. To my business as their won’t be no other

business to sorrow ideas from which may lead to some failures.

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 Proposed business Competitor (1) Competitor (2)

Sales volume 300,000 130,000 75,000

Number of 20 11 5

employees

Number of varieties 200 150 75

Assets 25 molding machines 15 molding machines 3 molding machines

2.4 METHODS OF PROMOTION AND ADVERTISING

I will make offer free delivery to customers depending on quantity of goods purchased and offer

5% discount on transportation. Being that it will be international business, I will make use of

social media, posters, newspapers and radios. The advertisement will be every three weeks.

2.5 PRICING STRATEGY

The proposed business will be taxing the goods to customers in order to recover the cost

of production pricing strategy will be looked upon the material durability and strength and

its characteristics. The business will offer transportation discount

2.6 SALES TACTICS

I will make use of email marketing method and creating of what sup and social media to

help reach my customers from all corners. This won’t allow me to create marketing

campaign and stay on top in the business area.

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2.7 DESTRIBUTION STRATEGY

Having decoded to distributer through road mean, I will look for means of transportation to find

out if this can provide the services in good time without any dalliance . The business will tend

to purchase transportation plants and employee operators to the plants.

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 CHAPTER THREE

ORGANIZATIONAL PLAN

3.1 ORGANIZATIONAL STRUCTURE

3.2 MANAGERS AND QUALIFICATIONS

I will be the manager (Paul Victor) the manager will be responsible for the planning, organizing,

coordinating the business. I will draw 340000 per month. The management team will also

include: Chiefs, Accountants, and work manager. Their rolls will be:

a) Finance account will help balance the trade book balance of the business.

b) Chiefs account will help enter all transaction cost from abroad

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3.3 PERSONAL NUMBER AND DUTIES

Job title Qualifications Duties Proposed salaries

1) Work Must have good Will make sure al 40,000

manager communication skills. workers are directed

I.e. must be able to according to the

communicate plans of the

effectively. business.

Must have skills in

the field of

construction and must

attain either craft

certificate in building

od Diploma in

Building.

Must be 25-40 of age.

2) Chefs Must have done Will prepare the log 45,000

Accounts accounting and attain books accounts of the

pass in his or her business.

certificate.

Must have attain c+

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 in both languages

and at least c in

math’s Must be of 25

years and above.

3) Foreman Must be able to do Will make sure the 35,000

what he or she products e.g. bricks

instructs others to do. are done into

Must have attain required standard.

certificate in craft Will make sure all

Building Technology the employees are

assigned duties daily.

3.4 RECRUITMENT, TRAINING AND PROMOTION

All the vacancies in the business will be declared through Social media/ Posters. The applicant

who will meet the qualifications will be shortlisted and will be called for an interview. The

training will be offered to new employees a week after reporting to job. While the senior

employees, seminars will be conducted within the compound promotion will done according to

work experience in the business and also transperenc3e will be key.

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3.5 REMUNERATION AND INCENTIVE

Job category Number of staffs Monthly pay Other benefits Total kshs.

rates NHIFS

Personal 1 50,000 1000 50,000

manager 1 40,000 1000 40,000

Works manager 1 45,000 1000 45,000

Chef Accounts 1 38,000 1000 38,000

Plant superior 2 38,000 1000 38,000

Foreman 15 30,000 1000 30,000

Skilled 30 15,000 1000 15,000

personnel 4 20,000 1000 20,000

Unskilled

Security

Overtime work will be paid in different salaries/promotion will be done within the business and

first priority will be done given to the employees.

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3.6 LICENCES PERMITS AND BY LAW

The business permit will get from different county government authorities i.e. The county

Municipal Council, The National Environmental Authority for effective running of the business

at a cost of 1500.

3.7 SUPPORT SERVICES

The business will require for support services from the county government and from national

government. Security support services will be required from the county government, water,

power and sewage. Banking as a support service will be required from the national government.

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 CHAPTER FOUR

4.0 OPERATIONAL PLAN

4.1 PRODUCT OR SERVICE DESIGN AND DEVELOPMENT

The design of my products will be as described below

Store
Cement
Keeper
store
officer

Concrete
Spindles
block and
brick And
keeping
Vents

4.2 PRODUCTION OF OPERATIONAL FACILITIES AND CAPACITY

Machinery and equipment required will be as follows.

Item Quantity Cost per item Total cost of item

Brick cutter 7 6000 42000

Concrete machine cut 5 15000 75000

Bricks shapes 4 7000 28000

Mixer 2 30,000 60000

Molding 12 2500 30000

Computers
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 4 25000 100000

I will purchase my own machinery and equipment. The business will employ technicians with

experience to help in repair and maintenance of machinery and equipment’s so as to reduce cost

of hiring.

The importation of spares will be done one week earlier before machinery and equipment are

given service. Other asserts I will require will be transporting vehicles, backactors,

wheelbarrows, spades and Lorries.

PRODUCTION OR SERVICE STRATEGY

Type of Frequency Source Quality Cost per unit Total cost

material required kshs

Cement Every two week Ray company 400 680 272000

Dust After one week Company 7 tones 1200 per tone 8400

Record books After every year Rail shop 7 120 840

Sand After one week Surplice 5 tones 1400 7000

Water pipes Company 8 2000 1600

TOTAL 289840

4.3 PRODUCTION PROCESS;

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Production process for bricks:

i. Soil will be excavated using excavator or man power.

ii. Soil will be mixed using clean water

iii. Using molds, they will be placed into different molds and compacted using

wooden stampers

iv. They will be arranged in order ready for burning to acquire more strength. By will

burn for two good weeks.

v. They will be removed and then taken into the free open area protected from rain.

The external factor will be production of new and more strong bricks from outside countries like

china. To minimize the external factors, I will have a bench mark to the China factories and

produce the same products with same qualities. The internal factors may be such as: insecurity to

deal with insecurity, I will work hand in hand with the county government to help secure the

business.

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4.4 REGULATION AFFECTING OPERATIONS

The national management authority may affect as the business as of well be located just within

the town.

License/permit Course Cost

NEMA LICENSE County government 2000

KEBS County government 2500

The local taxes e.g. security charges will also affect the business.

The cost per material from the company may also affect the business as of May be higher.

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 CHAPTER FIVE

FINANCIAL PLANNING

5.0 PRE- OPERATIONTIONAL COST

The cost that will be incurred before the start of operation will be as follows.

ITEMS AMOUNT KSHS;

Licenses 4500

Permutes 4500

Deposit for water connection 3500

Raw materials 17500

Equipment’s 10500

Machineries 15500

Insurance 10000

Advertisements 2500

Telephone supply 500

Total 69000

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5.1 WORKING CAPITAL

ITEMS YEAR 1 KSHS YEAR 2 KSHS YEAR 3 KSHS

Stock of raw materials 17500 15500 10500

Stock in progress 15500 10500 9500

Stock of finished goods 20000 15500 10500

Cash in hand 69000 75000 80000

Cash at banks 70000 75000 80000

Debtors 15000 15000 15000

Total current assets 207000 206000 205500

Loss current liabilities

Creditors 140000 145000 130000

Estimated working capital 870000 91000 75500

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 5.2 PREPARATION OF CASH FLOW PROJECTON

JAN FEB MARC APR MAY JUNE JULY AUG SEP OCT NOV DEC

CASH

INFLOWS

Opening cash 30,000 50,000 55,000 60,000 65,000 80,000 100,00 95,000 105,00 95,000 65,000 780,000

0 0

Cash sales 45,000 45,500 50,000 45,000 45,000 60,000 300,00 20,000 350,00 250,00 200,00 200,000

0 0 0 0

Receipt from 20,000 10,500 11,000 12,000 15,000 15,000 12,000 15,000 15,500 14,000 14,000 15,000

debtors

Loans received 450,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

Total cash 545,000 136,00 146,00 147,00 155,00 185,00 442,00 160,00 500,50 389,00 309,00 1,025,00

inflows 0 0 0 0 0 0 0 0 0 0 0

Cash

outflow(paymen

ts)

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Payment to 450,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

creditors

Purchases(cash) 450,000 120,00 40,000 100,00 55,000 250,00 200,00 200,00 200,00 250,00 300,00 300,000

0 0 0 0 0 0 0 0

Wages and 5,000 2,000 4,000 5,000 4,000 3,500 5,000 4000 5,000 2,000 4,000 10,000

salaries

Transport 10,000 10,000 15,000 15,500 7,800 8,000 7,000 8,000 15,000 15,000 12,000 15,000

Electricity 4000 5,000 7000 8,000 3,000 2,000 1,500 2,000 2,000 5000 1000 2000

Loans payments 250,000 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,000

0 0 0 0 0 0 0 0 0 0

Total cash 1,169,00 417,00 346,00 408,50 349,80 543,50 543,00 494,00 502,00 552,00 597,00 607,000

outflows 0 0 0 0 0 0 0 0 0 0 0

Net cash brought 200,000 25,000 30,000 300,00 250,00 300,00 250,00 250,00 300,00 300,00 300,00 300,000

forward 0 0 0 0 0 0 0 0

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5.3 PREPARATION OF PROFORMA INCOME STATEMENT AND

BALANCESHEET

5.3.1 PROJECT INCOME STATEMENT

SPINNWILL MASONRY PRODUCTION

TRADING PROFIT AND LOSS STATEMENT FOR THE YEAR ENDING 2026 DEC

YEAR ONE

SALES 607000

Less cost of goods soled 300000

307000
Gross profit

Less expenses
400000
Selling and distribution
350000
General administration
350000
Salaries and wages
50000
Telephone
175000
Water and electricity
60000
Stationary
150000
Interest on loan
150000
Maintenance and repair
65000
Trading profit and loss
424.120
Less 10%taxation 2963574.88

Net worth

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 5.3.2 PRO- FORMA BALANCF SHEET

SPENNWILL MASONRY PRODUCTS LIMITED

PRO- FORMA BALANCE SHEET AS AT 31ST DEC 2026

ASSETS AMOUNT KSHS LIABILITIES AMOUNT KSHS

FIXED ASSETS CAPITAL

700,000 140000
Land LIABILITIES
80000
Building 2500000 Creditors
600000
Furniture 230000 Bank loan

Machinery 15500 Capital 820000

3445500
2768000
Current assets
350000
Raw material 17500 Current liabilities

Work in progress 25000 Creditor

Finished goods 200000 Tax

Debtors 150000 311800

Cash in bank 70000

3838000
Cash at hand 30000

492500

CAPITAL 3938000

EMPLOYEER

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5.4 BREAK-EVEN POINT

OPERATION EXPENSES

FIXED COST COST

Salaries 840,000

Rent 300,000

Advertising 34,000

Business registration 4,500

Total 1178,500

VARIABLE COST AMOUNT KSHS

Purchases 45,000

Creditor 15000

Wages 5000

Licenses 2000

Water 2500

Telephone 15000

Electricity 500

Total 85000

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 5.4.1 CONTRIBUTION MARGIN

Margin = sales –total variable cost

7000—8500
=kshs 2000

5.4.2 CONTRIBUTION MARGIN

Contribution margin * 100

sales
3000/3700*100
=2.29%

5.4.3 DETERMINE THE TOTAL FIXED COST

Total fixed cost= 87000

5.4.4 Calculate the breakeven level of sales in shillings

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 Fixed cost
Contribution margin in percentage
87000/2.29 = kshs 37991.26638

5.5 BREAK EVENPOINT

= fixed cost
Contribution margin per unit
87000/2000 = 43.5

5.5.6 Breakeven point in sales

Fixed cost*sales price per unit

Contribution margin per unit

87000*43.5
2000
Kshs 1892.25

5.6 CALCULATION OF PROFITABILITY RATIOS

5.6.1 GROSS PROFIT MARGIN

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 Gross profit *100
Sales
=307000*100
87000 =352.87

5.6.2 RETURN ON EQUITY

Net profit after taxes *100

Sales
2963574.88/87000 = 3406.407908

5.6.3 NET PROFIT MARGIN

Net profit after tax/sales *100

296374.88*100
870000 =3406.407908

5.6.4 RETURN OF ASSETS

Net profit after tax/total assets

2963574.88/3938000
=75.2558

5.6.5 CURRENT RATIO

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 Current assets in kshs
Current liabilities
492500/3118000 =0.15

5.7 DESIRED FINANCING

Item description Amount

Pre-operation 500000

Working capital 87000

Non current 42500

assets

Total desired financing 1079500

5.8 PROPOSED CAPITALIZATION

Item description Amount

Owners description 25000

Bank rets 300000

Loans from friends/relatives 150000

Total 475000

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