BUSINESS PLAN

TITLE: MATEI PLUMBING HARDWARE

PRESENTER: MATEI MWANGANGI.

EMAIL: [email protected].
INSTITUTION: MUKURWEINI TECHNICAL TRAINING
INSTITUTE.
INDEX NO: 2191010095.
PRESENTED TO: KENYA NATIONAL EXAMINATION
COUNCIL IN PARTIAL FULFILMENT FOR THE AWARD OF
CERTIFICATE IN PLUMBING.
SUPERVISOR: MR WACHIRA.
EXAM SERIES: JULY 2024.

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DECLARATION
I declare that this is my own work and that it has not been presented before to any examining
body for the purpose of examination. This work is presented to the Kenya National Examination
Council as partial requirement for the award of certificate in plumbing.
NAME: MATEI MWANGANGI.
SIGNATURE: ………………....
DATE: …………………………

SUPERVISOR

NAME: MR WACHIRA
SIGNATURE..............
DATE.................

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ACKNOWLEDGEMENT
I thank the Almighty God for being my guidance in my life. I would like to sincerely say thanks
to my father MR. MWANGANGI for his financial and moral support all through my studies and
helping me to come out with such a good project.
My special recognition also goes to my supervisor Mr. Wachira for the sacrifices he made
through advice, correction and guidance for the success of this business plan.

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DEDICATION
I dedicate this project to my family members for making my education a successful up to this
certificate level. Thanks to other sponsors who were tirelessly helping me towards my success. I
also dedicate to my fellow students who were classmates for the support they have to me while
writing this project to make it a success.
I wish them all the best.

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EXECUTIVE SUMMARY
1.0:BUSINESS DESCRIPTION
The business name is MATEI PLUMBING HARDWARE. It is located at ENDAU KITUI
just a kilometer away from KITUI town.
The business will offer products like pipe fittings, cement, window panes etc. and it will be
offering free delivery to our wholesalers and other customers.

2.0:marketing plan
The business will be advertising the products through social media, broadcast. The service and
products will be sold through retail and individual customers

3.0: Organization management plan

The business consists of only the cashier and another two workers. The business has employed
all qualified personnel. The performance is done and based one education level and the
experience.

4.0:operation and production

The business will be importing its goods and products from the very best manufacturers
companies and marketing the social media. The business will also sell the products at a cheap
price to attract more and more customers.

5.0:Financial plan
It is the management of finances available for the proposed cost to be incurred, working capital,
profit and loss account, balance sheet, and cost of sales.

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Table of Contents
BUSINESSPLAN............................................................................................................................i
DECLARATION...........................................................................................................................ii
DEDICATION..............................................................................................................................iii
ACKNOWLEDGEMENT...........................................................................................................iv
EXECUTIVE SUMMARY...........................................................................................................v
1.0:BUSINESS DESCRIPTION...............................................................................................v
2.0:marketing plan.....................................................................................................................v
3.0:Organisation management plan.........................................................................................v
4.0:operation and production....................................................................................................v
5.0:Financial plan.......................................................................................................................v
CHAPTER ONE............................................................................................................................1
1.0:Business description.............................................................................................................1
1.1:Business name......................................................................................................................1
1.2:Business location address....................................................................................................1
1.3: Form of ownership..............................................................................................................2
1.4:Type of business...................................................................................................................2
1.5:Products and services..........................................................................................................2
1.6:justification of opportunity.................................................................................................2
1.7:Industry................................................................................................................................3
1.8:BUSINESS GOALS AND OBJECTIVES.........................................................................3
1.8.1: Short term goals...........................................................................................................3
1.8.2: Long term goals............................................................................................................3
1.8.3:Entry growth strategy......................................................................................................3
CHAPTER TWO...........................................................................................................................4
2.0:MARKETING PLAN..........................................................................................................4
2.1:Customer..............................................................................................................................4
2.2:Market share........................................................................................................................4
2.3:competition...........................................................................................................................4

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 2.4:Methods of promotion and advertising..............................................................................6
2.5:Pricing policy........................................................................................................................6
2.6:SALES TACTICS / STRATEGIES IN SALES MANAGEMENT.................................6
2.7:DISTRIBUTION POLICY.................................................................................................6
CHAPTER THREE.......................................................................................................................6
3.0:ORGANIZATION AND MANAGEMENT PLAN..........................................................6
3.1:ORGANIZATION STRUCTURE.....................................................................................6
3.1.2:OTHER KEY PERSONNE..........................................................................................7
3.2:Recruitment, training and promotion................................................................................8
3.3:Remuneration and incentives.............................................................................................8
CHAPTER FOUR.........................................................................................................................9
4.0:OPERATIONAL AND PRODUCTION PLAN................................................................9
4.1:Production facilities capacity..............................................................................................9
4.2:Premislayout.........................................................................................................................9
4.3:production strategy..............................................................................................................9
4.3.1: Monthly production expenses...................................................................................10
4.4:PRODUCTION PROCESS...............................................................................................10
4.5:Regulations affecting production/operations..................................................................10
4.6:Work schedule....................................................................................................................10
4.7:Licenseand permits............................................................................................................11
CHAPTERFIVE..........................................................................................................................11
5.0:FINANCIAL PLAN...........................................................................................................11
5.1:PRE–OPERATIONAL COST..........................................................................................11
5.2:WORKING CAPITAL......................................................................................................11
5.3:PROFORMA INCOME STATEMENTS........................................................................12
5.4:BALANCE SHEET AS AT 31ST 2024 .............................................................................15
5.5:CALCULATION OF BREAK–EVENPOINT................................................................15
5.6:PROPOSED CAPITALIZATION...................................................................................16
REFERENCE...........................................................................................................................17

CHAPTER ONE

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1.0:Business description
The business will be a hardware. I will be selling building material such as building cement,
tiles, pipefittings, metal sheets. I decided to come up with this business according to my course.
The business will be offering different kinds of good and services. I will be providing free
delivery to my customers who buy bulky goods and people with disabilities. I will be selling my
products at a good and fair price.

1.1:Business name
The name of the business will be MATEI PLUMBING HARDWARE. I decided to use this name
because the main component in the job is about building materials which are also sold in
hardware’s.
My products will be of best quality available in the market and the products will be sold at an
affordable price.

1.2:Business location address

The business will be located in ENDAU Market KITUI COUNTY opposite capital supermarket.
Just a kilometer away from the superhighway
: for more information one can contact using the email address, website and contact.
Email: [email protected]
Contact: 0716289154
1.3: Form of ownership
MATEI PLUMBING HARDWARE will be sole proprietorship form of business. It will be
operated under one person where the owner will be a manager and director of the business.
I choose this type of the business ownership because I have the skills and am capable of running
the business efficiently and lead it to growth.
ADVANTAGES OF SOLE PROPRIETORSHIP
i. I will enjoy whole profit alone.
ii. My decision will be fast as may not consult anyone.
iii. The quality of services and products offered will depend on me.

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 iv. All the property in the business will belong to me.
v.
vi.
vii. DISADVANTAGES OF SOLE PROPRIETORSHIP
i. Loss will be incurred alone.
ii. Lack of continuity if one is unable to make profit.

1.4:Type of business
MATEI PLUMBING HARDWARE will be a startup business. It will be a wholesale and retail
business because it will be able to sell and provide quality products to the retail customers and
individuals.
1.5:Products and services
MATEI PLUMBING HARDWARE will basically be offering services and products to its
customers.
The services will be:
 Advising customers on the best products.
 Delivery the products all over the country at a fair price.
 Selling of quality building materials.
1.6:justification of opportunity
Through their search and survey that has been done, the business is justified that it can dowel and
better. Such research includes:
Few hard ware shops around.
Increase population.
Increased rate of construction.
It will provide employment opportunities.

1.7:Industry
The business fall under small scale service provision. Through provision of fair services at a
considerable cost, the business is expected to thrive at a high rate.

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1.8:BUSINESS GOALS AND OBJECTIVES
1.8.1: Short term goals
The business in tends to meet clients need so Provide quality services, to create employment and
maximize profit in all ways possible.
1.8.2: Long term goals
To diversify the business and open more branches.
To provide fair and affordable prices to customers.

1.8.3:Entry growth strategy

The business will conduct it promotes motion through the social media, conducting exhibitions
with in the town will make customers aware of services offered.
The business is expected to gain more profit and thrive at a high rate.
The plant attracts more customers is to give them quality product.

CHAPTER TWO
2.0:MARKETING PLAN
2.1:Customer
The business will look for marketing private and government institution such as schools,
hospitals and county government.

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The enterprise aim is to acquire more customers within six months of its operation.
2.2:Market share
The total population in the market is approximately 410,000 people. My business is targeting to
serve25% of the total population.
This amount to 25/100x410000=102,500

Sales

10%
1st Qtr
2nd Qtr
33%
3rd Qtr
24% 4th Qtr

19% 14%

2.3:competition
Through potential customers, I will identify my competitor by names, location and analyze the
most follows:
Mangos Hardware
P.O BOX 55645
KITUI

Star gate Hardware

P.O BOX656
KITUI

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 MSAFIRI Hardware
P.O BOX 345
KITUI

Competitor analysis
COMPETITORS SHARE LOCATION STRENGTHOFEAC WEAKNESSOF STRATEGIESTO
BYNAME HCOMPETITOR EACHCOMPETI COMPETE
TOR

MANGOS 30 Tsei kuru 1. Adequate space 1. Have high

2. Best 1. Insecurity ability to take
PO.BOX 367
management. 2. Fear total risk.
KITUI
3. Modern risk 2. Ensure good
resources. security

STARGATE 20 Ikutha town 1. High technology 1. Lack of 1. High

2. Efficient used modern motivation for
PO.BOX 65
time. resources. high
KITUI
3. Government 2. Poor public performance.
subsidy. relation. 2. Appropriate
3. Lack of Technology.
motivation.

MAFIRI 10 Mwingi 1. Good means of 1. Cultural 1. Good public

communication. belief. relation.
PO.BOX 416
2. Good servicing. 2. Poor 2. Borrow loan
KITUI
activities in for good start.
the area.

GODGIVES 15 Kitui 1. Located near a 1. Wastage of 1. Good

shopping center time. management
PO.BOX 316
and an institute. 2. Low systems.
KITUI
2. Low competition. services. 2. Provide good
services

NEW 25 Mwingi 1. Modern resource Lack of Motivation to the

2. High technology
GENERATION motivation. workers.
PO.BOX 216

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KITUI

2.4:Methods of promotion and advertising

To advertise my business, I will post the signboard on social media with all details and
magazines and gives them to the customers.

2.5:Pricing policy
For smooth running of business I will receive suitable pricing techniques which will enable
offering of appropriate technology to favor needs of
Pricing technique;
Mark up percentage=gross profit/cashonsaleX100%
Gross profit=fixed cost–expenses
87500–60000=27500
27500/87500X100=31.43%

Margin=gross profit/sales
27500/60000x100=45.8%
Net profit=45.8–31.43=14.37%
45.8x27500/31.43=Ksh40073.178

2.6:SALES TACTICS / STRATEGIES IN SALES MANAGEMENT

By use of ICT system in my business, I will be offering discount to regular customers, after sale
services and build a seat outside my workplace for customers to wait as they wait to be saved.

2.7:DISTRIBUTION POLICY
Price distribution will depend on the quality of services and quantity of the products.

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CHAPTER THREE

3.0:ORGANIZATION AND MANAGEMENT PLAN

3.1:ORGANIZATION STRUCTURE
ORGANIZATION CHART
The business final decision will be done by the owner.
As the manager of the business, he will look for way to achieve various goals and objectives of
the business. The owner
will also come up with policies sand strategies on how to achieve short term goal of the business
which the main aim is to make expansion of the premises and also gain profit.
My duties as the owner and manager.
i. To keep safe of documents.
ii. To the final decisions.
iii. To motivate the operators.
3.1. OTHER KEY PERSONNEL
i. Cleaners
ii. Operators

MANAGER

WATCHMAN CASHIER CLEANER

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In order to realize common goals, we will work as a team:
PERSONN QUALIFICATI DUTIESANDRESPONSIBIL SALARIESANDOTHERBEN
EL ON ITIES EFITS
Operators Able to provide Ensure challenge are solved 15,000
solution and good work progress
arrange duties
Cleaners Able to retain Ensure that offices are 10,000
high level of habitable
cleaners

3.2:Recruitment, training and promotion

Whenever vacancies arise the business invite applicants to apply according to the area of
specification.
The qualifiers are then called to resume the offices and assigned duties and responsibilities until
when they vacate the position.
Training will be done to all employees as too attain quality skills to ensure quality services.
3.3:Remuneration and incentives
Remuneration will be based on monthly bases and it will be flexible for considerable factors.
Incentives will depend on the work done assign of motivating the operatives.
PAYMENTS
TITLE SALARY ALLOWANCES TOTAL
Manager 10000 1000 11000
Cashier 8500 1000 9500
Watchman 5000 500 5500
Cleaner 4000 500 4500
Driver 7000 1000 8000
TOTAL 38500

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CHAPTER FOUR
4.0:OPERATIONAL AND PRODUCTION PLAN
4.1:Production facilities capacity
For a business to be successful, it must attain its objectives. It should also have frame work and
well achievable plan. The business will require to have frame work and achievable plans. The
business will require to have respective quantities that will enable the business to run smoothly
and meet its goals and objectives.
Computers will be essential to the business to enable the business to record data and reduce work
load. For example sales, prints and salaries. Telephone handset will assist in communication with
the supplier sand customers.
The table below shows the equipment number, size and cost of equipment’s
ITEMS NO. SOURCES COST TOTAL
Pipe range 2 OMAX autos 1200 2400
pares
Wheel barrow 5 OREN industry 12500 62500
Spades 7 Green land 500 3500
Cements 30 SIMBA Cement 550 16500
PPR Pipes 50 100 5000
GI Pipes 30 200 6000
Angle lines 40 250 10000

4.2:Premis layout
The business premises will be bought at a higher purchase, a layout will be as follows:

DISPLAY STORE MANAGER TOILETS

CHAMBER OFFICE

ENTRANCE AND EXIT

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4.3:production strategy
This MATEI PLUMBING HARDWARE will employ qualified professional stuff the affair of
the business.
The business will import goods from the manufacture best wholesale price available and stock
the minimum display at retail prices.
Payments for the products will be done in accounts office once the client is satisfied of the
products.

4.3.1: Monthly production expenses

HOT POINT will be incurring monthly cost as follows:
EXPENSES AMOUNTPERMONTH
Electricity 10000
Rent 30000
Salaries &wages 190000
Water bills 700
Repair and 7000
maintenance
Advertisements 10000
TOTAL 247700

4.4:PRODUCTION PROCESS
MATEI PLUMBING HARDWARE will ensure professional is observed in the hardware. Once
a client comes the sales personnel will receive him/her and direct him/her. And also, weal so use
the other process from produce to customer

Manufacturer Wholesaler Retailer Consumer

4.5:Regulations affecting production/operations

i. Safety controls
ii. Health measures lead by human resource officer to safe guard life.

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 iii. Security
iv. Business ethics

4.6:Work schedule
According to the timetable, normal working hours shall be from8.00am–5.0pm forming the first
shift. The second shift will be doing from 5.00pm–9.00pm.
Hereby is the work schedule summary:

SESSIONS TIME(AM–PM) SESSIONS TIME(AM–PM)

Normal day hours 8.00am–5.00pm Weekend hours 10.00am–7.00pm
Overtime 5.00pm–9.00pm No over time NULL

4.7:License and permits

A business should have a certificate of regulation and trade license. Others include county
council licenses and local government license.
Taxes is compulsory to the business to pay name added tax, failure to submit and adhere to all
that can lead to unnecessary losses.

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 CHAPTER FIVE
5.0:FINANCIAL PLAN
This is a course of action that entrepreneur use to achieve business objectives. It represents the
entrepreneurs’ best estimate of operation quantities terms. It also allows /shows the number of
figures speculated for use within a specified period of time.

5.1:PRE–OPERATIONAL COST
The share the cost that a business is expected to incur when the business starts its operations.
The table below shows expected incurred by the proposed business before it becomes
operational.

ITEMS NUMBER
Opening stock 70000
Electricity installation 7000
Water installation 1200
Pre-paid rent 15000
Advertisements 5000
License 10000
Permits 1000
Insurance 4000
Wages and salaries 50000
Transport 2000
TOTAL 165200

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5.2:WORKING CAPITAL
It is the difference between current assets and current liabilities. It facilitates smooth running on
the day-to-day basis of MATEI PLUMBING HARDWARE.
ITEM AMOUNT
Cash in hand 3000
Cash at bank 20000
Debtor 4000
Stock 15000
TOTALASSETS 42000

ITEM AMOUNT
Loan 14200
Overdraft 3000
Creditor 13000
TOTALLIABILITIES 30200

Total working capital=current asset–current liabilities

W.C.=42000–30200
Working capital=11800
Total working capital=Ksh.11800

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5.3:PROFORMA INCOME STATEMENTS
MATEI PLUMBING hardware proforma statement for the year ending31stDec2024
PROFOMA INCOME STATEMENT FOR YEAR ENDING 31STDec 2024
SALES 18600
Loss cost of sales
Opening stock 2360
Add purchase 107440
Less closing stock (1600)
Cost of sales 120360
Gross profit 76640
Less expenses
Salaries and wages 37620
Rent 4050
Insurance 780
Office expenses 6540
Lighting and water 2340
General expenses 3320
Net income 14000
Less taxation (30%) 3180
Net after tax 7670

CASH IN FLOW

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Monthly JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL
description
Cash in sales 25000 21000 30000 25000 21800 21700 21500 21800 22000 216000 140000 190000 2374000
0 0 0 0 0 0 0 0
Creditors 800 700 400 600 400 2900
TOTALCASHI 25000 21000 30000 23000 22000 23000 22000 22100 22600 198000 205000 221000 2731000
NFLOW 0 0 0 0 0 0 0 0 0

CASH OUT FLOW

MONTH JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC TOTA
L
PURCHASE 13000 12500 13000 13500 13500 14000 13000 13500 14000 14500 15000 17000 165500
0 0 0 0 0 0 0 0 0 0 0 0 0
ELECTRICITY 8000 7000 450 11000 13000 8000 7000 80000 7000 6000 6000 5000 302450
0 0
WATER 300 300 300 500 500 300 400 400 300 300 300 300 5000
TRANSPORT 1000 400 500 500 600 300 500 600 400 400 600 600 6400
MAINTENANCE 300 700 5000 6000
POSTAL 300 200 100 150 150 200 100 2000 100 200 100 200 6500
ADVERTISEME 2000 2000 100 100 200 4400
NT
SALARIES 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 360000

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TRAINING 500 500 500 1500
LOANPAYMEN 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 42000
T
TOTALCASH 16580 16800 17200 18550 18000 17350 18000 17300 18300 19335 21870 21870 173410
0 0 0 0 0 0 0 0 0 0
OUTFLOW
NETCASHFLO 34200 36900 37000 34500 39000 44600 30150 44600 44300 26950 2600 26000 400800
W

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5.4:BALANCE SHEET AS AT 31STDEC2024

PLUMBING balance sheet as 31stDec2024

ITEM KSH
Non-current assets
Furniture 3500
Current assets
Debtors 38960
Bank 4820
TOTAL 43780
Current Liabilities
Creditors 29970
Net assets 33470
Capital 45470
Less drawings 12000
Total liabilities and 33470
capital

5.5:CALCULATION OF BREAK–EVENPOINT
Table of variable cost
Variable cost Amount
Salaries 50000
Licenses 10000
Insurance 200000
Rent 100000
Desperation 60000
TOTAL 960000

Contribution margin = sales–variable cost

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Contribution margin =2190000–900700
Contribution margin =Ksh.1289300
%=Contributionx100/sales
1289300x100/2190000
=58.87%

5.6:PROPOSED CAPITALIZATION
CONTRIBUTION AMOUNT
Owners’ equity 300,000
Relatives/friends 400,000
TOTAL 700,000
REFERENCE
The business plan reference has been got from classmates; friends, for reference and guidance.

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