BUSINESS PLAN

TITLE : BRIGHTSTAR HOTEL

PRESENTER : OTIENO CHRISTINE ATIENO

INDEX NUMBER : 6161041615

CENTRE CODE : 616104

SUPERVISOR : GETRYNE AYOMA

EXAM SERIES : NOVEMBER-DECEMBER 2021

COURSE : CERTIFICATE IN CATERING AND

ACCOMODATION

ADMISSION : 17380

CENTRE : THE SIGALAGALA NATIONAL POLYTECHNIC

PURPOSE : THIS BUSINESS PLAN IS PRESENTED TO THE

KENYA NATIONAL EXAMINATION COUNCIL FOR THE PARTIAL
FULFILMENT OF THE AWARD OF CERTIFICATE IN CATERING AND
ACCOMODATION.
Table of Contents
DECLARATION.............................................................................................................................................iv
DEDICATION.................................................................................................................................................v
ACKNOWLEDGEMENT.................................................................................................................................vi
EXECUTIVE SUMMARY...............................................................................................................................vii
CHAPTER ONE..............................................................................................................................................1
1.0 BUSINESS DESCRIPTION.....................................................................................................................1
1.0.1 BUSINESS NAME.........................................................................................................................1
1.0.2 FORM OF OWNERSHIP................................................................................................................1
1.0.3 LOCATION AND ADRESS..............................................................................................................1
1.0.4 TYPE OF BUSINESS......................................................................................................................2
1.0.5 GOALS OF THE BUSINESS............................................................................................................2
1.0.6 PRODUCT AND SERVICES............................................................................................................2
1.0.7 JUSTIFICATION OF THE OPPORTUNITY........................................................................................2
1.0.8 INDUSTRY....................................................................................................................................3
1.0.9 ENTRY AND GROWTH.................................................................................................................3
1.2 MARKETING PLAN..............................................................................................................................3
1.3 OPERATIONAL PLAN..........................................................................................................................4
1.4 FINANCIAL PLAN................................................................................................................................4
CHAPTER TWO.............................................................................................................................................5
2.0 CUSTOMERS.......................................................................................................................................5
2.1 MARKET SHARE..................................................................................................................................5
2.2 COMPETITORS...................................................................................................................................5
2.3 PRICING STRATEGY............................................................................................................................6
2.4 SALES TACTICS...................................................................................................................................6
2.5 METHOD OF PROMOTIONS AND ADVERTISEMENTS.........................................................................6
2.6 DISTRIBUTION STRATEGY..................................................................................................................6
CHAPTER THREE..........................................................................................................................................8
3.0 ORGANISATION AND MANAGEMENT PLAN.......................................................................................8
3.1 ORGANISATION STRUCTURE..............................................................................................................8
3.2 STAFFING AND THEIR QUALIFICATIONS.............................................................................................9
3.3 REMUNERATION SALARIES AND ALLOWANCES...............................................................................10

ii
 3.4 TRAINING AND PROMOTION...........................................................................................................10
3.4.1 TRAINING..................................................................................................................................10
3.4.2 PROMOTION.............................................................................................................................10
3.5 LICENSE BY LAW AND LEGAL REQUIREMENT...................................................................................10
3.6 BUSINESS CONTROL OF ASSETS.......................................................................................................11
CHAPTER FOUR..........................................................................................................................................12
4.0 OPERATIONAL PLAN........................................................................................................................12
4.1 PRODUCTION DEVELOPMENT.........................................................................................................12
4.2 PROMOTION FACILITY AND EQUIPMENTS.......................................................................................12
4.3 PRODUCT STRATEGY........................................................................................................................12
4.4 PRODUCTION PROCESS....................................................................................................................14
4.5 GOVERNMENT REGULATIONS AFFECTING OPERATIONS.................................................................14
CHAPTER FIVE............................................................................................................................................15
5.0 FINANCIAL PLAN..............................................................................................................................15
5.1 PRE-OPERATIONAL COST.................................................................................................................15
5.2 WORKING CAPITAL..........................................................................................................................15
SALES GRAPH.....................................................................................................................................15
5.3 PROJECTED CASHFLOW STATEMENT...............................................................................................17
BREAK EVEN CAPITAL.........................................................................................................................19

iii
DECLARATION.
I Otieno Christine faithfully declare that this business plan is my original work and has never
been submitted to the Kenya National Examination Council (KNEC) or any examining body for
the award of Certificate.

Name : OTIENO CHRISTINE ATIENO

Signature: ……………………………………..

Date: ………………………………………..

Supervisor name: GETRYNE AYOMA

Signature……………………………………………

Date……………………………………………………

iv
DEDICATION.
This Business Plan is dedicated to my beloved uncle Philip Othiambo for his moral and financial
support and the encouragement he gave me to ensure I came up with a successful Business
Plan.

v
ACKNOWLEDGEMENT.
First of all I thank the Almighty God for the gift of life He has granted me. Secondly I thank my
parents for their moral and financial support. I also wish to thank my course mates who
cooperated and interacted with me to ensure i came up with a clear business plan.

vi
EXECUTIVE SUMMARY.
This business will be owned by Otieno Christine with the help of family members and friends
who have got skills in Catering and Accommodation. The name of my business will be Brightstar
Hotel and will mainly deal with food selling and offering social services. Brightstar Hotel will be
located at Sondu – Oyugis road. I intend to commence this business in 2022. I believe it will
have a potential to attract customers countrywide. Those customers will include students,
labourers and organizational clients.

Brightstar Hotel will advertise its products through media and other ways to make it popular.
The customers will be handled with good care.

vii
CHAPTER ONE
1.0 BUSINESS DESCRIPTION.
The owner will be Otieno Christine who was born in Homabay County, Rachuonyo South sub-county. I
went to Siany Primary School from 2005-2013 whereby I completed my primary education and scored
270 marks. After that I joined Kingsway High School and did my K.C.S.E in the year 2018 where i got the
mean grade of D+. Later I joined the Sigalagala National Polytechnic where I am currently pursuing a
Certificate course in Catering and Accommodation. And now I am currently 23 years old. The owner of
the business required Kshs.100, 000.00 to start the business. It will aim at earning profit and serving
customers at high standards. The business will start early of next year 2022.

1.0.1 BUSINESS NAME.

The proposed name of the business will be Bright star Hotel. The owner of the business chose the name
because of the following reasons:

i. The name is common.

ii. The name compiles of what kind of meals are made.
iii. The name compiles about the hygiene and outlook of the hotel.
iv. The name could be easily identified because of its location.

1.0.2 FORM OF OWNERSHIP.

The ownership of the business will be operated on a sole proprietorship type of business. The owner
decided on this kind of business ownership because of the following reasons:

i. The owner enjoys the profit alone.

ii. The business form will be easier in decision making.
iii. The business is easy to start and operate.
iv. Less capital is required to start the business.

1.0.3 LOCATION AND ADRESS.

The business will be located in Oyugis town near Ringa Boys High School. This is due to the following
reasons:

i. It will be the only business of such kind in that particular area.

ii. There is enough security in that particular area.
iii. The area has many customers especially students from Ringa Boys and teachers.
iv. There is a good infrastructure.

1
The address of the business will be;

Brightstar Hotel

P.O BOX 74

OYUGIS.

TELL: 0726847478

Email: [email protected]

1.0.4 TYPE OF BUSINESS.

The business will somehow be difficult to start because the owner will be having very little capital to
start the business. It will offer services like:

i. Juice service
ii. Buffet service
iii. Drinks service.

1.0.5 GOALS OF THE BUSINESS.

The business will have long term goals such as;

i. To offer healthy dishes that is affordable and at reduced cost to its customers.
ii. To offer competitive edge by adopting a menu development and pricing system.
iii. To conduct preferably annual advertisement so as to increase the market share to satisfy
customer needs and wants.
iv. To achieve opening hours by working closely with employees the chefs and financial staffs.

1.0.6 PRODUCT AND SERVICES.

Brightstar hotel will provide meals of high quality that meets its standards both in large and small
quantities. The products and services that will be provided are as follows;

i. Soft drinks and spirits.

ii. Soups and proteins.
iii. Balanced diet.

1.0.7 JUSTIFICATION OF THE OPPORTUNITY.

The business will be justified according to the following reasons;

i. Prices of the products will be fair thus favoring every customer.

ii. The area is highly populated hence many customers.

2
1.0.8 INDUSTRY.
The Brightstar hotel will operate under Services Industry basically on small scale because of little capital
invested. Modern technology will be used such as;

i. Use of computers in receipt issuance on cash payments of goods.

ii. Use of MPESA for customers to pay for goods via pay bill numbers.
iii. Installation of cameras to show all the operations taking place in the hotel.

1.0.9 ENTRY AND GROWTH.

a. ENTRY STAGE
The business will start in the year 2022 after getting all requirements e.g. licenses from Kenya
Revenue Authority (K.R.A). The owner of the business will use the following to introduce the
business in the market;
i. Advertise the business through radios and magazines.
ii. Using posters along the road.
iii. Conducting road shows.
iv. Sign posts along the road.
b. GROWTH STAGE
The owner of the business will open new branches in areas like Kisumu , Kisii. This will clearly
indicate for the growth of the business.
c. MATURITY STAGE
The business will show its maturity through the following;
i. When the other branches will be operating on daily basis and have much capital.
ii. When employing many youths hence reducing idleness.

1.2 MARKETING PLAN.

The business will be offering different types of salads, soups and for different conferences. It will be an
open free business for all customers. Each meal will have its own price which will be included in the
menu. The business will target 70% of the market share and the last will be for the competitors. The
business will be giving credit and offers to the frequent customers. I will ensure that the business prices
will be lower than its competitors of between Kshs. 4 and Kshs. 6 as it will help the business to compete
its competitors.

3
1.3 OPERATIONAL PLAN.
This business will be offering high standards of food and services to its customers. There will be menus
for the customers. The business will ensure that there is a high standard of hygiene every day. The
owner will be using modern technology in the business operation.

1.4 FINANCIAL PLAN.

This will be a systematic plan that shows how the owner of the business will manage and analyze its
funds. The business will incur pre-operational costs of Kshs.540, 000 before it starts its operation. The
business will need Kshs. 100,000.00 to commence and this will be from personal savings, bank loans,
family contributions and sponsors. The business will be preparing financial cash flow balance sheet from
time to time.

4
CHAPTER TWO.
2.0 CUSTOMERS.
The following will be the potential customers of my business;

a) Lecturers and teachers; these are mainly the ones who live away from institutions and have
lectures early in the morning.
b) Local business people; they include shop keepers, saloonists , cyber owners, MPESA agents and
employees working in supermarkets.

2.1 MARKET SHARE.

The business will be targeting 70% of market share from its customers and the remaining 30% will be
shared amongst my competitors. The table below shows the percentage share of the market.

BUSINESS NAME DAILY SALES (KSHS.) MONTHLY SALES PERCENTAGE (%)

Mikal Hotel 1500 47,000 10%
Brightstar Hotel 3600 47,000 20%
Diaconia Hotel 700 17,000 30%
Tausi Hotel 4000 80,000 40%
TOTAL 9800 191,000 100%

2.2 COMPETITORS.
The following will be my potential competitors who will either directly or indirectly compete with me;

i. Mikal Hotel.
ii. Diaconia Hotel.
iii. Tausi Hotel.
iv. Brightstar Hotel.

The following table shows the strength and weaknesses of every competitor;

COMPETITORS STRENGTHS WEAKNESSES

Mikal Hotel Large capital known to people Little expenses, poor
management, poor sanitation.
Diaconia Hotel Good business location known to Poor management and loss
people capital.
Tausi Hotel Good business location and well Poor sanitation and
up capital. management.
Brightstar Hotel Enough capital, good Have few waiters.
management, good transport
and communication network,
good business location.

5
Ways of overcoming competitors:

i. Ensure that there is enough stock in the stores.

ii. Repainting the walls of the hotel if they fed to attract more customers.
iii. Increasing areas of parking vehicles for customers.

2.3 PRICING STRATEGY.

Pricing strategy will take into account of the following considerations;

i. Competitors prices; if the competitors price will be charging high, the price of some products
may get lower so all ensure that i charge my prices fairly thus increasing number of customers.
ii. The level of consumer income: if the level of customer’s income will increase and if the income
will decrease the price will also decrease.
iii. Demand of goods: if the demand of the goods in the market will be high then the price will get
high.

2.4 SALES TACTICS.

The business will be offering the following tactics:

i. It will help the owner to welcome more customers through face to face communication.
ii. Will help to recognize thieves in store house.

2.5 METHOD OF PROMOTIONS AND ADVERTISEMENTS.

a) PROMOTIONS: The business owner will be buying bulky goods after the other thus making the
business more popular to its customers.
b) ADVERTISEMENTS:
i. Use of newspapers whereby the owner will write the name of the business and the
picture of the hotel at the cost of Kshs.15000.
ii. Use of radios whereby the owner of the business will advertise the organization and the
structure and explains its objectives.

2.6 DISTRIBUTION STRATEGY.

The business will offer transport services for customers who will be placing their orders, this will be done
by use of motor vehicles in the transportation of meals to different customers. That will cost about Kshs.
12000 for fueling motor vehicles.

Problems encountered during distribution.

a) Poor weather conditions such as heavy rainfall.

b) Insecurity in some places which may hinder the distribution process of the meal.
c) Poor communication which may affect on reaching the customer’s order.

Solution to the distribution problem.

6
a) The communication materials will be repaired incase of any breakage so as the information
reach to the customers.
b) The motor vehicle will undergo maintenance after every one week so as to reduce cases of
breakdown.
c) The meals will be transported during good or favorable weather.

7
CHAPTER THREE
3.0 ORGANISATION AND MANAGEMENT PLAN.
The business will be managed by the following team;

i. Support clerks.
ii. Store keepers.
iii. Receptionists.
iv. Support staff.
v. General Manager.

3.1 ORGANISATION STRUCTURE.

GENERAL MANAGER

RECEPTIONIST. STOREKEEPER.

SUPPORT STAFF. SECURITY GUARD.

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3.2 STAFFING AND THEIR QUALIFICATIONS.

STAFF MEMBERS. QUALIFICATION. DUTIES.

GENERAL MANAGER. i. Must be 30 years and I. Monitoring business
above. activities.
ii. Must be of sound mind. II. Directing business
iii. Holder of diploma in activities.
supply chain III. Supervise employees.
management.
iv. Must be computer
literate.
ACCOUNTING CLERK. i. Must have diploma in I. Preparation of bank
accounts. statements.
ii. Must have experience of II. To check payrolls.
at least 3 years. III. Payment of employees.
iii. Must be computer
literate.
RECEPTIONIST. i. Must be computer I. To receive guests.
literate. II. Check rooms.
ii. Holder of diploma in III. Store keys of the rooms.
accounts.
iii. Experience of at least 3
years.
STORE KEEPER. i. Must be computer I. Keep store records.
literate. II. Marketing of products.
ii. Must be 21 years and III. Keep store records.
above.
iii. Must have diploma in
sales and marketing.
SUPPORT STAFF. i. Must be literate. I. Arranging and cleaning
ii. Should have a certificate of the structure.
in any field. II. Sorting of materials
loading and offloading of
materials.
SECURITY GUARD. i. Should be willing to I. Patrol around the hotel.
work under a supervisor. II. Monitoring the incoming
ii. Should be physically fit and outgoing of
and strong. customers.
iii. Should have a Kenya
Certificate In Secondary
Education (KCSE)

9
3.3 REMUNERATION SALARIES AND ALLOWANCES.

ESTABLISHMENT NO. OF BUSINESS MEDICAL GROSS PER

EMPLOYEES SALARY ALLOWANCES MONTH
General manager. 1 100,000 300 100,300
Accounts clerk. 2 100,000 1,600 101,600
Storekeeper. 2 4,000 1,500 5,500
Receptionist. 1 8,000 1,000 9,000
Security guard. 4 10,000 1,500 11,500
Support staff. 8 6,000 500 6,500
TOTAL. 18 228,000 6,400 234,400

3.4 TRAINING AND PROMOTION.

Training and promotion will be done to boost the skills of employees in order to improve their working
places.

3.4.1 TRAINING.
The business will offer the following training services to its employees in the following ways:

i. Short courses: Employees are advised to study during part-time to increase their knowledge in
different ways of their duty performance.
ii. Seminars: This will be taken to the firm for training to gain knowledge about the business.

3.4.2 PROMOTION.
Promotions will be done to the employees because of the following:

i. Educational background of the employees.

ii. According to their work experience.
iii. According to their duties and responsibilities.

3.5 LICENSE BY LAW AND LEGAL REQUIREMENT.

My business will require license to enable the business to run smoothly. It will be obtained from the
county government of Homabay at a cost of Kshs.5000 per year. The other legal documents that will
help the business to run smoothly are the following:

i. Health Issues: The business will ensure proper health sanitation by cleaning the compound of
the hotel daily and also ensure the wastes are dumped where necessary. The salads and other
meals are made in high standards.
ii. Waste disposal: The business will ensure that it has its own dumping site for waste materials.
iii. Environmental pollution: The business will ensure that there is no noise in the hotel and all
exploding products are kept safe to prevent them from exploding which might cause pollution.

10
3.6 BUSINESS CONTROL OF ASSETS.
a) Management advices: The management team will be responsible to ensure that all the
enterprise activities are run smoothly and will cooperate to seek any problem affecting the
business.
b) Financial management: The accounts clerk will be responsible for all financial issues of the
business.
c) Insurance: The business will ensure all assets against theft and fire at cost of Kshs. 3000 per
month.

11
CHAPTER FOUR
4.0 OPERATIONAL PLAN.
The operational plan will be a guide on how Brightstar Hotel will be operating on daily basis. Its
achievements will be to satisfy its customers.

4.1 PRODUCTION DEVELOPMENT

To develop the business the owner will ensure there is enough capital and goods are also available at
the best affordable price so as to attract customers. She will ensure she places orders of the meals
accordingly and faster to avoid guests from waiting.

TECHNOLOGY; I will use the following modern technology to run my business:

i. Using MPESA to customers who want to pay using cash.

ii. Installing cameras to monitor the business.
iii. Use of computer and laptops to record the documents concerning the business.

4.2 PROMOTION FACILITY AND EQUIPMENTS.

The table below shows machine and equipments the business requires before its operation.

ITEM NUMBER DATE REQUIRED SOURCE COST (KSHS)

Gas cookers 10 2/2/2022 Oyugis Electrics 10,000
Blending machine 6 2/2/2022 Shivling 50,000
supermarket
Computers 30 2/2/2022 Oyugis Electrics 20,000
TOTAL 46 80,000

4.3 PRODUCT STRATEGY.

a) The table below shows monthly material required in production.

MATERIAL QUALITY PRICE (KSHS) TOTAL AMOUNT

Delivery book 2 books 300 300
Receipt book 2 books 300 300
Packages 500 bags 20 (wholesale) 10,000
10,600

12
b) The table below shows monthly labor required.

LABOUR NUMBER MONTHLY PAYMENT (KSHS)

General manager 1 15,000
Account clerk 1 20,000
Receptionist 1 8,000
Storekeeping 1 8,000
Support staff 8 @ kshs 1950 15,600
Security guards 4 @ kshs 9500 38,000
TOTAL 16 104,600

c) The table below shows monthly expenses.

EXPENSES MONTHLY PAYMENT (KSHS)

Meals 20,000
Transport 8,000
Insurance 3,000
Electricity 5,000
Transport 6,000
Rent 4,000
Rooms 5,000
Repairs 6,000
TOTAL 57,000

d) The table below shows monthly total costs of production. This is the sum of the monthly
material required labor and monthly expenses.

MONTHLY EXPENSE AMOUNT (KSHS)

Production expense 57,000
Labor requirement 104,000
Material requirement 10,600
TOTAL 171,600

13
4.4 PRODUCTION PROCESS.
The business will consider the following steps to ensure smooth running of the business and that
customer needs.

Placing an order for stock.

Receiving and inspection of goods labeling arrangements and storage.

Customer placing orders.

Serving the customer.

Payment of the meal by the customer.

4.5 GOVERNMENT REGULATIONS AFFECTING OPERATIONS.

i. HEALTH REGULATORY ACT: The owner will ensure that employees are treated and each of them
has their own National Health Insurance Fund (NHIF).
ii. ENVIRONMENTAL REGULATORY ACT: The owner will ensure that there is a high hygiene within
the hotel and its workers stay safe.
iii. SAFETY REGULATIONS ACT: The owner will ensure that all businesses provide a conducive
environment for working so as to make sure that employees are not injured while working.

14
CHAPTER FIVE

5.0 FINANCIAL PLAN.

5.1 PRE-OPERATIONAL COST.

ACTIVITY AMOUNT
Machinery and Equipment 2000.00
Repair and maintenance 1500.00
License and permit 20,000.00
Advertisement 1500.00
Water 500.00
Insurance 1000.00
Purchases 5000.00
Transport 1000.00
TOTAL 321,500.00

5.2 WORKING CAPITAL.

YEAR ONE YEAR TWO

Current assets 801,640 905,550
Current liabilities 15,000 10,000
Working capital. 816,640 915,550

SALES GRAPH.
As mentioned earlier the hotel made loses in a year. However in year two and three the sales
projections were as follows.

FOOD YEAR 2 YEAR 3

Breakfast 50,000 70,000
Lunch 120,000 140,000
Take out 130,000 150,000
Evening 250,000 270,000

15
300000

250000

200000

Series 1
150000
Series 2
Series 3
100000

50000

0
Breakfast Lunch Takeout Evening

16
5.3 PROJECTED CASHFLOW STATEMENT.

YEAR JAN. FEB. MARC APR. MAY JUN. JUL. AU SEP OCT. NOV DEC.
ONE H. . G. T. .
CASH IN
FLOW
BAL. B/F _ 4200 58060 71215 8461 1005 1429 144 151 1528 1549 1562
0 9 00 60 67 15 96 06 26
CASH 20000 _ _ _ _ _ _ _ _ _ _ _
0
SALES 38000 4000 40400 50000 5400 5600 5800 591 600 6200 6300 6600
0 0 00 0 0 00 00 00 0 0
DEBTORS _ 1000 1100 2500 4500 1500 3000 250 500 4000 2000 1500
0 0
TOTAL 23800 4431 99560 12371 9451 1580 2039 203 216 2188 2199 2231
CASH IN 0 00 5 9 00 66 91 5 9 06 6
FLOW
TOTAL OF JAN- JAN- JAN- JAN- _ _ _ _ _ _ _ _
MONTHS DEC DEC DEC DEC
1,259, 200, 6,465, 2,8600
574 000 000 (Debto
(Balan (Cash (Sales) rs.)
ce) )

CASH _ _ _ _ _ _ _ _ _ _ _ _
OUTFLO
W
PROPOTI 15000 _ _ _ _ _ _ _ _ _ _ _
ONAL 0

17
 JAN. FEB MAR. APR. MAY. JUN. JUL AU SE OC NO DE TOT
. G. PT. T. V. C. AL.
Permits _ _ _ _ _ _ 20 _ _ _ _ 20 400
& 00 00 0
licenses
Loan 1500 _ _ 5000 _ _ 50 70 70 _ _ _ 395
00 00 00 00
Interest 370 _ _ 900 _ _ 90 12 12 12 12 _ 801
18% 0 60 60 60 60 0
Water 150 100 250 5000 100 100 30 10 20 20 15 40 335
0 0 0 0 0 0 0
Incentiv _ _ _ _ _ _ 75 _ _ _ _ _ 750
e 00 00
0
Miscella 400 400 300 150 _ 200 35 _ 30 30 50 40 330
neous 0 0 0 0 0 0
Total 54000 490 64000 3501 4000 4500 57 11 70 50 60 20 483
cash 00 0 0 0 00 00 00 00 00 00 010
outflow 0 0 0 0 0 0
Net 52072 210 34000 3000 2500 5200 14 32 70 60 55 40 613
cash 00 0 0 0 20 00 50 10 00 00 627
flow 0 0 0 0 0 0
Salaries 7000 600 10000 5000 8500 7000 40 66 80 30 75 11 _
and 0 00 00 00 00 00 00
wages 0
TOTAL. Pre- Sala Advertis Credi Trans Insur _ _ _ _ _ _ _
opera ries- ement- tors- port- ance-
tional- 763 1250 3500 4750 6000
50000 60

18
BREAK EVEN CAPITAL.

YEAR 1 YEAR 2
FIXED COST
Salaries and wages 55200 55200
License and permits 4000 1500
Insurance 6000 1200
Interest and loan 8010 270
Incentives 75000 65000
TOTAL FIXED COSTS 148,210 123,170
VARIABLE COSTS
Preoperational cost 50000 46200
Transport 4750 3750
Advertisement 1250 2000
Equipment 3500 2200
Water 2200 4500
Miscellaneous 3300 34000
TOTAL 65,050 92,650

19