Professional Documents
Culture Documents
LISTS OF TABLES
DECLARATION
I declare that this Business Plan is my own original work and has never been submitted by anyone for any
examination in education institution.
SIGNATURE:
This Business Plan is presented for examination with the approval of my supervisor.
SIGNATURE:
DEDICATION
With heartfelt gratitude and thanksgiving, I wish to dedicate this entire work to the Almighty God for the far he
ACKNOWLEGEMENT
First and foremost I would like to take the opportunity thank my daughter Leanne Tamia for bearing with me
especially when I had to be absent for long hours. She has been my encouragement; always reminding me to
remain focused and works hard to accomplish. Thanks Leanne for your patient and understanding.
I wish also to thank my parents, brothers and sisters and my dear friends who stood with me and always
encouraged to go on. Their support through their constant prayers and in kind enabled me make it to the end.
With sincerity and honesty, I wish to acknowledge Madam, Melioth Njenga, my supervisor. She was armed to
the tooth to ensure I got it all right. How can thank you better! Your tireless efforts and dedication left me
amazed, you never wanted to miss a lesson and where you could not make because of the many assigned duties
and responsibilities, you ensured you compensated the lesson. You guided like a mother would to her children.
I would like to take this opportunity to acknowledge each and every individual that has contributed to the
success and near completion of a Higher National Diploma. I thank the Radiation Protection Board for granting
permission to go on study and for financial support especially in paying for my college fee. I also wish to thank
the entire staff of the Board for their cooperation and willingness to assist in areas that I needed help in order to
accomplish.
I feel greatly indebted to the entire Kenya Technical Trainers College fraternity and especially the Business
Education Lectures at large for their tireless efforts, commitment and dedication to ensure that I was properly
nurtured with knowledge and skills that would help me venture into the world of business. Thank you all; God
bless.
CHAPTER ONE
For many and including the owner of Tamia Designers Ltd, seeing their names on a clothing label is the
ultimate dream. This dream arises for long love of playing with fashion and feel that the world of fashion could
be improved by the inclusion of Tamia Designers. This is a fast-paced industry and new fashion designers make
names for themselves every year. This industry may not be one that is easy to enter, but Tamia Designers will
fully be dedicated to gaining entry into it, which in the end will help Tamia Designer’s achieve its dream and
meet goals of becoming one of renowned fashion designers in the country.
1.1 BUSINESS NAME
The name of the business will be TAMIA DESIGNERS LTD. The name is derived from the owners name, who
loves fashion and anyone thinking fashion should think ‘Tamia’ designers, as it suits the new fashion or the new
trend of the current fashion. The business will be a brand that combines color and culture in an elegant manner
dealing with designs to suit people from all walks of life.
Email: freda.jacqueline1@gmail.com
Website: www.tamiadesigners.com
Tamia designers will aim at producing and offering products (design clothes) which will meet the customers’
needs and will make and sell the products profitably. The business therefore expects to:
Provide quality designs and excellent services hence retaining the client.
Make profits and find ways for fight competition and remain in market
Sufficient capital to run the business will be available which will enable
the business to pay all bills without difficulties.
To provide quality designs with a wide range of choices in clothes to a wide of customers
Vision
To become the best and most preferred fashion designer Kenya by offering the best services in terms of
fashion designs.
1.5 FINANCE/SPONSOR
To undertake the proposed business I intend to obtain money from the harambee sacco, my personal savings and
bank loan. The target amount required for the business 2.8 million.
Tamia designers business will be a sole proprietorship type of business. This type of business is easy to manage
and reduces cost of employing staff at this level. It is also easy to start and control. Making decisions takes the
shortest time possible since no consultation is needed.
The business will be located in Ridgeways, Nairobi County situated along Kiambu Road within Nakumatt
Holdings, near Queen of the Rosary Catholic church. Contact as follows:
The reason for the choice of the location to set up the business within Nakumatt Mall is to attract and hold the
large number of customers from both foreign and locals shoppers from the suburbs of Runda, Fourways
Junction, Eden Ville, and Ridgeway’s at large.
1.8 MARKET
To attract customers to buy the products, the Tamia Designers Ltd will ensure that extensive marketing through
advertising, laying good marketing and selling strategies is undertaken. Also, to avoid inconveniences and
challenges that come from Government regulations, the business will ensure all procedures are followed and
hence increase in cost and high profits.
1.9 INFRASTRUCTURE
Having good accessible roads and communication networks in terms of internet connectivity, electricity, water
connections and excellence security is very important to any business. This makes ease accessibility by
customers which will lead to the success of the business and makes its thrive. Ridgeways area is a good
business location because of its accessibility and locality.
People in the area are conscious about their appearance and the feel of sense of fashion and the new trend in the
market, therefore having such business brought closer to them will be a good venture.
This development in world of business will also create employment for young people who have undertaken
their diplomas or degree in this field and other services e.g. participation in community activities.
Fashion design is the art of application of design and aesthetics or natural beauty to clothing and
accessories. It is influenced by cultural and social attitudes, and has varied over time and place.
In the past people were not passionate about fashion; however they were conscious about the traditions, beliefs
and dress code. Nowdays, the western culture, through globalization has transformed the fashion industry and
becoming fashion conscious and moving to the latest trends. Access to fashion knowledge is easier than in the
past.
Fashion today is a global industry, and most major countries have a fashion industry. China and Bangladesh are
the biggest manufacturers of clothing, and other notable clothing manufacturing countries are Germany,
Indonesia, Malaysia, etc.
The fashion industry has continued to grow and developed in the last few years despite the challenges it faces.
Kenyan designers are now getting international recognition for their work internationally.
In Kenya, there are three fashion designers with international appeal and a bright future in the fashion industry
both in Africa and in the world; Patricia Mbela, operating her fashion label- Poisa is one of the most famous
fashion designers in Kenya. Patricia was one of the designers who were involved in the search for a Kenyan
National dress and her career in fashion spans more than a decade. KikoRomeo, owned by Anne McCreath of
design house based in Kenya. John Kaveke founded his design house in 1998 and within those few years, his
designs have been featured internationally.
These are just a few of the Kenyan designers making a huge impact in Africa and all over the world with their
creative designs and giving Kenyan fashion international recognition.
The ultimate goal of Tamia Designers Ltd will to increase sales or revenue. The business intend to apply the
following factors(strategies) that will enable increase in profits and hence lead to the growth and expansion of
the business;
Marketing. Through proper product placement, effective marketing, and an established online profile,
Tamia Designer will focus on customers needs and ensure its product more visible to the customer.
Financials. The business will ensures attractive financial projections are put in place which will reflect
positive and genuine financial development.
Internal Operations. The business internal operations have to run smoothly and leave little or no room
for error, ensuring effectiveness and efficiency.
Develop new product line by surveying my customers
Find new customer since customers will help the business to grow
Improve on customer care
Increase prices by checking if goods and services are priced correctly and if to increase prices without
affecting sales
Price discounts and promotions to increase customer base, eg 2-for-1 deals or happy hour
Retail displays by using effective retail displays to increase sales.
The fashion industry is continually evolving, making positive growth essential to remaining relevant.
The Kenyan government with all the difficult financial times indicated the government’s high-level support for
boosting the sector.
Tamia designers Ltd will endeavor to know the strengths of the competitors and strive to work effectively to
emerge as a market leader, source for adequate financial resources, and learn proprietary technology.
The business will be quick to learn on the weakness of the existing competitors in Ridgeways area and around
the country, like for example; the fact that that the business is still new in the market and still to identify our
customers is the main hitch. People and especially the young and dynamic, who are the most passionate about
fashion, are not financially stable find the designer clothes expensive to purchase getting the raw materials for
the design is quite expensive considering the economy state in our country. Getting reliable employees is still an
issue.
Most of these competitors are situated outside the Central Business District therefore Tamia Designer has added
advantage over them since its located in a more potential areas of Runda and Ridges.
1.16 ENTRY AND GROWTH ENTITIES (STRATEGIES)
Fashion is a hyper-competitive industry so having a well-designed and a high-quality products (clothes) is
simply the price of entry.
Tamia Designers Ltd will employ the 4P’s of marketing i.e Product, Place, Price, Promotion as its growth
strategies, which will aim at understanding the needs and wants of its customers.
Tamia designers will focus on developing solid and loyal client relationship offering design solution based on
the clients taste, budget use and goals. The additional selection accessibility of products, design services and
value based on pricing, will differentiate us from our competitors.
CHAPTER TWO
MARKETING
Marketing is building your brand, convincing people that your brand, in terms of your product, service, and
company is the best and protecting the relationships you build with your customers. (Marjorie Clayman ).
Importance of marketing
Marketing in any business is crucial as it helps in transfer, exchange and movement of goods. Goods and
services are made available to customers through various intermediaries, the wholesalers and the retailers.
Marketing helps in raising the standard of living of the community by bringing services closer and thus also
creates job opportunities to the people. It is also a source of income and revenue by selling the products and
services, an organization earns profits which can still be re-invested to earn more profits in future. Marketing is
mechanism helping producers to decide on what to produce and sell, as per when needs arises. Marketing can be
termed as a source of new ideas; with rapid change in taste and preferences of people, marketers come up with
new innovations and inventions for effective production and distribution. It is also a source of economic
development. Through sales and profits and good marketing strategies, the country’s economy is able to remain
strong and stable.
Why do customers buy? Customers buying behaviors is influenced by quality of product or service, competitive
pricing and others are influence by friends.
Customers will often decide to buy when there is offer time or after sales services, i.e. when a guarantee is
promised, transporting goods to doors, and sometimes it goes with seasonal like for example Christmas time,
people crumble to buy what is available and new in the market.
Customers’ buying behavior can be influenced by wanting to belong to a certain social environment for social
recognition, need for change, and sometimes it physiological whereby one buys because of an advertisement.
2.0.1 Overview
Tamia Designers is a fashionable women's clothing boutique that will open in January 2017. Tamia is the
favourite name of the owner’s daughter, defines the boutique and its essence of inclusion. Tamia clothing
selections and exclusive personal style services, which include a detailed Style Assessment, will ensure that our
customers are well dressed to look elegance on all occasions. The Tamia designers will be a woman-owned
business and will be organized as a Sole Proprietorship.
Therefore this chapter will cover the following, customer definition, types of customers, importance of
customers, who are my customers and who will be my customers.
2.1 CUSTOMERS
Customers are individuals who receive a product, either a good or a service from an organization or business.
Tamia Designers plans to segment its customers into three types of customers; who will mainly be individuals
and to some extent, organizations
1. Domestic customers
2. Institutional customers
3. Commercial customers
These are the customers from around the area who visit the business at their own times to purchase the cloth
products at Ridgeways centre. This will take 20% of the fashion products.
The customers include those who are in schools , Polytechnics, Colleges and Universities or even Churches.
The schools and colleges to be served are St Marys Runda, Kiambu Institute of Technology , braeburn school,
Ridgeways. The churches include Our Queen of Rosary Catholic, P.C.E.A Church and A.C.K cathedral church.
These institutions are to take the highest percentage proportion of 50% of the fashion products.
These are travelling customers who will be travelling and purchasing the already designed and made outfits; so
normally they will be served.
2.1.5 IMPORTANCE OF CUSTOMERS
The corporate image is the impression of the policies, personnel and operations of a corporation that is imparted
to its employees and the public.
Tamia Designers intends to inform educate and create a mutual understanding with the customers which will
create an awareness of the business to the public and they will be able to know the core activities and functions
of the business.
The business will ensure, the reception area, being the first place any visitor will pass through, it will be
furnished and decorated so that the client feels at ease in the friendly environment because we look forward to
demonstrating how important our customers will be.
Tamia Designers will be target customers mainly for the residency of the surrounding estates which will focus
on women and ladies of 18 – 60 years. The business will also involve few organizations and make them our
customers.
Chatting to fashion insiders here feels, in many ways, the same as anywhere else around the world. Nairobi's
power bloggers have moved to Instagram; local designers are troubled by cheap counterfeits; and the same
laundry list of global celebrities reigns supreme from Mombasa to Lake Victoria. But scratch beneath the
surface and it soon becomes apparent that, for any outsider, the key to a meaningful conversation about the
Kenyan fashion industry lies in understanding two Swahili words: mitumba and kadogo, which consistently
punctuate the polished, internationally-accented speech of so many of Nairobi’s movers and shakers.
For years, Kenya has been inundated (some would say blessed) by the world's cast-off clothing. As East Africa's
regional trading hub, Nairobi has become a clearing house for many dealers of second-hand fast fashion, mass
and designer labels, which are sent in bulk shipments to the continent.
"The mitumba business has played an important role in brand awareness here," says Diana Opoti, a Kenyan
brand strategist and host of a pan-African fashion television programme called Designing Africa.
"I've heard various brands are seriously assessing the market now – Inditex among them," says Ann McCreath,
a pioneer on the market who started the contemporary Kenyan fashion label KikoRomeo nearly two decades
ago and FAFA (Festival for African Fashion and Arts) in 2008 as a platform for other local brands like Wambui
Kibue and Jamil Walji after Kenyan Fashion Week ceased operating.
Fashion is no longer just a preserve of the rich but an essential part of all our lives. We want to not only feel
good but look good too. There is a new crop of designers who understand the saying that clothes maketh a man
and they have found a way to interpret trends and incorporate them into their designs.
2.3 COMPETION
Tamia Designers will have to compete with other established businesses, such as Iona Mcreath of kikoti fashion,
Wambui Kibue of angelsmile, Roselyn Shiyenze, Valerie of Afrivazi, among many others and will carry a
SWOT and SWAT analysis. This will provide information that is helpful in matching the firms resources and
capabilities to the competitive environment in which it will be operating and also will involve studying the
business weakness in depth.
Weakness
Tamia Designers will also do analysis on its weakness and know that it may lack adequate financial resources to
operate the business and needs to utilize the available resources keenly. The business needs to do intensive
advertising to gain customer confidence since the competitors have been in the market for a longer period and
have acquired potentials customers.
Opportunities
The business will also take advantage of the loosening of the regulations to install new technologies and
identify unfulfilled customer needs and fulfill.
Threats
The business will be on the alert and will identify the shifts in consumer tastes and preferences and will act
immediately to prevent them from shifting to the competitors.
The business main competitors will be Angelsmile, kikoti Fashions, and Afrivazi designers. Most of these
competitors are situated outside the Central Business District therefore Tamia Designer has added advantage
over them since its located in a more potential areas of Runda and ridges.
Tamia Designers will identify and measure key profits drivers that will ensure that no increase of costs is
incurred by looking for ways to increase sales revenue as well as decreasing costs and see how the business
can save money.
Tamia designers intend to apply the following strategies to ensure maximum profits:
The business will also lay strategies to decrease costs, like for example,
Decreace inventory – stock control
Decrease direct costs ensuring the business has right suppliers which will help negotiate for better
prices or discounts
Decrease indirect costs by trying to minimize waste and errors in the business e.g. reducing marketing
costs by using low costs marketing techniques
Benchmarking key financials, like compare cost of rent, utilities of similar businesses in the industry and
see that the business is not paying too much
The business will aim at prioritizing the strategies and focus on profitable items and focus on products and
services with highest gross profit margin which will help achieving higher sales target.
Tamia designers aspire to grow and compete with the established businesses and increase its profit margin
through intensive selling of its services. The business will install the technology to be able to access its
customers easily.
2.6 ADVERTISING AND PROMOTION STRATEGIES
The Internet
The business intends to launch a website through which it will advertise its made outfits and fashion trends. The
business will post the items and the types of services that it offers on the website and customers will be able to
e-mail and place an order. They will also be able to make payments through e-banking; they don’t have to go to
the bank.
The Radio
The business will use the radio to advertise its products / services to the customers. This will be done by the
Heat FM; this is because it targets a bigger population of listeners.
Newspapers
The business targets the group who consists of middle level earners who are able to access newspapers on a
daily basis and they can keep the newspaper for reference. It also affordable and most customers will be able to
access it at least three times in a week.
Personal Advertising
This one on one interaction with the customers. Tamia Designers will organize to attend the exhibitions and
trade fairs where it will earn a chance to display all the items that it sells.
Bronchures
Tamia Designers will secure around town to look for a graphical designer who designs brochures at a reasonable
price. The brochures will be kept in business premises for customers to read. The brochure will contain all the
items that the business is dealing in. It will also show pictures of different kind of outfits and wears. The
brochures will be updated from time to time when there are new items to be displayed.
TAMIA
DESIGNERS
LEANNE NJERU Managing
Director “Your
happiness is our pride”
Ground Floor next to Nakumatt
P.O Box 1639-00100
NAIROBI, Kenya
Tel; +25405627947
EMAIL:tamiadesigners@gmail.com
Yellow Pages
Tamia Designers will apply for its contact address to be printed in the yellow pages and this will include the
business name, address, location, e-mail address. The subscription fee is quite affordable for the business.
Logo
Tamia Designers will have a logo that will be printed on all its letters and envelops.
TamiaDesigners
Notice Board
“Your happiness is our pride” The notice board will be displayed at the entrance of the building and will show
the direction of the business.
TAMIA DESIGNERS
GROUND FLOOR
WELCOME
Distribution refers to how the business will make its products or services available to customers. Tamia
Designers will use the direct channel to distribute its products or services and will strive to be efficient and
effective to meet the customer’s needs so as to meet its overall marketing objectives.
CHAPTER THREE
This includes an organizational structure of the business, present professional experience and achievements of
people who are to manage the project.
The plan also present the employment plan for the next few years, including the people the business is going to
hire, their skills and experience.
3.1 INTRODUCTION
Organization is the activity of putting a working order or arranging people into an efficient system to attain
organization goals. Management is getting work done through other people. It is the duty of Tamia Designers
to concerns itself with the direction and control of various activities to attain business objectives. In any given
business/organization, a good and detailed workforce determines the rate of success of that organization. Tamia
Designers Ltd expects to get well trained workforces which implement all activities of the enterprise so as to
remain competitive in the market.
This chapter details the people who will be involved in the entire management of the business activities. It
details the objectives of the staff plan. It also shows how the appointments of the management team will be
done, what will be their role and how they will be appointed.
An organization is a group of people intentionally organized to accomplish an overall, common goal or set of
goals. Business organizations can range in size from two people to tens of thousands.
The organization structure of Tamia Designers will be flexible to accommodate expected changes in future due
to expansion. Should the organization grow beyond its estimated size, more positions in specialized areas will
need to be added as well as additional site support and office assistance. The responsibilities assigned to the
employees will be clearly defined to enable them carry out the duties assigned effectively.
The team will function as one with constant communication through weekly staff meetings because all jobs are
interrelated. There will be well defined channels of communication both downwards and upward which will
allow each employee to have one supervisor. This will avoid conflict of instruction and will improve efficiency.
The performance of one affects the performance of the others; therefore each team member will expect nothing
but the best from each other. This will create a culture of teamwork among the employees.
Director
Assistant Manager/
Designs Assistant
The organization chart will aim at job description and knowing who is responsible to who and his/her
responsibilities for effective running of the business and thus avoiding conflicts among staff.
This will comprise of the Director, Assistant Manager/Designs Assistant and an Accountant. The management’s
objectives will be to recruit qualified staff, develop staff through training, develop teamwork spirit within the
employees, motivate staff through good remuneration, utilize employees abilities and skills through which
employees will be stimulated to perform to their highest potential, and enhance employees creativity and
innovation in order for them to attain job satisfaction.
3.4.2 Qualifications
o Holder of a Higher National Diploma in Fashion Design
o Diploma in Fashion and clothing
o KCSE B Minus or Equivalent
o Working experience 5 years or more in different fields.
o Good communication in Kiswahili and English Languages
o Aged 45 years
o Kenyan citizen
3.4.3 Remuneration
The Director/Proprietor will earn a monthly basic salary of Ksh.20,000.00.
3.5.3 Qualifications
Holder of Diploma in Fashion and clothing
Certificate in Fashion Design
KCSE C Plain OR Equivalent
25-40 years.
Experience of about 3 years in the same field
Good communication in English and Kiswahili
Kenyan Citizen.
3.5.4 Remuneration
The Assistant Manager/Designs Assistant will be entitled for a monthly basic salary of Ksh.13,000.00
3.5.5 Accountant
The business will employ one accountant who will be responsible for all the financial matters of the business
activities. After sometimes, the business will employ a cashier who will relief the Accountant some duties. The
accountant will be answerable to manager.
3.5.6 Duties and responsibilities
o Responsible in determining financial forecasts of the business.
o Monitor expenditure, payments and ensure that funds are properly utilized.
o Keeping stock inventory.
o Stock control and purchasing products when the reorder level is due.
o Documenting all aspects of the business finances and other records
o In charge of bank transactions including cashing cheques, depositing cash and withdrawals.
o Responsible for internal and external enquiries related to the business
o Responsible for paying the staff salaries
o Typing of all the correspondences and responding to the urgent matters on behalf of the manager.
3.5.7Qualifications
o Holder of CPA1 certificate
o Experience of at least 3 years in the same field.
o KCSE Grade C or equivalent
o Good communication in English and Kiswahili
o Must have certificate of computer from a recognized institution
o Certificate of good conduct
3.5.8Remuneration
We shall have one Accountant will earn a monthly basic salary of Ksh.12,000.00
3.5.11 Qualifications
3.5.12 Remuneration
Tamia will engage two(2) persons in marketing and sales department who will earn a monthly basic salary of Ksh.10,000
each.
3.5.13 Messenger
The messenger will be in charge of the reception desk and deliveries. The job entails general cleaning and
running errands. Directly reports to the site manager.
3.5.15 Qualifications
o ‘O’ Level certificate – grade ‘ D’
o Fluent in Kiswahili and English
o Certificate from Department of Public Health - Physically and medically fit
o Certificate of Good Conduct
o 30 – 45 years of age
3.5.16 Remuneration
The business one (1) messenger who will earn a monthly basic salary of Ksh.7,500.00
3.5.17 Casuals
These will be hired by the enterprises on casual basis which will be temporary to assist in any overwhelming
work. They will directly report to the Assistant manager.
3.5.19 Qualifications
o Form four certificates – grade ‘D’
o Certificate of Good Conduct
o Basic knowledge in business
o Be able to communicate well in English and Kiswahili
3.5.20 Remuneration
Tamia Designer will engage two (2) casuals who will earn a monthly basic salary of Ksh.5,000.00 each.
NB: Salaries in cadres will be reviewed once the business picks and this will depend on the team’s hard work.
Other allowances will also be considered, like house allowance, commuter allowance.
3.6.1Recruitment
Recruitment is the process of attracting job candidates with the right characteristics and skills to fill job
openings. The recruitment process for the Tamia designs employees will be conducted by the manager after
advertising for the vacancies. This will be done after potential employees have first sent out their application
letters after which the selected ones will be invited for the interview.
Recruitment of employees will be done in various ways: adverts will be through local daily’s, meetings and
adverts also placed at strategic places e.g on gates of churches, learning institutions, shopping mall notice board
etc. This will be done at least one month before the commencement of the business.
All interested candidates will apply to the manager. The applicants will be short listed and those successful will
be notified through their postal addresses/phones two weeks prior to the commencement of the business. The
appointment letters among other things will indicate the salary and terms of payment and job specifications. The
total cost of recruitment will be Ksh.10,000/=. The buget cost for the recruitment exercise is as follows:
Expenditure
Description Date (Ksh)
1 Advertisment 15 March 2016 3,500.00
2 Interviews 25 June 2016 2,400.00
3 Appointment/Recruitment 2 December2016 2,500.00
4 Miscellaneous - 1,500.00
Total 10,000.00
The owner of Tamia Designs will look for a recruitment consultant to assist in getting the qualified staff for
various the posts. As for the watchman, she will hire a watchman from cornerstone Security Firm.
3.6.2 Training
Training is any procedure intended to foster and enhance learning among employees. Training is a process of
learning a sequence of programmed behaviours. It is the application of knowledge which gives an awareness of
the rules and procedures to guide employees’ behaviour.
Employees will be given ample opportunity to become oriented to the firm and then later they will be trained
and developed in areas of customer care to start with before moving further to their areas of specialization. The
employees will also be having induction courses i.e. on the job training. They will be trained on customer care,
stress management and basic computer skills. These will be arranged with professionals in those areas by the
management and will be done yearly
After recruitment of employees, they will undergo induction training. Induction training is arranged internally
for new employees to be introduced to the firm and to the job. A new employee must be shown where his place
is in the organization.
The induction course which will last about one week will cover:-
o Brief history of Tamia designs Ltd
o The products, present organization and the work of different personnel and sections
o The rules of working, safety and health regulations
o Human resource policy regarding discipline, education and training at the expense of the organization
and promotion, holidays and date of payment of salaries and wages
3.6.3 Promotion
Promotion is a change of assignment from a job at a lower level to another at a higher level within the
organization. It will be based on merit and qualification. This will be determined by the regular assessment of
employees’ performance. Promotion will therefore be awarded in terms of salary increment. This will depend
on an employees work output and the profits the firm will have made within a particular year.
Incentives
Incentives can be defined as payments linked to the achievement of previously set targets that are designed to
motivate people to achieving higher levels of performance. The targets are usually quantified in such terms as
output or sales. Tamia Designs will offer bonuses at the end of each year depending on how it has performed.
Transport facilities will be offered if and when the employees work late. Insurance cover will also be bought
for the employees. The manager will organize for the employees to have 10.00 O’clock and 4.00 O’clock tea at
the place of work and also lunch. This will keep them to work the whole day without having to close the
business and thus it will stimulate them to work harder.
The employees will be offered salary advance on the 15th day of every month and they will be given a day off
every two fortnight each.
Motivation
The employees will be given incentives to motivate them to enable the business expand. These will include
overtime allowances i.e. extra payment for working on Sundays and Public Holidays, hours worked after five
o’clock and during weekdays. Salary advance will be given to employees on request. When the business
makes a high profit, the employees will get bonuses. The management will arrange for a bonding party for the
entire employee at the end of every year. This will improve the relationship among them.
The employee will be allowed to register with Tamia designs Sacco which will help them make some savings
which can earn them loans which will improve their living standard.
Discipline
Discipline procedures will be taken against any employee who violates the firm’s ethic. The management will
have its internal disciplinary committee to handle such issues. The employees affected will be summoned by
the management and served with a warning letter and ask to write a show cause letter why he/she should not be
dismissed. If the employee reform’s he/she will be retained with a stern warning that if he/she repeats the same
offence will be dismissed from his/her job and will not be entitled to any benefits.
Performance Appraisal
For the employees to be remunerated appropriately, the company will consider using job demand comparison
method. The attributed to perform direct jobs are compared, reporting time and customer relations. Finally,
monetary values will be assigned directly to each of the attributes as demanded by the job. Each attribute will
have a point scale of 1 -3 as below.
1 - Low
2 - Average
3 - High
Staff welfare
Lunch will be provided to the employees. This will be to ensure that employees are always within the working
area. While taking their meals together, employees will exchange views on their work and as such can assist
one another in areas where one requires assistance. The exchange of views is healthy and may lead to business
progress.
3.8.2 Electricity
The premises already have electricity supplied by Kenya Power and Lightning Company (KPLC). A monthly
bill will be paid to them depending on the company’s consumption. This will enable the business use computers
and for lighting purposes. The deposit required will be Kshs.2,500=/
3.8.3 Water
Water will be obtained from Nairobi Water and Sewage Company and a monthly bill will be paid depending on
the company’s consumption. The deposit to be paid will be Kshs.1,000/=.
Nairobi Water and Sewage Company
P.O. Box 20015-00100
Nairobi
3.8.5 Transport
The business will purchase a second hand van for all its deliveries, and when the business will need to deliver in
large quantities, vehicle such as a canter (covered) will be hired. The van will be bought at Kshs.450,000/= by
Tamia Designers.
3.8.8 Consultancy
As the business grows, it will require advice on management from consultants to enable Tamia Designers know
areas that needs improvement in terms of growth and profits. The business will therefore seek the services from
small business skill consultants, which is a reputable firm and are situated in Milestone House within
Ridgeways at consultancy fee of Kshs.200 per hour when the services are needed.
3.9.1Name Search
Tamia Designers will obtain approval for the company name from the Registrar of Companies at Kshs.700/=.
This will be in order to avoid the company using a name that already exists for another business.
These are step by step procedures that the business shall engage in producing products and services. It is an
explanation of the personnel that will be offering the service, the facilities and the strategies the business
shall employ.
Tamia Designers Ltd being largely a product and service company, stock will highly be minimized. In most
cases the business will supply products to its potential customers who are around Ridgeways and its
environs. The products sold will be of high quality and will be transported to customers by use of the
business van, or in case of large supplies the business will hire a canter from Sosi Company located along
Kiambu Road before the business is able to buy a large vehicle. When customers place an order, the
products (Clothes) will be transported to them directly.
The business is going to choose and employ the staff who will act as the suppliers and the manufacturers in
the business. They are going to use a van to supply the goods to the customers. The employees will design
the garments from the bought material and pieces of cloth.
Tamia Designers Ltd will have a unique business logo which will be shown on the business documents like
business letter heads, business card and on advertising and direction posters.
Tamia designers will work on developing its own recognizable style by developing skill and instincts in order
that the business can create its own successful style by applying the importance of brand identity and using
styles to make its designs more unique than others in the market. The business will develop a plan for fashion
design training and courses for its employees which will offer different training options available for fashion
designers. The business will seek to find target market in the fashion industry by identifying the ideal customer
base for our new fashion business and also will seek legal options that the business will use to protect its fashion
designs from being copied.
Tamia Designers will aim at making clothes to fit all sizes, i.e. adjusting the clothing designs for different sized
customers and on the advantages of designing for larger people. The business will seek to understand workplace
clothing so that it can get involved in designing workplace wear for all kinds of different corporate and factory
environments. To make our designs more unique and relevant, Tamia will seek to have a signature fashion print
and give a unique look for our fashion designs and also keeping records of our patterns and fabrics.
Tamia designers will employ basic equipment for starting up the business and making good quality purchases
by choosing the right the right sewing machines, right workspace, developing staff skills employing new staff,
learning how to store and care for fabrics. The business will also seek to meet demand for its fashion designs by
involving contractors in order to manage fluctuating demand for its fashion designs. Tamia will adjust to the
changing market by taking necessary measures like being well equipped with necessary tools and skills in order
to survive in challenging economics times and also being able to raise funds for the business. Tamia should also
be able to predict its future business income and the pros and cons of taking a salary and understand VAT and
tax issues. Tamia will also create its own fashion business website and getting its designs featured in press by
communicating effectively with the press and drawing media attention to its fashion design business. The
business will also be holding promotional events, i.e. when the business will be planning to launch a new
fashion. The business, through the marketing team will do extensive marketing by researching, targeting and
running marketing campaigns for its fashion business. Tamia will be using social networks to boost the business
on many levels, using fashion trade shows to promote the designs to retailers and customers who attend the
trade shows and also using professional fashion photography.
Tamia Designers will design, construct and distribute its own fashion catalogue to promote its fashion designs,
develops logos and labels for the business as well as persuading retailers to stock our designs and aim at
keeping them coming back for more. The business will be selling clothes on market stalls to promote and sell its
products, and also selling online through its website. The business will aim at satisfying customer needs and
encouraging return of customers. Tamia will also be using online auctions in order to sells clothes successfully
and advertise its fashion design business.
4.2.3 CONSUMBLES
Item Quantity Unit Cost Total Cost Supplier
(Ksh) (Ksh)
Dressmakers tracing 10 rolls 250 2,500 Cloths Dealers Ltd
paper
Tailors chalk 1 pkt 300 300 Cloths Dealers Ltd
Tailors wax 2 bottle 600 1,200 Cloths Dealers Ltd
Spray bottle 1No 350 350 Cloths Dealers Ltd
Pencils 1 pkt 1200 1,200 Savannis bookshop
Note Books 5No 250 1,250 Savannis bookshop
Pen 10No 10 100 Savannis bookshop
Books (hand books) 5No 100 500 Savannis bookshop
Printing papers 5 reams 100 5,000 Savannis bookshop
Printer cartridge 2No 3,500 7,000 Rotek Technology Ltd
Business Rubber Stamp 1No 800 800 Seal Honey Ltd
Cash Register 1No 1,000 1,000 Savannis bookshop
TOTAL 21,200
The business will operate in a five roomed premises to minimize on the cost of rent. These will include the
Director’s Office, Managers/Designs Assistant office where all transactions will be handled, the workshop
cum store where products and other equipment will be stored after purchasing. The workshop will also be
used in the production process. There will also be another room for the Marketing team and a section for
the Accountant. The front area will be occupied by the Receptionist. The space will be adequate since there
are not so many activities. The area also has a display window where finished garments will be displayed.
The business premises has room for expansion as the back side is still under construction and we intend to
take more rooms as soon as the building will be completed in the next two years.
The business proposed organizational structure is shown in the next page.
The Figure below illustrate the Proposed Layout for Tamia Designers
Toilets
Kitchen
Director’s Office
Messenger
Reception Office
Manager/Designs Store
Assistant office
Production/Workshop
Accountant Area
Customer’s Reception
and Service Area Washrooms
Parking Area
These are the operation processes that the business will undertake from the time of producing the goods till
the time they reach the customer. This will include placing orders, transportation, delivering of goods,
packing and display.
The first production of our clothes will be put on display one day before the official opening of the premises
for the invited people to see and will end attracting potential customers. The number of pieces bought will
be counted and recorded in the delivery book by Marketing team to enable the business make proper and
timely decisions in amount of production.
Deliveries will be made immediately to the respective customers. Payment can either be made on delivery
or on order depending on the agreement that will have been reached. If there are finished clothes for sale a
few will be put on display. The supervisor will regularly take stock of the number of pieces remaining so as
to place orders in good time.
The counter will be placed at the receptionist desk near the exit so that the customers can pay after selecting
the dresses or outfits they want to buy. The cash register will be controlled by owner of the business who is
also the Director and she will be assisted by the Accountant in her absence. The accountant will enter all the
days’ sales in the cash book.
For Tamia Designers to prosper, each aspect of production has to be taken into consideration with diverse
measures. Tamia will aim to give its staff the best so that they are motivated to perform to the best of their
abilities. The business intends to operate its business full-time 0800hrs – 0800hrs from Monday to
Saturday. For effective and proper production to take place certain steps have to be followed. The Business
will devise a method that will ensure that goods pass through proper process; from the time buying materials
up to the time of the completion.
Steps to taken in the production process is shown in the next page.
Below is the steps/production process to be followed.
Repairs/
Alteration
Folding and Packing to Inspection of Dispatch to
Packing Box Ready garments Customers
for delivery
Below are some pictures of Tamia designs materials ready for production
These are the resources needed by the business to ensure the smooth flow of work. The purchase of
equipments to be use will be done prior to the commencement of the business and ensuring the business
runs without any interruptions.
There are long-term assets which will help the business to prevail.
Tables: The business will have 4 office tables which will be used by the Director, Designs Manager,
Accountant and Receptionist. There will be 2 workshop tables which will be used for placement in the
workshop at the time of production processing. The other tables will be a computer table which will be used
to place the computer in the office.
Chairs: There will be many types of chairs which will be used in the enterprises e.g office, visitors chairs,
reception are seats to be used by the clients who will visit the business premises while awaiting the services,
etc
Van: This is the vehicle which the business will use to transport Products to their destinations.
Scissors: these will be used for cutting into pieces of clothes in different designs.
Assets Capacity
1 Executive tables (medium) 4
2 Reception desk (medium 2
3 Workshop table (Large) 2
4 Executive chairs (orthopedic) 4
5 Reception chairs (ordinary) 2
6 Clothes cabinets (Large) 2
7 Visitors chairs 4
8 Reception seats (7 seater set) 1
9 Van 1
10 Kitchen table (small) 1
Capacities utilization
Deliveries will be made immediately to the respective customers. Payment will either be made on delivery
or on order depending on the agreement that will have been agreed upon.
When clothes are ready for sale they will be put on display and those that have been ordered will be
delivered to customers immediately. The supervisor will regularly take stock of the number of clothes that
have been sold. Tamia Designers will be targeting to complete 5-8 pieces per day. That means for a month
the business will be making and completing approximately 170 pieces per month. If calculated in Kshs it
will be 170 @ Ksh 3000/= each (selling price) is equal to Ksh 510,000/=. Thus a good profit per month.
Tamia designers will also expect to buy clothing materials in bulky after a week or so. This will be ensure that the
business meets the production rate of making 5-8 pieces of clothes to meet the demands of our clients
4.5.1 Depreciation
The business assumes that some of the assets will depreciate by 10% per year. The vehicle needs to be
serviced after the end of its service period to make it serve the business well. This will make it possible for
the business to use one vehicle for a period of 10 years. Therefore this kind of depreciation will be used in
production process. Other assets include the computer, tables, chairs, cabinets, iron boxes.
The Proprietor will see that laws are maintained and adhered to as stipulated by the government. Licenses
and other matters related to the workers will be dealt with accordingly so as to put off any interference to
breach of the law.
If Tamia Designers breaches conduct laid by the government, the business will render being penalized. In
case employee’s health affairs are not looked at, it means non-compliance to the already stipulated
regulations and therefore the enterprise will be liable to heavy fines. This will lead to great loss in finances
which could have been used to enhance and develop the business.
Business registration – The business will be registered under the name Tamia Designers Ltd according to
registration of companies Act.
Trading License – A trade and business license will be acquired and renewed every year in order to
operate smoothly. This will be applied from the Ministry of Trade and Industry at a fee of ksh.5000/= per
year.
Public Health Act cap 242 – Under this Act, the Workers’ Health will be taken into consideration. This
includes providing proper sanitary facilities and good working conditions. Also employees will undergo
vaccination through the Department of Public Health. This will prevent any tetanus germs. Before
Operations begin, the business premises will be painted and then inspected by Department of Public Health
who will in turn issue a certificate of compliance.
Statutory deductions: NHIF, NSSF and PAYE which largely depends on salary scale and will be
deducted directly from the employees pay and remitted directly to the respective organizations. This will
be done monthly without any delay.
Value Added Tax (VAT) – This tax will be surrendered to the Kenya Revenue Authority yearly.
Environmental Regulations – Tamia Designers will place litter bins at appropriate places within the
premises which indicate “keep the environment clean”. It will also have a disposal pit which will be used
for burning the remains of material pieces and other dirt from the production area, office papers, kitchen
litters.
Business Permit
A business permit will be obtained from the Nairobi County offices, Licensing Department at a cost of
Kshs.1,500/=.
Company Seal
A company seal will be obtained from the Attorney General Chambers at a fee of Kshs.2,500/= after the
certificate of incorporation has been issued.
For Tamia Designers to run smoothly, rules and regulations will be stipulated so that workers may work
according to the business laid down rules. Tamia Designers intend to adopt the following regulation code
which supposedly is adhered to by all employees regardless of their ranks:
For the codes to be effected fully each employee will sign a form as a show of acceptance and
allegiance to them.
PIN Number
Every employee will be expected to obtain a PIN from the Tax Department at the Kenya Revenue
Authority Offices at Times Towers Building at no charge. All employees will be liable for monthly
deductions for purpose of itax remittance.
CHAPTER FIVE
FINANCIAL PLAN
5.0. INTRODUCTION
A Financial Plan determines the financial position of the business and requirements of the business in terms of
money available, how much to be spent.
It is important to plan for financial in order to obtain adequate funds which will sustain the business and enable
it to achieve maximum profits and improve the business value. This may include;
(i) determining capital requirements
(ii) determining capital structure
(iii) framing financial policies with regards to cash control, lending and borrowing
(iv) inadequacy of finances
(v) sourcing
No Source Amount
(Ksh)
1 Harambee Sacco 1,000,000.00
2. Barclays Bank loan 1,000,000.00
3. Personal savings 800,000.00
TOTAL 2,800,000.00
CURRENT LIABILTIES
Ksh.
Creditors = 80,000.00
Accrues = 30,000.00
Short term loan = 60,000.00
TOTAL = 170,000.00 170,000.00
1,340,000.00
Sales
6,120,000.00 6,120,000.00 6,120,000.00
Opening Stock
127,500.00 127,500.00 127,500.00
Purchases
3,060,000.00 3,060,000.00 3,060,000.00
Goods available for sale
3,187,500.00 3,187,500.00 3,187,500.00
Less Closing Stock
75,000.00 75,000.00 75,000.00
Cost of Sales
3,112,500.00 3,112,500.00 3,112,500.00
Gross Profit
3,007,500.00 3,007,500.00 3,007,500.00
Operating Expenses
Businss Permit
3,000.00 3,000.00 3,000.00
Trade license
5,000.00 5,000.00 5,000.00
Recruitment expenses
10,000.00 10,000.00 10,000.00
Consumables
234,600.00 234,600.00 234,600.00
Communication
24,000.00 24,000.00 24,000.00
Electricity
30,000.00 30,000.00 30,000.00
water
12,000.00 12,000.00 12,000.00
Telephone
48,000.00 48,000.00 48,000.00
Transport
48,000.00 48,000.00 48,000.00
Advertising
138,504.00 138,504.00 138,504.00
Payroll Expenses
990,000.00 990,000.00 990,000.00
Insurance of Motor Vehicle
20,250.00 20,250.00 20,250.00
Repairs and Maintenance
24,000.00 24,000.00 24,000.00
Depreciation - Motor Vehicle
45,000.00 45,000.00 45,000.00
Depreciation - Furniture and
Equip. 8,980.00 8,980.00 8,980.00
Total Expenses
1,641,334.00 1,641,334.00 1,641,334.00
DESCRIPTION AMOUNT
Consumables 234,600.00
Communication 24,000.00
Electricity 30,000.00
water 12,000.00
Telephone 48,000.00
Transport 48,000.00
Advertising 138,504.00
Repairs and Maintenance 24,000.00
BEP (Break Even Point) is where total fixed costs are equal to total variable cost
Simply put, it’s the position where the organisation is making no profits or losses
BEV = 1,082,230.00
670.00 - 275.00
CONCEPTUAL MAP
EXECUTIVE BUSINESS MARKETING ORGANIZATIONAL OPERATIONAL FINANCIAL
SUMMARY DESCRIPTION PLAN PLAN PLAN PLAN
Business Introduction: Introduction: Organizational plan Introduction: Introduction
Description Business marketing plan o Introduction operational plan Finances
description and importance Organizational required
Marketing Plan Business name o overview structure Product/service Pre-operational
Business Organizational chart Production tools costs
Organization assumptions Customers Management tool and equipment Working
Plan Primary objectives o Domestic Recruitment, capital
Mission statement customers training and o tools and Proforma
Operational Finance/sponsor o Institutional promotion equipment income
Plan Business ownership customers o recruitment o furniture statement
Business location o Commercial o training o consumable Proforma
Financial Plan and address customers o promotion s balance sheet
Market o Transit remuneration o other Projected
Infrastructure customers and expenses Cashflow
Business venture o Importance motivational statement
Contribution to of customers incentives Layout plan Break even
local community o Business Evaluation and o chart analysis
The industry customers development Operational Analysis ratios
Growth and Market size and o employees process
expansion trends evalution
Competition o product/service Production
Competitive trends
Pricing evaluation facilities and
Market share equipment
Entry and growth strategies Support services
o pricing o depreciation
entities (strategies) o telephone
methods services Rules and
o Sales strategy o electricity regulations
o Advertising and o water governing
promotion o banking operations
strategies services o governing
o pricing o transport regulations
discounts o insurance cover internal
distribution o auditing regulations
strategies services
o consultancy
o legal services
Licences, permits,
government
regulations
o name search
o declaration of
compliance
o pin number
o business permit
o company seal
o national social
security fund
o national
hospital
insurance fund
EXECUTIVE SUMMARY