TITLE PAGE

BUSINESS PLAN

IDI FISH-MONGER ENTERPRISES

P.O BOX 415-40100 KISUMU

TEL: 0723372854

Email: idifish_mongerenterprises.com

BY

IDDI MAKOKHA IMBUNDU

ADMISSION NUMBER: BE/04040/018

 DEDICATION

I dedicate this Business plan to my parents, for giving me the opportunity to become more in life,
by enabling me to further my education.

ii
 ACKNOWLEDGEMENT

I want to want to thank the Management of Maseno University for providing me with the necessary
books needed to undertake this business plan acknowledge my supervisor for being there during
consultations and for giving me the much needed guidance lastly I thank my family and my
classmates for their cooperation throughout my work .

iii
 TABLE OF CONTENTS

TITLE PAGE ................................................................................................................................... i

DEDICATION ................................................................................................................................ ii

ACKNOWLEDGEMENT ............................................................................................................. iii

TABLE OF CONTENTS ............................................................................................................... iv

EXECUTIVE SUMMARY ........................................................................................................... vi

SECTION ONE .............................................................................................................................. 1

EXECUTIVE SUMMARY ............................................................................................................ 1

1.1 Business name ....................................................................................................................... 1

1.2 Business location and address ............................................................................................... 1

1.5 Products and services ............................................................................................................ 1

1.6 Justification of opportunity ................................................................................................... 1

1.7 Industry ................................................................................................................................. 2

1.7.1 Industry characteristics ...................................................................................................... 2

1.7.2 Industry future .................................................................................................................... 2

1.8 Business goals ....................................................................................................................... 2

1.9 Business Organization .......................................................................................................... 3

SECTION TWO.............................................................................................................................. 4

DESCRIPTION OF THE BUSINESS ............................................................................................ 4

2.1 The Business Concept ........................................................................................................... 4

2.2 Industry Analysis .................................................................................................................. 4

SECTION THREE .......................................................................................................................... 5

MARKETING PLAN ..................................................................................................................... 5

2.1 Introduction ......................................................................................................................... 5

2.2 Customers ............................................................................................................................. 5

iv
 2.3 Market share.......................................................................................................................... 5

2.4 Competition........................................................................................................................... 5

2.5 Advertising and promotion strategies ................................................................................... 6

2.6 Sales tactics and strategies .................................................................................................... 6

SECTION FOUR ............................................................................................................................ 7

OPERATION AND MANAGEMENT PLAN ............................................................................... 7

4.1 Introduction ........................................................................................................................... 7

4.1.1 Production and operation facilities and capacities ............................................................. 7

4.1.2 Premises ............................................................................................................................. 7

4.1.3 Tools and Equipment’s ...................................................................................................... 7

4.1.4 Construction materials ....................................................................................................... 7

4.2 Suppliers ............................................................................................................................... 7

4.3 Sales and marketing officer (all directors) ............................................................................ 8

4.4 Caretaker ............................................................................................................................... 9

4.5 Accounts clerk ...................................................................................................................... 9

4.6 Managing Director ................................................................................................................ 9

4.7 Organizational chart .............................................................................................................. 9

SECTION FIVE ............................................................................................................................ 10

FINANCIAL PLAN...................................................................................................................... 10

5.1 Introduction ...................................................................................................................... 10

5.2 Pre-operational expenses .................................................................................................... 10

v
 EXECUTIVE SUMMARY
IDI FISH-MONGER ENTERPRISES is a registered business name that intends to venture into
Fish Farming focusing on the sale of fish to the local hotels in Kisumu to individual customers
living in Kisumu and the immediate environs. The demand for fish products has been an upward
trend in Kenya due to steady growth in the emergence of the middle class. In Kisumu city, the
demand for fish products has doubled between the periods of 2010-2015. This can be attributed to
the fact that Kisumu city is the headquarters of the Kisumu County. It is the fast growing town in
the western region. The growth in the income of the inhabitants has seen the increased demand for
fish products in relation to white meat products. However, the production of fish products has been
dominated by the emergence of Chinese fish farming business. The Chinese system has however
not applied professional practices in production and even in rearing the fish making its products
of less quality and with no taste or exaggerated taste. Consequently, local consumers have not
enjoyed reliable supply due to importation barriers and logistics challenges faced by the Chinese
business. There was therefore a need to close the gap on quantity and quality of fish products and
supply reliability within and outside Kisumu. IDI FISH-MONGER ENTERPRISES intends to
apply the basic principles of entrepreneurship to successfully supply high quality fish products to
the consumers in Kisumu all year round. IDI FISH-MONGER ENTERPRISES intends to achieve
this through ensuring continuous production of fish products all year round. More so IDI FISH-
MONGER ENTERPRISES shall embark on aggressive marketing plan to ensure it expands its
territorial markets. Both financial and non-financial resources have been mobilized but it require
IDI FISH-MONGER ENTERPRISES and additional Ksh. 240,000 to implement the plan.

vi
 SECTION ONE

EXECUTIVE SUMMARY

1.1 Business name

The business name is “Idi Fish-Monger Enterprises”. It is very important as it talks more of the
Enterprises’ type and the products that the Enterprises deals with.

1.2 Business location and address

The business is located at Dunga Beach, 5 kilometers away from Kisumu town. The location
is strategically good because, there is a high prospecting market ranging from young to the
old; in addition, there is also good road network, which is good for the smooth running of the
business. The location has high population of people who use the products and who will be
potential buyers of the products. The business will be operating under the following physical
address:

IDI FISH-MONGER ENTERPRISES

P.O BOX 67 KISUMU

Email: idifish_mongerenterprises.com

1.5 Products and services

Idi Fish-Monger Enterprises is offering both goods and services to the market. The Enterprises
will be offering quality and affordable fish products to customers.

1.6 Justification of opportunity

The business will benefit from the market opportunity due to: The ready market with few
competitors that will allow the business to set prices that can yield thus, the business will not
face price war from the competition that will force it to reduce its prices to the extent of getting
low profits or making losses. The entrepreneur skills acquired by the members of the business
are adequate for running of the business smoothly.

1
1.7 Industry

IDI FISH-MONGER ENTERPRISES falls under the agricultural industry, livestock sector.
Agriculture especially fish farming has been one among many other that are, backbone of Kenyan
economy for a number of years. In recent years, the industry has grown due to the higher demand
of fish and its products.

1.7.1 Industry characteristics

 Technology -The skills needed in the industry are cheap to acquire and so anybody who is
interested can easily learn and get the skills within a short period.

 Market segment - Fish farm is segmented into small submarkets that will be easy to serve and
therefore earn the business a lot of revenue.

 Profitability - Large scale that is obtained in this kind of business increases profit. Labor could
be skilled, semi-skilled or unskilled.

1.7.2 Industry future

The future of the industry is bright because of the increasing population making it an attractive
business to venture in. This is because with the increasing population there arises the need for
more production. The industry is growing and in the next few years, the sector will be
responsible for bringing huge investments and employment opportunities.

1.8 Business goals

Idi Fish-Monger Enterprises business goals are:

 To increase fish production through cage aquaculture.

 To maximize profits during the first year of operation through extensive marketing.

 To capture a market share of 30% in the next two years of operation. This is through
provision of high quality services to the customers.

2
1.9 Business Organization

The period covered by the business plan will be consistent with the company’s’ strategic plan. IDI
FISH-MONGER ENTERPRISES plan mainly focuses on the following areas among others
Description of the business:- This section offers background data about the company its
management and organizational competence and its Strategic plan which is summarized and is in
line with Business plan

 Marketing Plan:-This section focuses on the 5P’s of marketing, the need to obtain an
 Optimal mix to achieve results that do not only meet and exceed customer expectations but
also optimize company performance.
 Management and organisation plan:- In order to attain desirable results, compliance with
the business plan must be monitored regularly. This part deals with organization personnel,
the qualification of employees, recruitment, selection, training, motivation and reward.
This section also shows the organization structure and the chain of command.
 Production and operations plan:- The firms production and operation entails the
company product and production processes. The company facilities, production capacity,
equipment and machines give the general guide to the production and operational plan.
Production procedures and processes give the general guide on how the firm will deliver
its services. Regulation and the legal requirement affecting the business operation relates
to acquisition of business permits and license, registration with trade organization,
compliance with the environmental regulations, compliance with the statutory legal
requirement
 Financial Plan:- For the company to achieve its objectives, it must be final ancillary viable
and sustainable. The focus therefore during the plan period would be enhanced revenue
and cost reduction. Our business plan has incorporated long term investment options
Available to the company this is necessary towards achieving Financial sustainability.
Financial Planning comprises the details for source of capital, proposed capitalization,
break even analysis, the company provisional income statements, provisional balance
sheets and cash flow statement.

3
 SECTION TWO

DESCRIPTION OF THE BUSINESS

2.1 The Business Concept

IDI FISH-MONGER ENTERPRISES intends to supply its products i.e. fish products to the local
hotels in Kisumu town and to the local shop retailers in town and to individual consumers.
However, the production of fish products has been dominated by self-help groups, mainly
supported by NGOs. Consequently, local consumers have not enjoyed reliable supply and high
quantity fish products. There was therefore a need to close the gap on quantity products and
reliability in market supply. IDI FISH-MONGER ENTERPRISES intends to apply the basic
principles of entrepreneurship to successfully supply high quality fish products to the consumers
in Kisumu all year round. There was therefore a need to close the gap on quantity products and
reliability in market supply. IDI FISH-MONGER ENTERPRISES intends to apply the basic
principles of entrepreneurship to successfully supply high quality fish products to the consumers
in Kisumu all year round. We intend to achieve this through ensuring continuous production of
fish products all year round. More so IDI FISH-MONGER ENTERPRISES shall embark on
aggressive marketing plan to ensure it expands its territorial markets.

2.2 Industry Analysis

The demand for fish products has been an upward trend in Kenya due to steady growth in the
emergence of the middle class. The business rapid growth will depend on the following;

 Efficient customer service

 Increased customer demand
 Increased purchasing power of the people living in the area
 Increase in the number of hotels in the town
 Population growth in the area.
 Customer loyalty

4
 SECTION THREE

MARKETING PLAN

2.1 Introduction

Idi Fish-Monger Enterprises is located within Kisumu city and it is well served with social
amenities. The dwellers have been farmers for many years. Most of the businessmen deals with
general shops for selling different types of products and others have engaged in green grocery
shops. There also professionals such as doctors and civil servants who find their habitation in
the location.

2.2 Customers

The customers will pay for the goods thus benefit the Enterprises through generation of profits.
They will cover the production cost of the Enterprises; help the Enterprises exist through
motivating it, as the greatest motivation to business is revenue generations to give the Enterprises
a financial security. The customers of Idi Fish-Monger Enterprises are Kisumu fresh fish market,
Hotels in Kisumu and its environs, institution such as schools and hospitals and individuals who
purchase for their own use and for commercial purposes in large scale among others more over
soon there will be factory demand.

2.3 Market share

Idi Fish-Monger Enterprises expects a small market share in the beginning, which is expected
to change over time. Target population will be 5,000 people in Dunga Area. The potential
market share is determined after a survey was undertaken:

2.4 Competition

This is the scramble for the same market share with the business offering the same type of
products and services in the same segment. Idi Fish-Monger Enterprises will not face much
rivalry because the market is not well exploited by other competitors in the area. Idi Fish-
Monger Enterprises intends to:

5
  It aims at retaining and cultivating good public relations with customers.

 It will engage in active marketing and advertising its products to increase sales volume.

 Offer distribution services to large-scale buyers to facilitate easy distribution to customers.

 Maintaining a high degree of quality products through proper manufacturing and packaging
of products.

 Offering discounts to bulk buyers at rates that will vary with season, demand and regularity
of purchases

2.5 Advertising and promotion strategies

Idi Fish-Monger Enterprises will use the following means for advertising:

 Brochures – This will be printed and supplied to the potential customers, this will help
market the Co-operation without a lot of bureaucracy.
 Personal selling – The products will also be sold directly to the customers by the
members.

2.6 Sales tactics and strategies

Idi Fish-Monger Enterprises will mainly employ these while interacting with their customers.

 Direct selling - Idi Fish-Monger Enterprises will directly sell to users and customers.
 Business customer relationship - These will ensure that the already established customers
remain potential for long.
 Discounts – This shall be offered to bulk buyers and shall vary from time to time according
to demand, availability of products and amount ordered.

6
 SECTION FOUR

OPERATION AND MANAGEMENT PLAN

4.1 Introduction
Production and operation plan is a guide to creation of goods and services to meet human needs
and wants. Idi Fish-Monger Enterprises will harmonize the production facilities and the
operation strategies to achieve the most of each of them. This will help reduce wastage,
overcapacity, and the possibility of underproduction through full utilization of the business
resources.

4.1.1 Production and operation facilities and capacities

This includes the various resources for running the business. They will need to be properly
budgeted to reduce cost of production. The essential resources will be:

4.1.2 Premises
This is where the operation of Idi Fish-Monger Enterprises will take place. The one hectare
land which already has a building which is family owned. The size of the building is 20 × 21
meters and only an agreement will need to be reached for use of the premises. It will be
partitioned to allow for various operations and production activities more efficiently and
effectively.

4.1.3 Tools and Equipment’s

Idi Fish-Monger Enterprises will rely on tools and equipment is illustrated on the table below with
their cost and quantity.

4.1.4 Construction materials

For security reasons, the premises to be used by Idi Fish-Monger Enterprises will have a stone
fence. The building will be a permanent structure.

4.2 Suppliers
We have already identified a potential supplier of fish whose business is situated in Kisumu town,
Milimani estate at the Kilimani trading center. The supplier allows both cash and credit purchases.
The fish feeds shall be bought from the FEIL industry in Mamboleo, Kisumu.

7
Production (steps in production)

Recording sales and stock

balance Determining profits
Step6
and Banking the returns from
Order placement receipt sales Order placement for fish
Order processing of fish for rearing
Step5
Delivery

Receipt of the small fish

Marketing to inform the
Vaccination and placing in
customers about the Step 1
the fish pond rearing
existence of fish products Step4

in the market.
Step3 rs enter into the cashier’s
Prepare the fish for sale
office hand in the receipt
The ready processed fish Step2
order and then pay for the
are put aside for sale
Step3 product

Organization and Management Plan, The business shall have its members filled in the following
positions:

4.3 Sales and marketing officer (all directors)

The sales and marketing officer shall be responsible for the following:

 Creating awareness about the existence of the business in the market to the potential
customers by undertaking various promotional strategies.
 Carrying out marketing research to establish the market trends
 Looking for business opportunities in the market

8
4.4 Caretaker

 In charge of cleaning the premises

 Feeding and taking care of the chicken
 Security of the premise
 Purchase of the fish and equipment used in production
 Purchase of chicken feeds
 Order processing and delivery of chickens

4.5 Accounts clerk

 Reconciling accounting records

 Keeping the accounting records
 Finance sourcing
 Making investment decisions

4.6 Managing Director

 The head of the business management

 Oversee all the operations of the business

4.7 Organizational chart

Managing
Director

Sales and
Caretaker Finance Officer
Marketing
OFFICER
The general supervisor of the business shall be the director, and all the other staff members shall
be answerable to him.

9
 SECTION FIVE

FINANCIAL PLAN

5.1 Introduction

For Idi Fish-Monger Enterprises to start its operations, a total of Kshs 16,263,000 will be required
as the opening capital for the business and will be sourced as shown below. A table on pre-
operational expenses:

5.2 Pre-operational expenses

These are expenses to be incurred by the Co-operation in preparation for the commencement of its
operation. Idi Fish-Monger Enterprises will incurred the following pre-operational expenses:
ITEMS AMOUNT(Kshs)
Infrastructure 481,000
Equipment 980,000
Working capital 2,228,000
Technical Assistant 1,235,000
Training 319,000
Administrative Support 4,020,000
TOTAL 9,263,000

10