BUSINESS PLAN

ENOCK’S PLUMBING SERVICES

PO BOX: 111

BUSIA

TELL: 0703207746

PRESENTED BY: ENOCK WANJIRA MUTORO

INDEX 6161040017

INSTITUTION: THE SIGALAGALA NATIONAL POLYTECHNIC

CENTER CODE 616104

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL

FULFILMMENT FOR THE AWARD OF DIPLOMA IN WATER TECHNOLOGY

SUPERVISOR: Mr. KAMAU

EXAM SERIES: MARCH 2026

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DECLARATION
I Enock Wanjira Mutoro hereby declare that this Business Plan is my original work and has
never been presented to any examination body for award of marks.

STUDENT: Enock Wanjira Mutoro

SIGN ……………………………………………………………………………..

DATE ……………………………………………………………………………..

Submitted for approval through my project supervisor

SUPERVISOR: Mr. Kamau

SIGN …………………………………………….............................

DATE ………………………………………………………………………

ii
DEDICATION
My special thanks go to my parents for their moral and financial support.

iii
ACKNOWLEDGEMENT
I sincerely acknowledge the effort of Lecturer Mr. Kamau who helped me to come up with this
Business Plan by imparting important knowledge and skills Thank you.

And also my appreciation goes to my fellow students for their encouragement.

iv
TABLE OF CONTENT
DECLARATION.............................................................................................................................ii

DEDICATION...............................................................................................................................iii

ACKNOWLEDGEMENT..............................................................................................................iv

TABLE OF CONTENT...................................................................................................................1

CHAPTER ONE..............................................................................................................................6

1.0 BUSINESS DESCRIPTION.....................................................................................................6

1.1 BUSINESS NAME................................................................................................................6

1.2 LOCATION AND ADDRESS..............................................................................................6

1.3 PHYSICAL
LOCATION..................................................................................................................5

1.4 FORM AND TYPE OF OWNERSHIP.................................................................................7

1.5 PRODUCTS AND SERVICES.............................................................................................8

1.6JUSTIFICATION OF OPPORTUNITY.................................................................................8

1.7 INDUSTRY...........................................................................................................................8

1.8 GOALS AND OBJECTIVES................................................................................................8

1.8.1 GOALS OF THE BUSINESS.........................................................................................8

1.8.2 OBJECTIVES.................................................................................................................9

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

2.0 MARKETTING PLAN.............................................................................................................9

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

2.2 MARKETING SHARE........................................................................................................10

2.3 COMPETITION...................................................................................................................11

2.4 PROMOTION AND ADVERTISEMENT..........................................................................12

2.4.1 PROMOTION...............................................................................................................12

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 2.4.2 ADVERTISEMENT.....................................................................................................13

2.5 PRICING STRATEGY........................................................................................................13

2.6 SALES TACTICS................................................................................................................14

2.7 DISTRIBUTION STRATEGY............................................................................................14

CHAPTER THREE.......................................................................................................................15

3.0 ORGANIZATION AND MANAGEMENT PLAN................................................................15

3.1 ORGANIZATION STRUCTURE.......................................................................................15

3.2 MANAGEMENT TEAM....................................................................................................16

3.2.1 MANAGER...................................................................................................................16

3.2.2 SUPERVISOR...............................................................................................................17

3.3 RECRUITMENT, TRAINING AND PROMOTION.........................................................19

3.3.1 RECRUITMENT...........................................................................................................19

3.3.2 TRAINING....................................................................................................................19

3.4.3 PROMOTION...............................................................................................................20

3.5 REMUNERATION AND INCENTIVE..............................................................................21

3.5.1 REMUNERATION.......................................................................................................21

3.5.2 INCENTIVE..................................................................................................................22

3.6 LICENCE, PERMIT AND BY- LAW................................................................................22

3.6.1 LICENCE......................................................................................................................22

3.6.2 BY-LAWS.....................................................................................................................23

3.7 THE SUPPORT SERVICES...............................................................................................23

CHAPTER FOUR.........................................................................................................................25

4.0 PRODUCTION/ OPERATION PLAN...................................................................................25

4.1 PRODUCTION FACILITIES AND CAPACITIES............................................................25

4.1.2 MAINTENANCE PLAN..............................................................................................26

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 4.2 FIRM LAYOUT..................................................................................................................27

4.3 PRODUCTION STRATEGY..............................................................................................29

4.4 PRODUCTION PROCESS..................................................................................................29

4.5 PRODUCTION COST.........................................................................................................29

4.5.1 LABOUR COST...........................................................................................................29

4.5.2 RAW MATERIALS COST...........................................................................................30

4.5.3 INDIRECT COST.........................................................................................................30

4.5.4 OVERHEADS...............................................................................................................31

4.6 FACTORS AFFECTING OPERATION.............................................................................31

CHAPTER FIVE...........................................................................................................................32

5.0 FINANCIAL PLAN................................................................................................................32

5.1 DESIRED CAPITALIZATION...........................................................................................32

5.2 PRE- OPERATIONAL CAPITAL......................................................................................32

5.3 WORKING CAPITAL........................................................................................................33

5.4 CAH FLOW.........................................................................................................................36

5.3.1 CASH-FLOW PROJECTION FOR THE YEAR ENDING 31ST DECEMBER 2025. 36

5.3.2 CASH-FLOW PROJECTION FOR THE YEAR ENDING 31ST DECEMBER 2026. 37

5.3.3 CASH-FLOW PROJECTION FOR THE YEAR ENDING 31ST DECEMBER 2027. 38

5.5 BALANCE SHEET.................................................................................................................41

5.6 TRADING, PROFIT, AND LOSS A/C (INCOME STATEMENT)...................................42

5.7 BREAK EVEN POINT........................................................................................................43

5.8 PROFITABILITY................................................................................................................44

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EXECUTIVE SUMMARY
BUSINESS DESCRIPTION

This chapter contains the name of the proposed business which will be Enock’s Plumbing
services. It also shows the location and address of the business. The location of the business will
be in Busia County along Busia Kisumu highway Itoya building first floor store number 12,
opposite equity bank. The business will operate under the following address.

ENOCK'S PLUMBING SERVICES

PO BOX: 111

BUSIA

EMAIL:enockmutoro81@[Link]

TEL: 0703207746

Also this chapter entails the business form of ownership which will be a sole proprietorship. The
services offered as well as justification of opportunity will be explained [Link] addition it also
outline the industry, goals and objectives of the proposed business business. Lastly it expounds
the entry and growth strategy of the proposed business.

MARKETING PLAN

This chapter explain how the owner of the business will be able to reach the [Link] section
of the business plan gives an overview of the customers, market share and competition of the
business, in addition it highlights method of advertisement and promotion in the business. It also
expounds on sales tactics, pricing strategy and lastly the distribution strategy.

MANAGEMENT AND ORGANISATION PLAN

This chapter consist of organization structure, as well as the management team which will
include manager and supervisor, in addition it also contain recruitment, training and promotion
of employees. Remuneration, incentives, will also be discussed here. Lastly it consist of license

4
permits and bylaws as well as the support services that will ensure the business meets its goals
and objectives.

PODUCTION /OPERATIONAL PLAN

This chapter outlines the production facilities and their capacity as well as the cost. In addition it
shows the layout of the proposed business and the production strategy that will be put in use,
furthermore it outlines direct, indirect and the total production cost lastly it highlights the internal
and external factors.

FINANICIAL PLAN

The chapter gives an overview of businesses financial situation and a forward looking projection
for growth. The chapter outlines the desired capitalization, pre operational capital, working
capital, cash flow projections and balance sheets. In addition to that, it also outlines the income
statements, break even analyses and lastly the profitability ratios.

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CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1 BUSINESS NAME
The name of the business will be ENOCK'S PLUMBING SERVICES.

1.2 LOCATION AND ADDRESS

The business will be located in Busia County, Busia town along Kisumu Busia
Highway, Itoya building, first floor, store number 12, opposite Equity bank.
The area has good conditioned roads which allow easy transport of goods and
services without any challenges.
Good security since there is a nearby Korinda Police station which is 7km from my
place of work.
There are many industries around the area hence availability of raw materials.
The business will be using the following address.
ENOCK'S PLUMBING SERVICES
P.O BOX 111
BUSIA
MOBILE: 0703207746

1.3 PHYSICAL LOCATION MAP

FARM VIEW

BUSIA

6
 ROUND ABOUT

TO BUSIA

ACHIENG’S PLUMBING
EQUITY BANK
SERVICES

KISUMU – BUSIA HIGHWAY

KISUMU- BKISUMUUSIA HIGHWAY

1.4 FORM AND TYPE OF OWNERSHIP

Form of Business

The business will be a sole proprietorship model where duty allocation and decision making are
done by the owner. Hence to enjoy profit.

It’s easy to start, hence require less capital to start.

The business owner will also undertake all loses risks involved in the business.

Type of Business

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Enock’s Plumbing Services will be a start-up type of business, because the business has never
been operated before and will be at its first stages of operation.

1.5 PRODUCTS AND SERVICES

This business will managerly deal with repair, fixing and installation of the latest and most
competent water supply, irrigation, drainage and fighting system.

Will also offer free consultation on suitable materials on which customers may use.

1.5 JUSTIFICATION OF OPPORTUNITY

The owner chose this business opportunity since it’s marketable.

It also helps one to utilize skills.

Due to high demand of plumbing services.

1.6 INDUSTRY
Enock's Plumbing Services is a trusted and most reliable dedicated to delivering high-quality
services to residential and commercial clients with a team of skilled and licensed plumbers.

I’m proud on providing efficient solutions to meet a wide range of plumbing needs.

Due to ever growing technology in the building industry, I will be able to provide latest and most
competent services to my customers.

1.7 GOALS AND OBJECTIVES

1.7.1 GOALS OF THE BUSINES Enock'’s Plumbing Services will achieve the following goals
in a period of 2 years:
 To open othe braches in the country
 To compete with International companies
 To expand the business
 To be plumbing leaders in Busia County

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1.7.2 OBJECTIVES
Enock’s Plumbing Services will achieve the following objectives:

 To create employment
 To utilize skills
 To maximize profit

CHAPTER TWO

2.0 MARKETTING PLAN

For market to exist there must be a seller and buyers to use services in the business.

2.1 CUSTOMERS
A customer is a person who buys goods or services from a shop or a business.

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 The main customers will be individual customers, institutions, hospitals, Churches
around the area and passers-by.

i. Individual customers- These are customers who are around the environment of the
business and most of them purchase services.
ii. Institutional customers- These comprise pf large institutes which award tenders to
Enock’s Plumbing Services which include:
a) KITI College- For repair of broken leaking pipes around the
school, unblocking blockages in drainage systems, installation of
latest and most competent sanitary appliances.
b) Jowie’s Farm- The farm owner will be one of our customers as the
farm is located near Enock's Plumbing Services hence I will help
to install the latest irrigation systems in the farm.
c) Churches- Churches may require the installation of water in their
toilets, shower and wash hand basin.

What customers look for in the business

Below are what customers look for in the business:

i. Good communication- It’s an essential skill for providing positive experience to

customers. By being aware of verbal and non-verbal communication techniques, you can
make sure that the customers feel heard and respected.
ii. Price- The owner of the business has to ensure that the business price is fair to all
customers.
iii. Empathy- The business owner should have the capacity to affirm a customer’s feelings
and indicate that they can understand customers’ frustration or pain even if the problem
was out of control.
iv. Accessibility- Customers need to be able to access your services and other support team.

2.2 MARKETING SHARE

Market share represent the percentage a market’s total sales that is earned by a
company over a specified time of period.

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 Below is how the market is distributed among Enock’s Plumbing Services:

Kamau Plumbing Services

1580/4000 * 100
= 39.5%
Joy Plumbing Services
1650/4000 * 100
=41.25%

Enock 's Plumbing Services

880/4000 * 100
=19.25%

Sales

Kamau Plumbing Services Joy Plumbing Services

Achieng’s Plumbing Services

2.3 COMPETITION
Competitors include those businesses dealing with similar products and services and
competing for the same customers.
The owner applied SWOT analysis method to analyze competitors’ weaknesses and
strengths. Also to identify opportunities and threats.

COMPETITOR STRENGTHS WEAKNESSES

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 Kamau Plumbing A lot of customers have Open late in the morning
Services known the business and close early in the
evening.
Joy Plumbing Services Offer consultation to Services are done slow to
customers at a cheap price. customers.
Enock's ’s Plumbing i. Has a degree in A lot of people have not
Services water technology known the business.
ii. Free consultation to
customers
iii. Done a lot of
adavertisements
OPPORTUNITIES THREATS
i. Expansion of online sales i. Competition from big
ii. Create team to study new trends services companies
iii. Employ more plumbers ii. Government policies
iii. Emergency of high
competitor

2.4 PROMOTION AND ADVERTISEMENT

2.4.1 PROMOTION
Promotion is the publicizing of products and services, organization or venture so
as to increase sales or public awareness.

Enock ’s Plumbing Services will use the following to promote its services:
i. Discounts shall be provided to customers who will require large scale
services.
ii. The services that will require door to door services the business on has a
vehicle hence will be able to provide free transportation.
iii. Offering free gift to consumers as a way of encouraging them to use their
own services.

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 Promotions are effective in various ways:

i. They attract customers

ii. They encourage customers to use proper services
iii. They promote loyalty to their customers.

2.4.2 ADVERTISEMENT
Advertisement is a notice or announcement in a public media to promote a
service.

a) Stickers
There will be printed stickers about Sharon's Plumbing Services and will
be posted on public places, big building around the town.

b) Electronic Media
The business will use electronic media sources familiar to general public
to do online marketing and advertisements. The business will have social
media handles or business accounts on all social media platforms e.g.
Instagram, WhatsApp, Tiktok and Facebook.
c) Print Media
Brochures- This is a sales and marketing too used by brands to
communicate with their target audience. They contain information about
the business such as business name, location, services, offered and
promotion available.

2.5 PRICING STRATEGY

A pricing strategy is an approach businesses use to determine what prices they should
charge for their products and services.
a) Production- The business owner should rate the time, skills and amount of work
to be done so as to come up with final prices.
b) Prevailing market price- The owner of the business should be able to know the
market price so as to go hand in hand with other businesses’ services in order to
have a common price.

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 c) Government Policies- The business owner should be able to purchase the services
per the government orders.
d) Demand- When the demand is high, the prices of services increase, hence the
business owner should be able to know the level of market demand.

2.6 SALES TACTICS

Enock's Plumbing Services will be using the following sales tactics:
i. Direct selling
This is where you make money by selling services to consumers when you
don’t have a shop.

ii. Online selling

This is a process of selling services over the internet across social media
platforms without requiring customers to visit the business in person to
complete the transaction.
iii. Use of Agents
Agents are individuals or organizations that will sell products on your behalf,
for example, JUMIA, GLOVE. They offer a simple, low cost introduction to a
market you will be able to retain control over pricing and marketing.
iv. Sales Representatives
The business will employ qualified sales representatives who will be
responsible for communicating the benefit of businesses, services in order to
drive sales.

2.7 DISTRIBUTION STRATEGY

To meet competitors that exist in the market and be capable to survive its stiffness,
the business management will ensure that the services are well distributed to
customers.

Mode of Transportation

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 The business will use a motor cycle and a vehicle to deliver services to their
customers.

Producer Distributer Retailer

CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 ORGANIZATION STRUCTURE
An organizational structure is defined as how activities such as task allocation,
coordination and supervision are directed towards the achievement of organizational
aim.
Enock ’s Plumbing Services organization structure will be as follows:

Manager

15
Supervisor
3.2 MANAGEMENT TEAM
The management team include the Manager and the Supervisor.

3.2.1 MANAGER
A manager is a person responsible for controlling or administering an
organization or group of staff.

Duties and Responsibilities

 He or she will oversee the overall performance of the business.

Qualifications
a) Aged between 24-40 years
b) 2 years of work experience in the field
c) Diploma in Building and Diploma in Building and construction
d) Salary of Ksh. 70,000

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 3.2.2 SUPERVISOR
Duties and Responsibilities
 Managing workflow
 Training new hires
 Creating and managing team schedules
 Reporting to manager in case there is a related issue
 Helping to resolve employee issues and duties
 Identity and applying career advancement opportunities

Qualification

 Should have complete Diploma in programs in business or

Administration office
 Aged between 22 to 35 years
 1 year of working experience
 Salary will be Ksh. 45,000

OTHER PERSONNEL

1 DUTIES QUALIFICATION SALARY

PERSONNE
L
Secretary  Receive visitors for the  Should have Ksh.
manager Diploma in 40,000
 Maintaining diaries and Secretarial
arranging appointment  Aged between
 Prioritizing and servicing 20 to 30 years
meeting  Work experience
 Answering calls, taking of 2 years
messages and handling
correspondence

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Cashier  Will be responsible of cash as  Should have Ksh.
all payments and purchases Diploma in 40,000
are transacted through them Accounting
 Maintain book of accounts  Computer
 Make or receive payment of literate
the business  2 years of
experience
Driver  Plan and follow the best route  Should have a Ksh.
to ensure timely delivery of form IV 25,000
services certificate and
 Ensure that all necessary grade minimum
paperwork and of D+ or its
documentation are in order equivalent
before transporting  Have driving
 Adhere to traffic laws and license classes
safety regulation to avoid B, C, E
accidents  Work experience
of 2 years
 Aged between
24 to 38 years
Fitter  Reviewing plumbing system  Should have Ksh.
blueprints certificate in 20,000
 Fixing pipe and plumbing plumbing
systems  Aged between
 Ensuring pipes meet the 20 to 37 years
proper specifications  Work experience
of 2 years
Security  Maintain security  Diploma in Ksh.
 Guard enterprise property criminology and 30,000
security
management or

18
 related field
 Aged between
25 to 35 years
 Work experience
of 1 year

3.3 RECRUITMENT, TRAINING AND PROMOTION

3.3.1 RECRUITMENT
Recruitment is the overall process of identity, sourcing, shortlisting, and
interviewing candidates for jobs within an organization.

Recruitment is done in the following ways

a) Identifying the gaps

b) The business owner advertises the gap through posters in town, in
crusades and social media e.g. WhatsApp, Facebook, Twitter,
Instagram and other social media platforms
c) Searching for qualified candidates
d) Conducting interviews

Application

Applications will be sent via Digital platforms e.g. through posters in case
there are vacancies.

3.3.2 TRAINING
Training is the action of teaching a person a particular skill.

Enock ’s plumbing Services will use the following training model to educate new members in
the field as follows:

a) Orientation
Is an introduction so as to guide one in adjusting to new surroundings
or employment. The new employment. The new employees will be
received two days of orientation.

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 b) On-the job Training
When new employees learn applicable skills for their role while in the
workshop or workplace.
c) Off-job Training
This is learning which is undertaken outside of day-to-day work duties
and leads towards the achievement of the apprenticeship, for example
in the workshop.
d) Instructor-lead training
This training requires a teacher to guide participants throughout the
session.

3.4.3 PROMOTION
It’s the elevation of an employee from a lower position to a higher position.

The following is the mode of promotion that will be used in Enocks’s Plumbing
Services.

a) Years of Service
Workers who have been working for so many years with me will be promoted as
a way of encouraging for them.
b) Loyalty
The workers who will be loyal and usually do their work according will be
promoted to their working levels as a way of encouraging them in case there is
job vacancy.
c) Age
The workers who have a wide range of age between 30 to 40 years will be
promoted to other levels in case there are vacancies.
d) Academic Achievements
Employees with higher training education and skills will have a higher chance of
being promoted to other levels.
e) Work Experience

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 The employees who have many years of work experience will be promoted to
other level due to their abilities and more skills.

3.5 REMUNERATION AND INCENTIVE

3.5.1 REMUNERATION
Remuneration is money paid for work or a service i.e. extra work
The employees are paid to their position and duties taken by respective in area of
individuals along with salary.

Purposes of Remuneration in Sharon's Plumbing Services

i. To recognize and motivate employees
ii. It’s a main way that organizations can attract employees
iii. As a way to retain talented employees
iv. Providing competitive and fair compensation packages is a great way to show
your team that they are valued.

PERSONNE NO. OF BASIC MONTHLY ALLOWANCE TOTAL

L EMPLOYEES PAY PER
ANNUM
Manager 1 53,000 Medical- 10,000 70,000
Housing- 7,000
Cashier 1 30,000 Medical- 8,000 40,000
Meal- 2,000
Secretary 1 33,000 Medical- 4,000 40,000
Meal- 2,000
Security 1 30,000 Medical- 2,500 30,000
Meal-2,000
Driver 1 18,500 Medical- 5,000 25,000
Meal 1,500
Fitter 3 16,000 Medical- 3,000 20,000
Meal- 1,000

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 Supervisor 1 36,000 Medical- 4,000 45,000
Meal- 5,000
Total 270,000

3.5.2 INCENTIVE
Incentive is a thing that motivates or encourages someone to do something

Incentive are urgent way

I. To ensure that your employees stay

II. Motivated to do their job to their best in ability

Method uses to incentive works BY;

i. Giving them more allowances

ii. Giving them gifts
iii. Taking them for team building to enable them to acquire more skills and also to the
nature

3.6 LICENCE, PERMIT AND BY- LAW

3.6.1 LICENCE
A license is a permit from an authority to own or use a particular thing or to carry out a trade.

Enock’s plumbing services will use a trade license to carry out the business.

Enock’s plumbing services will obtain its license from Busia County. It shall be received on
yearly basis.

License will be obtained from the County Government of Busia.

The amount payable on obtaining is ksh 20,000 and renewable of charges of ksh 1000.

PERMIT

A permit is a government issued authorization to operate a business within that government’s

jurisdiction and in compliance with its laws.

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Permit certificate will ensure sales of goods that are fit consumption will be obtained.

The approval permit will cost 5,000 per year.

The permit in Enock’s Plumbing Services will be issued by the National Construction Authority
body (NCA).

3.6.2 BY-LAWS
By-laws are regulations made by a local authority or corporation.

By-laws are important hence essential in helping an organization map out its purpose and the
practical day-to-day details of how it will go about its business e.g. employment act, registration
of sole proprietor, health act.

3.7 THE SUPPORT SERVICES

a) Banking Services
The business will be banking its daily sales amount at Commercial Bank
where its account number and address used will be as follows:
KCB BANK
BUSIA BRANCH
P.O. BOX 4033-24000
ACCOUNT NO. 112348810

The purposes of using these banking services are as follows:

a) Your money is safe
b) In order to be able to do online purchases ease and peace
c) To save the money
d) To be able to borrow from them
e) To be able to access other products from the bank

23
 f) It’s easy to check out
g) The money is protected from error and fraud

b) Insurance services
Insurance
Helps to protect the properties or services from potential harm.

Enock's Plumbing Services will use the Britam Insurance Cover, hence;

i. It assures that your activities adhere to a set standards.

ii. They take cover in case there is a thief or natural calamities, e.g. fire
outbreak
iii. It gives your business credibility
iv. Protect the customers

c) Medical Services
Employees who will need medical attention shall be paid to attend at
provincial General Hospital.
d) Electricity Services
The business will require electricity for lightning and running other operations
in the business.
The services will be provided by the Kenya power and other lightning
company which is responsible for electricity transmission and supply to the
places.

e) Water Services
Water will be required within the business for cleaning, drinking, and
sanitation services.
This services will be provided by the Busia Water and Sanitation Company.

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CHAPTER FOUR

4.0 PRODUCTION/ OPERATION PLAN

4.1 PRODUCTION FACILITIES AND CAPACITIES
The facilities and equipment that are required by the business set-up are as follows:

PARTICULARIES QUANTITY UNIT COST TOTAL COST

Computers 5 50,000 250,000
Funs 4 30,000 120,000
Vehicle 1 500,000 500,000
Office 1 100,000 100,000
Generator 1 32,000 32,000
Telephone 5 24,000 120,000
Motorcycle 1 185,000 185,000
25
 Chairs 10 650 6,500
Benches 4 150 600
Tables 7 300 2,100
Reception desk 1 5,000 5,000
Total 1,316,200

4.1.2 MAINTENANCE PLAN

The business always takes good care of their facilities to make sure that the business is running
smoothly and avoid delays.

The following are some of maintenance plans;

a) Preventive Maintenance
Scheduled maintenance tasks, perfumed at regular intervals to prevent equipment failure
and maintain its operation.
b) Condition-based maintenance
Maintenance activities are triggered by actual condition of equipment as measured by
various sensors and monitoring system.
c) Corrective Maintenance
This maintenance involves fixing equipment or systems after they have failed or
malfunction.
d) Total Productive Maintenance
Involves empowering operators to participate in maintenance activities and aims to
maximize the overall effectiveness of equipment and process.

4.2 FIRM LAYOUT

26
 CAR PARK

EXIT

ENOCK'S PLUMBING SERVICES

MAIN ROAD

ENTRY TO

ENOCK'S PLUMBING SERVICES

27
OFFICE LAYOUT

RECEPTION

MANAGER’S OFFICE ACCOUNTANT’S OFFICE

WASHROOM

28
4.3 PRODUCTION STRATEGY
It’s basically the plan to produce the services to meet the customer’s requirements.

Order from Installation

Costing
Customer

4.4 PRODUCTION PROCESS

Order from customers- Customers place the order to Enock's plumbing Services

Costing- The business owner gives the customers the prices required for the services

Installation- The installation is done where the customer has already paid the services.
The services are done where they needs.

4.5 PRODUCTION COST

The production cost of Enock’s Plumbing Services will be,
Ksh. 270,000 + 426,000 =
Total Ksh. 696,000

4.5.1 LABOUR COST

The labour required by the business on monthly basis shall be seven (7)
personnel that should be given a total salary of Ksh. 310,000 as follows;

PERSONNEL MEMBER TOTAL MONTHLY EARNING

Manager 1 70,000
Supervisor 1 45,000
Cashier 1 40,000
Secretary 1 40,000
Driver 1 25,000

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 Fitter 3 20,000
Security 1 30,000
Total 270,000

4.5.2 RAW MATERIALS COST

PARTICULAR NUMBER UNIT COST TOTAL COST
Pipe range 2 2,500 5,000
Hacksaw 3 450 1,350
Stock and die 1 5,000 5,000
Pipe ½ 10 150 1,500
Taps 20 150 3,000
Tape measure 2 150 300
Pipe 1/4 5 100 500
WBC(water 3 1,700 3,200
closet)
Stationaries 3 1,00 3,000
Total 20,150

4.5.3 INDIRECT COST

PARTICULAR COST
Telephone 5,000
Transport 15,000
Miscellaneous 10,000
Total 30,000

4.5.4 OVERHEADS
PARTICULAR COST
Water 7,000
Electricity 13,000
Rent 15,000

30
 Advertisement 20,000
Postage 10,000
Stationary 3,000
Security 5,000
Total 126,000

Total Cost= Labour + Production Services

270,000 + 156,000
= Ksh. 426,000

4.6 FACTORS AFFECTING OPERATION

a) Safe Regulation
Is a principle or regulation governing actions, procedures or devices intended to
lower the occurrence or risk of injury, loss and danger to persons, property or the
environment.
i. Area should be clean
ii. Wear protective clothes
iii. Proper use of tools and equipment
iv. One should observe regulations of the working place

b) Health Regulation
i. Always wear protective clothes
ii. The working area should be clean
iii. The working area should be well ventilated

31
CHAPTER FIVE

5.0 FINANCIAL PLAN

This is a comprehensive picture of your current finances, your financial goals and strategies
set to achieve those goals. Good financial cash flow, savings, debt, investments, Insurance
and any other element of your financial life.

Objectives of Financial Plan

 Determining the capital structure for the business
 Estimating the capital required to start a business
 Managing income and expenses to achieve financial goals
 Building savings and investments

5.1 DESIRED CAPITALIZATION

Personal saving 200,000
Bank loan 300,000
Family and friends 100,000
Total 600,000

5.2 PRE- OPERATIONAL CAPITAL

Refers to the costs that a business incurred before it begins its regular operations.

PARTICULAR COST
Business permit 15,000
License 8,500
Insurance 20,00
Rent and Deposit 30,000

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 Furniture 15,000
Advertisement 100,000
Vehicle 500,000
Stationaries 3,000
Generators 32,000
Total 723,000

5.3 WORKING CAPITAL

Refers to the capital of a business which is used in its day-to-day operations.

Current Assets

Cash at hand 200,000

Cash at the bank 300,000
Debtors 150,000
Discount 100,000
Total 700,000

Current Liabilities

Unpaid Bills 90,000

Creditors 300,000
Discount Allowed 50,000
Total 440,000

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34
 5.4 CAH FLOW
5.3.1 CASH-FLOW PROJECTION FOR THE YEAR ENDING 31ST DECEMBER 2025
PARTICULAR JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
CASH IN FLOW
Bal B/F …… 1190300 1737000 2138530 2558070 3039695 343317 376767 339325 387505 436305 483605 3433274
5 5 0 0 0 0 5
Sales 900000 850000 700000 750000 800000 700000 650000 720000 810000 830000 800000 780000
Loan 600000 ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. 600000

Discount received 50000 40000 45000 30000 40000 35000 45000 20000 25000 20000 27000 30000 407000
Debtors 25000 30000 35000 20000 20000 32000 26000 27000 25000 19000 23000 15000 297000
Total 1575000 2110300 2517000 2938530 3418070 3806695 415417 376700 425325 474405 521395 566105 4415907
5 0 0 0 0 0 0
CASH
OUTFLOW
Rent 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000
Salaries 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 3240000
Insurance 36000 36000
Advertisement 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 110000
License & permit 8500 8500
Loan repay 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 600000
Loan interest 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 90000
Stationaries 5000 5000 5000 5000 5000 5000 30000

35
Repair & 7000 7000 7000 7000 28000
maintenance
Water 500 300 370 410 425 520 500 400 300 450 400 500 5075
Electricity 1200 1000 800 800 750 700 900 950 1000 650 700 800 10,250
Telephone 2000 1500 1800 1750 1700 1800 1800 1900 1400 1500 1300 1600 20050
Miscellaneous 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000
total 384700 373300 378470 380460 378375 373520 386500 373750 378200 380100 377900 373400 4538675
5.3.2 CASH-FLOW PROJECTION FOR THE YEAR ENDING 31ST DECEMBER 2026
PARTICULAR JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
CASH IN FLOW
Bal B/F 3962039 3941619 3980722 4006382 4025902 4068022 411196 414847 415184 415644 420822 422954 1237527
5 5 5 5 5 5 25 75 25 25 25 47 762
Sales 800000 700000 600000 500000 800000 750000 700000 600000 790000 800000 600000 700000 7629000
Loan 600000 600000
Discount received 30000 38000 20000 45000 40000 30000 25000 19000 25000 17000 30000 20000 368000
Debtors 20000 17000 15000 30000 20000 25000 20000 18000 27000 20000 25000 30000 267000
Total 3981039 4017119 4044222 4063882 4105902 4148552 418696 415521 415999 423984 426732 430454 1245107
5 5 5 5 5 25 25 775 375 25 25 47 764
CASH
OUTFLOW
Rent 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000
Salaries 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 3240000

36
Insurance 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
Advertisement 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 100000
License & permit 8500 8500
Loan repay 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 600000
Loan interest 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 90000
Stationaries 5000 5000 5000 5000 5000 5000 30000
Repair & 7000 7000 7000 7000 28000
maintenance
Water 500 470 750 600 500 450 400 500 500 500 680 700 6550
Electricity 1000 1200 650 500 900 1000 750 800 650 700 600 800 9550
Telephone 1700 1800 1500 1200 1900 1300 1200 1600 1300 1500 1000 1200 17200
Miscellaneous 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000
total 394200 363970 378400 379800 378800 365600 384850 373400 377950 380200 377780 366450 4181400

5.3.3 CASH-FLOW PROJECTION FOR THE YEAR ENDING 31ST DECEMBER 2027
PARTICULAR JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
CASH IN FLOW
Bal B/F 1240926 1239924 1239657 1210919 1211085 1211143 121156 121183 121200 121246 121288 121259 1233228
364 764 764 264 464 164 1164 0164 3764 9964 33964 0064 889
Sales 800000 600000 700000 500000 400000 750000 600000 500000 800000 700000 600000 800000 7750000
Loan 600000 600000
Discount received 30000 20000 22000 20000 27000 15000 25000 30000 20000 20000 20000 27000 276000

37
Debtors 15000 10000 18000 16000 10000 17000 20000 18000 10000 20000 10000 17000 181000
Total 1239491 1239294 1238917 1211455 1211522 1219251 121206 121237 121283 121301 121346 121343 1135722
364 764 764 264 464 64 164 8164 3764 4964 33964 40064 7889
CASH
OUTFLOW
Rent 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000
Salaries 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 270000 3240000
Insurance 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
Advertisement 10000 10000 10000 10000 40000
License & permit 8500 8500
Loan repay 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 600000
Loan interest 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 90000
Stationaries 5000 5000 5000 5000 5000 5000 30000
Repair & 7000 7000 7000 7000 28000
maintenance
Water 700 500 800 900 800 700 400 600 500 800 700 600 8000
Electricity 800 500 1000 400 1200 1100 1200 1300 1000 800 700 500 10,500
Telephone 1500 1500 1200 1000 1800 1700 1500 2000 1800 1900 2000 1700 19600
Miscellaneous 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000
total 394000 363000 379500 369800 379300 364000 376000 374400 368800 371000 373900 363300 3226300

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5.5 BALANCE SHEET
It is a statement of the assets, liabilities, and capital of the business or other
organization at a particular point in time, detailing the balance of income

Enock's Plumbing Services as at 31st December 2024

Fixed Assets

Vehicle 500,000 490,000

Less depreciation 10,000
Generator 32,000 31,360
Less depreciation 640
Computers 50000 49000
Less depreciation 1000
Furniture 14,200 13916
Less depreciation 284

Current Assets

Cash at hand 200,000

Cash at Bank 300,000
Stock 400,000
Debtor 150,000
Discount received 100,000
Total 1,345,000

Fixed Assets + Current Assets =

584,276 + 1,345,000
= 1,929,276

Long Term Liability

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 Loan 600,000
Owner equity 829,276
Total 1,429,276

Short Term Liability

Creditors 300,000
Unpaid bills 90,000
Discount allowed 50,000
Bank overdraft 10,000
Total 500,000
600,000 + 829,276 + 500,000
=1,929,276

5.6 TRADING, PROFIT, AND LOSS A/C (INCOME STATEMENT)

Enock 's Plumbing Services Statement for End Year

Sales 34,332,745
Purchases 700,000
Opening stock 500,000
Goods available 1,200,000

Less closing stock 50,000

Cost of goods sold 1,150,000

Gross Profit 35, 482,745

Expenses

Rent 180,000

40
Salaries 3,240.000
Insurance 36,000
Advertisement and promotion 110,000
License and permit 8,500
Loan 600,000
Purchases 700,000
Loan interests 90,000
Stationaries 30,000
Repair and maintenance 28,000
Water 5,075
Electricity 10,250
Telephone 20,050
Miscellaneous 180,000
Discount allowed 50,000

Total 5,287,875

Net profit 35,482,745 - 5,287,875

30,194,870

Net profit after tax 10% 10/100* 30,194,870

3,019,487

30,194,870
- 3,019,487
=27,175,383

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5.7 BREAK EVEN POINT
This is the quantity of services that must be offered to cover the total expenses of the
first year operation. This helps the owner to start expecting profit.

Break Even Point

Fixed Expenses

Rent expenses - 180,000

Salaries - 3,240,000
Loan repayment - 600,000
Miscellaneous - 180,000
License and permits - 8,500
Insurance - 36,000
Loan interest 90,000
Total - 4,334,500

Variable expenses

Advertisement and promotion - 110,000

Stationaries - 30,000
Repair and Maintenance - 28,000
Water - 5,075
Electricity - 10,250
Telephone - 20,050
Discount allowed - 50,000
Purchases - 700,000
Total - 953,375

Sales – Total Variable

= 34,332,745-953,337

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 = 33,379,370

5.8 PROFITABILITY
I. PROFITABILITY RATIOS

35,482,745/ 34,332,745* 100

=103.3%

[Link] PROFIT RATIO

30,194,870/ 34,332,745* 100
=88%

III. RETURN ON OWNER’S EQUITY (CAPITAL)

12,934,276/34,332,745 * 100
=37%

APPENDIX I

LOGO

APPENDIX II

LOCATION

APPENDIX III

ORGANIZATION STRUCTURE

REFERENCE

Internet Society (2002), Global Internet Report

Retrieved from (URL)

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