CHAPTER ONE

1.0 THE BUSINESS DESCRIPTION

This shall be a small business that will be offering Electrical services and Electrical products.
Electrical services that will be provided by proposed business will offer the following service,
residential installations, office installation and repairing electrical systems. Electrical goods that
will be sold are like tranking electrical cables and equipment. will be dealing specifically
with the sale of electrical materials, tools and equipment’s and will be offering different
services like repair of electrical equipment, tools, or gadgets, winding of motors etc. Proposed
business will enter the market through offering discounts, local products at affordable prices. The
goal of the proposed business is to be recognized for better quality goods and services and extend
small business branches to other paces.

1.1 THE BUSINESS NAME

The name of the proposed business is Goldlightes Electrical Services. The name Goldlightes it
clearly states the services rendered by the business its uniqueness and clearly for the customers
to relate for services rendered.

1.2 TYPE OF THE BUSINESS

This business is to engage much in the following
(a) Selling of electrical materials like cables, switches insulators, lighting systems etc., electrical
tools like phase testers, electrical toolboxes and any other electrical related tools or equipment.
(b) Repairing of faulty electrical gadgets in different capacitors.
(c) Motor winding, rewinding, dismantling, repair and sell the rewinded motors. Leasing out
services like lighting system, music stereo type. Microphone etc. in special occasions like
funeral, political meetings, weddings etc.
1.3 CHOICE OF BUSINESS LOCATION
The proposed business will be located at Kamakis shopping Centre opposite Total petrol station
which is in Ruiru area. The place is experiencing both the infrastructure and business
development. It is also at a marketplace hence it will attract many people as customers. there is
full security as there is a police station. This location as it is growing due to the availability of
electricity and presence of Thika superhighway which pass through the area, water is available
and communication network.
Raw materials of the business will come from the Powermax Electrical Limited which is in
Nairobi, one-hour drive from the industry to Kamakis shopping Centre.
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1.4 PROPOSED FORM OF OWNERSHIP
The form of ownership I intend to apply is sole proprietorship. The why I choose this form of
ownership is because it is easy to make easy and quick decision. The other reason is that less
legal formalities are required. It will be easy to register the business as it will be registered under
my name and no second party shall take part in the registration. The business will be registered
on January 2024 and the operations will begin on May 2024.

1.5 JUSTIFYING THE NEED FOR THE PROPOSED BUSINESS VENTURE

The assurance that the success of this business will be profound because of the following,
(a) Availability of knowledge and skills required to run any business which was got through
three years in college, also from the experience got during attachment and lastly the
entrepreneurial skills.
(b) The business will be situated in an area reachable many people enhancing the business to
grow. Also, transportation of materials and workers will be easy as the business will be near the
road.
(c) Research will be done and more consultations on how to grow in business
1.6 THE PRODUCT
The enterprise will provide the following products switches, outlet sockets, Tranking,
Distribution boards, Electrical cables, Meter boxes, Circuit breakers, Patrice’s, Bulbs, Metes,
Multimeter, Fuses, Motors, Wire, Bulb holders, Lamp lights, batteries.
The products offered will bear the following features white-green and black-red colors packaging
of the product will be gray cartons bearing the logo of the business, name of the item inside. The
products will meet customer needs in terms of comfort, flexibility. the products will also be
affordable to most of our customers and will be much cheaper than other related products in the
market. Our products will have superior quality over those offered by the competition.
1.7 INDUSTRY
This business will be both a commercial and service industry as it will base on purchasing
materials, tools equipment etc. to sell them to customers as well as doing services like repairing,
rewarding of motors etc. This industry is suitable because transportation of these materials will
be easy due to the access of road, there is market as the business will be in an area where
there is less competition, availability of skilled personnel and tools / equipment’s required hence
quality products and services offered

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1.8.0 ENTRY STRATEGY
The business will employ many tactics and ways of penetrating the market e.g.,
(a) Finding local retail partners to sell your products in new markets
(b) A partner that resells your products or services into a new market without adding much value
(c) Licensing your intellectual property
1.8.1 GROWTH STRATEGY

 For the business to grow into a large enterprise, the following is required
Growth in employee headcount

 Expansion of current office, retail, and/or warehouse space.

 Addition of new locations or branches of your business.

 Expansion into new regions, locations, cities, or countries.

 Addition of new products and/or services.

 Expanding purchase locations (i.e. selling in new stores or launching an online store)

 Growth in revenue and/or profit.

 Growth of customer base and/or customer acquisition rate.

1.9 BUSINESS GOAL

The goal of the business is to provide quality products that meet customers’ needs.
1.9.1 SHORT TERM GOALS
(a) Increase product prices by 3% over the next three months.
(b) Hire three innovative marketing employees over the next five months.
(c) Increase traffic on your Enterprise’s blog.
(d) Implement monthly giveaways for customers on social media.
(e) Begin an "Employee of the Month" award program.
(f) Select a charity to begin sponsoring.
(g) Create a profile on a new social media channel.
(h) Increase social media posting to three times a week.

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1.9.2 LONG TERM GOALS
(a) Increase the total income of your company by 10% over the next two years.
(b) Reduce production expenses by 5% over the next three years.
(c) Increase overall brand awareness.
(d) Increase your company's share in its market.
(e) Open three new office locations throughout the Kiambu.
(f) Hire fifty new employees nationwide.
(g) Develop and launch three new products.

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 CHAPTER TWO
2.0 THE MARKETING PLAN
2.1 CUSTOMER
2.1.1 DESCRIPTION OF POTENTIAL CUSTOMERS
My customers will be individuals. Most of my customers will be aged from 20 years old to 50
years old with a medium income level since I will be selling my products at an affordable price.
Most of them will be buying my products every day. Their mode of payment will be through M-
pesa. The approximate number of customers who will buy my product is about 2,800 customers.
I will be selling quality products and I will also be delivering my products to my customers for
free to customers who are within Kamakis, Ruiru at a fee to customers who are outside kamakis.

2.1.2 MARKET SHARE

In five years to come my market share will have increased with a 30 % rate because by this time
my products will have be known by many people. Increase in population will also increase my
markets share. There will be competition from other businesses like Jowax Electro Shop, Marko
workshop (electrons) Purex electrons and others
NAME OF BUSINESS PERCENTAGE SHARE % TOTAL NUMBER OF
CUSTOMERS
Jowax electro shop 23 650

Marko workshop 21 600

Purex electronics 19 520

Goldlightes electrical enterprise 26 730

Others 11 300

Total 100 2800

Source : Geoffrey Njenga

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2.2 THE COMPETETION
GOLDLIGHTES ELECTRICAL SERVICES ENTERPRISE will face stiff competition from
other business-like JOWAX,MARKO, PUREX and others who were established 2 years ago.
The business will base on the competitor’s weakness to conquer the business scene. Despite this
competition, the enterprise will have measures to cope and analyze competition i.e.
(a)Branding the business is essential for success because it outlines the vision and the values
your company has.

(b) Focus on customer service

(c) Reward people for doing business with you
(d) Improving the quality of goods and services each day
(e) Choosing the right and low-cost technology with high volume.

2.2.1 SWOT ANALYSIS TABLE

BUSINESS NAME STRENGTH WEAKNESS

JOWAX ELECTRO SHOP  Its centrally located  Poor relation

 Long term  Soaring prices
experience

MARKO WORKSHOP  Readily available  No promotion offered

personnel
 Quicker and better
services
PUREX ELECTRONICS  Many employees  Lazy personnel who are
not always available

GOLDLIGHTES  Low prices  limited capital

ELECTRICAL SERVICE  Quality goods and
ENTERPRISE services
 Technical expertise
 Promotion
 Famous in the
market

OTHERS  Famous in the  Few workers

market
Source: Geoffrey Njenga
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2.2.2 ANALYSIS TABLE
BUSINESS PRODUCT PRICING PROMOTION PERSONEL LOCATION SIZE TOTAL
NAME
Jowax 2 3 2 4 5 2 18
Electro
Shop

Marko 3 2 1 3 2 1 12
Workshop
Purex 2 2 1 3 4 3 15
Electronics
Enterprise

Goldlightes 4 5 4 5 3 3 24
Electrical
Services
enterprise
Others 1 1 2 3 3 2 12
Total 6 6 6 6 6 6 36

Source: Geoffrey Njenga

2.3 PRICING STRATEGY
The business will adopt different pricing strategies like: -
(a) Skimming involves setting high prices when a product is introduced and then gradually
lowering the price as more competitors enter the market .
(b) Pricing for market penetration is essentially the opposite of price skimming. Instead of
starting high and slowly lowering prices, you take over a market by undercutting your
competitors. Once you develop a reliable customer base, you raise prices
c) Premium pricing is for businesses that create high-quality products and market them to high-
income individuals. The key with this pricing strategy is developing a product that is high quality
and that customers will consider to be high value.
(d) Discriminating pricing where the enterprise will be selling a commodity at two different in
cost e.g., time pricing whereby during the day charges can be different from that of evenings
2.4 SALES TACTICS
There are many sale tactics that business is going to use e.g.

(a) persistent with leads and develop the habit of following up with each customer.
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(b) Solving your customers’ problems.
(c) Developing the ability to actively listen to customers.
(d) Use polite terms when you discuss the competition.
(e) Ask for referrals from your customers.
2.5 ADVERTISING AND PROMOTION STRATEGY
2.5.1 ADVERTISING STRATEGY
The enterprise will employ the following advertisement methods.
(a) focusing on showing the brand and the value it can bring to potential customers. It is
usually based on rational values.
(b) Loyalty programs are an advertising strategy that is not aimed at acquiring new
customers.
(c) Use of signpost to show where GOLDLIGHTES ELECTRICAL SERVICES ENTERPRISE
can be found.
(d) Discounts and promotions are based on offering a product or service at a lower price than
usual for a limited time.
(e) Through direct email to the intermediaries who can be potential customers.
All these methods will ensure that customers are, well informed about the direction, location
operating time and kind of services provided.
2.5.2 PROMOTION STRATEGY
This will be done by the business through
(a) Give a sample to show how great the product is.
(b) Offering a gift with a purchase is a strategy that works with almost any business model
(c) Limited time offers are a psychological strategy.
(d) Discounted Pricing and Retailer Events.
(e) Marketing the services and products through business exhibitions and shows.
2.6 DISTRIBUTION STRATEGY
The enterprise will use zero level strategy. The problem that I might face is that when delivering
my products is that they might get damaged since I will be hiring a Boda Boda rider to delivery
my products. To prevent this I will make sure that my product are wrapped well and packaged in
a thick box before delivering them.
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 CHAPTER THREE
3.0 ORGANIZATION PLAN
Organization chart
Owner

Manager

Secretary Supervisor Security officer

Technician artisan

3.1 The Manager

Qualifications
 Should have a diploma in Electrical Engineering.
 Should be computer literate.
 Should have 30 and above years.
 Should have a five years’ experience in the field of electrical.
 Should be fluent in English and Kiswahili.
Duties and responsibilities.
 He will be the custodian of the business i.e., the owner and head of the business.
 Supervise business transactions and operations
 Carrying out short term and long-term planning of the business.
 Recruit the required personnel or staff.
 Paying salaries to employees.
Salary per month Kshs 30,000

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 3.1.2 Supervisor
Qualifications
 Should have a diploma in Electrical Engineering Should have enough experience in
electrical field.
 Should be above 25 years
Duties and responsibilities
 To supervise all the operations of the business.
 Analyze and report sales performance.
 Generate new ideas on how to run the business.
 Serving customers.
 Takes over responsibilities in absence of the manager.
Salary per month Kshs 19,000
3.2 OTHER PERSONNEL, DUTIES AND NUMBER
3.2.1 Secretary
The proposed business will have one secretary
Qualification
 Should be at least a stage II module and above with basic knowledge ON BOOK keeping
and office practices.
 Should also be computer literate.
Duties and responsibilities
 Responsible for office records and bookkeeping.
 To handle issues relating to customers i.e., acting as receptionist.
 Receive and make calls on behalf of the business organization
Salary per month Kshs 10,000

3.2.2 Technician (2)

The business will employ two technicians.
Qualifications
 Should be a certificate holder or above in electrical engineering.
 Should be computer literate Duties and responsibilities.
 Look for contracts of work.
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  Design and cooperate all electrical projects.
Salary per month Kshs 14,000
3.2.3 Artisans
The proposed enterprise will have three Artisans.
Qualifications
 They should have skills at least in determining any faults, knowledge on electrical gadgets
etc.
 Should be able to communicate either in Kiswahili or English.
Duties and Responsibilities
 Should be able to detect any fault in an equipment and service or diagnose.
 Carrying out duties dedicated to them by the seniors.
Salary per month Kshs 7,500
3.2.4 Security officer
The business will have two security officers.
Qualification.
 Should be a form four leaver and above.
 Should have a 5 years’ experience in security forces.

Duties and Responsibilities.

 Keeping Vigilant security during the night and daytime.
Salary per month Kshs 10,000
3.3 REMUNERATION AND INCENTIVES
3.3.0 INCENTIVES
(i) Financial incentives.
Employees will be paid money according to their productivity and hours worked for.
Also, they can earn overtime, bonus and interests.
(ii) Non – Financial incentives.
There will be safety at workplace, health facilities, sick pays, transportation to and from work,
free lunch, free tea, safety clotting etc.
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 REMUNERATION AND INCENTIVES TABLE
JOB TITLE NUMBER SALARIES MEDICAL OTHER TOTAL
OF KSHS P.M ALLOWANCE SPECIFY
PERSONNEL
Manager 1 25,000 3,000 2,000 30,000

Supervisor 1 15,000 2,500 1,500 19,000

Technicians 2 11,500 2,000 500 28,000

Secretary 1 8,500 1,500 10,000

Artisans 3 6,000 1,000 21,000

Security
officer 2 2,500 1,000 7,000

TOTAL 115,000
Source: Geoffrey Njenga
3.4 EVALUATION, AND DEVELOPMENT OF EMPLOYEES
3.4.1 Recruitment
 I will advertise on all social media platforms.
 I will design posters and share them on them on the company’s social media pages.
 Applicants will send their Curriculum Vitae via email after which the short listed
applicants will attend a physical interview.
3.4.2 Employee Development
 They will be taught safety measures, their roles etc. in the business.
 They will also be attending seminars or workshop.
3.4.3 Promotion of Employees
The employees will be promoted according to their -:
 Skills and abilities.
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  Work performance.
 Education qualifications.
 Technical certifications or qualifications.
 Seniority.
 Leadership potential.
 Time since last promotion.
 Level of training.
3.5 SUPPORT SERVICES
3.5.1 INSURANCE
My company will be insured by Britam to reduce risks associated with operating business.
Which will be paid for every month Kshs 1000
3.5.2 BANKING SERVICET
This enables business to build credibility, reduce risks of handling cash and save funds for future
use. I will store my business profits with Equity bank kamakis Branch operating under a business
account. Every month kshs 30,000 will be deposited in the bank
3.5.3 POSTAL SERVICES
I will have a post office box under Posta Kenya Ruiru Branch. To facilitate communication.
Which will be paid for Kshs1500 annually

3.5.4 LEGAL SERVICES

I will work with MMS Advocates for consultations on matters of the law and other issues that
may arise.
3.5.5 ACCOUNTING SERVICES
I will outsource accounting from the secretary.
3.5.6 POWER
My source of power will be Kenya Power and Lighting Company.60 units will be paid for every
month Kshs 1200
3.5.7 WATER
will be supplied to my business premises by Ruiru Water and Sewerage Company. 10,000 liters
will be supplied every month for Kshs2000
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3.6 LICENSES, PERMITS AND BY LAWS
 To run my business, I will be required to register the business. I will reserve the
business’s name through E-citizen portal where I will pay Kshs.150.
 To register the business, I will fill in all relevant information and generate an invoice for
my work license where I will print the payment invoice together with the work license.
 I will apply for a business permit from the county trade office and I will provide the
business registration certificate after which I will fill in an application form and I will be
required to pay Kshs.15, 000.

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