CHAPTER ONE

BUSINESS DESCRIPTION

The proposed business that is KADERO ELECTRICAL ENTERPRISE will be dealing specifically with
the sale of electrcal materials, tools and equipments and also will be offering services like repair of
electrical equipment, tools and winding of motors.

BUSINESS IDENTITY

KADERO ELECTRICAL ENTERPRISE is the preferable name for the proposed business. The term
KADERO was chosen because the sole proprietor comes from KADERO village, thus word that can attract
many people. It act as an advertisement.
The following are the contacts of the proprietor,
KADEROELECTRICALENTERPRISE
P.O BOX 47-600
SIAYA
Tel no: 0797603864
Email: deniswamidha@[Link]

BUSINESS LOCATION

The business will be located at BONDO near JARAMOGI OGINGA ODINGA UNIVERSITY one
kilometer away from BONDO town. This place is preferred because it's along the main road enhancing
easy transportation of goods and services. It's also at the market place hence attracting people as customers.
There is full security as there's police post.

THE MISSION STATEMENT

The mission statement for the proposed business is to develop BONDO as an industrial town through
selling high quality equipments such as motors used in industry, breakers and many more.

THE SPONSOR

Achola Denis who is currently a trainee in Electrical and Electronics engineering at SEME TECHNICAL
TRAINING COLLEGE. The following table give a brief profile for the sponsor.
NAME: ACHOLA DENIS

ADDRESS: P.O BOX 47-600

SIAYA

CONTACT NO: 0797603864

RESIDENCE: Guba, Bondo

OCCUPATION: Agricultural practice (poultry and dairy farming)

CURRENT STATUS: Trainee in Electrical engineering

Since the sole proprietor lacks inadequate skills and experience in managing the business, he will employ
those who have experience (at least five years of experience), quality skills and also persue in courses such
as ICT, Electrical engineering and Business management so that the business run successfully.
OWNERSHIP STRUCTURE

The form of a business is a sole proprietorship one owned by ACHOLA DENIS who is the manager. The
owner decided to choose this form of business due to the following reasons
(a) It's easy to start because few legal formalities are required
(b) The owner of the business enjoys all the profit from the business
(c) The owner of the business enjoys all the profit from the business.
(d) The soleroprietorship is flexible, one can change the location when need arises.
(e) Small amount of money is required to start this business.
(f) There is quick decision making because the proprietor do not have to consult anybody.

TYPE OF BUSINESS

The business is a sole proprietorship which engage on the following

_Selling of electrcal materials like switches, lighting system. Electrical tools such as phase resters, electrcal
tool boxes and any other electrcal related tools or equipment.
_Repairing of faulty electrcal gadgets in different capacitors.
_Motor winding, rewinding repair and selling the rewinded motors.
_Leasing out of services like lighting system and music stereo type.

PRODUCT SERVICES

The products produced will be of high qualities, convenient and cheap for customers to afford. Also the
services will be affordable to all people and sufficient motor rewinding will be done. All these will be
achieved by having skillful personnel and having large stock to begin with. The products and services will
be readily available because of its location situated in a market center along the road.

JUSTIFICATION OF THE BUSINESS VENTURE

The assuarance that the success of the business will be profound because of the following
_Availability of knowledge and skills required to run any business which was got through four
years in a training college , also from the experience got during attachment and lastly the entrepreneurial
skills.
_The business will be situated in an area reachable to people thus enhancing the business growth.
Moreover, transportation of materials and workers will be easy as the business will be near the road.
_Research will be done and more consultation on how to expand or grow the business

THE INDUSTRY

The business require ksh.1.5M for the capital and will fall under service and commercial industry as it will
purchase materials, equipments and sell them to customers and also doing services like repairing and motor
rewinding. This industry is suitable because of easy transportation of goods due to access road, there's
market as the business will be located in area with less competition, there's high security since the business
will be settled near police post , presence of skilled personnel and equipments required hence quality
products offered.

The business will be small in size and will only accommodate thirty people who are registered under it.
From the analysis the business has created Job opportunity to citizens as twenty people, this will help them
to improve their living standard. Although the business has been running, there are few challenges
experienced e.g. unfavorable weather conditions such as heavy rain which lead to blackout of power and
low solar power hence no artificial light. High cost of fuel such as diesel for running the generator as an
alternative power supply to the industry. In addition to, the technology used in the industry is capital and
labour.

GOALS OF THE BUSINESS

The business will be more resourceful to many people as it will have the following goals

SHORT TERM GOALS

(a) Creating Job opportunity to self and to others.

(b) To provid the best quality of products and services.
(c) To employ qualified skilled personnel to assist in running the business thus efficient production of
work.
(d) To establish a very successful business which can win the interest of customers in at large within a
short period of time.

LONG TERM GOALS

(a) To maximize profit

(b) To open other branches elsewhere to reach many people with our services and
products hence grow bigger.
(c) To ensure that skilled personnel involved in the business get knowledge and skills
with time as technology changes.
(d) To open other small business aside such as Cyber cafe.

ENTRY AND GROWTH STRATEGY

Entry strategy include

(a) By offering low prices to some products
(b) By offering promotion like the discount
(c) Making more advertisement through posters,radio radios and Tvs

GROWTH STRATEGY

For the business to grow bigger the following are required

(a) Employing a qualified personnel who can manage the business well
(b) Creating more space for the expansion of the business
(c) Buying a vehicle that can transport products hence saving the transportation cost
(d) Steady carrying out of advertisement
(e) Buying electronics devices such as computers and laptops for storing information and work done.

SWOT ANALYSIS

Swot analysis is a framework for identifying and analyzing internal strength and weakness as well as
external opportunity and threat in the business. The primary goals of SWOT analysis is to increase
awareness of factors that go into making a business decision or establishing business strategy. To do this
SWOT analyzes the internal and external environment and the factors that can impact the viability of
decision.

Strengths and weaknesses are the internal factors. Internal factors are characteristics and resources within
the business that directly influence its operation and performance

Opportunities and threats are the external factors outside the business control which have impact on its
operation, market position and success. These factors arises from industry climate and broader business
environment and therefore one have no control over them.
STRENGTHS
Strengths are unique advantages and internal capabilities that give business competitive edge in the market
and they include the following
(a) Proper management of the business
(b) Qualified skilled personnel
(c) Efficient processes
(d) Unique products and services
(e) High security
(f) Affordable prices
(g) Quality products
(h) A loyal customer base

WEAKNESSES

Weaknesses are business's negative attributes that limits the performance and growth in the business.
Weaknesses include the following
(a) Unaffordable prices
(b) Poor quality products
(c) A lack of financial resources
(d) A low customer's satisfaction rate
(e) Lack of transport facilities

OPPORTUNITIES

Opportunities are favourable situations or conditions that the proprietor can leverage to achieve business
goals. Opportunities include the following
(a) New market
(b) New technology
(c) Collaboration
(d) Cheap skilled labour
(e) Room for expansion

THREATS

These are unfavorable situations or conditions that can harm a business. They include the following
(a) A declining demand for products or services
(b) A new competitor
(c) A change in regulation or polcy
(d) A new technology that make one of the services obsolete
(e) High taxation by the government
(f) Theft
(g) Natural hazards such as heavy rain and fire
(h) A competitor have launched new advertising campaign.

ANTICIPATED PROBLEMS

These are factors which may or may not be predictable can lead a business to be in a difficult situation
(a) The loss of significant customers
(b) Challenge from a new technology
(c) Lack of government support
(d) Success of firm's competitor
(e) Inadequate finance for expansion
(f) Natural hazards