BUSINESS PLAN

TAMIA DESIGNERS LTD

P.O Box 1540-00900
Nairobi, Kenya

NAME : JACQUELINE F.G. NJERU

INDEX NO : 406006197
SUPERVISOR : MRS MELIOTH W. NJENGA

THIS DOCUMENT IS PRESENT TO KENYA TECHNICAL TRAINERS COLLEGE IN PARTIAL

FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF A HIGHER DIPLOMA IN
SECRETARIAL MANAGEMENT

DATE OF SUBMISSION : OCTOBER 2016

TABLE OF CONTENTS

LISTS OF TABLES
DECLARATION
I declare that this Business Plan is my own original work and has never been submitted by anyone for any
examination in education institution.

STUDENT’S NAME: Jacqueline F.G. Njeru

SIGNATURE:

DATE: 26th September 2016

This Business Plan is presented for examination with the approval of my supervisor.

SUPERVISOR’S NAME: Mrs. Melioth Wambui Njenga

SIGNATURE:

DATE: 26th September 2016

DEDICATION
With heartfelt gratitude and thanksgiving, I wish to dedicate this entire work to the Almighty God for the far he

has brought me. He has been my source of strength and hope.

ACKNOWLEGEMENT
First and foremost I would like to take the opportunity thank my daughter Leanne Tamia for bearing with me

especially when I had to be absent for long hours. She has been my encouragement; always reminding me to

remain focused and works hard to accomplish. Thanks Leanne for your patient and understanding.

I wish also to thank my parents, brothers and sisters and my dear friends who stood with me and always

encouraged to go on. Their support through their constant prayers and in kind enabled me make it to the end.

With sincerity and honesty, I wish to acknowledge Madam, Melioth Njenga, my supervisor. She was armed to

the tooth to ensure I got it all right. How can thank you better! Your tireless efforts and dedication left me

amazed, you never wanted to miss a lesson and where you could not make because of the many assigned duties

and responsibilities, you ensured you compensated the lesson. You guided like a mother would to her children.

Thank you Madam; may God reward you.

I would like to take this opportunity to acknowledge each and every individual that has contributed to the

success and near completion of a Higher National Diploma. I thank the Radiation Protection Board for granting

permission to go on study and for financial support especially in paying for my college fee. I also wish to thank

the entire staff of the Board for their cooperation and willingness to assist in areas that I needed help in order to

accomplish.

I feel greatly indebted to the entire Kenya Technical Trainers College fraternity and especially the Business

Education Lectures at large for their tireless efforts, commitment and dedication to ensure that I was properly

nurtured with knowledge and skills that would help me venture into the world of business. Thank you all; God

bless.
 CHAPTER ONE

1.0 BUSINESS DESCRIPTION

For many and including the owner of Tamia Designers Ltd, seeing their names on a clothing label is the
ultimate dream. This dream arises for long love of playing with fashion and feel that the world of fashion could
be improved by the inclusion of Tamia Designers. This is a fast-paced industry and new fashion designers make
names for themselves every year. This industry may not be one that is easy to enter, but Tamia Designers will
fully be dedicated to gaining entry into it, which in the end will help Tamia Designer’s achieve its dream and
meet goals of becoming one of renowned fashion designers in the country.
1.1 BUSINESS NAME

The name of the business will be TAMIA DESIGNERS LTD. The name is derived from the owners name, who
loves fashion and anyone thinking fashion should think ‘Tamia’ designers, as it suits the new fashion or the new
trend of the current fashion. The business will be a brand that combines color and culture in an elegant manner
dealing with designs to suit people from all walks of life.

The contact for the business will be:

TAMIA Designers Ltd
P.O BOX 1540-00900 TamiaDesigners
Nairobi
Tel: +254 20-2689254
Cell: +254 0726771077 “Your happiness is our pride”

Email: freda.jacqueline1@gmail.com
Website: www.tamiadesigners.com

1.2 BUSINESS ASSUMPTIONS

Tamia designers will aim at producing and offering products (design clothes) which will meet the customers’
needs and will make and sell the products profitably. The business therefore expects to:
 Provide quality designs and excellent services hence retaining the client.
 Make profits and find ways for fight competition and remain in market
 Sufficient capital to run the business will be available which will enable
the business to pay all bills without difficulties.

1.3 PRIMARY OBJECTIVES

The main objective of setting this business will be:

 To provide quality designs to make profits and raise standards of living for owners family
 The need of people in the area to experiment new kind of fashion design and give them a sense of class
 To carry out extensive marketing through advertisements that will attract the public attention and as well
find networking connections which aim is to sell online.
1.4 MISSION STATEMENT

To provide quality designs with a wide range of choices in clothes to a wide of customers
Vision
To become the best and most preferred fashion designer Kenya by offering the best services in terms of
fashion designs.

1.5 FINANCE/SPONSOR

To undertake the proposed business I intend to obtain money from the harambee sacco, my personal savings and
bank loan. The target amount required for the business 2.8 million.

The breakdown of the finance will be as follows:

Amount
Financing Institution
(Ksh.)
1 Harambee Sacco 1,000,000.00
2 Barclays Bank of Kenya 1,000,000.00
3 Personal Savings 800,000.00
TOTAL 2,800,000.00

1.6 BUSINESS OWNERSHIP

Tamia designers business will be a sole proprietorship type of business. This type of business is easy to manage
and reduces cost of employing staff at this level. It is also easy to start and control. Making decisions takes the
shortest time possible since no consultation is needed.

1.7 BUSINESS LOCATION AND ADDRESS

The business will be located in Ridgeways, Nairobi County situated along Kiambu Road within Nakumatt
Holdings, near Queen of the Rosary Catholic church. Contact as follows:

TAMIA Designers Ltd

P.O Box 1540-00900
Nairobi
Tel: +254 20-2689254
Cell: +254 0726771077
 Email: freda.jacqueline1@gmail.com
Website: www.tamiadesigners.com

The reason for the choice of the location to set up the business within Nakumatt Mall is to attract and hold the
large number of customers from both foreign and locals shoppers from the suburbs of Runda, Fourways
Junction, Eden Ville, and Ridgeway’s at large.

1.8 MARKET
To attract customers to buy the products, the Tamia Designers Ltd will ensure that extensive marketing through
advertising, laying good marketing and selling strategies is undertaken. Also, to avoid inconveniences and
challenges that come from Government regulations, the business will ensure all procedures are followed and
hence increase in cost and high profits.

1.9 INFRASTRUCTURE
Having good accessible roads and communication networks in terms of internet connectivity, electricity, water
connections and excellence security is very important to any business. This makes ease accessibility by
customers which will lead to the success of the business and makes its thrive. Ridgeways area is a good
business location because of its accessibility and locality.

1.10 BUSINESS VENTURE

Through the proprietor’s own analysis through market surveys and business consultants, there is a specific and
growing need in the area for the designing services and products that Tamia designers seeks to serve. There is
no such business in this area.

People in the area are conscious about their appearance and the feel of sense of fashion and the new trend in the
market, therefore having such business brought closer to them will be a good venture.

1.11 CONTRIBUTION TO LOCAL COMMUNITY

The goal of Tamia Designers to the community is to provide sense of the pride and confidence in terms of
fashion.
The Business will create an increase in new jobs due to the added exposure of the issue and money that would
be generated. Within this context, Tamia Designers will take an active role in poverty reduction and sustainable
livelihood creation.

This development in world of business will also create employment for young people who have undertaken
their diplomas or degree in this field and other services e.g. participation in community activities.

1.12 THE INDUSTRY

This kind of business falls under the clothing and textile industry.

Fashion design is the art of application of design and aesthetics or natural beauty to clothing and
accessories. It is influenced by cultural and social attitudes, and has varied over time and place.

In the past people were not passionate about fashion; however they were conscious about the traditions, beliefs
and dress code. Nowdays, the western culture, through globalization has transformed the fashion industry and
becoming fashion conscious and moving to the latest trends. Access to fashion knowledge is easier than in the
past.

Fashion today is a global industry, and most major countries have a fashion industry. China and Bangladesh are
the biggest manufacturers of clothing, and other notable clothing manufacturing countries are Germany,
Indonesia, Malaysia, etc.

The fashion industry has continued to grow and developed in the last few years despite the challenges it faces.
Kenyan designers are now getting international recognition for their work internationally.

In Kenya, there are three fashion designers with international appeal and a bright future in the fashion industry
both in Africa and in the world; Patricia Mbela, operating her fashion label- Poisa is one of the most famous
fashion designers in Kenya. Patricia was one of the designers who were involved in the search for a Kenyan
National dress and her career in fashion spans more than a decade. KikoRomeo, owned by Anne McCreath of
design house based in Kenya. John Kaveke founded his design house in 1998 and within those few years, his
designs have been featured internationally.
These are just a few of the Kenyan designers making a huge impact in Africa and all over the world with their
creative designs and giving Kenyan fashion international recognition.

1.13 GROWTH AND EXPANSION

There are many avenues of growth; vertical, horizontal, internal, and now online, are all relevant in today’s
fashion environment.

The ultimate goal of Tamia Designers Ltd will to increase sales or revenue. The business intend to apply the
following factors(strategies) that will enable increase in profits and hence lead to the growth and expansion of
the business;

 Marketing. Through proper product placement, effective marketing, and an established online profile,
Tamia Designer will focus on customers needs and ensure its product more visible to the customer.
 Financials. The business will ensures attractive financial projections are put in place which will reflect
positive and genuine financial development.
 Internal Operations. The business internal operations have to run smoothly and leave little or no room
for error, ensuring effectiveness and efficiency.
 Develop new product line by surveying my customers
 Find new customer since customers will help the business to grow
 Improve on customer care
 Increase prices by checking if goods and services are priced correctly and if to increase prices without
affecting sales
 Price discounts and promotions to increase customer base, eg 2-for-1 deals or happy hour
 Retail displays by using effective retail displays to increase sales.


The fashion industry is continually evolving, making positive growth essential to remaining relevant.

1.14 COMPETITIVE TRENDS

Kenya’s fashion industry is valued at 3.36 million a year, according to the Kenya Association of Manufacturers
with an estimated 30,000 workers, while in Bangladesh the industry is estimated at $23Billion employing 4.2m
people. In Kenya, the industry comprises only 6 per cent of the small manufacturing sector, according to the
World Bank.

The Kenyan government with all the difficult financial times indicated the government’s high-level support for
boosting the sector.

Tamia designers Ltd will endeavor to know the strengths of the competitors and strive to work effectively to
emerge as a market leader, source for adequate financial resources, and learn proprietary technology.

The business will be quick to learn on the weakness of the existing competitors in Ridgeways area and around
the country, like for example; the fact that that the business is still new in the market and still to identify our
customers is the main hitch. People and especially the young and dynamic, who are the most passionate about
fashion, are not financially stable find the designer clothes expensive to purchase getting the raw materials for
the design is quite expensive considering the economy state in our country. Getting reliable employees is still an
issue.

1.15 MARKET SHARE

Tamia Designers will strive to work most effectively in order to thrive in the market and occupy the larger
market, like for example, acquiring a larger percentage of the market share. If other fashion designers, such as
Angelsmile, kikoti Fashions, and Afrivazi designers occupy 70% percentage of the share, then Tamia designers
will strive to occupy the other 30%. The pie charts below show how this would be and how the fashion market
in Kenya would look like.
Angelsmile Desingers 28%
Kikoti Fashions 20%
Afrivazi Designers 22%
Tamia Designers 30%

Most of these competitors are situated outside the Central Business District therefore Tamia Designer has added
advantage over them since its located in a more potential areas of Runda and Ridges.
1.16 ENTRY AND GROWTH ENTITIES (STRATEGIES)
Fashion is a hyper-competitive industry so having a well-designed and a high-quality products (clothes) is
simply the price of entry.

Tamia Designers Ltd will employ the 4P’s of marketing i.e Product, Place, Price, Promotion as its growth
strategies, which will aim at understanding the needs and wants of its customers.

Tamia designers will focus on developing solid and loyal client relationship offering design solution based on
the clients taste, budget use and goals. The additional selection accessibility of products, design services and
value based on pricing, will differentiate us from our competitors.

CHAPTER TWO
MARKETING
Marketing is building your brand, convincing people that your brand, in terms of your product, service, and
company is the best and protecting the relationships you build with your customers. (Marjorie Clayman ).

Importance of marketing

Marketing in any business is crucial as it helps in transfer, exchange and movement of goods. Goods and
services are made available to customers through various intermediaries, the wholesalers and the retailers.
Marketing helps in raising the standard of living of the community by bringing services closer and thus also
creates job opportunities to the people. It is also a source of income and revenue by selling the products and
services, an organization earns profits which can still be re-invested to earn more profits in future. Marketing is
mechanism helping producers to decide on what to produce and sell, as per when needs arises. Marketing can be
termed as a source of new ideas; with rapid change in taste and preferences of people, marketers come up with
new innovations and inventions for effective production and distribution. It is also a source of economic
development. Through sales and profits and good marketing strategies, the country’s economy is able to remain
strong and stable.

Why do customers buy? Customers buying behaviors is influenced by quality of product or service, competitive
pricing and others are influence by friends.
Customers will often decide to buy when there is offer time or after sales services, i.e. when a guarantee is
promised, transporting goods to doors, and sometimes it goes with seasonal like for example Christmas time,
people crumble to buy what is available and new in the market.

Customers’ buying behavior can be influenced by wanting to belong to a certain social environment for social
recognition, need for change, and sometimes it physiological whereby one buys because of an advertisement.

2.0 MARKETING PLAN

2.0.1 Overview
Tamia Designers is a fashionable women's clothing boutique that will open in January 2017. Tamia is the
favourite name of the owner’s daughter, defines the boutique and its essence of inclusion. Tamia clothing
selections and exclusive personal style services, which include a detailed Style Assessment, will ensure that our
customers are well dressed to look elegance on all occasions. The Tamia designers will be a woman-owned
business and will be organized as a Sole Proprietorship.

Therefore this chapter will cover the following, customer definition, types of customers, importance of
customers, who are my customers and who will be my customers.

2.1 CUSTOMERS
Customers are individuals who receive a product, either a good or a service from an organization or business.

Tamia Designers plans to segment its customers into three types of customers; who will mainly be individuals
and to some extent, organizations
1. Domestic customers
2. Institutional customers
3. Commercial customers

2.1.1 DOMESTIC CUSTOMERS

These are the customers from around the area who visit the business at their own times to purchase the cloth
products at Ridgeways centre. This will take 20% of the fashion products.

2.1.2 INSTITUTIONAL CUSTOMERS

The customers include those who are in schools , Polytechnics, Colleges and Universities or even Churches.
The schools and colleges to be served are St Marys Runda, Kiambu Institute of Technology , braeburn school,
Ridgeways. The churches include Our Queen of Rosary Catholic, P.C.E.A Church and A.C.K cathedral church.
These institutions are to take the highest percentage proportion of 50% of the fashion products.

2.1.3 COMMERCIAL CUSTOMERS (WHOLESALERS)

These are customers who buy the designed and made wears in bulk in order to go and resell at a percentage
profit .
This will cover only 20%.

2.1.4 TRANSIT CUSTOMERS

These are travelling customers who will be travelling and purchasing the already designed and made outfits; so
normally they will be served.
2.1.5 IMPORTANCE OF CUSTOMERS
The corporate image is the impression of the policies, personnel and operations of a corporation that is imparted
to its employees and the public.
Tamia Designers intends to inform educate and create a mutual understanding with the customers which will
create an awareness of the business to the public and they will be able to know the core activities and functions
of the business.
The business will ensure, the reception area, being the first place any visitor will pass through, it will be
furnished and decorated so that the client feels at ease in the friendly environment because we look forward to
demonstrating how important our customers will be.

2.1.6 BUSINESS CUSTOMERS

Tamia Designers will be target customers mainly for the residency of the surrounding estates which will focus
on women and ladies of 18 – 60 years. The business will also involve few organizations and make them our
customers.

2.2 MARKET SIZE AND TRENDS

Chatting to fashion insiders here feels, in many ways, the same as anywhere else around the world. Nairobi's
power bloggers have moved to Instagram; local designers are troubled by cheap counterfeits; and the same
laundry list of global celebrities reigns supreme from Mombasa to Lake Victoria. But scratch beneath the
surface and it soon becomes apparent that, for any outsider, the key to a meaningful conversation about the
Kenyan fashion industry lies in understanding two Swahili words: mitumba and kadogo, which consistently
punctuate the polished, internationally-accented speech of so many of Nairobi’s movers and shakers.

For years, Kenya has been inundated (some would say blessed) by the world's cast-off clothing. As East Africa's
regional trading hub, Nairobi has become a clearing house for many dealers of second-hand fast fashion, mass
and designer labels, which are sent in bulk shipments to the continent.

"The mitumba business has played an important role in brand awareness here," says Diana Opoti, a Kenyan
brand strategist and host of a pan-African fashion television programme called Designing Africa.

"I've heard various brands are seriously assessing the market now – Inditex among them," says Ann McCreath,
a pioneer on the market who started the contemporary Kenyan fashion label KikoRomeo nearly two decades
ago and FAFA (Festival for African Fashion and Arts) in 2008 as a platform for other local brands like Wambui
Kibue and Jamil Walji after Kenyan Fashion Week ceased operating.
Fashion is no longer just a preserve of the rich but an essential part of all our lives. We want to not only feel
good but look good too. There is a new crop of designers who understand the saying that clothes maketh a man
and they have found a way to interpret trends and incorporate them into their designs.

2.3 COMPETION
Tamia Designers will have to compete with other established businesses, such as Iona Mcreath of kikoti fashion,
Wambui Kibue of angelsmile, Roselyn Shiyenze, Valerie of Afrivazi, among many others and will carry a
SWOT and SWAT analysis. This will provide information that is helpful in matching the firms resources and
capabilities to the competitive environment in which it will be operating and also will involve studying the
business weakness in depth.

 Production tools and equipment

 Production tools and equipment
Strengths
Tamia Designers will have a competitive advantage since it will at a strategic position in the outskirts Nairobi
city, yet situated in rich areas of ridgeways and it is easily located on the ground floor. The business also has
patent its name which means no other business can use this name. The business will identify ways that it can use
its strengths and creativity and innovation so as to satisfy customer needs

Weakness
Tamia Designers will also do analysis on its weakness and know that it may lack adequate financial resources to
operate the business and needs to utilize the available resources keenly. The business needs to do intensive
advertising to gain customer confidence since the competitors have been in the market for a longer period and
have acquired potentials customers.

Opportunities
The business will also take advantage of the loosening of the regulations to install new technologies and
identify unfulfilled customer needs and fulfill.

Threats
The business will be on the alert and will identify the shifts in consumer tastes and preferences and will act
immediately to prevent them from shifting to the competitors.
The business main competitors will be Angelsmile, kikoti Fashions, and Afrivazi designers. Most of these
competitors are situated outside the Central Business District therefore Tamia Designer has added advantage
over them since its located in a more potential areas of Runda and ridges.

Summary of the SWOT Analysis

Location Angelsmiles Kikoti
Tamia Afrivazi Designers
Fashions Fashions
Designers Off Waiyaki Way
Mombasa Road Tabman Road
Off Kiambu

Market Share 25% 29% 26% 20%

Advertising aAnd Magazines , Television Television Magazines

Promotion Exhibitions Magazines Magazines
Personal
Sellings

Technology Intend to Has a Website Has a Website Has No Website

Develop a
Website

Machines and Moderately Moderately Inadequately

Well Equipped
Equipments Equipped Equipped Equipped

2.4 PRICING STRATEGIES

The business is to introduce good ways of determining of prices for its products. The prices are to be allocated
on the products at favorable so as to clearly build up sufficient volume of the business.
The selling price is to be calculated as total cost plus percentage profit. Government budgeted control is a factor
that determine how the raw materials are to be bought processed and sold. The selling price is to be variable
depending on the seasons when raw materials are expensive so prices can increase but fairly.

2.4.1 PRICING METHODS

To set the specific price level the business will make use of the following pricing methods:
1. Cost Plus Pricing- The business will set the price in consideration of the purchase cost and other costs
like advertising, insurance, medical expenses, tax license
2. Target return pricing- The business will set the price to achieve a target return on investments.
3. Value based pricing- the business will base the price on the effective value to the customer
4. Psychological pricing- the business will base the price on factors such as signals of product, quality,
demand for the product and what the customer perceives to be fair
Tamia Designers intends to use Cost Plus Pricing over the others because it requires minimum information,
involves simplicity of calculation and insurers sellers against the unexpected changes in costs.

2.5 SALES STRATEGY

Tamia Designers will identify and measure key profits drivers that will ensure that no increase of costs is
incurred by looking for ways to increase sales revenue as well as decreasing costs and see how the business
can save money.

Tamia designers intend to apply the following strategies to ensure maximum profits:

 Develop new product line by surveying my customers

 Find new customer since customers will help the business to grow
 Improve on customer care
 Increase prices by checking if goods and services are priced correctly and if to increase prices without
affecting sales
 Price discounts and promotions to increase customer base, eg 2-for-1 deals or happy hour
 Retail displays by using effective retail displays to increase sales.

The business will also lay strategies to decrease costs, like for example,
 Decreace inventory – stock control
 Decrease direct costs ensuring the business has right suppliers which will help negotiate for better
prices or discounts
 Decrease indirect costs by trying to minimize waste and errors in the business e.g. reducing marketing
costs by using low costs marketing techniques
 Benchmarking key financials, like compare cost of rent, utilities of similar businesses in the industry and
see that the business is not paying too much

The business will aim at prioritizing the strategies and focus on profitable items and focus on products and
services with highest gross profit margin which will help achieving higher sales target.

Tamia designers aspire to grow and compete with the established businesses and increase its profit margin
through intensive selling of its services. The business will install the technology to be able to access its
customers easily.
2.6 ADVERTISING AND PROMOTION STRATEGIES

2.6.1 Pricing Discounts

The business will use the advertising to remind the customers that the product is still available and will be
needed in future. The customer will also advertise to make the customers keep in mind during the off-seasons
and maintain top mind awareness.

Tamia Designers will use the following modes of advertising-:

The Internet
The business intends to launch a website through which it will advertise its made outfits and fashion trends. The
business will post the items and the types of services that it offers on the website and customers will be able to
e-mail and place an order. They will also be able to make payments through e-banking; they don’t have to go to
the bank.

The Radio
The business will use the radio to advertise its products / services to the customers. This will be done by the
Heat FM; this is because it targets a bigger population of listeners.

Newspapers
The business targets the group who consists of middle level earners who are able to access newspapers on a
daily basis and they can keep the newspaper for reference. It also affordable and most customers will be able to
access it at least three times in a week.

Personal Advertising
This one on one interaction with the customers. Tamia Designers will organize to attend the exhibitions and
trade fairs where it will earn a chance to display all the items that it sells.

Bronchures
Tamia Designers will secure around town to look for a graphical designer who designs brochures at a reasonable
price. The brochures will be kept in business premises for customers to read. The brochure will contain all the
items that the business is dealing in. It will also show pictures of different kind of outfits and wears. The
brochures will be updated from time to time when there are new items to be displayed.
 TAMIA
DESIGNERS
LEANNE NJERU Managing
Director “Your
happiness is our pride”
Ground Floor next to Nakumatt
P.O Box 1639-00100
NAIROBI, Kenya
Tel; +25405627947
EMAIL:tamiadesigners@gmail.com

Yellow Pages

Tamia Designers will apply for its contact address to be printed in the yellow pages and this will include the
business name, address, location, e-mail address. The subscription fee is quite affordable for the business.
Logo
Tamia Designers will have a logo that will be printed on all its letters and envelops.

TamiaDesigners

Notice Board
“Your happiness is our pride” The notice board will be displayed at the entrance of the building and will show
the direction of the business.

TAMIA DESIGNERS
GROUND FLOOR
WELCOME

Advertising and Promotion

SN/O MEDIA AMOUNT
1 Internet 18,000
2 Radio 10,000
3 Newspaper 31,500
4 Personal Advertising 10,000
5 Bronchures 20,000
6 Billboards 40,000
7 Yellow Pages 1,000
8 Logo 5000
9 Noticeboard 3000
Total 138,500
2.7 DISTRIBITION STRATEGIES

Distribution refers to how the business will make its products or services available to customers. Tamia
Designers will use the direct channel to distribute its products or services and will strive to be efficient and
effective to meet the customer’s needs so as to meet its overall marketing objectives.

CHAPTER THREE

3.0 ORGANIZATIONAL PLAN

This includes an organizational structure of the business, present professional experience and achievements of
people who are to manage the project.
The plan also present the employment plan for the next few years, including the people the business is going to
hire, their skills and experience.

3.1 INTRODUCTION
Organization is the activity of putting a working order or arranging people into an efficient system to attain
organization goals. Management is getting work done through other people. It is the duty of Tamia Designers
to concerns itself with the direction and control of various activities to attain business objectives. In any given
business/organization, a good and detailed workforce determines the rate of success of that organization. Tamia
Designers Ltd expects to get well trained workforces which implement all activities of the enterprise so as to
remain competitive in the market.

This chapter details the people who will be involved in the entire management of the business activities. It
details the objectives of the staff plan. It also shows how the appointments of the management team will be
done, what will be their role and how they will be appointed.

3.2 ORGANIZATIONAL STRUCTURE

An organization is a group of people intentionally organized to accomplish an overall, common goal or set of
goals. Business organizations can range in size from two people to tens of thousands.
The organization structure of Tamia Designers will be flexible to accommodate expected changes in future due
to expansion. Should the organization grow beyond its estimated size, more positions in specialized areas will
need to be added as well as additional site support and office assistance. The responsibilities assigned to the
employees will be clearly defined to enable them carry out the duties assigned effectively.

The team will function as one with constant communication through weekly staff meetings because all jobs are
interrelated. There will be well defined channels of communication both downwards and upward which will
allow each employee to have one supervisor. This will avoid conflict of instruction and will improve efficiency.
The performance of one affects the performance of the others; therefore each team member will expect nothing
but the best from each other. This will create a culture of teamwork among the employees.

3.3 ORGANIZATIONAL CHART

The figure below is an illustration of the proposed business organization chart.

Director

Assistant Manager/
Designs Assistant

Accountant Marketing Team

 Messenger Casuals

The organization chart will aim at job description and knowing who is responsible to who and his/her
responsibilities for effective running of the business and thus avoiding conflicts among staff.

3.4 MANAGEMENT TEAM

This will comprise of the Director, Assistant Manager/Designs Assistant and an Accountant. The management’s
objectives will be to recruit qualified staff, develop staff through training, develop teamwork spirit within the
employees, motivate staff through good remuneration, utilize employees abilities and skills through which
employees will be stimulated to perform to their highest potential, and enhance employees creativity and
innovation in order for them to attain job satisfaction.

3.4.1 Business Director

The Director of the business will be the proprietor. The Director being the business owner will be in charge of
running all the day to day activities of the business.

Duties and Responsibilities

Generally, the Director of the business is the overall boss and will endeavor to make sure the business is a
success. Duties and responsibilities will be to:-
 Sourcing and recruiting staff.
 Decision maker, planner and controller of the business.
 Oversee all the financial aspects of the business and handling financial transactions with the clients.
 Carrying out job analysis.
 Monitoring market trends for changes in technology.
 Signing business correspondence and contracts.
 Establish an effective working relationship among his employees by duty allocations to each one of
them,

3.4.2 Qualifications
o Holder of a Higher National Diploma in Fashion Design
o Diploma in Fashion and clothing
 o KCSE B Minus or Equivalent
o Working experience 5 years or more in different fields.
o Good communication in Kiswahili and English Languages
o Aged 45 years
o Kenyan citizen

3.4.3 Remuneration
The Director/Proprietor will earn a monthly basic salary of Ksh.20,000.00.

3.5 Other Personnel

3.5.1 Assistant Manager/Designs assistant

For the organization to run efficiently and effectively, it requires well qualified, responsible, knowledgeable and
experienced staff.

3.5.2 Duties and Responsibilities

 Assisting the manager on day to day operations of the business.
 Ensure customers are satisfied with the services provided.
 Allocate duties to staff and supervising them.
 Giving a daily report of the progress on each contract that has been signed with service providers.
 Booking appointments for clients in liaison with other service providers.
 In absence of the Manager he will undertake the duties of the Manager.
 Make sure the rules and regulations of the business are adhered to during the business operation.
 Monitoring the feeding, medication and vaccination of the birds to ensure it is done at the right time to
avoid deaths,

3.5.3 Qualifications
 Holder of Diploma in Fashion and clothing
 Certificate in Fashion Design
 KCSE C Plain OR Equivalent
 25-40 years.
 Experience of about 3 years in the same field
 Good communication in English and Kiswahili
 Kenyan Citizen.
3.5.4 Remuneration
The Assistant Manager/Designs Assistant will be entitled for a monthly basic salary of Ksh.13,000.00

3.5.5 Accountant
The business will employ one accountant who will be responsible for all the financial matters of the business
activities. After sometimes, the business will employ a cashier who will relief the Accountant some duties. The
accountant will be answerable to manager.
3.5.6 Duties and responsibilities
o Responsible in determining financial forecasts of the business.
o Monitor expenditure, payments and ensure that funds are properly utilized.
o Keeping stock inventory.
o Stock control and purchasing products when the reorder level is due.
o Documenting all aspects of the business finances and other records
o In charge of bank transactions including cashing cheques, depositing cash and withdrawals.
o Responsible for internal and external enquiries related to the business
o Responsible for paying the staff salaries
o Typing of all the correspondences and responding to the urgent matters on behalf of the manager.

3.5.7Qualifications
o Holder of CPA1 certificate
o Experience of at least 3 years in the same field.
o KCSE Grade C or equivalent
o Good communication in English and Kiswahili
o Must have certificate of computer from a recognized institution
o Certificate of good conduct

3.5.8Remuneration
We shall have one Accountant will earn a monthly basic salary of Ksh.12,000.00

3.5.9 Marketing Team

These are persons who will promote the transfer of goods and services from the producer and provider to the
consumer. As well as the transacting between the business and its customers whereby services and/or products
are provided in return for payment. Tamia Designers will have one (1) person marketing and one (1) in sales
department. Sales will foresee the activities and resources of the business.
3.5.10 Duties and responsibilities
o Designing advertisement and commercials for various media
o Organizing for exhibitions
o Sourcing of new clients
o Presenting proposals to clients and doing follow ups with them.
o Maintaining good public relations with customers to ensure good relationship.
o Doing customer survey i.e. finding out from them what they like and areas that need improvement in the
services offered.

3.5.11 Qualifications

o Holders of certificate in sales and marketing

o KCSE Grade C-
o Between 25-30 years
o Good communication in both written and spoken English and Kiswahili
o Certificate of Good Conduct

3.5.12 Remuneration
Tamia will engage two(2) persons in marketing and sales department who will earn a monthly basic salary of Ksh.10,000
each.

3.5.13 Messenger
The messenger will be in charge of the reception desk and deliveries. The job entails general cleaning and
running errands. Directly reports to the site manager.

3.5.14 Duties and Responsibilities

o In charge of delivery of letters and quotations to clients.
o Receiving calls at the reception desk.
o Maintaining a visitor’s log book.
o Keeping a record of outgoing calls.
o Maintaining a delivery book.
o Opening and closing the premises.
o Cleaning the office including dusting furniture and equipment.
o Making tea.

3.5.15 Qualifications
o ‘O’ Level certificate – grade ‘ D’
 o Fluent in Kiswahili and English
o Certificate from Department of Public Health - Physically and medically fit
o Certificate of Good Conduct
o 30 – 45 years of age

3.5.16 Remuneration
The business one (1) messenger who will earn a monthly basic salary of Ksh.7,500.00

3.5.17 Casuals
These will be hired by the enterprises on casual basis which will be temporary to assist in any overwhelming
work. They will directly report to the Assistant manager.

3.5.18 Duties and responsibilities

o Maintain cleanliness in and around the premises grounds
o Offloading materials from delivery van.
o Packing the finished clothes for delivery
o Maintaining a delivery book
o Running simple business errands.

3.5.19 Qualifications
o Form four certificates – grade ‘D’
o Certificate of Good Conduct
o Basic knowledge in business
o Be able to communicate well in English and Kiswahili

3.5.20 Remuneration
Tamia Designer will engage two (2) casuals who will earn a monthly basic salary of Ksh.5,000.00 each.
NB: Salaries in cadres will be reviewed once the business picks and this will depend on the team’s hard work.
Other allowances will also be considered, like house allowance, commuter allowance.

Summary of Salary Structure

No. of Salary per
Designation Employees Month (Kshs.) NHIF NSSF Net Pay
Director 1 20,000 200 100 17,000.00
Manager/Designs Assistant 1 13,500 160 80 13,260.00
Accountant 1 12,500 140 80 12,280.00
Marketing team 2 20,000 240 120 19,640.00
Messenger 1 7,500 80 60 7,360.00
Casuals 2 10,000 80 60 9,860.00
TOTAL 8 83,500 900 500 69,400.00

3.6 RECRUITMENT, TRAINING AND PROMOTION

3.6.0 Introduction
Recruitment is a fundamental management of human resource function in an organization. It involves locating
and attracting potential employees to apply for certain jobs in the organization. It is not employing or
employment but search for qualified people to apply for existing job positions or newly created ones.

3.6.1Recruitment
Recruitment is the process of attracting job candidates with the right characteristics and skills to fill job
openings. The recruitment process for the Tamia designs employees will be conducted by the manager after
advertising for the vacancies. This will be done after potential employees have first sent out their application
letters after which the selected ones will be invited for the interview.
Recruitment of employees will be done in various ways: adverts will be through local daily’s, meetings and
adverts also placed at strategic places e.g on gates of churches, learning institutions, shopping mall notice board
etc. This will be done at least one month before the commencement of the business.
All interested candidates will apply to the manager. The applicants will be short listed and those successful will
be notified through their postal addresses/phones two weeks prior to the commencement of the business. The
appointment letters among other things will indicate the salary and terms of payment and job specifications. The
total cost of recruitment will be Ksh.10,000/=. The buget cost for the recruitment exercise is as follows:
Expenditure
Description Date (Ksh)
1 Advertisment 15 March 2016 3,500.00
2 Interviews 25 June 2016 2,400.00
3 Appointment/Recruitment 2 December2016 2,500.00
4 Miscellaneous - 1,500.00
Total 10,000.00

The owner of Tamia Designs will look for a recruitment consultant to assist in getting the qualified staff for
various the posts. As for the watchman, she will hire a watchman from cornerstone Security Firm.

3.6.2 Training
Training is any procedure intended to foster and enhance learning among employees. Training is a process of
learning a sequence of programmed behaviours. It is the application of knowledge which gives an awareness of
the rules and procedures to guide employees’ behaviour.
Employees will be given ample opportunity to become oriented to the firm and then later they will be trained
and developed in areas of customer care to start with before moving further to their areas of specialization. The
employees will also be having induction courses i.e. on the job training. They will be trained on customer care,
stress management and basic computer skills. These will be arranged with professionals in those areas by the
management and will be done yearly

After recruitment of employees, they will undergo induction training. Induction training is arranged internally
for new employees to be introduced to the firm and to the job. A new employee must be shown where his place
is in the organization.
The induction course which will last about one week will cover:-
o Brief history of Tamia designs Ltd
o The products, present organization and the work of different personnel and sections
o The rules of working, safety and health regulations
o Human resource policy regarding discipline, education and training at the expense of the organization
and promotion, holidays and date of payment of salaries and wages

3.6.3 Promotion
Promotion is a change of assignment from a job at a lower level to another at a higher level within the
organization. It will be based on merit and qualification. This will be determined by the regular assessment of
employees’ performance. Promotion will therefore be awarded in terms of salary increment. This will depend
on an employees work output and the profits the firm will have made within a particular year.

3.6.3.1 Remuneration and Motivational Incentives

For employees to reach their maximum and do their best they have to be motivated. Sound remuneration and
incentives scheme ensures that business is developing because the workers take the business as though it was
their own. Tamia designs intend to offer the best to its employees. This will be done though giving the
employees special staff prices which will be lower compared to other customers. Annual parties and rewards to
the best performer, transport allowances, improved working environment, training and promotion and medical
allowances. Communication between top management and employees will be vital for smooth running of
business through regular meetings, notices, memos and suggestions through the suggestion box.
Remuneration
Remuneration refers to the total reward that an employee or worker gets in return to his/her output to an
employer. This includes the basic salary and other benefits. Tamia designs will offer satisfactory salary which
it can be able to afford. The salary will differ from highest to lowest employees and it will regulate the salaries
as becomes stable.

Incentives
Incentives can be defined as payments linked to the achievement of previously set targets that are designed to
motivate people to achieving higher levels of performance. The targets are usually quantified in such terms as
output or sales. Tamia Designs will offer bonuses at the end of each year depending on how it has performed.
Transport facilities will be offered if and when the employees work late. Insurance cover will also be bought
for the employees. The manager will organize for the employees to have 10.00 O’clock and 4.00 O’clock tea at
the place of work and also lunch. This will keep them to work the whole day without having to close the
business and thus it will stimulate them to work harder.
The employees will be offered salary advance on the 15th day of every month and they will be given a day off
every two fortnight each.

Motivation
The employees will be given incentives to motivate them to enable the business expand. These will include
overtime allowances i.e. extra payment for working on Sundays and Public Holidays, hours worked after five
o’clock and during weekdays. Salary advance will be given to employees on request. When the business
makes a high profit, the employees will get bonuses. The management will arrange for a bonding party for the
entire employee at the end of every year. This will improve the relationship among them.
The employee will be allowed to register with Tamia designs Sacco which will help them make some savings
which can earn them loans which will improve their living standard.

Discipline
Discipline procedures will be taken against any employee who violates the firm’s ethic. The management will
have its internal disciplinary committee to handle such issues. The employees affected will be summoned by
the management and served with a warning letter and ask to write a show cause letter why he/she should not be
dismissed. If the employee reform’s he/she will be retained with a stern warning that if he/she repeats the same
offence will be dismissed from his/her job and will not be entitled to any benefits.

Performance Appraisal
For the employees to be remunerated appropriately, the company will consider using job demand comparison
method. The attributed to perform direct jobs are compared, reporting time and customer relations. Finally,
monetary values will be assigned directly to each of the attributes as demanded by the job. Each attribute will
have a point scale of 1 -3 as below.
1 - Low
2 - Average
3 - High

The table below illustrates an example of an appraisal

Employee Efficiency Reporting time Customer
relations
Anthony Mwai 2 4 4
Caroline Akinyi 4 3 5
Dennis Mutuma 5 2 3
Wycliffe Wafula 6 2 2
Rachael Mwende 3 3 5

Communication channel within the business

There will be a two way communication channel within the business, both upward and downward
communication. Downward communication will be from the Manager to the employees whereas upward
communication will be from the employees to the Manager. This type of communication will give the
employees freedom of expression where there are issues to be tackled and need prompt attention.

Terms and conditions

The mode of payment will be through cash. All the employees will be encouraged to have bank accounts in
future for ease of payments. Employees will also be encouraged to contribute towards NHIF for medical cover
and appropriate pension schemes for retirement benefit.

Staff welfare
Lunch will be provided to the employees. This will be to ensure that employees are always within the working
area. While taking their meals together, employees will exchange views on their work and as such can assist
one another in areas where one requires assistance. The exchange of views is healthy and may lead to business
progress.

Legal Requirements of Business and Employees

Tamia Designs Ltd will require a Trading License in order to operate. The license will be obtained at a fee of
Kshs.7, 630.00 which will be issued by Nairobi County, Licensing Section. A permit will also be required to
show that Tamia designs have been licensed to deliver and deal in the designing business. The permit will be
renewable on a yearly basis and it will be issued by the Nairobi County offices.
The business will also be affected by the County laws. Garbage will be disposed of by hired service providers
on daily basis at a fee payable to them monthly. This will enable proper hygiene and clean environment.

3.7 EVALUATION AND DEVELOPMENT

Evaluation is an assessment of performance of employees, product and services.

3.7.1 Employees’ Evaluation

Tamia Designs will evaluate its employees through performance appraisal which will be done yearly. For the
employees to be remunerated appropriately, the company considers using job demand comparison method. The
attributes to perform direct jobs are compared, reporting time and customer relations. Finally, monetary values
will be assigned directly to each of the attributes as demanded by the job. Each attribute will have a point scale
of 1 -3.
1 - Low
2 - Average
3. - High

3.7.2 Product/Service Evaluation

Tamia will assess its service performance by contacting the customers either face to face directly or through
phone calls to establish their satisfaction. The customers will be looking for quality services and hence they
expect the best. The services will be affordable i.e. customer friendly. The business will be open from 7.00
a.m. – 7.00 p.m. This is because most of the employed people pass through the Street when going to work in
the town Centre. The business will also not close during lunch hour i.e. from 1.00 p.m. to 2.00 p.m. because
many of our customers who will be working are expected to visit the business during this hour.

3.8 SUPPORT SERVICES

The business will get the following services from various places depending on how well they offer the services
to the business.

3.8.1 Telephone services

Telephone and postage services will be offered by Telkom Kenya for effective communication with the
suppliers and customers. Mobile phone providers will be Safaricom and Celtel. This will make it cheaper to
communicate with clients who have subscribed for their services. A Deposit of Kshs.2,500 for Telkom and
mobile phone credit cards worth 2,000/= per month will be required for communication purposes.

3.8.2 Electricity
The premises already have electricity supplied by Kenya Power and Lightning Company (KPLC). A monthly
bill will be paid to them depending on the company’s consumption. This will enable the business use computers
and for lighting purposes. The deposit required will be Kshs.2,500=/

3.8.3 Water
Water will be obtained from Nairobi Water and Sewage Company and a monthly bill will be paid depending on
the company’s consumption. The deposit to be paid will be Kshs.1,000/=.
Nairobi Water and Sewage Company
P.O. Box 20015-00100
Nairobi

3.8.4 Banking services

They will be provided by Equity Bank which is along Kenyatta Street. They offer loans at very fair interest
rates and a minimum operating balance is 1,000/= for a savings account.
Equity Bank
Ridgeways Branch
P.O. Box 9300-00100
Nairobi

3.8.5 Transport
The business will purchase a second hand van for all its deliveries, and when the business will need to deliver in
large quantities, vehicle such as a canter (covered) will be hired. The van will be bought at Kshs.450,000/= by
Tamia Designers.

3.8.6 Insurance cover

Tamia Designers will engage National Hospital Insurance Fund (NHIF) for medical insurance cover for its
employees.
The employees will contribute a fixed sum to the NHIF, which will be deducted from their salaries. The
maximum contribution stipulated is Kshs.500/= per month. These contributions are meant to offset the costs of
medical treatment but they only cover a fraction of actual costs.
3.8.7 Auditing services
Tamia Designers will consult Mugambi Auditing firm to audit its accounting and bank transitions. The auditing
will be done once a year, in June. The business auditors will be involved in the designing and implementation
of control standards, programme check and clerical control.
All the accounting and security systems purchased will be checked to ensure adequate audit trial. Auditing
services will prevent forgery and theft.
Mugambi Auditing Firm
P.O. Box 30044-00100
Nairobi

3.8.8 Consultancy
As the business grows, it will require advice on management from consultants to enable Tamia Designers know
areas that needs improvement in terms of growth and profits. The business will therefore seek the services from
small business skill consultants, which is a reputable firm and are situated in Milestone House within
Ridgeways at consultancy fee of Kshs.200 per hour when the services are needed.

3.8.9 Legal services

In Kenya every business has to be governed by laws, regulations and decisions. Tamia Designers will adhere to
rules and regulations as required by the government to ensure protection of the business, workers and
consumers. The Manager is required to be conversant with these laws and regulations. Tamia Designers will
therefore in its business engagement, seek legal services from Muchemi and company advocates as their legal
experts wherever they are making any decisions.
Muchemi and Company Advocates
P.O. Box 20090-00100
Nairobi

3.9 LICENCES, PERMITS, GOVERNMENT REGULATIONS

3.9.1Name Search
Tamia Designers will obtain approval for the company name from the Registrar of Companies at Kshs.700/=.
This will be in order to avoid the company using a name that already exists for another business.

3.9.2 Declaration of Compliance (form 208) is signed before a Commissioner of Oaths

The advocate incorporating will be required to sign a Company Form 208 which accompanies the documents to
the Registrar of Companies. This form is a Declaration of Compliance with the requirements of the Companies
Act. A fee of Kshs.1,200/= is required.
3.9.3 PIN Number
Registration with the Tax Department for a PIN Number will be done at the Kenya Revenue Authority Offices
at Times Towers Building at no charge.

3.9.4 Business Permit

A business permit will be obtained from the Nairobi County Government offices, Licensing Department at a
cost of Kshs.3,000/=.

3.9.5 Company Seal

A company seal will be obtained from the Attorney General Chambers at a fee of Kshs.2,400/= after the
certificate of incorporation has been issued.

3.9.6 National Social Security Fund (NSSF)

NSSF provides the employee with a lump-sum retirement benefit. Tamia Designers will pay a standard
contribution of approximately 1% of salary subject to a maximum of Kshs.450/= per month. The contribution
will be deductible from the employee’s salary.

3.9.7 National Hospital Insurance Fund (NHIF)

The employees will contribute a fixed sum to the NHIF, which will be deducted from his/her salary. The
maximum contribution stipulated is Kshs.500/= per month. These contributions are used to offset the costs of
medical treatment but they only cover a fraction of actual costs.
 CHAPTER FOUR

4.0 OPERATIONAL PLAN

These are step by step procedures that the business shall engage in producing products and services. It is an
explanation of the personnel that will be offering the service, the facilities and the strategies the business
shall employ.

Tamia Designers Ltd being largely a product and service company, stock will highly be minimized. In most
cases the business will supply products to its potential customers who are around Ridgeways and its
environs. The products sold will be of high quality and will be transported to customers by use of the
business van, or in case of large supplies the business will hire a canter from Sosi Company located along
Kiambu Road before the business is able to buy a large vehicle. When customers place an order, the
products (Clothes) will be transported to them directly.

4.1 PRODUCTS/SERVICES DESIGN AND DEVELOPMENT

The business is going to choose and employ the staff who will act as the suppliers and the manufacturers in
the business. They are going to use a van to supply the goods to the customers. The employees will design
the garments from the bought material and pieces of cloth.

Tamia Designers Ltd will have a unique business logo which will be shown on the business documents like
business letter heads, business card and on advertising and direction posters.

Tamia Designers Ltd

P.O Box 1540-00900 TamiaDesigners
Nairobi
Tel: +254 20-2689254
Cell: +254 0726771077
Email: freda.jacqueline1@gmail.com “Your happiness is our pride”
Website: www.tamiadesigners.com
Tamia Designers will endeavor into choosing fashion design software, like digital fashion Pro, virtual fashion,
fashion toolbox, which make things easy and which will be affordable and suitable for making all types of
clothes in terms different fabrics. The business will be careful in setting the right prices which every customer
will be willing to pay for as well as finding a business partner who can take care of the sales side of the business
while the director get on with the creative stuff.

Tamia designers will work on developing its own recognizable style by developing skill and instincts in order
that the business can create its own successful style by applying the importance of brand identity and using
styles to make its designs more unique than others in the market. The business will develop a plan for fashion
design training and courses for its employees which will offer different training options available for fashion
designers. The business will seek to find target market in the fashion industry by identifying the ideal customer
base for our new fashion business and also will seek legal options that the business will use to protect its fashion
designs from being copied.

Tamia Designers will aim at making clothes to fit all sizes, i.e. adjusting the clothing designs for different sized
customers and on the advantages of designing for larger people. The business will seek to understand workplace
clothing so that it can get involved in designing workplace wear for all kinds of different corporate and factory
environments. To make our designs more unique and relevant, Tamia will seek to have a signature fashion print
and give a unique look for our fashion designs and also keeping records of our patterns and fabrics.

Tamia designers will employ basic equipment for starting up the business and making good quality purchases
by choosing the right the right sewing machines, right workspace, developing staff skills employing new staff,
learning how to store and care for fabrics. The business will also seek to meet demand for its fashion designs by
involving contractors in order to manage fluctuating demand for its fashion designs. Tamia will adjust to the
changing market by taking necessary measures like being well equipped with necessary tools and skills in order
to survive in challenging economics times and also being able to raise funds for the business. Tamia should also
be able to predict its future business income and the pros and cons of taking a salary and understand VAT and
tax issues. Tamia will also create its own fashion business website and getting its designs featured in press by
communicating effectively with the press and drawing media attention to its fashion design business. The
business will also be holding promotional events, i.e. when the business will be planning to launch a new
fashion. The business, through the marketing team will do extensive marketing by researching, targeting and
running marketing campaigns for its fashion business. Tamia will be using social networks to boost the business
on many levels, using fashion trade shows to promote the designs to retailers and customers who attend the
trade shows and also using professional fashion photography.
Tamia Designers will design, construct and distribute its own fashion catalogue to promote its fashion designs,
develops logos and labels for the business as well as persuading retailers to stock our designs and aim at
keeping them coming back for more. The business will be selling clothes on market stalls to promote and sell its
products, and also selling online through its website. The business will aim at satisfying customer needs and
encouraging return of customers. Tamia will also be using online auctions in order to sells clothes successfully
and advertise its fashion design business.

4.2 PRODUCTION TOOLS AND EQUIPMENT

The business will require various tools and equipments to make the business activities to move smoothly

4.2.1 Tools and Equipment

Tamia Designers Ltd tools and equipments will include:-
Table: Tools and Equipment
Item Quantity Capacity Unit Cost Total Supplier
(Ksh) Cost
Tape measure 3 - 100 300 Cloths dealers ltd
Clear ruler 2 - 150 300 Cloths dealers Ltd
Sewing guage (6” 2 - 300 600 Cloths dealersLtd
metal rulers)
Dressmaker shears 1 - 1,000 1,000 Nakumatt Supermarket
Paper scissors 1 - 550 1,100 Nakumatt supermarket
Embroidery 1 500 500 Cloths dealers ltd
scissors
Scalloping shears 1 500 500 Nakumatt Supermarket
Seam rippers 1 450 450 Cloths dealers Ltd
Printer (small) 1 4,000 4,000 Rotek technology Ltd
Mobile Phone 1 7,500 7,500 Rotek Technology Ltd
Photocopier 1 3,500 3,500 Rotek Technology Ltd
Pins 1 500 500 Nakumatt Supermarket
Calculator 1 1,200 1,200 Savannis Bookshop Ltd
Hand sewing 4 pkts 90 360 Cloths Dealers Ltd
needles
Industrial iron 1 2,500 2,500 Cloths dealers Ltd
Steamer 2 1,100 1,100 Cloths dealers Ltd
Iron cleaner 2 500 500 Cloths dealers Ltd
Clothes brush 2 200 400 Cloths dealers Ltd
Sleeve roll 2 200 400 Cloths dealers Ltd
Electric Sewing 3 12,000 36,000 Cloths dealers Ltd
machines
TOTAL 62,710
4.2.2 FURNITURE
UNIT
TOTAL
ITEM QUANTITY CAPACITY COST SUPPLIER
COST(ksh)
(Ksh)
Printer table 1 2,000 2,000Tuskys S/market
Computer table 1 - 3,000 3,000Viable Décor Ltd
Office tables 4 - 1,500 4,500Viable Décor Ltd
Ironing table 1 - 1,400 1,400Viable Décor Ltd
Office Chairs 10 - 500 5,000Viable Décor Ltd
Workshop table 2 1,200 2,400Viable Décor Ltd
Executive Desks 1 800 800Viable Décor Ltd
Executive Chairs 4 500 2,000Viable Décor Ltd
Receptionist Chair 1 700 700Viable Décor Ltd
Ironing board 1 1,050 1,050Tuskys
Supermarket
Needle velvet board 1 - 1,200 1,200 Cloths Dealers Ltd
Total 24,050

4.2.3 CONSUMBLES
Item Quantity Unit Cost Total Cost Supplier
(Ksh) (Ksh)
Dressmakers tracing 10 rolls 250 2,500 Cloths Dealers Ltd
paper
Tailors chalk 1 pkt 300 300 Cloths Dealers Ltd
Tailors wax 2 bottle 600 1,200 Cloths Dealers Ltd
Spray bottle 1No 350 350 Cloths Dealers Ltd
Pencils 1 pkt 1200 1,200 Savannis bookshop
Note Books 5No 250 1,250 Savannis bookshop
Pen 10No 10 100 Savannis bookshop
Books (hand books) 5No 100 500 Savannis bookshop
Printing papers 5 reams 100 5,000 Savannis bookshop
Printer cartridge 2No 3,500 7,000 Rotek Technology Ltd
Business Rubber Stamp 1No 800 800 Seal Honey Ltd
Cash Register 1No 1,000 1,000 Savannis bookshop
TOTAL 21,200

4.2.4 OTHER EXPENSES

Cost Per Month
Item Supply
(Ksh)
Rent Milestone agency 15,000
Water Nairobi water and sewerage 1,000
Electricity Kenya Power Lighting Co. 2,500
Telephone Telkom 4,000
 Transport Sosi transporters 4,000
Miscellaneous 2,000
TOTAL 28,500

4.3 LAYOUT PLAN

The premises are in a permanent building with rooms for renting. The business is on a leased room facing
the front so it is an open place where it can be accessible and visible to everyone. Passersby will be passing
through Tamia Designers Ltd as they go about on their businesses.

The business will operate in a five roomed premises to minimize on the cost of rent. These will include the
Director’s Office, Managers/Designs Assistant office where all transactions will be handled, the workshop
cum store where products and other equipment will be stored after purchasing. The workshop will also be
used in the production process. There will also be another room for the Marketing team and a section for
the Accountant. The front area will be occupied by the Receptionist. The space will be adequate since there
are not so many activities. The area also has a display window where finished garments will be displayed.

The business premises has room for expansion as the back side is still under construction and we intend to
take more rooms as soon as the building will be completed in the next two years.
The business proposed organizational structure is shown in the next page.
The Figure below illustrate the Proposed Layout for Tamia Designers

Toilets
Kitchen
Director’s Office
Messenger
Reception Office

Manager/Designs Store
Assistant office

Production/Workshop
Accountant Area

Sales and Marketing

Departments Display Room

Customer’s Reception
and Service Area Washrooms
 Parking Area

4.4 OPERATIONAL PROCESS

These are the operation processes that the business will undertake from the time of producing the goods till
the time they reach the customer. This will include placing orders, transportation, delivering of goods,
packing and display.

The first production of our clothes will be put on display one day before the official opening of the premises
for the invited people to see and will end attracting potential customers. The number of pieces bought will
be counted and recorded in the delivery book by Marketing team to enable the business make proper and
timely decisions in amount of production.

Deliveries will be made immediately to the respective customers. Payment can either be made on delivery
or on order depending on the agreement that will have been reached. If there are finished clothes for sale a
few will be put on display. The supervisor will regularly take stock of the number of pieces remaining so as
to place orders in good time.

The counter will be placed at the receptionist desk near the exit so that the customers can pay after selecting
the dresses or outfits they want to buy. The cash register will be controlled by owner of the business who is
also the Director and she will be assisted by the Accountant in her absence. The accountant will enter all the
days’ sales in the cash book.

For Tamia Designers to prosper, each aspect of production has to be taken into consideration with diverse
measures. Tamia will aim to give its staff the best so that they are motivated to perform to the best of their
abilities. The business intends to operate its business full-time 0800hrs – 0800hrs from Monday to
Saturday. For effective and proper production to take place certain steps have to be followed. The Business
will devise a method that will ensure that goods pass through proper process; from the time buying materials
up to the time of the completion.
Steps to taken in the production process is shown in the next page.
Below is the steps/production process to be followed.

Procuring Receiving and Thread cutting Initial

Materials Inspection checking
and
accessories

Tagging Final Measurement Pressing

checking checking

Repairs/
Alteration
Folding and Packing to Inspection of Dispatch to
Packing Box Ready garments Customers
for delivery

Below are some pictures of Tamia designs materials ready for production

Production area as displayed below

Cutting process

Below are some of finished designs by Tamia Designers

Models displaying some design

These are finished garments on display and ready for sale.

4.5 PRODUCTION FACILITIES AND EQUIPMENT

These are the resources needed by the business to ensure the smooth flow of work. The purchase of
equipments to be use will be done prior to the commencement of the business and ensuring the business
runs without any interruptions.
There are long-term assets which will help the business to prevail.

Tables: The business will have 4 office tables which will be used by the Director, Designs Manager,
Accountant and Receptionist. There will be 2 workshop tables which will be used for placement in the
workshop at the time of production processing. The other tables will be a computer table which will be used
to place the computer in the office.

Chairs: There will be many types of chairs which will be used in the enterprises e.g office, visitors chairs,
reception are seats to be used by the clients who will visit the business premises while awaiting the services,
etc

Van: This is the vehicle which the business will use to transport Products to their destinations.
Scissors: these will be used for cutting into pieces of clothes in different designs.

Assets Capacity
1 Executive tables (medium) 4
2 Reception desk (medium 2
3 Workshop table (Large) 2
4 Executive chairs (orthopedic) 4
5 Reception chairs (ordinary) 2
6 Clothes cabinets (Large) 2
7 Visitors chairs 4
8 Reception seats (7 seater set) 1
9 Van 1
10 Kitchen table (small) 1

Capacities utilization

Tamia Designers will be expecting to make 5 – 8 pieces of clothes daily.

Deliveries will be made immediately to the respective customers. Payment will either be made on delivery
or on order depending on the agreement that will have been agreed upon.
When clothes are ready for sale they will be put on display and those that have been ordered will be
delivered to customers immediately. The supervisor will regularly take stock of the number of clothes that
have been sold. Tamia Designers will be targeting to complete 5-8 pieces per day. That means for a month
the business will be making and completing approximately 170 pieces per month. If calculated in Kshs it
will be 170 @ Ksh 3000/= each (selling price) is equal to Ksh 510,000/=. Thus a good profit per month.
 Tamia designers will also expect to buy clothing materials in bulky after a week or so. This will be ensure that the
business meets the production rate of making 5-8 pieces of clothes to meet the demands of our clients

4.5.1 Depreciation

The business assumes that some of the assets will depreciate by 10% per year. The vehicle needs to be
serviced after the end of its service period to make it serve the business well. This will make it possible for
the business to use one vehicle for a period of 10 years. Therefore this kind of depreciation will be used in
production process. Other assets include the computer, tables, chairs, cabinets, iron boxes.

4.6. RULES AND REGULATIONS GOVERNING THE OPERATIONS

The Proprietor will see that laws are maintained and adhered to as stipulated by the government. Licenses
and other matters related to the workers will be dealt with accordingly so as to put off any interference to
breach of the law.

If Tamia Designers breaches conduct laid by the government, the business will render being penalized. In
case employee’s health affairs are not looked at, it means non-compliance to the already stipulated
regulations and therefore the enterprise will be liable to heavy fines. This will lead to great loss in finances
which could have been used to enhance and develop the business.

4.6.1 Government Regulations

The proprietor of the business will be familiar and adhere to the following government regulations that will
affect the business.

Business registration – The business will be registered under the name Tamia Designers Ltd according to
registration of companies Act.

Trading License – A trade and business license will be acquired and renewed every year in order to
operate smoothly. This will be applied from the Ministry of Trade and Industry at a fee of ksh.5000/= per
year.

Public Health Act cap 242 – Under this Act, the Workers’ Health will be taken into consideration. This
includes providing proper sanitary facilities and good working conditions. Also employees will undergo
vaccination through the Department of Public Health. This will prevent any tetanus germs. Before
 Operations begin, the business premises will be painted and then inspected by Department of Public Health
who will in turn issue a certificate of compliance.

Statutory deductions: NHIF, NSSF and PAYE which largely depends on salary scale and will be
deducted directly from the employees pay and remitted directly to the respective organizations. This will
be done monthly without any delay.
Value Added Tax (VAT) – This tax will be surrendered to the Kenya Revenue Authority yearly.

Environmental Regulations – Tamia Designers will place litter bins at appropriate places within the
premises which indicate “keep the environment clean”. It will also have a disposal pit which will be used
for burning the remains of material pieces and other dirt from the production area, office papers, kitchen
litters.

Business Permit
A business permit will be obtained from the Nairobi County offices, Licensing Department at a cost of
Kshs.1,500/=.

Company Seal
A company seal will be obtained from the Attorney General Chambers at a fee of Kshs.2,500/= after the
certificate of incorporation has been issued.

4.6.2 Internal Regulations

For Tamia Designers to run smoothly, rules and regulations will be stipulated so that workers may work
according to the business laid down rules. Tamia Designers intend to adopt the following regulation code
which supposedly is adhered to by all employees regardless of their ranks:

o Every employee must abide by the business safety regulations.

o All member employees will respect the property of the business.
o Every employee will act responsibly in discharging his/her duties
o Employees will be warned and reminded that the above coded rules are very paramount for the
prosperity of the enterprise and anybody who breaches them tight measures despite post in the
enterprise will be taken against them.

For the codes to be effected fully each employee will sign a form as a show of acceptance and
allegiance to them.
PIN Number
Every employee will be expected to obtain a PIN from the Tax Department at the Kenya Revenue
Authority Offices at Times Towers Building at no charge. All employees will be liable for monthly
deductions for purpose of itax remittance.
 CHAPTER FIVE
FINANCIAL PLAN

5.0. INTRODUCTION

A Financial Plan determines the financial position of the business and requirements of the business in terms of
money available, how much to be spent.

It is important to plan for financial in order to obtain adequate funds which will sustain the business and enable
it to achieve maximum profits and improve the business value. This may include;
(i) determining capital requirements
(ii) determining capital structure
(iii) framing financial policies with regards to cash control, lending and borrowing
(iv) inadequacy of finances
(v) sourcing

5.1 FINANCIAL REQUIRMENTS (START UP CAPITAL)

The proposed capital required will be Ksh.800,000.00 from personal savings for Tamia Designers to commence
its operations. However, there is a proposed safety net of a loan facility of Kshs. 2,000,000.00 in case of a cash
shortage as shown below.

No Source Amount
(Ksh)
1 Harambee Sacco 1,000,000.00
2. Barclays Bank loan 1,000,000.00
3. Personal savings 800,000.00
TOTAL 2,800,000.00

5.2 PRE-OPERATIONAL COSTS

  These are the costs incurred before the commencement of the business operations. They include cost of
all items that must be purchased or paid in advance and cost of all preparations and installations that are
necessary before the operations start.

ITEM/OVERHEAD COST (KSHS.)

Renovations- paintings 10,000.00
Tools and Equipment 62,710.00
Furniture and fittings 24, 050.00
Consumables – eg. dressing making
tracing papers, pins, scissors, tailors chalk,
pencils, notebooks, pens, printing papers, 21,200.00
etc
Water 1500.00
Legal Fee 2,000.00
Registration ans name search 8,330.00
Licenses/Permits/certificates 7,200.00
Logo 5,000.00
Company seal 2,500.00
Advertisement and promotion 133,500.00
Transport 4,000.00
Rent 15,000.00
Business and Trading licence 9,500.00
Telephone 4,000.00
Electricity 2,500.00
Stationeries 5,000.00
Recruitments expenses 10,000.00
Miscellaneous 2,000.00
Total 305,940.00

5.3 WORKING CAPITAL

This is the amount of capital required for the day to day running of the business. It means estimating how much
the business required paying for the expenses incurred by the business.

Working Capital = Current Assets – Current Liabilities

CURRENT ASSETS
Ksh.
Cash in hand = 60,000.00
Cash at Bank = 1,000,000.00
Stock = 200,000.00
Debtors = 200,000.00
Prepayments = 50,000.00
TOTAL = 1,510,000.00 1,510,000.00

CURRENT LIABILTIES
Ksh.
Creditors = 80,000.00
Accrues = 30,000.00
Short term loan = 60,000.00
TOTAL = 170,000.00 170,000.00
1,340,000.00

5.3 PROFORMA INCOME STATEMENT

TAMIA DESIGNERS LTD. - PROFORMA INCOME STATEMENT

DESCRIPTION 2017 2018 2019

Sales
6,120,000.00 6,120,000.00 6,120,000.00

Opening Stock
127,500.00 127,500.00 127,500.00
Purchases
3,060,000.00 3,060,000.00 3,060,000.00
Goods available for sale
3,187,500.00 3,187,500.00 3,187,500.00
Less Closing Stock
 75,000.00 75,000.00 75,000.00
Cost of Sales
3,112,500.00 3,112,500.00 3,112,500.00

Gross Profit
3,007,500.00 3,007,500.00 3,007,500.00

Operating Expenses

Businss Permit
3,000.00 3,000.00 3,000.00
Trade license
5,000.00 5,000.00 5,000.00
Recruitment expenses
10,000.00 10,000.00 10,000.00
Consumables
234,600.00 234,600.00 234,600.00
Communication
24,000.00 24,000.00 24,000.00
Electricity
30,000.00 30,000.00 30,000.00
water
12,000.00 12,000.00 12,000.00
Telephone
48,000.00 48,000.00 48,000.00
Transport
48,000.00 48,000.00 48,000.00
Advertising
138,504.00 138,504.00 138,504.00
Payroll Expenses
990,000.00 990,000.00 990,000.00
Insurance of Motor Vehicle
20,250.00 20,250.00 20,250.00
Repairs and Maintenance
24,000.00 24,000.00 24,000.00
Depreciation - Motor Vehicle
45,000.00 45,000.00 45,000.00
Depreciation - Furniture and
Equip. 8,980.00 8,980.00 8,980.00

Total Expenses
1,641,334.00 1,641,334.00 1,641,334.00

Net Profit Before Tax

1,366,166.00 1,366,166.00 1,366,166.00

Tax Provision (16%)

218,586.00 218,586.00 218,586.00

Net Profit After Tax

1,147,580.00 1,147,580.00 1,147,580.00

5.4 PROFORMA BALANCE SHEET

5.5 PROJECTED CASHFLOW STATEMENT
5.6 BREAK EVEN ANALYSIS

INCOME STATEMENT FOR YEAR 1 ( 2017 )

DESCRIPTION AMOUNT

Businss Permit 3,000.00

Trade license 5,000.00
Recruitment expenses 10,000.00
Payroll Expenses 990,000.00
Insurance of Motor Vehicle 20,250.00
Depreciation - Motor Vehicle 45,000.00
Depreciation - Furniture and Equip. 8,980.00

TOTAL FIXED COST 1,082,230.00

Consumables 234,600.00
Communication 24,000.00
Electricity 30,000.00
water 12,000.00
Telephone 48,000.00
Transport 48,000.00
Advertising 138,504.00
Repairs and Maintenance 24,000.00

TOTAL VARIABLE COST 559,104.00

BEP (Break Even Point) is where total fixed costs are equal to total variable cost
Simply put, it’s the position where the organisation is making no profits or losses

The following formula is used to calculate the break even point

BEV = fuixed costs

revenue per unit - variable cost per unit

BEV = fixed costs

unit margin
total revenue 1,366,166.00
total units produced 2,040.00

revenue per unit = 1,366,166.00 / 2,040.00 = 670.00

Therefore reveneu per uni = 670.00

Variable cost per unit = 559,104.00 / 2,040.00 275.00

BEV = 1,082,230.00
670.00 - 275.00

BEV = 2740 Units

 APPENDICES

Appendix I Account opening

Appendix II Business permit application
Appendix III Invoice
Appendix IV Cash sale
Appendix V Appraisal form
Appendix VI Sample application for employment
 CONCEPTUAL PLAN

CONCEPTUAL MAP
EXECUTIVE BUSINESS MARKETING ORGANIZATIONAL OPERATIONAL FINANCIAL
SUMMARY DESCRIPTION PLAN PLAN PLAN PLAN
 Business  Introduction:  Introduction:  Organizational plan  Introduction:  Introduction
Description Business marketing plan o Introduction operational plan  Finances
description and importance  Organizational required
 Marketing Plan  Business name o overview structure  Product/service  Pre-operational
 Business  Organizational chart  Production tools costs
 Organization assumptions  Customers  Management tool and equipment  Working
Plan  Primary objectives o Domestic  Recruitment, capital
 Mission statement customers training and o tools and  Proforma
 Operational  Finance/sponsor o Institutional promotion equipment income
Plan  Business ownership customers o recruitment o furniture statement
 Business location o Commercial o training o consumable  Proforma
 Financial Plan and address customers o promotion s balance sheet
 Market o Transit  remuneration o other  Projected
 Infrastructure customers and expenses Cashflow
 Business venture o Importance motivational statement
 Contribution to of customers incentives  Layout plan  Break even
local community o Business  Evaluation and o chart analysis
 The industry customers development  Operational  Analysis ratios
 Growth and  Market size and o employees process
expansion trends evalution
 Competition o product/service  Production
 Competitive trends
 Pricing evaluation facilities and
 Market share equipment
 Entry and growth strategies  Support services
o pricing o depreciation
entities (strategies) o telephone
methods services  Rules and
o Sales strategy o electricity regulations
 o Advertising and o water governing
promotion o banking operations
strategies services o governing
o pricing o transport regulations
discounts o insurance cover  internal
 distribution o auditing regulations
strategies services
o consultancy
o legal services
 Licences, permits,
government
regulations
o name search
o declaration of
compliance
o pin number
o business permit
o company seal
o national social
security fund
o national
hospital
insurance fund

EXECUTIVE SUMMARY