BUSINESS PLAN

BUSINESS NAME : ALEXIZ ELECTRICAL AND ELECTRONIC

BUSINESS ADDRESS : BOX 130-40405 SARE -AWENDO

PRESENTER : JAMES OTIENO

INDEX NUMBER : 5031130056

CENTRE NAME : CAMBRIDGE UNIVERSAL COLLEGE

DEPARTMENT : ENGINEERING

COURSE : DIPLOMA IN ELECTRICAL ENGINEERING

COURSE CODE : 2601

SUPERVISOR : MADAM EUNICE

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL

IN PARTIAL FULFILLMENT FOR THE AWARD
OF DIPLOMA IN ELECTRICAL ENGINEERING

SERIES : JULY 2025 SERIES

TABLES OF CONTENTS
TABLE OF CONTENTS…………………………………………………………… …….i-ii
DECLARATION…………………………………………………………………………….iii
DEDICATION……………………………………………………………………………….iv
ACKNOWLEDGEMENT……………………………………………………………………v
EXECUTIVE SUMMARY………………………………………………………………….vi
CHAPTER ONE………………………………………………………………………………1
1.0 BUSINESS DESCRIPTION……………………………………………………………...1
1.1 BUSINESS NAME……………………………………………………………………….1
1.2 BUSINESS LOCATION AND ADDRESS………………………………………………2
1.3 FORM OF BUSINESS OWNERSHIP…………………………………………………...2
1.4 SERVICE OFFERED…………………………………………………………………….3
1.5 JUSTIFICATION OF OPPORTUNITY…………………………………………………3
1.6 GOALS OF BUSINESS…………………………………………………………………..3
1.7 ENTRY AND GROWTH STRATEGY………………………………………………...3
CHAPTER TWO……………………………………………………………………………...4
2.0 MARKETING PLAN…………………………………………………………………….4
2.1 CUSTOMERS……………………………………………………………………………4
2.2 MARKET SHARE……………………………………………………………………….4
2.3 COMPETITION………………………………………………………………………….4
2.4 PROMOTION STRATEGY……………………………………………………………..5
2.5 PRICING STRATEGY…………………………………………………………………..5
2.6 SALES TACTICS………………………………………………………………………. 5
2.7 DISTRIBUTION STRATEGY…………………………………………………………..5
CHAPTER THREE…………………………………………………………………………...6
3.0 ORGANIZATION PLAN………………………………………………………………,.6
3.1 MANAGERS AND THEIR QUALIFICATION………………………………………..7
3.2 PERSONNEL ……………………………………………………………………………7
3.3 RECRUITMENT TRAINING AND PROMOTION……………..………………….…7
3.4 REMUNERATION AND INCENTIVES……………………………………………….7

I
3.5 LICENSE,PERMIT AND BY-LAW…………………………………………………….7
3.6 SUPPORT SERVICES…………………………………………………………………...7
CHAPTER FOUR………………………………………………………………………….….8
4.0 PRODUCTION PLAN……………………………………………………………….…..8
4.1 PRODUCTION FACILITIES AND CAPACITY…………………………………….….8
4.2 PRODUCTION STRATEGY…………………………………………………………..,..8
4.3 PRODUCTION PROCESS…………………………………………………………….…8
4.4 REGULATION AFFECTING YOUR BUSINESS………………………………………8
CHAPTER FIVE………………………………………………………………………………9
5.0 FINANCIAL PLAN………………………………………………………………………9
5.1 PRE-OPERATIONAL COST………………………………………………………..….10
5.2 WORKING CAPITAL…………………………………………………………………..11
5.3 PROFORMA CASHFLOW STATEMENTS…………………………………………...12
5.4 PROFORMA INCOME STATEMENTS……………………………………………….13
5.5 PROFORMA BALANCE SHEET ……………………………………………………...14
5.6 BREAK EVEN ANALYSIS…………………………………………………………….15
5.7 PROFITABILITY RATIO………………………………………………………………15
5.8 DESIRED FINANCING………………………………………………………………...16
5.9 PROPOSED CAPITALIZATION………………………………………………………16
APPENDICES……………………………………………………………………………….

II
DECLARATION
I declare that this is my original business plan and has never been presented for any award.
Name: James Otieno
Signature…………………
Date………………………

Supervisor: Madam Eunice

Signature…………………………….
Date………………………………….

III
DEDICATION
I dedicate this business plan to my friends and family.

IV
ACKNOWLEDGEMENT
I sincerely acknowledge my supervisor, Madam Eunice who has been very supportive in
guiding me through this business plan together with the words of encouragement towards
this. My second gratitude goes to my wife who also accorded me ample time and for the
financial support towards the processing of the document.

V
 EXECUTIVE SUMMARY
Alexiz electrical and electronics is a sole proprietorship type of business whose main aim is to provide
quality and excellent services to local people. The business will be located at Siruti centre along
Awendo Odongo Her road, the business is expected to start its operations in January 2026.The target
customers will be members of the local community in siruti, which comprises of the local dwellers,
institutions like schools, hospital and churches and trainees living in the area. The reason for starting
the business due to the fact that there few similar business within the area. Available dealers are siruti
interlink electricals and okong.o electricals siruti operates for about six hours a day and lack most of
important items needed by the locals.
Availability of electricity and good road,was also a major factor considered.Alexiz electrical and
electronics will ensure that all customers gets varieties of product.Any customer that purchases from
the shop gets free Installation of gargets and compared to competitors who doesn’t offer installation
services.free transportation to customers that buy in bulk.warranty services will also be provided to
customers.All customers will also be receiving free training and demonstration of how to handle their
electrical appliances.customers will also have opportunity to have their purchased items tested before
they collect them.All products at alexiz will be priced fairly considering the high quality of
goods.The business will be advertised through posters which will be placed at different strategic
points,local radio and television channels will be used to market the business to surrounding
areas.The business will be operating on twelve hour basis to meet the needs of struggling locals and
ensure that they are served effectively.Alexiz electricals intends to purchase a pick up for
transportation of goods,five personnel will be employed which will include two sales men,two
service men and one top manager,who will be responsible for running the shop,all empoyees will be
paid on monthly basis depending on their responsibilities. One sales and service man will incharge
of customers who needs directions as to the use of the items and also assit in installation at the
customer’s place,while other two personnel will assit in the daily running of the shop.Alexiz shop
will ensure that license for the business is acquired and all products purchased are approved by
kenya bureau of standard and all requirement pertaining electrical equipments are adhred to,all
overheads will be paid monthly.The business production process will be subjected to
buying ,selling,repairing of electrical and electronic devises.The production cost and labour cost are
major expectations.The proposed business will require a total amount eight hundred thousand which
will be used to run the business,the amount with sourced from kenya commercial bank loan of five
hundred thousand and the balance will be from my person savings.

VI
 CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 BUSINESS NAME
Alexiz electrical and electronics is a sole proprietorship type of business whose main aim is to provide
quality and excellent services to local people.

1.2 BUSINESS LOCATION AND ADDRESS

The business will be located at Siruti centre along Awendo Odongo Her road
Awendo- Migori road

Sugarland junction
Rapogi Road
Odongo her Road

Siruti
Dispensary

Awendo-Rongo road
Alexiz
electricals Siruti TVC Awendo
and
electronics

1
1.3 FORMS OF BUSINESS OWNERSHIP

Alexiz electrical and electronics is a sole proprietorship type of business under the ownership
of James Otieno. I decided to use this form of ownership because of its advantages:
 The owner is the boss
 Owner enjoying all profits
 Fast the decision making process

The owner particulars are as follows:

Name :James Otieno

Address : 130 Sare Awendo
Profession: Engineer
Telephone: 011524777

1.4 TYPES OF BUSINESS

The business is in electricals and electronic industry.The target customers will be members of
the local community in siruti, which comprises of the local dwellers, institutions like
schools,hospital and churches and trainees living in the area. The reason for starting the
business due to the fact that there few similar business within the area.available dealers are
siruti interlink electricals and okong.o

1.5 PRODUCTION OFFERED

Alexiz electrical and electronics will ensure that all customers that purchases from the shop
gets free Installation of gargets and compared to competitors who doesn’t offer installation
services.free transportation to customers that buy in bulk.warranty services will also be
provided to customers.All customers will also be receiving free training and demonstration of
how to handle their electrical appliances.customers will also have opportunity to have their
purchased items tested before they collect them.All products at alexiz will be priced fairly
considering the high quality of goods
1.6 JUSTIFICATION OF OPPORTUNITY
Alexiz electrical and electronics is a type of business whose main aim is to provide quality
and excellent services to local people.The reason for starting the business due to the fact that

2
there few similar business within the area.available dealers are siruti interlink electricals and
okong.o electricals siruti operates for about six hours a day and lack most of important items
needed by the locals.Availability of electricity and good road,was also a major factor
considered.
1.7 GOALS OF THE BUSINESS

The owner of alexiz electricals and electronics just like other business have some established
business to meet.They are both long term goals and short term goals.
(a) Long term goals
They are the goals to be achieved in the next 3 to 5 years to come and they shall include;
 To became a major Supplier of electricals devices in a Migori County.
 Opening other branches in surounding counties.
(b) Short term goals
These are the goals that alexiz electrical and electronics would like to achieve within a span
Period of less than two years.
 Payment of short term loans
 Employment of quality trained staff
 Increased customer base
 Provision of quality services to the customers.
1.8 ENTRY AND GROWTH STRATEGY
Some of the entry strategies will include;
(a) Free installation:Alexiz electrical and electronics will ensure that all customers that
purchases from the shop gets free Installation of gargets and compared to competitors who
doesn’t offer installation services
(b) Free transportation to customers that buy in bulk.
(c) warranty services will also be provided to customers.
(d) Free training and demostration:All customers will also be receiving free training and
demonstration of how to handle their electrical appliances.customers will also have
opportunity to have their purchased items tested before they collect them
(e) Pricing :All products at Alexiz will be priced fairly considering the high quality of goods.
The profit made will now be used to make the company grow,the growth straegy include:
 Open new branches in surrounding counties.branches in homabay ,kisii and kisumu
county.
 Employ more personnel to handle the business
 Expand the business premises to cater for the growing customer base.

3
 CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMERS
The target customers will be members of the local community in siruti, which comprises of
the local dwellers, institutions like schools,hospital and churches and trainees living in the
area.
2.2 MARKET SHARE
Due to lack most of important items needed by the locals,the customers will prefer
purchasing from alexiz electrical and electronics .The business tends to serve 20,000 of the
population within the first year and achieve a market share of 40%.The location is about
50,000 potential customers.
ELECTRICAL MARKET MARKET MARKET
SHOPS SHARE YEAR SHARE YEAR
SHARE YEAR
ONE
TWO THREE
ALEXIZ 40% 60% 70%
OKONG’O 30% 20% 20%
SIRUTI 30% 20% 10%
INTER LINK

2.3 COMPETITION
Business undertakings is usually uncounted with competition.the competitors like okong’o
electricals and siruti interlink.they deal with electrical products but like most of electrical
appliances.
COMPETITORS Strengh Weakness
ALEXIZ Qualified and trained
personnel
Highly quality equipment
Operates 12 hours
varieties
OKONG’O Qualified personnel
Operates for 6 hours
Limited stock
SIRUTI INTER LINK Qualified personnel Operates for 6 hours

4
 Limited stock

2.4 METHOD OF PROMOTION AND ADVERTISING

As much as alexiz electrical and electronics may be offering quality goods and services
Customers must be reminded about the goods and services offered.
(a) Installation of gargets and compared to competitors who doesn’t offer installation
services.
(b) free transportation to customers that buy in bulk,warranty services will also be provided to
customers.
(c) All customers will also be receiving free training and demonstration of how to handle
their electrical appliances.
(d) customers will also have opportunity to have their purchased items tested before they
collect them.
Advertisement shall be made through placing of posters in strategic places,local radio
stations and television channels.
2.5 PRICING STRATEGY
Alexiz shop will take into account the quality of products being sold,the prices will be faily
down as compared to competitors.this strategy will be used during entry into the market and
once the business has developed ,the prices charged wil suit the new conditions.
2.6 SALES TACTICS
Alexiz electrical and electronics will ensure that all customers gets varieties of product.

2.7 DISTRIBUTION STRATEGY

Alexiz electricals intends to purchase a pick up for transportation of goods.customers who
purchases goods can always hire the pick up for transportation.and also the pick up will be
used to transport goods being sold to neighbouring markets.

5
CHAPTER THREE
3.0 ORGANIZATION AND MA NAGEMENT PLAN
3.1 BUSINESS MANAGERS AND THEIR QUALIFICATIONS
Success of business is based on its management personel.alexiz electrical and electronic will
have five personnel.
(a) Top manager
who will be responsible for running the shop,Qualification is Diploma in any business
course.
3.2 OTHER PERSONNEL
For success in the business ,Alexiz electrical and electronic shop will be employ two sales
men,two service men .the personnel must be qualified for various responsibilities.
(a) sales and service manager A
One sales and service manager will incharge of customers who needs directions as to the
use of the items and also assit in installation and repair at the customer’s place.
(b) Sales and service manager B
while sales and service manager will incharge of customers who needs directions as to the
use of the items and also assit in installation and repair at the shop.

3.3 RECRUITMENT ,TRAINING AND PROMOTION

For success,the company will employ qualified and well trained personnel.Alexiz electrical
and electrical will further train it’s personnel to counter technology.

(a) Recruitment
Recruitment will based on academic qualification and required field.the service manager
are recruited from two qualified personnel and in possession of craft certificate and
electrical and electronic engineering with one year esperience.for the sales managers,two
will be recruited from qualified personnel and in possession of Craft in sales and
marketing,and one year experience which will be confirmed from the recommedation
letter.

(b) Training
All the personnel will be taken for training organised by suppliers and also organised training
for employees on customer care.

6
3.4 REMUNERATION AND INCENTIVES
Good remuneration and incentives motivates employees ,remuneration and incentives shall
be given as follows:
Position No of personnel Salary for each
Top manager 1 20000
Service manager 2 15000
Sales manager 2 10000

3.5 LICENSE,PERMIT AND BY LAW

The business intends to get trading licence as follows;
Type of license Amount
Registration of business act cap 5000
498.provision for sole proprietor
registration
Local government act cap 265 a license 10000
from the local government authority which
is to own the business.
Total 25000

3.6 SUPPORT SERVICES

Alexiz elecrical and electronics will need support from the kenya commercial bank and other
support institution.
(a) Banking services
Kenya commercial bank will offer safe custody for the amount that will be offered as a loan.
(b) Auditing services
A qualified auditor will be employed to examine the books of accounts annually at a cost of
10,000 per year.

7
CHAPTER FOUR
4.0 PRODUCTION PLAN
4.1 PRODUCTION FACITIES AND CAPACITY
Alexiz electricals and electronics will offer quality services.
The business production process will be subjected to:
(a) buying all required spare parts from suppliers
(b) Selling gadgets and spareparts at affordable rate.
(c) repairing of electrical and electronic devises.

4.2 PRODUCTION STRATEGY

Alexiz electrical and electronic will ensure that required electricals gadgets ,spares and
repairing services is maintained.The production cost will be as follows;
Maintance of repair equipments 50,000
Aquiring of spareparts 150000
Aquiring of electrical and electronic gadgets 100000
Second hand pick 200000
Total 450000

4.3 REGULATION AFFECTING YOUR BUSINESS

(a) Regulation of wages and conditions of employment
Employees to work under the recommeded time interval.
(b)Health regulation act 242
The business will operate in an area that is slightly free from hazard .
(c ) Safety regulations
Safety gadgets like fire estinguisher are placed on stratergic points.

8
CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1 PRE- OPERATIONAL COST
The table below shows the pre-operational cost to be incurred by business in the first year of
operation.
Particulars Amount
Registration 25000
Buying of electrical and electronic 100000
equipments
Buying of spare parts 150000
Rent deposit 100000
Total rent 50000
Promotion/advertisement cost 10000
Electricity 5000
Total 440,000

5.2 WORKING CAPITAL

Table below shows its working capital of Alexiz electrical and electronic .
Particulars Amount
Cash at bank 200000
Cash at hand 250000
Stock 250000
Debtors 50000
Total 750000
Current liabilities
Creditors 50000
Salaries 45000
License 25000
Total 120000
Working capital 630000

9
5.3 PROFORMA CASH FLOW STATEMENTS
5.3 1 Proforma cash flow statement for 2026

particul Ma Ap Ma Jul Au Tota

ars Jan Feb r ril y Jun y g Sep Oct Nov Dec l
200, 50,0 20, 10, 500 15, 30, 20, 20, 30, 50,0 50,0 5000
SALES
000 00 000 000 0 000 000 000 000 000 00 00 00
Fixed
costs
Salary
4500 5400
and 450 450 450 450 450 450 450 450 450 450 450
0 0
wages 0 0 0 0 0 0 0 0 0 0 0
Loan
2000 2000
repayme 16,6 16, 16, 16, 16, 16, 16, 16, 16, 16,6 16,6
00 00
nt 66 666 666 666 666 666 666 666 666 66 66
Interest 3000 250 250 250 250 250 250 250 250 250 250 250 3000
loans 0 0 0 0 0 0 0 0 0 0 0 0 0
Total
2750 2750
fixed 229 229 229 229 229 229 229 229 229 229 229
00 00
cost 16 16 16 16 16 16 16 16 16 16 16

Variable

Advisem 1000 1000

ent 0 833 833 833 833 833 833 833 833 833 833 833 0
Electrici
5000 5000
ty 417 417 417 417 417 417 417 417 417 417 417
miscella 5000 416 416 416 416 416 416 416 416 416 416 416 5000
neous 0 6 6 6 6 6 6 6 6 6 6 6 0
100, 833 833 833 833 833 833 833 833 833 833 833 100,
Fuel
000 3 3 3 3 3 3 3 3 3 3 3 000

Net cash 9150 110 803 703 653 753 903 803 803 903 110 110 1224

10
 flow 00 331 31 31 31 31 31 31 31 31 331 331 000

5.3 2 Proforma cash flow statement for 2027

particul Ja Fe Ma Ap Ma Jul
ars n b r ril y Jun y Aug Sep Oct Nov Dec Total
20, 30, 50, 50, 500 50, 50, 200, 200, 150, 150, 500, 1,500
SALES
000 000 000 000 00 000 000 000 000 000 000 000 ,000
Fixed
costs
Salary
666 666 666 666 666 666 666 666 666 666 666 666 8000
and
6 6 6 6 6 6 6 6 6 6 6 6 0
wages
Loan
125 125 125 125 125 125 125 125 125 125 125 125 1500
repaym
00 00 00 00 00 00 00 00 00 00 00 00 0
ent
Interest 208 208 208 208 208 208 208 208 208 208 208 208 2500
loans 3 3 3 3 3 3 3 3 3 3 3 3 0
Total
212 212 212 212 212 212 212 212 212 212 212 212 2550
fixed
50 50 50 50 50 50 50 50 50 50 50 50 00
cost
Variabl
e
Advise
750 750 750 750 750 750 750 750 750 750 750 750 9000
ment
Electrici 500 417 417 417 417 417 417 417 417 417 417 417 1000
ty 0 0

11
 miscella 583 583 583 583 583 583 583 583 583 583 583 583 7000
neous 3 3 3 3 3 3 3 3 3 3 3 3 0
12, 12, 12, 12, 12, 12, 12, 12,5 12,5 12,5 12,5 12,5 150,0
Fuel
500 500 500 500 500 500 500 00 00 00 00 00 00
2114
000
Net cash 865 919 111 111 111 111 111 261 211 211 561 4880
flow 82 99 999 999 999 999 999 000 999 999 999 00

5.3 3 Proforma cash flow statement for 2028

particul Ja Fe Ma Ap Ma Ju Jul Au Tot

ars n b r ril y n y g Sep Oct Nov Dec al
20, 30, 200 200 150 150
200
SALES 00 00 50, 50, 500 50, 50, ,00 ,00 ,00 ,00 500000+
000
0 0 000 000 00 000 000 0 0 0 0 M2:M12
Fixed 250
costs 000
Salary 20 20
208 208 208 208 208 208 208 208 208 250
and 83 83 20833
33 33 33 33 33 33 33 33 33 000
wages 3 3
Loan
41 41 416 416 416 416 416 416 416 416 416 500
repaym 4166
66 66 6 6 6 6 6 6 6 6 6 00
ent
Interest 62 62 625 625 625 625 625 625 625 625 625 62500 750

12
 50 50
loans 00 00 00 00 00 00 00 00 00 000
0 0
Total 21 21
212 212 212 212 212 212 212 212 212 750
fixed 25 25 21250
50 50 50 50 50 50 50 50 50 000
cost 0 0
Variabl 500
e 00
Advise 75 75 450
750 750 750 750 750 750 750 750 750 750
ment 0 0 00
5.5 PROFORMA BALANCE SHEET FOR YEARS 2026,2027,2028
Electric 50 41 250
Asset
ity 00 7 2026 417 417 417 2027
417 417 417 417 4172028
417 417 00
Current
miscell asset
58 58 583 583 583 583 583 583 583 583 583 120
5833
aneous 33 33 3 3 3 3 3 3 3 3 3 000
Cash at bank 200000 150000 100000
Cash at hand12, 12, 250000
12, 12, 12, 12, 200000
12, 12, 12, 12,190000
12, 630
Fuel 50 50 12,500
500 500 500 500 500 500 500 500 500 000
Stock 0 0 250000 400000 200000
Debtors 50000 30000 10000
Total
Net 86 91 750000 690000 500000
312
cash 58 99 111 111 178 111 111 534 328 211 211
Fixed asset 000
flow 2 9 999 999 920 999 999 000 500 999 999 628900
Pick up 200000 500000 1,000000
Total fixed asset 200000 500000 1,000000
Total asset 850000 1,190,000 1,500,000
Liabilities
Bank loan 500000 500000 500000
Owners equity 300000 500000 600,000
Liabilities +equity 800000 1,000000 1,100,000

13
5.6 BREAK EVEN ANALYSIS FOR YEARS 2026,2027,2028
ITEMS YEAR 2026 YEAR 2027 YEAR 2028
SALES 500000 1,500,000 3,000,000
Fixed costs
Salary and wages 45000 80000 100000
Loan repayment 200000 150000 150000
Interest loans 30000 25000 25000
Total fixed cost 275000 255000 275000
Variable
Advisement 10000 9000 7000
Electricity 5000 10000 15000
Miscellaneous 50000 70000 80000
Fuel 100,000 150,000 200,000

Total variable cost 165000 239000 302000

Break even point for year 2026,2027,2028

B. E.P =Total fixed costs
1-Total variable costs
Total sales vol
Year 2026 =275000
1-(16500) = 410447

14
 500000
Year 2027
=255,000
1-(239000)
1,500,000
= 303,571

Year 2028
=275000
1-(302000)
3,000,000 =244750

5.7 PROFITABILITY RATIO FOR THE YEARS 2026,2027,2028

Particulars Year 2026 Year 2027 Year 2028
Gross profit 39490 77700 84000
Gross profit margin 39490*100 77700*100 84000*100
G. p*100 48700 12400 106000
Sales =81.1% =60.9% =78.7%
Return pf equity 25785*100 53738*100 55081*100
Net profit after 40000 56300 66300
tax*100
=64.5% =82.3% =83.1%
Owners equity
Return on 25785*100 53738*100 55081*100
investments
50000 75300 76300
Net profit after
=51.6% =71.4% =72.2%
tax*100
Owners investment

5.8 DESIRED FINANCING

Particulars Amount

15
Pre operational cost 440,000
Working capital 630,000
Total desired financing 1,070000

5.9 PROPOSED CAPITALIZATION

Particulars Amount
Bank loan 500,000
Personal savings 200,000

total 800,0000

16
APPENDICES
Locational map of the proposed business
Awendo-Migori road

Rapogi Road

Sugarland junction

Odongo Her road

Siruti
dispensary

Awendo- Rongo road

Alexiz electrical Siruti TVC
and electronics Awendo

17