This is a business plan if you need one ,it cleary states the different aspects of the business in question and also has a budget needed to start the business.you can use it as a template to make your

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This is a business plan if you need one ,it cleary states the different aspects of the business in question and also has a budget needed to start the business.you can use it as a template to make your own business plan.Dont use the exact words to avoid plagiarism and to give it a sense of belonging.You can also reach out to me for any clarification or help and I’ll assist you at any level.keep in mind that i will only help is lf you ask .

This is a business plan if you need one ,it cleary states the different aspects of the business in question and also has a budget needed to start the business.you can use it as a template to make your
BUSINESS PLAN ALPHA LUNA BOUTIQUE MISSION; TO PROVIDE HIGH QUALITY PRODUCTS AND OFFER TOPNOTCH CUSTOMER SERVICES TO SUSTAIN AND POSSIBLY SATISFY CUSTOMER NEEDS VISION: TO ENSURE THE BUSINESS GROWS INTO A TOP-CLASS BOUTIQUE IN NAKURU AND ITS ENVIRONMENT. EMAIL: [email protected] Website: www.alphaluna.com PREPARED BY: MACHOKA OCHOI EDWIN SIGNATURE …….…………. REG NO: 20/02545 DATE: 22/11/2021 CONTACTS: 0728760546 TABLE OF CONTENT TABLE OF CONTENT 1 CHAPTER ONE 1 EXECUTIVE SUMMARY 1 CHAPTER TWO 2 BUSINESS DESCRIPTION 2 2.0 Owners Details 2 2.1The Business Venture 2 2.2 Products and Service 3 2.3 Entry plan 4 2.4 Growth plan 4 2.5 Industry 5 CHAPTER THREE 5 BUSINESS DESCRIPTION 5 3.0 Introduction 5 3.1 Potential customers 5 3.1Competition 6 3.2 Pricing 10 3.3 Sales tactics 11 3.4 Advertising and promotion 11 3.5Distribution 12 CHAPTER FOUR 12 ORGANIZATION PLAN 12 4.0 Organisation Structure of Alpha Luna Boutique 12 4.2 Key management personnel 13 4.3 Ordinary employees 14 4.3 Support system 17 CHAPTER FIVE 18 OPERATIONAL PLAN 18 5.0 Ground Plan of Luna Boutique 18 5.1 Production Facilities 18 5.2 Production cost 19 5.3 Production process 19 5.4 Complying with operational Requirements 19 CHAPTER SIX 20 FINANCIAL PLAN 20 6.1 Pre- operational Costs 20 6.2 Working Capital 20 6.3 Pro-forma Income Statement 21 6.4 BREAK –EVEN POINT 27 6.5 PROPOSED CAPITALIZATION 28 7.0 Introduction 29 7.1 Risks 29 7.2 Solutions 30 ii iii CHAPTER ONE EXECUTIVE SUMMARY The business will be a boutique which is known Alpha Luna Boutique will be located in Nakuru county, Nakuru town. The business targets the whole population in the county as well as the neighboring counties. Main customers are members of the society staying within the county geographic location and adjacent habitats extending to the neighboring counties. Potential competitors are other Boutiques in the region as well as clothes line in the town. The market affects both men and women in the fashion industry as well as entrepreneurs, teenagers, and university students. This form of market will allow us to serve a big number of people. The business management team will consist of the partners who each will be the general manager, supervisor, cashier and a team of sales personnel, front desk, cleaners and security guard. The Profitability ratios have been used to measure and evaluate the ability of the boutique to generate its income and profits. Return on assets has been used to calculate the net income over the total assets to indicate the profit or loss made in each fiscal year. Return on investment has also been used to evaluate the efficiency of the company. It is a balance statement. With transforming fashion industry, customers are increasingly becoming aware of the impact businesses have on the environment and its people hearts why instead of focusing on the article of clothing being sold the limelight is being shed in its sustainability. Is it made of renewable resources? Were the workers given fair condition to work? Such questions have challenged boutique owners to value sustainability as much as the quality of the product so that customers can be proud of what they purchase. .As soon as the doors of a boutique open, customers expect their favorite clothing items to be available at all times. To meet their wishes one need to have enough clothes kept safe in their inventory, failure to do that will result in tons of dissatisfied customers who will leave the store as soon as they came. While it seems like only a matter of ordering the right products, it is tricky game of inventory management. Where one has to make sure they have enough capacity and utility to store and use the clothing items they buy without anything going to waste. CHAPTER TWO BUSINESS DESCRIPTION 2.0 Owners Details The business will be partnership of four individuals, three of them graduated from the Jomo Kenyatta University of Agriculture and Technology with a bachelor’s degree in Business Management and I pursuing a Bachelor’s Degree in Finance in KCA University, the four of us have an idea on this type of business since while in pursuit of higher learning we were able to work in different boutiques as a side hustle, in fact the side hustle is what connected us. Address Luna Boutique P.O Box 2105-00802 NAKURU TEL:+254728760546 Email:[email protected] Website: www.lurnab21.com 2.1The Business Venture The business will be located in Nakuru town. Since it is easy for travellers going to western and rift valley region to access as they pass and also the area has populated residential estates nearby with some light industries also located in the surrounding. Business justification Because many Kenyans who sell clothes in the Western and Rift valley region pass through Nakuru all the way to Nairobi to source for clothes to sell, it will be of greater advantage to open a boutique nearer so that if we buy clothes in bulk from Nairobi and sell to them at wholesale price and retail price we will have saved them in terms of cost and time. Form of ownership The business is partnership form of business. This partnership consists of three gentlemen and one lady. Being a partnership form of business the financial to start up the business is equally contributed by each of the four partners. The generated start-up capital is from everyone’s personal savings. 2.2 Products and Service The business will stock a wide range of the products such as: ladies and gents fashion clothes, belts, wristwatches, caps, socks and stockings among others. Informative materials such as fashion banners and magazines will also be available to enhance dissemination of information to my clients. Luna boutique will stock a variety of beauty assortments ranging from clothing, earrings, necklaces, manicure and pedicure products which it considers to be fast moving amongst the youthful population. Besides these products, the boutique will offer free tailoring services to clients who will require resizing their clothing outfits, advice clients of clothing that suits their occasions such weddings, birthday parties and other social events. The benefits accruing from this boutique to the owner will be revenue that will help in meeting living expenses; it will also create employment both direct and indirectly to the surrounding since businesses are interdependent. To clients, it will save them time and money from travelling to the city centre of Nairobi to get such products stocked by Luna Boutique. 2.3 Entry plan Luna boutique will seek to achieve growth with existing product in their current market. This will be achieved by selling more products to established customers. In order to effectively accomplish market entry, Luna boutique will reduce price of its products, increase promotion and have adequate stocks 2.4 Growth plan In terms of growth Luna Boutique will try its best to bring in new products and this will help it to extend its product range. In order to achieve this, the enterprise will carry out market research in order to determine the products most wanted in the market. For an effective diversity in the market, the business will try and bring in new products apart from clothing, Luna Boutique will add manicure and pedicure products in line of its stocks to continue being competitive in the market. Short term goals (Achievable within one year) Set up a remote sales networking system. Increase new customer reviews with a growth of 10 customers weekly. Increase sales cold calls by 35 new clients every month. Smart medium goals (Achievable within two-five years) Expand into new geographic market Expand personnel and facilities Broaden product and service offering One long term goal (Achievable beyond five years) Become a leading supplier of clothes in Western Region 2.5 Industry Kenya has great potential to serve the global, domestic and regional markets from its pool of fashion designers and small tailors. The Textile and Clothing (T&C) sector has also been identified in Kenya’s Vision 2030 as a pathway to industrialization as it possesses incredible economic potential. While fast fashion has become a major trend shaping the global consumer landscape, it may not be the right route for Kenya to pursue. For starters, the distance between the U.S (Kenya’s main destination for exports) isn’t favorable for the turnover time required for fast fashions while on the other hand, the long-time taken at the Mombasa Port is also another factor that may slow down the morale of those intending to import fashions. CHAPTER THREE BUSINESS DESCRIPTION 3.0 Introduction This chapter covers potential customers, competition, pricing and distribution and as well as SWOT analysis of the business. 3.1 Potential customers Traders from the neighboring counties of Western and Nyanza will be our prime customers because Nakuru is strategically located as a convergent point. This type of concept allows for collaboration in the country for all types of businesses. The market affects both men and women in the fashion industry as well as entrepreneurs, children, teenagers, and university students. This form of market will allow us to serve a big number of people. 3.1Competition Our main competitors will include; Lady Beauty fashion, Jade exhibition and Pearl collections and Luna Boutique. NAME OF THE BUSINESS STRENGTH S WEAKNES S OPPORTUNI Y THREAT S Lady Beauty Fashion They are longest in the market and therefore have a wide base of customers who have developed loyalty towards its products. Lady Beauty Fashion uses old selling technique of cash and carry instead of adopting point of sale machine to ensure that all products are tilled before Recent closure of its immediate competitor may give Lady Beauty Fashion Boutique greater height of gaining more customers Recent opening of another boutique in the same building that houses Lady Beauty Fashion collection centre will Its accessibility is not hampered during rainy season since it’s surrounded by tarmacked roads. they leave the premises .Whenever a business uses outdated technologies; these slows down productivity and contribute to the business losing money hence slowing growth. rattle its customer base since competitio n will be stiff. PEARL COLLECTIO N They have a five capacity parking area for their customers. Its owner once worked in Dubai as sales person and therefore has great High employee turnover rate at Pearl collection fashion centre forces it to concentrate more on hiring than focusing much on It’s located strategically between two flats that are being constructed to be occupied by students of Egerton university town campus who are majority of The business closes twice that’s Friday since the owner is a Muslim and Sunday to give his staff chance of experience in sales. They have a direct link of importing their products from Dubai at a cheaper price sales. These also lead to sales loss as the employees leave without notice hence interfering with business operation. Location of garbage behind it also prevents some customers from accessing its premise due to the odour smell especially during midday customers are boutiques in this area. that frequently served in most attending church services. This creates uncertainty amongst its customers about exact days of operation while at the same time gradually making them to lose some of the customers Jade exhibition Having chosen the name of world known cloth line, most youths especially ladies flock there for The business room is small hence pathways for mobility are much squished. This They recently got connection with ladies attending a beauty contest hence realizing improved sales. These ladies It faces risk of closure by the Kenya Revenue Authority after it was declared as shopping since the associate it with high quality. They have a strong marketing team to realize their targets. discomforts customers during shopping. The squished Internal display also increases vulnerability of leverage. also connect their friends to the Jade exhibition since they associate it with quality. non-tax compliant. 3.2 Pricing Price refers not just to the monetary value of a product, but also to the amount of time or effort a client is prepared to put out to obtain it. This will be a significant component in determining the brand’s revenue because it will affect profit, supply, and demand, as well as how many marketers should spend on a promotion or marketing campaign. This is why this letter ‘P’ is one of the most significant. A product – and its brand – may fail if it is priced too high or too low. Luna Boutique will first adopt market penetration strategies in order to gain a good percentage of the market customer before supplementing this pricing method by others such as price skimming and bundle pricing. Pricing for market penetration is essentially the opposite of price skimming. Instead of starting high and slowly lowering prices, you take over a market by undercutting your competitors. Once you develop a reliable customer base, you raise prices. Many factors go into deciding on this strategy, like your business’s ability to potentially take losses up front to establish a strong footing in a market. It’s also crucial to develop a loyal customer base, which can require other marketing and branding strategy. 3.3 Sales tactics Growing commercial competitiveness, as well as cutting-edge marketing in the current market, has generated opportunities for manufacturers, who have begun to employ emotions as a sales technique. It has become vital for manufacturers of goods and services to tap into all prospective markets. Changes in marketing approaches and strategies have had a significant impact on the marketing environment. Border Stop combines direct selling strategies and social media marketing to address the challenge of customer acquisition and retention. One of the most popular and effective sorts of marketing methods is social media marketing. 3.4 Advertising and promotion Advertising Advertising is paramount in informing people about existence of new Boutique in the area, its services, and location and why it should be the place to be. This will certainly create curiosity among clients who will in turn be looking to satisfy their curiosity at our boutique. Our Boutique will be carrying out its advertisement through: Social Media ( Instagram, Facebook, Twitter e.t.c) Radio adverts Posters ( colored) Promotion The boutique plans to use clients’ referral incentive program. The customer referral incentive program is away to encourage current customers to refer new clients to our boutique. Discounts are some of the incentives to be used. Branded promotion gifts Luna Boutique intends to put its cards on every counter and shelves, This is the gift to give the customers that they may use, which keep the boutique in an open market. 3.5Distribution The boutique will mainly concentrate on selling its stocks in a store therefore distribution channels may not be considered in the short run. CHAPTER FOUR ORGANIZATION PLAN 4.0 Organisation Structure of Alpha Luna Boutique This is the hierarchy of arrangement and flow of power and authority from the top management to lowest at the boutique. The general managers will be the four of us who are the partners. 4.2 Key management personnel General Manager (a) Qualifications The partner experience varies with the minimum has six years’ experience All are grandaunts with a Bachelor Degree in Business. Familiar with Fashion industry. (b)Duties and Responsibilities Planning periodic operations of the boutique. Staffing roles of hiring and firing Organizing and directing all activities of the boutique. Coordinating and executing plans of the boutique Supervisor Qualifications Degree/ Diploma Certificate Three years’ experience Good communication skills Leadership qualities Duties and responsibilities Oversees the job to be done at boutique. Training new hires Ensure that the business runs smoothly without any issues. Reporting to HR and senior management Helping resolve employee issue General managing of the boutique when the owners are not around. 4.3 Ordinary employees Sales personnel (a) Qualifications Diploma /certificate in sales Good communication skills Experience in sales and marketing (b)Duties and Responsibility Help customers to find items in the Boutique Provide customers with information about items Ring up purchases Evaluate complaints to management Keep track of inventory Cleaners (a) Qualifications KCSE certificate Hardworking (b)Duties and responsibility To ensure that Luna boutique is 24 hours tidy. Security Officer Qualifications KCSE certificate Good conduct Duties and responsibility Safeguarding the premises Carrying out security checks on visitors Monitoring surveillance cameras Responding to alarms within the premises Assisting the maintenance staff in securing an area during a maintenance emergency. RECRUITMENT, TRAINING AND PROMOTIONS Recruitment Recruitment will be done any time vacancy has surfaced. The Selection will be conducted by a panel of the four partners who will engage the application on their knowledge on beauty products to ensure the best get a chance among the applicants Training The Boutique will conduct training frequently so that employees will sharpen their skills and knowledge. Training will be conducted internally by the supervisor while promotion will be based on performance and long-term stay. Promotion It will be based on: Hard work Punctuality Performance Experience Commitment Appraisal Appraisal will be done on semi-annually basis to ensure that all employees are update to rapidly changing trends in the beauty industry REMUNERATION AND INCENTIVES Remuneration Remuneration table Position Number Salary Total Manager 4 40,000 160,000 Sales personnel 5 20,000 100,000 Security 2 10,000 20,000 Cleaners 3 7,000 21,000 This is the reward in terms of monetary that the employer gives his or her employees after a certain period of time based on job done. The partners will increase employees increase the employees rewards based on boutiques profit and growth. INCENTIVES Luncheons Every end month 4.3 Support system Banking services The partners will also offer banking support to ensure that all employees are paid through the bank for them to access other benefits of banking. Luna Boutique owners prefers Cooperative bank because of its wide branch coverage within and outside the city. Licence Luna Boutique intends to acquire a working license from Nakuru county government. We will also acquire a legal permit for the business Insurance services This will be offered by Liberty life assurance company due to their their affordable and quality services offered to members. CHAPTER FIVE OPERATIONAL PLAN 5.0 Ground Plan of Luna Boutique 5.1 Production Facilities The boutique will lay down operational and facilities and capacities to be used by Luna boutique in order to achieve its goals and objectives. The boutique intends to maximum utilize the available facilities in a cost-effective manner to achieve best desired results. 5.2 Production cost TYPE OF COST MONTHLY COST Computer 40000 Transportation 15000 Workers/labour 20000 Overhead expenses 14000 Cost per unit 2500 5.3 Production process The boutique will be involved in importing and storage of clothes and related assortment from Turkey, China and Hong Kong but there shall be no production of new items 5.4 Complying with operational Requirements Operation expense and monthly bills TYPE OF REQUIREMENT COST Licenses 8000 Taxes 30000 Other approval 5000 TOTAL COST 43000 Allocations Amount (Ksh) Rent 25,000 Stock 200,000 Computer 40,000 Licence 8,000 Transport 30,000 Fixtures and fittings 50,000 Advertising 5,000 Internet connection 2,000 Wages 30,000 Emergency 10,000 Grand total 400,000 CHAPTER SIX FINANCIAL PLAN 6.0 Introduction The chapter looks into on the financial plan of Luna boutique 6.1 Pre- operational Costs AMOUNT (KSH) Transport 30000 Market research 5000 Advertising 5000 Rent 25000 Internet connections 2000 Installations 15000 TOTAL COST 82000 6.2 Working Capital ITEM AMOUNT Stock of materials 50000 Work in progress 50000 Stock of finished goods 150000 Debtors 12000 Cash 25000 6.3 Pro-forma Income Statement ITEM AMOUNT (KSH) Stocks Cost of goods sold Gross profit Wages Rent Electricity Advertising Stationery Transport 350000 80000 270000 43,000 15000 1200 2000 800 4000 Net profit before tax 200,000 Tax 40,000 NET PROFIT AFTER TAX 160,000 Contribution margin Sales for the YEARS 700,000 800,000 1,000,000 Break –even point for 2021 54,000 =180 3,000 Break-even point for 2022 700,000 =412 1,700 Break-even point for 2023 800,000 =500 1,600 Net profit before tax =Gross profit-Total expenses =900,000-600,000 =300,000 Net profit after tax (16%) =300,00(0.16) =252,000 Net profit = profit before tax-profit after tax 300,000-252,000 =78,000 Pro-forma Income statement for the third year of operation Sales 900,000 Less cost of sales Stock (250,000) Gross profit 650,000 Less expenses Rent 35,000 Salaries 150,000 Advertisement 40,000 License 10,000 Miscellaneous 5,000 Total expense 200,000 200,000 450,000 Profit before tax (PBT) Profit after tax =Gross profit-Total expenses = 0.16(200,000) =650,000-450,000 =168,000 =200,000 BALANCE SHEET ASSETS These refers to resources that belongs to the boutique Pro-forma Balance sheet for the first year Fixed asset Kshs Long term liabilities Kshs Furniture Machinery Tools and equipment’s Total 40,000 100,000 50,000 190,000 Capital Add net profit Less drawing Total 500,000 700,000 (200,000) 1,000,000 Current assets Short term liabilities Stock Cash at hand Cash at bank 120,000 60,000 120,000 Creditor 100,000 Total 900,000 Total 900,000 Pro-forma Balance sheet for the second year Fixed asset Kshs Long term liabilities Kshs Furniture Machinery Tools and equipment’s Total 20,000 50,000 25,000 95,000 Capital Add net profit Less drawing Total 700,000 500,000 1,200,000 Current assets Short term liabilities Stock Cash at hand Cash at bank 200,000 70,000 3,500,000 Creditor 100,000 Total 1,100,000 Total 1,100,000 Pro-forma Balance sheet for the third year Fixed asset Kshs Long term liabilities Kshs Furniture Machinery Tools equipment’s Total and 150,000 90,000 50,000 290,000 Capital Add net profit Less drawing Total 2,000,000 500,000 2,500,000 Current assets Short term liabilities Stock Cash at hand Cash at bank 300,000 140,000 1,000,000 2,410,000 Creditor 200,000 Total 2,700,000 Total 2,700,000 CASH INFLOW 1st YEAR JA N FE B Ma r Ap ril MA Y JU N JUL Y AU G SEP OC T NO V DE C Bal b/f 150 000 178 000 200 000 500 000 120 000 0 175 000 0 135 500 0 127 000 0 210 500 0 195 000 0 189 000 0 195 000 0 Cash sale 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 Debt s 200 000 200 000 200 000 200 000 200 000 200 000 200 000 200 000 200 000 200 000 200 000 200 000 Total 500 000 528 000 550 000 850 000 155 000 0 210 000 0 170 500 0 162 000 0 245 500 0 230 000 0 224 000 0 230 000 0 CASH OUTFLOW Rent 150 00 150 00 150 00 150 00 150 00 150 00 150 00 150 00 150 00 150 00 150 00 150 00 Salar y 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 Wate r 150 0 150 0 150 0 150 0 150 0 150 0 150 0 150 0 150 0 150 0 150 0 150 0 Loan Repa ymen t 650 0 650 0 650 0 650 0 650 0 650 0 650 0 650 0 650 0 650 0 650 0 650 0 Stock 150 000 150 000 160 000 185 000 120 000 105 000 185 000 140 000 160 000 120 000 150 000 200 000 Mis 200 0 150 0 300 0 450 0 320 0 250 0 200 0 350 0 400 0 350 0 400 0 400 0 Adve rt 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 Credi tor 250 00 200 00 210 00 210 00 200 00 110 00 150 00 220 00 150 0 100 00 115 00 150 00 Total 220 000 214 500 227 000 253 500 186 200 161 500 245 000 208 500 208 500 176 500 208 500 262 000 Bal c/f 280 000 313 500 323 000 596 500 136 380 0 193 850 0 146 000 0 141 150 0 224 650 0 212 350 0 203 150 0 203 800 0 6.4 BREAK –EVEN POINT This is the point where the boutique does not make any profits or loses but able to meet the production cost Production cost=variable cost=fixed cost 2022 2023 2024 Variable cost Kshs Raw materials 1,050,000 99,000 170,000 Labour 300,000 350,000 450,000 Transport 55,000 40,000 50,000 TOTAL V.C 1,405,000 489,000 670,000 Fixed cost 2022 2023 2024 Fixed cost Kshs Salaries 800,000 750,000 900,000 Rent 150,000 150,000 150,000 Water and electricity 30,000 25,000 20,000 Advertisement 60,000 55,000 50,000 TOTAL F.C 1,040,000 980,000 1,120,000 6.5 PROPOSED CAPITALIZATION This defines how the partners and bank will generate the money ITEMS KSHS Partners 400000 Total desired financing 40000 Profitability Ratios These are financial data used by analysts and investors to measure and evaluate the ability of a business to generate income or profits. • Return on Assets (ROA) =Net income/total assets Net income = Ksh400000 400000 /419400 = 0.95 Total assets =Ksh419400 CHAPTER SEVEN 7.0 Introduction This chapter talks on the risk the partners are likely to face in this business and remedies to overcome these problems. 7.1 Risks Clients ordering half of the stock and buy one item Some clients tend to order a number of goods and end purchasing less of what they ordered or even not purchasing at all. It is advisable to discourage clients from trying on everything in the boutique. If a client wants even some pair of shoes only just two color variations if it’s a must. Expectations of consumerism Consumers creates certain expectations that boutique stores often struggle to meet People are so used to going online and finding thousands of products or walking into a big retailer store that has new products every week, and they have those same expectations when walking into a boutique retail store, which leads to disappointment. Changes to High street spending It will be a challenge for our business with the rise of online shopping, the way people spend money on the high street is changing. Instead of spending in retail business people are increasingly moving towards other business. Capturing the attention of customers in this area is very difficult. Unqualified personnel It may seem as nothing, but it is vital to ensure that the employees we hire have the required skills and knowledge to accomplish their jobs well and meet the expected goals. Clients do not expect a beauty center to employ uncertified stylists, technicians, and therapists. Employees that are inexperienced, on the other hand, may offer a bad dye job. However, as a result of this, your clients may experience burns, nerve damage, skin infections, and other issues. 7.2 Solutions It is advisable for the clients to be told to pay some commitment when they have ordered goods. This reduces the chances of the clients’ failure to purchase as per order and it also enables the business to identify serious and faithful customers. To combat the expectations of consumerism it is best that we build a cohesive brand. As partners we should focus on ideas about quality and longevity instead of cheap mass produced goods and builds a core set of repeat customers instead of relaying on one time impulse purchase. As boutique retailers we will focus heavily on direct marketing that encourages people to make a specific trip to come to their store. .

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