Solar Farm

BUSINESS
PLAN
Clean energy for a pure world.

Prepared By
KIOKO
MUTINDA
EICI/02275/2018
 BUSINESS PLAN
BUSINESS NAME : SOLAR SOLUTIONS COMPANY LTD
INSTITUTION: THE TECHNICAL UNIVERSITY OF KENYA

SUBMITTED BY : KIOKO MUTINDA EICI/02275/2018

SUBMITED TO: THE TECHNICAL UNIVERSITY OF KENYA

FACULTY OF ENGINEERING SCIENCES AND TECHNOLOGY (FEST)

SCHOOL OF CIVIL AND RESOURCE ENGINEERING
DEPARTMENT OF CIVIL AND CONSTRUCTION ENGINEERING FOR PARTIAL FULFILMENT OF
BACHELOR OF TECHNOLOGY IN CIVIL ENGINEERING
DATE : JULY 2022

DECLARATION
I hereby declare that the business plan is my original work and that it has not been presented for the
award of a degree to The Technical University of Kenya.

Name …………………………………………………………..
Admin No ……………………………………………………...
Signature ……………………….. Date ………………………

Supervisor Name……………………………………………….
Signature ……………………….. Date ……………………….

ACKNOLEGEMENT
I wish to acknowledge the following people who assisted me in ensuring that the business project

report was successfully done. First and foremost we thank almighty God for life and health, classmates for

motivation, my parents for financial support, and finally my lecturer Dr.Esther Mwiti
DEDICATION
We dedicate this project to our parents for their financial and moral support.

Not forgetting our colleagues who through their togetherness and encouragement have lead to completion of this

business plan. Dr.Ester Mwiti the lecturer for her total cooperation and guidelines throughout the semester.
1.

Executive Summary
Business Description
Marketing Plan
Marketing and Organizational plan
Production and Operational plan

Critical risk analysis

1.1 Company Overview

The commitment of Solar Solutions will be to spread technologies for harnessing renewable energy (RE). The term
"renewable" refers to sources of energy that can never be diminished or exhausted, such as wind and sun. The most
common commercial RE technologies are photovoltaic (PV) modules, wind turbines, and, increasingly, fuel cells, which
produce electricity from solar radiation, wind, and hydrogen, respectively.

Solar Solutions is an enterprise that seeks to involve itself in installation of solar equipment including lighting systems,
solar powered irrigation systems, heating solutions to residential houses and cooperate premises, the business
realized that many people were in need of affordable clean energy.
The business will have a good market share since it intends to have modern solar solutions which are affordable and
reliable in all weather conditions in Kenya.
The business has also mechanisms to use in order to overcome any kind of risks that may arise during its operation
Solar Solutions will empower the world's underdeveloped communities through the application of solar and wind
energy technologies. The company will become the world's leading provider of renewable energy (RE) products and
services, with projects potentially spanning all seven continents by 2025.

Background & Sponsors.

Solar Solutions will be organized as a partnership with four members holding diverse qualifications in this field, with
an executive office in Westlands Nairobi, Kenya, during the first quarter of 2022. The company will serve as a for-profit
holding, investing, and consulting agency, and will work in partnership with developing communities to establish
sustainable Renewable Energy (RE) projects all over the country.

Mission Statement
Our mission is to help our customers reduce their energy consumption and environmental impact through the use of
solar energy, in turn helping the planet fight climate change. To profitably and sustainably introduce renewable
energy into the world's underdeveloped communities.

Vision Statement
To become the world leader in the creation, development, and deployment of technologies that converge the
advancement of human civilization with that of the environmental condition.
Business Name

Solar Solutions Limited is the name of the business affirming the

objectives and goals of the business.

The name was arrived at following a brain storming session with the co-
founders of the company. The name indicates our dedication to providing
solar powered solutions to the Kenyan market contributing to the larger
goal of a greener world.

Business Logo

Business location
This business office is located at Westpark Towers, Westlands, Nairobi.
The main reasons and factors that enhanced the location of the business office are;
a. The security in the area is impressing due to the police station around

b. The roads are well built hence less traffic jam

c. The place is accessible by the public since its located along a road.

Form of Business Ownership

Solar Solutions is owned up by four people forming a private limited company which will enable the business to enjoy
the following advantages in addition to limited liability.
 The private limited company/business will enjoy tax advantages in addition to limited liability.
 The business will pay corporation tax on its taxable profits and tend to be exempt from higher personnel
income tax rates.
 The business will enjoy permanent succession because the business is its own legal entity.
 The employees and shareholders act agents of the company and therefore do not affect the company if they
leave
 In case of death or resignation the business article of association allocates the shares to the remaining
members
Type of Business
The type of business is an energy provision company. Under this business the putting up of renewable energy facilities
will be enabled though the following entities among may:
i. Investing in projects involving solar lighting solutions to residential buildings.
ii. Provision of resources to put up Solar farms in the marginalised areas of Kenya.
iii. Selling of solar generated power to the national government by integration with the national grid.

Products & Services

Solar Solutions will immediately specialize in providing electricity and electric services for rural communities, and will
utilize two different business strategies to distribute power.

First, Solar Solutions will sell solar electric systems for home and commercial applications by allowing customers to
finance the cost of these systems over time.

Second, the company will offer end-user services direct to customers by establishing electrified community centers in
the heart of their villages. At these centers, people will be able to purchase services ranging from crop processing to
refrigeration to telecommunications access to internet browsing.

Energy Supply

Supply solar energy to domestic, commercial and industrial enterprises in

need of clean, efficient and reliable solar energy

Plant Constructions
Construction of power plants, tower power plants and trough power plants using
the latest environmentally friendly technologies

Panel Installations
Installation of solar panels, repair and maintenance services thanks to a qualified
and reputable installation and quality assurance team

Consultation
Consultation, energy analysis studies and designing of integrated solar system
plans. This involves holding discussions with potential customers to determine their solar
needs and recommend an appropriate solution.

Description of Services
Solar Solutions will offer financing packages for home and commercial-scale solar electric systems. The retail price of a
small solar electric system in rural Kenya is around Ksh. 80,000. Solar Solutions will enable customers to purchase
systems in affordable monthly installments. These financing options will be especially popular in low-income
communities such as Makueni, where affordability drives a preventative wedge in a customer's ability to buy.

To solidify people's confidence in these financing options, and to demonstrate the company's dedication to the
community, a 15,000-watt solar power station and community center will be constructed in Kitonyini, Makueni. A
number of end-user services will eventually be provided at this community center, such as mango juice processing,
food storage and refrigeration, battery charging, water distilling, computing, telecommunications access, and Internet
browsing.

In addition, an educational center will be instituted, where customers will learn how to use electricity and
technology to start new businesses, or to expand existing ones. All of these services will be designed to help
Makueni residents augment their incomes. In this way, Solar Solutions hopes to foster economic activity, and thus
prosperity, within the community.

Justification of the Business Opportunities

The main reason that led to implementation of this business is because there is high demand of renewable energy all
over the country. Following the recent effects of global warming and the rising economy hence higher demands for
energy, the current national grid isn’t able to satisfy the countries energy needs. This means that a number of areas
such as areas in Mandera, Wajir, Kitui and Makueni are barely covered by the national grid. The aim of the business is
to make and provide the customers with modern energy solutions which are affordable. This is done by making sure
the company builds solar farms that are distributed across the various counties and distribute the energy to the
townships and residential areas.

Objectives
Solar Solution's first RE project will be in Makueni, Kenya, a remote agricultural community in East Africa. The
company will aggressively expand into a global provider of RE products and services by seeking new opportunities in
other parts of Africa, as well as in Asia and Latin America. By 2025, Solar Solution will be the country’s undisputed
leading provider of RE products and services, and will operate Research & Development divisions for creating
innovative novel technologies that address the environmental crises of the twenty-first century. This business plan will
present Solar Solution's strategy for getting started, by establishing a profitable and sustainable RE business in
Makueni, Kenya

Proprietary Rights
In Makueni, and in all other project sites, Solar Solutions will seek partnership with a local organization to help with
operations, marketing, legal negotiations, and other important aspects of conducting business. As such, Solar
Solutions is confident that no other company will be able to beat this market.
Entry strategy

Entry strategy is very important for any business which wan to venture into the market, the strategy helps the

developer to have some tactics that will guide him in monitoring how the business is doing and how to enter the

market the enterprise will begin operating in the month of January 2023.these are some of the business strategies

The advertising methods during these period and other subsequent periods will be through posters, stickers, journals

and use of employees and customers as sales representatives

Growth

For an enterprise to expand there must be growth in the business. A business is termed successful when it grows in

terms of size and profit income

1.2 Marketplace Analysis

The industry
Solar Solutions fall under the Energy Provision industry.

Size of industry
The energy industry is fast growing sector, each day the growth is escalating due to high demands of electricity for
people all over the country. In the counties the demand is the same as compared to other parts of the country and the
world at large. This industry is extensive covering the energy needs from simple appliances such as Lights, Televisions,
Antenna Boosters to more complex industries such as Municipal Water Pumping, Township Powering among others.
More than 3000 residents of Kitonyoni sub-location, Makueni County, are set to benefit from a multi-million-
shilling solar energy research project. According to the survey the industry is growing rapidly due to high demands of
electricity in the county.

The Industrial Trends and Prospect

Kenya. Kenya is the most industrious nation in East Africa. Kenya has posted an average annual economic growth rate
of 4.75 percent over the past ten years; however, inflation currently lingers at 6.5 percent. Kenya's GDP is expected to
grow at 5 percent annually through 2030. Agriculture is the nation's primary industry, accounting for 33 percent o of
its GDP, and employing over 40 percent of its workforce. Only 24 percent of Kenya's population live in urban areas,
meaning that the country's over 50 million people are widely dispersed. Between 2000 and 2022, demand for
electricity in Kenya grew at an average annual rate of 10.2 percent, a trend that is expected to continue. Over 75
percent of Kenya's electricity consumers are served by hydroelectric power, and the country experiences generation
shortfalls during drought conditions. Most of Kenya's electricity usage is confined to its urban areas.
Makueni. Makueni has a remote farming community in the Eastern side of Kenya, about 300 kilometers from the
western shore of Indian Ocean, at a geographic position of two degrees south latitude. The region experiences two
dependable rainy seasons per year, and receives an annual average of about five peak sun hours per day. About
350,000 people, or 60,000 households, live in this region, which is situated on a wide, level ground at an elevation of
950m / 3117feet above sea level.

1.3 Critical risk analysis

Currency Translation. All of Energy Solutions revenues will be collected in Kenyan
shillings, and almost every shilling collected will have to be converted into U.S. dollars
in order to meet the company's major expense accounts. Although the Kenyan shilling
has deflated considerably against the dollar over the past eighteen months, this trend
may not continue. As far as the founders know, there are no market-based instruments
available for hedging this currency risk. As such, all financial forecasts assume that the
business will lose 5 percent of its revenue to currency exchange fluctuations and
expenses.
Political and Economic Stability. The countries surrounding Kenyan border have experienced a
great deal of strife over the past ten years, characterized by anarchy, exodus, bloody violence, and
massive inflation. Solar Solutions is confident that the political and economic climate in Tanzania
is becoming more and more favorable for business every day, and that real progress is being made
to protect Kenyas economy and infrastructure from the instability.
2.

Marketing Plan
Customer
Market share/size
Competition

Methods of promotion and advertisement

2.1 Customer Focus
Makueni is an extremely dispersed village, with 350,000 people living in an area of 3,200 square kilometers. As a
result, only 1.4 percent of Makueni's most centralized homes and businesses are electrified by the regional utility grid,
while 0.6 percent are electrified with solar power. The remaining 98 percent have no hope of seeing the grid extended
to their homes during the next ten years. Residents of Makueni realize that modernization cannot take place without
electricity, and that access to electricity will significantly enhance their economic prosperity and quality of life. As a
result, it is no surprise that 100 percent of the fifty or so Makueni residents surveyed during the summer of 1999
indicated a strong desire to participate in a financing program that would allow them to afford a solar electric system.

Makueni families live in large houses, typically constructed of brick and concrete. Each house has three to five
bedrooms, a kitchen, a living room, a washroom, and an animal pen. Families submit no property taxes or mortgage
payments. Furthermore, because Makueni is a farming community, residents spend very little on food, except for the
few items, such as rice and fish that must be imported from surrounding districts. Very few people in this village
possess an automobile, and those who do earn three to ten times more than the average yearly income. Aside from a
handful of bars, restaurants, grocery stores, and weekly farmers' markets, Makueni offers very little for the consumer.
Because there is not much in this community to spend money on, Makueni families tend to retain a purchasing power
that is greater than half of their annual income. Nevertheless, due in large part to the inflationary pressures and
banking crises that have plagued Kenya ever since the 1960s, people are generally unfamiliar with the concept of
saving money. Only in the past few years have stabilized banks begun to earn the trust of Kenyan consumers, and in
the rural parts of the country, this trend is proceeding quite slowly.

2.2 Market & Sales Forecasts

Solar Solutions’ projected target market in Makueni is about 19,000 families. There are
58,000 families in the region without electricity. However, these pre-financing plans will be
expensive.
Solar Solutions’ will allow subscribed customers to use the community center for free
during their contract term. This means that customers will be able to enjoy free access to
computers, refrigeration, water distilling, coffee bean processing, telecommunications
access, and other services, for up to a year.
Solar Solutions anticipates subscribing about 1000 families in 2023, the first year of
operation. Makueni residents will witness the delivery of solar electric systems purchased
the previous year by their friends, neighbors, and relatives.
The following table shows sales and revenue forecasts for the years 2023-2028.

2023 2024 2025 2026 2027 2028

Units Sold 1000 1250 2000 5000 7500 8100

2.3 Success Factors

Competing Technologies. Because solar electric systems are so expensive in Makueni, they are viewed as luxury
items. Almost every family would love to have one, but affordability is a preventative issue. As such, people must use
more conventional methods of lighting their homes. Kerosene and dry cell batteries are readily available in Makueni,
but neither item is particularly cheap. Kerosene sells for about 70 shillings per litre, and a typical family uses four to six
litres per month; many organizations, such as schools and health clinics, use twenty to fifty litres per month. Dry cell
batteries retail for about Ksh 20, and may last two or three weeks at the rate most families use their radios. Solar
Solutions chief competition in Makueni is certainly kerosene and disposable batteries, and solar has several
advantages over them.
 First, kerosene lamps are crude and dangerous; it is easy to find an adult in Makueni who has been burned, at some point in his
or her life, by a kerosene lamp leaking, spilling, or completely exploding.
 kerosene lamps provide lighting that is only somewhat better than a large candle, and they tend to be noisy and smelly during
operation.
 Dry cell batteries are expensive because they must be replaced so frequently, and their disposal poses a serious environmental
threat.

 Furthermore, a solar electric system can be used to power any electric appliance. It offers modularity, flexibility, and

expandability, so that one single power source can be used for the house's every electrical need.

2.4 Advertising & Promotion Strategy

Solar Solutions’ will rely greatly on publicity and word-of-mouth advertising to promote
these financing plans. The construction of a 15,000-watt solar power station and
community center will be tremendous news in Makueni, and will therefore serve as a very
useful promotional tool. Residents will be unable to avoid noticing the sheer scale of this
project..
Over 100 people will be employed in this undertaking. Like many rural agricultural villages,
Makueni is a tight-knit community, and people tend to be extremely social. Solar Solutions’
will have to do little to instigate excitement and conversation about this project. Once built,
the generating facility, featuring a 5,000-watt array of sleek solar panels mounted on a
10,000-square-foot scaffold, will serve as a constant advertisement of the electricity that
Solar Solutions’ offers.
To complement the publicity aspect, Solar Solutions will also post billboards .The main
purpose of these billboard advertisements will be to inform and remind customers of
scheduled educational training sessions and technical demonstrations being held at the
community center.
In addition, posters will be used to announce new service offerings or price adjustments,
as needed. Finally, professionally printed brochures, featuring concise descriptions of the
financing plans offered, as well as general information about solar energy, will be widely
distributed.

2.5 Pricing Strategy

Solar Solutions’ will price these kits as low as possible while still yielding an attractive profit. It is
expected that a family living in an impoverished, rural agricultural community will surrender about
half of its yearly income for a necessary item such as reliable electricity. With the pricing strategy
that this business has adopted, Makueni consumers will pay less than half of what a comparable
solar electric system would cost from a typical Kenyan retailer.

At the beginning of the business operations the business will have to operate with normal prices despite the high start

up costs and operation

The nature of the pricing will depend on fundamental business factors, the cost of service, the quality of the product

and services and the nature of product to be solved will be the main determinants. With high cost of services and

products the price might be forced to hike, while with the low price of the product the price will be low

The market price at which the goals and services are currently charged will also be another determinant that is if the

products in the market are expensive then the price will rise but if the prices of the product are low then the price will

lower

The table below is for price list of individual customers

Products Price per product (Ksh)

SOLAR Home Electric kit 22,000 - 48,000

Solar Power System 60,000

Solar Energy Storage System 45,000

Solar roofing system 100,000

Table: The price able for commercial customers

Product Price (per watt) Discount % Price per Watt (Ksh)

Solar roofing system (5000 W) 60 5% (95*60) / 100=57
solar parking canopy (11 kW) 350 10% (90*350) / 100=315
400 15% (85*400) / 100=340
Solar water pump kit
Solar farm installation  115 10% (90*115) /100=104
2.6 Sales Strategy

All sales and operational responsibilities will be contracted to local suppliers, taking advantage of
local contacts and stature in Makueni as a solar energy suppliers. Because their name is already
well known to the community, customers will be dealing directly with a local company that they
trust. A customer service office and reception desk will be established at the community center,
and the local suppliers will collect payments at this location. Solar Solutions’ will pay the local
suppliers a contracting fee based on sales volume. Therefore, they will have an incentive to
aggressively generate sales by subscribing new customers, in whatever fashion they deem
appropriate or effective.

Target Market Strategy

In order to make solar electricity affordable, Solar Solutions will offer families and
businesses the option of paying for their system in twelve monthly installments. The
smallest kit offered will be priced at Ksh 2,000.00 per month. Because people in this
region maintain a purchasing power equivalent to about 50 percent of their annual income,
Solar Solutions’ primary target market in Kitonyini, Makueni consists of about 19,000
families.

2.7 Service Strategy

Financing Terms.Solar Solutions’ will offer "pre-financing" plans to its customers. Under
the terms of these pre-financing options, customers will not have to pay their entire
balance before the business will give them a system.
Because the financing plans will have one-year terms, Solar Solutions’ will offer customers
something while they pay for their electric systems. This is where the community center
will be useful. During the terms of their financing contracts, Solar Solutions’ customers will
be allowed to utilize all services at this community center free of charge. These privileges
will end upon fulfillment of the financing agreement, or if a customer defaults on several
payments. This strategy will allow Solar Solutions to collect money before distributing
systems, and will encourage customers to fulfill their financing agreements. We will gladly
accept down payments for customers desiring shorter financing terms.
Solar Electric Kits. Solar Solutions’ solar electric systems will be sized to meet the needs
of a typical Makueni household.
Very few Makueni homes have the need to power anything more extravagant than a few
fluorescent lights and a radio, and therefore these systems will be small by.
Each system will come with a solar panel, a deep-cycle battery, a charge controller, lights,
a radio, wiring, connectors, and mounting materials. In order to serve the expected high
demand for affordable solar electric systems in Makueni, all systems will be sold as pre-
assembled kits. These kits will be designed to be so simple that end-users will be able to
perform the installations themselves. In this way, we will minimize the size of its technical
staff. Initially, there will be three kit sizes offered.

Solar Solutions’ Initial Product Line

Kit Size Components Price/ Price/Year
Month(Ksh)
1 13 watts 1 light, 1 radio 200.00 24,000.00
2 30 watts 2 lights, 1 radio 3000.00 36,000.00
3 48 watts 3 lights, 1 radio 4000.00 48,000.00

2.8 Distribution Strategy

The community center will be used as Solar Solutions’

administrative office and distribution hub. Most of the components
of the solar electric kits will be shipped by sea from suppliers in
the US, China or Europe to the Indian Ocean port of Mombasa
then trucked overland to Makueni. Solar Solutions will also
attempt to identify reliable suppliers in Kenya to reduce its
dependence on overseas shipping. Upon arrival in Makueni,
technicians will be responsible for assembling all components
into complete solar electric kits, ready for installation. When
customers have satisfied their payment schedules, they will be
cordially thanked for their business, and invited to pick up their
kits from the community center. At this time, customers will be
given written instructions on how to install and maintain their new
systems. During their payment period, and throughout their
duration of ownership, all Solar Solutions’ customers will be
invited to attend free educational workshops on using,
maintaining, optimizing, and expanding their solar electric
systems.
3.
Organization/Management Plan

Organization Structure

Management team

Recruitment, Training and Promotion

Remuneration and Incentives

Support Services
3.1 Company Organization

Solar Solutions founders will control the majority of the company's

equity. Solar Solutions will employ workers on a project/contract
basis. A Board of Directors will be assembled if and when
investors demand one. A Board of Advisers has been compiled in
the meanwhile. This Board is composed of experts with extensive
experience relevant to the area of international rural
development. All of these advisers have agreed to lend their
assistance free of charge.
Organization chart

Chief Exucutive
Officer (CEO)

Human
Resource
Manager

Finance Manager Marketing Manager Operations Manager

3.2 Management Team

Executive Officer. The executive officer is the company’s

primary visionary. He/she should have taken formal coursework
in both PV and wind system design and installation. Access to
many contacts in the industry, and knowledge of key people at
the Renewable Energy Sources Laboratory (RESL), the Ministry
of Public works. The executive officer should have traveled
extensively in East Africa, and conducted market research on
solar financing in Kenya
Operations Manager. The operations officer is a principal co-founder,
will serve as the company's Officer for Operations.
Preferably he/she should be a native of Makueni

Job Title Duties Qualifications

Chief Executive Oversee the strategic direction of an Excellent managerial and financial skills
Officer. organization. and the ability to take leadership over
Implement changes and proposed any business operations
plans. area.Superlative communication skills,
Engage in media obligations and particularly the ability to communicate
public relations. as a leader.
Maintain accountability with the Thorough understanding of
board. management and financial practices in
Setting precedence for the working all areas and phases of business
culture and environment. operations.

Extensive professional experience in

leadership roles.

Education may vary; an advanced

degree in business administration,
finance, or law is preferred, but not
required.

Operations Manager Ensure all operations are carried on in an Proven work experience as Operations
appropriate, cost-effective way Manager or similar role

 Improve operational management  Knowledge of organizational

systems, processes and best practices effectiveness and operations
management
 Purchase materials, plan inventory and
oversee warehouse efficiency  Experience budgeting and
forecasting
 Help the organization’s processes remain
legally compliant  Familiarity with business and
financial principles
  Formulate strategic and operational  Excellent communication skills
objectives
 Leadership ability
 Examine financial data and use them to
improve profitability  Outstanding organisational skills

 Manage budgets and forecasts  Degree in Business, Operations

Management or related field
 Perform quality controls and monitor
production KPIs

 Recruit, train and supervise staff

Marketing Manager Manage and coordinate marketing Intimate understanding of

and creative staff traditional and emerging
marketing channels
Lead market research
efforts to uncover the Excellent
viability of current and communication skills
existing products/services Ability to think
Collaborate with media creatively and
organizations and innovatively
advertising agencies Budget-
Brainstorm ideas for new management skills
campaigns and proficiency
Coordinate with the sales Professional
team and other judgment and
departments to produce discretion that
effective strategies comes from years of
Monitor current experience in the
campaigns, ensuring their field
staff meets deadlines and Analytical skills to
complete necessary tasks forecast and identify
Analyze data to evaluate trends and
the success of their challenges
marketing efforts and Familiarity with the
come up with new ideas to latest trends,
improve brand marketing technologies and
and exposure methodologies in
graphic design, web
design, production,
 etc.

Finance Manager
 Prepare financial statements, business  A bachelor’s degree in finance,
activity reports, and financial forecasts. accounting, economics, or business
administration is required. Five or
 Ensure that the organization’s financial more years’ experience as a
records and recordkeeping methods are in financial analyst is also required.
compliance with applicable standards and
regulations.  Must have demonstrated ability to
lead a team of 6 or more. Good
 Manage employees and contractors who
communication skills and the
are responsible for financial reporting and
ability to work well with people
budgeting.
with and without
 Periodically review the organization’s finance/accounting backgrounds
financial reports and identify opportunities are essential. Project management
for cost reduction. experience is a must.

 Analyze data and advise top management  Preference will be given to

on how to maximize profits. candidates with Certified Financial
 Analyze market trends and identify Analyst (CFA) designation.
opportunities for growth/expansion.

 Oversee organization’s investments.

Community Manager Set and implement social media and Proven work experience as a community
communication campaigns to align with marketing manager
strategies
 Experience launching community
 Provide engaging text, image and video initiatives (e.g. building an online
content for social media accounts forum, launching an ambassador
program, creating an event series
 Respond to comments and customer
and writing an email newsletter)
queries in a timely manner

 Monitor and report on feedback and

 Ability to identify and track
relevant community metrics (e.g.
online reviews
repeat attendance at events)
 Organize and participate in events to build
 Excellent verbal communication
community and boost brand awareness
skills
 Coordinate with Marketing, PR and
 Excellent writing skills
Communications teams to ensure brand
consistency  Hands on experience with social

 Liaise with Development and Sales

media management for brands

departments to stay updated on new  Ability to interpret website traffic

products and features and online customer engagement
 Build relationships with customers,
metrics
 potential customers, industry
professionals and journalists
 Knowledge of online marketing
and marketing channels

 Attention to detail and ability to

multitask

 BSc degree in Marketing or

relevant field

Human Resources
Manager
Manage the staffing process,  bachelor’s degree in
including recruiting, human resources, labor
interviewing, hiring and relations, organizational
onboarding development, business
or related area; relevant
Ensure job
descriptions are up to work experience may be
date and compliant a substitute
with all local, state and Effective verbal
federal regulations and written
Develop training communication
materials and skills
performance Demonstrated
management proficiency in the
programs to help
Microsoft Office
ensure employees suite
understand their job
responsibilities Experience with
the human
Create a resources
compensation strategy information
for all employees based system (HRIS) used
on market research by your company,
and pay surveys; keeps such as Workday,
the strategy up to date Zoho People,
Investigate employee Cloud HR,
issues and conflicts and SmartRecruiters
 brings them to and others
resolution Knowledge of a
Ensure the broad range of
organization’s human resource
compliance with local, strategies and
state and federal practices,
regulations including
Use performance compensation,
management tools to performance
provide guidance and management,
feedback to team safety, hiring and
employee
Ensure all company relations; able to
HR policies are applied apply these
consistently strategies and
Maintain company practices in
organization charts and compliance with
employee directory employment
Partner with regulations
management to ensure Ability to create a
strategic HR goals are culture of diversity,
aligned with business inclusivity,
initiatives collaboration and
teamwork
Experience with
analyzing data to
guide strategic
employment
planning

Engineers (Civil, Electrical,

Environmental)
undertaking technical and
 feasibility studies including  the ability to think methodically
and to manage projects
site investigations
 problem-solving skills
 using a range of computer software for
 ability to work to deadlines and
developing detailed designs
within budgets
 undertaking complex calculations
 ability to maintain an overview of
 liaising with clients and a variety of entire projects while continuing to
professionals including architects and attend to detailed technicalities
subcontractors  excellent verbal and written
 compiling job specs and supervising communication skills
tendering procedures  negotiating, supervisory and
 resolving design and development leadership skills
problems  complete knowledge of relevant
 managing budgets and project resources legislation.

 scheduling material and equipment

purchases and deliveries

 making sure the project complies with

legal requirements, especially health and
safety

Key Personnel.

Job Title Duties Qualifications

Technical Trainers Responsible for the development Excellent Customer Service and
Technical skills with a positive attitude.
of staff which will involve the
requirement, development, Ability to identify customer
coordination and presentation of concerns and opportunities
training staff and review with the ability to provide
documentation of procedures resolution.
shared with the theatre employees
Perform the planning,
Advanced PC skills
coordination, and presentation of
including Microsoft Suite
internal/external training
Applications; Advanced
programs.
Excel experience is a plus.
 Constantly improve training by Ability to facilitate solutions
evaluating effectiveness of in a fast paced, complex
specific job applications technology, and business
environment

 Developing tools to improve

efficiency, having existing tools Excellent interpersonal and
optimized, and providing related relationship skills; be seen as
training for all team members a leader and trainer to other
technical people on the team

Mentor and lead staff.

Able to personally execute
and succeed with any of the
Provide leadership around skills or activities for which
development and management of you are responsible to Train.
knowledge and expertise.

Strong time management

Communication with manager and organizational skills
and team members.

Excellent oral, written and

presentation communication
skills

Decision-making skills to
determine the most
appropriate solutions

Technical Staff
(Installation Officers,
Identifying hardware and Attention to detail and
Assemblers, Electrical good problem-solving
Technicians)
software solutions. skills.
Troubleshooting technical Excellent interpersonal
issues. skills.
Diagnosing and repairing
faults. Good written and verbal
Resolving network issues. communication.

Installing and configuring

Prior experience in tech
hardware and software.
support, desktop support,
Speaking to customers to or a similar role.
quickly get to the root of their
problem.
Providing timely and accurate
customer feedback.
Talking customers through a
series of actions to resolve a
problem.
Following up with clients to
ensure the problem is resolved.
Replacing or repairing the
necessary parts.
Supporting the roll-out of new
applications.
Providing support in the form
of procedural documentation.
Managing multiple cases at
one time.
Testing and evaluating new
technologies.
 Conducting electrical safety
checks on equipment.

Supplies Manager Create the company’s supply chain Previous experience as a supply
strategy chain manager or in a similar
field
 Analyze data from shipping and delivering
processes to find bottlenecks and other  Excellent knowledge of supply
issues  chain processes 
 Evaluate and report on KPIs   Working experience of relevant
 Monitor logistics to make sure they run software (e.g. SAP MM)
smoothly   Strong communication skills
 Maintain supply chain inventory and  Excellent organizational and
records project management skills
 Train and guide employees  Attention to detail
 Find cost-effective solutions for supply  Creative problem-solving
chain processes

 Resolve issues that come up (e.g. delays in

 A strategic and analytical mind

delivery, accidents)  Degree in Supply Chain

 Collaborate with other departments to

Management, Logistics, or similar
field
create coordinated plans for business

Procurement Officer
 Overseeing and  High school
supervising employees diploma/GED.
and all activities of the Degree in accounting,
purchasing department.
business management or a
 Preparing plans for the similar field preferred.
purchase of equipment, 2+ years of experience as
services, and supplies. a procurement officer or in
 Following and enforcing a similar position.
the company's procurement Proficiency in Microsoft
policies and procedures.
  Reviewing, comparing, Office and purchasing
analyzing, and approving software.
products and services to be Strong communication
purchased. and negotiation skills.
 Managing inventories and Good analytical and
maintaining accurate purchase strategic thinking skills.
and pricing records.
Supervisory and
 Maintaining and updating management experience.
supplier information such as
qualifications, delivery times, Attention to detail.
product ranges, etc.
 Maintaining good 
supplier relations and
negotiating contracts.
 Researching and
evaluating prospective
suppliers.

 Preparing budgets, cost

analyses, and reports.

Other personnel

Job Title Duties Qualifications

Accountant
 Manage all accounting  Work experience as an
transactions Accountant

 Prepare budget forecasts  Excellent knowledge of

accounting regulations and
 Publish financial statements
procedures, including the
in time Generally Accepted
 Handle monthly, quarterly Accounting Principles (GAAP)
and annual closings  Hands-on experience with
 Reconcile accounts payable accounting software like
and receivable FreshBooks and QuickBooks

 Ensure timely bank  Advanced MS Excel skills

payments including Vlookups and pivot
tables
 Compute taxes and prepare
tax returns  Experience with general
ledger functions
 Manage balance sheets and
profit/loss statements  Strong attention to detail
and good analytical skills
 Report on the company’s
financial health and liquidity  BSc in Accounting, Finance
or relevant degree
 Audit financial transactions
and documents  Additional certification (CPA
or CMA) is a plus

Sales Representative
Generating leads. Bachelor’s degree in
Meeting or exceeding business, marketing,
sales goals. economics, or related
field.
Negotiating all
contracts with Experience in sales.
prospective clients. Understanding of the
Helping determine sales process and
pricing schedules for dynamics.
quotes, promotions, A commitment to
and negotiations. excellent customer
Preparing weekly and service.
monthly reports. Excellent written and
Giving sales verbal communication
 presentations to a skills.
range of prospective Superb interpersonal
clients. skills, including the
Coordinating sales ability to quickly build
efforts with marketing rapport with both
programs. customers and
Understanding and suppliers.
promoting company Experience using
programs. computers for a variety
Obtaining deposits of tasks.
and balance of Competency in
payment from clients. microsoft applications
Preparing and including word, excel,
submitting sales and outlook.
contracts for orders.
Visiting clients and Able to work
potential clients to comfortably in a fast
evaluate needs or paced environment.
promote products and
services.
Maintaining client
records.

Answering client
questions about credit
terms, products, prices,
and availability.

Security Officer Contribute to security team Following Complex

effort by accomplishing Instructions

related results as needed Interpersonal Skills

Ensure the security, safety, Knowledge of Security

and well-being of all Operations and Procedure

personnel, visitors, and the Manage Multiple Tasks

premises Knowledge of Basic
Provide excellent customer Security and Fire Inspection
service Procedures
Adhere to all company Lifting
service and operating Self-Defense
standards
Outstanding Surveillance
Remain in compliance with
Skills
local, state, and federal
Judgment
regulations

Respond to emergency

situations to provide

necessary assistance to

employees and customers

Protect the company's assets

relative to theft, assault, fire,

and other safety issues


Drivers
 Assist clients with loading  Proven experience as a
and unloading their luggage Driver

 Listen to traffic and weather  A valid driver’s license

reports to stay up-to-date on
road conditions
 A clean driving record

 Adjust the route to avoid  Minimum visual acuity of

heavy traffic or road 20/50 (or corrected to
constructions, as needed 20/50)

 Answer clients’ questions  Familiarity with GPS devices

about the area and local  Knowledge of area roads and
places of interest
neighborhoods
 Ensure the car seats are
 Ability to lift heavy packages
clean and comfortable for all
and luggage
riders
 Availability to occasionally
 Schedule regular car service
take weekend and night
appointments and report
shifts
any issues
 A polite and professional
 Book car wash and detailing
disposition
services to maintain interior
and exterior cleanliness of
the car
3.3 Recruitment, Training and Promotion
Recruitment Process: Talent Acquisition & Selection
The process of selecting the right candidate involves planning and strategic action.

Job Description Offer

A clear and detailed job description is crucial in finding the ideal candidate for the vacancy.The job description will be crystal
clear in what the role entails. When writing the perfect job description, we will indicate the abilities, knowledge, and
necessary experience required.

Advertising the Offer

One of the first hiring steps to finding candidates who fit the bill is to advertise the offer in the correct place. We will use
specialized job boards to connect with job seekers. Other methods will be to communicate our offer through their website
or by advertising on posters, newspapers, or radio.

In addition, social media is a great resource wecwill use when advertising our job postings.

The reasons we use advertisement is because it is

1) Cheap. It is not costly as compared to other methods

2) It is popular-the adverts are accessed by many people

3) It can take long before it gets invalid. Depending on the customer

CV (resume) Selection

After gathering all of the resumes, we will  narrow down the selection. Following this,it will be time to screen candidates who
fit the requirements of the role.

Conducting Personal Interviews

This is the best way to know the potential employees better and gain an understanding of whether they would be a good
match in the company. Also, phone interviews will be beneficial for recruiters to narrow down the candidates.

Trial Period

We will carry out role specific-tests, to make sure the candidates meet the requirements of the position.

Assessment & Selection of Top Candidates

Assessing interviews and tests allows you to narrow down your search and find the ideal candidate for the role. Using
an applicant tracking system, such as the one Factorial offers, can keep you on track and help streamline the process of
recruiting staff.
Training
Training will be necessary for new emloyees to get an idea of the
following:
General information about the daily work routine.
Foundation, history, objectives, mission, vision, products, services, etc. of the
organization.

How workers are required to perform their jobs, that will contribute to the
organization’s objectives.

Detailed presentation of company’s policies, work rules and employee benefits.

Promotion

We will make the decision-maker or top management understand the need to

promote an employee and the benefits the company will be acquiring should
they approve of it.
3.4 Remuneration and Incentives
Remuneration
Periodic compensation.
Under this type of pay plan, compensate workers for spending time at work. Pay rates can differ
due to skill, seniority, or education level. With this type of remuneration, there is no direct
connection between performance and compensation. Motivate the workers with the prospects
of being promoted to a higher pay rate, and avoid demotion and dismissal.
Incentives
We will use the following incentives to engage and motivate employees
over the long haul.

Recognition and rewards.

Points-based recognition.

Referral programs for employees and customers .

Profit sharing.
In attempts to improve the performance of employees, the business will install a range of strategies. There will be a piece

work system of servicing whereby the employees will be enumerated according to the piece of work they produced within a

given rate of payment

The profits and other gains made by the centre will also be shared between the manager and the other employees

The various welfare services and other benefits will equally be provided by the business in pursuit of the comfort of its

employees. The employees will also be given the chances to participate in the decision making process within the business.

This will likely inspire the performance of the employees in terms of productivity efficiency and effectiveness.

Category of employee Basic salary Allowances Total remunerations

Managers 100,000 20,000 120,000

Sales Representative 85,000 20,000 105,000

Accountants 70,000 15,000 85,000

Procurement Officers 70,000 10,000 80,000

Drivers 30,000 10,000 40,000

Engineers 150,000 20,000 170,000

3.5 License and permits

Before the beginning of its operation the enterprise will quire the permit from the Ministry of Trade and a license from the

City Council of Nairobi.

These documents will be renewed when required, for instance by laws of the city council in regards to working hours, hours

will have to be adhered to and worked upon as the basis on which the operation of the business will be enhanced.

Waste disposal by laws as formulated by the city council of equally determine the operation of the enterprise.

Supportive services
In its operations the business will need several services so as to effectively undertake its key and subsidiary objectives

The following services will be sourced from outside firms

Banking services

These will be needed to keep excess funds and advices on the best way of undertaking future investment

The enterprise will be in liaison with the Kenya commercial bank

Coop Bank,
P.o Box 7789, Nairobi.
Tom mboya avenue branch
Telephone 0720345555
Email:info@coop.co.ke
2.15.2 Insurance services

The business will have to source for insurance services from the Madison insurance company, Nairobi branch. both the

business premises products and personnel will be in insured against any risks or dangers

Madison insurance co.

P.o Box 0007211,
Nairobi
Telephone 0012770774
Email; info@madson.co.ke
2.15.3 Legal services
The business will have to prepare legal document and at time seek to be represented in a court when there is a case of
whatever nature especially when entering into business contracts, the finer details required in the execution of contractual
obligations and the consequences associated with the non compliances of work with Rotich and company advocates that will
help it transact its business in the region
Rotich and company

P.o Box 459980

Nairobi

Telephone; 0722613791

Email;rotco@gmail.com
4.

Production/Operation Plan
Production planning
Facility and capacity
Production Strategy
Production planning process
Rules and regulation
4.1 Production Objectives
Jibana Building Construction Company has some objectives related to producing products

First the business has a plan to produce more goods or products as compared to the customers demand. The business

also has a plan to build houses that can withstand any kind of catastrophe. This includes earthquakes and

thunderstorms. The main reason to build such strong houses is to ensure our customers are safe in all kinds of

weather an avoiding any fatal case of the above to occur

4.2 Production Facilities and Capacity

Facilities will be provided in abundant to enable smooth running of the business. The business is also planning to offer

facilities for young children and people with special needs and many more. By doing so Jibana Building Construction

Company will be more famous and considered to be serving every member of the community or people from different

walks of life irrespective of their disabilities ,status and gender.

4.3 Production Strategy

Customers will start their lifetime relationship with Solar Solutions upon receipt of their first solar
electric kit. In time, they will learn to effectively apply the full potential of solar energy, and they
will completely replace archaic kerosene lamps and dry cell batteries with the solar electricity that
will become the routine hallmark of the future for communities like Kitonyini.
All of Solar Solutions operations in Karagwe will be contracted out to local suppliers. The
operation manager will facilitate dealings with the Makueni county government, as well as with
Kenyan Government,both in the construction of the power station and in ongoing operations.

Scope of Operations
Local suppliers will be responsible for conducting the following activities in Makueni:

Operating and maintaining the power station and community center

Placing supply orders and maintaining inventory
Overseeing and orchestrating solar kit assembly and distribution
Collecting customer payments
Servicing customer repair calls and manufacturer's warranties
Printing and distributing advertisements, such as billboards, posterboards, and brochures
 Subscribing new customers and up-grading current and past customers
Organizing informational forums and instructional demonstrations

4.4 Production planning process

Solar Solutions will have assembled a legal team and incorporate during the first quarter of
2023. After completing and revising the business plan, the company will begin to seek
grants and investments from accredited private investors, multi-national relief agencies,
and, possibly, from large corporations.
There will be some need for product development and prototyping in Makueni. Solar
electric systems consist of four main components.
Solar Solutions’ solar electric systems will be sold as pre-assembled kits. Because
customers will be expected to perform their own installations, the company will need to
test customer reaction to these kits. Specifically, Solar Solutions will assemble several
versions in order to develop a packaging method that optimizes simplicity for the
customer. Prototype testing will be conducted simultaneously with the construction of the
power station and will take less than one month to complete.

The Projects will be launched in five major phases, following estimated timelines:

Phase 1 Incorporation: Finalize business plan, incorporate, January-March 2023

build project website
Phase 2 Venture Financing: Ksh 30 million for construction February-September 2023
of power station and community centre, and to
jump-start operations
Phase 3 Construction of power station and community October-December 2023
centre
Phase 4 Optimize solar kit packaging and assembly November 2023
Phase 5 Subscribe customers to solar kit financing plans December 2023

4.5 Regulations Affecting Operations

1. Tax Code Business Regulations

Taxes are invariably one of the biggest regulations that business
owners need to keep on the radar. But, following the tax code isn’t
only about making payments; it’s about paying the correct taxes, and
being prepared to make payments at the right time. Some tax laws
also fluctuate based on the structure of the business.

2. Employment And Labor Laws

Labor laws and other business laws and regulations relating to
employment are crucial for small businesses to follow as well. The
Fair Labor Standards Act defines how business owners must treat
employees by outlining policies for minimum wage, as well as
overtime. However, minimum wage requirements can also differ
based on the state. According to this regulation, overtime fees must
be at least time and a half the standard pay rate.

3. Advertising
False advertising regulations apply to businesses the same way they
apply to huge corporations.

4. Environmental Regulations
Environmental regulations to control pollution, emissions and
environmental hazards from businesses in the service industry.

5. Privacy
As dictated by government business regulations, companies are
forbidden from compromising employees’ privacy. There are several
different rules regarding how employees must save (and not release)
private information.

By law, employers cannot disclose any sensitive information they

provided to you in confidence. This includes:
Name

Address

Social Security Number

Financials like bank and routing numbers

Health conditions
5.

SWOT Analysis
Strengths Weaknesses

Aside from the fact that we have a vast acre As a new solar farm and solar panel
of land in a strategic location in the Makueni installation, maintenance, and repair
region for our solar farm, Our core strength company in the market, it might take some
lies in the power of our team; our workforce. time for our organization to break into the
market and gain acceptance especially from
We have a team of certified and highly top profile clients in the already saturated
trained and experienced solar panel and highly competitive Solar Farm Developers
installation, maintenance, and repair industry; that is perhaps our major weakness.
engineers and technicians, a team with Another weakness is that we may not have
excellent qualifications and experience in the required cash to pump into promoting
various niche areas in The Solar Farm our business the way we would want to.
Developers industry. Aside from the synergy
that exists in our carefully selected
workforce, our services will be guided by
best practices in the industry.

Opportunities
Threats
No doubt, the opportunities in the Solar
Just like any other business, one of the major
Farm Developers industry are massive
threats that we are likely going to face is an
considering the support from the
economic downturn. It is a fact that the
government and of course the number of
economic downturn affects
individuals and corporate organizations who
purchasing/spending power. Another threat
are now switching over to alternative energy
that may likely confront us is the arrival of a
such as solar energy. As a solar farm cum
new solar farm or solar panel installation,
solar panel installation, maintenance, and
maintenance and repair company in the same
Repair Company, we are ready to take
location where our target market exists and
advantage of any opportunity that is
who may want to adopt the same Business
available in the industry.
model as us.
6.

Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
6.1 Important Assumptions

The financial projections of the company are forecast on the basis of the following assumptions. These
assumptions are quite conservative and are expected to show deviation but to a limited level such that the
company’s major financial strategy will not be affected.

Year 1 Year 2 Year 3

Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%

6.2 Brake-even Analysis

Monthly Units Break-even 5530 Units

Monthly Revenue Break-even Ksh. 1,159 740
Assumptions:

Average Per-Unit Revenue Ksh 26,087

Average Per-Unit Variable Cost Ksh 89.00
Estimated Monthly Fixed Cost Ksh 196 4100
6.3 Projected Profit and Loss

Year 1 Year 2 Year 3

Sales (Ksh) 3,090,690 385 934 462 799
Direct Cost of Sales 151,000 191,530 232060
TOTAL COST OF SALES 151,000 191,530 232060
Gross Margin 2939690 3667810 4395930
Gross Margin % 94,98% 94,72% 94,46%
Expenses (Ksh)
Payroll 1380360 1628980 1877600
Sales and Marketing and Other Expenses 18500 20000 21500
Depreciation 20700 20700 20700
Utilities 40000 42500 45000
Insurance 18000 18000 18000
Rent 65000 70000 75000
Payroll Taxes 345100 407260 469420
Total Operating Expenses 1887660 2207440 2527220
Profit Before Interest and Taxes 1052050 1460400 1868750
Taxes Incurred 268380 373150 477920
Net Profit 783670 1087250 1390830
Net Profit/Sales 30,00% 39,32% 48,64%
6.4 Profit Yearly

Profit
1500.00k

1000.00k

500.00k

0
Year1 Year2 Year3

Financial Year Profit

Year1 1000000
Year2 1200000
Year3 1400000

6.5 Gross Margin Yearly

Gross Margin

Year1

Year2

Year3

0 2.00k 4.00k 6.00k 8.00k 10.00k 12.00k 14.00k 16.00k

Financial Year Gross Margin

Year1 1000000

Year2 1200000

Year3 1400000
6.6 Projected Cash Flow

Cash Received Year 1 Year 2 Year 3

Cash from Operations (Ksh)

Cash Sales 401240 450460 500680

Cash from Receivables 70230 86100 92970

SUBTOTAL CASH FROM OPERATIONS 471430 536510 593590

Additional Cash Received (Ksh)

Sales Tax, VAT, HST/GST Received 0 0 0

New Current Borrowing 0 0 0

New Other Liabilities (interest-free) 0 0 0

New Long-term Liabilities 0 0 0

Sales of Other Current Assets 0 0 0

Sales of Long-term Assets 0 0 0

New Investment Received 0 0 0

SUBTOTAL CASH RECEIVED 471430 536510 553590

Expenditures from Operations(Ksh)

Cash Spending 216470 242040 269510

Bill Payments 135390 153850 1706310

SUBTOTAL SPENT ON OPERATIONS 352960 395490 435820

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0

Principal Repayment of Current Borrowing 0 0 0

Other Liabilities Principal Repayment 0 0 0

Long-term Liabilities Principal Repayment 0 0 0

Purchase Other Current Assets 0 0 0

Purchase Long-term Assets 0 0 0

Dividends 0 0 0

SUBTOTAL CASH SPENT 352960 354890 438820

Net Cash Flow 1155100 1316700 1568300

Cash Received Year 1 Year 2 Year 3

Cash Balance(Ksh) 2182300 2238100 2823900

6.7 Projected Balance Sheet

Assets Year 1 Year 2 Year 3

Current Assets (Ksh)

Cash 18466600 21852500 25238400

Accounts Receivable 1261300 1449300 1637300

Inventory 298000 345000 392000

Other Current Assets 100000 100000 100000

TOTAL CURRENT ASSETS 20125900 23746800 27367700

Long-term Assets

Long-term Assets 1000000 1000000 1000000

Accumulated Depreciation 1242000 1449000 1656000

TOTAL LONG-TERM ASSETS 98000 61000 24000

TOTAL ASSETS 19883900 3297800 26711700

Current Liabilities(Ksh)

Accounts Payable 48200 1079200 1210200

Current Borrowing 0 0 0

Other Current Liabilities 0 0 0

SUBTOTAL CURRENT LIABILITIES 948200 1079200 1210200

Long-term Liabilities 0 0 0

TOTAL LIABILITIES 948200 1079200 1210200

Paid-in Capital 3000000 3000000 3000000

Retained Earnings 4865100 7263600 9662100

Earnings 10070900 11955500 13840100

TOTAL CAPITAL 18936000 22219000 25502000

TOTAL LIABILITIES AND CAPITAL 19883900 23297800 26711700

Net Worth 18206000 22624000 27042000

6.8 Business Ratios

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 4,35% 30,82% 63,29% 4,00%

Percent of Total Assets

Accounts Receivable 5,61% 4,71% 3,81% 9,70%

Inventory 1,85% 1,82% 1,79% 9,80%

Other Current Assets 1,75% 2,02% 2,29% 27,40%

Total Current Assets 138,53% 150,99% 163,45% 54,60%

Long-term Assets -9,47% -21,01% -32,55% 58,40%

TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%

Current Liabilities 4,68% 3,04% 2,76% 27,30%

Long-term Liabilities 0,00% 0,00% 0,00% 25,80%

Total Liabilities 4,68% 3,04% 2,76% 54,10%

NET WORTH 99,32% 101,04% 102,76% 44,90%

Percent of Sales

Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%

Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%

Advertising Expenses 2,06% 1,11% 0,28% 1,40%

Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%

Main Ratios

Current 25,86 29,39 32,92 1,63

Quick 25,4 28,88 32,36 0,84

Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%

Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%

Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%

Additional Ratios

Net Profit Margin 19,20% 21,16% 23,12% N.A.

Return on Equity 47,79% 50,53% 53,27% N.A.

 Year 1 Year 2 Year 3 Industry Profile

Activity Ratios

Accounts Receivable Turnover 4,56 4,56 4,56 N.A.

Collection Days 92 99 106 N.A.

Inventory Turnover 19,7 22,55 25,4 N.A.

Accounts Payable Turnover 14,17 14,67 15,17 N.A.

Payment Days 27 27 27 N.A.

Total Asset Turnover 1,84 1,55 1,26 N.A.

Debt Ratios

Debt to Net Worth 0 -0,02 -0,04 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios

Net Working Capital (Ksh) 120 943 140 664 160 385 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios

Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.

Acid Test 23,66 27,01 30,36 N.A.

Sales/Net Worth 1,68 1,29 0,9 N.A.

Dividend Payout 0 0 0 N.A.

7.

Risk Management

Strategy &
Implementations

Risk identification
Risk evaluation
Risk Management
7.1 Risk Identification
Here the business risks are identified. In Solar Solutions, some of the most feared risks are earthquake, financial risks

and many more

7.2 Risk evaluation

Risk evaluation is concerned with assessing probability and impact of individual risks taking into account any factors

outside the immediate scope under investigation

In Solar Solutions there is probability that some risks may arise. probability is the evaluated likelihood of particular

outcome actually happening including a consideration of the frequency with which the outcome may arises for

example major damage to solar installation is relatively unlikely to happen but would have enormous impact on

business continuity.

Choosing device of handling

Risks are many and occur differently however there are some devices that can be used to handle the risks when they

occur

Solar Solutions will ensure the following things are put into consideration to avoid risks

All technical workers will be provided with helmet for protection in case of on-site accidents

Strong functions will be put in place to withstand earthquake

Fire extinguisher will be provided in the installations incase of inferno

7.3 Types of Risk

Financial risks

Financial support is very crucial to any business to function however lack of it can cause the business to fail drastically

and stop functioning.

Debts can also cause the business fail since the business needs many top function and when debts are incurred it

means there is no many and businesses don’t run in absence of money to cater for its expenses

Currency Translation. All of Energy Solutions revenues will be collected in Kenyan

shillings, and almost every shilling collected will have to be converted into U.S. dollars
in order to meet the company's major expense accounts. Although the Kenyan shilling
has deflated considerably against the dollar over the past eighteen months, this trend
may not continue. As far as the founders know, there are no market-based instruments
available for hedging this currency risk. As such, all financial forecasts assume that the
business will lose 5 percent of its revenue to currency exchange fluctuations and
expenses.
Political and Economic Stability. The countries surrounding Kenyan border have experienced a
great deal of strife over the past ten years, characterized by anarchy, exodus, bloody violence, and
massive inflation. Solar Solutions is confident that the political and economic climate in Tanzania
is becoming more and more favorable for business every day, and that real progress is being made
to protect Kenyas economy and infrastructure from the instability.

Economic Risk

Economy is crucial for a business to function regarded that in real estate materials price do change with economy

changes. The business will face risks in terms of economy when there is inflation, this may affect the budget and plans

of the business to carry out its activity.

7.4 Risk Management

Solar Solutions will put in place mechanism to overcome this risk. In terms of financial risks the business will put in

place some measures to make sure it gets its financial plans in order through;

 Borrowing loans from banks

 Using the savings to boost the business

 Contribution from friends

To overcome economic risks the business ensure that

 Its budget is not fixed

 It will purchase many of its material to avoid later rush when there is inflation