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Business start-up

LIMBS & LIMBS

This is an ICT service enterprise aimed at creating employment opportunities as well as offering excellent high speed internet services in Budalangi region, a rural area in Bunyala district, Western province, Kenya.

The business is to offer internet services in Budalangi region. In this respect, the firm will provide high speed internet services to the local people. This is to be the first internet connection in the district.

Among the services to be availed are: internet/browsing, photocopying, binding, printing, scanning and laminating services and the selling of mobile phones airtime.

The market is wide and still virgin. There are seven secondary schools, and about 30 primary schools in this region. Both teachers and students from these schools are potential customers. Budalangi market serves as the district headquarter and hosts several government agencies. Government employees will use the service and hence it is projected to be a successful business venture.

In general, the youth in the area and staff of non-governmental organizations like World Vision, Action Aid and others will use this service. Members of the community at large are expected to subscribe to the service.

Facts

Legal status business
Formally registered
Year of establishment

2007

Sales (US$)
Two years ago:
Last year:
This year (forecast): 170,000
Year 2 (forecast): 200,000
Year 3 (forecast): 350,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): -142880
Year 2 (forecast): -112880
Year 3 (forecast): 37,120
Total number of Employees
Two years ago:
Last year:
This year (forecast): 14
Year 2 (forecast): 18
Year 3 (forecast): 20

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 235,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 77,880
Total finance needed (US$) 312,880

How do you expect this to be financed?

Own Contribution in cash 3,000
Loans (debt) 100,000
Shares in your company that you offer to investors (equity) 150,000
Other sources 59,880
Total finance needed (US$) 312,880

The Business

What is your product/service?

The business is to offer internet service, allowing people to browse, send and receive e-mails.
Other services will include online research and e-learning/online learning, photocopying, scanning, laminating, and printing services.
Mobile phone airtime will also be sold.
With time computer training services will be offered. Repair and maintenance of computers will be done.
This is to become the first internet/computer service business in the region and its potential cannot be overemphasized.

What customer need/problem do your products/services satisfy?

The need for faster and reliable communication service will be provided. Since the region is remote and about 800km from Nairobi, the capital city, a reliable and faster internet service is essential.
Other related services like photocopying, binding, laminating and scanning will be offered.
Internet training opportunities will be availed to the people.]

How will you make the product/service?

This will definitely rely on our technical staff to ensure that all machines and computers are connected and working well.
This staff will co-ordinate with the ISP to ensure that we are always online and at high speed to satisfy our customer needs regularly and without interruptions.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

-We will offer affordable charges like Ksh.1 per minute. This will attract more customers.
-We also hope to constantly train our employees in customer relations skills.
-Advertisements will be put in both electronic and the print media.
-Fliers and brochures outlining our services will be printed and distributed freely.
-We shall give special offers on some specified days.

To whom are you selling, what is your market?

The entire Budalangi district is the market. There is no internet connection at the moment and this is bound to be a groundbreaking investment.
The students and teachers in both secondary and primary schools are bound to get hooked to the service.
Other government employees and non-governmental workers in the region will use this service.
The youth and the members of the community in general will use this service.

Describe your competitors?

Since this is the first venture in the area, there are no competitors. However, with time we expect to get competitors. Also when we will move to other regions we may encounter competitors.

What makes your business different/better than your competitors (competitive advantage)?

We hope to be quite flexible and use reliable high speed internet connection. If need arises we can use several ISPs to make sure that we are online 24/7.
We hope to commit some few computers connected via mobile phone modems, others via Adsl connection while others the via the vsat / satellite technology so that if one system fails, we switch to another without seriously interfering with our services

What makes your business, your product or service innovative?

-It is to be the first of its kind in the region.
-There will also be several services offered under one roof. These include:

 Photocopying
 Binding
 Laminating
 Scanning
 Typesetting
 Internet
 Airtime sale

We will also try to bring several ISPs on board to ensure 24hrs / 7 days a week connection without interruption.
In future we may install solar power to run our machines instead of relying on the mains power supply. For emergence purposes, a medium capacity power generator will be purchased to provide necessary energy in case mains power goes off.

How will you ensure the growth of your business?

This will be ensured by always working to satisfy our customers. We will also strive to follow strict accounting and auditing procedures.

Our staff will always be trained and motivated to enhance staff efficiency.
The profit is to be ploughed back into the business for expansion purposes.

Then we will try to diversify in other related services like computer training and expanding our branches.
We shall also maintain relationships with established businesses in the industry.
We will source quality computers which will be serviced regularly.

Quality service and customer satisfaction coupled with prudent financial management will spur us to greater heights.

The Entrepreneur & Management

Describe the entrepreneur & management

This is Mr.John Juma Wandera. I am the entrepreneur and am to become the general manager.
I hope to put in place a management board that will comprise qualified individuals.

What specifically makes you and (if relevant) your management team most qualified to build this business?

Personally I am in love with computers.
I have done several computer application courses. I am also constantly in cybercafés surfing the internet.
I am at the moment taking computer hardware/software maintenance course on part time basis.
I hope to put in place computer savvy managers who are well trained in the field.

How much time do/will you expect to spend per week in the business?

Once the business starts, I will be able to put 90% of my time in the business to ensure that it succeeds.

Development

How does your business improve the local living standards (social and environmental)?

Women Empowerment.

Women will access any information they may require and they will also be able to communicate easily with gender equality advocacy The service will ease communication in the area through electronic mails.

Education
The service will enhance learning since students and teachers will access resources on the internet.
People will be able to register for online courses.
Online educational research will be facilitated.

organizations. They will access various websites.
We shall help them identify as many relevant websites as possible.

The environment

Environmental information will be accessed online.
Members of the community will be able to network with relevant organizations worldwide.
They can source funding and technical expertise on environmental issues.

Health
The people will access information on health matters at the press of a button. People could get prescriptions and even seek advice on health issues online rather than traveling to distant places to seek medical attention.

Housing
The locals will access current information on housing issues like loans/funding for construction of houses and other related issues .Architectural plans could be ordered online for those planning to build.

E-commerce
E-commerce will promote business in the region. There are several goods that can be marketed online. For instance traditional baskets and curios, fish, amaranth and even rice could be marketed via the internet.
The people in this region will have an opportunity to buy goods online.

In a nutshell, the internet will promote information flow in the region and bridge the gap between town residents and those in remote areas.
This will be a powerful tool that will open up the region and many people will be enlightened on a number of subject areas hence the level of ignorance will drop. This will eventually reduce poverty in the area.