ELIXSAM TECH GADGET RENTAL ENTERPRISE

CANDIDATE NAME :OLONGO A ELIAKIM

INDEX NUMBER :5820010071

CENTER CODE :2920

PAPER CODE :2920/108
INSTITUTION CODE: :582001

CENTER NAME : MAASAI MARA TECHNICAL AND VOCATIONAL

COLLEGE

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL FOR

THE AWRD OF DIPLOMA INFORMATON
COMMUNICATION TECHNOLOGY

EXAM SERIES : NOVEMBER 2023

SUPERVISOR : MARY KAIRO

DECLARATION
I declare that this business plan is my work and it has never been presented to Kenya National

Examination Council for any award of certificate or diploma.

CANDIDATE’S NAME:

DATE SIGN

SUPERVISOR’S NAME

DATE SIGN

i
DEDICATION
I dedicate this document to my family and friends. A special feeling of gratitude to my prayerful

loving mother Eunia Nanjala whose words of encouragement and push for higher limits keep

propelling me. My sister Elizabeth Andeta who always applaud every single step I make in my

academic endeavor.

I also dedicate this to my friends Fides Muthoni for supporting me throughout the process by

offering me to entirely use her laptop, acting as a stepping stone towards my skills in technology

advancement. It’s a special thanks as I hold all mentioned dear in my heart.

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ACKNOWLEDGEMENT
First of all, I would like to show my gratitude to the Almighty God who makes able to successful

compilation of this business plan. I would also like to thank our supervisor Mrs. Mary Kairo for

guiding us throughout our task completion and for always making sure that she is available

where we need her assistance. I would also extend the same gratitude to my family, especially

my parents for being prayerful and encouraging me through thick and thin.

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EXECUTIVE SUMMARY

1.0 CHAPTER ONE: BUSINESS DESCRIPTION

This Chapter comprises of business name, background of the owner, location and address of

opportunity, goals and objectives, industry, form of ownership entry and growth strategy.

2.0 CHAPTER TWO: MARKETING PLAN

This chapter comprises of customers, market size, price strategy, sales tactics, advertising and

promotion strategy and distribution works.

3.0 CHAPTER THREE: ORGANISATION PLAN

This chapter comprises of organization, organizational structure managers and qualifications,

personnel duties and wages paid, recruitment, training and promotion, renumeration and

incentives, license, permit and support services.

4.0 CHAPTER FOUR: OPERATION PLAN

This chapter comprises of production facilities and their equipment monthly equipment facilities

and maintenance proposed workshop layout, production strategy, production process and

regulation affecting operation.

5.0 CHAPTER FIVE: FINANCIAL PLAN

The chapter comprises of pre- operational cost, income and expenditure, account projected,

balance sheet, working capital, projected cashflow statement, desired financing, proposed

capitalization, bank even analysis and probability ratio.

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TABLE OF CONTENTS
DECLARATION..............................................................................................................................i
DEDICATION................................................................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
EXECUTIVE SUMMARY............................................................................................................iv
1.0 CHAPTER ONE: BUSINESS DESCRIPTION.......................................................................iv
2.0 CHAPTER TWO: MARKETING PLAN................................................................................iv
3.0 CHAPTER THREE: ORGANISATION PLAN......................................................................iv
4.0 CHAPTER FOUR: OPERATION PLAN................................................................................iv
5.0 CHAPTER FIVE: FINANCIAL PLAN...................................................................................iv
CHAPTER ONE..............................................................................................................................1
BUSINESS DESCRIPTION...........................................................................................................1
1.0 INTRODUCTION.................................................................................................................1
1.1 BUSINESS NAME................................................................................................................1
1.2 BACKGROUND OF THE OWNER.....................................................................................1
1.3 LOCATION AND ADDRESS OF THE BUSINESS............................................................2
1.3.1 ADDRESS OF THE BUSINESS....................................................................................2
1.3.2 MAP SHOWING LOCATION OF THE BUSINESS....................................................3
1.4.1 PRODUCTS....................................................................................................................4
1.4.2 SERVICES......................................................................................................................4
1.5 FORM OF BUSINESS..........................................................................................................4
1.5.1 SOURCES OF CAPITAL...............................................................................................5
1.5.2 TYPE OF BUSINESS.....................................................................................................5
1.6 GOALS AND OBJECTIVES................................................................................................5
1.6.1 GOALS............................................................................................................................5
1.6.2 OBJECTIVES.................................................................................................................6
1.7 THE INDUSTRY...................................................................................................................7
1.8 JUSTIFICATION OF OPPORTUNITY................................................................................7
1.9 ENTRY AND GROWTH STRATEGY................................................................................8

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 1.9.1 ENTRY STRATEGY......................................................................................................8
1.9.2 GROWTH STRATEGY..................................................................................................8
CHAPTER TWO.............................................................................................................................9
MARKETING PLAN......................................................................................................................9
2.0 INTRODUCTION.................................................................................................................9
2.1 CUSTOMERS........................................................................................................................9
2.1.1 LOCAL CUSTOMERS...................................................................................................9
2.1.2 INDIVIDUAL CUSTOMERS........................................................................................9
2.1.3 INSTITUTIONAL CUSTOMERS..................................................................................9
2.2 COMPETITORS..................................................................................................................10
2.3 MARKET SHARE...............................................................................................................11
2.4 PRICING STRATEGY........................................................................................................12
2.4.1 MARKET RESEARCH................................................................................................12
2.4.2 PRICE BENCHMARKING..........................................................................................13
2.4.3 PRICE MATCHING OR BEATING............................................................................13
2.5 SALES TACTICS................................................................................................................13
2.5.1 DIRECT SELLING.......................................................................................................13
2.5.2 INDIRECT SELLING...................................................................................................13
2.5.3 PERSONAL SELLING.................................................................................................14
2.6 METHODS OF PROMOTION AND ADVERTISING......................................................14
2.6.1 METHODS OF PROMOTION.....................................................................................14
2.6.2 METHODS OF ADVERTISEMENT...........................................................................15
2.7 DISTRIBUTION CHANNEL..............................................................................................15
2.7.1 DELIVERY SERVICES...............................................................................................15
2.7.2 TRACKING AND NOTIFICATIONS.........................................................................15
2.7.3 RETURN PROCESS.....................................................................................................15
2.7.4 IN-HOUSE DELIVERY TEAM...................................................................................16
CHAPTER THREE.......................................................................................................................17
ORGASATION OF MANAGEMENT PLAN..............................................................................17
3.1 INTRODUCTION...............................................................................................................17
3.2 ORGANISATION...............................................................................................................17

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 3.2.1 `ORGANIZATION STRUCTURE...............................................................................18
3.3 QUALIFICATION DUTIES AND RESPONSIBILITY OF PERSONNEL......................19
3.4 RECRUITMENT, TRAINING AND PROMOTION.........................................................26
3.4.2 RECRUITMENT...........................................................................................................26
3.4.2 TRAINING....................................................................................................................27
3.4.5 PROMOTION...............................................................................................................28
3.5 RENUMERATION AND INCENTIVES...........................................................................29
3.5.1 RENUMERATION.......................................................................................................29
3.5.2 INCENTIVES...............................................................................................................29
3.6 LICENCES, PERMITS AND BY-LAWS...........................................................................30
3.6.1 LICENCES....................................................................................................................30
3.6.2 PERMITS......................................................................................................................31
3.6.3 BY-LAWS.....................................................................................................................31
3.7 SUPPORT SERVICES........................................................................................................31
3.7.1 INSURANCE SERVICES............................................................................................32
3.7.2 BANKING SERVICES.................................................................................................32
3.7.3 POSTAL SERVICES....................................................................................................32
3.7.4 ELECTRICITY SEVICES............................................................................................33
3.7.5 DELIVERY AND PICKUP SERVICES......................................................................33
3.7.6 SECURITY MEASURES.............................................................................................33
3.7.7 WATER SERVICES.....................................................................................................33
CHAPTER FOUR.........................................................................................................................34
4.0 PRODUCTION /OPERATION PLAN................................................................................34
4.1 INTRODUCTION...............................................................................................................34
4.2 PRODUCTION FACILITY AND EQUIPMENT...............................................................34
4.3 MONTHLY, MATERIAL AND EQUIPMENT.................................................................35
4.3.1 MATERIALS AND EQUIPMENT..............................................................................35
4.3.2 MONTHLY LABOUR REQUIREMENTY.................................................................37
4.3.3 TOTAL COST OF PRODUCTION..............................................................................38
4.4 PRODUCTION PROCESS..................................................................................................38
4.4.1 SOURCING AND PROCUREMENT..........................................................................39

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 4.4.2 QUALITY CONTROL.................................................................................................39
4.4.3 INVENTORY MANAGEMENT..................................................................................39
4.4.4 CUSTOMER ORDERS................................................................................................39
4.4.5 RENTAL AGREEMENT..............................................................................................39
4.4.6 GADGET PREPARATION..........................................................................................39
4.4.7 DELIVERY AND PICKUP..........................................................................................40
4.4.8 USAGE AND RETURN...............................................................................................40
4.4.9 BILLING AND PAYMENT.........................................................................................40
4.5 REPAIR AND MAINTANANCE.......................................................................................40
4.6 BUSINESS LAYOUT.........................................................................................................40
4.7 PRODUCTION AND SERVICE STRATEGY...................................................................41
4.7.1 PRODUCTION STRATEGY.......................................................................................41
4.7.2 SERVICE STRATEGY................................................................................................42
4.8 REGULATIONS AFFECTING BUSINESS OPERATIONS.............................................43
4.8.1 INTERNAL REGULATION........................................................................................43
4.8.2 GOVERNMENT REGULATIONS..............................................................................44
4.8.3 INSURANCE RIGHTS.................................................................................................44
4.8.4 HEALTH REGULATIONS..........................................................................................44
4.8.5 ENVIRONMENTAL REGULATIONS.......................................................................44
4.8.6 SAFETY REGULATIONS...........................................................................................44
CHAPTER FIVE...........................................................................................................................45
FINANCIAL PLAN......................................................................................................................45
5.0 INTRODUCTION...............................................................................................................45
5.1 PRE-OPERATIONAL COST..............................................................................................45
5.2 INCOME AND EXPENDITURE STATEMENTS.............................................................46
5.3 PROJECTED BALANCE SHEET......................................................................................47
5.4 WORKING CAPITAL........................................................................................................49
5.5 PROJECTED CASHFLOW STATEMENTS..................................................................49
5.5.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2025..........................50
5.5.2 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2026..........................52
5.5.3 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2027..........................54

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 5.6 BREAK EVEN ANALYSIS................................................................................................56
5.7 DESIRED FINANCING......................................................................................................57
5.8 PROPOSED CAPITALIZATION.......................................................................................58
5.9 PROFITABILITY RATIO...................................................................................................58
APPENDIX 1.................................................................................................................................59
MAP SHOWING BUSINESS LOCATION..............................................................................59
APPENDIX 2.................................................................................................................................61
BUSINESS LAYOUT...............................................................................................................61

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 CHAPTER ONE

BUSINESS DESCRIPTION
1.0 INTRODUCTION
Elixsam Tech Gadget Rental Enterprise is an aspiration solution specializing in providing

convenient and affordable tech gadget rental services. My business aims to bridge the gap

between the rapid advancement in technology and the need of individuals and business seeking

to explore the latest gadgets without the gadget of ownership. At Elixsam Tech Gadget Rental

Enterprise, we understand the evolving nature of technology and strive to offer flexible rental

solutions that cater to a diverse range of customers within Narok town and extend nationwide.

The business is designed to be seamless and user-friendly. Customers can conveniently browse

any online catalog, select the desired gadgets, choose the rental duration and complete the

reservation process within a few clicks. The enterprise will provide for in-store pickups or fast

and reliable to their desired location.

1.1 BUSINESS NAME

The business name will be Elixsam Tech Gadget Rental Enterprise.

1.2 BACKGROUND OF THE OWNER

Having completed KCPE in 2004 and joined Chesamisi High School and completed in 2008 and

attaining grade B- (minus) in KCSE and later joined Stylus computer services and stationaries at

Kilgoris town as a casual worker in the early 2015. During this period, I had opportunity to

interact with computers, printing machines, digital cameras and all the accessories associated

with computers. My interest developed on computer use and all that is associated with the

current technology and merging trends on internet use hence the birth of Elixsam Tech Gadget

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Rental Enterprise dream with the urge to provide efficiency and accessibility to technology to all

people regardless of their financial status.

1.3 LOCATION AND ADDRESS OF THE BUSINESS

1.3.1 ADDRESS OF THE BUSINESS

The proposed business will operate under the following address

ELIXSAM TECH GADGET RENTAL ENTERPRISE

PO BOX 321

NAROK

Website: www.elixsam.ac.ke

Email: elixsam87@gmail.com

Facebook: eliakimandesa@yahoo.com

Twitter: @eliakimandesa

Tiktok: Elixsam

Instagram: Elixsam

YouTube: Elixsam

Phone number: 0708199924

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1.3.2 MAP SHOWING LOCATION OF THE BUSINESS
The business will be located along Narok-Bomet Highway in Oltalet mall, 1st floor room no 7,

opposite National Bank, Grand Rivers Bar and restaurant, Tours Hotel and adjacent to topline

company, cottage Hospital Road.

BOBONGO
SECONDARY
SCHOOL
BOBONG
BOBONGO ROAD
SECONDARY
TOPTINE
SCHOOL
COMPANY OLTALET MALL
BOBONG ROAD
ELIXSAM TECH
GADGET RENTAL
ENTERPRISE

NAROK-BOMET HIGHWAY

NAROK-BOMET HIGHWAY

NATIONAL
SUMMER BANK
HOTEL
SASA
MALL
GRAND
RIVERS
WAGETHUMO RESTARANT
COMPUTER
SERVICE MAASAI
MARA
MWANGI UNIVERSITY
X STUDIO
MUSIC
PRODUCER

3
1.4 PRODUCTS AND SERVICES

1.4.1 PRODUCTS
The business will also offer products like digital cameras, drones, tripod and bipod stands,

laptops and tablets, home entertainment system systems, fitness trackers and smart watches,

Audio Equipment, Electric scooters and bicycles, gaming consoles, Vitality (VR) headsets,

smartphones and projectors.

1.4.2 SERVICES
Various services will be offered to Narok people such as rent the Runway, Grover which is the

short term rental periods for items like VR headsets, Lumois which is camera services and

accessories like lens, Joy mode which is the subscription services for rental gadgets like drones

entertainment, borrow lenses services which is the photography and video graphic equipment

rentals, Lumzag it offers smart backpacks and bags for rent, Rent-A- center flexible renting

options for gaming console, tablets, smartphones.

1.5 FORM OF BUSINESS

The business will run under the sole proprietorship so that the customers will be provided with

outstanding services and stay updated with industry trends to ensure the success of the business

enterprise. The owner will contribute to the business from family members, inheritance, personal

savings and loans.

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1.5.1 SOURCES OF CAPITAL

DETAILS AMOUNT

Loans 1,000,000

Personal savings 400,000

Inheritance 400,000

Family, friends 100,000

and relatives

TOTAL 1,900,000

1.5.2 TYPE OF BUSINESS

Elixsam Tech Gadget Rental Enterprise will start to operate a startup business offer the projected

capital is initiated and deal with both retail and wholesale in products.

1.6 GOALS AND OBJECTIVES

1.6.1 GOALS
The goal of Elixsam Tech Gadget Rental Enterprise is to achieve the following;

i. Convenience and flexibility: Tech gadgets rental will offer convenient and flexible rental

options to customers by providing easy booking processes multiple pickups and delivery

locations.

ii. Cost-effectiveness: Elixsam Tech Gadget Enterprise will offer cost effective solutions to

customers who may not want to in purchasing expensive tech gadgets outright.

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 iii. Adaptability to market trends: Elixsam Tech Gadget Enterprise will operate on up-to-date

technological trends and introducing other branches nationwide.

iv. Elixsam Tech Gadget Enterprise aims like any other business to achieve sustainability

and growth over time. This involves managing operational costs, optimizing rental

utilization rates and exploring opportunities for expansion such as partnering event

organizers, corporate clients or collaborating with other business in complimentary

industries.

1.6.2 OBJECTIVES
Elixsam Tech Gadget Enterprise will focus on the following objectives;

i. Profitability: The Elixsam Tech Gadget Enterprise will aim to establish a suitable revenue

model insuring that the income from renting our gadgets exceeds the expenses associated

with acquiring, maintaining and marketing them.

ii. Customer satisfaction: Elixsam Tech Gadget Rental Enterprise will aim for higher

customer satisfaction levels through excellent services reliable gadgets and efficient

processes that promote long term growth or the enterprise.

iii. Brand awareness and marketing: Elixsam Tech Gadget Rental Enterprise aims at building

brand awareness that will attract customers and retain existing ones. The business will

focus much on marketing initiatives such as online, advertising, social media campaigns,

content creation and participating in relevant event or trade shows.

iv. Continuous improvements: Elixsam Tech Gadget Rental Enterprise will strike for

continuous improvements in its operations, customer service and overall efficiency.

Regularly assessing and optimizing processes, seeking customer feedback and investing

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 in employee training and staying updated with industry advancements are key objectives

in maintaining a competitive edge.

1.7 THE INDUSTRY

This business belongs to telecommunication industry which has seen significant growth in recent

years, tuple by the increasing demand for the latest tech gadgets and the desire for more flexible

ownership options.

1.8 JUSTIFICATION OF OPPORTUNITY

Elixsam Tech Gadget Rental Enterprise will fill the niche in the market by providing cost-

effective solutions which will provide alternative to purchase to the tech gadgets and solve the

solutions of many high-end electronic devices that come with price tags making them

unaffordable for some individuals or businesses.

Additionally, business and event solutions will be catered with Narok town due to availability of

Maasai Mara University which has many students with smaller financial muscles to purchase

new gadgets and thus going for rental ones which will be affordable. On the other hand, Maasai

Mara reserve that is frequently visited by tourist will have a large number of locals since all the

tech gadgets will be affordable to be used.

Moreover Try-Before-Buy approach will be initiated by Elixsam Tech Gadget Rental Enterprise

to enable customers to try out different evaluate gadgets features, performance and sustainability

for their specific needs.

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1.9 ENTRY AND GROWTH STRATEGY

1.9.1 ENTRY STRATEGY

The business will operate on market research of the current trend that target market and their

specific needs to understand the demand for tech gadget rental in the area. The business will

further be advertised through a developed user-friendly website with an online booking system.

1.9.2 GROWTH STRATEGY

The business will priorities exceptional customer service to build a loyal customer base to

enhance growth and optimize digital presence through active social media, informative blog

consent and regular email marketing campaigns. Additionally, with good progress the business

will expand cautiously and ensure that each new location or service addition is well researched

and financially reliable.

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 CHAPTER TWO

MARKETING PLAN
2.0 INTRODUCTION
This chapter comprise of customers, competitors, market share, license strategy, market strategy,

side tactics and distribution channel.

2.1 CUSTOMERS

2.1.1 LOCAL CUSTOMERS

Elixsam Tech gadget rental enterprise will identify the ideal customer base within Narok town

considering demographics such as age, occupation, interest and technology adaptation behavior.

This will help the business to tailor marketing messages effectively.

2.1.2 INDIVIDUAL CUSTOMERS

Elixsam Tech gadget rental enterprise will engage individual customers through customers

segmentation approach which will base factors such as age, interest, tech services and rental

preferences that will create targeted marketing messages that resonate with each segment.

Social media advertising like Facebook, Instagram and Twitter will be adapted by Elixsam Tech

gadget rental enterprise to advertise and display gadget rental services to the individual customer

segment.

2.1.3 INSTITUTIONAL CUSTOMERS

Within Narok town there are so many institutions namely Maasai Mara University, Highway

Academy, Kim’s institute, Fanaka schools, XY studio, event organizers and government

agencies. On this note industry events and conferences will be on offers, special promotion and

discounts for rentals initiated at these events.

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Characteristics of customers

Regular customers:

Repeat purchases, this are customers with a demonstrated repeat purchase at the enterprise

Have high customer lifetime value hence contribute more revenue over an extended period due

to their continued patronage.

Have high loyalty and trust due to the confidence in the products and services that will be offered

thus maintaining long-term relationship.

They have personal connection with the business enterprise and staffs establishing good rapport

and experience

Part-time customers:

Have infrequent purchases

Possess Limited time commitment to the business enterprise

Have price sensitivity immune and are more inclined to seek the best deal or lowest price when making
a purchase.

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2.2 COMPETITORS
The business will meet various competitors and they include:

COMPETITORS STRENGTH WEAKNESS OPPORTUNITY THREATS

Edja Cheap Limited brand Market growth Political pressure

Entertainment
Large quality Management is
Hub
good

Hii maker music Offer credits Unhygienic High qualified Intense

producer and personnel competition

Cheap products
entertainment

base

Mwangi’s 24-hour services Very expensive Has many Religious factors

computer services branches

and products

Elixsam Tech Quality services No credits Improved quality Changing

gadget rental Moderate pricing services technology

enterprise Variety of Qualified Religious issues

products personnel

Digital presence Improved security

User friendly

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2.3 MARKET SHARE
Elixsam Tech gadget rental enterprise will be located within Narok Central at the CBD which is

also the county headquarters of Narok county with approximate population of 60,000 and the

business target 45,000 of the total population.

PIE CHART SHOWING MARKET SHARE OF ELIXSAM TECH GADGET RENTAL

ENTERPRISE

10%

22%

50%

18%Tech Gadget Rental Enterprise

Elixsam
Edsa Entertainment Hub
Mwangi's Computer Services
Hitmaker Music Product and Entertainment

2.4 PRICING STRATEGY

The pricing strategy that will be adopted by Elixsam Tech gadget rental enterprise will be

competitive pricing strategy which will involve setting the rental gadget prices based on what the

competitors are charging hence the following approaches will be emulated.

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2.4.1 MARKET RESEARCH
By conducting thorough market research to identify key competitors in the gadget industry and

rental services by determining what gadget they offer their pricing structures and any unique

value repository.

2.4.2 PRICE BENCHMARKING

The Elixsam Tech gadget rental enterprise will analyses competitors pricing to understand the

range of rates for similar gadgets paying attention to pricing for different rental duration basing

rates on daily, weekly and monthly charges.

2.4.3 PRICE MATCHING OR BEATING

The Elixsam Tech gadget rental enterprise will consider pricing gadgets rentals in line with

competitors around. The enterprise will either match competitors’ price or offer a slight discount

to attract price sensitive customers.

2.5 SALES TACTICS

Elixsam Tech gadget rental enterprise will engage clients to build long lasting relationships and

drive business growth in the competitive rental tech industry by adopting the following tactics.

2.5.1 DIRECT SELLING

The business will have sales team that will engage customers directly at the business premises in

order to rent or sale refurbished gadgets to customers directly. Customers will have the

opportunity to view the prices and also do consultation before renting the gadgets.

2.5.2 INDIRECT SELLING

Indirect sale will involve a third party to sale off the product and services. The business will

establish affiliate partnership with tech bloggers, influencers or websites related to the business

niche thus promote the rental services and earn commission for each successful referral. On the

13
other hand, the business will partner with tech repair shops to refer customers who damaged

devices need repair and also rent gadgets while waiting for theirs to be fixed.

2.5.3 PERSONAL SELLING

This will be effective strategy for Elixsam Tech gadget rental enterprise by targeting individuals,

businesses, event organizers or educational institutions in order to identify the types of customers

who are likely to rent the business gadgets face to face.

However, there will be a sales team to establish rapport with potential clients, understand their

needs and challenges.

2.6 METHODS OF PROMOTION AND ADVERTISING

2.6.1 METHODS OF PROMOTION

Elixsam Tech gadget rental enterprise can promote its service effectively using various methods

to target audience and marketing objectives. Here are some methods of promotion for Elixsam;

i. Sponsorships and community involvement,

Elixsam Tech gadget rental enterprise will play the part of sponsoring local events and

community initiatives within Narok town and its environs to increase brand recognition and

demonstrate commitment to the community.

ii. Social Media Marketing,

This will involve maintaining an active presence on social media platforms in Facebook, twitter,

YouTube, Tiktok, threads for sharing engaging posts industry news and customer testimonials.

iii. Email Marketing,

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For this case the business enterprise will build an email list of potential clients and send regular

news letters with updates, special offers and informative content related to gadget rentals.

2.6.2 METHODS OF ADVERTISEMENT

The business will advertise through public media such as citizen tv, KBC channel 1, kiss 100,

bloggers channel which will cost 10,000 shillings. Social media platforms like Facebook,

Instagram and LinkedIn will also be used to make sure all audience is reach so that they are

conversant with the new services and product to slow their tech problems.

2.7 DISTRIBUTION CHANNEL

Elixsam Tech gadget rental enterprise will use an effective logistics and transportation strategy

to move products to various customers from different locality. Here’s how the products will be

transported.

2.7.1 DELIVERY SERVICES

Elixsam Tech gadget rental enterprise will enter into renewable short-term contracts with

delivery and logistic companies for the business enterprise well Fargo carrier is accessible within

Narok town and therefore will be rendered to transporting goods from the rental company’s

storage facility to customers location to ensure timely and secure deliveries. Additionally,

shipping fee of ksh 300 will be inclusive on the product to customers who will require home

deliveries due to high fuel rates but adjustable in relation to EPRA report on fuels.

2.7.2 TRACKING AND NOTIFICATIONS

The enterprise will implement a tracking system that allows customers to monitor the status and

location of their deliveries in real time and sending automated notifications about delivery

schedules.

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2.7.3 RETURN PROCESS
Elixsam Tech gadget rental enterprise will establish a clear and user-friendly process for labels,

drop-off locations or pick-up services.

2.7.4 IN-HOUSE DELIVERY TEAM

Depending on the sale and location of operations, Elixsam Tech gadget rental enterprise will

consider maintaining an in-house delivery team. This will allow for more control over the

delivery process and may be cost- effective.

Sketch for Distribution Channel

Retailor Customers

Wholesaler Retailor Customers

Retailor Wholesaler

Wholesaler Retailor

16
 CHAPTER THREE

ORGANISATION OF MANAGEMENT PLAN

3.1 INTRODUCTION
This chapter comprises of the management plan for Elixsam tech gadget rental enterprise, that

will be adopted to serve as a valuable read map for the success of the enterprise.

3.2 ORGANISATION
Elixsam tech gadget rental enterprise will need 14 employees that will be recruited based on their

area of specialization on matters relating to information technology the employees who meet the

following characteristics will be selected through interview and admitted to the business

enterprise.

I. Customer-centric; should prioritize customer satisfaction and effective to

customer needs and inquiries

II. Tech survey; give the nature of the business employees will be required to know

with various gadget and technology.

III. Adaptability; take on market trends change rapidly so employees are required to

adapt to learning new skills

IV. Communication skills; effective communication with customers and within the

team will be crucial for a seamless rental process.

V. Time management; efficiently managing task and meeting deadline is important

in a fast-paced rental environment.

VI. Sales and marketing skills; employees will be required to have sales and

marketing skills to promote the business and secure rental contracts.

17
VII. Ethical and trust worth; trust will be critical when handling customer data and

valuable gadgets.

VIII. Innovative printing; employees will be required to be innovative in bringing

business ideas.

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 3.2.1 `ORGANIZATION STRUCTURE

OPERATION MANAGER

SUBORDINATE STAFFS STAFFS

LOGISTIC
CLEANERS FINANCE AND
SECURUTY OFFICER OPERATIONS
GUARDS
TEA GIRL

IT
SPECIALIST MARKETING AND
PROMOTION
OFFICE MANAGER

INVENTORY MANAGEMENT
AND MAINTAINANCE
CUSTOMER
CARE

19
3.3 QUALIFICATION DUTIES AND RESPONSIBILITY OF PERSONNEL
PERSONNE QUALIFICATIONS DUTIES RESPONSIBILITIES SALARY

Operation Should possess a Inventory Monitor gadget 40,000

Manager degree in HRM management inventory levels,

Should have Process procuring, storage and

knowledge of improvement maintenance.

computer skills Vendor

Minimize losses and
Should be a Kenyan relations
ensure accurate stock
Citizen Cost
levels.
management
Handling disruptions
Reporting and

Analysis Supervise order

Crisis processing systems to

management ensure timely gadget

Order rentals.

processing and Recruit, train and

fulfillment supervise operations
Compliance staff.
Team leadership
Evaluate new suppliers.

Finance Should be computer Financial Provide finance reports 35,000

officer literate reporting income statements and

Budget and
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 Should have a forecasting cashflow statement.

degree in Finance
Expense Develop and manage
and marketing
management the enterprise budget

Account Monitor and control

payable and operational expenses

receivable
Ensure timely

Cash payments of bills.

management
Compile with all tax

Tax compliance regulations

Payroll

administration

Investment

management

Logistic and Should be a Kenyan Inventory Compile with relevant 30,000

operation Citizen management safety regulations

manager Should have a

Warehouse Supervise inventory
degree in logistics
operations control

Quality control Implement efficient

storage and retrieve

Vendor
systems
relations

21
 Inventory

procurement

Safety and

compliance

IT specialist Should have a Network Ensure IT compliance 30,000

Diploma in management with relevant

Information and regulations

System
Communication
administration Plan and execute
Technology
technology upgrades
Hardware and
Should be able to
software Design, configure and
develop a website
maintenance maintain company’s
Should be a Kenyan
network
Citizen Data backup

and recovery Ensure network

security
Cyber security

Administer servers,
User support
maintain their health
Hardware and
and security
software
Implement data
procurement
recovery
Cloud service
Maintain security
management

22
 Technology against cyber threats

upgrade

Marketing Should be a Kenyan Branding and Plan and execute line 25,000

and Citizen identity advertising campaigns

promotion Should have a

Online presence Develop and execute
officer Diploma in Supply
social media marketing
Content creation
Chains and
campaigns
Management Social media
Manage business
management
identity brand
Digital
Customer engagement
advertising
on various platforms
Email

marketing

Inventory Should have a Inventory Keep track of all 20,000

management Diploma in tracking gadgets

and Electrical and

Maintenance Ensure gadgets are in
maintenance Electronics
scheduling good working
Should be of legal
condition
Continuous
age
improvement

Customer Should speak both Customer Assisting customers in 15,000

care Kiswahili and inquiries making reservations,

Customer

23
 English fluently feedback processing orders

Should have Complaint Addressing customer

obtained a grade of handling inquiries and concerns

B Plus in Kenya Customer via email, phone

Certificate of education Professionally handling

Secondary Reservation and customer complaints

Education rental

Office Should be 18 years Facilitate Maintaining related 10,000

messenger and above management document together

Should be a Kenyan Document Co-ordinate enterprise

citizen management events

Scheduling and Storage and retrieval of

calendar documents

management Oversee day to day

Travel operations

arrangement

Record keeping

Security Should have a good Security patrols Manage large crowds 15,000

personnel conduct Surveillance in order

Should be 18 years Visitor Monitor and control

and above screening access premises

Should possess Emerging Detect suspicious

24
 Kenya Certificate of response activities

Primary Education Security Respond promptly to

procedures security

Alarm systems Respond to alarms

Crowd control

Cleaners Should be 18 years Cleaning and Toughly cleaning the 8,000

and above sanitizing facility area

Should possess Trash removal Emptying trash bins

Kenya Certificate of Sweeping and Vacuuming carpets

Primary Education mopping Dusting desks and

Dusting and shelves

wiping Restocking restrooms

Restroom with soaps and towels

maintenance

Window

cleaning

Tea girl Should be 18 years Beverage Prepare and serving 8,000

and above preparations tea, coffee to

Should possess Snack and employees

Kenya Certificate of restaurant Keeping clean

Primary Education services Co-ordinate beverage

Team and refreshment service

communication on time

25
 TOTAL 236,000

3.4 RECRUITMENT, TRAINING AND PROMOTION

3.4.2 RECRUITMENT
Elixsam Tech Gadget Rental Enterprise will manage the recruitment process by hiring personnel

to build a qualified and effective workforce through the following process:

A. Job Posting

Elixsam Tech Gadget Rental Enterprise will create and post job vacancies on various platforms,

including the company website, job boards and social media.

B. Candidate Sourcing

Actively sourcing candidates through online searches, professional networks and referrals.

C. Interviewing

By conducting interviews both in person and virtually to access candidate qualifications, skills

and cultural fit.

D. Skill Assessment

This will be conducted in administering skills test or assessments to evaluate technical and job

specific skills.

E. Resume- Screening

This will be enhanced by reviewing resumes and applications to shortlisted qualified candidates.

F. Diversity and Inclusions

26
This will be achieved by implementing strategies to promote diversity and inclusion in the

recruitment process irrespective to where a person came from.

3.4.2 TRAINING
Elixsam Tech Gadget Rental Enterprise will have a bigger role that revolve around developing

and delivering training programs to employees to enhance their skills, knowledge and job

performance through the following methods.

a) Workshops and Seminars

The business enterprise will be conducting workshops, seminars annually and hands on training

sessions for employees to upgrade their skills in tech industry.

b) E-learning

This will be initiated through developing online courses or e-learning modules to facilitate

remote or self-paced learning.

c) Leadership Development

Elixsam Tech Gadget Rental Enterprise will be developing leadership and management training

programs for employee in supervisory or management roles.

d) Technical Training

Elixsam Tech Gadget Rental Enterprise will be doing technical training on gadgets, equipment’s

and software used within the enterprise

e) Soft Kills Training

27
The enterprise will be conducting training areas such as customer service, communication,

teamwork and problem-solving techniques to employees after every six months.

3.4.5 PROMOTION
Elixsam Tech Gadget Rental Enterprise will focus on promoting employees in critical aspect of

talent management and organizational development after every two years based on the following

aspects;

I. Performance Evaluation

It will involve assessing employee performance through regular reviews and feedback

sessions.

II. Skills and Competency Assessment

By identifying employees’ skills, competencies and potential for growth within the enterprise

is one of the key issues to be adopted by Elixsam Tech Gadget Enterprise.

III. Succession Planning

The enterprise will be identifying and grooming potential candidates for key positions to

ensure a smooth transition when promotion occurs.

IV. Employee Recognition

Recognizing and celebrating employee achievements and promotions to boost morale and

motivation will be given a high priority every time a promotion will be conducted.

V. Salary and Benefits Negotiation

28
 By collaborating with the HR and Finance officer management, salaries, adjustments,

benefits and other incentives will be incorporated to promoted employees.

3.5 RENUMERATION AND INCENTIVES

3.5.1 RENUMERATION
Elixsam Tech Gadget Enterprise will be paying its employees on monthly basis through bank

accounts registered by the employees.

The salaries will vary from employees based on the following:

1) Job Evaluation

Job roles within the enterprise will vary and so the salary levels due to factors sch as

responsibilities, skills and market demand.

2) Salary Reviews

By conducting regular salaries reviews and adjustments to account for inflation, cost of living

and performance

3) Salary structure

Developing and maintaining a competitive and equitable salary structure that aligns with industry

standards and the Elixsam Tech Gadget Enterprise

3.5.2 INCENTIVES
Incentives play a crucial role in motivating both customers and employees and so Elixsam Tech

Gadget Enterprise will adopt the following incentives for different stake holders.

EMPLOYEE INCENTIVES

a. Performance bonuses
29
Elixsam Tech Gadget Enterprise will be rewarding employees for meeting or exceeding

performance targets such as achieving high customer satisfaction ratings or increasing rental

bookings.

b. Employee of the month

Recognize outstanding employees with awards, certificate, or additional paid time off.

c. Health and wellness programs

Elixsam Tech Gadget Enterprise will provide access to health and wellness benefits such as gym

membership or wellness incentives to promote employee well-being.

3.6 LICENCES, PERMITS AND BY-LAWS

3.6.1 LICENCES
Elixsam Tech Gadget Enterprise will require several licenses to operate legally depending on its

locality within Narok town. The following licenses will be required to operate.

i. Business license

This business will be required to ensure compliance with local regulation, zoning laws and

taxation requirements. The business license will cost worth Ksh. 10000 at the county revenue

of Narok.

ii. Rental license

The rental license will be accessed from the county government of Narok and the cost Ksh

10000 that would be paid through the county revenue offices

30
3.6.2 PERMITS
The following permits will be required by Elixsam Tech Gadget Enterprise to ensure full

compliance with all applicable laws and regulations.

a) Fire safety permits

Since Elixsam Tech Gadget Enterprise will store gadgets and will be a public place to access

fire safety permits will be applied worth Ksh 3500 to ensure compliances with fire codes.

b) Sales tax permit

The business sale tax permit since it involved in rental of permit which will be acquired the

regional office in Nakuru worth Ksh 7000.

c) Environmental permit

Elixsam Tech Gadget Enterprise will involve variety of gadgets, sometimes they will become

hazardous and therefore the need to have environmental permit worth Ksh 500 through the

NEMA office Narok county headquarters.

3.6.3 BY-LAWS
The following bylaws will be adapted by Elixsam Tech Gadget Enterprise.

i. Ethics and code of conduct

ii. The business not to operate past 9pm

iii. The gadgets not to be rented to persons below 18 years of age

iv. Display the business permit and license on the wall

v. Display the portrait of the Kenyan president

31
3.7 SUPPORT SERVICES
Elixsam tech gadget rental enterprise will use the following support services

3.7.1 INSURANCE SERVICES

These services will help mitigate risks and protect the business against unforeseen events. The

following insurance types and services will cover the business enterprise.

1) BRITAM INSURANCE

P.O.BOX 800-20500

NAROK.

2) PIONEER INSURANCE COMPANY

P.O BOX 732-20500

NAROK

3.7.2 BANKING SERVICES

i. K.C.B BANK

P.O BOX 109-20500

NAROK

ii. COOPERATIVE BANK

P.O BOX 81-20500

NAROK

3.7.3 POSTAL SERVICES

ELIXSAM TECH GADGET RENTAL ENTERPRISE

32
P.O BOX 10-20500

NAROK

3.7.4 ELECTRICITY SEVICES

K.P.L.C

P.O BOX 73-20500

NAROK

3.7.5 DELIVERY AND PICKUP SERVICES

WELLS FARGO

P.O BOX 11-20500

NAROK

3.7.6 SECURITY MEASURES

G4S COMPANY

P.O. BOX 40-20500

NAROK

3.7.7 WATER SERVICES

AQUA COMPANY LIMITED

P.O BOX 02-20500

NAROK

CHAPTER FOUR

33
4.0 PRODUCTION /OPERATION PLAN

4.1 INTRODUCTION
This chapter comprises of production facilities, equipment materials, monthly labour

requirement, production process, repair and maintenance, business layout, production layout

strategy and regulations affecting business operations.

4.2 PRODUCTION FACILITY AND EQUIPMENT

Elixsam Tech gadget rental enterprise will be located in Narok town along Mai-Mahiu-Bomet

highway on the right side in Oltalet mall adjacent to top time printers and directly opposite to

K.C.B Bank, National Bank and Grand Rivers Bar and restaurant along the highway.

The business enterprise will have two different rooms located at Oltalet mall first floor room no

8. Which will be partitioned into two. The front room of the furniture and equipment’s rented

inclusive of the offices will be laid. The second portioned room will consist of a storage area to

store the business stock that is not yet entered into inventory.

The business will deal with diverse range of tech gadgets to rent out which include laptops,

smartphones, drowns, gaming controls, VR headsets, cameras, tripod stands, surveillance

cameras, alarms and secure locks. This will go in hand with services like small training on the

use of gadgets at a small affordable fee. Installation will also be charged for hi-tech gadget plus

booking fee for rental equipment’s.

The gadgets will be processed from three different supplies in Nairobi namely, Hi-tech suppliers,

Bouncy castles technologies and zoom camera Nairobi.

4.3 MONTHLY, MATERIAL AND EQUIPMENT

4.3.1 MATERIALS AND EQUIPMENT

ITEM EQUIPMENT SUPPLIER QUANTITY AMOUNT TOTAL

34
1 Computers Hi-Tech 14 35,000 490,000

and laptops suppliers

P.O BOX 27

NAIROBI.

2 Photocopiers Bouncy 3 30,000 90,000

castles

Technologies

P.O BOX 147

NAIROBI.

3 Cameras Bouncy 10 25,000 250,000

castles

Technologies

P.O BOX 147

NAIROBI.

4 Drones Zoom world 10 6,000 60,000

cameras

P.O BOX 89

NAIROBI.

5 Tripod stands Zoom world 10 1,000 10,000

35
 cameras

P.O BOX 89

NAIROBI.

6 Smartphones Zoom world 20 20,000 400,000

and tablets cameras

P.O BOX 89

NAIROBI.

7 Headphones Zoom world 20 1,000 20,000

and cameras

accessories
P.O BOX 89

NAIROBI.

8 Furnitures Ken chair 8 5,000 40,000

company

P.O BOX 72

NAIROBI.

TOTAL 1,360,000

4.3.2 MONTHLY LABOUR REQUIREMENTY

Personnel Salary Total

36
Operation Manager 40,000 40,000

Finance officer 35,000 35,000

Logistic and operational 30,000 30,000

manager

IT specialist 30,000 30,000

Marketing and promotion 25,000 25,000

officer

Inventory management 20,000 20,000

officer

Customer care 15,000 15,000

Office messenger 10,000 10,000

Security Personnel 15,000 15,000

Cleaners 8,000 8,000

Tea girl 8,000 8,000

Total 236,000

37
4.3.3 TOTAL COST OF PRODUCTION
PARTICULAR AMOUNT

Material and equipment 1,360,000

Land 400

Monthly labor requirement 236,000

Total 1,960,000

38
4.4 PRODUCTION PROCESS
Elixsam Tech Gadget Rental Enterprise production process will involve the following

procedures to achieve its end results.

4.4.1 SOURCING AND PROCUREMENT

The enterprise will source a shop at Oltalet mall first floor shop number 8. From the onset the

enterprise will acquire variety of tech gadgets such as smartphones, laptops, tablets, drones and

other electronic devices from Hi-tech suppliers, bouncy castles and zoom cameras suppliers.

4.4.2 QUALITY CONTROL

Upon receiving the gadgets, they undergo a vigorous quality control process to ensure they are in

good working condition and free from defects before exposed to customers.

4.4.3 INVENTORY MANAGEMENT

Gadgets will be cataloged and stored in an organized inventory system. Each item will be tagged

and tracked and monitor its availability and condition.

4.4.4 CUSTOMER ORDERS

Elixsam Tech Gadget Rental Enterprise will create a website and application sites through which

customers will use to place their orders and selecting the gadgets they want to rent and their

duration time.

4.4.5 RENTAL AGREEMENT

Customers will have to agree to the terms and conditions of the rental, including rental fees,

security deposits and the responsibility of any damages.

4.4.6 GADGET PREPARATION

Once the order is confirmed, the selected gadget will be retrieved from the inventory. They will

be retrieved from the inventory. They will be cleaned, sanitized and fully charged before

packaging and delivery.

39
4.4.7 DELIVERY AND PICKUP
The gadgets will be delivered to the customers specified location or customer to pick them up

from physical rental location which is the Oltalet mall. Both options will be offered to customers

conveniently.

4.4.8 USAGE AND RETURN

Customers will use the rental gadgets for the agreed upon rental period. At the end of the rental,

they will have to return the gadgets, either by shipping them back or dropping them off at

designated location.

4.4.9 BILLING AND PAYMENT

Customers are billed for their rental duration, and any recovery deposits will be refunded upon

the successful return of the gadget.

4.5 REPAIR AND MAINTANANCE

Returned gadgets will be inspected for any damages or malfunctions. If necessary, repairs or

replacements of parts will be made to maintain the quality of the gadget at cost of ksh 2,000.

4.6 BUSINESS LAYOUT

SECURITY GUARD
OPERATION
MANAGER
FINANCE
MANAGER

ENTRANCE

ELIXSAM TECH GADGET

CUSTOMER CARE RENTAL ENTERPRISE

SECTRETARY’S
CUSTOMER’S OFFICE
WAITING BAY 40

INVENTORY
4.7 PRODUCTION AND SERVICE STRATEGY

4.7.1 PRODUCTION STRATEGY

Elixsam Tech Gadget Rental Enterprise will adopt and implement a production strategy to ensure

smooth running of the business and deliver exceptional customer service. They will include:

1. Diverse Gadget Selection.

By continuously expanding and updating the range of available gadgets to cater to the need of

different customer needs and preferences. The business will stay up-to-date with the latest tech

trends and innovation.

2. Quality Assurance

The business enterprise will maintain strict quality control standards to ensure that all rented

gadgets are in excellent condition and fully functional-Regular maintenance schedules and

through inspection to the gadgets will be regularly checked.

3. Inventory management

Efficient and effective inventory management systems will be put in place to track gadgets

availability, minimize overstocking, understocking and reduce the risk of obsolete gadgets.

4. Rental Duration Options

The business will offer flexible rental durations options, including daily, weekly and monthly

rentals to accommodate various customer needs.

41
4.7.2 SERVICE STRATEGY
1. User-friendly platform

The business enterprise will maintain user friendly website and mobile app for easy gadget

selection, ordering and account management with seamless user experience.

2. Delivery and Pickup options

The business enterprise will offer convenient delivery and pickups options including same-

day or next day delivery and establish partnership with reliable courier services for

nationwide coverage.

3. Transparent pricing

The business will clearly communicate pricing structures including rental fees, security

deposits and any additional charges upfront. No hidden fee will be included to build

customers trust.

4. Damage protection

The business will offer optional damage protection plan for customers to reduce their liability

in case of accidental damage or theft during rental period.

5. Market and promotion

Elixsam tech gadget rental enterprise will use digital marketing strategies, social media and

partnership with tech influencers or bloggers to promote rental series and reach a wider

influence.

42
 6. Data security

The business will priorities and customer privacy especially when handling sensitive customer

information for payment and agreements.

7. Feedback and improvement

The business will encourage customers feedback and reviews to gather insights for continuers

Improvement. Act on feedback and enhance services, gadgets and overall customer satisfactions

4.8 REGULATIONS AFFECTING BUSINESS OPERATIONS

4.8.1 INTERNAL REGULATION

i. Provide excellent customer service at all time

ii. Respond to customer enquiries and concerns promptly

iii. Document gadget condition’s and functionality before and after each rental

iv. Monitor and update inventory level regularly to prevent shortages

v. Keep records

vi. Working time is 8 to 7 hours

vii. Ensure that all rental agreement is clear comprehensive and compliant with applicable

laws

viii. Corruption free zone

ix. Clearly communicate terms, rental fees and security deposit requirement to customer

x. No smoking

43
4.8.2 GOVERNMENT REGULATIONS
The business will only operate after acquiring all business permits, Kenya films permits and

compile with tax laws and remitting sales, tax on rentals.

4.8.3 INSURANCE RIGHTS

The business will carry out general liability insurance from Britam insurance company which

covers bodily injuries, property damages and personal injury claim.

4.8.4 HEALTH REGULATIONS

The business will ensure proper sanitization and hygiene for gadget to be cleared and sanitized

before and after each rental.

4.8.5 ENVIRONMENTAL REGULATIONS

The business will ensure proper E-waste disposal of electronic waste in accordance with national

regulations recycle programs and responsible disposal methods, compliance with e-waste

recycling laws will be adopted.

4.8.6 SAFETY REGULATIONS

Elixsam tech gadget rental enterprise will implement work place measures to protect employees

from accident and injuries. Fire safety which includes, installation of fire extinguishers will be in

place and employees trained on safety procedures. First aid and medical suppliers will be put in

place and employees trained for basic first aid procedures.

44
 CHAPTER FIVE

FINANCIAL PLAN
5.0 INTRODUCTION
This chapter comprises of pre-operational cost income and expenditure account, projected

balance sheet, working capital, projected cash flow statement, desired financing proposed

capitalization, bank even analysis and profitability ratio

5.1 PRE-OPERATIONAL COST

S/N PARTICULARS AMOUNT

1 Electricity bill 2,000

2 Rent 20,000

3 Water bill 2,000

4 Insurance 10,000

5 License 20,000

6 Advertisement 10,000

7 Salary and wages 236,000

TOTAL 318,000

45
5.2 INCOME AND EXPENDITURE STATEMENTS
INCOME YEAR 2025 YEAR 2026 YEAR 2027

Cash sales 360,0000 400,000 420,000

Parking fee 120,0000 140,000 150,000

Gadgets rentals 240,000 250,000 270,000

Security deposits 100,000 120,000 150,000

Late fees 40,000 50,000 70,000

Subscription fees 60,000 60,000 80,000

Refurbishes fees 120,000 140,000 160,000

Tech support services 120,000 150,000 160,000

Total amount 1,160,000 1,310,000 1,460,000

EXPENSES

Rent 240,000 240,000 240,000

Electricity bill 170,000 200,000 260,000

Water 44,000 44,000 24,000

Insurance 20,000 20,000 30,000

License 20,000 20,000 40,000

Advertisement 20,000 50,000 80,000

Taxes 150,000 200,000 250,000

Salary and wages 236,000 236,000 236,000

46
Total amount 900,000 1,010,000 830,000

Gross profit 240,000 260,000 300,000

5.3 PROJECTED BALANCE SHEET

ELIXSAM TECH GADGET RENTAL ENTERPRISE BALANCE SHEET AS AT

DECEMBER 2025

FIXED ASSETS CAPITAL 1,900,000

Equipment 500,000

Machinery 800,000

Land 500,000

Furniture 400,000

CURRENT ASSETS LIABILITIES

Cash at hand 300,000 Loan 900,000

Cash at bank 400,000 Creditors 600,000

Debtors 400,000

TOTAL 3,300,000 3,300,000

ELIXSAM TECH GADGET RENTAL ENTERPRISE BALANCE SHEET AS AT

DECEMBER 2026

47
FIXED ASSETS CAPITAL 2,000,000

Equipment 600,000

Machinery 550,000

Land 500,000

Furniture 450,000

CURRENT ASSETS LIABILITIES

Cash at hand 400,000 Loan 900,000

Cash at bank 450,000 Creditors 600,000

Debtors 450,000

TOTAL 3,500,000 3,500,000

ELIXSAM TECH GADGET RENTAL ENTERPRISE BALANCE SHEET AS AT

DECEMBER 2027

FIXED ASSETS CAPITAL 2,200,000

48
Equipment 700,000

Machinery 600,000

Plot 650,000

Furniture 550,000

CURRENT ASSETS LIABILITIES

Cash at hand 450,000 Loan 800,000

Cash at bank 500,000 Top up loan 500,000

Debtors 550,000 Creditor 500,000

TOTAL 4,000,000 4,000,000

5.4 WORKING CAPITAL

PARTICULARS YEAR 2025 YEAR 2026 YEAR 2027

Stock 900,000 1,000,000 1,200,000

Debtors 400,000 450,000 550,000

Cash at hand 300,00 400,000 450,000

Cash at bank 400,000 450,000 500,000

Materials 400,000 500,000 550,000

TOTAL 2,400,000 2,800,000 3,250,000

5.5 PROJECTED CASHFLOW STATEMENT

49
5.5.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2025
PARTICULARS JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC

Bal/bf 141,000 173,000 148,000 156,000 193,000 124,000 148,000 171,000 147,000 153,000 176,000

CASH INFLOW
Sales 360,000 370,000 350,0000 360,000 380,000 360,000 340,000 360,000 350,000 360,000 370,000 380,000

Parking fee 12,000 10,000 12,000 10,000 16,000 12,000 12,000 14,000 12,000 12,000 14,000 16,000

Refurbished sales 10,000 12,000 8,000 12,000 20,000 10,000 12,000 10,000 8,000 10,000 12,000 20,000

Gadget rental 20,000 20,000 22,000 20,000 20,000 18,000 20,000 22,000 20,000 22,000 20,000 24,000

Security deposits 8,000 10,000 12,000 6,000 4,000 10,000 10,000 10,000 8,000 10,000 10,000 10,000

Late fees 4,000 6,000 4,000 5,000 4,000 6,000 3,000 5,000 4,000 6,000 5,000 2,000

Subscription fees 5,000 4,000 5,000 6,000 10,000 6,000 10,000 6,000 4,000 5,000 6,000 6,000

Tech support fee 10,000 12,000 10,000 12,000 8,000 12,000 8,000 12,000 16,000 10,000 12,000 16,000

TOTAL 439,000 444,000 423,000 431,000 470,000 434,000 415,000 439,000 422,000 423,000 451,000 474,000

CASH OUTFLOW

Taxes 100,000 - - - - - - - - - - -

Rent 20,000 - - - - - - - - - - -

Electricity bill 10,000 12,000 15,000 15,000 15,000 10,000 8,000 10,000 15,000 10,000 15,000 14,000

Water bill 2,000 3,000 4,000 4,000 6,000 4,000 3,000 2,000 4,000 4,000 4,000 6,000

Insurance 10,000 - - - - 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Advertisement 20,000 - - - - - - - - - - -

Salary and wages 236,000 - - - - - - - - - - -

TOTAL CASH 298,000 271,000 275,000 275,000 277,000 310,000 267,000 268,000 275,000 270,000 275,000 276,000

Accumulated 141,000 173,000 148,000 156,000 193,000 124,000 148,000 171,000 147,000 153,000 176,000 198,000
cash/profit

50
5.5.2 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2026
PARTICULARS JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC

Bal/bf 198,000 159,000 198,000 158,000 192,000 210,560 143,000 172,000 193,000 182,000 180,000 176,000

CASH INFLOW

Sales 380,000 390,000 360,0000 370,000 380,000 390,000 370,000 380,000 370,000 390,000 390,000 400,000

Parking fee 12,000 16,000 14,000 16,000 15,000 12,000 14,000 12,000 10,000 12,000 12,000 12,000

Refurbished sales 12,000 16,000 14,000 18,000 15,000 12,000 10,000 12,000 12,000 14,000 14,000 10,000

Gadget rental 25,000 20,000 22,000 20,000 20,000 20,000 20,000 20,000 20,000 22,000 20,000 20,000

Security deposits 10,000 12,000 12,000 12,000 15,000 8,000 10,000 12,000 10,000 12,000 12,000 10,000

Late fees 6,000 4,000 6,000 6,000 10,000 6,000 10,000 10,000 8,000 6,000 8,000 8,000

Subscription fees 8,000 6,000 8,000 10,000 5,000 5,000 10,000 10,000 12,000 8,000 12,000 8,000

Tech support fee 14,000 12,000 10,000 16,000 5,000 10,000 10,000 15,000 16,000 10,000 8,000 6,000

TOTAL 467,000 476,000 446,000 468,000 485,000 463,000 454,000 471,000 458,000 454,000 466,000 474,000

CASH OUTFLOW

Taxes 100,000 - - - - - - - - - - -

Rent 20,000 - - - - - - - - - - -

Electricity bill 12,000 16,000 18,000 16,000 12,000 18,000 20,000 18,000 12,000 12,000 16,000 16,000

Water bill 4,000 6,000 6,000 4,000 6,000 6,000 6,000 4,000 8,000 6,000 6,000 8,000

Insurance 20,000 - - - - - - - - - - -

Advertisement 20,000 - - - - - - - - - - -

Salary and wages 236,000 - - - - - - - - - - -

TOTAL CASH 308,000 271,000 275,000 275,000 277,000 310,000 267,000 268,000 275,000 270,000 275,000 276,000
OUTFLOW

Accumulated 159,000 198,000 158,000 192,000 210,560 143,000 172,000 193,000 182,000 180,000 188,000 194,000
cash/profit

51
5.5.3 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2027
PARTICULARS JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC

Bal/bf 194,000 132,000 185,000 206,000 195,000 185,000 154,000 166,000 197,000 204,000 195,000 208,000

CASH INFLOW
Sales 380,000 380,000 400,0000 390,000 370,000 390,000 360,000 380,000 390,000 380,000 400,000 400,000

Parking fee 14,000 12,000 10,000 16,000 14,000 12,000 12,000 14,000 10,000 12,000 16,000 14,000

Refurbished sales 12,000 10,000 12,000 14,000 16,000 10,000 12,000 14,000 12,000 14,000 12,000 16,000

Gadget rental 20,000 24,000 22,000 22,000 26,000 22,000 20,000 24,000 26,000 22,000 20,000 26,000

Security deposits 10,000 12,000 10,000 14,000 12,000 8,000 12,000 10,000 10,000 14,000 10,000 14,000

Late fees 4,000 6,000 8,000 6,000 6,000 8,000 6,000 6,000 4,000 6,000 4,000 8,000

Subscription fees 6,000 7,000 8,000 8,000 7,000 6,000 6,000 7,000 8,000 5,000 6,000 8,000

Tech support fee 12,000 10,000 14,000 14,000 12,000 10,000 14,000 10,000 10,000 12,000 14,000 10,000

TOTAL 448,000 461,000 482,000 473,000 463,000 466,000 442,000 475,000 476,000 467,000 482,000 486,000

CASH OUTFLOW

Taxes 100,000 - - - - - - - - - - -

Rent 20,000 - - - - - - - - - - -

Electricity bill 16,000 14,000 16,000 16,000 14,000 12,000 14,000 16,000 12,000 12,000 16,000 16,000

Water bill 4,000 6,000 4,000 6,000 8,000 4,000 6,000 6,000 4,000 4,000 4,000 6,000

Insurance 20,000 - - - - - - - - - - -

Advertisement 20,000 - - - - - - - - - - -

Salary and wages 236,000 - - - - - - - - - - -

TOTAL CASH 316,000 276,000 276,000 278,000 278,000 312,000 276,000 278,000 272,000 272,000 276,000 278,000
OUTFLOW

Accumulated 132,000 185,000 206,000 195,000 185,000 154,000 166,000 197,000 204,000 195,000 208,000 208,000
cash/profit

52
5.6 BREAK EVEN ANALYSIS
VARIABLE COST

PARTICULARS AMOUNT

Electricity bill 139,000

Water bill 46,000

Total 185,000

Variable costs*100

Total sales

185,000*100 = 51.20%

360,000

FIXED COST

PARTICULARS AMOUNT

Salary and wages 236,000

Rent 240,000

License 20,000

53
fixed costs *100

Total sales

210,000*100 =58%

360,000

5.7 DESIRED FINANCING

PARTICULARS AMOUNT

Pre-operational cost 20,000

Rent 240,000

License and permits 120,000

Electricity bills 24,000

Insurance 20,000

Advertisement 20,000

Total 444,000

FIXED ASSETS

Equipment and machinery 1,300,000

Plot 500,000

Furniture 400,000

Total 2,200,000

54
5.8 PROPOSED CAPITALIZATION
SOURCES OF CAPITAL AMOUNT

Loans 1,000,000

Land 460,000

Personal savings 400,000

Family, friends and relatives 100,000

Total 1,960,000

5.9 PROFITABILITY RATIO

Year 1 Gross profit *100=

Sales

240,000*100 = 67%

360,0000

Year 2

Gross profit *100 =

260000*100 =68%

380,000

Year 3 Gross profit*100

Sales
55
300,000*100 = 71%

420,000

56
 APPENDIX 1
MAP SHOWING BUSINESS LOCATION

BOBONGO
SECONDARY
BOBONGO ROAD TOPTINE
SCHOOL COMPANY OLTALET MALL
ELIXSAM TECH
GADGET RENTAL
ENTERPRISE

NAROK-BOMET HIGHWAY

NATIONAL
SUMMER BANK
HOTEL
SASA
MALL
GRAND
RIVERS
WAGETHUMO RESTARANT
COMPUTER
SERVICE MAASAI
MARA
MWANGI UNIVERSITY
X STUDIO
MUSIC
PRODUCER

57
 APPENDIX 2
BUSINESS LAYOUT

SECURITY GUARD
OPERATION
MANAGER
FINANCE
MANAGER

ENTRANCE

ELIXSAM TECH GADGET

CUSTOMER CARE RENTAL ENTERPRISE

SECTRETARY’S
CUSTOMER’S OFFICE
WAITING BAY

INVENTORY
MANAGEMENT
LOGISTIC AND
OFFICE
OPERATION
MANGER

EXIT
MARKETING AND
PROMOTION OFFICE

PYSICALLY GENTS LADIES

CHALLENGED

WASHROOMS

PARKING BAY

58