CHAPTER ONE

1.0. BUSINESS DESCRIPTION

1.1. Business Name

The name of the business will be Heva Resort Motel. Resort motel differs from commercial
motel in that it offers entertainment and relation. In addition to sleeping and eating facilities. It
also differs in that average stay is from a week to 2weeks instead of 1-2 days of commercial
motel. Heva is a family operating name. Heva Resort Motel also considers the environment place
which is peaceful and affordable to all customers.

1.2. Business Location and Address

The business will be located in Kakamega county, Kakamega town along Lurambi Highway. It
will be situated near the Pendo garage. The place has enough space for customers and conducive
environment for playing of kids. The Motel is allocated away from hotels and other motels to
avoid stiff competition.

HEVA RESORT MOTEL,

P.O BOX395-50401

KAKAMEGA(K)

TEL:0734372609

EMAIL: hevaresortmotel@gmail.com

Direction

The enterprise choices because there is good transport network between the clients and the
walkers. The location is also clean that suites the business as it requires high standard of hygiene
to be observed.

1
1.3. Form and Type of Ownership

The business enterprise proposed ownership will be sole proprietorship. The business chose to be
sole proprietor because of the following reasons. On being one person there will be on separate
entity, intrapreneur will enjoy all the profits and suffer losses alone and make decisions alone.

1.3.1 Advantages of sole proprietorship

The business will have the following advantages. Decision making will be fast, a sole trade
business will be easier, simple start and also resolving, it is easy and having control of your
business

1.4. Types of Business and Status

Heva Resort will be operating on services and production. Production of food will be offered and
different services since I will be offering accommodation and meetings. I will be starting the
business and it will be a continuity in coming generation. It will commence on 16th August

2
2025.It will be my birthday date. So, I want to celebrate my day of turning 30years while I open
up my business.

1.5. Production and services

The business will offer products including coffee and especially espresso drinks bottled drinks
snacks and food items. The business will also offer services such as catering delivery of goods,
baking, training and conference for business, accommodation i.e lodging for customers.

1.6. Justification of Opportunity

The business allocation is good since the customers will get the product within the town near
their residential areas, the customers will get variety of beverage product under one building. The
products will be inspected by health officers too.

Promotion of services will be offered to customers. Intrapreneur will also ensure that clean and
health products in large quantities to minimize shortages as compared to other sole traders.

1.7. Industry
The business will be under a hospitality industry, where variety of food will be provided to the
customers. The business is a hospitality industry because its characteristics are to provide both
local and traditional dishes and offer ample environment for relaxing and accommodation for
customers. The industry is characterized with the production of high-quality product than other
hospitality industries thus cubing the customer`s specification to the food preference

1.8 Goal of the Business

1.8.1 Long term goals
Expanding its operation by the year 2027, ensure friendly comfortable atmosphere and offer
discount coupons. To be able to open more business in other centers and towns.

1.8.2 Short Term Goals

To generate more profits\incomes. To satisfy customer`s needs. To provide high quality bedding,
furniture’s and décor. To improve living standards of both employees and employers

1.9 Entry and Growth Strategy

The business will advertise its products by displaying the products offered and terms of service.
This will be distributed to identify potentials customer all over the county and beyond. On the
start, free samples will be offered to attract customers.

3
The business will employee qualified personnel in various fields, the profits earned from the
business be invested to facilitate expansion and credit sales will be used in order to attract more
customers.

CHAPTER TWO

2.0 MARKETING PLAN

2.1. Customers

There will be people who will make the business successful such as learning institutions,
hospitals, individuals and business people

2.1.1 Learning Institutions

Colleges, schools and other learning institutions such as Masinde Muliro University and Peace
makers college among others will benefit from accessing our products and services.

2.1.2 Hospitals

Nearest hospital is such as Approved Hospital, Kakamega general hospital and Yala Private
Centre will buy take way foods, coffee, souliees, breakfast bar, roasted nuts and decals for the
patience to boost immunity.

2.1.3 Individuals

People attracted with the products and services will also get sorted and benefits from the
business.

2.1.4 Business People

Small business owners will hire goods for sale in their own enterprises.

2.2. Market Share

By the end of five years, the business will have generated a lot of customers thus the total market
share will be large because the business will target the common citizens and foreign tourists

The target country citizens/Kenyans

4
Target = 50%

Total Population = 800,000

Population shares = 25% X 800,000

100

= 200,000

Population share = 400,000

Target foreign tourist = target 25% - 1,000

Population share = 25% X 1,000

100

Population share = 250 + 200,000 = 200,250

Effects on population shift to the business growth

Population shifted 10%

Population remaining = 10% X 80,000

100

Business Target 50%

= 50% X 80,000
100

= 400,000 – 80,000

= 320,000

5
 PERCENTAGE SALES

HEVA RESORT GOLF HOTEL PENJOKI RESORT PARKLAND MOTEL

2.3. Competition
The business will introduce the saucers to customers so as to attract the customers. Free juices
will be offered to the customers at the meal. I will also put Wifi to all my departmental areas so
as to ensure the customers enjoy free internet. advanced technology from manual to mechanical
which will make work easier for workers to reduce time wastage finally I will employ trained
staffs who have skills about certain dishes and menu compilation.
Business competitors are:

1 GOLF HOTEL
P.O BOX 396-50401
KAKAMEGA(K)
Email:Golfhotel@gmail.com

It is located 3meters away from my business

2 PARKLAND MOTEL
P.O BOX 395-50401
KAKAMEGA(K)

6
Email:Parklandmotel@gmail.com

It is located 0.5km away from my business location

3 PENNJOKI RESORT
P.O BOX 394-50401
KAKAMEGA (K).
EMAIL: penjokiresort@gmail.com

It is located 800 metres away from my business.

2.4.

Business Name Strength Weakness Opportunity Threats

Golf Hotel Qualified personnel Higher prices Few competitions Lack of
Affordable prices Poor hygiene in the business resources.
They offer home Insecurity area.
delivery
Parkland Motel High quality materials Located in the Has adequate Poor market
and services. Have interior. Low level capital to sustain handling.
skilled personnel of management the business.
Penjoki Resort Affordable prices. Insecurity Adequate capital to Competition
Availability of sales problems which sustain the fluctuation of
products. Qualified hinders business business. prices.
personnel organizations.

2.5. Promotion and Advertising

The proposed business will use different methods of advertising so as to promote the
performance of the business.

2.5.1. Newspapers
The targeted business will use this method because it offers better targeting and this allows
advertisers to reach effectively smaller and niche audiences in specific geographical area.

2.5.2. Magazines
The business will use this method because magazines already focus on the business industry and
also focuses to the market and potential customers.

7
2.5.3. Television
The advantage with it is that many people and customers will be able to see products and
services offered in the coffee shop and it will attract more customers.

2.5.4. Radios
They are too cheap than television and many people get accessed to them and still listen to them.

2.5.5. Billboards

The customers will get appearing to new billboards and will frequently get to learn how the
business is running and get to know the products and services offered.

2.6. Pricing Strategies

The proposed business when pricing the products and services will look into the consideration of
some costs such as transport costs, credit sales and salaries and wages of the employees. Credit
will only be offered to those customers who purchase goods regularly and those who purchase in
bulk. Customers who purchase goods in large quantities worth over Ksh.6000 will be allowed a
discount of 5%. Debtors who repay their debts promptly receive a 2% discount.

2.7. Sales Tactics

The proposed business will provide details about each type of products that will be selling using
different tactics in selling its products. It will use advertisements in radios, television and social
media on platforms such as facebook, instagram and whatsapp. This will help people understand
the quality and the value of the products so that they feel confident when buying.

2.8. Distribution Strategy

The proposed business will use various techniques to distribute the products and services to
potential customers. The business will operate vehicle delivery for special deliveries between
scheduled delivery days. Delivery will be made from Monday to Friday and will be strategically
routed to minimize travel time and fuel costs and maximizing production. With each delivery
addition routes will be restructured to maintain maximum efficiency.

8
 CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 Organization Plan

The Heva Motel as stated earlier shall operate under an empowered cloud of management team
of manager, Assistant manager, supervisor e.t.c. The activities as they tend to reflect will be
delocalized and every employee shall deal with his/her own individual duty and responsibility.
The top management i.e. managing director and assistant will be the statement stakeholders
The business shall carry out its errands as dedicated in the structure drawn below

GENERAL MANAGER

ROOM BAR & BANQUET RESTAURANT CHIEF

SERVICE BEVERAGE
MANAGER MAANGER MANAGER MANAGER STEWARD

ROOM BAR ASS. BANGUET ASS. STEWADING

SERVICE TENDER MANAGER RESTAURANT
CAPTAIN MANAGER SUPERVISOR

BAR BANQUET
ORDER RESTAURANT STEWARD
WAITER CAPTAIN
TAKER CAPTAIN
WAITRESS

BANQUET
WAITER WAITER/
WAITER
WAITRESS WAITRESS
WAITRESS

TRAINESS TRAINESS
TRAINESS

9
3.2 Management Personality
 Procurement
 Storekeeper
 Housekeeper
 Accountant
 Receptionist
 Sales person

Personel Member and Duties

Manager
The manager is responsible for managing, planning, marketing and coordinating, administrating
hotel services i.e. catering and accommodation facilities. The manager overseas all operations
and day to day activities in a hotel organization

Assistant Manager
The assistant manager plays the role in business of providing administration and operational
support to the hotel manager
He/she is responsible for correspondence. Trains new employees and takes phone calls.
Responsible for assigning tasks, monitoring staff when the hotel manager is not present and
doing paper work

Supervisor
Setting goals for performance and deadlines in ways that comply with company’s plan and
visions. Responsible of organizing work flow and ensuring that employees understand their
duties of delegated tasks.

Monitors employee’s productivity and providing constructive feedback and coaching. Keeps on
line of communication with employees.

Procurement
Supervising staff, maintain positive supplies, relation, evaluating supply options, approving
purchases and maintaining accurate record to be successful and having an analytical mind and
keep up with product and service trends.
10
Store Keeper
Plans and performs work that involves ordering, receiving, inspecting, returning, unloading,
packing, labeling, pricing, delivery and maintaining a perpetual inventory of forms office supply
and various types of equipment. Rotates stock and arranges for disposal of surplus

Housekeeper
Dusting and polishing furniture and fixtures, cleaning and sanitizing toilets, shower, bathtub,
countertops and sink. Maintaining a clean and sanitary kitchen area, Making beds and changing
linens. Washing windows, vacuuming and cleaning carpets and rugs.

Porter
Sample job description can be used to help one from job adverts that will attract candidates who
are qualified. He/she feels free to revise this description to meet specific job duties. Carries
language for hotel and motel guests.

Waiter
Providing excellent wait service to ensure satisfaction, taking customers order and delivering
food and beverages. Making menu recommendations, answering questions and sharing additional
information with restaurant patrons.

Concierge
Welcoming customers upon entrance and confirm reservation. Acting as the point of reference of
guest who need assistance or information understanding customers’ needs and provide them with
personalized solution by suggesting activities and facilities provided by the hotel.

Trainers
Completing all assigned tasks and assisting with day to day operations participating in meetings
workshops and other learning opportunities. Observing and learning from experienced staff
members. Gaining knowledge of Company policies, protocols and process.

Cleaner
Cleaning and stocking and supplying designated facility areas (Dusting, sweeping, vacuuming,
mopping, cleaning, cleaning, rent, restroom) performing and documenting routine inspection and
maintenance.

11
Recruitment, Training and Promotion
Employment of new employees shall be advertised through social media i.e. Radio, TV,
Newspaper, posters and Circulars. Applications will be received and communication made to
these who would have passed/qualified for the job stating the date for interviews. The application
shall meet the required standard and qualifications.

Qualification of Assistant Manager

 Most be self-motivated
 Possess desire for development
 Should have ability to work autonomously.

Accountant
 Must have a certified management
 Accountant certification
 Must have 2-3 years of training
 Must be financial planner.

Supervisor
 Must have previous leadership experience
 Must be excellent in communication skills
 Must have ability to work as part of the team

Waiter
 Must have a certificate or diploma in Food and Beverage
 Should have a medical certificate that allows the food handling

Receptionist
 High school diploma is required
 Basic computer knowledge and appropriate software proficiency
 Possess multi-task handling ability

3.3. Promotion
Promotion in the business enhances co-operation and attainment of goals as a result, I will
motivate my employees. The promotion will be given to those with highly training power, will
be held through an increase salary payment, job position and also discount

12
3.4. Remuneration and Incentives
Since there are the employee’s earnings ranging from salaries and allowances. They will be paid
as determined below

JOB TITLE SALARY/WAGES ALLOWANCES

Assistant Manager 12,000 4,000
Accountant 10,000 2,000
Concierge 8,000 1,500
Cleaner 4,000 500
Storekeeper 3,500 1,000
Waiter 4,500 1,000
Housekeeper 3,500 1,000
Receptionist 4,500 1,000
Procurement 2,300 1,000
Trainees 2,000 500
Sales person 2,000 500
TOTAL 56,300 14,000

The above payments shall be made monthly at the beginning of every month and year.

3.5. Incentives
The proposed business plan annual leave to all employees and overtime pay will be allowed
whenever necessary.

3.6. Licenses, Permits and By-laws

3.6.1. Licenses and permits

The proposed business intends to obtain a license and business permit from the district
commissioner’s office in Busia Town. This is a requirement of the government that any business
must have before starting.

3.6.2. By-Laws
The business should abide to the laws of the government like accessing the license and paying of
taxes whenever necessary.

13
3.7. Support Service
3.7.1. Insurance
The proposed business will be insured against fire, theft and other possible risks or accidents that
might occur. In case it happens, the Madison Insurance company might be able to compensate
the business.

3.7.2. Health
The proposed business premises will be inspected regularly by health officers to ensure high
standards of hygiene is maintained.

3.7.3. Electricity
The business management should be located near the area where there is availability of power.

3.7.4. Security
The business will be guarded by G4S security

G4S Security Limited

395 Kakamega.

Hours 24 hour open

Tel: 0725125568

14
 CHAPTER FOUR

4.0 PRODUCTION AND EPERATION PLAN

4.1 Production and Operational Facilities and Equipment

Name of equipment Uses/purpose Capacity No. Unit Total supplier
required cost
Gas cooker Cooking Medium 3 3,800 11,4001 Tuskys
Fridge Refrigeration Big 2 45,000 90,000 Tuskys
Blender Blending Medium 3 2,000 8,400 Khetias
Sufurias Boiling & stewing Sets 24 600 14,400 Khetias
Wine glass Drinking wine Dozen 5 600 3,000 Tuskys
Table ware Covering tables Set 10 300 3,000 Tuskys
Napkins For customers use Set 10 100 1,000 Tuskys
Detergents Cleaning Litres 2 lt 400 1,200 Khetias
Cups Taking coffee & tea Dozen 7 350 2,450 Khetias
Plates Servicing Dozen 5 400 2,000 Khetias
Dustbins Placing Littre Medium 5 100 1,000 Tuskys
Microwave Warming food Large 3 15,000 30,000 Tuskys
Knives Chopping/cutting Medium 6 100 6,00 Tuskys
Spoons Eating Size 5 150 750 Tuskys
Forks Eating Dozen 5 150 750 Malimali
Brush Scrubbing Dozen 3 120 360 Mama watoto
Bucket Washing Big 5 150 750 Tuskys
Generator Generating power Big 1 40,000 40,000 Tuskys
Electric heater Heating water Medium 2 150 300 Tuskys
Pans Frying Medium 4 200 800 Tesia
Tables Service 10X24 12 600 9,000 Mama watoto
Chairs Service - 24 550 13,200 Tuskys
Coffee maker Making coffee Large 1 5,000 5,000 Tuskys
machine
Slicing machine Slicing pastries Large 1 3,000 3,000 Mama watoto
Floor machine Making deserts Large 2 6,000 6,000 Mama watoto
Drying machine Drying linen Large 1 8,000 8,000 Mama watoto
GRAND 256,360 Mama watoto

15
4.2 Production Strategy
PREMISES AMOUNT
Electricity 30,000
Furniture 22,000
Water 10,000
Rent 20,000
Tax 5,000
Total 87,200

Production cost
TYPE OF COST AMOUNT
Material 30,600
Labour 50,000
Overhead 10,000
Cost per unit 20,000
total 110,360

Tools cost
Equipment Cost
Tables 9,000
Chairs 13,200
Total 22,200

Machine cost
Machine Cost
Coffee maker 5,000
Slicing machine 3,000
Drying machine 8,000
Flour machine 6,000
total 22,000

Equipment cost
Equipment Cost

16
 Table wave 3,000
Cleaning material 1,560
Glass wave 3,000
Cooking pans 800
Total 8,360

Repair and maintenance

Item Cost
Premises 87,200
Equipment 8,360
Tools 22,200
Total 11,760

4.3. Production Process

The production material will be purchased from manufacturing where stock to be purchased will
be determined by the demand of the product and follow the customer’s request because they are
our bosses and we respect them much.

4.4 Operational Requirements

After production the organization vehicle will be used to transport items to the business premises
in order to arrive on time and in good condition in order to avoid time wastage.

4.5 Type of Requirement

Type Amount
License 1,500
Taxes 5,000
Other approval 3,000
Total 9,500

CHAPTER FIVE

17
5.0 PRE-OPERATIONAL COSTS
ITEM AMOUNT
Business plan preparation 1,500
Cash to run the register 14,000
Remodeling and innovation 5,000
Fixtures and equipment 35,000
Insurance cost 2,500
Licenses and permit 3,500
Hiring employees 55,800
Supplies 50,000
Un-anticipated 5,000

5.1 WORKING CAPITAL

ITEM AMOUNT
Stock of raw materials 20,000
Work in progress 15,000
Stock of finished goods 25,000
Debtors 30,000
Cash and bank 100,000
Total 190,000

5.2 PRO-FORMA INCOME STATEMENT

SALES AMOUNT
Cost of goods sold 10,000
Gross profit 15,000
Expenses 3,000
Wages 55,000
Rent 15,000
Water 10,000
Telephone 3,000
Electricity 15,000
Advertisement 2,500
Stationary 1,000
transport 3,000
18
 Postage 500
Depreciation 2,000
Photocopying 500
Website design 2,000
e-mail 500
Repairs 2,000
Net profit 11,500
Net profit after tax 30,000
TOTAL 181,500

5.3 BALANCE SHEET

ASSET
CURRENT AMOUNT
Cash 100,000
Debtors 35,000
Stock and finished goods 25,000
Stock of raw materials 105,000
FIXED ASSETS 265,000
Machinery and equipment 30,000
Accumulation depreciation 2,000
Vehicles 350,000
Furniture and fittings 31,000
Total Fixed assets 413,600
Total assets 413,600+265,000 = 678,600

LIABILITIES
Current liability 10,000
Creditor 12,640
Bank charges 50,000
Owner equity 10,000
19
Total liability to equity 82,640

20
 5.4 PROJECT CASH FLOW STATEMENT

CASH FLOW STATEMENT REFERENCE

Recei Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total
pts
Sales 23,000 10,000 15000 18500 20,000 9000 18000 21000 20000 17000 21000 23700 216,200

Net 17,000 14,000 15,000 17,000 10000 12000 10500 14000 19000 15700 12000 17500 173,700

sales
Purch 10,000 9500 10,100 8700 11000 9000 8000 8550 7550 1000 10100 10500 104,000

ase
Furnit 22,2000 15000 12000 14000 10000 10000 10500 10200 12000 13000 13500 19500 361,700

ure
Electr 30,000 25,000 20,000 15,000 18,000 20,000 15500 18000 14000 27000 25000 26500 254,000

icity
Machi 20,000 15000 10000 9000 16000 15000 11500 18000 17000 17500 19000 20000 188,000

ne
Trans 4,000 2,000 1,000 900 800 1,000 750 850 800 1000 1500 2200 16,800

port
Water 11,000 5000 9500 10,000 8500 8500 7500 800 7500 5500 6500 9500 89,800

Telep 850 750 800 1000 900 600 500 700 1050 1200 1000 900 10,250

hone
Raw 20,000 17,500 18,000 10,000 19000 15000 16000 15000 1750 19000 19500 20000 190,750

mater
ials
equip 10,000 9000 8360 7500 8000 8350 5000 7000 7500 5500 8360 5500 90,070

ment
1,695,270

21
REFERENCE

S.Gallardoy (2010) Succefull Business planning

D.Schiesser (2002) Economists and motivation,Northwestern Switzerland

Olivic Baring (1987) Accounts, Jesse Bass, Euroupe.

22