BUSINESS PLAN PROPOSAL
BUSINESS NAME: MWANGAZA COMPUTERS
JUNE 2016
PREPARED BY:
MWANGAZA LIMITED
TANGA
TANZANIA
+255 713 951549
E-mail: [email protected]
Website: www.mwangazalimited.weebly.com
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MWANGAZA COMPUTERS
FOR:
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TABLE OF CONTENTSEXECUTIVE SUMMARY.......................................................................................................................1
1.0 PROFILE OF THE COMPANY........................................................................................................2
1.1 Current Status............................................................................................................................2
1.2 Management and Ownership....................................................................................................2
2.0 THE BUSINESS..................................................................................................................................2
2.1 Business Model and Value Proposition..........................................................................................2
2.2 The Service.......................................................................................................................................3
2.3 Market Structure and Analysis......................................................................................................3
2.3.1 Target Market and Customer Base.........................................................................................3
2.3.2 Market Size and Potential........................................................................................................4
2.3.3 Competitor Analysis.................................................................................................................5
2.3.4 Competitive advantages............................................................................................................5
2.5 Price Breakdown..............................................................................................................................6
2.6 Marketing.........................................................................................................................................6
3.0 OPERATION PLAN...........................................................................................................................6
3.1 Service Method................................................................................................................................6
3.2 Equipment/Facilities requirements................................................................................................7
3.3 Serving Process................................................................................................................................7
4.0 MANAGEMENT PLAN.....................................................................................................................7
4.1 Company Structure.........................................................................................................................7
4.3 Management Team..........................................................................................................................8
4.4 Key Positions and responsibilities..................................................................................................8
4.5 Salaries.............................................................................................................................................9
5.0 MILESTONES AND STRATEGIES...............................................................................................10
6.0 FINANCIAL PLAN...........................................................................................................................10
6.1 Investment Plan.............................................................................................................................10
6.2 Financial Assumptions..................................................................................................................10
7.0 THE DEVELOPMENT IMPACT....................................................................................................11
Appendix I:..............................................................................................................................................12
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EXECUTIVE SUMMARYThis is a business plan proposal of which will involve a service provision of computer courses to
the niche of students i.e. form four and form six leavers, graduates of certificate, diploma and
degree level and also to workers and any other stakeholder who wish to educate or upgrade
himself or herself in the field of computer software and applications. Due to the vastness of
technology in its expansion, the demand for usage is imminent and it cannot be avoided in one
way or the other, paperless work is the current dogma of which record keeping, documentations
and other official activities are done.
Any industry in the world requires the use of computer and it’s applications because it is more
convenient, time saving, cost minimizing and above all tidiness on the look out of the office.
Making this business possible there are necessary resources of which are to be hand in hand on
realization of the goal, fixed assets i.e. computer kits, furniture, a class and electronic items and
also there to be working capital which will involve maintaining the instructor, utilities and
teaching aids.
Mwangaza Computers; the business will be managed by the team of management from
Mwangaza Company Limited; Head of Consultancy Department who will be the Business
Manager of day to day activities during the business conduction and the main instructor,
Secretary and the Salespersons.
For the take-off, 9,630,000/= Tshs is needed as for acquisition of ten desktop computer kits, ten
tables and chairs for students and a renting space for the class to take place, also it will include
six months’ salary for the instructor and supporting of teaching aids. The capital for the start of
the business will come from two types of sources that is, internal and external. The internal
source will involve the money from Mwangaza Limited sources of funds and the external source
will involve other stakeholders in form of funders, loans and grants making a ratio of 20:80
respectively.
After the injection of the capital, the business will make revenues of 13,088,000/= Tshs per year,
earning a profit of 2,048,200 with a rate of return on investments for years from the money
injected after the initiation of the business.
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1.0 PROFILE OF THE COMPANY1.1 Current Status
Mwangaza Limited is a Company Limited by Guarantee, registered under the Company Act of
2002 with the registration Number 124964 in 23rd March 2016 under BRELA. The company
wishes to start the business as it sees the opportunity to utilize resources available, hence there
are no previous activities on the business under the company history.
1.2 Management and Ownership
The business will be owned and managed by the company as the Board of Directors manage the
company activities. The Board of Directors include three persons whose CVs are annexed at the
end of the document. As the following diagram shows organizational chart of the Company;
Figure 1: Company Hierarchy Chart
2.0 THE BUSINESS2.1 Business Model and Value PropositionThe business model of Mwangaza Computers will be in a form of a teacher-students relationship
as there will be searching for students for attending various computer courses and admitting them
to the respective courses. The instructor will be responsible to teach and train them accordingly
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BOARD OF DIRECTORS
CHIEF EXECUTIVE
OFFICER
CHIEF ACCOUNTANT
HR & PUBLIC RELATIONS MANAGER
HEAD CONSULTANCY
OPERATIONS MANAGER
and enhance them with proper materials to refer to and then awarding a certificate will be done
for the accomplishment of the course to students. Students will pay admission fees, materials for
study, certificate for attendance and other optional fee such as for T-shirts and others’ requested
thereto.
2.2 The ServiceMwangaza Computers will offer services to customers on computer courses of which will enable
the recipient of the courses offered to cope with the changing technology, upgrade his/her
capabilities in using the applications for better performance in workstations and to be exposed on
ways and techniques on how to utilize time and other resources by applying the skills and
knowledge gained. Since Tanga is in a strategic location nationally, the presence of a harbor, rail
way and the coming pipe line from Uganda to Tanga Port will stimulate the economic activities
in a higher rate making the use of optimum operation tools such as computers to be very crucial.
Hence paperless, less time consuming and low cost means will be used and there will not be any
other way for achieving maximum satisfaction if the proper use of computer is neglected,
therefore capacity building through offering of computer courses will be the only solution, and it
will be provided by Mwangaza Computers.
2.3 Market Structure and Analysis2.3.1 Target Market and Customer BaseMwangaza Computers targets three types of market segments; School leavers, Graduates and
Workers. There are different reasons for segmentation;
School leavers, these are students who completed form four and form six and wait for their
selection to the next level i.e. A-Level or University level respectively. These students after
finishing their studies do have a lot of ample time to study more before entering to the next stage.
This time can be utilized and well optimized by studying computer courses equipping them with
proper knowledge for self-confidence, self-reliability and self-development. The course will help
the student be aware of the basics on computer technology and use it well on his/her advantages,
from the previous years Tanga has not been in a good position concerning educational
performance especially form four results as it can be evidenced on the last ten schools in 2014
results i.e. five schools were from Tanga region (Manolo, Mnazi, Magoma, Mashindei and
Kwalugulu Secondary Schools) (NECTA, 2014). For those who cannot advance into the next
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stage, computer courses play a bigger role in exposing them to employable position and finally
be able to reach his/her goals.
Graduates, According to NACTE Tanga District has 11+ colleges and universities combined
each year there are graduates from different levels i.e. Certificates, Diploma and Degree. But not
all graduates understand the use of computer in relation to office operations and they are in
position to be engaged in a workable environments. Hence equipping and enable them to have
the proper skills and knowledge in the use of appropriate applications, they will be productive
and make positive changes in the offices.
Workers, this is another segment of which Mwangaza Computers targets as many workers in
Tanga offices are in the age between 30’s to 60’s and in many organizations training for
upgrading such knowledge is less conducted rather it is seemed as a personal mission for one to
cope with the changing technology. On the other side, the characteristics of this segment along
with the working conditions, upgrading technological skills and knowledge at an individual level
is a task that people see it as a wastage of time because if the office does not empower them with
such thing then it implies that it is not relevant but it’s the opposite and if the office delays such
kind of empowerment Mwangaza Computers can.
2.3.2 Market Size and PotentialFrom the market segments market size will increase (growing market) as there are 21 Secondary
Schools of which are located in Central District and the neighboring districts, students complete
their O-Level studies and a total of seven A-Level Secondary Schools, this makes not less 2,000
students to complete their studies in each year pass by. Making them idle for more than three
months of which a single computer course can be fully finished.
Under the graduates segment, graduates under certificates, diploma and degree level depict how
vast the market is. As there are 11+ higher learning institutions produces graduates each year
making them to search for employment or be entrepreneurs in one way or the other. To be
competitive enough in the labor market, computer mastering in office operations is a must.
Making these graduates a potential target for offering such services.
On the side of workers, according to Tanga Municipal Council in 2013 there were 5,591 business
which were operating and 2,190 new business applied for new license ready for starting their
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businesses. This gives a hint that in the following years more license and business were started
adding potential customers, hence updating skills and knowledge is an essential move. The rate
of entrepreneur is increasing as business exhibitions increases members year after year and it can
be evidenced on the last exhibition which ended on 6th June 2016 at Mwahako Grounds and their
involvement in the business require technological involvement in order to be efficient and
effective in mastering their businesses. Equipping them with such ability, Mwangaza Computers
can do it with an utmost performance.
2.3.3 Competitor AnalysisIn the targeted market there are three competitors of which has a minimum of 10 pupils at a go
per session. They provide the same service of teaching computer courses, the basics and the
integrated ones. Competitors are the main players which give trends on the market analysis, and
some competitors are relatively successful as they share almost the same number of students
hinting that they have similar treatments and services. There is still a room for more service
provider of computer courses as demand is still high.
2.3.4 Competitive advantages1. Mwangaza Computers will offer the service in a discounted way as students who learn
two courses consecutively will have a discount of 10% on the next course.
2. For the best scoring students, Mwangaza Computers will act as a referee and recommend
to employers when such service is in need by the students.
3. A platform will be built in order to link all students who studied the courses at Mwangaza
Computers and be advertised by Mwangaza Limited in exposing them for other
opportunities in the industry.
4. A flexible schedule will be accommodated by the instructor in order to accommodate the
time frame from the students (especially for workers and entrepreneurs).
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2.4 SWOC Analysis
Table1: SWOC TABLE
STRENGTH WEAKNESSES Qualified instructor Quality facilities Strategic office
location
Low funds to effect operation
Electricity reliability Small classroom
OPPORTUNITIES CHALLENGES Growing market High competition
2.5 Price BreakdownA course offered will cost 167,000/= per student of which will be for 10 weeks attendance. The
price will include;
i. 150,000/= Tshs - Study feeii. 10,000/= Tshs - T-shirt
iii. 5,000/= Tshs - Certificate of attendanceiv. 2,000 Tshs - Admission form
2.6 Marketing Mwangaza Computers will market itself through various means as the goal is to get many people
to notice the service and where it will be served. Flyers will be produced and distributed in a
public areas like public parks (Uhuru Park & Forodhani Park) also these flyers will be placed on
public boards and places near schools and higher learning institutions, another areas are at
Tangamano and bus stations. Another means which will be used to market the service is through
social media platforms and through Mwangaza Limited website. Last but not least, a word of
mouth from students whom will be our ambassadors.
3.0 OPERATION PLAN3.1 Service MethodMwangaza Computers will use teaching and training method to deliver its service to customers
as they will have a trainer-students relationship with Mwangaza Computers. Also provision of
materials will be accommodated to customers who wishes to obtain them.
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3.2 Equipment/Facilities requirementsMwangaza Computers will require and use 10 Desktop Computers in delivering the service as
there will be theory and practical sessions. These facilities will enable the students/customers to
have the exposure and experience in perfecting the study and required tasks. Other facilities will
include 10 tables with chairs for students, a rental space which will be used as a class and one
white marker board for instructor to deliver the knowledge.
3.3 Serving ProcessThere will be marketers for whom will distribute flyers and follow leads on social media
platforms for acquiring customers, the respond from customers will be filed and entered into a
records for further follow ups. Registration of students will be done after complete response from
prospective students, be directed on payment of course fee and fill out registration form ready to
become Mwangaza Computers products.
Students after registration will be given a schedule for their sessions and for those who will not
be comfortable with it, suggestions are open. There will be two session per day, a morning and
evening session with 10 students per each. Each course will take six weeks to complete fully and
after that a Certificate for attendance will be awarded.
Teaching materials will be sold for those who wish to have them for future reference.
4.0 MANAGEMENT PLAN4.1 Company StructureMwangaza Limited is a youth-led company of which visions itself in making the society
competitive for economic challenges in near future. Through Mwangaza Computers, Mwangaza
Limited strives in equipping the stakeholders with the skills and knowledge of the current
computer knowledge in order to make them see what benefits can be acquired from it, utilize
resources accordingly and uphold the control of economic drive from internal and external
competition nationwide.
Tanga businesses together with their practitioners have little knowledge concerning computer
utilization making them to depend on stationeries and secretarial services while this activity can
be done internally especially to small companies/organizations.
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4.3 Management TeamMwangaza Computers will be led by four persons whom will make the business venture reaches
its peaks during its operations. There will be a business manager who will have the overall
management function in seeing the business booms, two marketing/sales personnel and an office
attendant. A business manager has already been acquired and the other positions are to be filled
after the initiation of the business.
4.4 Key Positions and responsibilitiesa) Business Manager
Responsibilities:
i. He/she will be the main facilitator on the courses provided
ii. He/she will be the one issuing the certificates of attendance
iii. He/she will be directly related to the day to day activities on the courses offering
iv. He/she will be responsible in supervising the marketers
v. He/she will responsible in meeting the target on number of students admitted
vi. He/she will write a report to Company’s Management after a batch completes the
course
vii. He/she will be responsible in taking care of the facilities of the business
viii. He/she will conduct any other responsibilities as directed by the Company’s
Management
Qualifications/Requirements
A diploma in Computer studies
Experience in supervision role for more than one year
Fluency in English and Swahili both written and oral
Able to write a report, quarter-semi-annually
b) Marketers/salespersons (2) (Temporal)
i. He/she will be responsible in meeting the target set of customers
ii. He/she will be responsible in doing the follow up
iii. He/she will be responsible in covering the area directed to find the customers
iv. He/she will be responsible in presenting the products to customers in detailed way.
v. He/she will be responsible to other activities as directed by the top management
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Qualifications/Requirements
A diploma in marketing or related study
Experience of more than six months in marketing/sales activities
Fluency in English and Swahili – written and speaking
Be able to spend much time on field (70% of time)
c) Office attendant/Secretary
i. He/she will be responsible in attending/admitting customers arriving at the office
ii. He/she will be responsible in record keeping
iii. He/she will be responsible in dealing with any query or complaint
iv. He/she will be responsible in keeping the office at the professional manner
v. He/she will be responsible in coordinating business and office activities with other
members on the office
vi. He/she will act as a secretary on the office meetings
Qualifications/Requirements
At least a certificate (a diploma is an added advantage) in record keeping
Having an experience of more than six months on similar roles
Be able to write minutes and reports
Fluency in English and Swahili both written and oral
4.5 SalariesTable 2: Positions and Salary of the Business Management
Sn. POSITION SALARY
1. Business Manager 350,000
2. Marketer 120,000
3. Office attendant 200,000
TOTAL 670,000
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5.0 MILESTONES AND STRATEGIESMwangaza Computers aims at admitting 24 students equivalent to three sessions per day. As
Tanga region is expected to have high integrations in economic activities in near future, students
and graduates’ number will increase. With such number of students and sessions instructors will
be increased, another will be employed through vacant advertisements and this target will be
expected to be met after first financial year.
6.0 FINANCIAL PLAN6.1 Investment Plan
Table 3: Investment Highlight
Fixed assets: Per Item Amount (Tshs)
Full kit Desktop Computers (10) 300,000/= 3,000,000/=
Students Tables (10) 50,000/= 500,000/=
Students Chairs (10) 40,000/= 400,000/=
White marker board (1) 50,000/= 50,000/=
Office attendant’s Desktop 300,000/= 300,000/=
Rent (12 months) 100,000/= 1,200,000/=
Working capital: Per Month Amount (Tshs)
Salaries (six months) 634,000/= 3,780,000/=
Marketing Costs 200,000/=
Business License 200,000/=
TOTAL INVESTMENT NEEDED (Tshs): 9,630,000/=
The above table shows the finance needed for business take off and to have sustainable growth,
as 3,456,000/= of total investments has been provided by the Company and the remaining
balance will be sourced outside through funders and close allies.
6.2 Financial Assumptionsi. First and second financial year, two sessions will be conducted per day with 16
students in total.
ii. On the third financial year, there to be 24 students equivalent to three sessions per day
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iii. There to be four batches in a year, a 10 weeks course
iv. Marketers/salespersons will be temporary employed on each batch and be paid
accordingly
Table 4: Approximated Income statement as per at the end of financial years
7.0 THE DEVELOPMENT IMPACTMwangaza Computers will have a positive impact to all its stakeholders who will be imparted
with the knowledge and skills from the classes attended. Students will be having the knowledge
and skill to compete in the labor market force, so as the graduates. Workers will be able to
upgrade their level of understanding and applicability on applications and works to a more
advanced manner.
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First Year
Second
Year
Third Year
Sales 13,088,000 13,088,000 19,088,000
Less: Cost of sales 340,000 340,000 450,000
Gross Profit 12,748,000 12,748,000 18,638,000
Less: Expenses
Salaries 7,560,000 7,560,000 10,560,000
Market costs 400,000 400,000 500,000
Certificates
printing 120,000 120,000 200,000
Registration form 30,000 30,000 36,000
T-shirts printing 512,000 512,000 672,000
Rent 1,200,000 1,200,000 1,200,000
Total Expenses 9,822,000 9,822,000 13,168,000
Net Profit before
TAX 2,926,000 2,926,000
5,470,000
TAX (30%) 877,800 877,800 1,641,000
Profit after Tax 2,048,200 2,048,200 3,829,000
Appendix I:Business Trade Mark
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