BUSINESS PLAN PROPOSAL

BUSINESS NAME: MWANGAZA COMPUTERS

JUNE 2016

PREPARED BY:

MWANGAZA LIMITED

TANGA

TANZANIA

+255 713 951549

E-mail: mwangazalimited1@gmail.com

Website: www.mwangazalimited.weebly.com

i

MWANGAZA COMPUTERS

FOR:

ii

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

iii

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.

1

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

2

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

3

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

4

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).

5

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.

6

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.

7

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

8

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

9

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

10

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.

11

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

12