Business Description (Essay Sample)

CHAPTER 1
BUSINESS DESCRIPTION
1 The Sponsor
The name of the sponsor is Hellen Ndirangu. Hellen was in the past employed in Serena Hotel where she works as a chef. This gave her the necessary exposure in the industry which she shall transfer to the business. Hellen is currently pursuing a Higher Diploma in Secretarial Management at the College of Human Resource Management. On top of this she plans to pursue an advanced course in food science which would enable her give the required input to the business apart from the staff that will be employed.
Collectively, to have the business up and running, an estimated Ksh. 1,000,000 will be invested in the business. The amount will be raised from the individual savings (Ksh. 600000) and the remainder (Ksh. 400000) through a loan from a Savings and Credit Cooperative Society.
1.2Business name
The proposed business name is "Eat Healthy Bakers”, which simply means consuming healthy and quality foods, those from the bakery being among them. Eat Healthy Bakers which will be located at Naivas Supermarket at Margaret Plaza, Githurai 45 at the ground floor. The business is scheduled to commence on 1st January 2016. "Eat Healthy" Bakers look forward to be unique suppliers of cakes baked from different ingredients which comprise of Cassava, Yam, Pumpkin and arrow roots among others.
1 Business Location and Address
"Eat Healthy" Bakers will be located at the ground floor of Naivas Supermarket at Githurai 45, Kiambu County.
The reasons for selecting this as the appropriate location include:
There are many residents around the area who will form the anticipated customer base for our products.
There are quite a number of support services around the place for example banks which would offer financial services and advice.
There is no similar business around the place which implies little competition thus we shall exploit the untapped potential in the area.
Infrastructure in the area is well developed thus easy transportation of the products to other places.
The address of the Business will be;
Eat Healthy Bakers
P.O. Box 525333 – 00200
NAIROBI
Email address: hellenabakers@yahoo.com
Website: wwwhellenabakers.co.ke
2 Form of ownership
"Eat Healthy" Bakers will be a sole proprietor. Hellen will be the sole owner of the business. This is because for a beginning and with an idea and plans to expand in future, the business will have the advantages of:
* Quick decision making. Since in sole proprietorship there is only one owner, the decision making will be quick as there will be no delays in consultations as other forms of business organizations.
* No sharing of profit. Profit from the business is only meant for the sole proprietor.
* Direct contact with employees and customers
* Independence. This will enable the sole proprietor to be an own boss
* It will be easy to manage which will make the business to easily expand.
Capital investments
Source

Amount

Percentage

Owners savings

600000

60%

Sacco Loan

400000

40%

Total investment

1000000

100%

3 Product
Eat Healthy Bakers will produce cakes of varying shapes and sizes for customers to choose from.
Some of them will include the following:-
The products from Eat Healthy Bakers will be unique in the following ways:
* They shall be packaged in various quantities branded "Eat Healthy Bakers”.
* They shall retail at cheap and affordable prices. This is because we shall incorporate technology in their production which will subsequently lower the production costs.
* They shall be of different flavors depending on the customer preferences.
4 Industry
Eat Healthy Bakers falls under "Food Industry" more specifically the Baking Sector. The bakery industry is fast growing hence one needs to be aggressive and come up with new innovations in the market in order to win the target group and beyond.
The bakery industry in the area around Kiambu County is not fully exploited. ...