BUSINESS PLAN

BY
CORNEL RAGEN

NOVEMBER, 2011
CHAPTER ONE

1.0 THE BUSINESS DESCRIPTION

The following document is a business plan of Naet Inspire Centre. It contains details of
the business owner and how the business will be managed. The business is placed under
personal development in the human resource industry. It is aimed at providing an avenue
for talent search and transforming the mindset of young people both in school and out of
school to enable them live beyond their circumstances. It has a great expectation of
facilitating the emergence of informed and motivated youth across the continent .

The center will be profit making venture that will seek to impart knowledge to clients at
the same time seeking to achieve and maintain its objectives. The centre is the brain child
of Mr Chepkurir Kipkemoi a holder of a Master Degree in Business Administration-
Human resource specialization, a Bachelors Degree in Education Counseling and
currently pursuing a professional Higher Diploma in Human Resource management.
Naet is a Kalenjin word that means knowledge. Knowledge is defined by the Oxford
English Dictionary as expertise, and skills acquired by a person through experience or
education; the theoretical or practical understanding of a subject; what is known in a
particular field or in total; facts and information; or awareness or familiarity gained by
experience of a fact or situation. This is what will form the core business of Naet Inspire
Centre.
The proprietor intents to make an entry into the market through collaboration with
training institution with Secondary Schools being source of market by targeting the
school leavers. Growth will be realized through participation on education forums in the
area, regionally and even nationally as this will enable the institution to acquire publicity.
Naet will develop interesting stories to meet teen clients demands; later on radio talks
that are marketable and are up to date with the current trends in the market will be
developed. Market growth Strategies will be developed to help in the expansion and
development of the centre. Naets main goal will be to increase the transition rate in
schools and colleges by providing motivational talks, mentoring teens, listening to their
challenges, initiating volunteer programs and building personal relationship with teens.
1.1 The Sponsor
1.1.1 Owner Background

2
The proprietor is Mr. Musa K. Chepkurui. He is 37 years old and lives at marakwet
district. Currently he works as an education and training officer with Kenya union of
savings and credit co-operatives(kuscco).
Mr Chepkurui who is the owner and director of Naet inspire has a Master of Business
Administration(MBA) Human resource management option and B.ED Counseling both
from Kenya Methodist university. The proprietor acquired the above between the years
2006 -2010. Prior to this the owner had trained as a mechanical engineer to higher
diploma level with Kenya industrial training institute and Eldoret polytechnic
respectively.
He was motivated to go into motivational consultancy after many complaints from the
youth about economic empowerment and career advancement. He started gathering
information and studied the prevailing factors of training opportunities within the district
while serving as personal assistant to the area member of parliament. Besides this the
proprietor conducted several youth meetings and forums while serving both as a personal
assistant and an instructor with kapenguria home craft.
The proprietor will use his knowledge of human relations and counseling to enhance his
customer care management

The center will engage highly trained and experienced motivational speakers and
facilitators who will provide education based on the set programs and a frame work that
will create a high management and quality inspiration that is of value for money.
Experienced personnel will be brought on board to execute the program activities. This
will be an added team to the proprietor as he carries on the administrative duties of the
centre.

1.1.2 The Proposed Ownership Structure

3
Naet Inspire Center will be initially financed through owners savings of ksh 500,000 and
Sacco loan of ksh 150,000. This is because sacco offers low interest on loan and the
repayment period can be negotiated depending on the circumstances. Bank loan can also
apply if there is urgent need. Family and friends contributions will be ksh 100,000. This
will be used in the entire business finance plan and budget.
Loan calculation
Principle - 150,000/36 =4,166/= per month

Interest -1500000 x 10% x 1/12 =1,250/=

Monthly remittance to the sacco =4,166/= +1,250 /= =5,416/=

Break down of capital (kshs)

i.) Individual Savings 500, 000/=
ii.) Sacco Loan 150, 000/=
iii.) Family and friends 100, 000/=
Totals 750, 000 /=

Ownership in percentage

Individual Savings 500, 000/= X 100% = 67%

750,000 /=

Sacco Loan 150, 000/= X 100% = 20%

750, 000/=

Family and friends 100, 000/= X 100% = 13%

750,000/=

viii) Diagram Projection

4
 Fig 1.1 Source of Capital

13%
20%
67%
Individual Savings saccoLoan familyand friends

Source: Author 2010

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1.2 THE BUSINESS
1.2.1 Description of the Business
The business name will be Naet Inspire Centre. Naet as earlier stated is a Kalenjin
word that means knowledge. Naet Inspire Centre looks at setting up an administrative
center at a rental space that will work out initial arrangements of the plan. The start
period is projected for the year 2012 in January.

The business will be a sole proprietorship at its initial stages in order to facilitate a faster
initiation process. The many advantages are; less legal requirements making it easy to set
up, quick and easy decision making, high contact hours with customers and employees
make it easy to discover customer needs and employee concerns which translate to
client confidence and loyalty. The main activity is to create awareness through training,
career coaching, education and other development programs for alternative livelihoods.
Out of the awareness creation many will gain insight that will enable many people use
their potentials. With this the principal customers will include the secondary school
leavers, residence of kapsowar area, business people and teachers.

1.2.2 Description of the Business Location

Naet inspire office and other support facilities will be on the first floor of marakwet
teachers sacco plaza in kapsowar town a prime section of a fast growing rural urban
center with schools, shopping centers, entertainment spots etc. The centre location is
designed for high volume of business the whole year round, with revenues and profits to
match.
The prestigious modern building is a selling point in itself. Teachers often run many of
their activities within the premises and they take progressive information and report to
their schools and villages
The facility is served with a reliable public transport and an ample parking with
maximum security throughout. The choice of the location is informed by cheap cost of
operations given that rent, clean piped water, electricity and other overheads are relatively
affordable.

6
 Fig 1.2 Map Location of the Proposed Business
Marakwet County counsil Hall Moi Girls Kapsowar

District Education Officers O

From Eldoret

District Commissioners Off

Marakwet
Teachers
Sacco Plaza

Source: Author 2010

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1.2.3 Justification for the Need of Business Venture
Naet inspire shall be located at a place where a centre of its kind does not exist. A gap
exists in the sense that there are many high schools around the place and the population is
large. School leavers chart their own way through trial and error while some who travel
to other downs like Eldoret 180 km away from kapsowar incur a lot of costs.
This part of kapsowar is an upcoming place in population and business activities hence
demand for motivation and inspiration arise every other day. This pitch the centre at a
win situation as it stands to contribute in the realization of an enhanced human resource.

The government policy direction is very positive and encouraging for Naet. According to
vision 2030 the government blue print document to guide the country till 2030 education
is one of the 8 social pillars for prosperous Kenya. The vision 2030 lists five major
challenges in education that Naet inspire sees as an opportunity. Naet will respond to
some of these challenges by improving the transition rates from secondary to tertiary
levels. The most daunting challenge among these is to create a cohesive society imbued
with culture of hard work, efficiency and one that values transparency and accountability
respecting the rule of law and great concern with the environment.
Using mentorship, motivational speaking and edutainment, Naet is positioning itself to
begin this task of improving the transition rates in high school and building the values of
future Kenya by helping teens acquire modern skills for global competition.
The contribution of this centre to the local community shall be that those who are unable
to travel to other towns for such services shall be served. Employment opportunities
especially for office administrators and logistic officer who maintains the facility will be
of great economic empowerment.

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1.3 THE INDUSTRY
1.3.1 The Size of the Industry

The business is placed under the education industry where it seeks to impart knowledge
and skills development in the said area.
It deals with consultancy, inspiration and motivation whereby it targets schools, school
leavers, collage students and youths in general

The business major area of focus is in human resource practices which is very wide, and
inspiration and motivation are some of the areas of development.

1.3.2 Key Characteristics of the Industry

The proposed venture is not well developed in the area as most educational venture are
primary schools and secondary schools with a few collages. This makes it justifiable for
this type of business.
The proposed business will be in the motivational speaking in human resource. It will be
labor intensive and utilizing sophisticated technology such as overhead projectors and
computers. The average number of number of employees will be twenty personnel.

Table 1.1
Details Small Medium Large

Assets (kshs) 1- 100,000 100,0001-350,000 350,001 plus

Annual Sales 50, 000 100, 000 100,001-350, 000 350, 001 plus
Volume

Number of 1-5 6-20 20 plus

Employees

Table 1:1 Size of Firm in the Industry

Source Author 2012

The business is considered to be in the medium size category. This is defined in todays
thresholds in terms of employment, turnover and assets. It will also incorporate a

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reasonable amount of flexibility around year-to-year changes hence the business qualitys
as medium size.

Basically the business will require labtop.projector and flipchart.

There is no immediate competition in the vicinity save for the ones at Eldoret town
180km away. However guiding and counseling departments in schools, churches, and
groups that give mentorship services in schools can be considered competitors.
The business will experience some fluctuations in its activities especially on the early
part of the year. Most customers commit most of their resources to paying school fees and
farm inputs since the business area is an agricultural zone.

Among other seasonal factors are political dynamics, hypertarbulent socio-economic

activities, legislation and technological shifts which may negatively affect the market
even though they are the source of the major issues that the centre is poised to handle.

1.3.3 The Industry Trends and Prospects

This is an industry with unlimited potential in both personal and corporate development.
Motivational speaking has come about because of the realization that people have great
potential beyond their areas of training and specialization and more so the shrinking wide
color market
The introduction of the free 8.4.4 system of education and the 2003 policy of free
primary education by the Narc Government, education sector has grown with increased
number of education centers and joint collaborations among learning institutions
becoming the norm. The numbers of graduates from such institutions have been tripling
every year. And they are released to the job market with few skills to allow them navigate
through the shrinked market. In the other hand the transition rates from one level of
education to the other is also affected because of the limitation of infrastructure. Such
mismatches have left many youths to miss training opportunities hence becoming
pessimistic and hopeless. However people need somebody to motivate them to be
creative to enable them operate above prevailing challenges

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Growth in the industry is very progressive especially in training institutions and business
organizations. Motivational books and inspirational literature are in the rise both in the
print and electronic media. Organizations and individuals invest in motivational
workshops unlike in the past. From general observation motivational forums have
become popular in the recent past by attracting a high number of participants.

With the coming of internet technology learning has been made easier since learning can
be done online, there is development of ICT related courses and research work has been
made easier due to availability of online data.
Scholarly articles and journals with varied opinions can be shared widely and very fast
electronically making the industry operations very convenient. Communication and
decision making is very affordable because of the cheep on line internet services safe for
starters.
Competition is not intense as demand is high and the available institutions that offer such
services dont meet the demand as a lot of school levers are left to seek other alternatives.

1.4 THE PRODUCT.

This is service industry which deals with personal development. The services are
intangible, Howe ever the results have far reaching impact on the production and general
life, of students, school leavers and youth in the business community.
The quality of the product is determined by the person delivering the message. This mans
it is affected by the persons communication skills, presentation skills, scope of
knowledge and experience.
The business will be dealing with inspirational and motivational services which
empowers the youth in many areas of life which include talent search, career coaching
guidance and counseling management programs and other alternatives to livelihoods
Naet Inspire Centre will seek to provide quality inspirational and educational materials
that are comprehensive and conclusive.
The services offered in the centre will reduce cases of school dropouts and school leavers
will be equipped with skills that will make them make well informed decisions about

11
their lives. As a result an empowered society will be realized, this is an enabling
environment for all to invest.
Naet will be using a unique model organized into three impact groups. These impact
groups are:
Teen leaders. These are the people who will be involved in managing and leading in
Naet .
Teen angles. These are the people who provide wings to the Naet business or cause
Teen mentors .These are the people who provide shoulders and reach out to teens.
This model will give the business an advantage over other competitors.

1.5 ENTRY AND GROWTH STRATEGY

1.5.1 The entry Strategy

Naet Inspire Centre will use a strategy of total quality in services. The institutions
promise is in its location, the services offered as well the people attraction and the
atmosphere to be created.

To capture a high market share Naet will embark on use of business cards which contain
necessary details of the centre. Also it will adopt a policy of affordable fee and
installments as this will allow customers draw services at their ability and become loyal
to Naet

The centre will have no major competitor based on its location; however marketing
strategies will be developed to pursue customers. The centre will develop career
counseling programmes with secondary institutions in the area and in the region to help
tap the post secondary levers. These will serve as promotional programs.

Launch marketing will be carried out to promote awareness, build immediate traffic and
establish a brand image via several methods: which include local print broadcast media,
free counseling day and desirable centre ambiance.

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1.5.2 The Growth Strategy

The location is a prototype of future sites. The set up is one that will offer key element in
a successful operation.

Since the business is in its startup stage the owner holds the believe that the centre will be
successful because human beings from widespread regions regardless of racial divisions
and social caliber direly and constantly need useful life skills to win a way through in
order to face and subdue existing and emerging obstacles evident in the world of today.
This explains why the services are most likely to attract the attention of targeted
customers

As part of future plans the proprietor intents to involve the community in most of its
programs making it an integral part of the local and world community. This will generate
goodwill; create opportunities to forge important contacts with key people.

In order to attend to wider scope of clientele the proprietor will set up a branch office
strategically at Eldoret town as part of its expansion strategy.
At the long term the centre will acquire its own plot and build own offices and conference
hall for holding seminars so that it cut down expenditure on rent.
The centre will invest on research and development to enhance programs with market
demand and tailor make courses for businesses and corporate institutions regionally.

1.6 THE BUSINESS GOALS

1.6.1 Short term goals
To satisfy the unsatisfied inspirational demands by the first year
To increase the service range to cover a wider market segment by 2013
Create employment by 2014
To engage high skilled motivational speakers.
Profit maximization by 2013

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1.6.2 Long term goals
To be the market leader in the region by the year 2015.
To open branches outside kapsowar in next five years.
To acquire a land and put up the business premise to reduce expenditure on rent
by 2022
To be the best inspirational centre in Kenya and east Africa in the first five years.
Have a well equipped and serviced ICT centre

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 CHAPTER TWO

2.0 THE MARKETING PLAN

The market plan forms the second part of this document. It seeks to address the situation
and plans within the marketing part of Naet inspire center. The market plan discusses the
potential customer perspective, the market size, competition, the pricing strategy, sales
statistics, advertising strategy, distribution assumption and methods of promotion.
2.1 POTENTIAL CUSTOMERS

2.2.1 Description of potential customers

Since the proprietor intents to make an entry into the market through collaboration with
training institution and Secondary Schools being source of market by targeting the school
leavers, the customers are classified as youths and teenagers.

The customers are considered to be at an age that really needs inspiration and motivation
as they seek to make carrier choices in life. The customers fall in the age bracket nineteen
years to thirty years. The customers are considered to be students and will largely depend
on their parents or guardians to contribute for there service acquisition at Naet inspiration
center. Other categories might compose of teachers in the area in need to upgrade there
skills and knowledge and grown ups of diverse background seeking some inspiration be it
in life or in business perspective. The tables 2.1 and 2.2 below show the presentation on a
projected perspective of the customers business scene and the current perspective.

Table 2.1: The current business scene

Potential Customers Population Percentage
A.) Technical Institutions 3 9
B.) Tertiary colleges 5 14
C.) Counseling Centers 1 3
D.) Secondary Schools 11 31
E.) Primary schools 15 43
Total 35 100%
Source: Author 2010

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Figure 2.1 The current business scene

7%
Primary Schools 21%
Secondary Schools 35%
Tertiary Colleges Technical Institutions

12%
26%

Counseling Centres

Source: Author 2010

According to the table 2.1 above and figure 2.1 on the current business scene the region
under the proposed business has a total of 35 learning institutions, out of the 35 (43%) the
highest representation is of the primary schools composed of 15 institutions, others are
Secondary Schools 31%, Tertiary colleges 14%, Technical Institutions 9% and
Counseling Centers 3% respectively.

Table 2.2: The projected business scene

Potential Customers Population Percentage
A.) Youths from training institution 3,000 60
B.) Youths from Secondary Schools 1,500 30
C.) Non youth customers 500 10
Total 5,000 100%
Source: Author 2010

Figure 2.2: The projected business scene

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 10%

30%
60%
Youths from training institution Youths from Secondary Schools Non youth customers

Source: Author 2010

The table 2.1 above indicates the projected business scene which composes of Youths
from training institution, Youths from Secondary Schools and the Non youth customers.
It is observed that with the high number of school leavers and graduates from collages
and technical institutions the population is out to seek for education /services that are
consistent, affordable and those that are conclusive to much there demand.

Naet inspire center will seek to have its services offered at different schedules to meet the
customers demands. The institution will run classes during the week and over the
weekend where time schedules will be of morning sessions, afternoon, evenings and
those that run through the weekends.

Sessions are proposed to run on quarterly basis that will form up a session of three moths
where a test session will be conducted to gauge the students level of learning. The
services will be purchased on 60% payments of the proposed service and the balance paid
installments over the contracted period.

2.1.2 The Market Size

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The actual school going figure according to the area education district officers as per the
2009 2010 figures estimation is of 5000 students at the primary and secondary level.
The proprietor intents to make an entry into the market through collaboration with
training institution with Secondary Schools being source of market by targeting the
school leavers.

The business is placed under the education industry where it seeks to impart knowledge
and skills development in the said area. Within this industry in the stated area there are 35
learning institutions in from primary level to the collage level. Immediate competitors
can be considered to be the technical institutions considered to be taking 50% of the
market share, counseling centers 10% of the market share and the mushrooming tertiary
colleges about 20% of the market share. Below is an illustration of some of the known
and well established competitors.

Table 2.3 Market Classification

NAET Centre Bizna Tumaini Centre
Assets in kshs 100,0001-350,000 500,000 700,000

Sales Volume 100,001-350, 000 400,000 800,000

No of employees 6-20 20 35

Source: Author 2012

The figure represented under Naet centre in the table 2.3 above indicates the projected
amount on assets, sales volume and the expected number of employees.
The size is considered to be favorable considering the services offered by the
competitors. The projected amount to be put in service to this plan will meet the
competitors margin considering Naet will deal with consultancy, inspiration and
motivation whereby it targets schools, school leavers, collage students and youths.
Considerations are also made to established individuals or grown-ups who might be in
need of such services. Estimation is made that Youths from training institution
comprising of 3000 (60%) will need our services, Youths from Secondary Schools 1500

18
 (30%) and Non youth customers 500 (10%) would be in a position to need our services.
To this estimation is made of at least 20% of the current market population.

2.2 THE COMPETITION

2.2.1 Potential Competitors
The competitors can be seen to come from the side of Technical Institutions, Tertiary
colleges and Counseling Centers in the area who might up grade there services to
accommodate what is to be offered by Naet centre. In the area of operation Bizna and
Tumaini Centre can be named to be the immediate competitors.

Figure 2.3 Map Location of the Potential Competitors

council Hall Moi Girls Kapsowar

Bizna Institute

District Education Officers Off

From Eldoret

Tumaini centre

District Commissioners Offic

Marakwet Teachers Sacco

Source Author 2010

19
The two major competitors are within the main road link from the Edoret town and can
easily be accessed or seen from the main road as illustrated in the figure 2.3 above. This
proves to be and advantage considering the two are nearer to Kapsowar Boys Secondary
School. Umaini centre is considered to be a big institution considering the nature if
services it offers and its clientele base. Bizna Institute is a small institution seeking to
grow its operations and services offered. To take on the advantage of the two stated
institutions, Naet inspire office and other support facilities will be on the first floor of
Marakwet teachers sacco plaza in Kapsowar town a prime section of a fast growing rural
urban center with schools, shopping centers, entertainment spots etc.

The centre location is designed for high volume of business the whole year round, with
revenues and profits to match. The prestigious modern building is a selling point in itself.
Teachers often run many of their activities within the premises and they take progressive
information and report to their schools and villages

The facility is served with a reliable public transport and an ample parking with
maximum security throughout. The choice of the location is informed by cheap cost of
operations given that rent, clean piped water, electricity and other overheads are relatively
affordable.

2.2.2 Comparison of the proposed products and with those of the potential
competitors.

Naet Inspire Centre will seek to provide quality inspirational and educational materials
that are comprehensive and conclusive. The business will be dealing with inspirational
and motivational services which empowers the youth in many areas of life which include
talent search, career coaching guidance and counseling management programs and other
alternatives to livelihoods
The services offered in the centre will reduce cases of school dropouts and school leavers
will be equipped with skills that will make them make well informed decisions about
their lives. The services will ensure better and high performance standards, of quality,
good reputation, an after sales service that will seek to ensure what is learnt is being

20
utilized well. This is made in a comparison below in table 2.4. Naet services have a
competitive advantage that will lead to an empowered society and an enabling
environment for all to invest.

Table 2.4 Comparison of products

Indicators Bizna Institute Tumaini centre Others

Performance 4 5 3

Quality 3 4 2

Reputation 3 4 3

After sales service 1 1 1

Total 11 13 9

Key: 1. Very Low 2. Low 3. Moderate 4.High 5. Very High

Source Author 2010

2.2.3 Description of Overall strength

Of the two major competitors they do strive to realize performance of out put as it is
noted that allot of investment is put to ensure better performance. The competitors
reputation is not all that good since there is no after sales service to ensure what is learnt
is well utilized. To this extent Naet will offer in collaboration with organizations in the
area and out at towns like Eldoret to provide Job shadows and attachments.
Another weakness could be in terms of competitors level of technology realization
which is at a low rating considering students search for technological related services
within the business and market centers at Marakwet. In terms of Location the competitors
are well placed, management is also moderately well managed distribution chain as per
the courses on offer can be said to be high since there is demand for learning based
institutions in the area. This is further stated in table 2.5.

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Table 2.5 Comparison of products

Indicators Bizna Institute Tumaini centre Others

Technology 2 3 3

Location 5 5 3

Management 3 3 3

Distribution 4 4 4
channel

Total 14 15 13

Key: 1. Very Low 2. Low 3. Moderate 4.High 5. Very High

Source Author 2010

In relation to the stated strengths and weakness amongst the two major competitors, Naet
will ensure it employees well equipped/ knowledge and transparent leadership into the
centre, Invest heavily on ICT, come up with a satellite centre at Eldoret town to curb the
rural urban migration. Naet will also ensure it has a well informed sales team that will
drive the centers sales at a continuous growth level.

2.3 THE PRICING STRATEGY

The pricing strategy for Naet services will be based on exploiting its strengths/advantage
over the competitors. The competitors are likely to continue charging high rates for the
services but Naet will equip it self for realization of growing numbers at each quarter.

Based on the number of heads per trainer the centre will come up with fees that are
justifiable. Competitors prices will also be studied and the nature of services they offer
and the duration they offer such services. The customers who have stayed longer in the
institution will incur some discounts in cost of systems and services on offer. The
Institution will come up with a credit policy based on the duration, performance, payment
pattern and a packaged passed policy.

2.4 SALES TACTICS

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Naet founders recognize that to achieve the Companys revenue objectives, they have to
successfully convince on the advantages of services on offer.
Each member of the top management team is going to play a leading role in exploring
and finding new markets through personal selling. Negotiating skills to close long-term
business deals with learning institution will be considered. Thus the Sales team will be
composed of the centers staff and with time use the graduates to share on there
experience to others who could be posing as potential clients
To start with the centre will consider marketing within Marakwet area and later to Eldoret
Town. The centre will work on an effective promotional campaign to accomplish through
primary objectives as:
Attract a quality workforce that has a desire to be successful
Attract customers who are constantly looking at knowledge and
empowerment

2.5 ADVERTISING AND PROMOTION STRATEGY

2.5.1 Advertising Strategy
The Center will use the following medias and promotion tools to advertise and ensure the
center gain considerable recognition:
o Yellow pages
o Brochures The objective of brochures is to portray goals as an
attractive functionality
o Radio campaigns in local FM stations
o Caps and T-shirts
o Signs located strategically throughout Eldoret and Marakwet environs
o Word of mouth from satisfied customers

The following are the projected monthly costs of advertising campaigns .The advertising
costs are variable in nature as not all areas of advertising are to be incurred on a monthly
basis.

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The effectiveness measured through the enrollment numbers. Within the application form
a column will be developed to gather information on how the client/student obtained
information about the center.

Table 2.5 The Projected Monthly Costs of Advertising Campaigns

ITEM COST (kshs)
Yellow pages 5,000
Brochures 15,000
Radio campaigns at local radio 15,000
Stations

Sign boards 10,000

Caps and T-shirts 25,000
Total 70,000
Source Author 2010

2.5.2 Methods of Promotion

The company will develop a marketing campaign tools that will conform to its marketing
strategies. The tools are those that can easily be target customers and even the untargeted
one who can get convinced in the process.

Medias such as electronic, print and exhibitions will be employed to ensure the entire
target and the potential customers are attained and well address. The proposed medias
are widely used in the area and can easily be applied to reach the market. The medias are
also quite affordable and the proprietors can meet it.

Other medias and channels will also be explored at to determine the viability and the
level of effectiveness.

The effectiveness of the proposed media will be measured through the enrollment
numbers. Within the application form a column will be developed to gather information
on how the client/student obtained information about the center.

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 CHAPTER THREE
3.0 THE ORGANISATION PLAN
3.1 THE ORGANISATION STRUCTURE

Figure 3.1 Organisation Chart

Board of Directors

Managing Directors

Teaching Staffs Manager Finance Manager Administration & HR Manager

Teachers, Mentors and Support Staff

Counselors

Source Author 2010

The centre is the brain child of Mr Chepkurir Kipkemoi a holder of a Master Degree in
Business Administration-Human resource specialization, a Bachelors Degree in
Education Counseling and currently pursuing a professional Higher Diploma in Human
Resource management. Mr Chepkurir Kipkemoi will be the Managing Directors of the
Centre and will also seat in the centers BOD. The BOD will comprise of the proprietor
and the collaborators among the training institution representatives that will be targeted
and invited to own shares in the center.

Operations will conducted by the finance manager in charge of financial matters,

administration and human resource manager dealing with labour issues and the
management of the administrative functions in the center, he or she will have support
staff to help in smooth services operations in the center. Teaching staffs manager will be
head of curriculum and teaching supervision with the help of teachers and mentors under
him or her.

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 3.2 THE MANAGEMENT TEAM

3.2.1 The Managing Director

o Responsible for provision of overall guidance and leadership of the staff

o Create relationships with our clients
o Analyzes market and economic conditions to forecast prospective clients
o Establish & implement short and long term organizational goals, objectives, policies
and operational procedures
o To monitor and evaluate the centers effectiveness
o To effect changes required for improvement of services
o To review the systems and procedures of the operations of Naet Inspire Center
o To ensure operations and services are in line with the changes in the external
environment
o Organize for presentations to the BOD and seek strategic advise from the BOD

3.2.2 Finance Manager

o Provide financial services to the center

o Collect money on behalf of the center

o Make payments on behalf of the center

o Proper recording and keeping of accounts books

o Work with external Auditors

o Present financial reports to the BOD through the MD

o Implement budget provisions

o Advice the BOD and the MD on financial matters

o Organize and advertise marketing matters with the entire management team

26
3.2.3 Administration & HR Manager

o Promote the spirit of team work among employees

o Provide lead responsibility for maintaining developing and improving office
practices and procedures
o Undertakes Human Resource Planning
o Prepares the budget for general office administration and distribution of petty cash
o Ensure a good leaning atmosphere prevails
o Organize and advertise marketing matters with the entire management team
o Support administrative facilities and staff including staff development
o Management of HR matters, including staff training and development
o Directs and coordinates activities of personnel involved in marketing and the
support staff
o Seats in the interview panel
o Terminates employment of teaching staff with consultation from the teaching
manager and the MD
o Directs compliance of staff with established centre policies, procedures and
standards such as safe keeping of Company funds and property, personnel and
grievance practices

3.2.4 Teaching Staffs Manager

o In charge of curriculum planning

o Teacher supervision

o Head of examinations

o Seats in the interview panel

o Participate in promotion tools preparations

o Advise the MD on curriculum developments

o Address student and teacher issues

o Carry out teacher training planning with the HR department

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3.2.5 Teachers, Mentors and Counselors

o Provide teaching services

o Mentor the students

o Invigilation

o Participate in syllabus development

o Act as a link between students and the management

o Implement the management directives

3.2.6 Support Staffs

o Ensure cleanliness on the center

o Act as a messenger
o Cleaning of the lorry
o Buying of stationery with the assistance of administration manager
o Performing other duties as may be assigned from time to time
o Maintaining the centre assets

Table 3.1 The Entire Personnel Remuneration

Designation Remuneration (kshs)

The Managing Director 50,000

Finance Manager 35,000

Administration & HR Manager 30,000

Teaching Staffs Manager 30,000

Teachers, Mentors and Counselors 20,000

Support Staffs 10,000

Totals 175,000

Source Author 2010

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 3.3.2 Evaluation and Development of Employees

Naet has developed a clear written recruitment policy and an evaluation policy. The
policy offers guidelines to be followed in this important exercise.

a) It is the policy of the Center to ensure that there is no discrimination in recruitment

and appraisals based on gender, tribe, race or nationality.
b) The recruitment exercise is to be conducted officially and effectively putting into
consideration the time taken and cost factors
c) All applicants must be long listed as soon as their applications are received
d) Applicants who fail to meet application deadlines are to be considered
e) Whenever a vacancy arises, internal applicants are given first priority before
considering external applicants. Before the final selection of the applicants, they
must undergo a complete selection process.
f) Recruitment advertisements must contain detailed job descriptions and personnel
specifications.

Evaluation is to be conducted quarterly and marks awarded for a yearly grading

arrangements. Those will excel in their duties and performances are entitled to salary
increments and bonuses as the BOD sees suitable.

On training the employees are placed on the job training until a time when they can work
on their own. The training is suitable as business operations continue parallel with
training. The budget for training for the first year of operation is Ksh. 70,000.

Training Policy

1. 20% of the salary is paid by all employees

2. All employees must be given equal training opportunities

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3.3 SUPPORT SERVICES

Bankers Equity Bank Marakwet Branch

P.O.Box 565 Eldoret

Advocates Koech & Sang Company Advocates

P.O.Box 681 Eldoret

Insurance Amaco Insurance

P.O.Box 917 Eldoret

Business Advisor Center for Research & Management Africa

P.O.Box 28189 00200 Nairobi

View Park Towers

Postal Services Kapsowor Postal Office

P.O.Box 40 Kapsowor

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 CHAPTER FOUR

4.0 THE OPERATIONAL PLAN

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