Sample Business Plan of a Training Centre

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 AdministrationHuman 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 client’s 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. Naet’s 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.

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1.1 The Sponsor 1.1.1 Owner Background 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.

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1.1.2 The Proposed Ownership Structure Naet Inspire Center will be initially financed through owner’s 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/= 750,000/=

4

X 100%

=

13%

viii) Diagram Projection Fig 1.1 Source of Capital

13% Individual Savings

20%

saccoLoan familyand friends

67%

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.

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Fig 1.2 Map Location of the Proposed Business Marakwet County counsil Hall

Moi Girls Kapsowar

District Educatio n Officers Office

From Eldoret

Kapsowar Boys Secondary School District Commission ers Office

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 youth’s 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 Volume

50, 000 – 100, 000

100,001-350, 000

350, 001 plus

Number of Employees

1-5

6-20

20 plus

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 today’s 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 quality’s 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 don’t 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

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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 institution’s 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 customer’s business scene and the current perspective. Table 2.1: The current business scene Potential Customers A.) Technical Institutions

Population 3

Percentage 9

B.) Tertiary colleges

5

14

C.) Counseling Centers

1

3

D.) Secondary Schools

11

31

15 35

43 100%

E.) Primary schools Total Source: Author 2010

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Figure 2.1 The current business scene

7% 21%

Primary Schools

34%

Secondary Schools Tertiary Colleges Technical Institutions 12%

Counseling Centres 26%

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 A.) Youths from training institution

Population 3,000

Percentage 60

B.) Youths from Secondary Schools

1,500

30

C.) Non youth customers Total Source: Author 2010

500 5,000

10 100%

Figure 2.2: The projected business scene 16

10% Youths from training institution 30%

Youths from Secondary Schools 60%

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 student’s 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 Assets in kshs

NAET Centre Bizna 100,0001-350,000 500,000

Tumaini Centre 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

competitor’s margin considering Naet will deal with consultancy, inspiration and motivation whereby it targets schools, school leavers, collage students and youth’s. 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

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(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

Bizna Institut e

Moi Girls Kapsowar

Marakwet County council Hall

District Education Officers Office

From Eldoret

Kapsowar Boys Secondary School

Tumaini centre

District Commissioner s Office

Marakwet Teachers Sacco Source Author 2010

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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

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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 competitor’s 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 competitor’s 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 channel

4

4

4

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. Competitor’s 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 Company’s 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 Yellow pages Brochures Radio campaigns at local radio

COST (kshs) 5,000 15,000 15,000

Stations Sign boards Caps and T-shirts Total Source Author 2010

10,000 25,000 70,000

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 media’s are widely used in the area and can easily be applied to reach the market. The media’s are also quite affordable and the proprietor’s 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

Teachers, Mentors and Counselors

Administration & HR Manager

Support Staff

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 staff’s 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

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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

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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 30

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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