UGANDA MARTYRS UNIVERSITY RUBAGA
FACULTY OF BUSINESS ADMINISTRATION AND
MANAGEMENT.
ENTREPRENUERSHIP EDUCATION: BUSINESS PLAN
BY
KASUJJA ALEXANDER
2013-B021-20022
A BUSINESS PLAN SUBMITTED TO THE FACULTY OF BUSINESS
ADMINISTRATION AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR AWARD OF A BACHELOR’S DEGREE
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Table of Contents
1. Cover page …………………………………………………………………………………………………………………………..4
2. The venture ………………………………………………………………………………………………………………………….5
Legal form and ownership …………………………………………………………………………………………………….5
Claims and ownership …………………………………………………………………………………………………………..5
Vision statement …………………………………………………………………………………………………………………..5
Mission statement ………………………………………………………………………………………………………………..5
Business goals ……………………………………………………………………………………………………………………….6
The opportunity …………………………………………………………………………………………………………………….6
Business concept …………………………………………………………………………………………………………………..6
Entrepreneurs’ and mangers’ profile …………………………………………………………………………………….7
Location of the business ………………………………………………………………………………………………………11
Map …………………………………………………………………………………………………………………………………….11
Brief history …………………………………………………………………………………………………………………….….12
Business size ……………………………………………………………………………………………………………………….12
3. Environmental analysis and competitive strategy ……………………………………………………………12
Customer analysis ……………………………………………………………………………………………………………….12
Market segmentation ………………………………………………………………………………………………………….13
Industry analysis ………………………………………………………………………………………………………………….13
Key success factors ………………………………………………………………………………………………………………14
Competitors …………………………………………………………………………………………………………………………14
SWOT analysis ……………………………………………………………………………………………………………………..17
PEST analysis ………………………………………………………………………………………………..........................19
Competitive strategy ……………………………………………………………………………………………………………21
4. Marketing plan …………………………………………………………………………………………………………….........22
Marketing objectives ……………………………………………………………………………………………………………23
Targeting and positioning strategy ……………………………………………………………………………………….23
Product strategies ………………………………………………………………………………………………………………..24
Pricing strategies ………………………………………………………………………………………………………………….24
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Promotional strategies …………………………………………………………………………………………………………24
Distribution strategies ………………………………………………………………………………………………………….25
5. Production / operations plan ………………………………………………………………………………………………26
Operational objectives ………………………………………………………………………………………………………….26
Description of the operation system …………………………………………………………………………………….26
Physical layout ……………………………………………………………………………………………………………………..29
Output ………………………………………………………………………………………………………………………………….30
Location ………………………………………………………………………………………………………………………………..31
Description of the approach to quality ………………………………………………………………………………….31
Description of the inventory management approach ……………………………………………………………32
6. Organizational and human resource plan …………………………………………………………………………….32
Organizational structure ……………………………………………………………………………………………………….32
Job descriptions and specifications ……………………………………………………………………………………….33
Description of the outsourced services …………………………………………………………………………………34
Recruitment ………………………………………………………………………………………………………………………….34
Training and staff development ……………………………………………………………………………………………34
7.
Financial plan ………………………………………………………………………………………………………………………35
Projected revenue and revenue budget ………………………………………………………………………………..35
Projected capital budget and expenditure …………………………………………………………………………….36
Projected materials budget …………………………………………………………………………………………………..36
Projected labor budget ……………………………………………………………………………………………………..….37
Proforma profit and loss statement ………………………………………………………………………………………38
Proforma balance sheet ………………………………………………………………………………………………………..39
Proforma cash flow statement ……………………………………………………………………….……………………..41
8. Executive summary ……………………………………………………………………………………………………………….42
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BEACON BRICK WORKS (U) Ltd
“We are here for you”
Located in Kayunga, Wakiso town council
P.O Box 714, Kampala
KASUJJA ALEXANDER
KISAALU GAD BRIAN
Mob: 0700727170/0782727170
Mob: 0701245510
Tel: 0414531700
Tel: 0414078256
P.O Box 714, Kampala
P.O Box 714, Kampala
Email: alecku254@yahoo.com
Email: gad256@gmail.com
Beacon brick works Uganda is a business dealing in the production and
supply of all types of brick works ranging from soil, clay and cement
construction bricks, pavers of all types, roofing tiles of all types, ventilation
bricks, maxpans, quarry floor tiles and any other type depending on the
client’s order
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2. The Venture
The real estate business is not entirely a new concept in Uganda. It has been around for quite some
time now. Its presence has also favoured the rise of new business ideas which include, landscaping,
construction companies, hardware shops, materials manufacturing companies among others. There
are a number of firms dealing in the production of materials used in construction, these include;
cement manufacturing companies, iron sheets manufacturing companies, plastics manufacturing
companies and bricks manufacturing companies. Among these companies is where Beacon Brick
Works Uganda falls.
Legal form and ownership
Beacon Brick Works Uganda will be a partnership form of business producing all types and forms
of brick works and other construction items ranging from; soil, clay and cement construction
bricks, ventilation bricks, roofing tiles of all types, half bricks, pavers, partitioning bricks, pavers,
floor tiles, manhole covers among others. A partnership deed will be attached to guide on how the
business will be operated i.e. how profits and losses of the business will be shared by the owners.
We also have the permission and have a trading license from Kampala Capital City Authority to
operate in Kampala.
Uganda as a nation has seen the growth of the real estate business in the past say ten years as the
demand of houses increases. This demand can be attributed to the rising levels of income among
the population and the desire to improve the standards of living. The demand for housing has also
in turn facilitated the increase in demand for building material and equipment such as bricks, iron
sheets, tiles, sand, and cement among others. This is the reason as to why we are in business, to
satisfy this increasing demand for mainly brick works and other materials of such a nature.
Claims and ownership
Beacon Brick Works Uganda is a partnership form of business which will be owned by two
individuals that’s to say Kasujja Alexander owing 70% of the business and Kisaalu Gad Brian
owning 30% of the business.
Vision statement
To not only be the best producer of brick works in Uganda but also to be the ultimate choice for
Ugandans.
Mission statement
We exist to produce the best quality brick works that are strong and at affordable prices.
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Business goals



To produce high quality products and in a wide variety. We do believe in offering our
customers with value for their money and one of the ways of ensuring this is by offering
them quality products.
To maximise profits and minimise costs in the long run. Just like any other business, we
also in business to make profits and to achieve this, costs have to be reduced.
To build and maintain a good image for our business. Growth of a business will in most
cases be attributed to the good image of that business. We do have future plans for Beacon
Brick Works Uganda and maintaining a good image will facilitate the growth of the
business until so that the future plans are implemented.
The opportunity
There are current a few renowned players in this market namely; Uganda clays, Lweza clays,
Katende brick works and quite a big number of small scale and unregistered players. The renowned
players such as Uganda clays and Lweza clays mainly specialise in exclusively clay products such
as tiles. The other recognised producer is Katende brick works which is located along Masaka road
away from the city centre.
All these conditions present an opportunity for Beacon Brick Works Uganda to penetrate through
the market. This will be done through producing a variety of products using clay, cement, sand
and soil. On top of that, Beacon Brick Works Uganda will be set up on the suburbs of the capital
in Kayunga Wakiso district.
Business concept
Beacon Brick Works Uganda comes at a time when Uganda is registering an increase in the real
estate business which is causing a high demand for building and construction materials. We will
take advantage of this situation by producing high quality and strong works which are affordable
and easily accessible by customers.
Beacon Brick Works Uganda will produce each and every product with care and giving attention
to every single detail so as to produce a long lasting product and one to be proud of. With our
dedicated team of professionals and state of the art technology, this will be possible.
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Entrepreneurs’ and managers’ profile
Name: Kasujja Alexander
Mob: 0700727170/0782727170
Address: P.O Box 714, Kampala
Email: alecku254@yahoo.com
Education background
After completing Uganda Advanced Certificate of Education at Mengo Senior School, he joined
Uganda Martyrs University and pursued a bachelor’s degree in Business Administration and
Management.
He currently holds a bachelor’s degree from Uganda Martyrs University in business administration
and management. He majored in procurement and supply and also holds an ACCA certificate from
Uganda Management Institute.
Working experience
He has a wide experience in the business sector and also in the construction sector having worked
with National Housing Uganda a company that deals in developing land and real estate as the chief
procurement officer for two years and with Genuine property dealers another company that deals
in real estate as an accountant for three years.
He has also had the pleasure to work on contract for a year and a half with Uganda Clays Ltd as
an operations manager.
He is also working as a private consultant helping out with private real estate developers and a few
companies advising them on which deals and investments to consider and what the right prices
would be for such deals in as far as real construction is concerned.
Strengths
He has good management skills having worked in a few sensitive positions in various companies
throughout his career.
He also has remarkable inter personal skills and is good at working as a team. This is evidenced
by the results he achieved as team leader while working with National Housing Uganda.
He has good leadership skills which he exhibited during the time he worked as the operations
manager with Uganda Clays Ltd. During this time, he led the whole operations team and was loved
by the employees and used to deliver quality work to his superiors and in a timely manner.
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Name: Kisaalu Gad Brian
Mob: 0701245510
Address: P.O Box 714, Kampala
Email: kisagad256@gmail.com
Education background
He holds a Uganda Advanced Certificate of Education from Kiira College Butiki after which he
joined the prestigious Makerere University to pursue a bachelor’s degree in Architecture.
He currently holds a bachelor’s degree in architecture from Makerere University. He also has in
his possession a certificate from the Uganda Architectures’ board an organisation which regulates
architectural work in the country.
He is currently pursuing a master’s degree in Business administration and management at Ndejje
University (Kampala campus).
Working experience
He worked with Alkright estates for three years as the chief architect during the development of
their Lubowa estate along Entebbe road. He was heading the team that drew the plan for this whole
project.
He later joined Arab contractors a company involved mainly in the construction business. It has
worked on projects such as the construction of the new school of technology in Makerere
University. Here he worked as an architect and the client relations manager.
He is currently working under the Uganda government with the Ministry of Housing and Urban
Development where he is working as an architect and consultant on related issues.
He is also writing a book titled “Real Estate in Uganda” which guides readers how to go about in
this industry.
Strengths
He has good interpersonal skills. He relates easily with his fellow workmates, subordinates,
superiors and also clients. This is witnessed by his achievements as the client relations manager
during his time working with Arab contractors limited.
He has good time management skills and is efficient. He will deliver when he promised he would
and is good at time keeping. He used to be the time keeper in almost all meetings that he was
present in while still working with Alkright estates.
He also has problem solving skills. His superiors in Alkright estates praise him for having the
highest problem solving skills and one who will get a solution to any kind of problem even for
those outside his area of speciality.
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Name: Magala Yasin
Mob: 0701521478/073256890
Address: P.O Box 256, Kampala
Email: yasinmagala02@ymail.com
Education background
He holds a Uganda Advanced Certificate of Education from London College. To accompany that,
he holds a bachelor’s degree in human resource management from Makerere University Business
School.
Working experience
He is fresh from university but worked with Century bottling company during his internship
training.
Strengths
He has remarkable interpersonal skills. He can work with all types of people and attain the best
results.
He also has good management skills.
He is a good time manager. He knows the value of time and doesn’t waste it.
Name: Kamyuka Tadeo
Mob: 0700781200/0792310259
Address: P.O Box 1204, Kampala
Email: tadeomyukka@outlook.com
Education background
He holds a Uganda Advanced Certificate of Education from Makerere College School. He also
holds a bachelor’s degree in accounting and finance from Makerere University Business School
where he graduated in first class.
He also has a Certified Public Accountants certificate from Uganda Management Institute.
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Working experience
He has worked with Chatta Motors Uganda as an accountant for four years.
He has also had the pleasure of working with Uganda Christian University as a junior lecturer still
in the accounting discipline.
Strengths
He is good with numbers. Having studied accounting at university, Tadeo is good with numbers.
He also possess team spirit. He is good when it comes to working in teams and will always deliver
results.
He is also good at time keeping and it is one of his strong values.
Name: Kawooya Albert Cook
Mob: 0772454851/0752454851
Address: P.O Box 3021, Kampala
Email: albertcookk@gmail.com
Education background
He attained a Uganda Advanced Certificate of Education from St. Mary’s College Kisubi. He later
joined Makerere University to pursue a bachelor’s degree in mechanical engineering.
He currently has in his possession a degree in mechanical engineering and is pursuing a master’s
degree in business administration.
Working experience
He has worked with Crown beverages producers of Pepsi, Mirinda and Mountain dew among
others as an operations manager for the last three years to date.
Strengths
He has good interpersonal skills. He can work and maintain good relationships with people i.e.
customers, subordinates and superiors.
He has good adaptation skills. He can easily adapt to any place and situation which enables him to
work almost in every environment.
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Location of the business
Beacon Brick Works Uganda will be located in Kayunga Wakiso district approximately 40Km
away from the city centre along Hoima road before you reach Wakiso town. This is a developing
town found in Wakiso district with a few shops and businesses in the town.
It has a population of approximately twenty thousand people and is sparsely populated. The people
here are welcoming. The area is a bit hilly with a few hills and a few valleys that harbour swaps
and wetlands.
MAP
Kayunga
Nansana
Nabweeru
Hoima rd
To Busega
.
Round
about
To Bweyogerere
To Kampala
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Brief history of the business
Beacon Brick works Uganda is an idea that was developed by two people me and my partner Mr.
Kisaalu Gad Brian when we were still in our first year at the university. During this time, both of
our families were trying to construct structures. My father was building his retirement home and
his father was building apartments. We used to be sent on the sites to supervise what was taking
place and most times to procure materials that would be used in the construction. One time, as the
building was reaching the beam for one of the rooms, a wall fell down and the builders attributed
this occurrence to the fact that the bricks were weak and were not dry enough. This was when we
realised the need for quality bricks for everyone engaging in the real estate business and building
and construction to be specific.
Business size
Beacon Brick Works Uganda is a medium sized company employing a total of a hundred
employees comprising of thirty full time employees and seventy casual workers. The business will
begin operations on an annual budget of Ug.Shs.933, 000,000
3. Environmental analysis and competitive strategy
Customer analysis
The potential customers will be all the people involved mainly in the real estate business especially
in Uganda since we are first targeting the domestic market. Those looking to build new structures
be it commercial or residential and also those looking to repair or renovate old structures.
We acknowledge that customers are different and therefore their demands also differ from each
other. We are committed to serve every client in the best way we see fitting and according to what
they want. Some customers do not even know what they want and they go to producers or suppliers
to help them make a decision on what to use on their structures. These are usually private
constructors who lack the knowhow and experience when it comes to construction. This category
will also be cared for as we will help advise them according to what they want or plan to have.
Usually, this maintains customers as they will trust our products and us.
The biggest number of customers are likely to be the private constructors or people and also
construction companies. These usually buy in bulk since they usually secure contracts to do the
big jobs for the government, Non-Governmental Organisations, schools among others. There are
various companies that get contracts to construct structures and below is a list of some;
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No. Name of the company
1.
Erekt construction company
2.
Halai holdings limited
3.
By-express construction company limited
4.
National housing and construction corporation
5.
The Arab contractors O.A.O and Co.
Market segmentation
The market will be segmented according to the customers’ demands that’s to say customers who
demand small amounts and those that purchase in bulk. This will help us know what products to
produce and in which quantities that’s to say we can produce certain types and in the right
quantities for specific bulk purchasers. This will also help in effectively maximising resources and
also to reduce on the wastage of resources.
Since we do plan on mainly focusing on the domestic market, we will also segment the market
according to the regions that’s to say central, eastern, northern, southern and the western regions.
This will be very vital when expanding our business say setting up branches to cater for the specific
regions in a bid to expand our market share and also to make our products more available to our
potential customers.
Industry analysis
This industry is not a new one in Uganda. It is as old as contemporary building goes back that is
about sixty years with one of the pioneer companies being Uganda Clays limited. The industry can
be described as one that is currently under developed and this is due to the small or little activity
registered. There are very few registered and big players in this industry for example Uganda Clays
limited, Lweza Clays, Katende brick works being some of the big and known brands among
customers. The industry also has a lot of small scale producers who mainly produce for their own
consumption or for a few earnings mainly to support themselves and the people close to them.
These usually mould bricks according to their desired specifications and set up locally made kilns
in the areas where they have space and plan to work from. When the product is ready, they either
use it or sell it to nearby customers who even book them before they are ready. These are known
by the government but not recognised and so no taxes are charged on what they do, this is mainly
the reason as to why the industry is considered under developed and a bit backward as compared
to other industries even those that were established after.
To me, the industry has a lot of potential and will continue to develop given the right and
favourable factors since one of the main ruling factors for the growth of this industry is another
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industry and growing at a very fast rate and that is the real estate industry. With a few more
investors coming in to take part in this industry, it will soon be one of the greatest revenue earners
for Uganda as a country.
Key success factors.
Presence of demand for the products that we plan to produce. Since the real estate business is on
the rise in Uganda, there is demand for building materials and that includes the ones we produce
for example; bricks, pavers, partitioning blocks, roofing tiles, floor tiles among others. This will
be a key factor for the success of our business since ready market is one of the greatest assets any
business will ever possess.
Presence of a qualified and dedicated team of workers who share the same vision with that of the
business. Operations in the business are not so much automated and even if they were, humans
will still be needed to monitor the processes. Our employees are another key to success for our
business.
Capable and able management and leadership. Our management staff are knowledgeable people
in this field and do possess experience in this field. This can be very vital when it comes to
producing quality products, doing research, marketing the product and other duties for the growth
of the business.
Another factor is our location in Kayunga. We do own three hectares of land in Kayunga. This
will facilitate the business premises that’s to say contain all the structures we plan to put up for
example; ample parking space for both clients and staff, two stores, production unit and offices.
This will surely help us attain success.
Competitors
We do recognise competition as a very good and motivating thing in business and we as well
recognise our competitors. There are companies that have been in this business for more than ten
years for example Uganda Clays limited, Katende brick works and Lweza clays. These are some
of the companies that we will competing with. These are located far away from where we plan to
set up our premises and besides the local producers in the area, there is no other company dealing
in our products.
Uganda Clays limited is located in Kajjansi along Entebbe road but has many branches in the
country in areas like Ntinda, Nateete and UMA show grounds and also supply clients beyond the
Ugandan borders to countries such as; Kenya, Tanzania, Democratic Republic of Congo among
others.
Lweza clays is also another competitor worth taking note of. They have their premises in Lweza
still along Entebbe road and some branches around the country.
These are the two major companies that have been setting the pace for this industry and they set
the prices too. They have given the public an ideological that quality comes at an expensive cost.
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We will prove them, by providing quality at an affordable price for every individual who chooses
to build using quality items.
These two companies have specialised mainly in producing their products from clay thus limiting
their market to only those customers that choose clay. Beacon Brick Works will have a variety of
products from different raw materials such as clay, soil, cement and sand thus providing something
for everyone.
Katende brick works is located a distance away from the city and does not have many branches
distributed in many areas. Customers are usually reluctant to travel long distances to procure
products that they can acquire at slightly higher prices but from areas close.
Other competitors are those that are not registered and do their work on quite a smaller scale. These
for a fact cannot satisfy a greater or high demand at a go. These we will fully and ably out compete
given what we are can achieve.
With this known to us, we do intend to maximise all resources within our reach in a bid to make
our product known to our potential clients and the population at large. We will use all forms of
advertising such as; newspapers, radio stations, television stations, social media, outdoor
advertising among others.
BELOW IS A PIE CHART SHOWING OUR COMPETITORS AND THEIR CURRENT
MARKET SHARE.
Market share
8%
16%
Uganda Clays limited
Lweza clays limited
46%
Katende brick works
Others
30%
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Supplier analysis
The main raw materials for the business are soil, clay, sand, starch and cement. We will get clay
from clay mines around Kampala and in Kayunga itself from the local producers. This is usually
found in wetlands and swampy areas. Soil is mainly supplied by the locals in the area, road
constructors from nearby projects and also the landscapers. These will bring us the soil on their
tracks and in case of the local producers, we will get the soil using our trucks. The sand will be got
from sand quarries around. This will be brought to the premises using the trucks and the cement is
will be supplied by Tororo cement.
When baking the bricks and other products, we do use manual operations where we have two kilns
that are powered manually using both coffee husks and fire wood both procured locally. Coffee
husks are got from mainly farmers and those dealing in refining coffee. These are sold in sacks
and each sack may cost from Shs. 3000 to 5000. The firewood is a bit expensive and hard to find.
This will be supplied from timber suppliers that are in Nansana and we will fetch it using our
trucks.
The starch used will be got from Jericho a company that deals in engineering chemicals located in
Bweyogerere. The do sell the starch in kilograms and they can transport it if we wish it to be
brought to us.
Below is a table showing a list of suppliers, prices and the products they do supply.
1.
2.
3.
4.
5.
6.
Supplier
Product
Price per unit(Ug. shs)
Tororo Cement company
Jericho company
Various locals and some construction
companies
Local producers
Local producers
Timber suppliers
Cement
Starch
Soil and clay
29,500 (per bag)
15,000 (per kg)
20,000 (per trip)
Sand
Coffee husks
Fire wood
22,000 (per trip)
3000-5000 (per suck)
80,000 (per trip)
Market intermediaries
Under this, we look at ways, people and institutions that will help us access the market easier and
how our products will be made accessible to our potential customers.
We will open up more branches in the various parts of the country but as for now, we will deal
with hardware shops such as; Cheap general hardware both in Nansana and Kasubi along Hoima
road, J&L hardware shop in Najjanankumbi located along Entebbe road, His grace hardware shop
in Bulenga along Mityana road, BLM hardware in Ntinda, Christian hardware in Nsangi along
Masaka road and Dorothy hardware shop in Mukono along Jinja road. All these will help to make
our products available to our various customers.
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S.W.O.T analysis
Strengths
We do have sales ability as one of our outstanding strengths. This can be attributed to our strong
sales department that is dedicated and self-driven. Following our vision, this team of outstanding
individuals will be able to sell our products to even those customers who are hard to convince. The
team comprises of eight full time workers and fifteen casual personnel whose major aim will be to
increase the business’ sales.
Commitment is another of our strengths which we shall put to good use so as to survive and thrive
in this market. Due to able management and a hardworking team, we are committed to producing
a variety of products and of quality standards for all kinds of customers. With this, we hope to
increase and attract more customers to try out our products.
We do boast about our dedicated customer care team that can ably handle any customer in any
mood giving them utmost care and attention and a personalised service. The team is comprised of
two ladies; Miss Kiconco Norah and Miss Murungi Cynthia and a gentleman, Mr. Masaba Tom.
These will give a customer their time and a feeling to make Beacon Brick Works their company
of choice.
We do own a three acre piece of land already in Kayunga, Wakiso town council which will house
our premises. Here we will have our parking lot for both the employees, clients, suppliers and also
the business’ motor vehicles, there will be offices, two stores for both finished products and the
raw materials and a production plant facilitating our two kilns and the rest of the machinery that
are used in the manufacturing process.
We do view our ability to provide a wide range of products as one of our most outstanding strengths
as a business. Beacon Brick Works will provide a wide range of products such as roofing tiles,
floor tiles, manhole covers, pavers, partitioning blocks, face bricks among others to suit the various
needs of our clients. These products will be made from soil, clay. Sand and cement.
We do possess able leadership from the proprietors of Beacon Brick Works and also the managers.
These people do possess the attributes of good leaders and also have a wide experience and
knowledge in this area. This will work in our favour and help us to succeed in business.
Weaknesses
Start-up capital is our major weakness currently. This is a big project which requires a lot of funds
to be put into action. Besides a few assets that we already have in our possession like land, labour
and a truck, we will still need funds to build the structures like the offices, stores among others.
We will also need to procure two kilns to bake the bricks and other products.
There will be stiff and a lot of competition from the already established businesses and companies
such as Uganda Clays limited, Lweza clays, Katende brick works among others.
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These businesses have been in operation for over ten years and has a number of clients who are
loyal to them and their products for example Uganda Clays limited which has been in business for
over sixty five years.
These companies do have a wide experience of how the market works attributed to the long period
of time they have been operating, they also do have access to funds from financial institutions,
shareholders among others. An example is Uganda Clays limited which is currently trading shares
on the Uganda Securities Exchange (USE).
We will have a large number of casual workers who are not dependable. Since they are casual and
not full time, it is kind of hard to call them to work in case of an emergency and they turn up. This
is attributed to the limited funds that we do have which cannot be used to run all the operations of
the business and still pay all a hundred employees.
We currently possess one truck which will not be able to make all the trips to collect supplies, to
make deliveries to all the customers who wish that their goods be delivered to them. This will be
a weakness if we cannot make deliveries to our clients, collect supplies so that to avail them to our
production team.
Most of the work in the business will be manual and not automated. This means that a lot of energy
will be used and a lot of time will be wasted. This will in turn affect our output level and eventually
behind schedules.
Opportunities.
This venture will provide us with an opportunity to acquire more experience and skills. As an
entrepreneur, every challenge provides an opportunity for us to learn something and gain more
problem solving skills. It is why I hope that this venture will not be an exclusion to that.
There will be an opportunity to earn a living not only for us but all other employees as well. We
will pay our workers a salary for the full time workers and wages for the casual workers. This is
because as people, they do have needs and because of the contribution they bring to Beacon Brick
Works as a company.
There will an opportunity for Beacon Brick works to establish itself as a reputable brand which
produces a variety of quality and long lasting products for every client and at affordable prices.
This will help increase on the sales of the business thus growing and also to be recognised not only
in Uganda but also in other parts of East Africa.
Beacon Brick Works will have an opportunity of employing over two hundred Ugandans once our
plan goes into action. Uganda has one of the highest levels of unemployment in East Africa and
with our venture, we will have an opportunity to reduce this number by at least two hundred.
Beacon Brick Works has come at a time when the real estate business is on the rise in Uganda.
This will provide an opportunity for the business to supply its products to various customers in
Uganda and beyond borders in countries like Sothern Sudan, Kenya and Rwanda among others.
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Threats
Beacon Brick Works already existing firms such as Uganda Clays limited, Lweza clays and
Katende brick works as the major threat for this specific venture. These companies already have a
strong clientele, access to funds, government support, and recognition among others. These are
surely expected to put up a worthy competition.
P.E.S.T analysis
Political/legal factors
Uganda is usually a peaceful country and this is a favourable environment for doing business. With
peace facilitates growth of businesses and development in the country. We hope that this prevailing
peace in the country will be used by Beacon Brick Works to its advantage so as to grow.
However the high levels of corruption in the government offices and institutions like in the Uganda
Revenue Authority (URA) and in the office of the registrar of companies does not favour growth
of business. When one goes to register their entity with the office of the registrar, they have to
bribe the people in that office so that they are worked on first.
With the revenue authority, one needs to bribe so as to get a reasonable tax levied on their
businesses and products, the same applies when it comes to applying for a Tax Identification
Number (TIN), and one needs to bribe someone so as to be offered assistance.
With the Uganda National Bureau of Standards (UNBS), if someone is producing goods and
services of low quality, they can pay the UNBS officials so as to issue a favourable report about
such activities. Usually these are operating on low costs yet they still avail the market with goods
and services that seem to be of the required standards. This is will affect the business environment
since it will favour unfavourable competition.
Government policies towards investment will also have a bearing on the success of Beacon Brick
Works. The government policy on investment in Uganda mainly supports foreign investors by
giving them free land, tax holidays among others. This favours unfair competition as the local
investors do not get the same favour like their foreign counterparts yet they compete for the same
market.
Economic factors
Of recent, the Ugandan shilling has been trading at a lower rate against the United States dollar as
compared to the past few years. The United States dollar is used as the standard measure of the
strength or weakness of a currency in most countries around the world. This fact will surely have
a bearing on the success of the business as it will soon affect every economic activity in the
country. This will see prices of different commodities rise causing inflation and within no time,
the costs of production will increase and sales are likely to drop. This is mainly attributed to
imported inflation.
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The Bank Of Uganda (B.O.U) has of recent increased its borrowing rate to 12% and this for sure
will affect the success of our business. This occurrence means that the commercial banks will too
increase their lending rate yet we were planning to secure a loan to boost our business. This will
eventually discourage borrowing country wide which in short means business will be slow as
people will not have money to spend.
Uganda still has one of the highest number of unemployed in East Africa. Many people are
educated, would like to work and also have the ability to work but there are no jobs. This has left
many with no money to barely survive. This fact will have a negative bearing on the success of
Beacon Brick Works since there will be absence of effective demand.
Social / cultural factors
The people around are very supportive of the business especially in Kayunga where we set up our
plant. Traditionally, houses in Uganda were built using soil and given that history, people are
supportive seeing that we still use the same raw materials that’s to say soil and clay. Since the
business is not bent towards any specific ethnic group or religion, we will welcome any culture
and hopefully we will also be welcomed by any.
Our business still will not infringe on any person’s beliefs and not on any culture.
Technological factors
Technology changes by the day as new technology is developed each and every day. These changes
have also had a bearing on the businesses and how business is done in Uganda today.
Some people are moving away from the old construction way of using bricks to using metallic
poles to construct walls. This will surely have a bearing on our business as we will lose customers
who will want to substitute the bricks with the metal.
With the technology absent, many companies are engaging in the manufacture of iron sheets. Iron
sheets are cheap and affordable for most of our clients. This has the bearing on the success of the
business as more and more customers who would have purchased and used roofing tiles will be
lost to the iron sheets companies.
Technology has presented us with new methods of communication that’s to say through social
media. This will also have a bearing to the success of the business. If used well, social media will
help us advertise our products and in turn increase our sales. This will help the business to achieve
success.
The new methods of money transfer brought about by new technology will ensure that suppliers
can be and will be paid from the comfort of where ever they are. Debtors or clients will also pay
us through these means such as mobile money, Airtel money among others. This will definitely
have a bearing on the success of the business.
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We will use the manual system of mixing material such as cement, sand and sand. This needs a lot
of energy and will take a lot of time. This will also have a bearing on the success of the business
since it might affect our ability to deliver products on time.
Business is now involved with so much risk due to the increase in cyber-crimes. This has led to
distrust among potential customers or suppliers yet business is mainly dependant on trust. This
will have a bearing on the success of the business if we cannot trust suppliers or potential
customers.
Competitive strategy
We as Beacon Brick Works, we do recognise competition and we have devised ways on how we
will beat competition.
Clearly stated in our mission statement, we aim at producing quality brick works. Customers need
quality products that can be trusted for their construction and renovation works ranging from clay,
soil and cement bricks and other materials. This will help us to brand the business as one that sales
quality products and in a way will help us beat competition.
Customers cannot keep away from low prices. We have realised that the companies that were
already in existence before us have established a kind of monopoly where they are taking
advantage of customers by setting high prices for the goods. We will begin by reducing on the
costs of production then reduce the costs of our products to be slightly cheaper than that of our
competitors. This will help in beating our competition.
Our customer care team is part of our competitive strategy. Most business in Uganda cannot grow
due to poor customer care. With our dedicated customer care team, we will go further in this
industry by out competing other companies in this industry. The team consisting of two ladies and
a gentleman, these love what they do and add a special touch to what they do to come up with a
personalised service for each and every customer. This will help us out compete the competition.
We will also offer credit sales services to loyal customers that have the capability of paying. Our
competition rarely give credit sale services to customers and if they do offer them, they offer them
to only big corporations leaving out the private or sole customers. With Beacon Brick Works, this
will change and we will use this to our advantage and out compete other companies and businesses
in the same industry.
We will also offer after sale services to our clients such as loading goods to their trucks or cars,
packaging, transportation and maintenance who will procure a certain level of our products. We
cannot offer transport services to a customer who procures who only buys one brick, there we shall
be spending a lot on transport but we will offer maintenance services to all our clients who need
them. Companies like Uganda Clays limited do offer transportation only to big corporations. We
do view this as a weakness on their side and we will take advantage of it so as to out compete
them.
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We will make our products more available to all our potential customers who will need them we
will not restrict our products to only our branches but will supply them to various hardware shops
that we collaborate with such as Cheap General hardware in Kasubi and Nansana among others.
This will help us to out compete other companies who only limit the supply of their products to
only their branches.
We will also label our products with our trade mark (BBW) to make them easily identifiable from
the wide range of products that are currently on the market. This will help increase our sales since
clients will easily identify our products from the many on the market. This will help us out compete
other companies in the same industry.
4. Marketing plan
Market Research.
Due to the changes in the business world today, research is a necessity so as to adopt to the new
trends in this sector. Market research is also necessary as it will help us know the current trends of
the market and how we will adopt to these changes. The research shall be conducted through
various ways such as; asking customers through conducting interviews, testing our products, filling
out questionnaires online. The information obtained will be analyzed and interpreted so as to
improve on our products and services.
Methods of data collection:
An open ended questionnaire will be designed and posted online in order to get the direct opinions
of the prospective customers. Direct oral interviews and focused group discussions involving
customers will also be conducted to find out customers' views on our products and services so that
we respond accordingly.
The effectiveness and efficiency of the chosen modes of research was rated as;
Method
Cost
Convenience
Response
Speed
Interviews
So expensive
Fair
Most effective
Quick
Group discussions Expensive
Fair
Fair
Very slow
Questionnaire
Good
Very good
Faster
Relatively cheap
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Marketing objectives
As Beacon Brick Works, we aim at obtaining at least 30% of the market share in the first half of
the year. We are mainly targeting the domestic and we do acknowledge that it will be challenging
but it is still attainable.
We also aim at beating our competition one by one starting with the weaker ones. This will
instantly be followed by us expanding our market to beyond the borders to other countries like
Southern Sudan, Kenya, Rwanda and Burundi which are currently being supplied by Uganda Clays
limited as the only supplier from Uganda.
Within a five year period, we aim at being one of Uganda’s most recognised quality brands and
hopefully trading stocks with the Uganda Securities Exchange which will help us gain funds from
the sale of shares at a good price.
Targeting and positioning strategy
Beacon Brick Works is mainly and currently targeting the domestic market. This is mainly due to
the limited funds that do not support our expansion currently.
The target customers for our products will be those constructing houses mainly residential, rentals
or apartments in the areas of Nansana, Wakiso, Ssenge, Kayunga and the surrounding areas. These
will not buy our products in large amounts as we expect bigger companies to but they can
recommend us to their colleagues that are also looking for quality and reliable products to build
with.
According to the recent research conducted in Uganda, many people who are currently living in
the city are moving away from the main capital and looking to settle in the suburbs of the capital.
This has been attributed to the congestion in the city and the high cost of plots. Due to this fact,
there are many houses being constructed in this area thus creating demand for more construction
products such as bricks, roofing tiles etc.
A further market is identified as commercial and light industrial areas of Kireka, Bweyogerere,
Kisaasi and Bulenga. Although some of these are slightly outside my identified area of operation,
I will be targeting them through surveyors, architects who will help recommend them to me. This
will enable me to create a wide database of future clients and strengthening the life span of the
business.
Market positioning is all about the image we create of our business among the potential clients.
Here we look at positioning our business as a source of quality and reliable products in the minds
of our potential customers. One that will offer products in a timely manner and really dependable
when it comes to brick works.
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Product strategies
The market is looking for genuine and quality goods and products that can last for a long time.
Customers also want a good looking product. We will be able to offer all these and satisfy the
customers’ wants in as far as brick works are concerned. Our products are created from a wide
range of raw materials depending on the desired output, with great care from our production team,
the products offered to the market will have a unique look, better shape and even a smooth feel to
serve our customers’ better.
Our products are not only limited to clay as the raw materials, we will use soil, cement, starch and
sand during the production of a wide range of our products.
Each brick will be made with the right and standard ingredient which will be measured first. Then
the bricks will take approximately four hours in the kilns for baking at a high regulated temperature
and on removal, they will be kept in a cool and dry place. This will ensure strength and durability
of the products. This will help to produce a strong and durable product that can fully satisfy the
needs of our clients.
We will brand our products as good quality products through the use of quality raw materials,
using the correct measurements for the specific raw materials, producing on time and delivering
on time.
Pricing strategies
We will consider prices that are slightly lower compared to our competitors and affordable to our
clients. This will be done in a bid to ease our break through into the market which is currently
flooded with products from mostly Uganda Clays limited and Lweza clays limited. However this
implies that we will have to minimise our cost of production.
However we will also let the forces of demand and supply also come into play as a way of
determining prices of our products. These dictate that when demand increases for a certain product,
it is most likely lead to an increase in the price of that specific product and if the supply of a given
product increases, it will most likely lead to fall in prices of that specific product.
At some point in time, our prices will entirely depend on the economic situation prevailing in the
country. We will not continue pricing our products at a lower rate when cases of inflation come
in. This may mean losses for our business.
Promotional strategies
Promotion mainly looks at how to increase the sales of any given product. We will begin by
designing brochures personally on my computer and then print them. These will contain the name
of the business, the products we do produce and pictures of those products, our branches and
partnering hardware shops, where the business is located, the working hours and our contacts.
These will be placed at hardware shops, supermarkets, hotels, churches and all other places where
24
many people come together. This will be made in a bid to make these brochures accessible by
everyone and thus promoting our products and business.
We will also embark on printing T-shirts clearly showing the name of the business, contact and a
picture depicting what the business is involved in. these will mainly be worn by our staff as a way
of promoting the business.
We will also partner with some real estate agencies around town like Genuine Property consultants
in Wakiso, Jomayi property consultants located on Yiga chambers in Old Kampala and Sema
properties along Martin road in a bid to promote our business.
Here, we will be offering our products at half prices or a certain amount say fifty bricks free if a
customer buys a plot of land from these agencies. Here will be paid by the agencies who will be
promoted and at the same time our business.
Below is a table showing how the various agencies will be offering our products to their
customers.
1.
Name of partnering agency
Requirement (plot size)
Benefit
Genuine Property consultants
50ft ×50ft
50ft × 100ft
100ft × 100ft
20 bricks
100 bricks
100 bricks plus 10 ventilation bricks
200 clay bricks and 50 ventilation
bricks
100 clay bricks
320 clay bricks
50 bricks
150 bricks
300 clay bricks
2.
Jomayi Property consultants
3.
Ssema properties
1 acre
50ft × 100ft
100ft × 100ft
50ft × 50ft
50ft × 100ft
100ft × 100ft
Lastly, we also look at utilising the different media platforms that are available that’s to say
Newspapers, radio stations, television stations and social media to promote our products and make
it known to the public. Many people in Uganda have access to at least one of these platforms if not
all. This makes promotion of our product quite easy.
Distribution strategies
The products we will be dealing in are mainly bulky and it is hard to walk around with them say
in a bag or in a parcel. And the distribution strategies we do adopt will depend on a number of
factors for example, geographical location, market share in that specific area and the related
expenses among others.
We will put out our products at our different outlets which will be open all the seven days of the
week Sunday to Saturday. We are also looking at expanding our business to the various regions of
the country in two years after the commencement of our business. This will help with distribution
of our products in the various regions of the country.
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We will also partner with some hardware shops around town and in other areas such as, Cheap
general hardware both in Nansana and Kasubi along Hoima road, J&L hardware shop in
Najjanankumbi located along Entebbe road, His grace hardware shop in Bulenga along Mityana
road, BLM hardware in Ntinda, Christian hardware in Nsangi along Masaka road and Dorothy
hardware shop in Mukono along Jinja road to offer us a stall or a place in their premises where we
can sell our products or alternatively, they can buy from us and stock them. This will be done in a
bid to make our product readily available to our potential clients.
We will also acquire trucks that will be used in distributing our products to the different areas.
These will have the name of the business and will be used to transport our products to various
places in and out of the country.
5. Production / operations plan
Operational objectives
All operations in the business will aim at utilising the available resources such as capital, raw
materials and labour so as to produce good and quality works and on time.
We also aim at minimising costs in all our operations for example, we will not use electricity
powered kilns where we have an option of using those ones that use coffee husks, saw dust or
wood. Electricity especially hydroelectricity is becoming more expensive by the day in Uganda
with a unit of electricity going for as high as Shs. 15. This means that using it to power heavy
machinery means an increase in the operational costs.
We also look at setting standards in all operations that’s to say standard procedures that will be
followed when receiving goods from suppliers, delivering goods to clients, when making our
products. This will be done in a bid to ensure quality and constant growth of Beacon Brick Works.
We will ensure fast delivery of products as we will be trying to give our clients an experience of
being served in time and with quality.
Description of operation system
The inputs for our products will include; soil, clay, cement, starch and sand depending on the
product. We will standardise the process of producing our products. This will be in steps.
1. After getting the raw materials, we will filter them especially for the soil and clay. These
will be taken through some kind of sever to take out the pebbles and be left with the fines
particles.
2. We will then measure the ingredients for each specific product separately so that they do
correspond with the standards set by the operations manager.
3. The measured ingredients are then put into a machined and left to mix for one hour until
they do dissolve in one another.
4. The mixture is then put into frames of different shapes and dimensions according to what
the desired output is.
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5. When the shapes are made, they are taken into the kilns for two hours at a regulated
temperature where they are baked.
6. The baked shapes are taken into another room where they cool off also at a regulated
temperature and then later transferred to the finished goods store.
The activities involved include; measuring of materials, mixing, making shapes and lastly baking
to get the final output.
A table showing the employees who will perform the various activities.
Day of the week
Time/Shift
Activity
Employee(s)
Monday
7am – 7pm
Measuring
Mixing
Shaping
Kalevu Banada & Apio Noreen
Kiwa Fred & Amooti Dan
Susan Luta, Bwambale Tom &
Andrew Seki
Sulah Mugambe & Odeke Ben
Baking
8pm – 6am
Measuring
Mixing
Shaping
Baking
Tuesday
7am – 7pm
Measuring
Mixing
Shaping
Baking
8pm – 6am
Wednesday
7am – 7pm
Measuring
Mixing
Shaping
Baking
Measuring
Mixing
Shaping
Baking
8pm – 6am
Measuring
Mixing
Shaping
Baking
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Bbosa Roy & Erica Lola
Mugula Vincent & Jonah Lwanga
Joan Nabwiire, Samson Olinga &
Dhafa Charles
Lule Jerry & Musa Kutosi
Wandera Kevin & Phiona Mukasa
Male Duncan & Nkalubo Michael
Rita Adong, Moses Okello & Tom.
K.
Wambi Enoch & Kasolo Ronnie
Kalevu Banada & Apio Noreen
Kiwa Fred & Amooti Dan
Susan Luta, Bwambale Tom &
Andrew Seki
Sulah Mugambe & Odeke Ben
Phiona Mukasa & Wandera Kevin
Mugula Vincent & Jonah Lwanga
Joan Nabwiire, Samson Olinga &
Dhafa Charles
Lule Jerry & Musa Kutosi
Bbosa Roy & Erica Lola
Male Duncan & Nkalubo Michael
Rita Adong, Moses Okello & Tom.
K.
Wambi Enoch & Kasolo Ronnie
Thursday
7am – 7pm
Measuring
Mixing
Shaping
Baking
8pm – 6am
Measuring
Mixing
Shaping
Baking
Friday
7am – 7pm
Measuring
Mixing
Shaping
Baking
8pm – 6am
Measuring
Mixing
Shaping
Baking
Saturday
8am – 5pm
Measuring
Mixing
Shaping
Baking
6pm – 3am
Sunday
12 noon – 8pm
Measuring
Mixing
Shaping
Phiona Mukasa & Wandera Kevin
Kiwa Fred & Amooti Dan
Susan Luta, Bwambale Tom &
Andrew Seki
Sulah Mugambe & Odeke Ben
Kalevu Banada & Apio Noreen
Mugula Vincent & Jonah Lwanga
Joan Nabwiire, Samson Olinga &
Dhafa Charles
Lule Jerry & Musa Kutosi
Phiona Mukasa & Wandera Kevin
Kiwa Fred & Amooti Dan
Susan Luta, Bwambale Tom &
Andrew Seki
Sulah Mugambe & Odeke Ben
Bbosa Roy & Erica Lola
Male Duncan & Nkalubo Michael
Rita Adong, Moses Okello & Tom.
K.
Wambi Enoch & Kasolo Ronnie
Phiona Mukasa & Wandera Kevin
Mugula Vincent & Jonah Lwanga
Joan Nabwiire, Samson Olinga &
Dhafa Charles
Lule Jerry & Musa Kutosi
Baking
Kalevu Banada & Apio Noreen
Kiwa Fred & Amooti Dan
Susan Luta, Bwambale Tom &
Andrew Seki
Sulah Mugambe & Odeke Ben
Measuring
Mixing
Shaping
Baking
(The teams will be inter changed so
that each worker could have one
Sunday off in a month). Will be
communicated on Saturdays
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Mixer
Toilets
Kilns
Offices
Offices
Show room
Parking space
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Output store
Shaping
Disposal Area
Measuring
unit
Input store
Physical layout
Output
There will be various output products such as; Maxpans, Roofing tiles, Floor tiles, partitioning
bricks, construction bricks, and ventilation blocks etc.
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Location
Beacon Brick Works will be located in Kayunga in Wakiso town council. This is still a growing
area implying that there are still so many sources of soil from the roads being constructed and
landscaping being done in various estates being developed. There are clay deposits here from the
various wetlands and swamps which we can use. The presence of all these reduces on the transport
costs we would have incurred thus favouring our operations.
The factory will be built on three acres of land facilitating a raw materials’ store, production plant,
finished goods store, parking space, offices, show room, canteen and disposal area. These are all
the facilities that we need for smooth running of our operations.
Though Kayunga is still a town on the rise, there are already water pipes supplying water to all the
people who can afford. Water is a very crucial element in all our operations. It has been made
readily available and making our operations easy and run smoothly.
Kayunga has good security. Security is one of the most important issues to consider when setting
up a business. In Kayunga, people look out for one another and each other’s property. This favours
our operation as we are assured of security from the neighbouring people.
Kayunga is not far from the main business district which is Kampala. The business will not incur
a lot of costs when transporting raw materials, and finished products to the various markets and
customers. This makes Kayunga a favourable location for the business.
Approach to quality
Quality being one of the things we emphasize on as Beacon Brick Works, we have developed a
few approaches to attaining quality.
We do think that quality has a lot to do with suppliers, how dependable they are, how fast they are
and the quality of goods that they supply. We will visit our suppliers occasionally to evaluate their
ability to still supply the business with the right amount of raw materials of good quality and on
time. This will help the business to achieve quality.
We also believe that standardisation is a key factor when looking at quality. We will set standards
for producing our products that’s to say, standard quantities of raw materials that will be used for
each unit of production and the standard procedures that will be followed when producing these
products.
We will recruiting efficient and capable work force. These will be sponsored to training sessions
to obtain more knowledge on how to execute their tasks more efficiently and effectively. This will
help the business to attain quality.
Supervision and guidance of the human resource will be done especially for those workers that
lack experience and knowledge in this field. This will be the duty of the various managers. This
will help in our pursuit for quality.
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Inventory management
Inventory is one of the major assets of the business and this consist of raw materials, work in
process and finished goods.
Our location in Kayunga will have two distinctive stores, one for raw materials and another one
for finished goods. This means that there will be two store keepers and both stores will be kept
under key and lock at all times. This will be done with the aim of minimising stock thefts.
The periodic review method of inventory management will be used where our stock levels will be
constantly reviewed over a given period of time say a week. This will be used due to its various
advantages like updating the records constantly. This will also be used for all kinds of inventory
we have i.e. raw materials, work in progress and finished goods.
Store records will be kept by the two store keepers and will be reviewed periodically by the stores’
manager as a way of monitoring the inventory getting in and out of the stores.
6. Organisational and human resource plan.
Organisational structure
Proprietors/ C.E.O.s
General manger
Human
resource
manager
Public
relations
managers,
welfare
managers
Financial
manager
Accountants,
cashiers &
book keepers
Marketing &
sales manager
Sales &
marketing
personnel
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Procurement
& supplies
manager
Production
& operations
manager
Store
keepers,
drivers &
managers
Production
personnel,
drivers,
mechanics,
cleaners
Job descriptions and specifications
General Manager
He will oversee all the processes in the business and will make all major decisions in the business.
He will be required to report all his findings to the Chief Executive officers about the progress of
the company.
Human resource manager
He will be handling all interactions with personnel both inside the business and out of the business.
In this department, we will have the Public relations manager who will be tasked by
communicating on behalf of the business to the public.
There will also be welfare manager concerned with the welfare of the employees in the business.
How well are they protected, are they receiving their payment in full and on time etc.
Financial manager
He will be concerned with handling all finances of the company. This includes sourcing funds,
investing excess funds, making profits among others. In this department, we will have the
accountants, cashiers and book keepers. These will be involved in the day to day finances of the
business such as receiving money, recording and balancing of books of accounts.
Marketing and sales manager
He will be responsible for promoting the business and its products to our potential customers. He
will also be responsible for increasing sales of our products and the overall market share. Under
him, there will be sales and marketing personnel who will be tasked to go to the field to promote
the product and make the product available for those that wish to buy.
Procurement and supplies manager
He will be responsible with buying and supplying the business with all it needs from raw materials
to assets and day to day necessities. Under this, we will have store keepers who will be tasked with
all day monitoring of the stores and to issue out goods and also receive the ones being brought in.
The store managers will also be in this department and responsible for reviewing requisitions from
different departments and also reviewing store records presented by the store keepers. There will
also be a driver ready to transport purchased items to the business premises.
Production and operations manager
He will be responsible to oversee the production process and all the operations in the business.
Under him, there will be production personnel who will be directly involved in the production
process, mechanics who will be responsible for maintain and repairing machines in the business.
Cleaners will also be part to maintain cleanliness on the premises.
Below all this, there will be two drivers responsible to transport people and all the commodities to
and from the business.
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Description of outsourced services
There are services that we will outsourced from other suppliers such as; making the frames for the
various products we will make from Nakawa vocational institute’s welding department and the
carpentry department. We will also outsource security from Saraceen Company limited, a
company which provides security services. These will mainly come in at night when there are no
major activities going on at the premises.
At a further time in the business, we will outsource catering services from Peace restaurant which
will be brought to our premises. This will be done in a bid to reduce on the time spent by the
employees on their lunch breaks.
We will also outsource auditing services from qualified auditors from KPMG. These will be
coming at the end of every financial year to make a thorough audit of the business’ books of
accounts. This will be very helpful as a basis of making decisions for the business in future.
Recruitment
The proprietors together with the human resource manager will be responsible for the recruitment
of employees. Recruitment will be based on the educational qualifications, a little bit of experience
in some fields and the need in the business. We will not recruit if we do not entirely need someone
in a specific position.
Some areas require experience in the field such as; production, mechanics, procurement among
others.
The application process will only be followed for those workers applying for full time jobs with
the business. Applicants applying for casual work will approach the department managers in
person and apply.
Applications will be received both personally and on the company email.
Applicants will be short listed after reviewing their applications and those qualifying will be
communicated to by the human resource department.
Training and staff development
We will have training programmes for our staff once a year for the various departments such as
marketing and sales, procurement and supplies, human resource, financial and accounts manager
and production and operations. Each of these will have a week’s training programme once in a
year. We will also sponsor some of the outstanding employees to some summits to expand their
knowledge and develop their skills. This will help them to develop in their fields and sharpen their
skills.
34
7. Financial plan
BEACON BRICK WORKS PROJECTED REVENUE
Details
2016 (UGX)
2017 (UGX)
2018 (UGX)
January
-
7,500,000
8,200,000
February
5,800,000
7,700,000
9,200,000
March
6,200,000
7,000,000
12,000,000
April
6,900,000
7,005,000
22,000,000
May
8,540,000
8,600,000
32,000,000
June
9,200,000
10,000,000
15,000,000
July
12,500,000
14,600,000
32,000,000
August
18,640,000
19,000,000
36,000,000
September
25,000,000
27,236,000
50,200,000
October
26,000,000
30,271,000
54,000,000
November
20,000,000
24,350,000
40,250,000
December
19,280,000
22,600,000
30,000,000
Total
158,060,000
718,562,000
340,850,000
BEACON BRICK WORKS PROJECTED REVENUE BUDGET
Details
2016 (UGX)
2017 (UGX)
2018 (UGX)
Raw material supplies
40,000,000
60,000,000
57,000,000
Transport costs
9,000,000
15,000,000
14,000,000
Remuneration of workers
10,000,000
20,000,000
20,500,000
Water and electricity bills
17,000,000
40,000,000
50,000,000
Security services
3,000,000
8,000,000
8,000,000
Auditing services
5,000,000
15,000,000
15,000,000
Payment of creditors
5,060,000
18,562,000
18,000,000
Promotion and advertising
12,000,000
20,000,000
24,000,000
Loan repayment
46,000,000
46,000,000
46,000,000
Total
147,060,000
242,562,000
252,500,000
35
PROJECTED CAPITAL BUDGET
UGX
2016
UGX
2017
UGX
2018
Initial capital
200,000,000
NIL
NIL
Additional
investments
Motor vehicles
113,000,000
NIL
NIL
Land
180,000,000
NIL
NIL
Additional
capital
Loan
500,000,000
NIL
NIL
NIL
883,000,000
900,000,000
993,000,000
883,000,000
900,000,000
Retained
earnings
Total
MATERIALS BUDGET
Materials
2016 (UGX)
2017 (UGX)
2018 (UGX)
Soil
4,000,000
6,000,000
6,000,000
16,000,000
Clay
6,000,000
7,000,000
7,000,000
20,000,000
Cement
16,000,000
20,000,000
20,000,000
56,000,000
Sand
4,000,000
7,000,000
7,000,000
18,000,000
Starch
7,000,000
10,000,000
10,000,000
27,000,000
Firewood
2,000,000
5,000,000
3,000,000
10,000,000
Coffee husks
1,000,000
4,000,000
4,000,000
9,000,000
Total
40,000,000
60,000,000
57,000,000
157,000,000
36
TOTAL (UGX)
LABOUR BUDGET
2017
2018
TOTAL
PERSONNEL (UGX)
(UGX)
(UGX)
(UGX)
1
6,000,000
8,400,000
8,400,000
22,800,000
Human resource Manager 1
4,800,000
7,200,000
8,400,000
20,400,000
Sales/marketing Manager 1
4,800,000
7,200,000
8,400,000
20,400,000
Operations Manager
1
4,800,000
7,200,000
8,400,000
20,400,000
Procurement Manager
1
4,800,000
7,200,000
8,400,000
20,400,000
Financial Manager
1
4,800,000
7,200,000
8,400,000
20,400,000
Accountants
2
4,800,000
6,000,000
6,000,000
16,800,000
Sales persons
4
7,200,000
7,200,000
7,200,000
21,600,000
Customer care personnel
3
5,760,000
7,200,000
7,200,000
20,160,000
3,000,000
3,000,000
3,000,000
9,000,000
4,800,000
4,800,000
4,800,000
14,400,000
55,560,000
72,600,000
78,600,000
206,760,000
JOB SPECIFICATION
Managing Director
NO.
Casual employees
Drivers
TOTAL
2
OF 2016
37
PROFORMA PROFIT AND LOSS STATEMENT
Details
2016 (UGX)
2017 (UGX)
2018 (UGX)
Sales
158,060,000
718,562,000
340,850,000
Cost of sales
41,000,000
65,000,000
60,000,000
Gross profit
117,060,000
653,562,000
280,850,000
Operating expenses
130,000,000
380,500,000
200,000,000
Net profit before tax
(13,060,000)
273,062,000
80,850,000
Taxes (18%)
NIL
49,151,160
21,753,000
Net profit after tax
(13,060,000)
223,910,840
14,553,000
Kasujja Alexander
(9,142,000)
30,562,588
7,000,000
Kisaalu Gad Brian
(3,918,000)
13,098,252
3,000,000
Transfer to reserves
NIL
180,250,000
4,553,000
Share of profits (7:3)
38
PROJECTED BALANCE SHEET FOR THREE YEARS
2016 (UGX)
2017 (UGX)
2018 (UGX)
Non-current assets
Motor vehicles
113,000,000
110,500,000
109,000,000
Land
180,000,000
230,000,000
380,000,000
Buildings
102,000,000
105,000,000
108,000,000
Total non-current assets
395,000,000
445,500,000
Bank
150,600,000
270,800,000
300,040,000
Cash
8,000,000
10,500,000
20,200,000
Inventory
60,000,000
58,000,000
60,000,000
Total current assets
218,600,000
339,300,000
380,240,000
500,000,000
450,000,000
280,000,000
Creditors
16,000,000
18,000,000
20,000,000
Total liabilities
516,000,000
468,000,000
300,000,000
Working capital
202,600,000
321,300,000
360,240,000
Net total assets
97,600,000
316,800,000
677,240,000
597,000,000
Current assets
Non-current liabilities
Equity bank loan
Current liabilities
39
Financed by;
Capital
200,000,000
Equity bank loan
500,000,000
180,250,000
240,500,000
Net profit
(13,060,000)
223,910,840
14,553,000
Less: drawings
100,000,000
87,360,840
422,187,000
316,800,000
677,240,000
Non-current assets
Loan
489,340,000
97,600,000
40
BEACON BRICK WORKS PROFORMA CASH FLOW STATEMENT FOR THE
FINANCIAL YEAR 2016
2016 (UGX)
2017 (UGX)
2018 (UGX)
Receipts/ inflows
158,060,000
718,562,000
340,850,000
Salaries & wages
10,000,000
20,000,000
20,500,000
Purchases
40,000,000
60,000,000
57,000,000
Taxes (18% of sales)
28,450,800
129,341,160
61,353,000
Loan principal
40,000,000
40,000,000
40,000,000
Interest (15%)
6,000,000
6,000,000
6,000,000
Transport
9,000,000
15,000,000
14,000,000
Advertising & promotion
12,000,000
20,000,000
24,000,000
Electricity & water
17,000,000
40,000,000
50,000,000
Auditing services
5,000,000
15,000,000
15,000,000
Security services
3,000,000
8,000,000
8,000,000
Total disbursements
170,450,800
353,341,160
295,835,000
Net cash flows
-12,390,800
365,220,840
45,015,000
Sales
Disbursements/ outflows
41
8. Executive summary
Beacon Brick Works will be a medium sized business dealing in all types of brick works such as
bricks, floor tiles, roofing tiles, pavers, and face bricks etc. made from a wide range of raw
materials such as soil, clay, sand and cement.
It will be a partnership form of business with two proprietors that’s to say Kasujja Alexander and
Kisaalu Gad Brian who will own 70% and 30% of the company respectively with a mission, “We
exist to produce the best quality brick works that are strong and at affordable prices” and a vision,
“To not only be the best producer of brick works in Uganda but also to be the ultimate choice for
Ugandans.”
The business will be located in Kayunga found in Wakiso town council a few miles away from
the city centre. This is where we have land and it will be a good location for the business due to
its closeness to the source of very many raw materials that will be used in the manufacture of the
different products such as soil and clay.
The business will have various customers mainly from the real estate industry which includes
private constructors, construction companies from mainly Uganda but will also entertain those
coming from beyond the country’s borders. Our market will be segmented according to the
different regions i.e. eastern, central, southern, northern and western regions.
The industry that we will engage in is one that has been registering slow growth in Uganda for
the past close to 15 years with a few major dominants such as Uganda Clays Limited, Lweza clays
and Katende brick works. We will use various strategies to beat our rivals and competition such
as intensive advertisement, carrying out sales promotion, providing a wide range of products for
our customers among others.
We will begin by focusing on the domestic market and we do look at occupying a given
recognisable percentage of the market. We also look at positioning our business as one that
produces quality and long lasting products in a timely manner. Our prices will be quite affordable
and our pricing decisions will be dependent on various factors such as costs incurred, demand,
and economic situation in the country among others. We will try to make our products easily
available to our potential customers at our different branches and our partnering hardware shops
around the country.
With our location in Kayunga, we will be able to set up a manufacturing plant, offices, stores for
both inputs and outputs, parking and other structures which will favour the smooth running of our
business.
We will mainly look at various ways of minimising costs in all our operations.
We greatly emphasize on quality and we will use different strategies to ensure that we achieve
this such as training our employees and close supervision. Since inventory is very vital in this
business, we will use a continuous review of inventory and maintain two distinct stores.
The business will also have various departments such as sales and marketing, procurement,
operations and productions, human resource and financial and accounting and the various jobs in
42
these departments will be well defined. The business will be structured in a way that promotes
communication between the various departments for the smooth running of all operations in the
business.
The recruitment will be done by the human resource manager and the various managers for those
that will apply for casual employment.
The projected financial records in the financial plan will cover a three year period from 2016 –
2018.
43