SHEM PRO ENTERPRISES SERVICES
P.O BOX 81-80300
VOI
Principal Owner Bernard Babu
For year 2021
DEDICATION
I dedicate this SHEM PRO ENTERPRISES SERVICES to my family who gave me moral support, physical material support and entire business associates for sharing information also I strongly appreciate the efforts of BEN TILES ENTERPRISE LIMITED for financial support during the entire process of the preparation for the business plan.
ACKNOWLEDGEMENT
I give my thanks in a special way to all who assisted me coming up with this business idea plan.I acknowledge the entire fraternity family of my business associates in support of knowledgeable materials for completion of the business plan.
TABLE OF CONTENTS
Industry Overview
Executive Summary
Products and services
Mission and Vision Statement
Business Structure
SWOT Analysis
Market Analysis
Target Market
Sales and marketing strategy
Sales forecast
Publicity and Advertising Strategy
Our pricing strategy
Startup Expenditure (Budget)
Sustainability and Expansion Strategy
ABSTRACT
Solid waste management is no longer a non priority issue anymore as improper waste disposal will lead to public and environmental health crisis as well as economic loss. Many nations that are developed have achieved considerable success in management of solid waste but the case is different for the developing countries as they are still grappling with issue of waste.
According to our findings before we engaged on the business, we noticed that residents had sufficient knowledge on solid waste management mainly on the type of waste generated at households level and environmental problems posed by poor waste management with the main source of information being from county workers. Despite the residents knowledge their attitudes was poor, more so in taking up solid waste management as part of their responsibility.
A sustained campaign should be mounted on the need for a clean environment as this will help avert the feeling that waste management is a sole responsibility of the county government.
As per research, “One of the business opportunities available in the waste management sector that an aspiring entrepreneur can start in the united states of America is garbage collection. The truth is that if you settle for this business, you are sure of making huge returns from your investment because garbage is generated on a daily basis and of course reliable statistics shows that the waste collection industry in the United States of America rakes in a whooping sum of $45 billion dollars annually.”
If you want to partake in this thriving industry, then you need to obtain the necessary licenses and permits. Although there are competitions at various levels in the industry, but if you are able to come up with a good business strategy, then you are sure of getting your own fair share of the market in the industry.
1. Industry Overview
Garbage collection business is grouped under the waste collection industry and companies that operates in the industry collect hazardous and nonhazardous waste and recyclable materials. Nonhazardous waste includes municipal solid waste (household waste), industrial and commercial waste.A close study of the industry shows that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expands, it is natural for them to produce more waste.
So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection industry. Going forward, the demand for waste collection services will continue to be driven by population growth, privatization and business creation.Additionally, the industry will benefit from the public’s growing interest in the recycling industry and be in clean environment areas.
Garbage business is the most profitable business in Kenya and earns highest profits on a weekly basis. Garbage opportunities are diverse from home, offices, businesses centres and even industries produce waste everyday making the business an evergreen opportunity to begin.
Their are different types of waste that we have classified to easy our work during collection exercise. Classified into five (5) types of waste which is all commonly found around the houses. These include liquid waste ,solid rubbish,organic waste, recycleable rubbish and hazardous waste. Various studies have identified a number of problems facing rural and urban development that concern management of waste such as: lack of effective waste collection systems,neglect of basic solid waste management strategies at household level and improper disposal methods,posing a threat to ecological and public health systems. Most solid waste is generated at household level contributing greatly to solid waste impacts.
Please note that we are not ruling out the fact that starting and operating a garbage collection company can be challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of garbage collection trucks and aspiring entrepreneurs who may want to start with just one garbage collection truck.
2. Executive Summary
Shem pro enterprises services is a registered and licensed waste collection company that will be based in Taita taveta County. We have been able to secure all the relevant licenses and permits to operate in Kenya, will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced and qualified drivers with valid licence for garbage collection trucks.
We are in business to provide services such waste and refuse collection and hauling, recyclable material collection and hauling, removal and hauling of rubble, construction and demolition debris, waste transfer station operation, amongst other related services. We will provide daily services all around the taita taveta County and neighboring counties.
Shem pro enterprise services will ensure that all our garbage pick – ups are on time and we supersede the expectation of our customers. We will only put trucks that are in top shape on the road, and all our cleaners and drivers will be trained to be extra careful, pay attention to details, courteous, friendly and to abide by the rules and regulations of the industry. We will maintain and take proper care of our cleaners and drivers as well as our trucks.
We are quite optimistic that our values and quality of service offering will help us drive our garbage collection business to enviable heights and also help us attract the number of clients that will make the business highly profitable.
We are quite aware that in order to become the number one choice in our county we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in industry. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from large estates, shopping centres, hotels and business complexes.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
3. Products and Services
Shem pro enterprises services is established with the aim of maximizing profits in the waste collection industry. We want to compete favorably with the county government garbage collection exercise, which is why we have put in place a competent quality assurance team that will ensure that every service carried out meets and even surpass our customers’ expectations.
Our service offerings are listed below;
Waste and refuse collection and hauling
Recyclable material collection and hauling
Removal and hauling of rubble, construction and demolition debris
Waste transfer station operation
4. Mission and Vision Statement
Our Vision is to build a business that will take care of garbage collection for major residential ares and shopping centres in all taita taveta County.
Our mission is to deploy professional and environmental friendly ways of garbage collections in counties we want to become a standard of how garbage collection companies should operate in the whole of the Republic of Kenya.
5. Business Structure
The business will engage permanent and semi permanent staffs. All of them must be qualified in their field of career and atleast experience on similar level in the organisation. There will be Management team which will be headed by Director of the company. The team will be finance,field consultancy and human resource. The other semi permanent team will be co ordinated by the field consultancy under closely supervision and advisory from the human resources. We will engage more staffs depending on rate of expansion and coverage zones.Adequate provision and competitive packages has been prepared for all our employees.
At Shem pro enterprises services, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
For now, we will contract the maintenance of our trucks to service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business stabilizes, we will assemble our own in – house maintenance team.
Below is the business structure and the roles that will be available at Shem pro enterprises services
Chief Operating Officer (Owner)
Admin HR Manager
Transport and Logistics Manager
Marketing and Sales Executive (Business Developer)
Accountant
Garbage Collectors
Waste Truck Drivers
Customer Services Executive
Job Roles and Responsibilities
Chief Operating Officer (Owner):
Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.Responsible for signing cheques and documents on behalf of the company
Evaluates the success of the organization
Transport and Logistics Manager
Accountable for coordinating drivers, vehicles, loads and journeys
Answerable for developing and confirming schedules
In charge of planning routes and load scheduling for multi-drop deliveries.
Responsible for booking in deliveries and liaising with customers.
Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
Directs all transportation activities.
Develops transportation relationships.
Responsible for monitoring transport costs.
Deals with the effects of congestion.
Confronts climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
Admin and HR Manager
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carry out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.
Marketing and Sales Executives (Business Developers)
Identifies, prioritizes, and reaches out to new clients, and business opportunities
Identifies development opportunities; follows up on development leads and contacts
Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Documents all customer contact and information
Represents Shem pro enterprises services in strategic meetings
Helps to increase sales and growth for Shem pro enterprises services
Accountant
Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managers with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Accountable for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company
Waste Truck Drivers
Assists in loading and unloading garbage.
Maintains a logbook of their driving activities to ensure compliance with regulations governing the rest and work periods for operators.
Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
Assists the transport and logistics manager in planning their route
Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
Complies with waste truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
Collects and verifies delivery instructions
Reports defects, accidents or violations
Garbage Collectors and Cleaners
Responsible for handling core services such as, ash and brush collection and hauling, waste and refuse collection and hauling, recyclable material collection and hauling, removal and hauling of rubble, construction and demolition debris, waste transfer station operation, and hauling amongst other related services
Handles any other duty as assigned by the transport and logistics manager
Customer Service Officer
Welcome clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
Receives parcels / documents for the company
Distributes mails in the organization
Handles any other duties as assigned by the human resources and admin manager.
6. SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats .So SWOT analysis is a technique for assessing these four aspects of your business.
As a result of our vision, mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring business consultant to help us conduct SWOT analysis for our business.
Shem pro enterprises services hired the services of a seasoned business consultant with bias in startups in Kenya to help us conduct a thorough SWOT analysis and to guide us in formulating other business strategies that will help us grow our business.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Shem pro enterprises services;
Strength:
Strong management, strong fleet operations, our garbage collection network will serve some of the largest population areas in taita taveta County size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and commercial players is what we can boast of.We are also not neglecting the power of our workforce and management.
Weakness:
Looking through our Business model, one of the business weaknesses that may pose a challenge to us is insufficient flow of finance to handle key issues such as purchase of brand new waste collection trucks and promotion of the business.
Opportunities:
Come to think of it, there is no household, business complex or shopping centres that does not generate garbage which means that a garbage collection company will always be in business as long as people live in the location that they operate in.
Threat:
Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), volatile costs, and rising fuel prices. Other threats that are likely going to confront Shem pro enterprises services is unfavorable government policies, seasonal fluctuations and of course emergence of new competitors within the same location where ours is located.
7. MARKET ANALYSIS
Market Trends
The market trends in the industry especially in kenya is indeed dynamic and at the same time challenging. But one thing is certain, once a garbage collection and management company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with waste generators who are compelled by the law and prefer clean environment.
Latest trends show that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expand, it is natural for them to produce more waste. So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection services industry.
Going forward, the demand for garbage collection services will continue to be driven by population growth, privatization and business creation. Additionally, the industry will benefit from the public’s growing interest in the recycling industry and clean environment.
In conclusion, fuel is one of the primary input costs for this industry, as it is used to power the trucks. Therefore, higher fuel prices increase industry costs.
8.Target Market
Prior to launching our garbage collection company, we are certain that there is a wide range of households and businesses who cannot successfully dispose their garbage without a garbage collection company like ours. We will ensure that we develop strategic pacts with corporate organizations, and estate managers. This will give us several options to generate revenue for our company.
We have conducted our market research and survey and we will ensure that all our garbage collection services are accepted in the market place. Below is a list of the people and organizations that we will specifically market our services to;
Residential buildings (households)
Business complexes
Shopping centres
Hotels
Restaurants
Schools
Public facilities
Construction sites
Printing Companies
Photo processing centers / Photo Labs
Hospitals
Our competitive advantage
Shem pro enterprises services no doubt is a new garbage collection company, which is why we took our time to do a thorough homework before launching the business. We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good garbage collection network and excellent relationship management, strong management, strong fleet operations, etc.
All our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
Marketing Strategy and Sales Strategy
The marketing strategy adopted by Shem pro enterprises services is going to be driven basically by professionalism, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like garbage collection and management services.
Shem pro enterprises services is strategically located and we are going to maximize the opportunities that is available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Shem pro enterprises services
Our goal is to grow Shem pro enterprises services to become the leading garbage collection company in kenya which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the waste collection services industry.
Shem pro enterprises services is set to make use of the following marketing and sales strategies to attract clients;
Introduce our garbage collection and management business by sending introductory letters alongside our brochure to shopping centres, hotels, residential areas and commercial business sectors .Print out fliers, business cards and strategically drop them in offices, libraries and public facilities.
Use friends and family to spread word about our business
Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local shops
Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
Leverage on referral networks such as agencies that will attract clients who would need our customized services
Advertise our company in relevant magazines, newspapers, TV and radio stations
Attend relevant expos, seminars, and business fairs to market our services
Engage in direct marketing approach
Encourage the use of Word of mouth marketing from loyal and satisfied clients
Sources of Income
Shem pro enterprises services will make sure that we leverage on our strength and the opportunities available to us in the county to generate enough income that will help us drive the business to stability.
Below are the sources we intend exploring to generate income for Shem pro enterprises services;
Waste and refuse collection and hauling
Recyclable material collection and hauling
Removal and hauling of rubble, construction and demolition debris
Waste transfer station operation
10. Sales Forecast
We are positioned to take on the available market in taita taveta County and we are quite optimistic that we will meet our set target of generating enough income/profits from the first month of operation and grow the business and clientele beyond.
We have been able to examine the waste collection services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Shem pro enterprises services, it is based on the location of our business and our competitive advantage;
First Fiscal Year: 6,000,000
Second Fiscal Year: 8,500,000
Third Fiscal Year: 12,500,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have plans to grow our business beyond taita taveta county which is why we have perfected plans to build our brand via every available means. We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate clients and households in the whole of taita taveta County and beyond which is why we have made provisions for effective publicity and advertisement of our garbage collection company.
Below are the platforms Shem pro enterprises services intend leveraging on to promote and advertise the business;
Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google to promote our services
Install our billboards in strategic locations all around taita taveta County
Distribute our fliers and handbills in target areas
Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff wear our branded shirts and our waste collection trucks are branded with our company logo.
12. Our Pricing Strategy
Shem pro enterprises services will make arrangement with various businesses and households on the company’s pricing to be based on drums of garbage collected and transported. We have perfected our plans to charge competitive rates.
We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both households and businesses means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.
Payment Options
The payment policy adopted by Shem pro enterprises services is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the Republic of Kenya.
Here are the payment options that Shem pro enterprises services will make available to her clients;
Payment via bank transfer
Payment via online bank transfer
Payment via mobile money
Payment via cheque
In view of the above, we have chosen banking platforms that will enable our clients make payment for our garbage collection services without any stress on their part.
13. Startup Expenditure (Budget)
When it comes to starting a standard garbage collection business, one is expected to spend the bulk of the startup capital on the purchase of garbage collection trucks and equipments. Aside from that, you are not expected to spend much except for paying the required fee in dump sites, paying of your employees and utility bills.
However, this is what it would cost us to start Shem pro enterprises services in the Kenya.
The total fee for incorporating the business in Kenya – kshs 6,500
The budget for liability insurance, permits and license – kshs 15,000
The amount needed to acquire a suitable office facility – kshs 20,000
The amount required to finance the purchase of the first set of garbage collection trucks and equipments- kshs. 3,800,000
The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): – kshs 160,000
The cost for accounting software, CRM software and Payroll Software –kshs 90,000
Other start-up expenses including stationery – kshs 30,000
Phone and Utilities ( water and electric) deposits – kshs 80,000
Operational cost for the first 3 months (salaries of employees, payments of bills ) – kshs 600,000
The cost for launching our official website – kshs 50,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions ) –ksh 30,000
Going by the report from the market research and feasibility studies conducted, we will need about kshs 4,881,500 to successfully set up a medium scale but standard garbage collection company in taita taveta County.
Generating Funds/Startup Capital for Shem pro enterprises services
Shem pro enterprises services is set to start as a sole proprietorship business that will be owned by Mr. Benard babu. He will be the sole financier of the company but may likely welcome other business partners when need for expansion arises.
These are the areas we intend generating our startup capital for our business;
Generate part of the startup capital from personal savings
Source for soft loans from business friends and family members
Apply for loan from the bank
N.B: We have been able to generate about kshs 500,000 (Personal savings – kshs380,000 and soft loan from business friends and family members – kshs 120,000) and we are at the final stages of obtaining a loan facility of kshs 5,000,000 from bank. All the papers and documents have been duly submitted.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they will have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes.
One of our major goals of starting Shem pro enterprises services is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our garbage collection and management services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Shem pro enterprises services will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List for work done
Business Name Availability Check: Completed
Business Incorporation:
Opening of Corporate Bank Accounts:
Opening Online Payment Platforms:
Application and Obtaining Tax Payer’s ID:
Application for business license and permit:
Purchase of Insurance for the Business:
Acquiring of trucks and relevant garbage disposal equipment:
Renting of Office Facility (Parking Yard for our garbage collection trucks) in :
Conducting Feasibility Studies: Completed
Startup Capital Generation:
Writing of Business Plan: Completed
Drafting of Employee’s Handbook:
Drafting of Contract Documents:
Design of The Company’s Logo:
Printing of Promotional Materials:
Recruitment of employees and drivers:
Purchase of furniture, office equipment, electronic appliances and facility facelift:
Creating Official Website for the Company:
Creating Awareness for the business (Business PR):
Health and Safety and Fire Safety Arrangement:
Establishing business relationship with key players in the industry:
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