TV Aerials Business.

As far as this business is concerned, no formal structured company is in existence. The company could have been in existence had there been a positive marginal propensity to save. What is in existence and there is no secret about it is a powerful picture of such a company which has remained permanently printed on the canvas of my mind. I am however confident of professionally managing the funds that will be invested in this company. Over the last 10years, I have had the opportunity to work in practical accounting environments of very busy manufacturing companies. You can therefore judge me based on this very honest truth which I am very relieved to disclose

The demography of this industry greatly changed the moment Kenya switched to digital signal transmission. During the analogue era the business was really booming because there was very little competition. During those days very few TVs could receive a crystal clear signal. 

In the analogue era, only one channel (KBC 1) was transmitting a VHF low, Family TV was on VHF high and the remaining about six channels were on UHF. It was rear to find one Aerial that could receive these Signals Crystal Clear. A common scenario was therefore people combining more than one Aerial. The only Aerial that could combine all the three Signals was “ Elleys” which was just available to the few due to its Price. With the coming of digital decoders, consumers are assured of more channels with crystal clarity. This turn of events has somehow weighed heavily on my business because although my Aerials are up to the task of delivering a digital signal, they are nowhere in the electricals shops to compete with the GOTv, Star-Times and Elleys. The reason being, I produce so little which ends up from Hand to Mouth and also the quality is so poor.

With proper funding, I see the vision I have for this company coming to reality. The industry looks good due to the following observations:

In conclusion, if what I am seeing here in the slums where I live I anything to go by, the future for this industry is bright. Kenyans are buying TVs, Aerials and accessories like hot cakes and all I hope is that this business proposal finds you kind attention for consideration.

My Customers are both Individuals and Corporate Entities. My policy all along has been to sell Aerials directly to the Customers who are distributed Country wide as follows;

 1) For Customers within Nairobi and its Suburbs I sell by way of installing the Aerials myself.

2) Some Customers buy Aerials, then go with them to other Towns far from Nairobi. In such cases, I just give Instructions.

3) Some Customers buy our Aerials without necessarily coming to our Workshop. Once we receive payment we send Aerials as registered parcel.

Like I have stated earlier, I have been in this business since 20. My customers have confidence in my aerials which in many case have served them for more than a decade.

The industry is indeed very competitive as new models are arising every other day. Competition is an ingredient whose result is seen in the highly refined quality of aerials.

Like any other business sector, survival in this aerial sector is about creativity and innovation. I do not fear competition because when it comes to creativity and innovation, I have cut an edge for myself. One thing that has kept my old customers so endeared to me is the fact that apart from selling the aerials, I have all the tactics of TV setup and installation.

The aerials that are currently in use to a greater extent are actually a pirate version of the aerials that entered the Kenyan market twenty years ago.  On many occasions I am called upon to help work on a failing signal. My job is always easy because I know how to fix a pirated part.

I am therefore gearing myself to run a high profile business knowing very well that competition is a non-is

Since mid-1999, we sell our Aerials directly to our Customers from the Workshop and these Customers who are satisfied with my Aerials and Backup services are the ones who market my Products to other Potential Customers across the Country. I will do Advertising and employing Sales Representatives also opening Outlets in Major Towns of Kenya.

 We look forward to having Outlets in major Towns of the Country. Once the State of the Art Machine. Once the Modern Tools will be in place we will be able to enhance the finishing of my Products; a step that will greatly boost my Competitive Space. This will be backed by services during and after sales services. We are also determined to maintain all factors that have made my Aerials to serve Customers for many years; thus giving them value for their Money.

By seeking a Financial Boost, we intend to expand our Volume of Production. Economies of Scale arising from high Production volume will translate into lowering Selling Price, which will intern translate into expanded Market share.

Another plan will be to introduce new Models into our Product line. These new models will put into consideration a wide range of Aerials that are currently in the Market. New Models will no doubt add our company a substantial Market share.

The world of TV Aerials is wide and diverse. Currently, we have narrowed down on 2 Vertical Models and 2 Horizontal Models. In our new strategy we intend to introduce 1 vertical and 1 Horizontal Model. To capture a fair Market share by the turn of 12 months from the commencement date, we will need a starting stock of 500 pieces of each model. This will require an estimated $92642(Based on the current Forex Rates), analysed as Follows:

We intend to shift from the Informal (Unstructured) operations as they are today to more Formal (Structured) operations. To achieve this we will need to invest in the following:

We intend to start with a one daytime shift of Eight Hours running from 08:00 Hrs. To 17:00 Hrs.  East African Time until such a time when the operations will demand more than one shift.

At the moment I am still a lone ranger playing my cards close to my chest. Due to this, a structured management does not exist yet.

If I could however delve deep into what I am anticipating upon receiving the funding, the first department to be put in place will be the Accounts Department which I will head. This department will be responsible for the following:

At this stage, the stores department will have another greater responsibility of keeping track of finished aerials. I will oversee the establishment of Finished Aerials inventory management system.

For this Company to run smoothly, it will be structured as summarised here below:

The following Financial statements are attached herewith in forecast Form:

Cash flow Focus for Twelve Months before Commencement.

NO.

DESCRIPTION

NOTE NO.

SOURCE. 

$

1)

Raw  Material

1

 Doshi Hardware- Kenya

66298

2)

Direct  Labor

2

 Ministry Of Labor - Kenya

10800

3)

Sales  Representatives  Expenses

3

 Ministry Of  Labor- Kenya

2400

 

TOTAL

 

 

79498

ITEM NO.

DESCRIPTION

SOURCE

NOTE NO.

$

1)

Godown  (Rented)

Danhill Consulting

4

15537

2)

Motor  Vehicles

Toyota -Kenya

5

20000

3)

Drilling  Machines

Jonstac

6

2312

4)

Computers

Jumia- Kenya

7

2330

5)

Furniture  and  Fittings

Artack Furniture- Kenya

8

1988

6)

Tools  and  Machineries

Doshi Hardware- Kenya

9

2878

7)

Workshop setup Expenses

See Sources on Note No. 10

10

1000

9)

Nominal Expenses

See Sources on Note No. 11

11

9066

 

TOTAL

55111

LEVEL

NUMBER OF PERSONNEL

POSITIONS COVERED

Strategic

1

C.E.O

Decision

4

Departmental Heads

Tactical

10

Middle to lower Cadre Staff.