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A GUIDE BOOK FOR THE MWABAYANYUNDO YOUTH GROUP 2011 Design Institute

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Page 1: WAZO Guidebook

A GUIDE BOOK FOR THE MWABAYANYUNDO YOUTH GROUP 2011

Design Institute

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Book WritingAuthor: Paul Wood, Emily Karechio

ContributorsPaul Wood, Ben Ilka, James Lee, Konina Biswas, Stephanie Stalker, Emily Karechio, Amina Horozic

Art Direction and Book DesignPaul Wood

PhotographyPaul Wood, Stephanie Stalker

Web Developmentwww.wazoinstitute.org - Konina Biswas

Copy EditingAmina Horozic

Printed in Nairobi, Kenya by Skyward Design and Marketing Ltd.

© 2011 2nd Edition by WAZO Design Institute

All Rights Reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from WAZO Design Institute and MCDF.

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A GUIDE BOOK FOR THE MWABAYANYUNDO YOUTH GROUP 2011

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For decades now, foreign entities have faced cultural hardships when design-ing for developing nations. Countless hours and millions of dollars have gone into elaborate research methods designed to understand underlying latent opportunities for income generation. People like Jason Morris, assistant pro-fessor of Industrial Design at Western Washington University, have identified useful design criteria for communities in neighboring Uganda. Morris states, “Given the right tools, training, and experience, Ugandan designers could be solving Ugandan problems with much greater success and without the cultural hurdles non-Ugandans face.” WAZO intends to do just that in Kenya. In order to focus our efforts, we found that more frequent shoe use in rural Kenya will prevent widespread injury and disease as well as provide access to education and elevated socioeconomic status. WAZO will be focusing on footwear as a starting point for addressing social impact and teaching design thinking to young Kenyans.

The goal of this project is to set up--and provide a replicable framework for--a design incubation facility that will teach low-income Kenyans skills in product development and need finding. This facility will provide a space to utilize ex-isting production methods to generate income. This income will then sustain the facility to develop new products. By focusing on footwear first, WAZO will utilize immediate existing skills to establish its presence, provide employment opportunities for locals, and provide a positive social impact both through healthy living and income for future educational opportunities.

In order to ensure that this project is a success, WAZO Design Institute is happy to be partnering with the Muthaa Community Development Foundation (MCDF) as a facilitator and local expert in social development.

Forward

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Muthaa Community Development Foundation

(MCDF) is a Kenyan Non Governmental and a non-profit making organization which was founded 2006 and is registered under Societies Act Cap 61 with its headquarters in Nairobi, Kenya. MCDF believes and works for community partnership to impact society for a better today and tomorrow.

We support community driven development initiatives through social invest-ment, resource mobilization, life skills based education in institutions and communities and capacity building. The foundation has mainly carried out its operations in Coast Province, sections of Central Province and Nairobi area.

Vision

Our vision is to be a centre of excellence that enables everyone to feel ap-preciated and ready to develop the community.

Mission

MCDF’s mission is to establish and promote projects and strategies that will empower and effect positive change in the community.

Aim

To build the Foundation big enough for our social needs yet small enough to LISTEN, CARE and ACCOMMODATE Communities’ Developers and Develop-ment.

CONTACTP.O. Box 16698-00620 NairobiPhone: 0733 590027Email: info@[email protected]: muthaafoundation.org

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FORWARD BACKGROUND 4 MCDF 5

THE WAZO PROJECT 8WHAT IS PRODUCT DEVELOPMENT? 10WHY SHOES? 13THE WAZO PROCESS 16

PART 1 DESIGN THINKING 18 DESIGN PROCESS 19 IDENTIFY 20 OBSERVE 22 BRAINSTORMING 24 CHOOSING/GROUPING 26 SKETCHING 28 RAPID PROTOTYPING 30

PART 2 BUSINESS DEVELOPMENT 32 BUSINESS DEVELOPMENT PROCESS 35 GROUP REGISTRATION 36 S.W.O.T. ANALYSIS 38 FINANCIAL LITERACY 40 BUSINESS PLAN 40 FINANCIAL RECORD KEEPING 44

CONCLUSION 50

BIBLIOGRAPHY 51ACKNOWLEDGEMENTS 51

Contents

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Who is this book for?

This is a guide book individuals in isolated environments who are unfamiliar with the design process and passionate about using design for social devel-opment.

What is WAZO?

In Swahili the word WAZO means Idea, and Kenya is a place filled with ideas and creative thinkers. All around one can see a burgeoning world of what IDEO’s Jane Fulton-Suri would describe as “thoughtless acts”: innovative improvements to everyday needs by everyday people.

WAZO was conceived of in 2010 by four MFA (and MBA) students at Cali-fornia College of the Arts in San Francisco. The research conducted for this project was done by Paul Wood in the summer of 2010 where he spent four months living with families in Kayafungo, Kenya.

WAZO Design Institute is partnering with the Kenyan NGO Muthaa Com-munity Development Foundation (MCDF) to create a design-and-production facility in the Kayafungo and Kaloleni locations of rural Eastern Kenya. WAZO is a replicable system for providing community members of isolated areas an opportunity to utilize the fruits of local talent to efficiently distrib-ute products and services to the marketplace. Design and social business workshops at the WAZO Institute are paired with tools aiding in product de-velopment, which allow for participants to generate income and collaborate ideas for future projects. WAZO will be launched with its first venture focus-ing on footwear; specifically, a protective shoe made using the local “kiri-kiri” production practice of repurposing old car tires. Our research has shown a profound need and desire for such a product and intends to utilize the community’s creative and intellectual equity to establish widespread social entrepreneurialism and product development in Kenya.

This project was made possible with the generous support from California College of the Arts Center for Art and Public Life IMPACT: Social Entrepre-neurship Awards Program.

The WAZO Project Design Institute

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WHAT IS PRODUCT DEVELOPMENT?

PRODUCT

A product has features, functions, benefits and uses tailored to specific customer requirements. Because of this it can be bought, sold, bartered or rented.

PRODUCT DEVELOPMENT

“Product Development is the process of creating, adapting or changing a product.” (CBI - Center for the Promotion of Imports from Developing Coun-tries, design and written by Aileen Brindle, 2007)

Product Development is the process by which goods are designed, taking into consideration production and distribution, and always keeping the mar-ket place in mind.

This is done so as to increase your chances for profitable business. Busi-ness status and plans, target markets, production skills, machine and tools and available budget are some factors considered during the product devel-opment process.

Product development is important because an entrepreneur’s business is only as successful as his/her existing product range. These products deter-mine the volume of sales in a given market and in turn the rate of business growth. This does not mean that a strong product range by itself gives you success in business. There are many different management and marketing aspects that determine the success of any enterprise. One should always invest time and resources into researching and developing new products.

Content on this page is credited to the Jua Kali “A Process to Progress” book.

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WHY shoes?

A TOOL FOR TEACHING DESIGN

Shoes do not only protect our feet from injury and disease, they represent modern trends and cultural practice. Shoes prove to be an ideal product for teaching product development in emerging economies for many reasons.

SOCIAL IMPACT

In Kayafungo Kenya many people travel without shoes on a day-to-day ba-sis. While this has helped to develop strong feet, there are still overwhelm-ing cases of injury, infection, and disease as a result of treading the terrain barefoot. A survey of 80 middle school and high school students conducted in the summer of 2010, showed an average of 10.6 foot injuries per student per year. Moreover, the local dispensary documented over 300 diagnosed cases of worms and other diseases, contracted through the feet in 2009. In addition chiggers, ticks, and other insects make contact through the feet, spreading disease and causing infection.

In a wider survey of 250 Kayafungans, ranging in age from 9 to 85, our team found that shoes are a highly desired commodity that protect one’s feet and represent sophistication and socioeconomic status within the community. The biggest hindrance to regular shoe use was income--large portion of the locals simply cannot afford such an investment. However, due to high avail-ability of local materials ready for manufacture and skilled local craftsmen, it has been proven that a pair of shoes with a high level of aesthetic and protective value can be produced at anaffordable price of less then 150 ksh. ($1.66) , to local consumers ensuring the ability of foot protection for all.

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Shoes as a Case Study

CULTURAL RELEVANCE AND FASHION

Shoes have a long history in hand made traditional craft and fashion. And, as sophisticated as the shoe industry has become, shoes are still surprising-ly labor-intensive objects. For this reason, textiles and other “needle indus-tries represent a crucial first rung on the ladder of economic development providing employment and training for a relatively unexperienced workforce” (Phillip Knight, CEO of Nike).

Even in rural areas like Kayafungo, rapid prototyping devices like sewing machines can be found in large numbers and be used with virtually no elec-tricity or other major operational costs.

Shoe design does not only utilize local craftsmanship and existing materials and tools, it represents modern trends and cultural practice through fashion.

Fashion is a story based medium in a constant search for the next best thing. Currently fashion has it’s desires in sustainability and seeks to represent this movement with new visual taste. By using the creative practice of repur-posing old car tyres into “Acala” tyre shoes, Kenyan designers can provide customers with a meaningful and sustainable relationship to their shoes.

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The WAZO Process

1 DESIGN Teams

2 Small Business

3 Local Institutions

Design and Economic Empowerment start with finding the right people. The WAZO Design Institute connects individuals, organizations, and government entities to facilitate economic empowerment through design.

WAZO’s first youth group is comprised of 12 talented students from Mwabay-anyundo Polytechnic School. These young tradesmen and women will be taken through a design process in order to develop a marketable product solu-tions and develop sustainability as a group.

Design Professionals like Chris Kipoto help to create a fast paced and creative learning environment in a particular area of focus. WAZO’s first venture focus’ on “Acala” or “Kiri-Kiri” tyre shoes.

Government Ministries like the Ministry of Youth and the Gender and Social Development Office help to sustain the efforts of WAZO Kayafungo by offering youth group managerial structure, loans, and financial literacy.

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impact overviewThis diagram represents the systematic impact that the WAZO Innovation Institute can have on the community.

Nairobi

Mwabayanyundo

production

Empowerment

innovation

Finance • Network • OfficeFacilitation

Development Design

YOuth Group

Mutha

a Com

munity Development Foundation

Sustainable Growth Goal Assessment Process Building

Segmentation • Sales Feedback

Local Leadership/CraftsmanshipProduct DevelopmentApplied Knowledge

virtuous cycle

Government SupportGroup Registration • Meritocracy Income GenerationImproved Health

market

Facility • Guide Book • Youth Group

wazo DESIGN institute

workshop1

2

3

Local Facilitators

Design Institute

Design Institute

Design thinkingDesign Educators • CNAM

Design Process • Universities

Design Institute

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Design Thinking

Give a man a fish and he will eat for a day,

Teach a man to fishand he will eat for a lifetime.

PART 1

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DESIGN Process

4

Topic: AccessibleHealth +Fashion

1

23

Identify

Observe

BrainStorm

Choosing/Grouping

5RapidPrototyping

Design is a process and learning it can help to empower individuals to take development into their own hands. WAZO’s first topic or theme was devel-oped by a design team at California College of the Arts after an extensive research program in Kayafungo, Kenya. This first theme was developed with the 2011 WAZO Mwabayanyundo Youth Group.

Give a man a fish and he will eat for a day,

Teach a man to fishand he will eat for a lifetime.

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Identify

Developing a Topic

Begin by exploring needs and desires within your community. You can start by identifying something of INTEREST to you and something you find to be IMPORTANT in your community.

Example: Let’s say you notice an important need for increased health in your community but your interests are in creating fashion items. Well, you might start with the topic Accessible Health + Fashion.Accessible means you can have-access-to Fashion and Health. One way to make something accessible is to make it affordable.

If you are having trouble identifying personal interests or important com-munity issues, use your local newspaper, village elders, friends, family, or community organizations to help you come up with ideas.

Once you develop a strong topic, look for people who are doing work in your area of interest? If you have been trained in textiles, find individuals produc-ing soft goods in your local area. What are they doing, and for who?

Also, if you feel that health is important, spend some time visiting your local dispensary or clinic. Learn what is most needed to promote healthy living.

4

Theme: Accessiblehealth +fashion

1

23

Identify

Observe

Brain/Game-Storming

Choosing/Grouping

5RapidPrototyping

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Important Issues in My Community (Examples)

Security, education, water, transport, communica-tion, health care, income, fashion, art, employment, gender equality, helping the disabled, music, trash burning, hand washing, latrines, sports, leadership, youth groups, reading, literacy, financial literacy, agricultural literacy, voting, equal rights, environment.

Interests of Mine (Examples)

Dancing, fashion, carpentry, singing, football

Topic Development 1) Interest: Fashion (Example) Importance: Health (Example)

2) Interest: Carpentry (Example) Importance: Transportation (Example)

TOPIC: Accessible Health and Fashion

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Observe

Learning About Your Topic

There are many ways to conduct research in your local area. One way is to put together questions and diagrams relating to your topic which can help you discover how other people in your community are involved with the topic. Ask your community how they feel they are relevant to what you are researching.

At this point you should have a theme to begin work around- (Accessible Health + Fashion). Learn as much as you can about your topic so that you can begin to brainstorm around it. You can start by researching in your area of interest. This will give you momentum to learn as much as possible about your topic. If you are interested in textiles and fashion, try interviewing some taylors in your community.

TIP: Don’t ask people if they like an idea you have for a solution. Instead allow them to freely express their ideas around the topic. This way you may learn something you weren’t expecting.

4

Theme: Accessiblehealth +fashion

1

23

Identify

Observe

Brain/Game-Storming

Choosing/Grouping

5RapidPrototyping

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List of Questions for Community. . .

QUESTIONS FOR HEALTH PROFESSIONAL about my topic

1) Are there ways that textiles could help prevent health problems?2) What are the most common health issues you deal with?

3) How do textiles play a role in your day to day ?

4) . . .

5) QUESTIONS FOR TEXTILES EXPERT about

my topic

1) How do customers benefit from your textiles? 2) Can you think of any textile designs that promote health?

3) What materials are good for protecting the body?

4) . . .

5)

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BRAINSTORMING

Making Ideas Visual

Creating spaces for collecting ideas is important. Designers often visualize ideas by making inspiration boards and maps of ideas. For this workshop you should collect and record all of your ideas about the topic and tape them to the wall.

Remember . . . • Get all of your ideas out of your head and on to paper • Brainstorming helps us to share ideas and learn from each other • Share as many ideas as you can about the topic • Diverse and different ideas are helpful • NO IDEAS ARE BAD

Based off of these ideas, develop more specific questions about our topic. These questions should be specific to your topic but open enough to have many answers.

Start your question with the words HOW MIGHT WE... The next word should be a verb- create, use, provide, make, find, teach, etc...

4

Theme: Accessiblehealth +fashion

1

23

Identify

Observe

Brain/Game-Storming

Choosing/Grouping

5RapidPrototyping

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How might we . . . ?

Example: How might we... create low cost formal fashion items? Try some of your own.

In the next step you will be deciding which ideas are the best choices for moving forward.

Voting on Ideas

Question ?

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Choosing/Grouping

Making frameworks

Choosing a few of the most relevant ideas can help to reduce the possibili-ties for a final solution. These ideas should come from your brainstorming wall.

As a group take some time to study your brainstorming wall. Look for pat-terns, reoccurring ideas, and things that jump out to you. Give everyone a pen or marker and allow everyone to vote by marking three ideas that they feel are most important. Some reasons ideas can be considered important are: because they occur several times on the wall or they seem sustainable or achievable by a youth group.

Group all of the marked ideas into the top three most marked categories. What kind of solutions fit all three of these requirements? If you are asking “How might we create low cost formal fashion items,” these words should help you answer that question.

Remember . . .

• Look for patterns and groups• Frameworks let everyone have a vote on what ideas are most important• Frameworks help you to limit the possibilities for solutions• Frameworks help make for easy planning

Try and come up with answers to your “How Might We” question that would fit in the middle of this framework.

Note: Answers to this question should address all of your three main ideas. Think of these three ideas as your guid-ing principles for creating a product.

4

Theme: Accessiblehealth +fashion

1

23

Identify

Observe

Brain/Game-Storming

Choosing/Grouping

5RapidPrototyping

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Affordable

LocalMaterial

Protective

Answers . . .

• Bad Example: Shoes• Good Example: Covered tyre-shoe for students

Protective Local Material Affordable

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Sketching

Drawing and note taking are an im-portant tool in design and should be done throughout. This kind of record taking helps designers visualize their ideas. Over time your drawings will become a valuable collection of details.

Being able to express details visually is very important for designers. This is true because once a product is out in the market place its only method of expression is through a visual and functional means. As designers we must make sure that products com-municate to customers, the way you hope they will. You cannot assume that everyone will see or use the prod-uct the same way as you. Instead you must design it in a way that they can discover its importance on their own.

Sketching can also help you to answer your “HOW MIGHT WE” question.

Maybe you have answered your ques-tion with the words “Covered Tyre Shoe.” OK, now show us what it looks like. What are the details about your idea that make it a perfect fit in the framework

Draw your idea in several views- top view, side view and front view. By doing this the group can understand as much as possible about what your idea is.

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Rapid Prototyping

Making things quickly

Now that you have answered your questions with some possible opportu-nities and products, build your ideas from paper so you can learn about your idea. At this point it is good to build many ideas quickly so to get bad ideas out of the way. Try making something based off of your “Groups and Choosing” ideas.

By using paper we can make a lot of ideas without using many expensive resources. These prototypes do not have to look pretty but you should be able to learn something from each one.

This can help you to examine the size, shape, and function as well as other physical attributes of your product.

4

Theme: Accessiblehealth +fashion

1

23

Identify

Observe

Brain/Game-Storming

Choosing/Grouping

5RapidPrototyping

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Notes About Prototyping

Don’t make anything you can’t learn fromAlways keep a clean spaceMake sure to take care of my toolsLearn from othersUse a straight edgeIf tools are supposed to be sharp make sure they are sharp before you use them.Don’t throw away your prototypes until the project is over.Enjoy , this is the fun part.

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Give a man a fish and he will eat for a day,

Teach a man to fishand he will eat for a lifetime.

PART 2Business Development Process

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Give a man a fish and he will eat for a day,

Teach a man to fishand he will eat for a lifetime.

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Business Development Process

Group Formation

Objective

To enable the group members to understand the need to work as a group.

Methodology

-Plenary discussions-Short presentation

Introduction

Group formation is the process of young people with common interest coming together to form a group. The group should comprise 12 -18 members and emphasis of gender balance i.e. equal presentation of men and women. While forming the group, we encourage inclusion of people from the minority groups such as; people with disabilities and PLWHA (People Living with HIV/AIDS) in the membership.

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Group Registration

The group is required to register with the Ministry of Gender, Children & Social Development Department of Gender And Social Development. The registra-tion process takes about 2 weeks.

• Requirements of Registration • 3 Filled Application Forms • 3 Copies of Minutes of meeting seeking registration and showing elected officials • 3 Lists of group members comprising; full names, ID. Numbers, and signature of each member • 3 Copies of the Groups constitution/ By Laws • Fees: Registration fee of a Youth/Women/Self-Help Group is Kshs. 1,000 o Each member to pay Kshs. 40 for membership card from the Ministry o Once registered, certificate annual renewal fee of Kshs.100 • Once registered: o Group is to submit a quarterly report to the Ministry o Allow accessibility of records to the registering authority

Bank Account Opening

The members need to hold a meeting and agree on which bank to open an account with. The requirements of opening the group’s account are;

• Group’s copy of registration certificate • Copies of ID’s for the three group officials i.e. Chair man, Secretary and Treasurer • Minutes indicating the interest of the group to open a bank account • Filled Application form by the group’s officials

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BUSINESS ANALYSIS AND PLANNING

Objective

To enable the group members to understand the need to plan a business and also apply the skills learnt in the day-to-day running of the group and business.

Methods

• Demonstration• Illustration in practice

Methodology

-Group discussions-Plenary discussions-Short presentation

Business Analysis is the study of the status of one’s enterprise. The impor-tance of Business Analysis is to measure the need to carry out the business by evaluating the customer’s need, production, and delivery of the goods or services. This is done by carrying out a SWOT analysis. (Example on next page.) S- Strengths (Nguvu)

W- Weaknesses (Udhaifu)

O- Opportunities (Nafasi)

T- Threats (Vitisho)

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An Example of SWOT Analysis

Strengths(Nguvu)

Weakness(udhaifu)

Business Plan

Has Dreams No business plan set out

Knows the basic of the arithmeticvery well

No available formal records

Capital may be used to take care of per-sonal expenses

Wants Enterprise to grow.

Financial Record Keeping

Working CapitalManagement

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Opportunities(Nafasi)

Threats(vitisho)

Learn easy to follow rules to keep basic records

Learn easy to follow steps to draw a business plan

Seek advice from com-panies offering business advisory services

Lack of data prevents the entrepreneur from calculat-ing realistic financial projec-tions

Market conditions may change and business plan may have to be readjusted

Possibility of misusing busi-ness working capital and business collapsing thereof

Learn easy to follow rules on how to manage busi-ness working capital pru-dently.

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Financial Literacy

Objective

To make the leaders understand how to handle primary documents

and also apply them in the day-to-day running of the business

Methods

• Demonstration • Illustration in practice • Short presentation

Business Plan

This is a document that helps an entrepreneur create a set of deci-sions based on the past, present and current and projected state of the business. Remember that your business plan should be only as big as what you need to run your business. Your business plan is like a road map to long-term success.

Have you ever been in a situation where you didn’t have a map to find your destination and got lost lasting precious time and money? Well, the same can happen to your business if you don’t plan out your busi-ness strategies.

Need for a business plan.

It gives you a clear direction where your business is heading. Many business owners just jump into creating a business without research-ing and making a concrete plan. Inevitably, they soon find that they are out of money and have no time or clear strategies how to market their business.

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8 Steps to Creating a Simple Business Plan By Herman Drost

Here are 8 simple steps to creating your own business plan (this is by no means a comprehensive plan but a primer to get you started):

1. Name of your business- create a name or reevaluate the name of your business. Does it integrate well with what you are selling? Is it easy to spell and remember? Is it a name that can be well branded over time?

2. Vision- what will your business look like 5 years from now? Think of how you may want to expand it to include other branches or extra employees.

3. Mission statement- this defines what your business really does, what activities it performs and what is unique about it that stands out from your competitors.

4. Goals and objectives- clearly define what you want to achieve with your business. Make sure they are quantifiable and set to specific time lines. Set specific goals for each of your products or services.

5. Strengths, weaknesses, opportunities, threats (SWOT)– by analyzing these characteristics in your business, you will get a clearer

idea of what it will take for you to not only to survive but also prosper.

This could include such factors as:

- Your companies own changing industry

- The marketplace which may change due to social and economic conditions.

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8 Steps Continued...

- Competition which may create new threats and/or opportunities.- New technologies which may cause you to change products or the process in how you do things.

Evaluating your SWOT will help you to:

- Build on your strengths- Resolve your weaknesses- Exploit opportunities- Avoid threats

Doing this analysis will help you create a more realistic strategic action plan.

6. Strategic action plan- this is the most critical step of your business plan, because without it, your business will not get off the ground. This should in-clude your sales and marketing strategies.

7. Financial plan- a business can operate without budgets, but it is clearly good business practice to include it. With budgets, you will be more likely to achieve your business objectives, you will make more-reasoned decisions and you will have better control of your cash flow.

For any period, a cash flow statement would include: - The cash and credit sales (or accounts receivable) expected to be received during the period.- The anticipated cash payments (for example, expenses for purchases, sala-ries, utility charges, taxes, office expenses etc.) - A description of other incoming and outgoing cash, with a calculation of the overall cash balances.

This will assess how much money is on hand to meet your financial obligations - what cash has been received and what has been paid out. Knowledge of this cash flow cycle will help you predict when you will receive funds and when you will be required to make a payment.

8. Measuring and evaluation- you wrote your business plan and set the goals with the intent of achieving them. So now break them down into measurable pieces and monitor the results regularly. A plan that cannot be measured is almost always destined for failure. Celebrate your wins and recharge yourself to accomplish your next goal.

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Decide beforehand what constitutes a real serious loss and what loss will be acceptable.

If you find your goals are unrealistic and unattainable, adjust them, but real-ize that it takes hard work to achieve them, so don’t give up easily.

Conclusion

Now that you have a business plan, make it a part of you by knowing and understanding it clearly. Build upon it continuously and refer to it often, so you remain on track to building a profitable business.

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Financial Record Keeping

Introduction

1. What are Primary Documents?

Primary documents are usually records where initial information of transaction in a GROUP BUSINESS is indicated. They provide evidence that a transac-tion has taken or took place.

2. What are Secondary Documents?

The recorded information is transferred to the books of account, which are basically referred to as secondary documents e.g. Cashbook and Ledger.

3. What Records Does a group business Keep?

• Members register• Assets register• Stocks cards and stock taking journal• Primary documents - Receipts - Payment vouchers - Purchase order book - Invoice - Goods receipt Note

4. Why Should a group business Keep Records?

• For future reference • For planning purposes • For stock management • To know group business debtors/creditors • To know cash position • To know its assets

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5. Members Register

Member’s register contains list of members and their personal names among other details, an example is given below.

MEMBER REGISTER

6. Assets Register

Register maintains record of GROUP BUSINESS assets, an example of an assets register is given here below;

ASSETS REGISTER

Date Supplier Quantity Cost Total (Kshs). Registration No.

5/9/05

KJ Suppliers

2 chairs

@Sh.500

each

Sh.100

-MWG/Chair/1

-MWG/Chair/2

 

M/No. Name Membership fee

Date of entry

Nominee Witness

Remarks

01 M. Kadzo 3 2/8/2011 E. Kazungu

 

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Financial Record Keeping continued...

7. Invoice

Is a list of goods purchased, showing their condition, quality, price and terms of sale by the supplier?

8. Receipt Book.

A document showing evidence that money INTO the GROUP BUSINESS is received and records are kept.

9. Payment Voucher.

A document showing evidence that money OUT of the group is paid and recorded. Example of a payment voucher is given in table on page 55.

• For planning purposes • To know cash position• For stock management • To know its assets• To know group business debtors/creditors

Payment Voucher.

NAME. DATE.

M/S………………………………………………………………….

Description Kshs. Cts

Authorization

……..…………………….

……..…………………….

Payee……………..……………

 

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STOCK JOURNAL

Stock Excess Stock Deficit Present Physical Stock Type of Stock Date

Qty Kshs. Qty Kshs. Qty Kshs

 

10. Stock Taking Journal

Stock taking journal shows quality of stock its status and value, example of the journal is shown here below.

STOCK TAKING JOURNAL

11. Order book

Order is used by a group business to order for goods or services. Example

is given in table below.

12. Delivery Note Delivery note is a document specifying that goods/services have been deliv-ered example of a delivery note is as below.

13. Cheques

Cheque is a negotiable instrument i.e. is a document used for paying or set-tling a debt.

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14. Cash Book

It is a record of all cash or cheque received and paid (in-out) in the transac-tion of business. The information recorded in the cashbook is from primary document. Example of a cashbook is given in table below.

CASH BOOK

15. Ledger

The ledger is a summary of all transactions in a business. It is a document of secondary entries. Final accounts are drafted from the accounts in the ledgers. When writing a ledger one should:-

Identify the account then use the Rule of; • Value Received “IN”• Value Given “OUT”Example of entries in the ledger is provided below;

Bahati Women Group bought materials worth Kshs.10, 000 entries in the ledger are therefore organized as-

Narration PV Receipt Payment Date

R No.

Cash

Bank Cash Bank Cheque

No.

1/9/05 Shares RI 2,000

3/9/05 Donation 200,000 05642

6/9/05 Shares 8,000

7/9/05 Materials 10,000

TOTALS 10,000 200,000 10,000 -

 

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CASH ACCOUNT

MATERIAL ACCOUNT

16. Statement of Affairs

This record reflects a summary of all accounts in the ledger. Example Below-

STATEMENT OF AFFAIRS

Conclusion

Committees should avoid making payments for unbudgeted activities. The committee appreciated the importance of keeping proper books of accounts for accountability and transparency purposes.

IN OUT

Materials Kshs.10, 000.

 

IN OUT

Cash Kshs.10, 000

 

Account IN OUT

Cash A/C Sh.10, 000

Materials Sh.10, 000

 

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ConclusionThe goal of this project is to set up, and provide a replicable framework for, a design incubation facility that will teach youth in isolated areas skills in product development and need finding. This system will provide a space to utilize existing production methods to generate income. This income will then sustain the facility to develop new products. By focusing on footwear first, WAZO will utilize immediate existing skills to establish its presence, provide employment opportunities for locals, and provide a positive social impact both through healthy living and income for future educational opportunities.

The goal will be met if WAZO is able to set up a youth group, initially employ at least half a dozen skilled craftsmen from the local trade school that can create 1000 pairs of shoes in 6 months, and distribute them to the Kaloleni marketplace in Eastern Kenya.

Once the production and distribution is set in place, the metric for success will be the actual adoption of the product by the consumers (aka. sales), the adoption of the curriculum which can be used for future product cycles, as well as reduction in foot related health problems and/or injuries.

By linking local trade schools with community entrepreneurs and represen-tatives for the Ministry of Gender, Children and Social Development, WAZO Design Institute creates a virtuous cycle that provides a sustainable social impact.

It is important to note that WAZO Design Institute is not about making shoes. It is about providing intellectual and economic empowerment through design and entrepreneurial exposure. It is hoped that shoes will be the beginning to ongoing innovative product development.

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BibliographyDrost, Herman. 8 Steps to Creating a Simple Business Plan for 2010. Ac-cessed July 2011 from: www.isiteBuild.com.

Odundo, Francisca, Haggar Olel, James Maillu, Laura Di Bugno, Ruth Abade, Suki K.K. Mwendwa. Jua Kali: A Process to Progress (Section on Product Development pg.20). Nairobi, Kenya; Ramco Printing works, 2008.

Wood, Paul. Lessons From Development (MFA Design Thesis California Col-lege of the Arts). San Francisco, CA; Blurb Publishing, 2011.

Acknowledgements

WAZO Design Institute’s most sincere thanks go to the youth and manage-ment at Mwabayanyundo Polytechnic School in Kayafungo for taking on the challenge of WAZO’s first pilot project. Another special thanks to Chris Kipoto, a talented shoe designer in Mariakani, Kenya who has agreed to work with the 2011 youth group on developing new “Acala” footwear. In addition, we would like to give a tremendous thanks to Emily Karechio on behalf of MCDF for her tireless effort in making WAZO a success.

WAZO would not have been possible without the humble support of Konina Biswas, James Lee, Ben Ilka, and Paul Wood who have spent the last year developing the framework for the project.

WAZO gratefully acknowledges the University of Nairobi (and the work of Terra Nuova) for their guidance. WAZO also recognizes the Ministry of Youth, the Gender and Social Services department, as-well-as the Kaloleni District Development Officer and District Commissioner for their blessings and sup-port. We would like to express our gratitude to all of the generous donors to the WAZO project. Your gracious support has provided an invaluable opportunity to the youth at Mwabayanyundo Polytechnic.

Last but not least, we would like to thank California College of the Arts Center For Art and Public life for their commitment to Social Entrepreneurship and for making this project possible.

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