Alet Manufacturing P.L.

Addis Ababa, Addisu Gebeya

alettop44@gmail.com
Teferi Gebeyehu
+251-944-10-44-44

BUSINESS PLAN
Concrete Top
Version I
Executive Summary
Topping material, for different purposes, such as countertop, tabletop & vanity top has recently been a
concern for home owners. Marble, granite, stainless steel, laminated chip wood, mirror, cultured marble are
the most common topping materials currently available. In recent years, the so-called Fiber Reinforced
Concrete top has become popular in some parts of the world. This is due to the fact that this concrete has
good scratch resistance, appealing look, ability to be cast into any shape & has fairly affordable price.
In Ethiopia, probably, there is no single company that produces concrete topping material. Hence, there is
great opportunity to make use of despite the challenge of introducing and producing the product from scratch.
concrete top production, as a business, is rewarding.
Currently, price of ordinary topping material ranges from 1100 Br./m2 to 2000 Br./m2. The product (Concrete
top) is expected to be sold at a price of 1300 Br./m2 in normal circumstances. In the majority of cases, the
price will be expected to be in the range of 800 - 1200 Br./m2. Hence, an average price of 1300 Br./m2 will
realize the intention of providing competent product at a reasonable cost.
Production of concrete top is simple once the required concrete properties are achieved. Simple tools, easily
available materials, simple technology, less manpower requirement characterize production of concrete top.
Quality control is carried out in three phases, each requiring strong follow up to ensure acceptance of the
final product in the market. The variable cost is estimated to be 850 Br./m2. The indirect cost of production is
16,900Br. per month, on average, considering the start-up nature of the business.
By its nature, the topping material is simple to produce once the right procedure is adopted along with the
use of the right materials. Hence, subcontracting any part of production is unreasonable and unlikely.
However, once the business is well established it needs to reach the potential customers by providing finished
product which is ready to use (i.e. with the leg included).
The business firm shall preferably be managed by civil engineer who has good understanding of fiber
reinforced concrete and good knowledge & experience of organization and labor management. The
organizational structure consists of craftsmen, labor, cashier and guard with the manager right at the top of
them in the hierarchy.
The total set-up cost is about 125,000 Br.. The average selling price of the product is 1300 Br. which results
in gross profit margin of 38% and net profit margin of 21%. The annual minimum sales required to break even
(i.e. cover all fixed and variable costs) is 527,280 Br..

I
Table of Content
Executive Summary ........................................................................................................................................ I
Table of Content ............................................................................................................................................ II
List of Figures ............................................................................................................................................... III
List of Tables ................................................................................................................................................ IV
Abbreviations .................................................................................................................................................V
1. Business Description & Location........................................................................................................... 1
1.1. Business Description ..................................................................................................................... 1
1.2. Location ......................................................................................................................................... 1
2. Marketing Plan ...................................................................................................................................... 2
3. Production plan ..................................................................................................................................... 4
3.1. Supply sources .............................................................................................................................. 4
3.2. Equipment ..................................................................................................................................... 6
3.3. Production process ........................................................................................................................ 7
3.4. Quality control .............................................................................................................................. 10
3.4.1. Pre-concreting ..................................................................................................................... 10
3.4.2. Concreting ........................................................................................................................... 10
3.4.3. Post-concreting .................................................................................................................... 11
3.5. Subcontracting ............................................................................................................................. 11
3.6. Production cost ............................................................................................................................ 12
4. Management Plan ............................................................................................................................... 13
4.1. The manager ............................................................................................................................... 13
4.2. Organizational Structure .............................................................................................................. 13
4.3. Responsibility of the manager ..................................................................................................... 13
4.4. Personnel hiring and training ....................................................................................................... 14
5. Financial Management Plan................................................................................................................ 15
5.1. Set-up costs and Break-even analysis......................................................................................... 15
5.2. Cash flow and profit and loss statement ...................................................................................... 16
6. Appendix ............................................................................................................................................. 19
6.1. Resume of the manager .............................................................................................................. 19
6.2. Brochure ...................................................................................................................................... 22

II
List of Figures
Figure 1: Temporary Business Location Map ................................................................................................ 1
Figure 2: Summary of production process ..................................................................................................... 9
Figure 3: Organizational Structure ............................................................................................................... 13

III
List of Tables
Table 1: Market Price of Typical Countertops ................................................................................................ 3
Table 2: Supply/Sources of concrete ingredients .......................................................................................... 4
Table 3: Production Tools and equipment ..................................................................................................... 5
Table 4: Form Materials ................................................................................................................................. 5
Table 5: Working platforms ............................................................................................................................ 5
Table 6: Health and Safety tools and materials ............................................................................................. 6
Table 7: Direct production cost .................................................................................................................... 12
Table 8: Training .......................................................................................................................................... 14
Table 9: Set-up costs ................................................................................................................................... 15
Table 10: Break-even analysis ...................................................................... Error! Bookmark not defined.
Table 11: Cash flow forecast ....................................................................................................................... 17
Table 12: Profit and loss forecast ................................................................................................................ 18

IV
Abbreviations
CFM Cubic Feet per Minute
CONCRETE Fiber Reinforced Concrete
GFCI Ground Fault Circuit Interrupter
HVLP High Volume Low Pressure
OPC Ordinary Portland Cement
Psi Pound per Square Inch
PVC Poly Vinyl Chloride
Rpm Revolutions per Minute
UV Ultra Violet

V
 Business Plan

1. Business Description & Location

1.1. Business Description
Proprietorship: Sole proprietorship
Business type: Manufacturing
Products: Fiber Reinforced Concrete Tops for tables, vanities & counters
Business status: Start-up/new to the local market
Profitability: Highly profitable and it can be expanded into precast concrete element manufacturing for
buildings & providing decorative concrete construction for the construction industry keeping in mind the
scarcity of specialty contractors in the field.
Business open date: The business is expected to open on July 10, 2017.

1.2. Location
The production facility is supposed to be at Addisu Gebeya, Addis Ababa at the beginning and shifts to
other appropriate places later on. The business needs simple warehouse with electricity and water supply
for production. The warehouse shall be at least one hundred square meters with access to medium sized
truck for loading and unloading. During the early ages of the business, the products are supposed to be
sold to furniture manufacturers so that they can fix base or leg to the tops and sale for end users.
Therefore, there is no need to establish shop. As the business grow, however, at least one shop shall be
established at one of the city center to get connected with potential end users.

Alet Decorative Concrete

Figure 1: Temporary Business Location Map

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2. Marketing Plan
The product is thought to be sold to small and medium scale furniture manufacturers. There are adequate
table and counter manufacturing companies to buy the product with in 5 km radius of the production facility.
In addition, when the business gets improved subcontracting the led/base work and selling the product, now
complete coffee table, to the end users will be carried out.
The need for fiber reinforced concrete tops in United States of America have started to grow in recent years
due to the following reasons;
 Superior scratch resistance
 High level of flexibility in terms of color, shape, edge profile, and surface finish
 Exceptional durability comparable with natural stones like marble and granite
 Easy to create natural look which is vital regarding modern design of furniture
 Fair price of concrete coffee tables and counter tops as compared to natural stones
Keeping in mind the aforementioned driving factors to choose fiber reinforced tops and the situation in
Ethiopia regarding topping materials, the products could be made to fit customer’s requirement by employing
several methods such as;
 Polishing to required level of sheen (i.e. Matte, Medium Gloss or High Gloss).
 Providing different texture types like exposed aggregate, salt and pepper and plain finish.
 Providing different color and patterns using different dyes/pigments and stickers to help create
patterns, pictures and words requested by customers.
 Building state of the art forms from available materials to produce tops tailored to convey a unique
antique message.
 Creating strong topping material using fibers, different chemicals and thoroughly selected
concrete ingredients like silica sand, ordinary Portland cement and calcium carbonate fillers.
 Using locally available material to a greater extent as far as possible and increasing production
efficiency to make the products affordable to at least middle-class customers.
There are no business firms engaged in producing exactly the same products. However, there are many
companies which produce/import similar products such as mirror, chip wood, cultured marble, natural marble
and granite tops. Hence, these materials are more or less the potential competitors that the CONCRETE is
up against in the market.
Mirror has now a good image regarding its use as table top especially for café and restaurants. Chip wood,
as the most widely used topping materials for office desk, is not highly appreciable to be used as coffee table

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top and counter top due to durability & water resistance issues and artificial look. Cultured marble is rare as
compared to other topping materials due to high cost of the material even though the quality is very good. It
is usually used as vanity top because it is highly water and stain resistant if well produced. In addition, only
one known company produces cultured marble in Addis Ababa. The drawback is that it feels very artificial
and glossy. Marble and granite are most widely used as counter top in kitchens due to their superior
resistance against scratch & stain, strength, appealing natural look and durability. In addition, they can be
used as counter tops in banks and other service centers. Their drawbacks could be practical restraints on
color, shape & texture and affordability.
The product (i.e. Fiber Reinforced concrete topping) is expected to be sold at a price of 1000 Br./m2 in normal
circumstances. However, pricing will depend greatly on time required to produce, mold usage, shape
complexity, availability of special features and finishing type. The above price sets a baseline. In the majority
of cases, the price will be expected to be in the range of 800 - 1200 Br./m2. The pricing strategy is customer-
based type with penetrating price applied during the first year of starting the product sell.
The pricing strategy along with the overall quality of the product required by potential customers creates a
good image of “providing better product at a lower cost” just by employing locally available material and
simple production methods. Currently, price of ordinary topping material ranges from 950 Br./m2 for laminated
chip wood to 1700 Br./m2 for granite and marble. Black granite is unusually expensive that it costs about
4000 Br./m2. Fiber reinforced concrete top is actually more or less comparable with natural stones (i.e. granite
and marble) in overall quality. Hence, an average introductory price of 800 Br./m2 will realize the intention of
providing competent product at a much lower cost.
Table 1: Market Price of Typical Countertops

Material Dimension Price per piece (Br.) Price per square meter (Br.)
Granite (Normal) 220*63*0.15cm 2400 2000
Granite (Black) 220*63*0.15 cm 5500 4000
Laminated Chip wood 240*60*0.3 cm 1350 1100

As a new start-up business, it shall be promoted through fly paper, brochures & social networks. First it will
be introduced to potential interior design companies and then to local shops engaged at selling similar
materials. When the company gets bigger and bigger, mass media like TV and Radio will be used.

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3. Production plan
3.1. Supply sources
The materials, tools and equipment used in the production of CONCRETE topping material is divided
into five major groups. These are;
 Concrete Ingredients
 Tools and equipment
 Form materials
 Working platforms
 Health and safety tools
Table 2: Supply/Sources of concrete ingredients

Ingredients Source/Supply
Ordinary Portland Cement Local retailers
Silica Sand Transport from nearby quarry like Abay gorge.
Shake-on Hardener CONmix
Water Tap
Fiber Local building material retailers
Calcium Carbonate filler DH Geda Minerals
Superplasticizer Construction chemical suppliers. [AB HAM Enterprise, CONmix,
Rheofluid etc.]
Hardening accelerator (e.g. Jigra International
Calcium Chloride)
Dye/pigment Sachem chemicals, wood stain suppliers, local retailers
Decorative aggregate Nearby river & special quarry, oversize material from silica sand
screening
Sealer Kadisco, Dil

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Table 3: Production Tools and equipment

Production Tools and Equipment Supplier/Sources

Polisher Local retailers
Mist coat hopper gun Import from USA
Air compressor Local retailers
Caulking gun Local retailers
Heat gun Local retailers
High shear mixer Forever PLC, OK Makita Dealer at Anwar Mosque
Circular saw Local retailers
Sand screening machine To be custom made by mechanic at home
Grinder Local retailers
CONCRETE Roller Import from USA
Caulking tool Import from USA
Steel trowel Local retailer
Digital balance Local retailer

Table 4: Form Materials

Form material Supplier/Sources

Glass Glass shops at H/Giorgis bridge
100% Silicon sealant Local retailers
Form release agent Construction chemical suppliers
Double stick tape Local retailers
Rubber side form Unity Rubber
Form side liner -

Table 5: Working platforms

Working platform Supply/Source

Moving table To be custom made by mechanic at home
Mold shelf >>
Lifting table >>

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Table 6: Health and Safety tools and materials

Tools and materials Supply/Source

Rubber glove Local retailers
Textile glove >>
Ear plug >>
Ear muff >>
Shield goggle >>
Dust mask >>
Chemical mask >>
Safety shoe >>

3.2. Equipment
The main equipment used during the production of concrete topping material are high shear mixer, HVLP
air compressor, mist coat spray gun with hopper & wet polisher. These are the main driving factors
governing production capacity along with mold and platforms. Hence, it is important to speculate on
required quality and capacity of the aforementioned equipment.
High shear mixer, Bosch GRW 12, is drill mixer type intended for high viscous material like CONCRETE.
It requires 1200 watt of electrical energy. It has a capacity to mix up to 50 kg of material at once. In
addition, the mixing time is approximately 1 to 2 minutes. Hence, the equipment could handle more
material than required for one-meter square of CONCRETE topping material.
HVLP air compressor is used to spray various materials like sealers & mist coat. It realizes the use of
thin colored mist coat on the top of the countertops which greatly reduces the cost of white cement and
dyes/pigments. The compressor shall have an air flow of at least 6.2 CFM and pressure of at least 12.5
Psi as governed by the requirement of mist coat spray gun.
Mist coat spray gun with hopper, as the name implies, it is used to shoot the mist coat to make attractive
and almost flawless thin (1 - 2mm) film of cement-sand-dye slurry. It shall have a hopper gun with variable
nozzle orifice sizes.
Wet polisher is used to grind and polish concrete after curing. It removes scratches and minor flaws. The
major use of the wet polisher is that it makes the CONCRETE topping very smooth, scratch resistant,
shinier and appealing. The wet polisher shall be variable speed type with the rotational speed being
preferably in the range of 2000 rpm to 4000 rpm. In addition, it shall have GFCI along with it and disk
diameter of about four to seven inches.

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3.3. Production process

Production of concrete top material involves about eleven processes as outlined below;
1. Material preparation
 Material preparation includes getting ready all material, tools and equipment ready before
any task begins.
 Clean tools and measure ingredients of concrete at the required accuracy and precision.
 PVC side forms shall also be cut.
 Drawings shall be available at working platform so that any reference could be made to it
just in case.
2. Formwork construction
 Get ready the cleaning form base.
 Lay it on a level, straight and firm working platform/table.
 Fix PVC side forms to the form base using double stick tape firmly.
 Caulk the internal edge of the mold/form using 100% silicon sealant and spherical caulking
tools.
 Apply form releasing agent on the form.
3. Mixing
Backer coat
 Pour sand, filler and cement and then dry mix using the high shear mixer
 Add 80% of mixing water with the optimum amount of superplasticizer and hardening
accelerator (i.e. calcium chloride) and wet mix using the same mixer for about 1 minute.
 Add fiber and mix for not more than 30 seconds at a relatively lower speed to prevent bundle
disintegration.
 Add the remaining water progressively and mix until the concrete gives the required
consistency.
Face coat
 Pour sand (i.e. passing 600-micron sieve and retained on 300-micron sieve), filler, cement
& pigment, if any, and then dry mix using the high shear mixer.
 Add 80% of mixing water with the optimum amount of superplasticizer and hardening
accelerator (i.e. calcium chloride) and wet mix using the same mixer for about 1 minute.

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 Add the remaining water progressively and mix until the concrete gives the required
consistency.
4. Spraying
 Add the face coat mix to the hopper gun.
 Connect the hopper gun with the air compressor.
 Try on testing board and adjust air flow and orifice size if required.
 Shoot on the prepared form starting from the edges and apply in circular hand motion to the
base form.
 Brush the surface of the face coat slightly.
 Shoot the second layer in the same fashion.
5. Pouring
 Wait about 15 minutes after the face coat is shot.
 Pour the backer coat, first as all edges and then on the bottom form.
 If the finish type is exposed aggregate, scatter the aggregate at the required pattern, density
& position and then press down into only the first layer of the backer coat.
 Consolidate using roller and brush for application of next layer of backer coat.
 Repeat pouring and consolidating until the required thickness of the topping material is
achieved.
 Cover the topping material for the required period of time depending on the weather &
accelerator used using curing membrane. In most cases 24 hours is sufficient.
6. Curing
 Water the concrete covered with jute bags or similar blanket.
7. Demolding
 Carefully remove the side PVC forms by detaching the double stick tape one by one.
 Clean silicon sealant from the edges and any chipped off material from the base form to
prevent scratch of both the base form and more importantly the product.
 Slowly slide the product in the shorter direct unit a grip of the outer concrete is got and turn
180o and put downside up.
 Check any flaws in the concrete and grout if necessary. If grouting is mandatory, use similar
material in composition and more importantly color. Wait for at least 24 hours while curing
using membrane or watering before any further processing.

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8. Polishing
 Depending on the type of finish required select the starting diamond pad (i.e. cup wheel or
50 grit for exposed aggregate, 200 grit for sand and pepper & 400 for plain finishes)
 Change diamond pads progressively from the starting pad to the next grit size and proceed
until the required finish is achieved. If topical sealers are used honing up to 400 grit is enough
otherwise the sealer barely stick firmly to the surface.
9. Staining
 Clean any dirt or water droplet on the surface.
 Lay or stick pattern stickers to the surface.
 Spray pigments/dyes on the surface as per the design.
 Remove the excess pigment/dye using towel or similar material.
 Reapply until the required shade of color is achieved.
 Wait until it dries for the next operation.
10. Sealing
 Clean the stained concrete.
 Mix sealer (i.e. lacquer) carefully with solvent and pour into spray gun and start the air
compressor.
 Adjust the air flow and steadily apply in straight line motion on the concrete until all areas
are covered and wait for about 5 min and reapply as per the recommendation of sealer
manufacturer.
 Cover the sealed concrete from dust until the sealer completely cures.
11. Packaging
 Cover the product using thin cushioning material.
 Pack the product using carton boxes pre-designed to fit specific sizes.
 Tick on the carton based on shape, size, pattern, color and thickness of the topping material
in it.
Material Formwork
Mixing Spraying Pouring Curing
Preparation Preparation

Packaging Sealing Staining Polishing Demolding

Figure 2: Summary of production process

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3.4. Quality control

The quality control of the product is carried out in three phases. These are;
3.4.1. Pre-concreting
During this stage, the ingredients are required to have some minimum quality in terms of their
respective property before being mixed with other ingredients. The major materials to care for during
this stage are sand, water, fiber, dye/pigments and admixtures.
 Sand: Gradation, organic matter and dirt, silt content, specific gravity
 Water: Impurity, chloride
 Fiber: Mechanical strength, alkali resistance, length, bundle size
 Dye/pigments: UV resistance, tinting power
 Admixtures: Expiry date, class, type
Accurate and precise measurement of ingredients shall also be carried out before any concrete work
begins. This ensures the achievement of expected consistency and mechanical strength of the
finished product.
In addition to the concrete ingredients, formwork quality shall be thoroughly inspected before any
concreter work begins. This is the key to successful CONCRETE product as every flaw in the
formwork will exactly be copied to the product and become visible after the formwork is removed.
Hence the formwork shall be;
 Adequately firm
 Cement slurry tight
 In conformance with design alignment, size & shape
 Scratch free
 Release agent coated
3.4.2. Concreting
In this context, concreting involves
 Mixing: Consistent mixing time, proper mixing tool, proper procedure
 Spraying: Choose the right orifice nozzle size, make sure to have the right consistency of
mist coat, adjust air pressure and volume, watch for hand movement and directions, control
mist coat thickness throughout, wait reasonable time before pouring the backer coat
(Preferably 10 – 15min)

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 Pouring: Use proper container and trowel, apply in layers of consistent and more or less
equal thickness, roll between layers, do not over work
 Covering: use proper curing membrane and seal until the concrete is ready for further curing
3.4.3. Post-concreting
Once concreting is complete, it is required to perform the following set of actions;
 Curing: Use appropriate method of curing such as watering for sufficient time
 Demold: Detach side forms and liners, if any, carefully, remove silicon sealant at the edges,
slide the product and turn upside down
 Grout: Check for any kind of flaws, if any, grout using the same material as the original, wait
at least 24 hours
 Grind/polish: grind if required, polish starting from either 200 grit or 400 grit whichever is the
appropriate finish with steady hands and wet polishing machine, touch the surface to feel
the smoothness
 Seal: Apply penetrating sealer if the topping is polished above 400 grit or topical sealer if the
topping is honed only to 200 grit

3.5. Subcontracting
By its nature, the topping material is simple to produce once the right procedure is adopted along with
the use of the right materials. Hence, subcontracting any part of production is unreasonable and unlikely.
However, once the business is well established it needs to reach the potential customers by providing
finished product which is ready to use. What makes the topping material complete and ready to use is
base or leg. Actually, there are a number of alternatives to choose from regarding material type such as
aluminum, wrought iron and MDF.
There are actually no special table base suppliers unless they are requested to do so. Hence, careful
deal must be made with suppliers to provide the business consistently qualified base of different material
type. During the initial phase of the business, production capacity is limited to 900 units/piece of concrete
topping material annually. Hence, table base suppliers shall at least have a capacity to provide 1200
units per year with safety factor included to account for delays associated with different factors such as
electricity. In addition to capacity in terms of production, the supplier needs to deliver the table bases
with in the time frame agreed up on in the contract.
Fortunately, there are many local business firms who can constantly deliver table bases at the required
quality when we consider wrought iron and MDF as a material type. Aluminum table bases are rarely

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available in the market. Hence, appropriate contractual deal shall be prepared to realize the import of
such table bases which adds value to any material placed on it.

3.6. Production cost

Production cost could conveniently be divided into two categories as direct and indirect/fixed. The direct
cost basically includes cost of material and perishable tools. The direct cost associated with concrete top
production (i.e. per one square meter) is shown in table 7. The indirect cost of production may include
space/building rent, man power, electric power, administration & marketing. The indirect cost of
production is 16900 Br. per month, on average, considering the start-up nature of the business. The
breakdown of the indirect (fixed cost) is clearly shown in table 12 at the financial plan section of this
document.
Table 7: Direct production cost

Category List Cost per square meter Total cost per category
(Br.) (Br.)
Ingredients White OPC 200
OPC 70
Superplasticizer 20
Sand 8
Fiber 20 650
Coating 300
Filler -
Pigment 30
Decorative aggregate 2
Forming Release agent 5
materials
Silicon sealant 45
50
Form -
Double stick tape -
Polishing Diamond polishing pads 90
100
Sand paper 10
Packaging Carton + Cushion 50 50
Total 850

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4. Management Plan
4.1. The manager
The business firm shall preferably be managed by civil engineer who has good understanding of fiber
reinforced concrete and good knowledge & experience of organization and labor management. The one
who is intended to be manager have bachelor of science in civil engineering and four-year experience in
supervision of concrete construction at hydropower project. Even though his experience has much to do
with the conventional concrete, it helps him to understand the basics of concrete which is critical even
for CONCRETE.

4.2. Organizational Structure

The organizational structure of the new business firm should look like the one depicted in figure 1 as
hierarchy of various personnel in the company. This organizational chart is actually employed at the early
age of the business. Hence, once the business gets well established, more tasks are added, more
personnel are employed, the hierarchy will be changed to fit to the growing company’s capacity and work
flow.

Manager

Crafts Man Labor Cashier Guard

Figure 3: Organizational Structure

4.3. Responsibility of the manager

The duties of the manager or management team, if any, will be;
 Make a deal with customers, suppliers and subcontractors on behalf of the company.
 Assign labor to different tasks
 Certify/make payment
 Inspect product quality
 Recruit and hire employee

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4.4. Personnel hiring and training

The basic criteria to hire personnel to different tasks is education level at the first glance. For guard
position, completion of at least eighth grade is mandatory. Crafts man and labor shall complete tenth
grade whereas the cashier needs to have at least diploma in accounting.
Experience is not as mandatory as educational levels. However, it may have advantages for crafts man
and cashier as these work positions are best fulfilled by personnel having experience in similar company.
Unfortunately, since the company is relatively new in view of the material types it is going to produce, it
is difficult to get experienced personnel. Hence, training become vital during early stage of the business.
Table 8: Training

Type of Training Intended for Provided by Objective

Hands on Crafts man, labor Manager To make personnel familiar
with fundamentals of
CONCRETE and as a result
increase quality of product.
Technical Seminar Crafts man, labor Manager Create understanding
Health and safety All Manager Reduce the vulnerability of
employees at work place for
various work-related
accidents.

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5. Financial Management Plan

5.1. Set-up costs and Break-even analysis
The total set-up cost is about 60,000 Br.. It includes the cost for business registration, equipment, and
starting operations. The major cost is for equipment as shown in table 9. No borrowing is required to start
the business.
Table 9: Set-up costs Table 10: Break-even analysis

Set-up costs Break-even analysis

Setting up the business Average selling price per Br.1,300

unit
Business registration Br.2,000 Average cost of each unit Br.800
Gross profit margin 38%
Plant and equipment Fixed costs Br.202,800
Sales to break even Br.527,280
Equipment Br.80,000
Number of unit sales to 406
Formwork Br.20,000
break even
Starting operations
Note: “Unit” implies one square meter of the
Advertising and promotion Br.3,000
Raw materials and supplies Br.10,000 topping material.
Working capital Br.10,000

Start-up capital The average selling price of the product is 1300 Br.
which results in gross profit margin of 38% and net
Equity investment Br.125,000
Borrowings profit margin of 21%. The annual minimum sales
Total Br.125,000 required to break even (i.e. cover all fixed and
The result
variable costs) is 527,280 Br. (i.e. 406 units).
Total set-up costs Br.125,000
Surplus funds 0
Borrowings required 0

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5.2. Cash flow and profit and loss statement

Projected cash flow has few and simple cash flow components. This is due to the fact that there are no
investors, lenders, microfinanciers and any liabilities. The cash flow is projected on a monthly basis, as
shown in Table 11, so as to show details of the business in a more manageable manner to fit such a
small new business. Annually, it is intended to produce 900 units which is well above the number of units
required to break even (i.e. 406).

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Table 11: Cash flow forecast

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Totals
Starting cash
Br.10,000 Br.17,100 Br.29,200 Br.35,800 Br.47,400 Br.64,000 Br.85,600 Br.101,700 Br.122,800 Br.148,900 Br.180,000 Br.216,100
position

Incoming

Cash sales Br.26,000 Br.39,000 Br.52,000 Br.65,000 Br.78,000 Br.91,000 Br.104,000 Br.117,000 Br.130,000 Br.143,000 Br.156,000 Br.169,000 Br.1,170,000
Total Br.26,000 Br.39,000 Br.52,000 Br.65,000 Br.78,000 Br.91,000 Br.104,000 Br.117,000 Br.130,000 Br.143,000 Br.156,000 Br.169,000 Br.1,170,000

Outgoing

Fixed costs Br.2,900 Br.2,900 Br.13,400 Br.13,400 Br.13,400 Br.13,400 Br.23,900 Br.23,900 Br.23,900 Br.23,900 Br.23,900 Br.23,900 Br.202,800
Administration Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.12,000
Marketing Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.400 Br.4,800
Operations Br.1,500 Br.1,500 Br.12,000 Br.12,000 Br.12,000 Br.12,000 Br.22,500 Br.22,500 Br.22,500 Br.22,500 Br.22,500 Br.22,500 Br.186,000
Variable costs Br.16,000 Br.24,000 Br.32,000 Br.40,000 Br.48,000 Br.56,000 Br.64,000 Br.72,000 Br.80,000 Br.88,000 Br.96,000 Br.104,000 Br.720,000
Administration Br.0
Marketing Br.0
Operations Br.16,000 Br.24,000 Br.32,000 Br.40,000 Br.48,000 Br.56,000 Br.64,000 Br.72,000 Br.80,000 Br.88,000 Br.96,000 Br.104,000 Br.720,000
Total Br.18,900 Br.26,900 Br.45,400 Br.53,400 Br.61,400 Br.69,400 Br.87,900 Br.95,900 Br.103,900 Br.111,900 Br.119,900 Br.127,900 Br.922,800

Result

Change during
Br.7,100 Br.12,100 Br.6,600 Br.11,600 Br.16,600 Br.21,600 Br.16,100 Br.21,100 Br.26,100 Br.31,100 Br.36,100 Br.41,100
month
Closing cash
Br.17,100 Br.29,200 Br.35,800 Br.47,400 Br.64,000 Br.85,600 Br.101,700 Br.122,800 Br.148,900 Br.180,000 Br.216,100 Br.257,200
position

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 Business Plan

Table 12: Profit and loss forecast

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Totals
Sales
Sales (invoiced) Br.26,000 Br.39,000 Br.52,000 Br.65,000 Br.78,000 Br.91,000 Br.104,000 Br.117,000 Br.130,000 Br.143,000 Br.156,000 Br.169,000 Br.1,170,000
Cost of goods sold Br.16,000 Br.24,000 Br.32,000 Br.40,000 Br.48,000 Br.56,000 Br.64,000 Br.72,000 Br.80,000 Br.88,000 Br.96,000 Br.104,000 Br.720,000
Gross profit Br.10,000 Br.15,000 Br.20,000 Br.25,000 Br.30,000 Br.35,000 Br.40,000 Br.45,000 Br.50,000 Br.55,000 Br.60,000 Br.65,000 Br.450,000

Expenses
Advertising Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500
Depreciation Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.900 Br.10,800
Electricity and gas Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.1,000 Br.12,000
Postage, telephone and
fax Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.5,000
Stationery Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.5,000
Rent Br.10,000 Br.10,000 Br.10,000 Br.10,000 Br.10,000 Br.10,000 Br.60,000
Repairs and
maintenance Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.3,000
Transport/courier costs Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.1,500 Br.15,000
Wages Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.8,000 Br.80,000
Others Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.500 Br.6,000
Br.0
Total Br.2,900 Br.2,900 Br.13,400 Br.13,400 Br.13,400 Br.13,400 Br.23,900 Br.23,900 Br.23,900 Br.23,900 Br.23,900 Br.23,900 Br.202,800

Result
Net profit Br.7,100 Br.12,100 Br.6,600 Br.11,600 Br.16,600 Br.21,600 Br.16,100 Br.21,100 Br.26,100 Br.31,100 Br.36,100 Br.41,100 Br.247,200
Gross profit margin 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38%
Net profit margin 27% 31% 13% 18% 21% 24% 15% 18% 20% 22% 23% 24% 21%

November, 2018 G.C. 18

 Business Plan

6. Appendix
6.1. Resume of the manager

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 Business Plan

TEFERI GEBEYEHU TEMESGEN

PERSONAL INFORMATION

Tel. Mobile: (+251)-912-61-11-94/ (+251)-944-10-44-44;

E-mail: ethiotefe@yahoo.com
Date of Birth: November 12, 1989 G.C.
Birth place: Debre Markos, Ethiopia
Gender: Male
Nationality: Ethiopian

ACADAMIC QUALIFICATION
2008 – 2013 G.C. Addis Ababa University
Addis Ababa Institute of Technology
School of Civil and Environmental Engineering
Addis Ababa, Ethiopia
Bachelor of Science (Civil Engineering)
2004 – 2008 G.C. Medhanealem Senior Secondary School
Addis Ababa, Ethiopia.
Certificate, High school completion.
WORK EXPERIENCE
October, 2011 – January 2012 Internship at JDAW Consulting Architects and
Planners under Addis Ababa Housing Development
Projects
September 11, 2013 to date Junior Civil Engineer, working as civil works
inspector, at Genale III Hydroelectric power project
under Ethiopian Electric Power. Involved in the
construction of rock fill dam, surge tank, water
tunnels and shafts, power house etc.

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 Business Plan

TECHNICAL SKILLS INTERESTS AND ACTIVITIES

Engineering Software  Decorative concrete works like;
 AutoCAD  Concrete countertops
 SAP (Structural Analysis Program)  Pool decks
Information Technology  Polished floors
 MS Word  Walk ways etc.
 MS Power Point  Engineering material science.
 MS Excel  Watching “How to” videos.
Vehicle Driving  Entertained with pool game.
 Automobile  Listening to radio.

LANGUAGE
 English (Fluent – reading, listening, writing and speaking)
 Amharic (Colloquial – reading, listening, writing and speaking)
PAPERS
Final Year Project
 Water allocation of Upper Awash Basin using WEAP.
ABOUT ME
 Believe in professional ethics and practice.
 Confident.
 Honest and cooperative.
REFERENCES
Dr. Daniel Fikresillasei Jonathan P. Troke Dr. Agizew Nigussie
Asst. Professor, Water Chief Dam Engineer, Instructor, Hydraulic
Resources Engineering, Genale III Multipurpose Engineering,
School of Civil and Hydroelectric Power Project, School of Civil and
Environmental Engineering, MWH International, Environmental Engineering,
Addis Ababa Institute of Jonathan.P.Troke@mwhglobal.com Addis Ababa Institute of
Technology, Technology,
Addis Ababa University. Addis Ababa University.
P.O.Box: 62203 Mobile Phone: 0911-64-01-00

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 Business plan

About Us Advantages
6.2. Brochure Our company produce and sell concrete  High flexural strength
top for tables, vanities and counters.  High scratch resistance
Contact  Relatively light weight
Address: Addis Ababa, Addisu Gebeya  Superior durability
Phone: ---  ...
Mobile: +251-944-10-44-44
Email: alettop44@gmail.com
Web page: ---
Mission
To deliver customers concrete top that
are

 Affordable
 Durable
 Strong
Alet Manufacturing P.L.C  Appealing
 In harmony with the
surrounding
Concrete Top Products
 Kitchen countertops
 Tabletops
 Vanity tops
 Others
We uniquely design and produce
concrete top material like no other. You
can order whatever shape, color,
pattern, edge and size you want. We
also engrave & stencil company name,
logo or anything else on topping
materials as you wish.

Coming Soon…
. . . on the top!

November, 2018 G.C. 22

 Business plan

ስስ ስስ ስስስ
አአአአአአ አአአአአ አአአአአ  አአአአ አአአአ አአአ አአአአአ
አአአአአአ አአአ አአአአአ አአ አአአአ  አአአአ አአአአአ
አአ አአአ አአአአአ አአአአ አአአአአአ  አአአአአአአአ አአአ
 አአአ አአአ
ስስስስ  …
አአአ አአአአ አአአ አአአ
አአአአ አአአ: ---
አአአአአአ አአአ: +251-944-10-44-44
አአአ: alettop44@gmail.com
አአ አአ: ---

ስስስስ
አአአ አአአአአአአአ አአአአአአአ
 አአ አአአአአ
 አአአ አአ አአአአ
 አአአአ
 አአአ አአ
 አአአአአ አአ አአአ አአ
አአአአአ
አአአአአ አአአ አአአአ አአአአአ

ስስስስ ስስስ
 አአአአ አአ
 አአአአአ
 አአአ አአአአአ
 አአአአአ

አአአአ አአአ አአአአአ አአአአ አአአ

አአአ አአአአአ አአአአ አአአአአአአአ
አአአአአ አአአአ አአአአ አአአ አአ አአአ
. . . ከከከ! አአአአአ አአአአአአአአአአ አአአአአአ
አአአአአአ አአአአአ አአአ አአአአ አአአ
አአ አአአአአአአ

ከከከከ ከከ…
November, 2018 G.C. 23