Executive summary

Brief description of the business

Name of business CADASTRAL SURVEY

Legal Form
The legal form of the business will be:

□ Sole proprietorship PARTNERSHIP □ limited company □ Corporation


Reason for choosing this legal form

1. Easy to form
2. Low costs to start
3. Added capital sources
4. Shared management
5. Possible tax advantages

Contact address WALISO

Tel. 0922595434

E-mail: -G3@yahoo .com

Fax. +2510135476

Type of business

Manufacturer SERVICE PROVIDER

Retailer Wholesaler
Brief description of the business idea
The need is to have construction document our customers are all who needs legal document for their
CADASTRAL SURVEY

Products or services

Preparation of Topography ,site plan, BM, data enterpres ,setting out and construction documents will be
included.

Target Market

The society, trade organization & the government organization

Owner(s) profile

N Name Address Qualification Function in the relevant

o business experie
nce
1 GUTU DANIEL Woliso SUT General Manager 4
2 SHIFARAW HAMBISA Woliso SUT Operation Manager 3
3 KASAHUN MIRKENA Woliso SUT Finance Manager 2
4 SAMI BIKILA Woliso SUT Surveyor 2
5 ADERGACHAW Woliso SUT Surveyor 2
6 BIKILA REGASA Woliso GDT Designer 3
Projects contribution to the economy

This project will contribute to the economy in the following ways:

1. It will decrease unemployment rate by creating job opportunity for three people.
2. It will help to generate income for individuals.
3. Owners will contribute to the development of the country’s economy by paying business income tax.
4. It will promote the advancement of technology.
5. To help people to have legal house plan
 Business Idea and Market
Description of the business idea

As we have conducted a market survey we have identified a high demand for our product in Adama town
and the neighboring towns.

We planned to serve the community and sale our design according to the clients` need.

As we have explained earlier our customers are Micro and small business enterprises, as well as
individuals & the society as a whole.

1. MARKETING PLAN

Description of the market

(Geographical area, town, type of customers, size of total market, description of competitors market
share for the new business and etc.)

As we have conducted a market survey we have identified a high demand for our product in
WOLISO town and the neighboring towns likeWalkite,Tullu bolloo,Cituu,Amaya,, etc.

Our competitor needs exaggerated profit and they are unable to keep an appointment because of
their own monopoly policy, so we will solve the problem of our clients on the points mentioned above.

Marketing Plan Product

 Detailed description of the product or product range or service

Product/service type

Our service will encompasses the purpose of preparing new plans like siteplan, topography plan and
prepare drawing for setting out of building which have no municipality acceptance as well as land scape
plan
 What is special about the product/ the unique characteristics of the product?

Our product services focus on providing new and modern concepts of plans that leads to new technology
so that we can have as many customers as possible.

Specification of the product

Our works can be provided in paper work like tracing paper blue print and in soft copy using auto cad,
arch cad etc.

After sales service

 We will give the following after sales services:

1. Warranty until our work is approved by the municipality office
2. Correction service.
3. Coaching and consulting.

Marketing Plan Price

How much are customers willing to pay?

 Highest ___
 average
 Lowest _____
How much are competitors’ price?

 Average
How much is your price?

 Highest _____
 Average √
 Lowest _____
What are the reasons for setting your price?
 Once fulfilled our fixed assets we do not have need to buy or to expense on it, so we are profitable
if we sell on this price.

Marketing Plan Place

 Location of the business (description of the planned location of the business)

Te planned location of the business will be WALISO town

Reason for choosing the location the business

Demand for our service is high in WALISO area, we can get sufficient working place and business
opportunity as WALISO town is in high development condition area.

Marketing Plan Promotion

We promote our product through printed materials like brochures, posters and also we use personal
selling.

2. PRODUCTION PLAN

Production process

 List of production steps

As for as built drawing

1. Discuss with customer

2. Take measurement

3. Make sketch

4. Produce final technical drawing

5. documentation

6. submission of documents
 As for new building design

1. understand client`s need

2. prepare design drawing accordingly
3. get approval from the municipality
4. make corrections if necessary
5. submit to the client
List fixed assets needed and their cost

No. Item Quantity Amount

1 Computer 3 12,000
2 Printer 1 3,940
3 Table 1 700
4 Chair 6 1,200
5 Computer desk 3 2,500
6 Rapidio graphy 8 3,200
7 T- square 5 225
8 Scale 5 225
9 Others - 3080
Total 27,070
What is the useful life time of each fixed asset?

Investment item Lifespan in years Depreciation (in %)

Buildings 20 5
Simple machines 8-10 12.5-10
Special machines 3-5 33.3-20
 Vehicles 5 20
Hand tools 3 33.3

Investment item Lifespan in years Depreciation (in %)

Computer 10 10
Printer 10 10
Table 8 10
Chair 8 10
Computer desk 8 10
Drawer 8 10

Factory/plant location and layout

List of raw materials needed

No Raw materials DIMENSION QUANTIT UNIT TOTAL

needed per Y COST COST
month
1 A4 paper Pack (80 gm) 1 120 120
2 A3 paper Pack (80 gm) 1 250 250
3 Lead Pcs (rotaring) 5 7 35
4 Masking tape Pcs (Standard) 5 7 35
5 Eraser Pcs (rotaring) 5 5 25
6 Tracing paper Roll (standard) 1 550 550
7 Printer tonner Standard 1 850 850
8 Fixer 0.5 (rotaring) 30 12 360
9 A1 Paper Roll (80gm) 108 5 540
Total cost 2318
Staff cost

No Position Qualification Salary per Remark

month
1 General manager SUT 3000
2 Operation manager SUT 2500
3 Finance manager SUT 2500
4 Surveyor SUT 900
5 Surveyor GDT 500
6 Surveyor ----- 600
Total 10,000

Factory overhead expenses

No Overhead expenses Amount per month

1 Telephone expense 400
2 Transport 1000
3 Indirect labour 300
4 Indirect material 500
Total 1,050

Fixed cost

1 Rent expense 2500

2 Salary expense 16414
Total fixed cost 18914

Production costs of each item to be produced

  Raw materials per month = 2845birr

 Raw materials per unit = 2845 / 7 = 406.428 + 314.285=720.713 birr

 Salary expense = 16414 birr

 Fixed cost = 18914

 Factory overhead expenses per month = 2200birr

 Factory overhead expenses per unit = 314.29birr

Total variable cost per unit = 720.713birr

ORGANIZATION AND MANAGEMENT PLAN

Forms of business

Service delivery

Organizational structure

GENERAL MANAGER

OPERATION MANAGER Designer

 surveyor surveyor

3. FINANCIAL PLAN

Start-up capital requirement

Capital requirement/project cost? Amount

Fixed Assets
- Land --------
- Rent expense(Building) 2500
- Equipments 23990
- Others 3080
Total Fixed assets 29570
Pre-operating expense 500
Working capital
- Operational costs of one months
Raw materials costs 2845
Administrative expenses 1,500
 Staff cost of one month 16414
Total working capital 21259
Total capital requirement 50829

Unit cost = 2845 + 18914 + 2200 / 7 = 3422.714

Unit price = Unit cost X 12.5% of unit cost

= 3422.714 +427.839 =3850.55 ≈ 3851 birr

 Monthly sales plan
Month 1 2 3 4 5 6 7 8 9 10 11 12
Product

Price 3851 3851 3851 3851 3851 3851 3851 3851 3851 3851 3851 3851
Quantity 7 7 7 7 7 7 7 7 7 7 7 7

Revenue 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957
Price
Product 2

Quantity

Revenue

All Revenue 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957
products

323484

Operational cost plan

Month 1 2 3 4 5 6 7 8 9 10 11 12
Quantity 7 7 7 7 7 7 7 7 7 7 7 7
service 1

Unit cost 720.713 720.713 720.713 720.713 720.713 720.713 720.713 720.713 720.713 720.713 720.713 720.713

Total cost 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.99
9 9 9 9 9 9 9 9 9 9 9
service 2

Quantity

Unit cost

Total cost
All Total 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.9 5044.99
service operation cost
9 9 9 9 9 9 9 9 9 9 9
s

60539.892

Cash flow
Projected monthly cash flow statement
Particulars Pre- Month
operat
ing
period
1 2 3 4 5 6 7 8 9 10 11 12
Cash at the 20759 23757. 267550 29753.0 32751.09 35749.03 35749.03 41745.05 44743.0 47741.0 50739. 53737.099
beginning of the 01 09 19 9 9 9 69 79 089
month
Cash inflow
Equity 50829
Borrowings
Cash sales 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957 26957

Collection of
A/R
Other income
Total cash 50829 44716 50714. 53712 5671.01 59708.029 62706.03 65704.04 68702.05 71700.0 74698.0 77696. 80694.099
inflow 00 9 9 9 9 69 79 089
Cash outflow
Pre operating 500
expense
Operating 5044.9 5044.9 5044.99 5044.99 5044.991 5044.991 5044.991 5044.991 5044.99 5044.99 5044.9 5044.991
expense 91 91 1 1 1 1 91

Salary expense 16414 16414 16414 16414 16414 16414 16414 16414 16414 16414 16414 16414

Rent expense 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500

Purchase of 20490.7
fixed assets
Taxes 5567.339
expense
Admin. expense 1500
Total Cash 30070 23958. 23958. 23958.9 23958.9 23958.99 23958.99 23958.99 23958.99 23958.9 23958.9 23958. 31026.331
outflow 99 99 9 9 9 9 99

Cash at the end 20759 23757. 26755 29753.0 32751.0 35749.039 35749.03 41745.05 44743.06 47741.0 50739.0 53737. 49667.76
of the month 01 009 19 9 9 9 9 79 89 099 9

Profit & loss statement

Annual projected profit& loss statement

Revenue Amount
Sales 323484
Less cost service (60539.892)
Gross profit 26294.411
Rent expense Building 30000
salary expense 196968
Depreciation 426.75
Administrative expense 1500
Pre operating expense 500
Total operating Expense (229394.75)
Net profit before tax 33549.358
Less: Income Tax (5567.339)
Net Profit after tax 27982.019

Depreciation

1. Computer 160.00 5. Drawer 6.25

 2. Printer 40.00 6. Chair 1.50

3. Table 6.25

4. Desk 9.00 Total = 221.50

Balance sheet
Projected balance sheet
Assets Amount Liabilities Amount
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash at hand and bank 49667.769 Current Liabilities
Accounts receivable Accounts payable
RM inventory Taxes payable
WIP inventory Others payable
FG inventory Total Current Liabilities
Total Current Assets 49667.769 Long-Term Liabilities
Fixed Assets Loans
Land Others
Building) 2500 Owners Equity
Equipments 23990 Capital 78811.019
Others 3080
Total Fixed Assets (426.75) 2914.25
Total Assets 78811.019 Total liabilities & capital 78811.019

TOTAL CAPITAL = Total capital requirement + Net Profit after tax

= 50829+ 27982.018=78811.019

Total Assets =49667.769+ 29143.25= 78811.019

Break-even point

Breakeven Quantity = Total fixed cost

(price per unit - variable cost per unit) = 1891.4 / 3850.55 – 720.713 = 6.0431 ≈ 6 Plans

Breakeven point = Total fixed cost x price per unit = 18914 X 3850.55 / 3850.55 – 720.713 = 2326.936
(price per unit - variable cost per unit)
(breakeven sales
level in dollar terms)

Return on investment

Rate of return = Amount received - Amount invested x 100 =

Amount invested
= (78811.0191 - 50829) / 50829 X 100 = 55.05% ≈ 55%

Remark:

Tax rates
-1800=free
1801-7800*10%-180
7801-16800*15%-570
16801-28200*20%-1410
28201-42600*25%-2820
42601-60000*30%-4950
60001 and above 35%-7950