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Business Plan
Business Plan
Business Plan
COMPUTER SCINCE
DEPARTMENT
ADDIS HONEY PRODACTION COMPANY Business plan
GROUP-1
Name I.D
ENTRPRNERSHIP
1. Bisrateab Gebrie………………………….202
2. Alemayehu Sefineh………………………..189
3. Atsedemariam Kinde.……..….196
4. Abel Bizuayehu……………...181
5. Mengiste Kelemu……………….…..267
6. Elsa Demlew……………………………211
APRIL, 2021
BURIE, ETHIOPIA
TABLE CONTENTS
1 Executive summary..................................................................................................................1
2 Introduction..............................................................................................................................3
2.6 Mission..............................................................................................................................6
3 Industry analysis.......................................................................................................................7
4 . Description of business..........................................................................................................9
4.1 Products.............................................................................................................................9
5 Production plan.......................................................................................................................11
i
5.1.1 Name and address of creditor..................................................................................12
6.7.1 Strength....................................................................................................................20
6.7.2 Threats.....................................................................................................................20
6.7.3 Opportunity..............................................................................................................20
6.7.4 Weakness.................................................................................................................20
7 Organizational plan................................................................................................................21
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8 Risk assessment......................................................................................................................24
9 Financial plans........................................................................................................................25
9.3 Fore casted cash flow for the next three years................................................................28
10 . EXIT STRATEGY...........................................................................................................29
11 MONITORING...................................................................................................................29
12 APPENDEX.......................................................................................................................30
iii
1 Executive summary
Honey Production Company shall be established as a private limited
company in BURIE by Bisrateab Gebrie, Atsedemariam Kinde,
Mengiste Kelemu, , Elsa Demlew, Alemayehu Sefineh and the type of
business is merchandise. The capital required to start the business shall
be acquired through bank loan, families and partner .The starting capital
for investment and working capital is 600,000.
1
Easy available, convenient to the customer and affordable price
makes the store popularity in that area. The business form is general
partnership.
2
2 Introduction
The business plan is aimed to create as new venture and job
opportunity on members (partner’s contribution and bank loan). The
business will be need to run a good product of honey and distribute to
local markets.
Address------------------------------------------------------------BURIE
Qualification---------------------------------------------------Under graduate
student
Function on the business-----------------------------------------Seller
Tell----------------------------------------------------------0953244989
2.ABEL
Address---------------------------------------------------------------GONDER
3
Qualification------------------------------------------------------- Under
graduate student
Function on the business---------------------------------------------Secretary
Experience-------------------------------------------------- Secretary
Tell-------------------------------------------------------09 54288677
3. ELSA
Address----------------------------------------------------------BURIE
Experience-----------------------------------------------Manager
4. Mengistie
Address-----------------------------------------------------------BURIE
Qualification---------------------------------- Under graduate student
Function on the business----------------------------General manger
Experience-------------------------------------------------Accountant
5. Alemayehu
4
2.3 Statement of financial requirement (startup- capital)
the business will be statement with the saturated capital of 600,000 and
400,000 birr use for investment as land equipment and machines and
200,000 birr used for working capital employees operation cost.
Partners'investment:
5
2.5 Company summary
2.6 Mission
The mission of this business plans is producing high quality of honey for
the purpose of attracting and satisfying the customer’s needs and wants
in return getting reasonable profit
6
3 Industry analysis
Due to this the total sales from this production are not much more
enough and qualitative.so, when those partners starts the business, they
tries to evaluate and identify the failures in the past few years and as
much as possible change this failure totally to success by fulfilling the
accessory, this is to meal realization way and skill full mind to become
profitable with satisfying the customers after some years ago the
business expands the capacity of production and increasing the numbers
of partners with the distribution of products at everywhere and every
time if possible.
7
become successful. The available competitors are not present only
BURIE. That means there may be a competitor who have a high capacity
and provide qualified products in different itself so, to become the
wiener, the company should eliminate the karelessness of honey
production and these problems associated with the lost of bee`s to
increase productivity and to produce qualified producers. Otherwise,
they may be high competitors in the market and leads for risk.
8
3.5 Customer of the BUSINESS
The product of the business are providing an optimum honey and the
potential customer is hotel and restaurant and the other is retailer and
whole seller.
4 . Description of business
4.1 Products
The products of our company should be
1. Honey prodacts
9
4.2 Location of the business
The honey production and processing takes place in BURIE there is also
alias ion office of or place which we use not for the exchanges of
information among different organizations or companies about the
situations of the market or sharing experience in the system and method
of production burie. The reason for choosing the location is because of
the area is the center of Ethiopia and easily transport to Addis Abeba,
which is high restaurant and hotel in the area.
10
5 Production plan
Before any things have been started this partner is agreed to solve each
and every situation can fulfill the business in peace full mark up. Then
the partner decided the following things by keeping their formula steps.
Description Amount
Investment:
Land 100,000
Building 280,000
Equipment 20,000
Total investment 400,000
Work capital
Staff cost 80,000
Operation cost 12,000
Total working capital 200,000
Total startup capital 600,000
11
5.1 Source of fund
Fund is crucial core point in our business .therefore our source of fund is
equity and debt.
Address--------------------------------------Burie
12
Address:-Deber birhan, tebase branch
Repayment period Y1 Y2 Y3 Y4
2017 2018 2019 2020
Bank Installment 50,000 60,000 65,000 75,000
loan Interest 72,500 10,000 7000 3750
Total 122,5000 70,000 72,000 78750
payment
13
5.2.1 Staff cost
Position salary per month
General Manager.....................................5000
Seller………………………….......................…1500
Accountant...............................................2000
Inventory ship.........................................1500
Secretary..................................................400
Price bargainer........................................1000
Adverting manger ..................................2000
Sale manger.............................................2000
Price receiver..........................................1000
Purchase manager..................................2000
14
hive
So our companies require 37100 birr for office equipment and machine
15
5.4.2 Needed physical material
Popularly forming should consist of the following factices
Producer consumer
16
Pricing strategy is the main consideration of the company. This company
uses market penetrators strategy to introduce its products and to expand
itself in different market areas, to penetrates the market the company
must know in what price that the competitor are sold their products. If
this is known marking simply in different on the price of the products
create a greet attention for the company’s product by many customer.
The company sells the products even below its production cost up to the
level where market is penetrated and getting awareness by customers to
the market. Generally the customer may be willing to pay 120 birr per
kilo and 800 birr for one hive bee`s and Our price is 100 per killo,and
700 birr of one hive bee, the reason is that in order to increase customer.
17
based on air climate because honey is agrate important in coldest
invironment.Generally the market segmentation based on geographical
(air condition) and number of retailors base (user status, usage rate and
benefit) .therefore, the market for the company’s products is inside the
country which mainly in 3 specific areas: 1. Debre Markos, 2.Addis
Ababa, 3.Bahir Dar
In all these market areas there is large customers of honey product but
the company distributes the production highly in Debre Markos, Bahir
Dar and Addis Abeba because the company’s near to Addis Ababa
among other marketing areas, so the target market for our products is
Addis Abeba and Bahir Dar. in addition to both areas all the other
market areas are suitable to sale our products for instance BURIE is
needs huge amounts of honey prodacts due to the presence of high
population and capital of Ethiopian. So our company can distribute the
product other marketing area depending on the existing market structure.
18
6.5 Legal form of the business
The legal form of the business will be general partnership because all
members have a power to management activity
6.7.1 Strength
The accessibility of infrastructures high production quality and quantity
better promotion of the products is the strength of the business plan.
Better management skill is the opportunity of strength.
6.7.2 Threats
The threats of business plan may be fluctuation of price of product due
to number of retailers and peoples who requires honey for the
preparation of wine.
6.7.3 Opportunity
The opportunity of our business is increase of the product, demand of
the customer, decrease of the material. Generally the major opportunity
of the business is facility of hotel for wine preparation.
19
6.7.4 Weakness
The weakness of the business is shortage of honey products due
seasonal fluctuation or unexpected and continuous drought which affects
the flower preparation of plant(source of honey preparation of bee).
20
7 Organizational plan
21
7.2 Organizational structures
1.1 General
Manager
Secretary Accountant
Sale manager
Purchasing
Advertising
Marketing manager
manager
manager
Price
Seller
receiver
Price bargainer Inventory ship
22
marketing manager:- rails the marketing plans of the company
and searching information which makes the company power full
competitors
purchasing manager:- supervise how Mach quantity is returned
to purchase, what price should and unease, what type of
merchandise purchase
secretary:- the one write any document like receipt check to any
individual
Accountant :- the one who prepare financial statement
Seller:- sells the product of accompany in relation to sale manager
price bargainer:- The one pay the price to the order
Inventory ships:- Ships the product order come from the
purchasing manager
23
8 Risk assessment
24
9 Financial plans
25
Income after tax 187,000 354,025 531,250
26
Total asset 1,000,000 1,400,000 1,450,000
Liability and
equity:
Loans 150,000 130,000 200,000
Tax payable 80,000 190,000 130,000
Equity 1,230,000 1,080,000 1,120,000
Total liability 1,000,000 1,400,000 1,450,000
and equity
9.3 Fore casted cash flow for the next three years
Addis Honey production Company
Y1 Y2 Y3
Cash beginning of 300,000 375,000 445,000
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the year
Equity 200,000 350,000 260,000
Loans 150,000 100,000 50,00
Sales 677,500 601,000 837,500
Total cash inflow 1,327,500 1,426,000 1,592,500
Investment 400,000 450,000 500,000
Operation cost 120,000 130,000 140,000
Interest (5%) 7500 5000 2500
Total cash out flow ( 527500 ) ( 585000 ( 642500)
)
Cash of the end of =800,000 =841,000 950,000
the years
10 . EXIT STRATEGY
Due to any means our business may fail. The failure is may occur due to
the external factors. Before our business fail we made audit in each
month. In the audit, if there is a threat we try to balance it.If it is
impossible we try to out from the business according to our agreement
when we start the business. We should exit from the business before we
lost the original business.
28
11 MONITORING
The owners of the business that there right to control, distribute and
improve the quality and capacity of their production, the owner of the
company also have the right to operate the business and terminate of the
partner when needed.
12 APPENDEX
√. Our partners will have debit of 150,000 and 250,000 birr
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