Table of content page

Introduction....................................................................................1

Executive summary…………………………………………........................... 2

Industry analysis……………………………………………………............
…......5

Description of the venture…………………………………………..............6

Production
plan…………………………………………………………..............7

Marketing
plan…………………………………………………………................8

Management or organizational plan………………………..…….......9

Assessment of risk……………………………………………...….…..…......10

Financial plan……………………………………………………..….........……
11

Income statement………………………………………………..….……....13

Balance sheet…………………………………………………..………...…..15

Cash flow………………………………………………………………....…..…
16

Appendix……………………………………………………………......
……….18

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 INTRODUCTION

Our business in egg manufacturing parteners which established by seven

partners ,we plan to emerge and operate as one by going br.150, 000 worse
assets together and we loan from bank is 150000 birr, The main focus of our
partnership manufacturing enterprise is getting raw material and making
products essential for users and generate profit from the productio

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 EXECUTIVE SUMMARY

Our business in egg manufacturing parteners, which established by seven

partners in january 11 2013 nifas Silke. we plan to emerge and operate as one
by going br.150, 000 worse assets together. The business offer egg by least cost
[2br and 75 cents] and are near to the market. We plan to work eleven hours
and six days in a week [12 hour and 6 day per week the place is in nifas silk
near the kadisco by renting garden with 100 square meter. The main focus of
our partnership manufacturing enterprise is getting raw material and making
products essential for users and generate profit from the production. The name
and address of our subcontractor is Adwa hotel. The marketing plan is a vital
role in egg producer and distributor partner successful. Our business group
followed low cost strategy. The manager of the business organization is
mr .addsu belye.The risk of our partnership affects the normal production and
distribution of eggs. We borrowed 150,000 from Dashen Bank as of 5 year long
term loan with 13% interest. Our partners have a deposit of br.150, 000 from
the Dashen bank.
NAME OF BUSINESS:egg production center: nifas silk towen

LEGAL FORM OF BUSINESS: partnership

TYEP OFBUSINESS: egg production

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Owner(s)

Name Address Qualification responsibility Experience(in

_owners(partners) year)
Addsu belye Nifas Degree manager 0 year
Silke
Mekuanint Nifas Degree sealer 0year
Ayalineh silke
Zelalem fenta Nifas Degree sealer 0 year
silke
Sara yilikal Nifas Degree sealer 0 year
sike
Yenenesh nega Nifas Degree Sealer 0 year
sike
Mulugeta mudela Nifas Degree Sealer 0 year
silke
Melkamu degu Nifas Degree Sealer 0 year
Silke
ADDRESS: Addise Ababa
LOCATION:nifase Silke
E-mail……………….

Start –up capital

Investment:150000
Source capital: bank loan 150000
Total working capital 300000

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COMPANY SUMMER
Mission: our mission is to understand what our coustemr and businesses
hop
to Achieve egg production and development the fulfillment of these
goals

4
 INDUSTRY ANALYSIS
Our business is egg manufacturing partners, which established by seven
partners in january11, 2013, nifas sike town. Those who were in related
business around kadisko here the reason why we merge our business in to
one that before we have lower capacity to meet all demand and have poor
financial ability to invest and to expand our business, and we were self
competitor any rather than fulfilling customer satisfaction so since January
11, 2013 we plan to merge and operate as one by going 300,000 birr worth
asset together.
Our business were sets in nifas sike and we plan to satisfy customer around
addise sefre for five consecutive years .nifas Silkeis a best town there are
many hotel and restaurants , so we plan to supply and satisfy customer which
includes begging and already established hotels, restaurants and cafe around
there is no enough producer ,so no more competitor , but there is many
retailer ,that sold and distribute by purchasing egg from produce out of nifas
Silke so this competitors are first limited in number in comparison with the
number of the user . Secondly they incur additional expense special retailer,
like transportation. Thirdly they does not have adequate capacity to meet all
the market demand, even those they have high linkage of market, so they does
not affect our business.
Since the business is established with the aim of aiding the limited
supplies and minimizing price, which increased by competition we got good
acceptance from the concerned body .And here there may be equation like
'why our business will be successful? ‘or 'why customer will purchase our
egg?' ,then we answer this question by comparing our competitor with our
offering. Our company is sure of winning our competitor.

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competitor purchases the egg , they are not accessible and customer does not
get as they went, as a realest they have to tall there order before a day. Where
as individual householders are fired by higher price of retailers. But our
businesses are accessible and have lesser price, because it has economy of
Scale.

DESCRIPTION OF THE VENTURE

About our Business:
Quality egg produces business established by seven partners in line with
required rules and regulation sated by government as a partnership business.
It is an egg producers company, which is in the venture of manufacturing
business, established by joining the already by established business by the
partners. Since this busines
so offer egg by lest cost (2birr and 75cents )and are near to the market we are
sure profitable than ourcompetitor and were as we know it need a great
commitment we plan to work eleven hours in a day and sixes day in a week
(12hour &6day per week ).
As we said we produce egg by purchasing chicken from individual farmers
and then we keep them in their separate place and cultivate them to lay egg
and then after we will sale it to retailers, hotels and restaurants. Here our
main target customer is restaurant.

Our business place were nifas silke where previously we work individually
before merging together .As we said we are in the business ,as a result we
know the market .In nifas silke there is scarcity of supply in the market ,to be
sure there is no competitor, so because of this we are in this profitable place
means in nifas Silke near the kadisco by renting garden with 100 square

6
meter .The reason why we select this place is that ,because it is nearer to our
customers and so that we minimize cost.
PRODUCTION PLAN
Production business plan is if& only if necessary for manufacturing
products. The main focus of our partnership manufacturing enterprise is
getting raw material &making products that are essential for users and
generate profit from the production. We are responsible for all activities of
the manufacturing operations. Because all the manufacturing Operations
performed by the members of partnership ,the partnership is established by
the interested groups .As a quality egg producers we need contractors
/subcontractors .the name &address of our subcontractors’ are Adwa hotel,
Time caffe and restaurant are the main subcontractors& receiver of our
products/eggs. The addresses of our subcontractors are in the town of nifas
Silke.the reasons behind the selection of these subcontractors are the ability
to buy large amount of products, based on transportation cost that is
subcontractor’s location somewhat near to our manufacturing area, they
bought on cash& they bought our eggs permanently. The outcome of our
manufacturing entity is eggs. The equipment’s needs to immediate production
purposes are egg’s lay equipment, egg’s store equipment, egg’s safety
equipment that is keeps eggs in normal condition for a specific period of time,
office equipment’s etc.Cost which is incurred in quality egg producers’
association are listed&explaind more deeply in the financial statements
because financial statements are given priority for costs expenses in deeply.
Generally our egg manufacturing partnership enterprise activities are so
many in numbers. From the main and major activities are keep societies
health by providing healthy egg, build up the enterprise capacities, generate
adequate profit in the long term ,to bee competitor, expands area of
production and to be continued its operation in the normal condition.
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 THE MARKETING PLAN
The marketing plan is a vital role in egg producer and distributor partner
successful. The critical concern of the partner is the marketing plan and
finding of potential customer /who by large amount of egg money times/.the
potential customer of our partner are new and they live in nifas Silke .they
also buy large amount of eggs from our partner for their hotels, supermarket,
shops and some of ue5ee

them distribute to other retailer. The work place of the customer is in nifas
Silke and most of the customer buy large amount of eggs from our partner
because of distribute at lower price than other competitor. It distribute the egg
at 2 birr and 80 cents but our competitor distribute the egg at 3 birr and the
other reason is the location of our partner near to nifas Silke then it
decreases the transportation cost, time and energy of the customer to buy the
egg and our partner produce high quality of eggs in a short time and
distribute to them.
The partner follows the ways to meet the company needs and want then other
near competitor , Firstly its competitor increase through time to time, then by
increasing of the quality and producing high amount of egg by decreasing
cost many competitor leave the market and money customer come to our
company. Secondly the pricing strategy of the companies, because our
company follows list cost rule money customer come to our business to buy
large amount of eggs

Management/organizational plan
As we have seen earlier our quality egg producers association produce
homogeneous eggs to the society or people. Our background of business

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experience is helpful for our business. This means that produce and sell eggs
to the people is the most profitable business .Because most people need eggs
for food consumption and resell purpose. Our business experience that
produces quality eggs for the people is the most acceptable business. Selling
eggs using low cost strategy. Our weakness in the business is door-to-door
selling. In order to compensate these business members plans in the future to
provide services to the customers when there are funds using different
appropriate cars. In our business organization the manager is mr.seid worku .
He is one of the member and founder of the business organization. His
strength is hard work habit, honesty, good business skill, punctuality and fair
decision. The duties of the manager are clearly defined when the business
organization established.
Some of the duties of manager are
• Control all activities that can be done.
• Arrive on time.
• Respect other member’s right.
• Coordinate activities of the employee.
• Keep business organizations secrets.
• Meet with the customers when they need eggs and
• Check the organization goals that can be meeting or not.
Our current personal needs are wants to get money. This is the same for
the rest of members. Currently we need salary to buy personal goods that are
appropriate for our life. Our plans for hiring and training personnel’s are
given continuous education to them. That education 100% relegated to
business. This teaching process helps for our business

organization in order to be successful. After we are hiring and training, our

personnel deeply know how to work for the production of eggs, which kinds

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of methods can be used when they work and so on. So generally this
continuous teaching process for hiring and training personnel is helpful for
our business to be successful.
ASSESMENT OF RISK
The risk of our partnership affects the normal production and distribution of
eggs. There are money risk which affect the normal operation of the partner
among them; frequently broken down of egg, some hen not lay egg, hazards
like hen disease which kills large amount of hens and other risk related to our
partner sometimes customer don’t buy large amount of egg because of
decrease the consumption level of individual at the normal condition and the
absence of food which feed to the hen it result to decrease the production of
egg and the death of hens, the other main future anticipate risk of our
partner is increase the number competitor around our partner which may
lead to the shift of our customer to their. Our company have strategically plan
for reducing of these risk. Among them;
• Place the egg in safety place.
• Protection of diseases.
• Buying large amount of foods for hens.
• Increase advertisement.
• To decrease the selling price for attracting new customer and to
stay the existing customer.

FINANCIAL PLAN

Key assumptions of financial plan

The venture will start up with total capital of Birr 300,000.

That is equity contribution from seven partners, Birr 25,000 each=150,000

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Five year long term loan with 13% interest from Dashn Bank in nifas silke
=150,000

Interest will be paid monthly and the principal will be paid at January
30,2013 ,
-500 egg laying hens will be bought at Birr 80 each. After two, or three
years, we replace the hens with new ones (without additional cost, we will
get new young hens).
Ten homes for hens at Birr 3,600 each will be bought. One home is for
fifteen hens.
-We assume to get 450 eggs per day from 500 hens after two months of
purchase.
-Egg will be sold at Birr 2.80 per egg for 2013, and for the next month, we
assume price will increase by Birr 0.1 per egg monthlly.
-food for hens will be bought at Birr 50000 annually monthly 4166.66
-We pay Birr 2,000 monthly for rent of land and office.
-We will buy one office table by 400 birr and four chairs by 100 each (400)
We assume 10 years of useful life for all equipment’s.
-We budget Birr 30,000 for legal issues to start the business.
-We use budget 500 birr for advertising.
- Miscellaneous-:833.33 in monthly
Start-up capital
Investment
Land and office rent 2000
Equipment 400
Miscellaneous 833.33
Total investment 3233.33

Working capital

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 Months of staff costs 5950
Monthly of operational costs 2500
Total working capital 8450
Total start-up capital 11683.33

STAFF COST
POSITION QULIFICATION SALARIY PER SOCIAL TOTAL STAFF
MONTH SECURITY COST
MANAGER Degree 2500 - 2500
secretary Deploma 1000 - 1000
Grader 10+ 950 - 950
Sealer Deploma 1500 - 1500
total 5950 5950

QUALITY EGG PRODUCERS ASSOCIATION (QEPA)

INCOME STATEMENT
FOR THE MONTHLY IN (2013)
Monthly Septe Octo Nove Dese Jan Febr Ma April Ma Ju Jul Au Total
mber ber mber mber uary uary rch y ne ay gus yearly
t
REVEN 37800 39150 39150 40020 40020 37800 4089 40020 378 391 4089 4176 474475
0 00 50 0 0
UE:
Seal
EXPEN
SE:-

12
Expense 3000 3000 3000 3000 3000 3000 3000 3000 300 300 3000 3000
0 0
for land
rent and
office
Food 4166.66 4166. 4500 4650 4700 4500 4300 5000 450 460 5200 4000
66 0 0
expense
for hens
Expense 2500 2500 2500 2500 2500 2500 2500 2500 250 250 2500 2500
0 0
for legal
issue
Advertisi 500 300 250 300 300 250 300 200 150 200 130 100

ng
expense
Salary 5950 5950 5950 5950 5950 5950 5950 5950 595 595 5950 5950
0 0
expense
Lone 4125 4125 4125 4125 4125 4125 4125 4125 412 412 4125 4125
5 5
expense
Miscella 833.33 900 950 900 850 950 900 800 870 900 840 750

neous
expense
Total 21076.9 20941 21275 21425 21425 21275 2107 21575 210 187 2174 2042 252108.6
9 .66 5 95 75 5 5 5
expense
INCOM 16725 18208 17875 18595 18595 16525 1981 18445 167 203 1914 2133 222366.3
.34 5 05 75 5 5 5
E
Tax 77828.22

netinca 144538.1
3
m

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QUALITY EGG PRODUCING ASSOCIATION (QEPA)
BALANCE SHEET
FOR THE YEAR 2013

ASSET:-

Cash………………………………………………………….187, 200
Home…………………………………………………………36,000
Hen……………………………………………………………40,000
Land…………………………………………………………...36,000
Office equipment………………………………………………800
TOTAL ASSET…………………………………………………300,000

LIABILITY:

Account payable……………………150,000
CAPITAL:
Owners’ equity………………………150,000
TOTAL LIABILITY AND EQUITY……………………………300,000

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 QUALIYTY EGG PRODUCERS ASSOCIATION (QEPA)
CASH FLOW STATEMENT
FOR THE MONTH IN( 2013)
Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Total
yearly
REVEN 37800 39150 3915 4002 4002 3780 4089 4002 3780 3915 4089 4176 474475
0 0 0 0 0 0 0 0 0 0
UE:-
Seal
EXPEN
SE:-

Expense 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000

for land
rent and
office
Food 4166.66 4166.66 4500 4650 4700 4500 4300 5000 4500 4600 5200 4000

expense
for hens
Expense 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500

for legal
issue
Advertisi 500 300 250 300 300 250 300 200 150 200 130 100

ng
expense
Salary 5950 5950 5950 5950 5950 5950 5950 5950 5950 5950 5950 5950

expense
Lone 4125 4125 4125 4125 4125 4125 4125 4125 4125 4125 4125 4125

expense
Miscella 833.3 900 950 900 850 950 900 800 870 900 840 750
neous 3

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expense
Total 21076 20941 212 214 214 212 210 215 210 187 217 204 25210
expense .99 .66 75 25 25 75 75 75 95 75 45 25 8.65
INCOM 16723 18208 178 185 185 165 198 184 167 203 191 213 22236
E .25 .34 75 95 95 25 15 45 05 75 45 35 6.35
Tax 77828.
22
netincam 14453
8.13

City Town Worda

Location A.a Nifas silke 08
Phone no +25......

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APPENDEX
Our partners have a debit of 150,000 Birr from the dashen bank.
Our partner almost known by all part of nifas silke
The partner get source of information from the existing company
and from potential customer.
Government encourages small business then our partner get license
from town administrator.
The partners have legal document about level of capital and the
installment place of our partner.
Initially start the business by renting of house but plan to build at the
future.
The partner made contract to by the hen and to sell the egg.
Our partner have consultancies because the employ and owner of the
partner are profession of Economics

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