Fertilizer Ethiopia

Business plan
EXCUTIVE SUMMERY
Ethiopia, with above 80% of the total population supporting his life with
agriculture is one of the countries that uses high amount of inorganic or chemical
fertilizers to aid the growth of crops which supports the whole Ethiopia. This
chemical fertilizer has many health risks. Understanding this enat organic fertilizer
plans to provide the best quality organic fertilizer.
This business plan proposal will assess our company on different basis and lay out
the plans we will be using in the running of the business. First of the nature of the
business will be discussed briefly. By nature Water hyacinth is a freely growing
plant which only needs water and mud to grow. Starting from this a general
discussion will be made on how to cut and convert it into organic fertilizer. Water
hyacinth or locally known as’ Emboch’ has many benefits but for the purpose of
the study we will be focusing on converting the water hyacinth in to an organic
fertilizer which in turn has many advantages for the health of humans. The
conversion process of water hyacinth passes through 5 stages which include
harvesting, making burrows, treatment, covering the treatment and collection of
the product.
Our marketing strategies are target based advertisements on radios mainly
because our main customers are farmers and other methods also will be in use
when necessary. There will be hierarchical relationship among workers of the
company starting at the top with the general manager. The base of the company
will be the northern part of lake tana which has high abundance of the input –
water hyacinth and the working days will be 6 days a week and 9 hours a day.
the no abundant of the needed amount water hyacinth and the reluctances of
the people to try new product on their land will be the main challenges we will be
facing in the business.our company will be led by a clealy drafted company policy
which will include the process of dissolution in case of company break up.
As stated above we suffer many health risks as a result of the chemical additions
in to our bodies through different mechanisms. One of these is the usage of
inorganic fertilizers which cause disease like hemoglobin disorders, Alzheimer's
disease and diabetes mellitus. So in order to overcome this we need to use same
yet different mechanism, organic fertilizer from water hyacinth. Water hyacinth is
rich in nutrient which helps soil to recover its valuable nutrients. By converting
water hyacinth in to organic fertilizer we can benefit the people directly and
indirectly which intern lower the health risks related to inorganic fertilizers. We
know it is going to be a rough journey but ‘a life without risk is not worth living’.
So we plan to be committed to the company’s growth and to be a number one
organic fertilizer provider company in Ethiopia and with time in the horn of Africa
as a whole.
Enat organic fertilizer is a company which is established by 10 students who study
at the St. Mary’s university with all studying accounting and finance. We as a
team plan to provide the best quality organic fertilizer that can compete in the
world market. Currently we do not have investors nor partners or other
stakeholders. Our company is a small startup company which will be located in
the northern part of lake tana. In the near future we plan to expand our business
to other parts of Ethiopia where we can get easy access to water hyacinth. Our
organic fertilizer at the start we will be selling at a local market where everybody
comes to sell and buy things. Through time we will plan to open shops at different
towns so people can get easy access to our product. Anyone who wishes to
contact us about our product’s information can call on +251991190068 or
+251988518331. As we have stated above the use of imported inorganic fertilizer
is very high so our potential competitors are inorganic fertilizer important
companies. In terms of price our product has fair price that will be calculated
based on the capacity of the people who will be buying it.
Enat organic fertilizer needs a total of above a million Ethiopian birr to fully start
operating. This is excluding the costs of land purchase.
Generally, if done accordingly this could help in solving different problems
including the drying of the lake tana.
The business
The objective of our business is preparing organic fertilizer from water hyacinth
(emboch). Water hyacinth is a free-floating perennial aquatic plant well known for
its reproduction abilities because of its rapid growth rate (or hydrophyte) native
to tropical and sub-tropical South America. Even though water hyacinth is a native
of Brazil and other South American countries, it has invaded the lakes and
swamps in most countries of the world lying between 40ºN and 40º S. With
broad, thick, glossy, ovate leaves, water hyacinth may rise above the surface of
the water as much as 1 meter (3 feet) in height. The leaves are 10–20 cm (4–8
inches) across on a stem which is floating by means of buoyant bulb-like nodules
at its base above the water surface. They have long, spongy and bulbous
stalks .One of the fastest-growing plants known, water hyacinth reproduces
primarily by way of runners or stolons, which eventually form daughter plants.
Each plant additionally can produce thousands of seeds each year, and these
seeds can remain viable for more than 28 years. Some water hyacinths were
found to grow between 2 and 5 meters (7 and 16 feet) a day 5. The common
water hyacinths (Pontederia crassipes) are vigorous growers and mats can double
in size in one to two weeks. And in terms of plant count rather than size, they are
said to multiply by more than a hundredfold in number, in a matter of 23 days. Its
habitat ranges from tropical desert to subtropical or warm temperate desert to
rainforest zones. The temperature tolerance of the water hyacinth is the
following; its minimum growth temperature is 12 °C (54 °F); its optimum growth
temperature is 25–30 °C (77–86 °F); its maximum growth temperature is 33–35 °C
(91–95 °F), and its pH tolerance is estimated at 5.0–7.5. Water hyacinths do not
grow where the average salinity is greater than 15% that of sea water (around 5 g
salt per kg). So most of the time they grow in fresh water bodies.
Water hyacinth has affected different countries in the world wide. The water
hyacinth has also appeared in Ethiopia, where it was first reported in 1965(about
60 years ago ) at the Koka Reservoir and in the Awash Rive. However, the area
infested at that time was small. The weed had spread into Blue Nile, Baro-Akobo
and Rift Valley Basin Systems in the 1980s and 1990s. Other infestations in
Ethiopia include many bodies of water in the Gambela Region and Lake Ellen near
Alem Tena. Know a days it has become a serious problem on Lake Tana in
Ethiopia. The exact time of water hyacinth infestation in the Lake Tana shore is
not well known. Stroud reported that the plant was observed in marshy tracts of
the Abay River near its outlet with Lake Tana in early 1990s. The preliminary
survey done by, however reported that the weed was observed in Megech river
mouth for the first in 2010. Officially, water hyacinth was recognized as
ecologically dangerous invasive weed in 2011. The surface area of the lake is
approximately 3,060 sq.km. It is a shallow lake with the maximum and average
depth of 14 m and 6 m, respectively.The total area of Lake Tana shore infested by
water hyacinth varied from year to year. Estimated the surface area of the
lakeshores covered by the mats ranged from 200 sq. km (2012/2013 to 500 sq.km
(2014/15). Environmental, forest and wildlife protection and development
authority (EFWPDA), on the other hand, estimated the total area infested by the
alien species ranged from 28.33 sq.km (2017/18) to 255.33 sq.km (2016/17).
EFWPDA reported that the size of the surface area infested by the weed has been
determined by the amount of annual rainfall. In line with this, reported that heavy
winds and waves associated with heavy rain significantly contribute to the
variation in extent of water hyacinth infestation and mat size in the Lake Victoria
basin. According to the result of this study, the north and northeastern parts of
the lake are highly susceptible for invasion. Hence, water hyacinth management
and control plans shall mainly focus on the north and northeastern part of Lake
Tana and upstream contributing watersheds.
Water hyacinth has been progressively advanced in Lake Tana since 2011 and
covered vast areas of the lakeshore. The lake region is one of the highly populated
areas of Ethiopia. The primary economic activity of most people is subsistence
mixed crop-livestock farming system. The results revealed that crop production
(Crop production is mainly rain-fed. Cereals such as ‘teff’, maize, finger millet,
rice, grass pea and chickpea are dominant crops), livestock feed(Livestock
husbandry has also a significant contribution to the livelihood of farmers. It
supports crop production mainly through providing traction power and providing
transport services, and manure. They are also a source of cash income through
the sale of the products and live animals). supply, water supply, fishing, the
health of local people and livestock were impacted negatively by the infestation
of water hyacinth. The range of socioeconomic problems caused by the weed
generally implied the real impacts on the lives of local communities and national
economic development. The efforts made to control water hyacinth have cost
huge labor and financial resources. The results revealed that close to 800,000
human labor dedicated to manual removal of the weed from 2012 to 2018 and
above one million USD spent for procurement of harvester machines and bio
agent experiments. In spite of the devotion of huge labor and spending of a lot of
money, the expansion of the weed has not controlled. Poor coordination of
controlling efforts, dumping of harvested dense mats of the weed in the
lakeshore, lack of genuine participation of the local people are principal factors
for the failure of the controlling efforts. A coordination of various stakeholders
thus is needed to make eradicating methods more effective. Other alternative
options should also be considered to control the weed expansion.
So our plan is by cutting this water hyacinth in order to producing an organic
fertilizer which helps the farmers to produce good product that is organic and also
help tana by decreasing the growth rate by cutting the weed.
In order a soil to produce or give good product (plant) it should contain 3 main
elements. These elements are nitrogen, potassium and phosphorus. Water
hyacinth contains this element in side it, which makes it one element to produce
organic fertilizer.
Other materials that are need to produce organic fertilizer other than water
hyacinth are soil ,water and ash The procedure to produce organic fertilizers are
the following fist we have to dig a burrow to burial the materials then we have to
chop the water hyacinth .then dry the water hyacinth with the sun after that we
put the water hyacinth in to the burrow and add our water and ash in it finally we
burial every thing.it might take from 45days -9weeks in order to be organic
fertilizer .
At worst, chemical (inorganic) fertilizers are harmful for human health. One of the
diseases that have increased the death rate of human binges is cancer. And
inorganic fertilizer increases the risk of developing cancer in adult and children. To
keep our society safe we have to help the farmers by providing organic fertilizer
and try to manage the death rate by cancer, the organic fertilizer also increase
crop yield, it improve soil quality, helps the farmers, fish and fisherman’s and the
environment specially lake tana .
Using water hyacinth is rare in our country. They don’t use this product to do
anything so instead of making it west we are trying here to covert the west in to a
useable material. So this implies that the business idea is new for our country.
Other neighboring country farmers are using this product to make their product
good they use it only for them self but here we are trying to commercialize this
organic fertilizer to make it used by Ethiopian farmers across the country widely in
revers to get organic food that is good for our health.
The ownership process will be partnership. This implies that it will be the
relationship between two or more partners will run the business in our case it will
be run by 9 members and share risks, profits and losses . The member are
personally responsible for paying the member. The advantage of making our
ownership partnership are the followings it is easy to get started, sharing the
burden, access to knowledge skill experience and contract, better discussion
making, easy access to profit….. are advantage by making our business
partnerships
The vision of our business is wide . Such as Making every farmers produce great
product by using our organic fertilizer widely in the country, helping lake tana by
reducing the amount of water hyacinth, creating job opportunities for those who
don’t have jobs, helping our country to develop by paying the right amount of tax
and reducing peoples that have no job opportunity ,making our organization
greater from other by product with beter quality and quantity, and so on are
vision of our business.
 Source of capital
From the beginning of establishment the project is financed through individuals` investment and loans
from Banks. Each partner contributions for the establishment of the project presents in the following
table:

Partners’ investment

No. Partners name ETB contributed to the project

1 YODAHIE 130,000
2 BEAMAN 130,000
3 TRHAS 130,000
4 TESDNIA 130,000
5 DAGIM 130,000
6 MERON 130,000
7 RUHAMA 130,000
8 YISAK 130,000
9 BINIYAM 130,000
Total 1.170.000
The remaining sources of capital (i.e. 408.200) which is 26% of the total capital funded from
banks as loan.

Financial analysis
The project will start the operation with Birr 1.578.200. Out of this 74% of the total amount of
investment is financed by the owners (1.170.000) and 26% (408.200) is from banks as a loan
which will be paid for the next five years. Most of this investment will expanded on planting the
business for future rather than increasing short term gain of owners. This means some fixed asset
of the business may use high portion of the investment.

The investment arrangement and expenditure expected is preserving on the following

constructive table with its respective category.

S/N Item/description Measurement Quantity Unit Total price

price
 1 Land purchase
2 Land preparation
3 Building(rent)
4 Plant mach.&equip.
5 Man power & salary
6 Supplies
7 Utilities
- - - 800.000
- - - 90,400
- 2 - 30,000
• - - 100,000
- - - 116,400
• • - 50,000
- - - 7,500

8 Other costs - - - 5,000

TOTAL 1.194.300

Building

The proposed project will consist two different buildings. These are the 1st buildings for the
purpose of planting machinery and purpose of storing purchased materials.

The 2ndbuilding for the purpose of management staffs and other purpose (i.e. showering

Description of the product

The use of bio-fertilisers for agriculture has sustainable benefits
compared to chemical fertilisers as they increase the quality of the soil
and concurrently decrease the build-up of nitrate in the soil. Eichhornia
crassipes contains high nitrogen, phosphorus, and potassium elements
which makes it appropriate for use as mulch compost or
vermicomposting . It has been established that water hyacinth compost
is viable to replace peats, and consequently reduce the quick
exhaustion of peatlands . However, there is a hypothesis that using
water hyacinth as a bio fertilizer may result in plants having an accrual
of heavy metals and this consequently occurring in human tissues.
Advantage of our product
if it’s really all that important to use organic products instead.the
overall health of the soil and plants is the main concern, so while
synthetic chemical fertilizers may do a job today, organic
fertilizer , ensure the health of the garden tomorrow.

1.Organic fertilizers improve the soil. Organic materials and fertilizers

improve the soil texture, allowing it to hold water longer, and increase
the bacterial and fungal activity in the soil. So, they not only assist your
plants, they help the soil. Synthetic fertilizers, on the other hand,
deplete the soil of its nutrients, making it unproductive. Good luck
growing those juicy tomatoes in unproductive soil!
2.Organic fertilizers are safe. Although you won’t want to eat or drink
them (fish emulsion tea is none too tempting), you can rest assured
that organic fertilizers are safe for the environment , your family, and
your pets. Synthetic fertilizers require a significant amount of fossil
fuels to produce and process and often runoff into nearby water
sources like streams and lakes.
3.Our Organic fertilizer are easy to apply. Organics are just as easy to
apply as their synthetic, non-organic counterparts. Adding them to soil
or spraying them on leaves — however you use them, they add
countless benefits to your garden while providing the same amount of
convenience and ease as chemical fertilizers.

4. Reduce of water hyacith : When we harvest the water hyacinth from

lake tana ,it will reduce coverage of the water hyacinth from the lake.
5. Create job opportunity :
6. It save foreign currency : fertilizer are produced out side of our
country and imported to our counrty by exchange of the foreign
currency. our products are made in our country and the farmer can get
the products in Ethiopia birr , so the products can save foreign
currency.
7. Soil Structure
Because of the organic matter present in organic fertilizer, soil structure is
improved and as a result the soil’s ability to hold onto water and nutrients
increases.

8. Microbes Thrive
Synthetic fertilizer consists of chemical molecules without carbon. These
molecules can sometimes be disruptive and are not accessible to microbes. On
the other hand, organic fertilizer is rich in organic matter, which helps microbes
thrive. Organic fertilizer contains carbon as part of its chemical makeup; and it is
the carbon, along with nitrogen, phosphorus and potassium that feeds microbes
and enables them to make nutrients available for plants in a naturally occurring
biological process.

9. Sustainable and Environmentally Friendly

Synthetic fertilizers runoff into our waterways harming marine life and water
quality. Organic fertilizers do not run off as easily (if at all) and are associated with
soil structure. .

10. Reduce Fertilizers and Pesticides

Although organic fertilizer can be more costly than synthetic, it can reduce the
need for pesticides and the overall nitrogen, phosphorus and potassium
requirements. Because of the reductions, organic fertilizer can be cost neutral and
sometimes a cost savings. 

:-because of this reasons our customers will be happy to buy our products

Key features
As a key features component of agricultural sustainability water hyacinth organic
fertilizer contributes greatly to improving soil fertility. Therefore, the objective of
this review is to revise the role of organic fertilizer on agricultural product and
productivity. The newly sourced artificial fertilizer had a short-term benefit, but it
had severe long-term side effect such as soil toxicity and decline soil fertility.
Afterward, the idea of organic farming was acceptable to developed water
hyacinth organic agriculture system. The use of organic fertilizers has advantage
of being cheap, improving soil structure, texture and aeration increase the soils
water retention abilities and stimulating healthy root development. Organic
fertilizer has many sources such as minerals, animal source, sewage sludge and
plant. Vegetables, animals and residue materials had a contribution to improve
soil organic matter content in soil. Therefor it is recommended that, using
management is a continuous improvement of soil productivity on longer term
basis through appropriate use of water hyacinth organic fertilizer and their
scientific management for increments of optimum growth, yield and quality of
different crops.

Process of making organic fertilizer

Step 1 . Harvesting of Water Hyacinth and Transportation
The water hyacinth was harvested manually from lake tana along the Northern
bypass, in a stream Gumera from our work . it was harvested along the of the lake
and transported to the composting site at using lorries .

Step2 Making burrows

Dig and Drop Composting

Dig a hole, approximately 1m deep, the width 1.5m , length 2m and hallway is 2m as
we want or need it to be.
1. Drop water hyacinth or other organic matter into the hole.
2. The area coverage ‘2oometer square .‘
3. Total we make 50 fertilizer hole composition.
Put it the soil, ash, and we are done.
Dig and Drop composting is a good solution for the it savers money because you
don't have to worry about the compost machines . Our water hyacinth organic
fertilizer are good, and the resulting compost enriches the soil and provides nutrients
to agriculture products .
We might find that the easiest way to do this is to collect the Water hyacinth from
lake tana at Gumera, .

Step 3 . Treatments
1.The fresh water hyacinth was then chopped into small pieces of about 5-10 cm
in length using a chaff cutter to increase the composition process .
2.These were then spread and sun-dried for three days before being filled into the
boxes.

3.Production of Organic compost from water hyacinth

The experiment was set up with four treatments which were; Water
hyacinth+Effective + ash ,water and soil. These were replicated three times and
they were completely randomized in their arrangement. The hole were placed at
a distance of 2 m between columns and rows respectively. A well-fitting sack in
the shape of the composting hole was first fitted in the hole before filling each of
the hole with with water hyacinth.
The chopped water hyacinth pieces were weighed and put into the composting
hole to form a layer of about 1m depth at the base for each treatment were
sprinkled for each week 2.5 Litre layer of fresh water hyacinth up to the hole for
45 days . The same dilution/mixing ratio were used for the 0.5 kuntal ash
treatment and soil treatment are put in the hole .

4.Moisture reduce
Turning of the compost was carried out every fifteen days we Put it out the
compost to out side the greenhouse to reduce the compaction and improve
aeration of the composting materials which enhances further decomposition.
Turning also helped to reduce the moisture of the composting materials. The
moisture was measured using a soil moisture meter. The Area were uncovered in
the to encourage evaporation . In some cases, the composting materials were
removed and spread for about 3 hours to encourage evaporative water loss and
later returned into the hole .

Step 4 cover the treatment area by using Greenhouse

1Adapting to greenhouse use

Higher soil temperatures cause the fertilizer to release nutrients more

quickly. Greenhouse have much greater control over the indoor production
fertilizer compared to outside .

2. Weather Protection.
2 Weather protection
When using a greenhouse, you also get a level of protection from harsh weather
conditions. As mentioned earlier, these structures shield plants from the effects
of unseasonal temperature swings . Even strong winds or beaming sun rays can
have a negative impact on the fertilizer . if left unprotected. Under a translucent
cover sunlight is diffused .

Step 5. Range of the products

We make range of product in one hole 1.5kuntal of fertilizer in 45 days
Our production holes are 50
50 multiple 2 kuntal = 100 kuntal
How much products will be served to the customers ? = 100 kuntal of organic
fertilizer .
And Packed in a compost bag and put on the market.
The plan
Marketing plan

Primarily, the target customers of organic fertilizer are the farmers which are
found in the rural part of Ethiopia.
Secondly, anyone who is involved in the production of crops of any kind or any
agricultural activity with the intension of making their production organic.
Potential customers
As we all know the lives of the people who live in rural part of Ethiopia is from
hand to mouse kind of life. So ------- organic fertilizer is committed at making the
price of the fertilizer affordable for those who have the willingness but not the
ability. And for those who have the ability but not the willingness kind of people
---organic fertilizer plans to use different persuasion methods of promotion which
will point and stress out point of difference or product’s uniqueness. Our team
will work on persuading by notifying the crucial points and versatility of the
product. In addition we plan to give one extra sack for every 200KG they buy.
Description of competitors
Potential competitors of ----- organic fertilizer are companies that import
inorganic fertilizer from overseas.
Size of competitors
The number of organic fertilizer providers in Ethiopia as a whole is small to non
existence at the time being therefore it will be a great opportunity for us to
distribute our product throughout the country. Since our product is made with
local input, it makes the fertilizer affordable at affair price which will in turn make
it needed.
Marketing strategies
We plan to make target based advertisements. So since majority of our potential
customers are farmers we plan to advertise mainly through radio. Secondly we
plan to advertise in the market where farmers go to sell their product by our
team.
The company’s price will be made very reasonable and cheap so that users of any
social class are able to afford the companies’ quality service.
The company’s customers and users will be the people at large who will use our
service.
The physical evidence of our product will be the quality, consistency and easy
availability.

Marketing methods/ promotion ways

-------- Organic fertilizer plans to introduce its service by initially using
advertisement to create awareness by selecting adequate:
 Radio advertisements
 Local area markets,
 Door to Door Sales,
 Bazaars,

--------- organic fertilizer marketing strategy beside advertising it mainly focuses on

determining the price and finding best plant location plus distributing sites of the
products.
Price and location determination
Our pricing strategy is another marketing technique we can use to improve our
overall competitiveness. We deliver the fertilizer to the users with unique
features, less price and easily accessible. The customers are also willing to pay it.
This planned price support the company’s strategy and desired image which also
produce a profit. When we compare the planned price to those of imported
inorganic fertilizers it gives the company the benefit of providing quality product
with fair price. The company will make service available in many areas by having a
delivery partner on different part of Ethiopia in the near future.
Operational plan
Since there are almost no organic fertilizer providers available in Ethiopia it is a
great opportunity for us to provide one at an organized company. ------- Organic
fertilizer is situated in bahardar, northern part of Lake Tana. We chose this
location because it is close to the area where our main ingredient, water hyacinth
for this project is found in abundance. Since our project needs digging holes
where the water hyacinth is buried we need a remote place where we can get
access to that kind of land.
The fertilizer needs close follow up during the whole process of making it so we
plan to work 6 days a week (Monday through) from 2:30 am to 11:00 am (local
time).
Since the copany is situated in rural area people around bahirdar can get rapid
access to our product which in turn help us in the promotion process.
SWOT analysis
Strength Weakness
 Rich water hyacinth resource  Little or no awareness of organic
 Rich in ashes and water and production
other needed resources  Time consumption in the growth
 Easy availability since there is of crops
nothing imported

 Opportunity
 Great opportunity since there
are small to no organic fertilizer
providers
 Increasing awareness of the
benefits of organic fertilizer to
health and for the soil nutrient
richness
Threats
 Reluctance to try new means of
production
 Joining of other companies to
the business will make the water
hyacinth divided among the
companies very small.


Organizational plan
---------organic fertilizer organization plan will ensure that we put the right
structure in place that will support the kind of growth that we have in mind while
setting up the business. With respect to that our team who exclusively own the
business will operate at different levels.
 Beamanuel huluager will work as general manager.
 Tsedenya hailu will be working as assistant manager.
 Under assistant manager we have marketing and financial manager which
will be run by Tirhas Takele and Yodahie yoseph respectively.
 The sales management will be lead by dagim wworkneh
 The person in charge of promotion is binyam mulugeta.
 The cashier will be meron demes.

 We will be hiring labor workers, guard and a janitor at the start up of our
company.
Organizational structure flow

General manager

Assistant Manager

Marketing Manager Financial Manager

Sales
promoter Cashier purschaser
Manager
Financial plans

The investment arrangement for these buildings is presented as follows:-

S/N Description Measurement Quantity Unit Total price

/Items/ price
1 Cement Pkt 150 200 30,000
2 Roofing sheet M2 200 20 2,000
3 Nail Kg 10 40 400
4 Doors M2 10 800 8,000
5 Windows M2 12 350 4200
6 Labor costs - - - 5,000
7 Electric material - - - 1,500
8 Design costs - - - 5,000
9 Water pipe - - - 5,000
10 Fire controller - - - 19,300
11 Other related - - - 10,000
material cost
12 Green house - 1 100,000
Total 190,400.00

Plant machinery and material costs for production

S/N Description Quantity Unit price Total price

1 Cutting machinery 2 3000 50,000
2 Packing machinery 4 130 50,000
Total 100,000
Man power and supplies expense

S/N Position Qualification Experience No. Monthly Annual

req. salary salary
1 G.manager BSc in 2 1 2,500 30,000
production
2 Purchaser Diploma in 2 1 1,500 18,000
purchasing
3 Sales person Diploma in 2 2 1,500 18,000
marketing
4 Promoter 10th grade& 2 2 1,000 12,000
5 Cashier Diploma in 3 1 1,500 18,000
accounting
6 Janitor 6th grade and 0 1 500 6,000
above
7 Guard 8th grade and 4 1 800 8,400
above
8 labours None 0 10 500 6,000
Total salary expense 116,400.00

Utility expenses

No. Description Measurement Consumption Yearly cost in birr

per month

1 Water Liter 5,000 2,400

2 Electric power Kw/h 15,000 3,600

3 Telephone 125 1,500

Total 7,500

4.5. Annual costs

Salary expenses…………………………………….116,400

Interest expenses (408.200x14%).....……………….57,148

Utility expenses…………………………………..7,500
Depreciation expenses:
Building………………………………......1000
Machinery and equip…………………....2,500
Transportation expenses…………………………,,.,50,000
Rent expenses………………………..…………….3,500
Total …………....................................

Depreciation expense- building= Cost_-salvage value = 30,000-0 =1000

Estimated useful life 30

Depreciation expense- machinery & equip.=100,000-0 = 20,000

5
We expect that the economic life of our building and equipment will be 30 & 5 years
respectively
What Are The critical risk Of Using Organic Fertilizers?
Water hyacinth will be becomes effective fertilizer for too many Ethiopia farmers ,
However there is many obstacle to effectiveness of such business one of such
factors are the place where we opened our business determine the effectiveness
of our job for example we dream to open organic fertilizer in abounding Lake
Tana in gumera ,However when open such business in the place where there is
the limitation of such transportation and electricity e.t.c...

Complicated Procedure
While you can produce your own compost, it’s a messy and complicated process
that often leads to an inconsistent product and end-result.
Labour intensive-: Organic fertilizers can be bulky, messy materials. Some would
argue that working with organic fertilizer is a , but turning compost piles, moving
manure, and spreading solid fertilizer are not for everyone. This also means that
applying fertilizer on a large scale can be more difficult, as heavy manure or blood
meal granules are less suitable for mechanical spreaders.
Geographic Location and transportation
The geographic location of fertilizer application determines many significant
fate and transport factors in this risk analysis . The parameters corresponding to
the individual site were assumed to be representative of the parameters for the
region.
Crop Types. The type of crop to which water hyacinth fertilizer is applied is
significant in determining how much of a contaminant is taken up in the crop. Key
inputs necessary to estimate contaminant concentrations in plant tissue include
rates of contaminant uptake into plants from soil and vapour and from deposition
of particles onto plant surfaces.

Manly such business in rural areas opened in rent houses , it’s the main risk in
our country other because doing our business plan in rent houses became difficult
to goes owner business plan as we want because many house owner have their
own many rules and regulation that make our business restricted in such rule and
regulation.
Promotion about the services we gives is key to made our job popular with in
society by using different media gives which including the electronic media and
social media like face book, telegram, tik,tok and etc.. it is difficult because most
of Ethiopia farmers doesn’t use internet or such social media

Finally , every business require pre and post market analysis or survey without
any survey its becomes difficult to know that business became suessfuly in that
area as well as doing survey after opening business is impotence to known what
need that area and the society live in that environment so do not making an
survey also the big problem in the most business managers and owner.

Exit plan
Unfortunately every business must have an exit plan. Ideally our Water hyacinth
fertilizer will be so successful that it is expanded all over the country and even all
over the world and our modification and growth plan became successful which
time we will consider to continuing the legacy in the we all partners of this
company want to keep the business in long term and keeping our business in the
family for multiple generation is the best way to preserve our name in the
business.
A proper exit strategy places you and your business in the best possible position
to maximize the financial return on your company
position to maximize the financial return on your company.This plan will help us
to choose and prepare the person we want continue our business when we leave
we don’t have to completely separate from our business and may be able to stay
on in some sort of transitional or ongoing advisory role .
#.Selling the business you've worked so hard to grow is rarely an easy decision.
Selling may be the right option if:
1. You're ready to retire and have no heir to continue the company.
2. Partners who own the business decide to dissolve their partnership.
3. One of the owners dies or becomes disabled.
4. You or another owner get divorced and need cash for a settlement.
 5. You want to do something more challenging, more fun or less stressful.
6. You don't have enough working capital to keep going.
7. The company needs new skills, a new approach or resources you can't
provide
Although, this ideal many Water hyacinth do not succeed so The partner group
must make plan to cloth the business and sell or sublet the lease of our location.
Also we will be willing to sell all fixtures and equipment and divide the money for
our selves and start other business.

Appendix

Reference
Abukutsa-Onyango M., (2004)Crotalaria brevidens,

Plant Resources of Tropical Africa ,Vegetables. PROTA

Foundation, Wageningen,

Netherlands/BackhuysPublishers, Leiden,

Netherlands/CTA, Wageningen, Netherlands

Supporting material
1. We use google.com , yahoo.com , YouTube
2. UNEP. Lake Victoria Basin Environment Outlook: Environment and
Development. UNEP, Nairobi. 2006.