TABLE OF CONTENT

Content page
1.Introduction,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 1
1.1 company name……………………………………………………………………………………………………………………
1.2 name and address of partners……………………………………………………………………………………………
1.3 nature of business………………………………………………………………………………………………………………
1.4 statement of financial statement……………………………………………………………………………………….
1.5 confidentiality of the report……………………………………………………………………………………………….

2.Executive summery,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
2.1 futures outlook and trend...........................................................................................

3. description of the venture ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

3.1 products……………………………………………………………………………..
3.2 size of the business………………………………………………………………….
3.3 office equipments and personnel…………………………………………………….
3.4 backgrounds of the entrprenur……………………………………………………….
3.5 location of the business…………………………………………………………........
4. production,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
4.1 production process……………………………………………………………………
4.2 equipement and machinery…………………………………………………………...
5. marketing plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
5.1 pricing…………………………………………………………………………………
5.2 promotion strategy ……………………………………………………………………
6. financial plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
6.1 Forecasted income statement for the next five years…………………………………………………………….
6.2 Forecasted balance sheet for the next five year……………………………………………
6.3 forecasted cash flow statements for the next five years……………………………………………………………

7. organizational plan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
7.1 forms of ownership……………………………………………………………………..
7.2 assessment of risk………………………………………………………………………..
7.3 contingency plan…………………………………………………………………………
8. Three years planning,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

8.1 Projected loss and profit…………………………………………………

8.2 Exit strategy………………………………………………………………

9. appendix,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
 Introduction
1.1Company name

Deseya and his friends dairy products delivery P.L.C

1.2 The name and addresses of partners

1. Binyam degu W 13 keble 03 House No __
2. Dawit weldemichael W 13 keble 03 House No __
3. Deseye tekeba W 13 keble 05 House No __
4. Bogale getahun W 13 kebele 01 House No__
5. Ayichaw babey W 13 kebele 05 House No__
6. Abrham ayalew W 13kebele 07 House no __
1.3 Nature of business
The business involves dairy production and delibration. the company should
produce high quality of milk and related milk products such as:
cheese,curd,yoghurt and so on

1.4 Statement of financial statement

The company shall be established with a capital of Birr 1 500 000 which will be
raised from the partners and the bank loan. The owner’s contribution shall be???
available through finance money is required to acquire land and equipments, to
build facilities …………..
1.5 Confidentiality of the report
The owners of dairy product delibery, spends knowledge, money, time, resources,
and experience to prepare business plan. For this reason the owner have to the
patent right in order to protect the business plan which is the result of all share
holder effort for this reason should not be transferred or copied to another
individual or company. If anyone refuse to accept this, the owners have right to
accuse individual or the company to bring them in front of the law. “AllRights are
reserved”
“All rights are reserved”.
It is known that many types of business implements in each and every aspect of our
area and this comes with interaction of different countries in all aspects of socio-
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economic and cultural dogmatism with the beginning of dairy product delibery.
This is because of comfort ability of various kinds of environment which assist or
help people to lead their life in a good manner and encourage a main accent in
standard of excellence in their life as well. The primary purpose of this business
plan is to provide qualitative and quantitative amount of various types of milk
product at affordable price.

This document is confidential and proprietor. It may not be circulated or disclosed

in whole or part without the written permission of the partners. Plans and
projections are subject to change.

2. Executive summary
Deseye and his friends company shall be established as a private limited
company in sebeta town, oromia with office in Addis Abeba .the capital
required to start the business shall be acquired through bank loan and partners
contribution.The company shall produce high quality of milk products
Deseye and his friends company shall have a capital of birr 1 500 000 The
company shall mark its products available for the market as it requires funding.

Industry analysis

The dairy product business enterprise provides milk to café , reasturant and local
market. This product is sold to customer in local area. This product also sold to
small enterprise found around its environment. The product of our business is milk
product. So, any individual who has the potential can undertake the activities. The
brand of the business is designed to be dairy product processing providing
enterprise; it is named so because its name and the service it gives are much more
related and attractive. Since it is natural product the people are willing to use the
service. The location of the business is in sebeta.
The location is preferred for the following reasons
 There are many customers for the service.

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  Weather condition is comfortable.
 The transportation cost is less.
.

In order to accomplish the service effectively and efficiently our business hires
workers based on the following criteria.
 Experience
 Health
 Conduct
 Educational level
 Age
 Ability

Office Equipment
The materials needed would be:
 Milk processing equipment
 Glasses with different size and design
 Chair
 Balance
 Refrigerator
 Shelf
 Table
 Jar(bottle)

Those mentioned materials will be purchased. The business manager should be

experienced at least in business and should have knowledge of entrepreneurship.
The special ability of the manager to dominate or have complete power on others is

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that he/ she can communicate with others, understand technical problem,
persistent, self-confident and have good conduct.
The motivation to start this new business is
 Desire for independency.
 Desire to exploit opportunity.
 To turn our hobby into reality.
 To change previous work experience in to business.
 Financial incentive.
 To reduce unemployment.
2.1Futures outlook and trends
The introduction of dairy product has increased interest in our society in
the last few decades so in order to improve our societies satisfaction, we
are going to deliver the milk products in a high quality and quantity for
the coming years.

Analyses of competitors’
Currently there are a few competitors’ in the local market. However, the
company shall have many international competitors’, as it products are sold
in the international market. ???
Strength of competitors
The major strength of our competitors are high quality products, strong business
network.
Weakness of competitors
The weakness of our competitors is high production and transportation coasts
which normally result in higher price.

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 3. Description of the venture
our business will be held in sebeta and there are a few competitors that are engaged
in dairy product but there are numerous customers need this product. So in
order to satisfy our customer demand in organized manner we try to reach in there
destination.
The strengths of these products are their market shares and distribution channels.
They are available in virtually and physically any retail grocery outlet, and have
gained strong market acceptance. They are also distributed with other refrigerated
and frozen dairy products. Finally, they are priced at 25 birr per litter. pressurized
can, an advantage when compared to the suggested retail price of other
competators.
The weakness of these products is in the lack of variety. None of these companies
produce or market a flavored topping. Several of the products are also classified as
‘whipped topping’, but are actually not dairy based.

3.1 Products
The primary products of the company shall be
 Milk
 Curd
 Cheese
3.2Size of the business

The business shall be of medium size initially. However, the company shall be
expand as it requires more market share internationally. In the near future we
plened to recognized in international arena.

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 3.3Office equipments and personnel
The company shall require some office equipment and personnel.
Office and related equipment requirement
No Description Qty Unit price Total
(Birr) price(Birr)
1 Gust chair 6 200 1,200
2 Filling cabinet 2 1,000 2,000
3 Personal 3 10000 30000
computer
Total 11 83 200 33200

Man power requirement

No Description Qty Monthly pay Annual pay
1 General 1 3,500 42 000
manager
2 Secretary 1 1500 18000
3 Accountant 1 2750 33000
4 Security 1 1000 12000
Total 4 8750 105000

3.4Background of the entrepreneur

The partners have rich experience in agriculture which will significantly contribute
to the successful establishment and operation of the dairy product delivery.
3.5Location of the business
Deseye and his friends enterprise shall take place in sebeta town which is 20 km
away from addis ababa and the milk resource are found from cattle briding.
4. Production
4.1Production process
Milk is collected from the farmers and trasnported to milk plants for its processing
into mass market milk and other dairy products such as: cream, butter, cheese,
casein, yogurt, etc.

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 4.2Equipment and machinery
The machinery and equipment required depends on the level of mechanization
desired and the scale of operation. However, some machinery and equipments are
essentially required such as the chaff cutter machine, milking pails, milk cans and
minor implements.
The following machinery shall be required

5. Marketing plan
5.1Pricing
The company shall use market penetration strategy to introduce its products and to
easily establish it’s in the international market. The tentative prices of the
company’s products is presented in

Product price list

 Highest 30 birr per litter
 Average 25 birr per litter
 Lowest 20 birr per litter
5.2Promotion strategy
Description of the planned actions to inform customers about the opening of
the new business (e.g. printed information, brochures, posters, newspaper
articles, radio advertisements, opening ceremony, etc. Also make inquiries
about the costs for the different types of promotion)
There will be four main points to the initial marketing campaign leading up to the
launch of the dairy products enterprise. We will be monitoring each one carefully
to see how successful they are. The main points of advertising will be :
· To announce the opening of the dairy products enterprise as a different type of
venture in the area.
· To inform customers about what we will be selling, and how we will be
supporting local businesses.
· The most important thing will be to start raising our profile in the first two to
three months of opening.
We will do this through the use of :
· Advertising in the local paper and on local radio.
· Launch events, involving tasting sessions around the high street.
· Leaflets dropped to local residents and businesses.

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· Ensuring the shop front shows the opening date and information about the
enterprise.

6. Financial plan
6.1Forecasted income statement for the next five years
Y1 Y2 Y3 Y4 Y5
Revenue 2084000 3975200 6194000 8408000 11298500
Sales 2 250 000 4,549,200 6,823,000 9,098,000 11,373,000
Expenses 166000 574000 629000 690000 745000
Office.exp 4000 5,000 5,000 8,000 8,000
w/shop exp. 5,000 15,000 15,000 18,000 18,000
Custom exp. 13,000 30,000 35,000 40,000 45,000
Transport 20,000 400,000 450,000 500,000 550,000
exp.
Rent exp. 124,000 124,000 124,000 124,000 124,000
Income 729400 1391320 2167900 2942800 3954475
tax/35%
Net income 1354600 2583880 4026100 5465200 7344025

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 6.2Forecasted balance sheet for the next five year
Deseye and his friends P.L.C
Forecasted balance sheet
End of years 1-5
No Assets Y1 Y2 Y3 Y4 Y5
1 CASH 635,150 679,220 750,290 765,360 811,430
Vehicle 240,000 180,00 120,000 60,000 80000
Total asset 659150 697220 870290 825360 819439
No Liability
1 Bank loan 400,000 350,000 200,000 100,000 300000
Total liability 259150 347220 670290 725360 519439
2 Owner’s equity
Binyam 300,000 100000 200000 418520 986520
Dawit 100,000 200000 400000 258463 654785
Deseye 400000 100000 544520 879500 584700
Ayichaw 200000 540000 210548 204586 654230
Bogale 300000 98000 325000 458960 985620
Abrham 200000 300000 547810 697530 454502
Total capital 1500000 1338000 2227878 2917559 4320357

7.3 forecasted cash flow statements for the next five years
Deseye and his friends dairy production P.L.C
Forecasted cash flow statement
For the years 1-3
Cash flow statement for year 1
Cash Budget T o t a l
Beginning cash balance-------------------------------------20000 0
Cash collected from customers------------------------------57891
Total cash available for need-----------------------------------------------257891
Operating Expense------------------------------------------302108

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 Cash Excess deficit --------------------------------------57892

Cash flow statement for year 2

C a s h B u d g e t T o t a l
Beginning cash balance------------------------------------ 48000 0
Cash collected from customers---------------------------------------------------280000
Total cash available for need ---------------------------------------------------- 480000
Operating Expense-------------------------------------------------------------------302108
Total cash needed --------------------------------------------------------------------
302108
Cash Excess deficit -----------------------------------------------------------------480000

Cash flow statement for 3rd year

C a s h B u d g e t T o t a l
Beginning cash balance------------------------------------6480000
Cash collected from customers---------------------------~~~~~~~~~~6280000
Total cash available for need ----------------------------------------------------6480000
Operating Expense-----------------------------------------------------------------302108
Total cash needed-------------------------------------------------------------------302108
Cash Excess deficit ----------------------------------------------------------------6177862

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 7. Organizational plan
8.1 Organizational structures

General manger

1.2Forms of ownership
Deseye and his friends dairy product shall be established as a private limited
company (P.L.C)
1.3management team
1. deseye tekeba
2. bogale getahun
3. dawit weldemichael
2. Assessment of risk
7.1Weakness of the business

The weakness of these products is in the lack of variety. None of these companies
produce or market a flavored topping. Several of the products are also classified as
‘whipped topping’, but are actually not dairy based.

7.2Effects of change
Competition

7.3Contingency plan
Should the demand for the company’s products decreases, which does not require
much additional investment in……………………………………

8 Three years planning

8.1 Projected loss and profit

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We may have a few obstacles in the first year because as it is a new business in our
country Ethiopia until the people adapt this idea or until we create an image on
their mind about our service and product we may incur some loss. So for this
purpose we prepared a contingency cash .but we are 100% sure we will start
making profit in a short period of time. As these times we will expand into new
locations and start to spread our firm.

8.2. Exit strategy

Our existing strategy is to sell our assets and if there is a loss we will share the loss
by the loss profit ratio. So that to pay our debt if there is no debt is good for us.
9. Appendix

Binyam degu small business and entreprenurship in sebeta.

Deseye tekeba engaged in different entrprenurial activity.
Dawit weldemichael entrprenurial activity promoter

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