Business Plan

Business name; Habesha POULTRY FARMING

Address;
Phone number, 0927185279
E-mail, fbecol@gmail.com
Addis Ababa, Ethiopia

January 17, 2017

ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ECONOMICS

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Entrepreneurship assignment, Business plan
Prepared by section four students
Name ID No
Merga Tolcha …………………… BER/6608/07
Mohhamed Hosein …………………BER/2204/07
Mola Tariku……………………… BER/4708/07
Mulugeta Adugna………………… BER/5261/07
Shiferaw Baysa……………………BER/8099/07
Suleyman Jenberu…………………BER/1955/07

Table of Contents
FBE CAFÉ OVER LEFT................................................................................................................................ 4

Confidentiality Agreement.............................................................................................................................. 4

Section one........................................................................................................................................................... 5

1. Executive Summary...................................................................................................................................... 5

Section two........................................................................................................................................................... 6

2.1. Description of the venture....................................................................................................................... 6

2.2 Mission statement....................................................................................................................................... 6

2.3 Objectives...................................................................................................................................................... 6

2.4 The Venture Products...................................................................................................................... 7

2.5 Background of the entrepreneurs........................................................................................................... 7

Section three........................................................................................................................................................ 7

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Our service........................................................................................................................................................... 7

3.1 Description of our service................................................................................................................... 7

3.2 Costumers advantage from using our service..................................................................................... 8

3.3 Preconditions of the establishment of the business..........................................................................8

3.4 Cost of production and development of our service.........................................................................8

3.5 Our competitive advantage...................................................................................................................... 8

Section four.......................................................................................................................................................... 8

Sector/Market...................................................................................................................................................... 8

4.1 Overall market............................................................................................................................................. 8

4.2 Specific market............................................................................................................................................ 9

4.3 Competitor Analysis................................................................................................................................ 9

4.4 Costumers................................................................................................................................................... 10

Section five........................................................................................................................................................ 10

Marketing /distribution.................................................................................................................................. 10

5.1 Market entry strategy.............................................................................................................................. 10

5.2 Distribution concept................................................................................................................................ 10

5.3 Brand............................................................................................................................................................ 10

5.4 pricing.......................................................................................................................................................... 10

Section six.......................................................................................................................................................... 11

Venture management...................................................................................................................................... 11

Section seven.................................................................................................................................................... 11

Three years planning...................................................................................................................................... 11

7.1 investment planning................................................................................................................................. 11

7.2 human resource planning....................................................................................................................... 11

7.3 Projected profit and loss statement..................................................................................................... 11

7.4 LIQUIDITY /FINANCIAL PLANNING......................................................................................... 12

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7.5 Projected cash flow statement.............................................................................................................. 12

7.6 Projected balance sheet........................................................................................................................... 13

7.7 Exit strategy............................................................................................................................................... 14

Section eight...................................................................................................................................................... 14

Capital requirement......................................................................................................................................... 14

Schedule............................................................................................................................................................. 14

Reference........................................................................................................................................................... 15

Section one

1. Executive Summary

Our venture Service, FBE CAFEOVERLEFT is a business enterprise which supply the meat
of pork by fattening them using the café and launch overleft for the hotels in Addis Ababa.
Why we interested in this service is the demand for meat in our city is increasing and the
supply for it is not comparable that the price of meat is very high. So, entrepreneurs of the
FBE café overleft are interested to fulfill this market gap. Through this innovative service we
are going to get a high market share, fair profit and continue to exist in the market and
contribute to the hotel industry. Since our venture service is organized by six professionals
with a business background, we will in a better position to succeed.

The number of participants in the hotel industry is increasing from time to time. Specially, the
number of Micro Enterprise supplying hotel and restaurant service surprisingly increasing.
However, the number of suppliers of meat for them is not as many as the final suppliers of
hotel service. So supplying meat for these hotels is serious economic gap now a days that we
are working to supply efficiently.

Meat of pork is very marketable that needed by Ethiopian context and asked by different
foreigners and tourists in Addis Ababa with specific focus.it is demand satisfying and
delicious known meat in our culture and in that of the other that its demand is high. Before
the establishment of FBE café overleft business enterprise we was looked for the market,

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demand, supply, raw material and So on for six month then we establish this business venture
. The raw materials required for our service is the café and launch overleft food that is locally
available in our compass and other compasses. The meat supplied locally is unable to balance
the demand so the city is obliged to import from rural areas. This service has lack of quantity
and quality as a result the consumers are obliged to additional cost. We will hope to minimize
this problem and successfully penetrate the market by using the problem as good opportunity
and set minimum price and new design.

When our company established it requires Birr 41,412 as startup. Startup capital is subjected
cost like raw materials, office equipment, human capital, rent, utilities, and training
requirement cost. The sources of financial requirements are from family, relatives and banks.
The FBE café over left producing enterprise is organized consisting of five departments with
one general manager (chief executive manager) and management departments which have
different responsibilities. It’s a partnership form of organization and organized by six
economists in 2016. All partners will take the, management and leading role in the
organization and involve in the administration of the day to day affairs of the business. The
partners will share the profit according to pre agreed and its contribution. All partners have a
theoretical knowledge on management and business concept and also they have an experience
on different trade activities.

Section two

2.1. Description of the venture

Under this section we could describe about our venture in the detail and this section makes
our business plan meaning full and easy to understand.

2.2 Mission statement

The purpose of our business is to raising profit and creates our own business and also
satisfying our customers by supplying fresh meat with a fair price. Our business is targeted to
customers who live around the main compass area, such as sidist kilo, amist kilo and arat kilo
this makes us advantageous to extract the market.

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2.3 Objectives.

The main objectives of our venture service is creating the organization, to be sustainable in
the business, and increasing profitability. We have a short term and long term goals. Our
short term goal is supplying service and reaching to our customer with fresh products and
also advertise our product using different social media, banners, and exhibition (bazaars).
This raises our sales and this result in increasing the profitability of our enterprise. We also
have a long term goal we gone to achieve such as merging with small business enterprise and
other venture supplying enterprises participated in serving meat and this makes our
company competitive, profitable, and then turns to export our product to a foreign countries.

2.4 The Venture Products.

When a new business enterprise is organized it must be come up with new products or
addition to the existing one to avoid or reduce competence comes from big companies that
produce a substituted products. The FBE café overleft enterprise comes with fresh products
this makes it different from its competent firms. We also sales our product with fair price to
satisfy our customers and being competitive with our competitors.

2.5 Background of the entrepreneurs.

Mr.Merga Tolcha, the founder and executive manager of the enterprise is 24 years old and
graduate of Addis Ababa university in economics and also he is experienced in the whole
and retail sales shop from 2013-16. He is interested in reading different books like fiction,
law, economics, psychology, and also interested in discussing with his friends especially
ideas related with business. Mr. Mohammed Husein, Mr. Solehiman Jenberu, Mr.Shiferaw
Baysa and Mr Mulugeta Adunga are also the co-founders of FBE cafeoverleft enterprise.
They are also taking their BA in economics from Addis Ababa University. As they are the
member of managing department they are delegated to take management training in specific
responsibility.

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 Section three

Our service

3.1 Description of our service

As we have mentioned above our venture is working to fulfill the market gap of meat. We
will supply fleshy quality meat of pork and sheep at fair price whenever required by our
customers. Meat we supply is very fresh and fleshy also up to its standard that it is healthy
and preferable especially for holydays and wedding sermonizes besides any time
consumption by university students and surrounding community.

3.2 Costumers advantage from using our service

The weather of our city is favorable for fattening pork that the pork we supply is doubtlessly
healthy.so, if our customers make us their choice they will be satisfied by their enterprise by
very attractive price than our competitors.
3.3 Preconditions of the establishment of the business

The main precondition for the establishment of our business venture is cheap availability of
the resource of café over left in our compass and to economize it in a useful manner .The
second precondition is that to fulfill the market gap in supplying the meat for the hotels and
restaurants around Addis Ababa University.
3.4 Cost of production and development of our service

Allocating our startup capital of 41,234 for the establishment, different cost are totally
required to run our business. Among the cost of our service the amount we pay to import
species of a pork is the first and the preparation of the suitable area for rearing the pork in our
compass is the second.as any business venture there exist the payment to legalize our
business and there is also transportation costs which is included in our startup capital. Worker
payment is also the uncounted cost of our venture service.

3.5 Our competitive advantage

We have gone through different research before we start our business that we discovered this
business is advantageous than that of our competitors. We are using natural and fertile input
of café and launch over left to fatten the pork which make us reachable and profitable within
short period of time. Our rivals had no such an input to reach the market on time. Besides the

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species of the pork we fatten is biologically proven to fit both the weather of our city and
demand of our customer in such we are competitively advantageous than our competitors.

Section four

Sector/Market

4.1 Overall market

The city’s demand for pork meat is satisfied both from local supplier and rural imports. Local
supply of pork meat in the past five years has been fluctuating from year to year but a slight
growth was starting from year 2014. The lowest supply was 44 thousand Lorries in the year
2013 and the highest about 60 thousand Lorries in the year 2016.In the remaining years it was
fluctuating between the two extremes. Import of meat from rural areas to Addis Ababa from
2013—2016 has generally shown a declining trend. The yearly average level of import which
was about 40 thousand Lories during the period 2013--2016 has sharply declined to a yearly
average level of 32 thousand during the recent three years of 2013-2016. Compared to the
previous yearly averages it has decreased by about 30%. This fact creates the market gap of
44% unsupplied demand in the market because local supply is 36% and supply from rural
local area to the market is 30% in sum 66% in the market. That means around 44% is
remained supplied demand in the market. If we assume 20% of the gap market is to be
covered by competitors, the remaining 24% of the overall market is to be covered by the FBE
CAFÉ OVERLEFT, The innovative emerging enterprise of ours.

4.2 Specific market

The demand for our product is potentially suited in hotel and restaurant clients of Addis
Ababa university students and its surrounding community which are in need of pork
particularly these who come from pork meat cultured areas of our country. We potentially
prefer to supply for these customer concerning the availability of raw material for fattening
pork and the income of our customers specially that of university students. As known the
consumption decision of our students and community Wellers is income oriented and very
attractive if they make our venture their choice.

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4.3 Competitor Analysis

The potential pork suppliers in Addis Ababa are very few in number that there are incapable
of supplying at least 20% of the market which is throughout the city and the customers
around sidist kilo, amist kilo and arat kio are remained unconsidered and their demand is
remained unmet as we discover in our six months of study. So, almost no potential competitor
can currently share our market especially by using café and launch over left as an input to
fatten pork.

4.4 Costumers

As we have explained before the targeted costumers of our business venture are Addis Ababa
university students for a short time period and reaching the surrounding community of low
and middle income.
Section five

Marketing /distribution

5.1 Market entry strategy

The product of our venture can be promoted and introduced to the market through
advertising in brochures home to home promotion, through commission work, through
brokers and media.

5.2 Distribution concept

Our consumers will be supplied with our products through the locally distributed branches of
our venture. They can easily contact our branch or call us if door to door supply is necessary
for them. But as all our branches are near to all the localities, villages and known village
markets they will not be severed of not getting the product. Our distributing workers are
qualified drivers and socially able personals to treat our clients in proper manner. They are
employed at fair monthly salary that they are committed to serve consumer at maximum
possible efficiency.

5.3 Brand

Our service is unique from other services of our competent in that natural and fits to the
environmental health, sustainability of our consumers. Our service is branded as FBE on its
distributers vehicles. ”FBE is on demand’’

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 5.4 pricing

Including all productive and distributive costs of the pork and considering the effect of the
price on marketing share of our venture, the fair price of one pork is 1124 and if it to be
supplied on door it will increase concerning the transportation cost.

Section six

Venture management

As introduced above in section two, FBE café over left is a business venture founded by
economics graduates of Addis Ababa University, in that they are qualified to run and operate
the business. The chief executive manager and founder of the venture is Mr.Merga Tolcha,
the production manager Mr. Solehiman Jenberu, distribution manager Mr Mulugeta Adugna,
Finance operator Mr. Mohammed Husein and Accountant Mr.Shifeaw Baysa and security
officer, Molla Tariku. All the members are responsible to the CEO and the business venture.
They are also committed to serve the public consumer to the success of our business. The
ownership issue is to be decided by the board of directors which is composed of the CEO,
and other two members with the business advisor. Any conflict concerning the business that
may occur within the business operators can be solvable following the rules and regulations
of the venture under supervision of the CEO and legal advisor.

Section seven

Three years planning

7.1 investment planning

All capital goods to be used in our business venture include an hired building by rent of
20,000, slaughtering machine and food processor to be rented at 60,000, vehicle for
transportation 500,000 birr, computers to bought at 44,000 and additional cost of 50,000 birr.

7.2 human resource planning

Qualified personal than that of the founders of a venture include the business advisor and
lawyer, also those workers for driving the vehicle, loading and unloading, safe guarding and
selling man. The monthly salary of those committed workers of our venture will be
determined by the board of directors by taking the profitability of the venture, workers skill,

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habit and preference under consideration. All of them are ready to serve fulltime of the
working days.

7.3 Projected profit and loss statement

Loss in our venture may occur causes of pork disease, price failure, strong competitors
increase employee wage, increase in rent of machine and transport risk.

Item Estimated loss

Pork disease 8000
Price failure 9000
Strong competitor 3000
Increase in employee wage 6000
Increase in rented items 12000
Risks 9324
Total 47,324

Projected total sales =100,000

Projected profit =projected total sales –projected total loss

=100,000-47,324

=52,676

NOTE; as we are supplying only one product (homogeneous) throughout the year we
assumed that the sales are smooth throughout the year.

7.4 LIQUIDITY /FINANCIAL PLANNING

As projected, our venture is very liquid because the total projected revenue is far greater than
the total expenditure and loss. The projected profit of our venture is 53% of our income
which shows we are more than half profitable that we can cover all our costs and losses that
we could confidentially stay in market.

7.5 Projected cash flow statement

FBE café overleft

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 Statement of cash flows

Cash flows from operating activities ………20,000

Cash flows from investing activities ……….34, 000

Cash flows from financing activities……….53, 000

Change in cash ………..39,000

Beginning cash balance …………………………41,234

Ending cash balance ………………………………80,234

7.6 Projected balance sheet

FBE café overleft

Balance sheet

Assets

Cash…………………………….80, 234

Accounts receivable…….1000

Supplies………………………6000

Equipment ………………….624, 000

Total asset…………………..724,000

Liabilities and owners’ equity

Liabilities

Accounts payable………………50,000

Notes payable…………………....40,000

Other costs………………………..50,000

Total liability………………………140,000

Owners’ equity

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FBE café overleft, capital…………………584,000

Total liabilities and owners’ equity….. 724,000

7.7 Exit strategy

The FBE café overleft can exit from the market only if the projected loss of a venture is far
greater than the projected gain of a venture due to rise in price of species of pork ,inflation in
general, failing of interest rates and disputes among the venture owners ,incapability to run
the business. Besides these our venture may exit the market if deterioration in equipment’s
balance more than their contribution to the profitability of the venture.

Section eight

Capital requirement

All required capital issue of a venture is listed in section above that it is not necessary to
repeat it right here.

Schedule

Activities/months jan feb Mar apr m jun jul agu sep oct Nov Dec
a
y
Seeking legal √
counsel
Filling the √
document
Completion of √ √ √ √ √ √
R&D
Release of √
production facility
Office and retail √
space
Ordering supplies √
Production √
materials and

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 inventory
Selection of √ √ √ √ √ √ √
personal
Beginning
production
First order
Sales and payment

Reference

THIS BUSINESS PLAN IS THE PRODUCT OF BUSINESS IDEA GENERATED BY

STUDENT MERGA TOLCHA SO ANY BODY CAN CONTACT HIM PERSONALLY
OR VIA ADDRESS POINTED ABOVE.

Introduction

What entrepreneurship?

Entrepreneurship is a process of creating something different and better with value by

devoting the necessary time, effort, and capital and by assuming the possibilities of risk. The
person who undertake this process is known as an entrepreneur.

Jean-Baptiste Say, a French economist, defined an entrepreneur as a person who "undertakes"

an idea and shifts perspectives in a way that it alters the effect that an idea has on society. An
entrepreneur can also be defined as someone who shifts economic resources out of an area of
lower and into an area of higher productivity and greater yield.

There are many types of entrepreneurship activities like social entrepreneurship, woman
entrepreneurship, informal entrepreneurship, and the like.

Social entrepreneurship is the use of the techniques by startup companies and other
entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental
issues.

It typically attempts to further broad social, cultural, and environmental goals often associated
with the voluntary sector in areas such as poverty alleviation, health care and community

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development. One of the social entrepreneur that operates in Ethiopia is Eminence social
entrepreneurs.

EMINENCE SOCIAL ENTREPRENEURESHIP

Nature

Eminence social entrepreneurship is a privately owned company with its head quarter in
Addis Ababa Ethiopia. It was coined in 2010 to provide new, innovative and efficient service
that correspond to current societal, professional requirement and needs. It delivers impeccable
and unparalleled service in event organizing, media and communication, consultancy and
training. It also establishes thinking schools in Ethiopia to improve quality of education.

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