Essential of Entrepreneurship and Business Skills Development

Business plan assignment

Bread Zone Bakery shop & Delivery

No Group name ID NO
1. Abey Shimelis…………………….…SGS/0441/2015A
2. Abiy Getachew……………………...SGS/0442/2015A
3. Birhanu Alemayehu…………………SGS/0446/2015A
4. Dagnachew Abebe…………………..SGS/0447/2015A
5. Dawit Misge………………………....SGS/0449/2015A
6. Eden Tilahun…………………………SGS/
7. Firehiwotal Alemu…………………...SGS/0454/2015A
8. Mahder Engdawork………………. …SGS/0460/2015A

Submitted to: Dr Alula Tesema

December, 12/2022.
Addis Ababa, Ethiopia.
Bread Bakery shop & Delivery

www.breadzone.com
Breadzone@gmail.com
Tel +251 11902030
+251 11803456
Address Bole Medanialem, Edna mole Ground floor
Addis Ababa,
Ethiopia
Table of Contents
1. Executive summary…………………………………………………. 1
2. Introduction………………………………………………………… 2
3. Business Summary………………………………………………… .3
3.1 Business ownership………………………………………………………….4
3.2 Startup summary…………………………………………………….5
3.3 Shop location and facilities………………………………….……...6
3.4 SWOT Analysis……………………………………………………...7
4.Product………………………………………………………………...8
4.1 Product description………………………………………………….9.
4.2 production………………………………………………………….10
4.3 Competition Comparison ……………………………………….…11
4.4 sales…………………………………………………………………12
4.5Future Products……………………………………………………...13
5.Market Analysis summary………………………………………. ….14
5.1 Market segmentation………………………………………………. 15
5.2Market strategy……………………………………………………....16
5.3consumer buying patter…………………………………………
6Managment summary…………………………………………….
6.1organaizational structure …………………………………………
6.2Management Team………………………………………………
6.3Human resource plan …………………………………………….
7.Finantial Planning ……………………………………………….
7.1Implimentation plan summary………………………………….
7.2Financial information…………………………………………….
7.3Biblography ………………………………………………………
7.4Apendix ……………………………………………………… ….
7.5Reference………………………………………………………….
List of tables

Table 1. Name and Address of the co-partner...................................................

Table 2. The list of partners Contribution of 30% Capital................................
Table 3. Financial planning…………………………………..................................

List of figures
Figure 1. Ethiopian Cultural Breads and Western Varity Breads .................5
Figure 2. The Logo and Moto of Bread zone Bakery and Delivery.............8
Figure 3. Bread Zone Bakery Future Additional Products............................9
Figure 4. Our company Management structure...........................................12
 1.Executive summary

The Bread Zone Bakery and delivery shop is a PLC business which will establish
in the next year March 1st ,2023 G.C by 8 business men and women. the bakery is
located in the heart of the city Bole, Edna mole Building 1 st floor, Addis Ababa, Ethiopia.
This business is as a basis for production and distribution of Varity kinds of High-quality
breads, including our famous traditional breads like Kita, Mulmul, Difo, Ambasha,
kocho and Injera too. The business is formed in the form of plc with equal capital
accumulations. The accumulation capital uses to begin the business is 4,000,000Etb (-
four million Ethiopian birr) which 30% is funding by partners and the remaining 70 % is
borrow from other financial institutions as a loan.
As we know, Bakery in Ethiopia is still a crucial and valuable activity because
countries like Ethiopia have citizens who want to consume bread more than once a day.
And regarded as food for the masses. It is taken as breakfast in many houses The needs
and wants of the people for bread consumption in Addis grow from time-to-time. Bread is
consumed by all and sundry- the old, young, poor and rich consume bread on daily basis.
Bread production still remains one of the best investment project one can think of setting
up in the country. irrespective of your location, there is always people that want to buy and
eat bread and the city also the heart of Africa which is a lot of foreign citizens, Diplomats,
Diasporas and tourists is lives or visits the city as well as a lot of international Hotels and
restaurant is booming year to year astonishingly in the city and the needs of high demand
of quality Beards and the foreigners testing their own cultural breads is the main reason to
enables us to start the new bakery and delivery business project in the heart of the city, in
Bole.
2.Introduction

Bread Zone bakery and Delivery Shop is a PLC business which will
establish in next year March1st 2023 by the eight businessmen in bole sub city,
Addis Ababa, Ethiopia. This business is as a basis for production and distribution of
different kinds of quality breads including our traditional homemade breads. the
business is formed in the form of partnership with equal capital accumulations. The
accumulation capital used for beginning the business is 4,000,000 ETB which 30%
is funding by partners and the remaining 70% is borrowed from other financial
institutions as a loan.

Bread Zone is built around the belief that eating a healthy, organic breakfast can
have a significant impact on a person's health and attitude, as well as the
environment. also believes that customers can have great tasting with the verity
cultures of all world types of bread with organic baked goods if the right attention is
paid to sourcing, recipes, and consistency. Bread Zone bakery and Delivery will
launch a first location at Bole Medanialem Edna mall 1st floor, to serve customers
and build a local brand which can be leveraged into additional locations in the
coming years.

| Fig 2. The Logo and Moto of bread zone Bakery.

3.Bussiness Summary

 The Company
Bread-Zone will be created to serve the Addis Abeba community and foreigner’s
by exploiting the need for a good bread bakery with additionally serving
traditional bread too it will also offer a variety of high quality, European, American
style and other international artisan breads, and baked fresh in its storefront bakery.
The company's immediate goals are to achieve start up by March 1st, 2023, in
time to capitalize on the lucrative wheat production season.

 Name and address of the company.

The name of the company: Bread Zone Bakery and Delivery Shop
Legal form: PLC (privet limited company)
Contact address: Bole Sub city, Edna Mall Building first floor Addis Ababa,
Ethiopia
Telephone: +251960990002, +251960151617
E-mail address Breadzone@gmail.com
Website www.Breadzonebakery.com
Facebook: Bread-zone official.
Telegram: Bre@ad-zone official.
Type of the business; Product provider

 Name and address of the co-partner.

N name Phone No. Nationality Address Educational

o. Qualification
1 Abey Shimelis +251960990002 Ethiopian Addis Ababa B.S.C
2 Abiy Getachew +251912069874 Ethiopian Addis Ababa B. A
3 Birhanu Alemayehu +251937296705 Ethiopian Addis Ababa B.S.C
4 Dagnachew Abebe +251913712145 Ethiopian Addis Ababa B.S.C
5 Dawit Misge +251912672202 Ethiopian Addis Ababa M.A
6 Eden Tilahun +251946968760 Ethiopian Addis Ababa B.S.C
7 Firehiwotal Alemu +251946869780 Ethiopian Addis Ababa M.A
8 Mahder Engdawork +251945766325 Ethiopian Addis Ababa B.S.C
Table1. Name and address of the co-partner
  Objectives of Bread Zone Bakery and Delivery shop

1. Delivering high quality product with fair price.

2. Advertising our country cultural breads to the whole world.
3. Attract the customer or expand with a short period of time

 Mission of Bread Zone Bakery and Delivery shop

1. To provide quality product at fair market price/value by using quality raw

material supplied by surrounding manufacturing companies.
2. To assess the change in current demand and satisfy the customers need to
increase the business profit.
3. To provide their own cultural breads to different country’s foreign customers,
Diplomats, Diasporas, tourists, hotels and restaurants with affordable priceto
their doorsteps.

 Vision of Bread Zone Bakery and Delivery shop

1. To build our Owen flour factory in 2030 E.C to improve the cost of
production which currently purchased from other factories and to save
different production cost incur associated with transportation.
2. To open a new plant in surrounding neighbors’ country in order to ensure the
profitability of the business and to gain the foreign currency.
3. To advert and export our traditional breads like Mulmul, ambasha, kita, Difo
Dabo, Koscho, Hibist including the famous Ethiopian bread injera to the rest
of world.
 3.1 Business ownership
The Bread zone Bakery and delivery shop is a partnership company and the partners of the
company are the owner of the business and they have equal responsibility for the overall
operation of the business. The partnership is named as in the below list
1. Abey Shimelis
2. Abiy Getachew
3. Birhanu Alemayehu
4. Dagnachew Abebe
5. Dawit Misge
6. Eden Tilahun
7. Firehiwotal Alemu
8. Mahder Engdawork
We all are from different parts of Ethiopian universities on different field of study. This
chance helped us to share our knowledge and idea to build our business.
The product that we supply for our customers are a quality and unique Breads including our
cultural breads once.

3.2 Startup Summary

From the beginning of establishment, the project is financed 30% through individuals'
investment and 70% loans from Banks. Each partner contributions for the establishment of
the project presented in the following table:
No. Partners Name Etb Contributed to the project is: -
1 Abey Shimelis 150,000
2 Abiy Getachew 150,000
3 Birhanu Alemayehu 150,000
4 Dagnachew Abebe 150,000
5 Dawit Misge 150,000
6 Eden Tilahun 150,000
7 Firehiwotal Alemu 150,000
8 Mahder Engdawork 150,000
Total 1,200,000

Table 2. The list of partners Contribution of 30% Capital.

The remaining source of capital Two million eight hundred (2,800,000) Etb which is
70% of the total capital funded from bank us a load with 9% interest rate.
3.3. The shop Location and facilities
The Location of existing bakeries business is mostly concentrated for the first
time at the center of the city bole sub city, Edna moll Building 1 st Flore ,Addi Ababa.
Because of, to reach many people easily, to play a role of adverting with in the short period
of time.

Additionally, this location is selected because of the following considerations: -

1. A lot of International Hotels, Embassy’s, Diplomat residence, Caffes, Restaurants and

Burger shops are located at the center of the city (in bole).
2. This location will help to approach/easily get the raw materials from the nearest
zone/area when the business is constructed its own factory to the near future.

3. Penetrating the market with a High exposure This will be a helpful for the business to
get easily recognition and Opportunity to visited from the customers.

3.4 SWOT Analysis

Strength
1. We are ready for addressing a quality, attractive, affordable and variety of product
the customers.
2. Increase market share by using low price strategy.
3. The organization use input materials and other equipment in proper way.
4. In order to keep our high-quality promise, we often ask nutrition specialist to give
advice for our products
5. A well-designed website.
6. Social media marketing effort. We cherish our customers’ reviews online, so we
activate on social media, and keep updating the latest information.
7. We also hire the research team to figure out what’s the best ingredients for our
products.
8. Our package design is very unique and attractive.
 Weakness

1. Can’t Purchasing our own Delivery Cars

2. Lack of skilled man power on the product of foreign breads
3. Due to the fact that this is not big chain store, we may
4. face deliver delay issue for the customers because of not sufficient branches in the
city

Opportunity

1. We consider the small level societies available the product with a low price in terms
of the bread.
2. It is good for the society to create a lot of job opportunities
3. It’s good for foreign customers to test they cultural Breads
4. It’s a good opportunity to the wheat farmers to product more wheats as a row material
for our Bakery.
5. Generating a foreign currency to our county in the future.

Threat

1. Lack of raw materials specially for the foreign type’s breads.

2. Lack or fluctuation of electric power.
3. Uncertain Political environment.
4. Uncertain Price fluctuation of raw materials

4. PRODUCT

The Kik start Main products of the Bread-Zone breads and bakery shop is Ethiopian
Traditional breads lick Difo Dabo, Ambasha, Kita, Kocho Mulmul and the western breads
Sourdough, Baguette, Brioche, Focaccia, Soda bread, Potato bread, Matzo, Pita and the
famous French bread Miche bread (a traditional French whole wheat bread).
4.1 product description

Bread-Zone breads will stand out from the competition due to their uniqueness
and outstanding quality. Most of the breads are cultural and European, including
Sourdough, Miche bread (a traditional French whole wheat bread), and Sourdough Rye.
These breads are made by the sourdough method which uses no added yeast. This
method imparts a rich flavor, which can be tangy or mild, as well as a toothsome inner
crumb and a crackly crust. By using this method, a skilled baker can create truly
delicious breads without added fats or sugars, making many of Bread-Zones products
100% fat free. Sourdough breads also have an extended shelf life, remaining fresh for
days without the use of preservatives. Bread-Zone will also offer specialty breads, which
will be made in the sourdough way with the addition of such luxurious ingredients. Spent
Grain Bread, made with barley leftover from beer brewing, is another unique product
that Bread-Zone will offer. Two varieties of French style baguettes will be offered fresh
daily, a high demand product that is available nowhere else in Addis Abeba. Bread-Zone
will also produce White and Wheat Sandwich Breads with soft crust and a tender crumb
for traditional American Style sandwiches and traditional Ethiopian breads as the needs
of the customer change, so will the lineup of Bread-Zone's products. The bakery
equipment is chosen with versatility in mind.

4.2 Productions

Production of sellable breads is projected to begin on March 1st 2023. Raw

ingredients will be ordered for twice a month delivery from flour mills, at which
time a two-week production schedule will be drawn up. Ingredients will be stored in
a dry storage area and in a walk-in cooler.

Scheduling will begin with three large bakes per week and two small bakes.
Due to the extended shelf life of sourdough breads, product can be sold for two days
before staling. Each bake day the baker will bake breads in a deck oven. The oven
provides intense, even heat and a controllable amount of steam injection, allowing
tremendous control of crust crispness. Everything from soft white sandwich breads
to thick crusted, dense savory breads to sweet baked goods can be perfectly baked in
this oven. While breads are baking, the baker will begin mixing the long fermenting
 dough’s to be baked off the next day. Labor saving equipment including a dough
divider and

bread molder makes this possible. Hot breads will begin coming out of the oven by
6:00 AM, and all baking will be finished by 10:00 AM. The storefront will open at
7:00 AM and close at 6:00 PM Monday through Friday. Saturday hours will be 7:00
AM to 4:00 PM for sales only. Part time employees will work the counter and assist
with store maintenance during peak hours while the baker is baking.

4.3 Competitor- comparison

In bakeries, variety breads are likely to be more labor intensive, have a lower
production rate and higher ingredient costs. The greater variety of ingredients take more
space and require more specialized production. Equipment needs to be adaptable
enough to handle the variety doughs but specialized equipment may be required to make
some product types, especially the traditional ethnic breads.

In our country there are a lot of bread bakery shops producing usual breads and
there is no creativity and quality on their products but when we come to our bread zone
bakery, we produce a lot of traditional and wester breads with high quality and delivery
service We also targeted the foreigner needs with high standard and we promote our
cultural breads proudly.

4.4 sales
Specially like our country Ethiopian The bread will appeal to all citizens, householders
and residents whether someone is working class, a business executive, a teacher or a
student there will always be a need for a bakery bread as a daily consumption so
considering this advantage, we delivering the product in shop centered and a premium
service for the international hotels and restaurants who takes a lot of breads, we give a
delivering service to their doorsteps.

4.5 future product

Bread zone Bakery also have future plan to add some additional related products like the
cupcakes in a box, cookies in a tub, banana loaf, best ever donuts and chocolate cakes in a tub
for satisfying our customer’s needs, increasing the business opportunity and making our
business all in one shopping center.

Fig.3 Bread Zone Bakery Future Additional Products.

5. Market Analyses Summery

 Market size
Now a day’s bakery industry is a huge business that caters to people's weaknesses
for tasty breads and varieties of bread type in the world. A Bakery which was expected to
cater millions in Addis Ababa with subsidized and consistent bread supply has ceased
production, leaving the city’s growing number of low-income families in despair. In such
case Bread zone considered this problem and planned to fully addressed the problem
associated with price and break supply, especially to the city’s low-income families and
enough accessible for those who live in town and miss their country’s type of bread, it has
contributed significantly to the community.

 Products
So as to decrease the low quality and illegally nonstandard bread distribution.to
enhance health and hygiene bakery organization in which gives careful ad attentive to
the customers, facilitate our bread to hotels and restaurants who need high demand of
quality bread and viral type of bread. Overall, it’s an accessible and quality bakery that
offers exceptional and unusually fast delivery.

 Prices
 Ethiopia has launched the annual summer wheat production campaign with a
plan to produce more than 52 million quintals of wheat through irrigation. Prime
Minister Abiy

Ahmed launched the 2022/23 Fiscal Year’s summer wheat production campaign in an
event held in the Somali region’s Tuli Guled District with top regional and federal
government officials in attendance. This indicates our market price have seasonal
discounts so as to range for low level customers.

Apart from your product competitors, we can track the prices of suppliers we
buy products from (outsourced or raw materials). For example, while we owning a
bakery and buy our flour from an external company, we can monitor the flour prices of
that company and other flour suppliers to compare price changes and swiftly keep track
of the best deals in the market Sale price for baked goods is calculated by marking up
our cost of goods sold. We need to know the cost of goods sold for each bakery item
that we sell.

 The formula for cost of goods sold is:

Cost of goods sold (CoGs) =ingredient cost + labor cost + variable costs + overhead
Place
Our business is need to maintain accessible location near our suppliers and our target
demographic that also has front of house area which is the heart of the city, Bole sub
city.

5.1 Marketing segmentation

Bread zone Bakery will primarily target the following customer profile:

 Local residents with both low and high class who live in bole sub city to include all
neighborhoods within a 5-mile driving distance
 Business professionals that work on hotels and restaurants
 Foreign citizens to have their cultural bread type
 In order to satisfy with full distributions, we separate our resident customers in
two types. Which are low class and high class customers.as much as both can easily
afford quality bread in one place. We also consider for customers which are far from
our location giving them delivery service for their time management with satisfaction.
Now a day’s hotels and restaurants are mostly seekers for better quality bread for their

business and controlling them can make our profit high. They also need our special
bread types and variety that can control both our market.

5.2 Market Strategy

In order to increase our bakery sales, we have to survive the competition and also it
become our main concern. Moreover, our goal is not just to stay afloat but to become a
go-to place for customers looking for delicious and well satisfying bakery breads.in
such case we should build a strong marketing and sales strategy for your bakery in
order to reach new customers, increase bakery sales and brand awareness.
 It can be hard to get profit in the bakery business without having unique and high-
quality products. However, we have to promote our special beaker products for our
target costumers so as to find as that our brownie recipe is the best in town. One of the
great advantages of a timely promotion is that it can turn our target and random buyer
into a regular customer. 
  Be nice to our customers.
 We hire people who are passionate about what they do and get along easily with
customers. Our choice of staff matters and they can have a strong influence on sales
and our customers’ experience.so we have to find the right way to communicate with
your customers.

Distribution methods
Our target is to make more profit and reach more customers which we concern so,
we try to use a couple of different distribution methods by developing our own website
marketing strategy for our business of bakery products and try to cooperate with
popular online ordering and delivery platforms. That may lead as to participate in local
events, festivals, concerts, etc. It doesn't require huge investments to organize our own
pop-up and cater to people attending an open-air event. At the same time, it's a chance
to reach people who don't frequent the area where our bakery is located.
Add more healthy options It’s well known that our bakery business includes all kind of
world’s cultural bread products so in order to give care for our pleased targeted
costumers we often try to cut down on bakeries to reduce their daily caloric intake.
Although they enjoy what they’re eating, they have to pay the price in the gym. So that
leads our customer’s healthier lifestyles and alternative diets such as vegetarianism,
 veganism, gluten-free diets, etc. We should try to attract lovers of healthy eating by
introducing some of these items on your bakery menu.
 In general, these are some of our marketing strategies that can help us to get more
profitable and engaging wide customer size. Some others are also concerned like make
fantastic bread to excite our costumes with our window shop, having slick ordering
process, Get involved in the foodie community with farmers’ markets, havening
professional price list, build customer retention and planning our time are always
considered.

5.3 Consumer Buying Patter

Opening a bakery can be an amazing business idea if we know how to market it. -
Start with an optimized website and an efficient online ordering system that will allow
us to easily implement our bakery promotion ideas.
Bread Zone’s most important sales strategy is developing an environment in which
customers will return time-after-time because our shop provides knowledgeable,
friendly staff, quality products, and a comfortable atmosphere that fills their needs. 
When customers visit our store, they will know they are entering a clean facility with
the best service in the industry. Our pricing strategy will focus on providing high
quality products and services at a fair price. 
We will make use of local discounts, daily specials, and new products to keep
customers interested and to help them feel they are getting a good value. 

6. management summary
The Bread Zone Bakery and delivery shop will consist of eight full time
employees. additional assistance will be acquired on a part time basis and /or through
the use of consultants, specifically in legal matter on the way of establishing the
company. Detailed descriptions are found in the following section.

6.1. Management team

The Bread Zone Bakery and delivery shop will organize in to three functional areas:
production sourcing, sales, and marketing; production and shipping; and financing and
administration.

1.MrAbiy shimelis: CEO/ president in charge of financial administration. Abiy has

worked in awash bank in the financial expert for 6 years. before starting bread zone, he
was the chief financial officer of awash bank. he began working for awash bank after
he finished an accounting degree in Dire Dawa university.
 2.Mr Birhanu alemayew: sales and marketing officer in charge of product sourcing,
sales, and marketing. Mr. birhanu Alemayehu completed his BA degree in wolaita Sodo
university in marketing and sales management and worked for several years at ethio-
Djibouty railway share compony as a marketer.

3.Mr Dawit Misge driver and distributor in charge of production and shipping. Mr.
dawit worked as a civil engineer for Ethiopian government as a road authority after
completing an engineering degree at the university of Addis Ababa. he is responsible
for the supervision of all plant employee.

6.2 Our Business Structure

1. Chief Executive Officer
2. Chief Baker
3. Assistant Bakers
4. Admin and Personnel Manager
5. Sales and Marketing Officer
6. Accountants / Cashiers
7. Drivers / Distributors
8. Security Officers
9. Cleaners

Job Roles and Responsibilities

1. Chief Executive Officer – CEO:

 Responsible for providing direction for the business
 Creating, communicating, and implementing the organization’s vision, mission, and
overall direction – i.e., leading the development and implementation of the overall
organization’s strategy.
 Responsible for the day to day running of the business
 Responsible for handling high profile clients and deals
 Responsible for fixing prices and signing business deals
 Responsible for recruitment
 Responsible for payment of salaries
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Reports to the board
 2.Bakery Manager:

 Responsible for managing the daily activities in the bakery

 Ensures that the bakery facility is in tip top shape and conducive enough to welcome
customers

 Interfaces with third – party providers (vendors)

 Reports to the Chief Executive Officer
 Attends to Customers complains and enquiries
 Prepares budget and reports for the organization
 Any other duty as assigned by the CEO

3.Chief Chef:

 Responsible for preparing different flavor and style for all our bakery products
 Make lists and budget for bakery supplies
 Oversees the entire bakery process
 Responsible for training new bakers
 Makes sure that quality in maintained at all times

4. Sales and Marketing Officer:

 Responsible for marketing the company’s products and services
 Responsible for promoting the company
 Responsible for creating marketing and sales strategies, etc.
 Represents the organization in some strategic business meetings
 Ensures that our wholesale Customers get supplies of our products as at when due
 Any other duty as assigned by the Chief Operating Officer / Bakery manager

5. Accountant / Cashier:
 Receives payments on behalf of the bakery
 Issues receipt to customers
 Prepares financial report at the end of every working week
 Handles all financial transaction on behalf of the bakery
 Interfaces with our bankers
 Responsible for payment of tax, levies and utility bills
 Any other duty as assigned by the CEO / manager

6. Distribution Van Drivers:

 Delivers customer’s orders promptly
 Runs errand for the organization
 Any other duty as assigned by the sales and marketing executive / bakery manage
 7. Security Officers
 Ensures that the facility is secure at all time
 Controls traffic and organize parking
 Gives security tips to staff members from time to time
 Patrols around the building on a 24 hours basis
 Submits security reports weekly
 Any other duty as assigned by the manager

8. Cleaners:
 Responsible for cleaning the facility at all times
 Ensures that toiletries and supplies don’t run out of stock
 Cleans both the interior and exterior of the building
 Any other duty as assigned by the manager
6.2. Organization and Management

The company will have four major departments: Production, Finance and Human
Resources. Bread Zone Bakery and Delivery Shop will have a standalone management
team and the organizational structure of the envisaged company is shown on the
following page:

7.Financial Planning
As the profit and loss table shows, bread zone bakery expects to continue its steady growth in
profitability over the next five years of operations. The income statement (profit and loss
statement) shows the revenue, expenses, and net income (or net loss) for a period of time. Net
income is the amount by which total revenue exceeds total expenses. The resulting profit is
added to the partners capitals. A net loss reduces the partners’ capital account.

1. Year-one
revenue expectancy

Bread 1 Bread 2 Bread 3 Bread 4

 Number of units sold 2,800 1,200 1,600 28,000
annually
Average sales price per unit Br 100.00 Br 80.00 Br 40.00 Br 2.00

Annual revenue per product Br 280,000 Br 96,000 Br 64,000 Br 56,000

Total year 1 revenue Br496,000

2. Year 1 cost of goods sold expectancy

Bread 1 Bread 2 Bread 3 Bread 4
Expected gross margin per 50.00% 40.00% 25.00% 50.00%
product

Annual cost of goods sold Br140,000 Br 38,400 Br 16,000 Br 28,000

per
product

Total year 1 cost of goods sold Br 222,400

3. Annual maintenance, repair, and overall

Factor (%) on capital equipment 15%
4. Number of years for straight-line depreciation 5
5. If long-term debt is being used to finance operations, enter the total Br 80,000
loan value.

Table 3. Financial planning

7.1 implementation summary

 Strategy and implementation

Our strategy focuses on serving a niche market with quality goods. We are determined to
become a part of the community – an establishment that becomes as much of the community
as a church or local grocery store. To achieve these goals, we will provide the following:

Friendly, neighborhood-feel atmosphere.

Quality baked goods for everyone to enjoy at a fair price.

Special diet menus in relation to the advice of local healthcare providers.

 Sales strategy

Our strategy focuses on building a customer base by providing good customer experience.
With the addition of the coffee bar and lunch menu in early in the morning, we hope to have
customers make the bakery their one-stop destination for breakfast or lunch. In the rainy time,
when we open the outdoor patio, more and more customers will make the bakery a
destination for their lunches more often since the atmosphere will be so pleasing. We would
also like to work closely with local hospitals and hotels to make order from us in any time at
any please. we also plan to have an online system like RIDE to deliver bread with a right time
in a right moment. we also plan to give additional gifts for customers who buy frequently
from our shop.

 Sales forecast

our sales forecast assumes the following things:

 Bread sales in the morning will have high profit b/c of in Ethiopia specially in Addis
Ababa breads will be in the table in breakfast time which is easy to prepare food with
bread
 In the night time most of Addis Ababa people buy bread for the morning if they don’t
want to walk up in the morning and go outside only for the purpose of buying bread
 To make our customer to much rely on us we also plan to sales our product with cars in
place where there is bus station during the waiting time for the bus, they can buy bread
from us.

Competitive edge
Our competitive edge is our quality of goods. We use only pure flours of the highest
quality that create incredible non-gluten goods that can’t be matched anywhere else in the
capital city of Ethiopia.

7.2Financial information
7.2.1 Our Startup Budget & Expenditure

 The Total Fee for Registering the Business in Addis Ababa: 10,000 ETB.
  The budget for insurance, permits and license: 10,000 ETB
 The Amount needed to acquire a suitable Facility for 6 months in Bole, Addis Ababa
(face lifting of the facility inclusive): 100,000 ETB.
 The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables
and chairs): 200,000 ETB.
 The Cost for Bakery Equipment (Standard commercial oven, Proof boxes, Baking
Sheets and Racks, Mixers, Work Tables, Sinks, Slicers, Scales, Cake decorating Tools,
Ingredient Bins and baking utensils): 150,000.
 The Cost for supply of flours, sugar, margarine, packaging materials and wheat for a
month: 500,000.
 The Cost of Launching a website: 1,000 ETB
 The cost for our opening party: 5,000 ETB
 Additional Expenditure (Business cards, Signage, Adverts and Promotions: 5,000 ETB

TOTAL EXPENSES: 981,000 ETB

Going by the report from our research and feasibility studies, we will need an
average 4,000,000 to set up a standard bakery in Bole, Addis Ababa. From our projections,
we are likely going to start making profits after the first 3 years of setting up the business and
we have put plans in place to take care of the overhead and operational cost.

7.2.2 Financial Projection

Sources of Income
Cash flow is the lifeline of any business, which is why we have put plans in place to ensure
that we have assorted bakery products that will guarantee that we generate enough income for
the business. No doubt without sales – income, a business will definitely fold up and close
shop.
We don’t intend to build a business that will struggle to pay the salaries of its workforce
(overhead) and also struggle to maintain operational cost. Top Taste Confectionaries is set to

take the market by storm with the variety of products we have on our stable. Here are the
sources we have put in place to generate resources for Top Taste Confectionaries;

 Selling diverse of cultural breads ,Etiopian cultural enjera,kita,kocho (wholesale and

retailing)
 Offering home delivery services to our customers
 Recruiting, training and allocation of bakers to our clients (part of our consultancy
services)
 Running a top notch government approved bakery institute in Bole, Addis Ababa
 Offering consultancy services in line with our business goal
 Sales of drinks in all of our bakeries
Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our
feasibility studies and also some of the assumptions readily available on the field. This is for
sales projections based on the operation of just one bakery outlet in Bole, Addis Ababa.
Bread (Wheat, Flour Bread, Fruit Bread, foreign cultural breads and all flavors and types of
Bread on our stable:

 8,000 Bread Per Day

Ethiopian cultural breads, kita, mulmul

 8000 pieces per day
Sale / Supply of injera:

 5000 per day

N.B: This projection is inclusive of the products we are likely going to sell in our outlets and
the products we are to supply to other outlets / wholesale customers who in turn will retail our
products. So, it might be a bit challenging to place a specific amount that we are likely going
to make from the sales.
Please note that this projection is based on the first 6 months of opening shop to the general
public meaning that the quantity of sales we make may likely double or triple after these 6
months.
INCOME:
Breads: Selling a loaf of wheat bread at the rate of 10 ETB

 10,000 wheat bread will cost 100,000 ETB

Selling a loaf of flour bread at the rate of 5 ETB

 10,000 flour bread will cost 50,000 ETB

Selling a loaf of Mulemul bread at the rate of 10 ETB

 8000 Mulemul bread will cost 80,000 ETB

Injera: selling a piece of injera at the rate of 15 ETB

 5,000 pieces of injera will cost 75,000 ETB

Selling a piece of kita at the rate of 5 ETB

8,000 pieces of kita will be sold at 40,000 ETB
Selling a loaf of foreign cultural breads with average rate of 20 ETB
8000 Foreign cultures bread will cost 160000
TOTAL INCOME: 505,000 ETB

ON-GOING OPERATIONAL EXPENSES:

This projection is based on the first 6 months of opening shop to the general public

 Office supplies (stationaries, equipment,);3,000 ETB

 Other miscellaneous expenses including rental;40,000 ETB
 The Cost for supply of flours, sugar, margarine, packaging materials and wheat et al for
the next five month: 2,500,000 ETB.
 cost required to settle the contract staffs for the first 6 months of operation 100,000
ETB

TOTAL 2,643,000 ETB

N.B: This projection is inclusive of the products we are likely going to sell in our outlets and
the products we are to supply to other outlets / wholesale customers who in turn will retail our
products. So, it might be a bit challenging to place a specific amount that we are likely going
to make from the sales.
Please note that this projection is based on the first 6 months of opening shop to the general
public meaning that the quantity of sales we make may likely double or triple after this 6
month.
 7.4 bibliography
1. Abey Shimelis
2. Abiy Getachew
3. Birhanu Alemayehu
4. Dagnachew Abebe
5. Dawit Misge
6. Eden Tilahun
7. Firehiwotal Alemu
8. Mahder Engdawork
7.5Appendix
1. Table1. Name and address of the co-partner
N name Phone No. Nationality Address Educational
o. Qualification
1 Abey Shimelis +251960990002 Ethiopian Addis Ababa B.S.C
2 Abiy Getachew +251912069874 Ethiopian Addis Ababa B. A
3 Birhanu Alemayehu +251937296705 Ethiopian Addis Ababa B.S.C
4 Dagnachew Abebe +251913712145 Ethiopian Addis Ababa B.S.C
5 Dawit Misge +251912672202 Ethiopian Addis Ababa M.A
6 Eden Tilahun +251946968760 Ethiopian Addis Ababa B.S.C
7 Firehiwotal Alemu +251946869780 Ethiopian Addis Ababa M.A
8 Mahder Engdawork +251945766325 Ethiopian Addis Ababa B.S.C

2. Table 2. The list of partners Contribution of 30% Capital.

No. Partners Name Etb Contributed to the project is: -

1 Abey Shimelis 150,000
2 Abiy Getachew 150,000
3 Birhanu Alemayehu 150,000
4 Dagnachew Abebe 150,000
5 Dawit Misge 150,000
6 Eden Tilahun 150,000
7 Firehiwotal Alemu 150,000
8 Mahder Engdawork 150,000
Total 1,200,000

3. Table 3. Financial planning

1. Year-
one
revenue
 expectancy
Bread 1 Bread 2 Bread 3 Bread 4
Number of units 2,800 1,200 1,600 28,000
sold
annually
Average sales Br 100.00 Br 80.00 Br 40.00 Br 2.00
price per unit
Annual revenue Br 280,000 Br 96,000 Br 64,000 Br 56,000
per product

Total year 1 revenue Br496,000

2. Year 1 cost of goods sold expectancy

Bread 1 Bread 2 Bread 3 Bread 4
Expected gross 50.00% 40.00% 25.00% 50.00%
margin per product

Annual cost of Br140,000 Br 38,400 Br 16,000 Br 28,000

goods sold per
product

Total year 1 cost of Br 222,400

goods sold
3. Annual maintenance, repair, and overall
Factor (%) on capital equipment 15%
4. Number of years for straight-line depreciation 5
5. If long-term debt is being used to finance operations, enter the Br 80,000
total loan value.

4. Management structure
5.Fig 1.Ethiopian Cultural Breads and Western Varity of Breads

6.Fig 2. The Logo and Moto of bread zone Bakery.

7. Fig.3 Bread Zone Bakery Future Additional Products.

7.5References
1. ADDIS ABABA UNIVERSITY COLLEGE OF NATURAL AND
COMPUTATIONAL SCIENCES CENTER FOR FOOD SCIENCE AND
NUTRITION Physicochemical and Techno-Functional Properties of Recently
Released Ethiopian Bread Wheat (Triticum aestivum. L) Varieties Grown in
Kulumsa, Arsi, Ethiopia By: Cherinet Kasahun Advisors: Paulos Getachew
(PhD) Workineh Abebe (PhD)
http://213.55.95.56/bitstream/handle/123456789/22367/Cherinet%20Kasahun
%20%202020.pdf?sequence=1&isAllowed=y
2.Boka B, Woldegiorgis AZ, Haki GD. Antioxidant Properties of Ethiopian
Traditional Bread (Injera) as Affected by Processing Techniques an d Tef
Grain (Eragrostis tef (Zucc.)) Varieties. Can Chem Trans. 2013;1(1):7–24.
3.Benton JT. Baking as cultural heritage: regional variation in the Roman
production of bread. In: Benton JT, editor. The Bread Makers. London:
Palgrave Macmillan; 2020. p. 37–89. https://doi.org/10.1007/ 978-3-030-
46604-6_2.
 4.Nkhabutlane P, de Kock HL, du Rand GE. Culinary practices: preparation
techniques and consumption of Basotho cereal breads in Lesotho. J Ethn
Foods. 2019;6(1):1–11
5.FAO—Food and Agriculture Organization of the United Nations. Food and
Nutrition Division. Nutrition country profle. Somalia. Rome: FAO; 2005. p.
1–32. http://www.fao.org/3/aq045e/aq045e.pdf. Accessed 31 Aug 2021.
6.Alpers EA. The Somali community at Aden in the nineteenth century.
Northeast Afr Stud. 1986; 8:143–68. 10. Pasqualone A. Traditional fat breads
spread from the Fertile Crescent: production process and history of baking
systems. J Ethn Foods.
7.Business Plan of Elu Bakery Marry land international college.

 Referred Web sites

1.https://www.ethiopianreporter.com/112299/
2.https://jfqhc.ssu.ac.ir/article-1-438-en.pdf
3.https://www.lacademie.com/types-of-bread/
4https://www.tasteatlas.com/most-popular-breads-in-ethiopia
5.https://www.poppyandprune.com/2019/02/04/world-shabbat-breads-dabo-
the-other-ethiopian-bread/
6.https://ethiopianfood.wordpress.com/2014/12/01/getting-a-rise-out-of-
ethiopian-bread/
7.https://journalofethnicfoods.biomedcentral.com/articles/10.1186/s42779-
022-00138-3