BUSINESS PLAN ON BALTINA AND SPICES SHOPS

PREPARED BY: IDNO

1. Abilala Belete ……………………….........………….........................Ru/1666/13

2. Adinew Hendiso................................................................................Ru/3122/13

3. Agamsu Webre..................................................................................Ru/3097/13

4. Bruktawit Tsige.................................................................................Ru/3169/13

5. Genet Solomon..................................................................................Ru/0252/13

6. Mohammed Mohammed………………………………………………….Ru/2769/13

7. Mubarek Mohammed …………………………………………………….Ru/3378/13

8. Misgana Kebede ………………………………………………………….Ru/0251/13

9. Sifrash Amanu …………………………………………………………….Ru/3805/13

10. Zelalaem Deselagn ………………………………………………………..Ru/3461/13

OWNER PROFILE

Address; JIMMA CITY

Tell. Of work place: / 0917598203

NAME OF BUSINESS: JIMMA BALTINA AND SPICES SHOPE

Jimma, Ethiopia

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Submitted to:Instructer Tsion
submission date:Feburary 2022

Executive summary------------------------------------------------------------------------------------iv
1. Business description--------------------------------------------------------------------------------4
2.2 Mission of business------------------------------------------------------------------------------------------------------ 4
2.3. Visions--------------------------------------------------------------------------------------------------------------------- 5
2.4 Objective------------------------------------------------------------------------------------------------------------------- 5
2.4.1 Short term objective----------------------------------------------------------------------------------------------- 5
2.4.2 Long term objectives---------------------------------------------------------------------------------------------- 6

3. Service Description---------------------------------------------------------------------------------6
4.Market Research And Analaysis-----------------------------------------------------------------6
4.1, what is market?---------------------------------------------------------------------------------------------------------- 6
4.2. Target Market------------------------------------------------------------------------------------------------------------ 6

5. SWOT Analysis--------------------------------------------------------------------------------------7
5.1. Strength of the competitors------------------------------------------------------------------------------------------- 7
5.2. Weakness---------------------------------------------------------------------------------------------------------------- 7
5.3. Opportunity--------------------------------------------------------------------------------------------------------------- 7
5.4. Threats--------------------------------------------------------------------------------------------------------------------- 7

6. Marketing plan---------------------------------------------------------------------------------------8
6.1 Pricing---------------------------------------------------------------------------------------------------------------------- 8
6.2 Promotional mix--------------------------------------------------------------------------------------------------------- 8
6.3.Product type.-------------------------------------------------------------------------------------------------------------- 8

7. location-------------------------------------------------------------------------------------------------9
8.Competition--------------------------------------------------------------------------------------------9
8.1 Competitive advantage of Mehammed Balitena and spices shop---------------------------------------------9

9. Management and operation-----------------------------------------------------------------------9

10. The Business budget------------------------------------------------------------------------------10

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 10.1 Starting capital of the business------------------------------------------------------------------------------------ 10
10.2.List of investment conditions-------------------------------------------------------------------------------------- 11
10.3.Raw materials, which are necessary to conduct our business.----------------------------------------------11
11. Financial Plan----------------------------------------------------------------------------------------------------------- 12
11.1. Start-up Funding----------------------------------------------------------------------------------------------------- 12

12. Financial documentation------------------------------------------------------------------------13

12.1 Profit and Loss Statement------------------------------------------------------------------------------------------ 13
12.2. Income statement of balitena and spices business plan for year 1----------------------------------------14
12.3. First year Balance sheet statement of the business-----------------------------------------------------------16
12.4. First year cash flow statement of Jimma balitena and spices business plan for year 1.--------------16

13. Assumption to projected financial statement----------------------------------------------17

13.1 Break even analysis-------------------------------------------------------------------------------------------------- 18
13.2.Source of capital------------------------------------------------------------------------------------------------------ 18

14. Conclusion------------------------------------------------------------------------------------------19
15.Agrement Of Partenership-----------------------------------------------------------------------19
16. APPENDEX---------------------------------------------------------------------------------------20

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Executive summary
Jimma balitena shop will be start as a partnership between 10 domestic investors (partners:
Abilala, Adinew, Agmasu, Biruktawit, Genet, Mohammed, Mubarak, Misgana, Siferash, and
Zelalem). The shop will provide qualitative cereal domestic consumption product such as shero,
lentil, paper, bean, pea, and bulla, beso, abish and different spices for domestic customer of the
socities of jimma and around in order to make the healthy in their life.

Our initial statement to Invesstors and Financial Lenders, this balitena and spices business plan is
a candid disclosure Abilala, Adinew, Agmasu, Biruktawit, Genet, Mohammed, Mubarak,
Misgana, Siferash, and Zelalem of business proposal - our intent is to set realistic business
expectations, and reduced any questions about the profitability of this business venture.

Entrepreneurs have a tendency to paint the Jimma balitena and spices shop business plan with a
very optimistic brush, highlighting strengths and camouflaging the risks. We, as business
owners, have a vested stake and financial commitment in the success of this balitena. Our intent
is to have a definitive business, financial, and marketing plan that not only serves our need for
capital financing, but also is utilized as our daily business roadmap. We have taken all
precautions to validate or success our business and financial models, focusing on realistic
projections.

Our beginning capital is about 22340 birr for the purchasing of fixed assets and for the operation
of different works our business need 20461 birr with a total birr of 42801. From this amount we
get 34240 amounts from commercial bank of Ethiopia credit and institution through loan and its
loan repayable over three years. As owners, our commitment is to take personal accountability
for all financial debt. We will take the necessary precautions to ensure the business is fully
capitalized with in three year, and have addressed all financial shortfalls to ensure a successful
business start-up.

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1. Business description
The name of this business is Jimma balitena and spices shops which will start as a business in
Jimma city. As we observed in this area there is some competitor which supply both
qualitative and quantitative balitena and spice products for individuals, relatively small and
medium hotels, also we assume that most of the customers of this business will be the above we
mentioned. Also in this area we observed that most of the communities’ populations of this area
are collage students and the other includes those who did not married. So such types of
individuals highly need the product of our balitena and spices keeping competitors constant.

1.1 Mission of business

 The aims of our business is to fill a clear gap in the market and cater for growing
customer demand for high quality, healthy premium of finished baltena consumption
products

1.2. Visions

 The vision is to have not only profit maximization of the owner of the business, but also
efficient and superior service - customer satisfaction is our paramount objective. Jimma
balitena will be the choice for all a mature and adult crowd, couples and singles, young
and old, male or female.
 Employee welfare, participation, and training are equally important to our success.
Everyone is treated fairly and with the utmost respect. Our employees will feel a part of
the success of Jimma Baltina Company.

1.3 Objective

Our business has two main objectives for the first three years of operation include

1.3.1 Short term objective

 Solving the market problem of the area by addressing or supplying of better and quality
products to the customers.
 Providing a better quality of finished balitena product to increase our customers.
 Achieving the average estimated sales per year.

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1.3.2 Long term objectives

Expanding our marketing and advertising in Ethiopians neighboring country to increase our
customer base from abroad.

 To expand the existing business area and starting another similar business in a unique
Mid city destination of other areas in side our country..
 To create better job opportunity for people
 To improve equality and performance of our employees

2. Service Description
The type of business is service offering therefore we focus on customer to give quality service in
order to absorb many customers.

3. Market Research and Analaysis

Instead of building a business around a preconceived concept, we conducted market
research and built a concept around our consumers.
According to survey and observation we have conducted, people which are around
Jimma area are densely populated and some of them (self- employed and investors) run
their own business and government employees those who are not run their business such
as a university lectures, bankers, private college lecturers. Therefore, there are a great
competition between them especially the investors and self- employed workers. Those
competitors have their own strength and weakness.

3.1, what is market?

These deals with current market condition that show high demand of product with reasonable
price that help us sustainability of our business enterprise growth.

3.2. Target Market

Jimma baltina and spices shop supply its products to all society and institutions but its target
market is College students, Blue-collar worker, and Government employee. Our main variable
we use to target market is income level and age. Target market is the type of customers you

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target with in the market .The product of our business is Balitena product. The brand of the
business is designed to provide Balitena to all users of our products.

4. SWOT Analysis

It shows the strength, weakness, opportunity and threat of the business

4.1. Strength of the competitors

Our competitors have an experience in this market (balitena) since they are worked for a long
period of time than us. The other strength of our competitor has greater financial services
because of most of the relatives of our competitors. In addition, they have a greater access of
information about the market activities.

4.2. Weakness
The main weakness of our competitors are they did not well known spices which are produced in
well agricultural places that are used for the increasing of the flavor and quality of the balitena
products. But we will prepare the product with highest quality by adding different spices in order
to increase its flavor and to attract our customer price.

4.3. Opportunity
 High demand of the customers to wards these balitena products.
 The status of using the standard technology to grow our
productivities.
 There will be shortage of suppliers

4.4. Threats
 Will there be increasing of tax.
 Will there be inflation.
 The high increment of rent of house

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5. Marketing plan
Product /service- Generally we provide domestic consumption services for our customers with
sound price, better ethics, at right place with right time but we add some features for competitive
advantage and for the quality of product, we bring out. In addition to this, we will also provide
some training for the best customer how to run such types of business. In general, our market
business consist the 4PS, which are price, product, place and promotion.

5.1 Pricing

The price we have setting depends on the price of our competitors but we will have made some
modification in order to cover some of our costs. we will try to discount the prices of the product
in order to attract our customers, if it doesn’t have much effect even if it have some losses in
our business flow of cash.

5.2. Promotional mix

In order to be advertising our product that we produce we have assumed to follow the following
methods depending on market demand. The promotion method will be:

1. We will use postures, and business cards in order to advertise

2. We will advert our products by participating on different exhibition and bazaars

3. Also we will use poster in local notice areas tapela in front of our business area.
5.3. Product type.
The main product that we will assume to produce includes prepared paper, peas, shero
lentil, bean kik, onion, bulakimem, tikurkimem, beso, abish and other special spices.
6. Location
Jimma balitena and spices shops will be located in Jimma city. The shop will operate
during peak service time to take advantage over other competitor. The market branch
operated on all days in a week. But, especially on Monday & Friday - Market brunch
exercise at all-time due to different reason.

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 The main reason that we select this area is;
1. The presence of wide market on the city and its round.

2. Relatively it is preferable on the availabilities of infrastructure in order make the

customer can get the product at any time.

7. Competition
The acts of competing as for profit to gain advantages for achieving their goal in the business.
There are many competitors those produce and sale similar products of our business.

 Selam Balitena and spices shop

 Tekabe Balitena and spices shop

7.1 Competitive advantage of Jimma Balitena and spices shop

We make high effort for satisfying our customers and in order to get acceptance of our business
over other competitors by providing:-

 Qualified product with low price

 Improving the needs of our society

8. Management and operation

Jimma baltina and spices shop is a partnership organization. Abilala, Adinew, Agmasu,
Biruktawit, Genet, Mohammed, Mubarak, Misgana, Siferash, and Zelalem are the founder of
Melatibalitena and spice enterprise. The Ownership owned and operated by 11persons. The
enterprise, being small in nature, requires a simple organizational structure. Implementation of
this organizational form calls for the entire owner, to make all of the major management
decisions in addition to monitoring all other business activities. Thus,
1) Abilala --------------------------------- General manager of this business
2) Adinew -------------------------------------------- advertising manager
3) Agmasu -----------------------------------------------secretary
4) Biruktawit-------------------------------------------purchasing manager

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 5) Genet --------------------------------------------inventor ship
6) Mohammed ---------------------------------------------seller

9. The Business budget

The following tables that shows the amount of capital that we invested on raw
materials for the success of our business.

9.1 Starting capital of the business

N o .
Investment Cost
1
Place of production

2
Production house 20000
3
Manual production machine 2340

Gross investment
22340

Expense for operating

4
One workers job fee per month 1000

5
Expense of raw materials per month1 19461

6
Different expense per month

7
total operating expense 20461

8
Total starting capital 42801

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9.2. List of investment conditions
No. Kind of investment Identification measurement Quantity Unit price Total price

1 Place of production
2 House of production Cont ai ne r
1 20000 20000
3
Tishet 4 150 600
4
safai 4 35 140
5
Kinda 50 22 1100
6
plastic M 10 40 400
7
Mabeterya Km 4 25 100
Gross investment 22340

9.3.Raw materials, which are necessary to conduct our business.

Kinds of investment Measurement (in killo) Amount Unit price Total cost
1
Prepared pepper 100 36 3600
2
Peas shero 100 12 1200
3
Lentil 200 21 4200
4
Bean kik 250 10 2500
7 5
Onion 13 65

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11 5
bulakimen 15 75
12 5
Tikurkimen 50 250
13 4
Avocida 20 80
14 3
Abesh 14 42
15
Salt 40 4 160
16
water 300
17
Light 20
18 Special expenses
500
19 Total raw material
19461
2
Labor force 500 1000

Total 20461

Grand starting capital 5000

10. Financial Plan

The primary element to our financial plan is mantling and improving the factors that create, and
stabilize and increase our cash flow. In addition, helps to treat our variable costs& fixed costs.
The financial plan depends on the assumptions of a strong economy without major recession.

10.1. Start-up Funding

This business plan is prepared on financial amount of birr 42801 in order to obtain birr 57180.29
of retained earnings in the first year. The supplemental financing is required to begin work on

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site preparation and modifications, equipment purchases, and to cover expenses in the first year
of operations.

The following sections lay out the details of our financial plan for the next three years.

11. Financial documentation

11.1. Profit and Loss Statement

The most important assumption in the Projected Profit and Loss statement is the gross margin.
We show an adjustment increase in Year 2 as we exit our start-up phase of the business and
move into our expected annual sales forecast.

This transition shows the Jimma balitena and spices shop managing through its start-up period,
and gaining efficiency and customer loyalty. In summary, the business will develop its customer
base and reputation and the growth will pick up more rapidly towards the second and third years
of business.

11.2. Income statement of balitena and spices business plan for year 1
Sale of product..............................................................................................369600

 Cost of goods sold..............................................................................245532

 Gross profit........................................................................................124068
 Operating expense..............................................................................26837.64
 Operating income before tax and interest..........................................95230.36
 Interest expense..................................................................................1236.47
 Income before tax..............................................................................93993.89
 Tax payment.......................................................................................24813.6
 Income after tax.................................................................................69180.29
 Dividends...........................................................................................12000
 Retained earnings...................................................................57180.29

11.3. First year Balance sheet statement of the business

The following the beginning balance sheet of Jimma baltina Statement of balance sheet
For beginning year 2014
Asset

Current asset

Cash....................................................................................................20461

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 Account receivable.............................................................................0

Total current asset.............................................................................20461

Fixed asset

Housing............................................................................................20000

Equipment.........................................................................................2340

Total fixed asset................................................................................22340

Total asset......................................................................................................42801

Liability and owner equity

Liability

Current liability................................................................34,240

Note payable....................................................................0

Total liability...................................................................................34,240.8

Owner equity....................................................................................8,560.20

Total liability and owner equity.....................................................................42801

12.4. First year cash flow statement of Jimma balitena and spices business
plan for year 1.
Cash inflow from operating activities

Net income............................................................................................57180.29

Depreciation expense...........................................................................0

Account payable...................................................................................11413.6

Net cash flow from operating activities...................................72017.93

Subtract

Cash flow from investing activities

Sale of equipment...............................................................................0

Purchase of equipment .......................................................................2340

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 Net cash flow from investing....................................................................69677.93

Cash flow from financing activities

Payment for dividends........................................................................12000

Net cash flow from financing activities............................12000

Note payable.....................................................................o

Net change in cash............................................................57,677.93

The following table shows the income statement at the end of the 1st and 3rd year

Asset 1st year 2nd year 3rd year

Sale of product 369,600 406,560 447,216

Cost of goods sold 245,532 270,085.2 297,093

Gross profit 124,068 136,474.8 150,122.28

Operating expense 26,837.64 29521.404 32473.544

Operating income before tax expense 95230.36 96182.396 105800.64

Interest expense 1236.47 1360.12 1496..132

Income before tax 93993.89 103,393.279 113739.6

Tax payment 24813.6 27294.96 30024.456

Income after tax 69180.29 76098.319 83708.15

Dividend earning 12000 13200 14520

Retained earning 57,180.29 62,898.319 69,188.181

The following table shows that the balance sheet statement at the end of 1st and 3rd year

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Asset 1st year 2nd year 3rd year

Cash 20,461 22,507.1 24,751`.81

Account receivable 0 0 0

Housing 20,000 22,000 24,200

Equipment 2340 2574 2831.4

Total asset 42801 47081.1 51789.21

Current Liability 34240 37664 41430.4

Account payable 0 0 0

Note payable 0 0 0

Total liability 34240 37664 41430.4

Owner equity 8560.2 9416.22 10357.842

Total liability and owners equity 42801 47081.1 51789.21

The following table shows that the cash flow statement at the end of 1st and 3rd year

Asset 1st year 2nd year 3rd year

Net income 57180.29 62898.319 69188.159

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Depreciation 0 0 0

Account payable 11413.6 11413.6 11413.6

Net cash flow from operating activities 72017.93 79219.723 87141.69

Sale of equipment 0 0 0

Purchas of equipment 2340 2340 2340

Net cash flow from investing activities 69677.93 76645.723 84310.29

Payment of dividends 12000 13200 14520

Note payable 0 0 0

Net cash flow from financing 12000 13200 14520

Net change in cash 57677.93 63445.723 69790.2953

12. Assumption to projected financial statement

 The sale forecast is conservative and assumes 5% increase in year 2 and10% in year 3
 The analysis account for economic season ability.
 Sales are cash basis-not accrual

13. Break even analysis

The break-even analysis show what we need to salary our service for meet cost.

Benefit obtained from the project years

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 N o . Project year
Cost Income Benefit Discount factor 5% Net benefit
1
1st year 245532 57180.29 188351.71 0.23 433220.89
2
2nd year 270055.2 62898.319 207156.88 0.233 48267.55
3
3rd year 297093 69188.159 227904.841 0.234 53075.35
sum
189266.77 534563.79
N.P.V={N.B-initial cost) =534563.79-245532=(+)289031.79 in each year

 hence the business is profitable

13.1. Source of capital

N o .
kind Source amount
1
Own capital Saving 8560.20
2
Credit Commercial bank of ethiopia 34240.8

Gross capital 42801

The amount we get the loan from commercial bank of Ethiopia credit and Institution will paid
over three years (36 months) with an interest rate of 10%.the following table shows the annual
repayment of loan.

Payment
Season of one year

1 2 3 4 5 6 7 8 9 10 11 12

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I n t e r e s t 285.34 285.34 285.34 285.34 285.34 285.34 285.34 285.34 285.34 285.34 285.34 2 8 5 . 3 4
T o t a l 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47

14. Conclusion
As indicated by the above analytical steps of income statement and the balance sheet, this project
named Jimma baltina spices shops” is supposed to be profitable and the daily, monthly and
annual revenue generated from prepared pepar, peas, shero lentil, beankik, onion, bulakimem,
tikurkimem, beso, abish and other special spices is assumed to increase from year to year. The
market, financial, technical as well as organizational aspects are also shown to be feasible.

15. Agreement of Partnership

This letter agreement is made on JANUARY 2022 between the 10 partnership

Owner of Jimma balitena and spices shops

1. Abilala Belete

2. Adinew Hendiso

3. Agamsu Webre

4. Bruktawit Tsige

5. Genet Solomon

6. Mohammed Mohammed

7. Mubarek Mohammed

8. Misgana Kebede

9. Sifrash Amanu

10. Zelalaem Deselagn

16. APPENDEX

 letter of agreement between partners

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 letter of collective agreement of Jimma balitena and spices shops
 letter to commercial bank of Ethiopia industry office
 financial documentation

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