Product and service

High-quality loan for electronics services are what our initiative seeks to give on a national
scale. We also plan to make this service available in the nation's capital and other significant
Ethiopian cities. In order to better serve our consumers, we also intended to build online
loan applications, quick approval processes, and flexible repayment options. Additionally,
our electronic loan giving companies can offer competitive interest rates and personalized
loan options based on the customer's credit score and financial history. Overall, loan for
electronic service companies provide a convenient and efficient way for individuals to obtain
the funds they need for various purposes.

Through advertising and sales promotion techniques including mass mailing, sponsorship,
web advertising, and connections with organisations, the service will reach its customers
and clients.

The main elements of loan for electronics service include a user-friendly online platform,
safe payment methods, quick loan processing, effective customer assistance, and clear
lending terms and conditions.

In order to test the service, we intended to launch it in Ethiopia's capital city of Addis Ababa.
By connecting product suppliers with our clients, we could do it at a lower cost than buying
and dispensing the gadgets ourselves which will avoid liquidity issues.

All in all, we planned to open electronics longing offices locally on main city’s including the
capital based on our customers requirement.

Technology

We will develop a software that can facilitate the collection and loan providing process by
analysing the background of the customer or business organization.

Intended Market Environment

Target market: The target market for a loan service for electronics could include individuals
who require repairs or maintenance for their personal devices such as smartphones, laptops,
and television. Additionally, small businesses and startups that rely heavily on technology
may also be potential customers.
Customers who apply for consumer durable loans, also known as loans for electronics, will
benefit from them because they can pay them back in flexible instalments according to their
financial circumstances and because they can use them to purchase lifestyle products both
online and offline. This will help the project build a positive reputation in the future.

Competition

Since our service is new there is no competition for our organization.

Industry

The enterprise will operate in financial industry , in this industry comprises a broad range of
industries including banks, investment companies, insurance companies, and real estate
firms. The financial sector is a section of the economy made up of firms and institutions that
provide financial services to commercial and customers.

The following are the supply and demand factors for the service that will be provided: The
availability of new and advanced electronic equipment on the market has a considerable
impact on the demand for loans for electronics. People who want to enhance their
technology may need loans to buy these items. Another important consideration is the price
of devices. Not everyone has the financial means to buy high-end equipment outright
because they can be quite expensive. In addition to these, some businesses find it difficult to
get off the ground and meet their electronic needs. while the supply factors constitute since
it is a new project there is no business enterprises in the sector.

We may therefore conclude from the trend analysis that there is a greater demand than
there is supply in the industry. As a result, it keeps the sector fresh and appealing.

The market for loans for electronics is driven by several large forces. Firstly, the constant
innovation and development of new electronic devices leads to a high demand for financing
options to purchase them. Additionally, the rise of e-commerce has made it easier for
consumers to access a wider range of electronic products, further increasing the need for
loans. Another factor is the increasing reliance on technology in both personal and
professional settings, making electronics a necessity rather than a luxury for many
individuals. Finally, the availability of competitive interest rates and flexible payment plans
from lenders will make it more feasible for consumers to finance their electronics
purchases.

Marketing and Sales Strategy

This section will comprise aspects such as service and quality, pricing policy, promotion
package, research and development, expansion strategy, payment terms and quantify the
market budget of at least for the first year.

Service and Quality: the enterprise will provide excellent service and high-quality products.
Our team is dedicated to ensuring that our customers receive the best possible experience
when working with us. We strive to provide the latest technology and top-of-the-line
electronics to our clients. Our loan options are flexible and tailored to meet the specific
needs of each individual customer or a business.

Pricing policy: The pricing policy for our loan for the enterprise will be based on several
factors, including the cost of the electronics, the interest rate, and the length of the loan.
Also there will be consideration of the creditworthiness of the borrower and any applicable
fees. Our goal is to offer competitive rates while ensuring that the loan is profitable for our
company. We will regularly review and adjust our pricing policy as needed.

Promotion package: The project's composition being new, it cannot achieve its strategy
alone by providing a high-quality service unless user understanding is sufficient. In order to
do this, the project needs spend adequately to cover aggressive promotional tactics:
Launching the service through media kits, advertising, , sales promotion, internet
advertisements, and partnerships with organizations.

Research and Development: includes upgrading the technology used, developing internal
software to facilitate the service effectively, assisting with the creation of conference
websites, and evaluating the most recent development and research areas in the industry.

Expansion Strategy: includes expanding the offices to major regional cities locally.

Payment Terms: The payment terms for our loan for electronics giving company vary
depending on the loan amount and duration. We offer flexible repayment options, including
monthly and weekly payments. Our interest rates are competitive and based on the
borrower's creditworthiness. We also require collateral for larger loan amounts.
Production and Operation requirement

The production and operation requirement section describes how and where we deliver the
final service in order to estimate costs, owning/leasing a space, how will the service is
designed, delivered, measured and improved, the trading partners with the business and
other related issues.

Production Program and Plant capacity:

Project Site and location: The project is sited initially in Addis Ababa and the office will be
opened around Bola, Markato, Piyasa and Beherawi area on rental basis, which can
accommodate the required department and staff. In addition, the site is more suitable to
closely work and integrate with the nearby electronics shops.

Technology and Engineering: In order to manage various services in a more organised

manner, the project requires commercialised and customised software as well as IT
equipment (Servers, Desktop Computers, Laptops, Backup Devices), phones and Network
Infrastructure.

Management and Personnel requirement

The management and personnel requirement encompasses developing the enterprise’s

organizational structure; list the proposed key managers (their responsibility, relevant
background, experience and skills) and specifying the training requirement of the company.

Enterprise’s Organizational Structure: reveals the operational responsibilities and horizontal

linkages represented by the organizational chart below:

Proposed key managers (their responsibility, relevant background, experience and skills):
the key managerial positions are described below:

BOM (Bord of management): They will be responsible for setting the overall strategy and
direction of the institution, ensuring compliance with regulations and policies, and
overseeing the performance of the management team. Additionally, they are responsible for
approving major decisions such as loan policies, interest rates, and investment decisions.
Internal Audit prosses: The duties of the internal audit process in microfinance institutions
include ensuring compliance with regulatory requirements, assessing the effectiveness of
internal controls, identifying areas of risk, and making recommendations for improvement.
Additionally, the internal audit process is responsible for monitoring the implementation of
corrective actions and providing regular reports to management and the board of directors.

President: The duties of a president in our organization include overseeing the overall
operations of the organization, developing and implementing strategic plans, managing
budgets and finances, ensuring compliance with regulations and policies, building and
maintaining relationships with stakeholders, and leading and managing staff. Additionally,
the president may be responsible for fundraising, marketing, and representing the
organization in public forums.

Legal Director: The legal director in the organization is responsible for ensuring compliance
with all applicable laws and regulations. This includes reviewing contracts, advising on legal
issues, and developing policies and procedures to mitigate legal risks. Additionally, the legal
director may be responsible for overseeing the organization's regulatory filings and
representing the organization in legal proceedings. Overall, the legal director will plays a
critical role in ensuring the organization operates within the boundaries of the law.

Loan approval committee: The loan approving committee in the organization will be
responsible for reviewing loan applications, assessing the creditworthiness of borrowers,
and approving or rejecting loan requests. They must ensure that all loan applications meet
the organization's lending criteria and are in compliance with regulatory requirements. In
addition, the committee must monitor loan portfolios, identify potential risks, and take
appropriate action to mitigate them.

V/P Corporate Service: The vice president of corporate services is responsible for overseeing
various administrative functions such as human resources, finance and accounting and
property . He/she will ensure compliance with regulatory requirements and manage risk
through effective internal controls. Additionally, he/she will develop and implement policies
and procedures to improve operational efficiency and support the organization's strategic
goals.
V/P Credit Service: The duties of a vice president of credit service in microfinance
institutions include overseeing the credit department, ensuring compliance with lending
regulations, developing and implementing credit policies, managing loan portfolios,
analysing credit risk, and collaborating with other departments to improve overall loan
quality and customer service.

V/P branch operation: The vice president of branch operation is responsible for overseeing
the day-to-day operations of the branches. This includes managing staff, ensuring
compliance with regulations, developing and implementing policies and procedures, and
monitoring the financial performance of the branches. Additionally, the vice president is
responsible for identifying opportunities for growth and expansion, as well as developing
strategies to improve the efficiency and effectiveness of the branches.

Manning Table: The manning table will summarize below the cost incurred by Human Resource by
the Enterprise based on the Organizational Structure and responsibilities:

No. Job title No. of Monthly Annual salary Remark

employee salary
1 Bord of Management 5
2 Secretary 5
Subtotal 10
2 Internal Audit process
secretary
subtotal
Intellectual Property

The Enterprise will be legally registered and secure the license as private limited company

with the name “2A & 3T Conference and Exhibition Organizers P.L.C” according to the
requirements set by the regulatory bodies within the country. The firm also planned to be a
member of the

International Conference Service Management Committee in order to build international

image and

branding.

Regulations and Environmental issues

The regulations and environmental issues are non- economic factors that might affect the

prospects of the firm. The main factors are key government regulations and Enterprise’s
plan for

compliance, environmental factors and political stability.

If we consider the above factors, government regulation is mainly encouraging the private

sector investment to involve on the said industry. If we take the environmental factor, it
has no

negative impact on the environment; rather it builds the country prestige.

Critical Risk Factors

The critical risk factors are assessed by risk assessment tools: SWOT analysis, Porters Five
Forces Model and PEST analysis. The first two tools are discussed in different parts of the
paper; so, this section is mainly focuses on Porters Five Forces Model.

Porters Five Forces Model is depending on the argument that the profit potential of an
industry depends on the combined strength of the following five basic competitive forces. In
addition this section also sights how to mitigate the above factors by the organization.
Intellectual Property

The Enterprise will be legally registered and secure the license as corporation with the name
“2A & 3T Conference and Exhibition Organizers P.L.C” according to the requirements set by
the regulatory bodies within the country.

Regulations and Environmental issues

Regulations and environmental concerns are non-economic elements that could impact the
firm's future prospects. The main determinants are political stability, environmental
variables, and Enterprise's plan for compliance with important government rules.

If we consider the above factors, government regulation is not opposing rather encouraging
the private sector investment to involve on this side of industry. If we take the
environmental factor, it has no negative impact on the environment; rather it facilitates the
use of technology.

Balance sheet

business

Assets 2023 2024 2025

Current asset

Cash……………….....…..…...45,000………………....90,000……………....…..180,000

Other current asset…….......5,000……………..........10,000…………………20,000

Total current asset………...50,000…………………100,000………………...200, 000

Long term asset

Long term asset……….…150, 000………………..200,000……………….300, 000

Accumulated depreciation…750………………...1500…………………..….3, 000

Total long term assets…….149, 250……………….198, 500………..……....297,000

Total Asset………………........199,250………………..298,500..………..……..497,000

Liabilities and Capital

Current liabilities

Account payable…………………10,000 ………………....20,000……………….20,

000

Other current liabilities………………00…………………….00…………..…….….....00

Total current liabilities…........10,000…………………20,000………………..20,

000

Capital ………..…….
………………...200,000………………..300,000……………......500,000

Net
worth………………………….....199,250…………............298,500……………....497,000

Total operating expense of the Business 2023 2024 2025

Salary of Employees……...................................240,000………….240,
000……………..240,000

Salary of Partners…………………....................180,000….………180,
000………….....180,000

Supplies…………..............................................5,000…..................5,000………….........6,000

House Rent…………........................................60, 000.

…………...60,000…………….100,000

Utility……………………................................2,000……….…….2,000…..…………...2,000

Depreciation…...................................................750……..................750…………………
1,500

Advertisement…...............................................3,500………….
…..5,000……………....10,000

License and
permits...........................................300……………….....300………….............300

Total operating expense……………….491, 550……………538,050……....…...

611,800
 Income Statement

2023 2024 2025

Sales………………………….1, 016,000…………..1,316,000………….2, 032,000

Less-CGS …............................(308,908)……… … (308,908).................. (617,846)

Gross profit………....................707,092……………..1,007,092 ………….1, 414,154

Less operating expense.............(491,550)…………… (538,050)…............ (611,800)

Net income before tax…………..215,542……………469,042…………….802,354

Tax (35%)...................................(75,439.7)………..…. (164,164.7)…......... (280,823.9)

Net income……………………..140,102.3…………… 304,877.3…………....521,530.1

Cash flow

2023 2024 2025

Cash receipts …………….................1,016,000……..........1,316,000….....................2,032,000

Sales tax, VAT, received...………………..0.................................0.........................................0

New current borrowing………………........0…………….............0…………………….…...0

New other liabilities (interest fees)(5%)......2,500……..

……….2500………........................2500

Sales of other current asset…………….......0…….........................0……………....................0

Sales of long term asset…………….............0………….................0…………………….…...0

New investment received………………......0………………..…...0…………………...…….0

Subtotal cash received……......................1,013,500…………1,013,500 …………...2,029,500

Operating expense………………............. (395,550)……........ (397, 050)…..............

( 779,800)

Cost of goods sold…………….................(308,908)………….(308,908)…………...(617,846)

Principal payment of current borrowing......(10,000).....………..(20,000)…………..…20,000

Long term liabilities principal payment………….0….....………...........0………………........0

Purchase of other current assets………………….0…….....….………..0………………........0

Purchase of long term asset……….......................0…………..….. (10,000)……….........

(20,000)

Dividends……….……………………...…………0……....…..............0……………….....0

Subtotal cash spent…..................................(786,458)…….….…(735,958)..............

(1,437,646)

Net cash flow………….………..………….227, 042……....……..227,542…….........591854

8. Appendix

The business will borrow 50,000 birr from bank to fulfill asset start up cost requirement at the
initial stage of the business that will be repay back within three year from the profit
generated from sale of our business products and services. In the first year of our operation
we will pay 10000 of the borrowed amount and the rest paid in two years 20000 each year.