Professional Documents
Culture Documents
Bule Hora Univeristy
Bule Hora Univeristy
Arbaminch, Ethiopia
TABLE OF CONTENT
Title Page
1 INTRODUCTION
1.1. Name and Address of the Industry.................................................................................1
1.2 ,Nature of the company.............................................................................1
1.3.statement of financial need
..................................................................................................1
1.4.statement of confidentiality of report
.........................................................................................1
1.5. The company with it's service ..........................................................................2
1.6. OBJECTIVE ........................................................................................2
1.7.MISSION .................................................................................................................2
1.8. KEY to
SUCCESS.....................................................................................................................3
2.. EXCUTIVE.SUMMERRY ............................................................................................................3
2.1 the activities include in this business have two phases
.....................................................................................................3
3. INDUSTRYANALYSIS .......................................................................................................5
3.1. Future outlook and Trends ............................................................................................4
3.2. Market Segmentation
....................................................................................................5
4. DESCRIPTION OF VENTURE...........................................................................................5
5. PRODUTION PLAN
...........................................................................................................7
6. MARKETING PLAN ..........................................................................................................7
6.1. Pricing
..........................................................................................................................7
6.2. Distribution
...................................................................................................................7
6.3. Promotion
.....................................................................................................................8
7. ORGANIZATIONAL PLAN
...............................................................................................8
7.1. Form of ownership
........................................................................................................8
7.2. Roles and Responsibility of Members of the Organization ............................................8
8. ASSESMENT OF RISKS
....................................................................................................8
9. FINANCIAL PLAN
.............................................................................................................9
9.1.sales strategy .....................................................................10
9.2 PRO FORMA INCOME STATEMENT
.....................................................................................................11
Habesha cosmetics is located Arbaminch, Arbaminch town. This location is a great opportunity
to get different kinds of customer.
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1.5 Statement of Confidentiality of Report
The owner of Habesha cosmetics spends money, time, resources, and experience also different
things from thinking up on preparing this business plan. Therefore the owners would like to
announce to all that this business plan which is the result of all partners effort for this reason that
should not be transferred or copied to another individual or company. If anyone fails to does this
owner have responsibility to the individual or the company to bring them in front of the law. All
Rights are reserved
It is believed that various kinds of business run in each and every aspect our country or other side
of the world and this comes with interaction of countries with other countries in all aspects of
their socio-economic and cultural dogmatism with the beginning of MNNSS cosmetics
globalization. This may be because of comfort ability of various kinds of environment which
assist or help people to lead people to lead their life in a luxurious manner and encourage beating
standard of excellence in their life as well.
Due to this the members of this work plan owners expect something which help us to reach or
future or planned life.
To do this (to achieve our goal), now grouped with each other to propose business plan paper
related to the thing which we want to specialized on.
It may be propounded as a new venture which is controlled by the group members (MBA Class
Students the site of this business enterprise is Arbaminch University. The primary purpose of this
Business plan is to provide qualitative and quantitative amount of various types of a cosmetics at
Affordable price.
1.7 OBJECTIVE
• To maximize cosmetics supply in general and satisfy consumers consumption
requirement in particular
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• To him consumers expenditure for transportation cost (not to go outside of Arbaminch
university.
• To creating employment opportunity to the surrounding community
• To provide the customer with high quality and quantity cosmetics
1.8 MISSION
• Utilizing available resources, and providing the society wit due service
• Adopting to the dynamic environment throughout the operation
• Providing affordable living standard to its workers
• Supplying high quality cosmetics suitable for bodies.
2 EXCUTIVE SUMMERY
Habesha Cosmetics enterprise business will be run as partnership among Tamirat Tafese,
Temezgen Alemayu, Wondemagegn wudesa, Meron Neker, and Tesfun Dawit.
The Habesha cosmetics enterprise offer high quality and quantity cosmetics for users and
customers. The product of the business will be available for sale at home and also sold to
wholesalers and retailers who sells in other markets. The price set by the business, is fair market
price or it should not exploit customers or should not annoy customers. So that customers are
willing to pay. Cosmetics providing enterprises will provide its product at market price by
identifying and listing each type of cosmetics with their fair prices.
The activities included in this business are purchasing high quality and modernized cosmetics
and preparing store houses where cosmetics stored whenever there is excess supply of cosmetics,
auditing daily sales of business, etc.
The overall objective of the business is to provide high quality and quantity cosmetics in order to
get the expected profit and to satisfy the consumer and to achieve and exceed sales forecasts to
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enable us to be operating at capacity, we would also have a claim to create job opportunity,
providing complementary and with cosmetics and plans to expand the business in different area
and also to expand the initial business in size.
In the first year the business forecast a profit of birr 22,028. The reason for obtaining such
positive gaining or profit can be mainly attributed to
In the second year and 3rd year we expect and predict that there will be increment of profit due to
further increases in sales. The overall objectives of the business are firstly to achieve and exceed
sales forecasts to enable the business to be operating at capacity, so that the business extended
the number of types of modern cosmetics that enables the business to meet (supply) the market
demand. We would also claim to be able to employ to have in future and expanding the existing
one.
The Habesha business cosmetic providing enterprise will require loan of birr 30,000 to be repaid
over six years. The contribution made for the business is equal for each partner and share of
profits and loses also can be equally shared. With fund (debt) the business will cover, house.
(Store house), shelf, bulk containers advertising and selling costs.
The Habesha cosmetics is also available on www.hycosmos.com always and ready to accept its
customer’s comments, suggestions and questions regarding the quality of its products and
services.
3 INDUSTRY ANALYIS
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protected, maintained and remain suitable so that there will be expansion of the business at an
alarming rate.
It is in this respect that our business provided a lot of opportunity is for the community of the
campus and surrounding peoples ( Arbaminch people) by enabling them to use modern
cosmetics and simply adapt freshman students and as well as gussets who are not familiar with
the salty water of the area.
Cosmetics providing enterprises business in well organized, licensed by the name cosmetic
providing business, growth oriented, gradually involves in the production of different services
and when involved in new services by creating backward and forward linkage.
As we have stated out previously, the competitors house lack of structure and organization lead
them into in efficient and have declining sales. They are also not well organized and structured,
no further expansion and shortage of materials that is they depend in cease and need assistance of
finance and qualified managers.
4 DESCRIPTION OF VENTURE
Cosmetics providing business enterprise provide each type of cosmetics from Addis Ababa and
Hawassa. It sells the product to consumers and other small industries which interested in it. It
also sells the product to service rendering firms such as Barberry and Beauty Salons business.
The product of our business is industrial product. So, any firms who has the potential and
licensed by the government can undertake the activates. The brand of the business is designed to
be cosmetic providing enterprise, it is named so because it will have good attitude on society, it
doesnt affect the natural environment (pollution) and initiate people to purchase the product and
as it is new.
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The location of the business is SNNP regional state, the building of the state. The building of the
business includes one office, sentry box and ware house.
The business need to hire some labor force out carry out operation properly there is no need of
pre- requisite of higher educational achievement. But there are some criteria such as
The above mentioned equipment will be purchased. The manager of the business has mush
experience in the field the age of student’s entrepreneurs is between 22 and 24. The special
ability of the manager possess is that he can work with others strongly. The reason for going to
setup this new business is
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• Absence of strong competitor in the market can be raised main reason for the success of
the business or venture
5 PRODUTION PLAN
The aim of the business is to provide high quality and quantity modern cosmetics in order to get
the predicted gain and to satisfy the cosmetic the business is fully responsible for all part of the
operation. The first starting point of the business is identifying which type of cosmetics that the
consumers are in need of and then purchasing or providing those cosmetics at minimum possible
pick that doesnt heart any one. The equipment is needed for immediate uses are the following
To start the business activity the business starts with 20 different types of costs. Totally the cost
of the business includes the following:-
With the growth of the business additional ware houses will be needed.
6 MARKETING PLAN
6.1 Pricing
The basis for our cosmetics prices is the market price and cost-benefit analysis. Therefore, due to
presence of small competitive, the business cannot set high prices. Even if the business operates
at lower cost it would not price below the market prices just because of the purpose result,
cosmetics providing business enterprise. As a result, cosmetics providing business enterprise set
the price of cosmetics as the market that is it fluctuates over the time with market price.
6.2 Distribution
The distribution of the cosmetics would be in three ways first, the business its self-undertake
retail service to consumers and customers at market price. Secondly, by selling the product to the
whole sales and thirdly by selling to both wholesalers and retailer.
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6.3 Promotion
The promotion activity will be done once in a couple of month through notices to be posted at
public center and also through
7 ORGANIZATIONAL PLAN
The overall operation or function of the owner would be governed or administered by the owner
there will be only one manager the manger had served for more than four years in this type of
business and have excellent experience in the area with his educational background that enable
him to manage the business successfully.
The permanent employees of the business consist of four workers. The three are responsible for
day-to-day activities of the business
8. ASSESMENT OF RISKS
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The expected of risk to the business may be loss of income from expired and cosmetics during
operation may happen in the future, hence no one is certain about future, the other expected loss
is attributed to fluctuation of market price (devaluation, inflation, deflation)
The business also dont use advanced technology whenever there is appropriate technology that
go with operation, is ready to make use.
9. FINANCIAL PLAN
The business plan is prepared to obtain funds amounting 30,000 birr. The supplementary
financing is required to being work on site preparation, equipment purchases and to cover
expense in the first year of operations. Additional financing has already been secured in the form
of:-
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No items types Quantitiy Unit price Total cost
1 cash 30000
2 Bergamoth hair cream 200 60 12000
3 Herbal conditioner 200 40 8000
4 Girlfriend Lotion 150 35 5250
5 Duru Soap 200 13 2600
6 Medicam Soap 500 8 4000
7 Doxe shampoo 250 55 13745
8 Hobby conditioner 100 45 4500
9 topsociety Lotion 200 35 7000
10 Vasline 100 55 5500
11 Shelf 2 500 1000
12 Table Deodrant 4 300 1200
13 Smart Deodrant 100 50 5000
14 FA 200 30 6000
15 Miscellenious 320
16 wazeline 150 33 4950
17 sinonas 13 35 455
18 Total expense 111520
The sale of revenue of cosmetics is expected to be audited daily and as well as monthly since it is
difficult to predict the price of each type of cosmetics we take the approximation of the sales of
monthly on average to be 7000 birr. Hence there are 12 months in business year total annual
revenue is calculated as follows
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10.1 Salary expense
For permanent worker: each of the three permanent workers out of the four earn 1000 birr and
remaining one person earn 600 birr per month:
This is a salary for these permanent workers per a year plus a salary for the remaining person per
a year
For temporary workers: these temporary workers has an activity like cleaning the office and the
shop once a day he/she earns 5 birr per day or 150 per month
=30000*10%
=3000birr
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Total Expense---------------------------------------------------------------------------------61972
Gross Profit -----------------------------------------------------------------------------------22028
In the second year of operation it is assumed that the business will increase the provision of
cosmetics and overall sales from 7000 birr/month to 7875 birr/month on average.
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With draw-----------------------------------------------------1200
Total cash needed 63172
Cash Excess deficit ------------------------------------------50828
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Pro-forma Balance Sheet at the end of 1st year
Asset Liability
Cash --------------------------------50828 Account payable------------------45000
Fixed asset-------------------------81200 Note payable----------------------30000
Depreciation------------------------12852 Interest payable---------------------3000
Operating Expense------------------3000 Total capital-----------------------78000
Total asset-------------------------122176 Capital------------------------------44176
Total liability and capital-------122176
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Gross profit margin (GPM) =GP/SALES *100=22028/84000*100=26.23
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