Geta Mesay Help Who Business Plan For Conistruction Material

Geta Mesay - help who business plan for conistruction
material
Business Management (Ethiopian Civil Service University)
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2022 Business Plan for Getamesay Zerihun Construction Material Trade
Table Of contents
Table Of contents...........................................................................................................................................1
Executive summary........................................................................................................................................2
1. Background and Description of the business.........................................................................................2
2. BUSINESS DESCRIPTION..................................................................................................................3
2.1. Business Over view............................................................................................................................4
2.1.1. Vision Statement............................................................................................................................5
2.1.2. Mission Statement..........................................................................................................................5
3.2 . Current Status...................................................................................................................................5
2.2. Objectives...........................................................................................................................................5
2.3. Location..............................................................................................................................................6
3. Product and Service................................................................................................................................6
4. Industry and market Analysis.................................................................................................................7
4.1. Marketplace Analysis.........................................................................................................................8
4.2. Customer Analysis.............................................................................................................................8
4.3. Competitor Analysis/Competing Technologies.................................................................................9
5. Market Strategy....................................................................................................................................11
5.1. Target Market Strategy.....................................................................................................................11
5.2. Product Financing Strategy Terms...................................................................................................11
6. Management Team...............................................................................................................................12
7. Financial Analysis................................................................................................................................13
7.1. Ratio Analysis..................................................................................................................................14
Financial Forecasts.......................................................................................................................................16
I. Trend of revenue generation.................................................................................................................16
Aminat Yassin..............................................................................................................................................17
Projected operating cost...............................................................................................................................17
For year 1 through year 5.............................................................................................................................17
AminatYassin...............................................................................................Error! Bookmark not defined.
III. Income statement Projection..................................................................................................................18
For year 1 through year 5.............................................................................................................................18
8. Summary of the Business Plan.............................................................................................................22

Executive summary
The business of Getamesay Zerihun Construction Material Trade is operation in diversified or
multi business line in order to increase its revenue and mitigate or minimize the risk of business.
The business we engaged are building or construction material distribution and retail, shopping
retail, different steal product retails and currently we are on the plan to increase our revenue
more by stiffening our business more than never before. The shopping service operated at
Gambela Regional State Gambela town. Our business is projected to generate revenue of birr
13,900,482.00 first year and net income of birr 1,935,071.00 and both of the items are expected
to be increases by 5% via the life time of the project. The shopping service which decored by the
retail and distribution of different products or goods are trusted to generate the revenues more
than expected as the business includes different portifolized products which help to composite
each other in addition to their acceptability’s on the market.
The cost and income calculation of the project is based on genuine and practical observation of
the like business and it will save the business from misconception about the future cost and
income generating capability. The business is visible and environmentally friend and it is
advisable to operate in efficient manner.
1. Background and Description of the business

The owner of the Business is Namely Getamesay Zerihun Construction Material Trade. The
Owner by himself currently engaged up on the business of retailing of shopping materials which
help for immediate use of construction purpose, timber distribution and retail, shopping retail,
and different steal product retails business most preferable by the existing business area for the
past many years in addition to provision of different important and wanted shopping goods to the
community with reasonable and affordable price. At this time, the owners are on best business
operation which encourage his for expanding the business than before with new investment and
potential by making strong relationship with Birhan Bank.
Now a days, the owner is applying for loanable fund which help for expanding our business so as
to easily perform of the needed and planned activity on the market for the community which
decored by attractive market share and profit which expected to generate birr 161,256.00 per
month. The other essentiality of the business is the applicant has a plan to expand his business to

more of distributing those products to different near area and existing market which help the
owner to be profitable more and get high market share by satisfying our loyal customers.
The owners have more than eight years work experience on the same and related business line
with high school graduate educational quality.
To the security base of the credit investment request, the applicant is offered attractive and best
collateral which shows our interest and potential on the business area.
2. BUSINESS DESCRIPTION
We are engaged in the retail business by selling construction products, immediate affordable
construction products and want products, timber distribution and retail and steal product retailing
by giving service to the community on all type of affordable construction products. Retailing
business as usual, derived from t he word 'Retail' is derived from a French word with the prefix re
and the verb tail meaning "to cut again". Evidently, retail trade is one that cuts off smaller portions
from large lumps of goods. It is a process through which goods are transported to final consumers. In
other words, retailing consists of the activities involved in selling directly to the ultimate consumer
for personal, non-business use. It embraces the direct-to-customer sales activities of the producer,
whether through his own stores by house-to-house canvassing or by mail-order business. We know
that our products are something people will always need, and we will be able to offer those
products at an affordable price because of the fact that having reasonable price is the way to huge
transactions and increasing number of transaction leads to profitability.
Our goal is to help our community by giving better distribution and retail of timber, retailing
construction products with reasonable price and we will do this with best interaction with our
customer, learning from our errors, making portfolio on new investment, and getting market
share by creating healthy computation with our competitors. Our business philosophy is
customer is a king and the road for our success, and we know that we can honor that philosophy.
We will be able to compete in this marketplace because the retailer is an intermediary in the
marketing channel because we are both marketer and customer, who sell to the last man to afford.
Though producers may sell directly to consumers, such method of distributing goods to ultimate
users is inconvenient, expensive and time consuming as compared to the job performed by a
specialist in the line. Therefore, frequently the manufacturers depend on the retailers to sell their
products to the ultimate consumers. The retailer, who is able to provide appropriate amenities

without an excessive advance in prices of goods are rewarded by larger or more loyal patronage and
because we will be in the market to a certain kind of customer who wants all middlemen basically
serve as purchasing agents for their customers and as sales specialists for their suppliers. To carry out
those roles, retailers perform many activities, including anticipating customer's wants, developing
assortments of products, acquiring market information and financing.
In general our business provides the following core services community with effective, efficient
and affordable price;
1. The retailer anticipates the wants of the consumers and then supplies them the right kind of
goods at reasonable price. Our job is to make the consumers buying as easy and convenient as
possible i.e. we acts as a consumers' agent.
2. Performs the service of bulk-breaking i.e. dividing large quantities into small units, such as
individual cans, plastic jar, boxes, wrappers, packages, appropriate for consumer use.
3. Offers a large assortment of merchandise, of suitable size, color, design, style and seasonal
items-ranging from domestic utensils, household requisites to specialty goods.
4. Creates time and place utility by storing the products in off season and by transporting these
goods to the places where they can be readily available as and when needed by the consumer.
5. Also assumes risks by guaranteeing the goods we sell to the consumer.

6. Adds to the convenience and ease of consumer purchasing by offering convenient shopping
locations, market information’s and other services such as free parking privileges, lessons on
product use and a multitude of other facilities may be offered and found sufficiently desired to
result in increased patronage.
7. Providing flour the most and widely needed and consumable product as whole seller and
retailer to the community with affordable price and due care.
8. Providing different type of paint products& steel products like iron sheet, hammer, saw and
alike their products and other related construction material products.
2.1. Business Over view

The name and the activity of Getamesay Zerihun Construction Material Trade is aimed to insure
the vision of “providing full-fledged service to the community.” Appropriately, therefore, the
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commitment of will be to spread the retailing of different product in the shop, providing effective
and efficient service of flour distribution and retail and sales of different steal products to the
community with affordable price. Therefore, Getamesay Zerihun Construction Material Trade
is a sole proprietor business based in Gambela Town, Gambela Regional State, Ethiopia whose
main business is to transform lives in developing countries by supplying healthy, efficient, eco-
friendly services and products by offering the services needed which satisfy the customers. We
are sole retailer of construction material products, immediate affordable construction material
products, metal products, timbers distribution and retail and sales of different steal products.
2.1.1. Vision Statement

To become the effective and efficient supplier of shop products, timber distribution and retail
and sale of different steal products provider in Gambela Town.
2.1.2. Mission Statement
To profitably and sustainably introduce effective flour sales, product retailing and steal products
sales in the Ethiopian’s underdeveloped communities.
3.2. Current Status
Getamesay Zerihun Construction Material Trade will be introduced as an impact private
business, with a head office in Gambela Town, Gambela Regional State, during the past 8 years
on timber distribution and retail, retailing of , steal and construction material product retailing,
and different construction materials trade thereafter set up to expand and strengthen more within
the South western region of Ethiopia. The business will serve as a for-profit holding, investing
agency, and will work in partnership with community, Government, NGOs, \\\birhan Banks and
Private sector players to establish sustainable public transportation service over Ethiopia.
The owner of the business currently have two (2) buildings , 475 square care meter which, is
estimated 6,00000( six million) which, serve as for House Hold and one (1) building which,
can serve for shop service which, is found 76 square care meter which, is estimated
200,000( two hundred thousand) in Gambela Town Administrative in addition to this the owner
of the business have one Motor bike which, is estimated an amount of birr 200,000( two hundred
thousand)
2.2. Objectives

To develop a long-term sustainable market for affordable, high quality, timely product
distribution and retail in Gambela regional state Ethiopia , Gambela Town initially featuring
expandable and effective market controlling than never before.
To deliver immediate affordable construction material trade products with needed quality and
proving the better timber and different construction material trade products including steal
cement, Gypsum Woodfix retail to the community with reasonable price.
2.3. Location
The business of Getamesay Zerihun Construction Material Trade is found in Ethiopia, Gambela
Regional State, Gambela Town.
Product and Service
With effective, efficient, reasonable and affordable price our shop retailing, cement and different
steal product selling and different construction material trade retail with new plan to expand and
strengthen the existing business which help for more profitability and market share we provide
the following products and services for our customer;
1. The retailer anticipates the wants of the consumers and then supplies them the right kind of
goods at reasonable price. Our job is to make the consumers buying as easy and convenient as
possible i.e. we acts as a consumers' agent.
2. Performs the service of bulk-breaking i.e. dividing large quantities into small units, such as
individual electric bulbs, wood fix, ceramic, toilet products, sand packages, appropriate for
consumer use.
3. Offers a large assortment of merchandise, of suitable size, color, design, style and seasonal
items-ranging from domestic utensils, household requisites to specialty goods.
4. Creates time and place utility by storing the products in off season and by transporting these
goods to the places where they can be readily available as and when needed by the consumer.
5. Also assumes risks by guaranteeing the goods we sells to the consumer.
6. Adds to the convenience and ease of consumer purchasing by offering convenient shopping
locations, market information’s and other services such as free parking privileges, lessons on
product use and a multitude of other facilities may be offered and found sufficiently desired to
result in increased patronage.

7. Providing timber the most and widely needed and affordable construction material trade
product as retailer to the community with affordable price and due care.
8. Providing different type of construction material trade products like cement, stainless steel and
other related products.
Stage of Development-Although many years of market exposure have proven on shopping
product retail, timber and different steal product, and different construction material retail to be
unequivocally reliable and profitable, the traditional distribution channel and inefficient retailing
of shopping products is still in its infancy, and also the supply of different product and service as
demanded by the consumer in developing parts of the world remain almost completely untapped.
A business solution is needed to meet the challenge of profitably selling this expensive, high
effective equipment to people with meager incomes. In the past many years, a number of
strategies have been implemented in rural, developing markets with astounding success.
3. Industry and market Analysis

As a retailing market, timber and different steal product retail and distributions, and different
construction material trade products retails service provider targeting emerging markets,
Getamesay Zerihun Construction Material Trade will compete in the industry known as
Getamesay Zerihun Construction Material Trade is a small, but fast-growing subset of the
gigantic global shop product retailing and timber and different steal product trades, and different
construction material trade which is currently experiencing an economic revolution. One
significant characteristic of this revolution has been astonishing growth. Over the past many
years, for instance, a retailer is a merchant or occasionally an agent or a business enterprise, whose
main business is selling directly to ultimate consumers for non-business use. We performs many
marketing activities such as buying, selling, grading, risk-trading, and developing information about
customer’s wants. We are classified as a retailer. Retailing occurs in all marketing channels for
consumer products. The retailer is an intermediary in the marketing channel because we are both
marketer and customer, who sells to the last man to consume. We are specialist who maintains
contact with the consumer and the producer; and is an important connecting link in a complex
mechanism of marketing. Though producers may sell directly to consumers, such method of
distributing goods to ultimate users is inconvenient, expensive and time consuming as compared to
the job performed by a specialist in the line. Therefore, frequently the manufacturers depend on the
retailers to sell their products to the ultimate consumers. The retailer, who is able to provide

appropriate amenities without an excessive advance in prices of goods are rewarded by larger or
more loyal patronage.
3.1. Marketplace Analysis

Ethiopia is the biggest East African business hub economy, very peaceful and somehow with the
current situation politically stable. The country has demonstrated over 40 years of political
collapse and instability, and is governed by a multiparty democracy based on common law.
Ethiopia has posted an average annual economic growth rate of 11% over the past ten years;
however inflation currently lingers at 7%. Ethiopia’s GDP is expected to grow at 11% annually
through 2020.
Agriculture is the Ethiopia’s primary industry, accounting for 85% of its GDP, and employing
over 70% of its workforce. Only 15% of Ethiopian’s population lives in urban areas, meaning
that the country’s 30 million people are widely dispersed over. Between 2013 and 2018, demand
for different consumable products and related service, timber and different steal products, and
shop product retail in Ethiopia grew at an average annual rate of 23%, a trend that is expected to
continue.
Over 87% of Ethiopian’s peoples whom live in rural area need better supply of different
affordable construction material products like; shopping product such as timber retailing and
steal products as well as steel sheet , and different house furnishing products are served by very
ineffective and small in number and the country experiences poor supply of construction material
trade products, access to steal product and enough and timely supply of timber and construction
material trade products during different seasons specifically during rainy seasons lack or
shortage of transportation and construction material trade product and during power
interruption and luck of petroleum lack for grain milling service. Almost all of Ethiopian’s
retailer and transportation service usage is confined to its urban areas. The south west province,
where we intend to pilot our product, is an off-grid rural region inhabited by various farming
communities with a population of 36 million people, stretching over 340 kilometers from the
capital, Addis Ababa. The average yearly income is about birr 10,000 per family, and, though
this is strikingly poor by western standards, south western psrovince is one of Ethiopian’s most
prosperous rural communities.
3.2. Customer Analysis

South western Ethiopia is an extremely dispersed region, with over 37 Million people living in
an area of 2,200 square kilometers. As a result, only 33% of these region’s most centralized
homes have access to shopping products, and different steal products and related service with
different construction material trade product with middle level by the regional national utility
grid, while 0.6% have access to construction material trade products, and different affordable
construction material trade and basic products are even below expected level. The remaining
66.4% have no access to construction material trade products, and different affordable
construction material and basic products with middle level to their homes during the past many
years.
Residents of South western Ethiopia realize that modernization cannot take place without having
access to steal products, and different affordable construction material trade and basic products,
and that access them significantly enhance their economic prosperity and quality of life. As a
result, it is no surprise that 60% of the 1000 south western Ethiopia residents indicated a strong
desire to participate in a financing program that would allow them to afford our service and
products.
The middle class families (who form 90% of our target customers) in south western Ethiopia live
in large houses, typically constructed of brick, mud, and concrete. Each house has three to five
persons whom need timber products, and affordable construction material trade products, steal
products and each house hold need different construction material trade products. Families
submit no property taxes or mortgage payments. Furthermore, because that region is a farming
community, residents spend very little on food, except those items we are on supplying for them.
3.3. Competitor Analysis/Competing Technologies
We are currently don't face any strong competition in our current market (Ethiopia) since we are
in the best market location to deal in the retailer of construction material trade products and
different steal products, timber, and different construction material trade products with effective
and efficient service that offers customers solutions to our product and service problems they
face within their households after being locked out of collection of better service and product.
We slightly face limited competition from local business man’s on the area which never been
held as an headache for the fact that their existence never comparable with the existing market on
which we still have great share with our current lovable service and products. With key
motivation to our customers buying our product and service have complete service as they

purchase different products from us to resale back to those customers we can’t address as we are
engaged on whole selling of those highly demanded products, they also grain the meal they need
for further processing at meal grain while we are the provider of very wanted flour to the market
with effective an efficient service is the reason why we find categories these as minimal
competition since our target market is quite demanded.
Because, of public transportation connection road are very low in all over Ethiopia ;in general
and in south west Ethiopia in specific the price of transportation is being very high for most
families, which ends with the ever increase price of consumable shopping price and getting
service of those product provision as needed, where some residents views it as luxury items.
Almost every family would love to have a better transportation service, full-fledged shopping
product and effective and efficient supply of shopping product, steal related product, different
timber product and different construction material trade products, but affordability is a
preventative issue. As such, people are forced to use the existing service with full of problem and
high price to win their life’s. Different public service such as terazone, , ceramic and other
construction material trade products are readily available in this region, but neither item is
particularly cheap in the long run and still now. Cost of transport to reach the area is much more
costly than the needed product. Construction material like pipe, carpenter’s tools retail trade ,
and may last one or two weeks at the rate most families use their electric bulbs, lumps toilet
tools, paints which are highly demanded by the community while their price still dependent on
the different product cost they encounter to reach there.
All most all families also transport their construction material from place to place due to that our
office can afford Sino Truck to get additional revenue from transportation service cost in
addition to selling our business goods. Hence, we are preparing this business proposal to get loan
from Birhan Bank in order to purchase vehicle called Sino truck. For most reason that our
customers prefer our product and service we may plan to provide with effective and efficient
way, timely basis, affordable and reasonable price is still justified.
Getamesay Zerihun Construction Material Trade has indirect competition in south western
Ethiopia is that illegal supplier of different consumption and steal product has several advantages
over them. First, difficulty to access or get those products which distributed illegally and their
side effects are also dangerous; as it may be outdated or expired, below needed quality and
quantity and below minimum steal standard to be afford as a construction tool which may be
rusted by themselves and it is easy to find an individuals who construct their building affected
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by rust, for example at some point in his or her life, metal sheet which was covered on the roof
the building will be affected by rust it leads the customer to pay extra cost to pay anti rust paint .
In general, due to lack of strong competition for our product, we are positioning ourselves to
capitalize of the market dominance and exclusivity to double our marketing, advertising and
promotions to ensure the attainability of customer loyalty, brand loyalty, to achieve 70% market
penetration across all our target market regions across south western Ethiopia, by always
conducting in-depth information gathering regarding any potential competition launching within
our markets.
4. Market Strategy
4.1. Target Market Strategy
We got already proven and working go-to-market construction material trade and providing
adequate service to our customers readily on retailing construction material trade products and
different steal and different construction material products with effective and efficient services.
These entails direct sales model where we are leveraging directly sells to end customers on cash
basis. By robust execution of the above sales models, We have been able to sell many units of
products and we have provide remarkable service to our customers since we launched our
business. For existing markets, we shall operate on exclusive dealership model by partnering
with leading local companies who already have local market experience by opening country
offices to support our local agent is laying sales structure.
In order to make the products and services affordable, Getamesay Zerihun Construction Material
Trade will offer families and businesses the option of paying in credit to whom our customers are
members. Because people in this area maintain a purchasing power equivalent to about 50% of
their annual income, Getamesay Zerihun Construction Material Trade principal target market is
families that earn very low, low, medium and high income per year. It is estimated that roughly
one-third of south western Ethiopia households earn medium income, meaning that Getamesay
Zerihun Construction Material Trade primary target market in south west Ethiopia consists of
about 36 million families.
4.2. Product Financing Strategy Terms
Many micro-credit programs have failed in developing communities because customers have
been allowed to default on their loans and those businessmen’s invest their overall capital on a
single investment. It can be extremely difficult both logistically and financially to repossess
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equipment in remote villages of foreign countries. To circumvent this problem, Getamesay

Zerihun Construction Material Trade will offer “pre-financing” plans to finance its market
strategy and activity through long term loan from Birhan bank for additional investment that is
planning to expand and strengthen the existing business to be more profitable and get high
market share than never before. There are two reasons why this is necessary in south western
Ethiopia. First, people in developing countries’ often do not understand the concept of credit,
regularly assume that “credit” means “free.” Second, industrialized nations have repeatedly
allowed governments and businesses in the developing world to default on their debt. It is
unlikely that Getamesay Zerihun Construction Material Trade can establish a high-growth,
sustainable business in south west Ethiopia if our products and services are continently provided
by experienced whole sellers, our services are given by people’s whom fulfill minimum
requirement to provide service, but cash is not found at hand. As such, the businessmen will be
financed by bank the amount reasonable to be easily paid for their systems first, in entirety,
before they receive them; no exceptions will be allowed. Because the financing plans will have
long terms
5. Management Team
Company Organization Getamesay Zerihun Construction Material Trade will control the all of
the company’s equity. We have traveled extensively in different south west Ethiopia cities, and
conducted customer satisfaction level on the service they get, retailing, strategy modeling and
impact analysis for past many years.
Profile of Founder- Getamesay Zerihun Construction Material Trade is a highly skilled on
strategic planning, project execution and sales and marketing professional with proven
experience in building professional relationships, developing successive sales strategies,
developing and implementing new strategies and procedures. His main focus is to aggressively
develop and structure robust distribution channels for consumer products and service within
south west Ethiopian Gambela regional state of Gambela town coupled by impeccable customer
service to build customer loyalty.
Getamesay Zerihun Oda has more than 10 years combined experience in sales and marketing
where he has spent 10 years on retailing the shopping products, different steal as well as plastic
product and effective service to his customers in effective and efficient manner. Before joining
shop product retailing and steal and construction material product, he worked for different
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activities where he built his first regional retail market on different towns covering south west
Ethiopians town Gambel Regional State particularly, Gambela Town . Hence, hir previous year
experience plays a vital role in the projects’ successfulness and gearing good performance by
shuffling the like competitors providing the same product and services. This may include the
educational back ground, work experiences and skills of the project owner. The owner has over
10 years work experience out of which the mentioned years at business areas and he has good
educational skills. Hence, the real experience of the owner over the market with remarkable
achievement is the witness for success of his future investment to achieve high market share than
never before.
6. Financial Analysis
6.1. Table :6 Source of fund
S.N Description Amount in birr

1 Promoters' contribution 14,000,000.00
Bank finance (Borrowing

2 6,000,000.00
from Birhan Bank
3 Other borrowing 0
Total 20,000,000.00
6.2. Table: 7 Loan Repayment Schedule
Total Annual Remaining

Year Principal Payment Payment Balance
0 0 0 6,000,000.00
1 350000 1,200,000 4,800,000
2 280,000 1,200,000 3,600,000
3 210000 1,200,000 2,400,000
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4 140000 1,200,000 1,200,000
5 70000 1,200,000 0
6.3. Ratio Analysis

The useful life time of the project is 5 years
Unit of the project-One (distributing and retailing different affordable construction
material products)
Operation days of the project per month =26 days in av., 26x12=312 days/ in a year
Each revenue and expense is expected to increase by 4% and 3% from first year amount.
Fuel expense is expected to be birr 65,000 per year
Salary and Wage expense is expected to be birr 86,000 per year
Loading and unloading cost is expected to be birr 45,000 per year
Other related expense is expected to be birr 20,000 per year
1. Analysis for retail of shopping products
a. Cement products
i. The overall cements purchasing cost is assumed to be 25,000 birr per
month and 25,000*11 = 275,000 birr per year having the product were
purchased 11 times in the year
ii. The selling price on all type of cements assumed to be more than 10% of
its cost hence 25,000 *1.1 = 27,500 birr per month and 275,000 *1.1 =
302,500 birr per year
b. Readily affordable products (ceramic, timber , sheet metal , bulb light and a like)
i. The overall purchasing costs of those products are assumed to be 50,000
birr per month and 50,000 *12 = 600,000 birr per year
ii. The selling price of those readily affordable products are assumed to be
15% greater than their purchase cost 50,000*1.15 = 57,500 birr per month
and 600,000*1.15 = 690,0000 birr per year
c. Other Toilet and carpenter tool products help for building construction (Highly
traded goods such as sink, pipes and electric bulbs alike )
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i. The overall purchasing costs of those products are assumed to be 75,000

per month and 75,000 * 12 = 900,000 birr per year
ii. The selling price of those products are assumed to be 20% greater than the
purchasing cost of the product 75,000 * 1.2 = 90,000 birr per month and
900,000 * 1.2 = 1,080,000
d. Each products are subject to 10% TOT as we are TOT registered on the
stated retail business
i. Tax output = cost *0.1 = 1,775,000*0.1 = 177,500
ii. Tax input = Selling price *0.1 = 2,072,500*0.1 = 207,250
iii. Net tax payable per year = 207,250-177,500 = 29,750.00
e. Defects and destroyed materials due to different reason is assumed to be 1%
of purchase price for each item
2. Analysis for distribution and retail of timber (very basic and traded product)
i. The purchasing costs of 100 kg of timber is birr 1,650 on average and
196,000 kg were purchased per month on average and (196,000 *
1,650)/100 = 323,400 birr per month and 323,400*11 = 3,557,400 birr per
year
ii. The selling price of timber are assumed to be 20% greater than the
purchasing cost of the product on average 323,400 * 1.20 = 388,080 birr
per month and 3.557,400 * 1.20 = 4,268,880
3. Analysis for distribution and retail of different steal products (very basic and traded
product for construction like corrugated iron, and nail)
a. Corrugated iron
i. The purchasing costs of 1 corrugated iron is birr 170 on average and 3,000
pcs were purchased per month on average and 2,000 * 170 = 340,000 birr
per month and 340,000*11 = 3,740,000 birr per year
ii. The selling price of corrugated ironis assumed to be 20% greater than the
purchasing cost of the product on average 340,000 * 1.20 = 408,000 birr
per month and 3,740,000 * 1.20 = 4,488,000
b. Nail
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i. The purchasing costs of 1 kg nail is birr 250 on average and 900 kg were
purchased per month on average and 900 * 250 = 225,000 birr per month
and 255,000*11 = 2,475,000 birr per year
ii. The selling price of nails assumed to be 20% greater than the purchasing
cost of the product on average 225,000 * 1.20 = 270,000 birr per month
and 2,475,000 * 1.20 = 2,970,00
4. Analysis for retail of different steal and plastic products (affordable product like
ceramic, carpenter tools like hammer, saw ,spade ,meter and alike )
i. The purchasing costs of 1 ceramic pack 1 square care meter 4 pieces is
birr 700 on average and 35 square meter of different ceramics were
purchased per month on average and 35 * 204 = 7,140 birr per month
and 7,140*12 = 85,680 birr per year
ii. The selling price of different ceramics assumed to be 18% greater than
the purchasing cost of the product on average 7,140 * 1.18 = 8,425 birr per
month and 85,680 * 1.18 = 101,102
Financial Forecasts
Getamesay Zerihun Construction Material Trade

I. Trend of revenue generation
For year 1 through year 5
Years of the project

Revenue in category 1 2 3 4 5
Revenue from Shopping products
302,500 317,625 333,506 350,182 367,691

Revenue from timber product
Revenue from Ready affordable 690,000 724,500 760,725 798,761 838,699
construction product
Revenue from other shopping 1,080,000 1,134,000 1,190,700 1,250,235 1,312,747
products
Revenue from flour and steal products
Revenue from timber 4,268,880 4,482,324 4,706,440 4,941,762 5,188,850

distribution and retail
4,488,000 4,712,400 4,948,020 5,195,421 5,455,192
Revenue from corrugated iron
2,970,000 3,118,500 3,274,425 3,438,146 3,610,054
Revenue from nail
16

Revenue from different plastic 101,102 106,157 111,465 117,038 122,890

product
13,900,482 14,595,506 15,325,281 16,091,545 16,896,123
Total revenue
Getamesay Zerihun Oda

II. Projected operating
cost For year 1 through
year 5
Description 1 2 3 4 5
CGS for different Shopping and other Products

275,000 283,250 291,748 300,500 309,515
Timber CGS
Ready affordable construction 600,000 618,000 636,540 655,636 675,305
product CGS
900,000 927,000 954,810 983,454 1,012,958
Other product CGS
3,557,400 3,664,122 3,774,046 3,887,267 4,003,885
Timber CGS
3,740,000 3,852,200 3,967,766 4,086,799 4,209,403
Corrugated Iron CGS
2,475,000 2,549,250 2,625,728 2,704,499 2,785,634
Nail CGS
85,680 88,250 90,898 93,625 96,434
Different plastic CGS
11,633,080 11,982,072 12,341,535 12,711,781 13,093,134
Total CGS for Products
Operating expenses for different traded Costs

65,000 66,950 68,959 71,027 73,158
Fuel Expense
Defect materials expenses (1% 116,331 119,821 123,415 127,118 130,931
of CGS)
86,000 88,580 91,237 93,975 96,794
Salary and Wage expense
Loading and unloading 45,000 46,350 47,741 49,173 50,648
expense
20,000 20,600 21,218 21,855 22,510
Other related expenses
332,331 342,301 352,570 363,147 374,041
Total Expenses
11,965,411 12,324,373 12,694,104 13,074,927 13,467,175
Total Operating cost
17


III. Income statement Projection
For year 1 through year 5
Description 1 2 3 4 5
302,500 317,625 333,506 350,182 367,691
Revenue from Timber
275,000 283,250 291,748 300,500 309,515
Total CGS cost for timber
Net Operating income from 27,500 34,375 41,759 49,682 58,176
Timber
Revenue Ready affordable 690,000 724,500 760,725 798,761 838,699
construction products
Total CGS for Ready affordable 600,000 618,000 636,540 655,636 675,305
products
Net operating income from 90,000 106,500 124,185 143,125 163,394
Ready affordable products
1,080,000 1,134,000 1,190,700 1,250,235 1,312,747
Revenue from other products
900,000 927,000 954,810 983,454 1,012,958
Total CGS for other products
other products
Revenue from Timber 4,268,880 4,482,324 4,706,440 4,941,762 5,188,850
distribution and retail
3,557,400 3,664,122 3,774,046 3,887,267 4,003,885
Total CGS for timber
Net operating income from 711,480 818,202 932,395 1,054,495 1,184,965
Timber sales
7,458,000 7,830,900 8,222,445 8,633,567 9,065,246
Revenue from Steal products
6,215,000 6,401,450 6,593,494 6,791,298 6,995,037
Total CGS for steel products
Net operating income from 1,243,000 1,429,450 1,628,952 1,842,269 2,070,208
steal products sales
Revenue from Sales of plastic 101,102 106,157 111,465 117,038 122,890
product
85,680 88,250 90,898 93,625 96,434
Total CGS for plastic
sales of plastic
Total Net operating income per 2,267,402 2,613,434 2,983,747 3,379,765 3,802,989
year
Total operating expenses for the 332,331 342,301 352,570 363,147 374,041
year
1,935,071 2,271,133 2,631,177 3,016,618 3,428,947
Net income before tax
18

IV. Projected Cash flow Statement
For year 1
Details January February March April May June July August September October November December
Cash Inflow
Balance 500,000 661,256 838,933 1,033,988 1,247,423 1,480,292 1,733,698 2,008,799 2,306,811 2,629,006 2,976,721 3,351,354
forwarded
Inflow from 172,708 179,617 186,801 194,273 202,044 210,126 218,531 227,272 236,363 245,818 255,651 265,877
Shopping prod.
Inflow from
Timber 355,740 369,970 384,768 400,159 416,165 432,812 450,125 468,130 486,855 506,329 526,582 547,645
distribution
Inflow from 621,500 646,360 672,214 699,103 727,067 756,150 786,396 817,852 850,566 884,588 919,972 956,771
Steal sales
Inflow from 8,425 8,762 9,113 9,477 9,856 10,251 10,661 11,087 11,530 11,992 12,471 12,970
plastic
Total cash 1,658,374 1,865,964 2,091,830 2,337,001 2,602,557 2,889,630 3,199,410 3,533,140 3,892,125 4,277,733 4,691,397 5,134,617
inflow
Cash Out flow
Outflow for 147,917 152,354 156,925 161,633 166,482 171,476 176,620 181,919 187,376 192,998 198,788 204,751
Shopping prod
Outflow for 296,450 305,344 314,504 323,939 333,657 343,667 353,977 364,596 375,534 386,800 398,404 410,356
Timber distr.
Outflow for 517,917 533,454 549,458 565,942 582,920 600,407 618,420 636,972 656,081 675,764 696,037 716,918
Steal sales
Out flow for 7,140 7,354 7,575 7,802 8,036 8,277 8,526 8,781 9,045 9,316 9,596 9,883
plastic
Out flow for 5,417 5,579 5,747 5,919 6,097 6,279 6,468 6,662 6,862 7,068 7,280 7,498
fuel
Outflow for
Salary & Wage 7,167 7,382 7,603 7,831 8,066 8,308 8,557 8,814 9,079 9,351 9,631 9,920
Out flow for

loading and 3,750 3,863 3,978 4,098 4,221 4,347 4,478 4,612 4,750 4,893 5,040 5,191
unloading
Outflow for 1,667 1,717 1,768 1,821 1,876 1,932 1,990 2,050 2,111 2,175 2,240 2,307
defect
19

Out flow for 9,694 9,985 10,285 10,593 10,911 11,238 11,575 11,923 12,280 12,649 13,028 13,419
other expenses
Total Cash 997,118 1,027,031 1,057,842 1,089,577 1,122,265 1,155,933 1,190,611 1,226,329 1,263,119 1,301,012 1,340,043 1,380,244
outflow
661,256 838,933 1,033,988 1,247,423 1,480,292 1,733,698 2,008,799 2,306,811 2,629,006 2,976,721 3,351,354 3,754,373
Net cash flow
20

21

7. Summary of the Business Plan
The business of Getemesay Zerihun Oda is operation in diversified or multi business line in
order to increase its revenue and mitigate or minimize the risk of business. The business he
engaged are timber distribution and retail, shopping retail, different steal , plastic , carpenter
& toilet tools product retails and currently he is on the plan to increase his revenue more by
stiffening his business more than never before. The shopping service operated at Gambela
Regional State, Gambela Town is projected to generate revenue of birr 13,900,482.00 first
year and net income of birr 1,935,071.00 and both of the items are expected to be increases
by 5% via the life time of the project. The shopping service which decored by the retail and
distribution of different products or goods are trusted to generate the revenues more than
expected as the business includes different portifolized products which help to composite
each other in addition to their acceptability’s on the market. The cost and income calculation
of the project is based on genuine and practical observation of the like business and it will
save the business from misconception about the future cost and income generating capability.
The business is visible and environmentally friend and it is advisable to operate in efficient
manner.
Conclusion and Recommendation
7.1. Conclusion
In conclusion the project is justified based on the following criteria:
a. It shows a decent Return on investment to loan payment

b. It has a healthy net income and loss and cash flow over the plan period
c. It has positive role to play in Ethiopian socio economic development
d. It looks worth from environmental point of view
It is therefore recommended that the project should receive the active support of all
stakeholders to ensure its successful implementation. I generalize as it can be understood
from overall justifications and estimations analyzed in this project feasibility study the
Business will expect to play crucial roles in creating job opportunities for daily laborers
employees under consideration and assist the government by paying annual tax and providing
an opportunity. Availability of needed better market strategy and environmental promising
are also encouraging conditions to undertake the envisioned project. In addition the financial
performance measures indicate that project is financially viable.
22

In this regard, the financial statements of the business i.e. Balance sheet, Income Statements
at the end of the year show a health surplus of revenue over expense and current asset over
current liabilities. Therefore, it can be concluded that the underlying business in highly
proposed to get the intended loan.
7.2. Recommendation
As we can see from the conclusion part the underlying project proposal is worth
feasible/viable from economic, social, technical, financial and environment point of view.
Hence, the government and the related development partners should work with the project for
successful implementation.
To this end the changing of this sacred business plan idea into practice will be effective if the
critical and supportive assistance will be given to the following recommendation. Hence,
Getamesay Zerihun Construction Material Trade service project to get loan of birr 6,000,000.00/
six million from Birhan Bank in order to purchase Sino Truck which helps him to easily
transport his business goods that avoids transportation expenditure and to get additional
revenue by transporting other traders goods and collect car rental revenue service. In addition
to his business it can reduce the shortage of transportation of vehicles of the town and other
districts which are found in the region. Hence, this project is feasible , achievable effective
and efficient if the mentioned bank offered the required loan to purchase the stated vehicle
the above business trader can return his loan based on the mentioned dated plan. So the
concerned Bank should have given enormous amount of loan to change this innovative idea
of business production expansion in to reality. Hence, it should have financial assistance as a
loan (ETB 6000,000/six million birr) from the birhan Bank that help it to cover the cost
goods as per the creditor’s bank policy for long term loan System. Finally, since it is feasible
from different dimensions, we highly recommend Birhan Bank to support this business that
is currently working at Gambela National Regional State, Gambela town.
23

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1. Background and Description of the business

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5. Also assumes risks by guaranteeing the goods we sell to the consumer.

2.1. Business Over view

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2.1.1. Vision Statement

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Product and Service

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3. Industry and market Analysis

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3.1. Marketplace Analysis

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equipment in remote villages of foreign countries. To circumvent this problem, Getamesay

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S.N Description Amount in birr

Bank finance (Borrowing

6.2. Table: 7 Loan Repayment Schedule

Total Annual Remaining

1 350000 1,200,000 4,800,000

2 280,000 1,200,000 3,600,000

3 210000 1,200,000 2,400,000

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4 140000 1,200,000 1,200,000

6.3. Ratio Analysis

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i. The overall purchasing costs of those products are assumed to be 75,000

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Getamesay Zerihun Construction Material Trade

Years of the project

302,500 317,625 333,506 350,182 367,691

Revenue from timber 4,268,880 4,482,324 4,706,440 4,941,762 5,188,850

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Revenue from different plastic 101,102 106,157 111,465 117,038 122,890

Getamesay Zerihun Oda

CGS for different Shopping and other Products

Operating expenses for different traded Costs

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Getamesay Zerihun Oda

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Out flow for

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7. Summary of the Business Plan

Conclusion and Recommendation

In conclusion the project is justified based on the following criteria:

a. It shows a decent Return on investment to loan payment

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