College of Social Science and Humanity

Department Of Business
ENTERPRENEURSHIP AND SMALL BUSINESS PLAN
ASSIGNMEN
T Section
NAME ID NUMBER
1.Eferata Kassa 2687/16
2.Mekedes Tilahun 3188/16
3.Husen Yimam 3024/16
4.Misbah 3297/16
5.Seid Yimame 3513/16
6.Mebratu 3162/16
7.Ahmed Habtamu 2319/16

Submitted to:
Submission.
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 Confidentiality Of the Business plan ..................................................................................... 3
Introduction ........................................................................................................................................4
1. Executive Summary......................................................................................................................... 4
2. Nature of the business....................................................................................................................4
2.1. Mission and vision...................................................................................................................4
2.2. Goals ....................................................................................................................................... 4
2.3. Description of business ...........................................................................................................5
3. Industrial Analysis ...........................................................................................................................5
3.1. Analysis of competitiors ........................................................................................................... 5
3.2. SWOT
Analysis......................................................................................................................... 5
4. Description of the Venture (Product) ............................................................................................. 6
4.1. The process and equipment ...................................................................................................7
4.2. Materials and Source of supply .............................................................................................. 7
4.3. Human Power Requirment .....................................................................................................7
5. Marketing Plan................................................................................................................................8
5.1. Description of customers ........................................................................................................ 8
5.2. Marketing Strategies............................................................................................................... 8
6. The Process and Equipment............................................................................................................ 9
7. Financial Plan .................................................................................................................................. 9
7.1. Sales forecast .......................................................................................................................... 9
7.2. Projected Financial Statements ............................................................................................10
7.3. Projected Cash Flow..............................................................................................................11
7.4. Projected Balance Sheet .......................................................................................................11
7.5. Retaining earnings ................................................................................................................12
8. Organizational Plan .......................................................................................................................13
8.1. Organizational Structures .....................................................................................................13
8.2. Risks ......................................................................................................................................13
8.3. Contingency Plan ..................................................................................................................14
9. Exit Strategy ..................................................................................................................................14

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 Confidentiality of the Business plan
The undersigned reader acknowledges that the information provided
by AGELGEL P.L.C in this business plan is confidential; therefore, reader agrees
not to disclose it without the express written permission of AGELGEL P.L.C.

It is acknowledged by reader that information to be furnished in this business

Plan is in all respects confidential in nature, other than information which is in
the public domain through other means and that any disclosure or use of same
by reader may cause serious harm or damage to AGELGEL P.L.C

Upon request, this document is to be immediately returned to AGELGEL P.L.C

.
.
.

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 Introduction

1. Executive Summary
This business plan will show how a total investment of only 270,000 could yield cumulative
net profits in excess of 490,000 over a five-year period, and average monthly sales of 92,533,
while maintaining adequate levels of liquidity. The purpose of this plan is to secure additional
funding from a bank (300,000 five-year term business loan), to cover the start-up costs.
Agelgel PLC is a private limited start-up business dedicated to providing excellent quality of
injera to the Dessie piyasa people, in a manner that generates fair and equitable returns for
owners, and superior value to our customers. The dessie population has experienced
explosive growth over the past five years. We are opening Enjera making and delivery
service that will focus on Dessie piyasa. Agelgel PLC. Will offer a better product, at a
reasonable price, and will deliver it on time to the customer's door.
2. Nature of the business

2.1. Mission and vision

Agelgel P.L.C. mission is to offer residents of PIYASA the best Enjera service in the
area. We are committed to providing the service quality and value that our customers expect.
Agelgel P.L.C. will use its strategy, staff, and systems to provide each customer
Our vision is to become the first choice of customers for making enjera in PIYASA area,
and a respected company -- as measured by our customers, our employees, and the
community we live in. Our values are critical to our success. They are the strong foundation
of Agelgel PLC, define who we are, and set us apart from our competitors. They underlie our
vision of the future. These values include:
✔ Performance excellence. We act like responsible owners, always seeking to meet or
exceed expectations.
✔ Teamwork. We act as a team, committed to each other, and bound by trust and
loyalty.
✔ Integrity. We treat one another, and all our stakeholders with dignity and respect.
Honesty, ethical behavior, and integrity are fundamental characteristics of our
business conduct.

2.2. Goals
Financial and Strategic Objectives
✔ To attract a minimum of 500 regular customers per day for Enjera making and
delivery for restaurant’s and local events and , in the first year of
operations;.
✔ To generate positive cash flow from operations, and at least 10% net profits to sales.
✔ To make excellent product and service that will build and maintain customer loyalty.
✔ To be in a business location that will assure high company visibility and a high flow
of customers.
✔ To prove management ability to successfully run a similar business.
✔ Create a great commitment to continuous improvement and total quality services.
When we start this business, making injera – a staple in Ethiopia, our target market is going to be
residents who lived in PIYASA, but 5 years later the business has a growing market of clients
abroad.

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 2.3. Description of business
After spending several months searching for a convenient location, the owners decided to lease a
commercial space in a densely populated area of .DESSIE sub city specifically
Called PIYASAThe start-up capital will be used for legal expenses, inventory and equipment, packing
and other materials, insurance, rent, promotion, business sign, and inventory on hand at start-up. We
have estimated total start-up costs of 270,000.
The OUR buisness group being the co-owners (Partners), will provide the bulk of start-up financing
in the amount of 270,000 (33,000 and 12.5% ownership each). Approximately 300,000 additional
funding is needed. Additional financing needed to cover the start-up costs, the company plans to
receive a five-year term commercial loan facility. The loan could be repaid in equal monthly
instalments over a five-year period.
As we mentioned above it’s a PLC. Form of organization which is called Agelgel making PLC. The
owners planned to start the business at 2023 by fulfilling legal requirements such as registration in
Addis.
3. Industrial Analysis

3.1. Analysis of competitiors

In business, the definition of a competitor is any company in the same industry that offers similar
products and services and caters to the same market. For our business, a competitor is any business
that sells enjera to the same target market. We divided our competitors into direct and indirect
competition based on the above definition.
Direct Competition: Direct competitors are business organizations that are very similar with us.
sell the same types of injera considering different qualities and standards, operate under the same
They
service model and appeal to the same target market. Based on this, In our business direct competitors
are business organization which have a local target market, those who gives a delivery service for
customers.
 Indirect Competition: Indirect competitors are harder to spot. They can sell different types
of injera or operate under a different service model. But these businesses are competition
because they cater to the same target market. Therefore our business have many indirect
competitors such as; business who have different types of injera products, business which are
not participating at local markets and those who doesn‟t give a delivery services or those who
give completely different services from us.
We are trying to analyse our both direct and indirect competitors based on Overall SWOT Analysis.
3.2. SWOT Analysis
A. Strength
 A Reasonable price in consideration of innflation
 A Well implented Management Heariarchy
 A Strong balance sheet
 A Customer-based service
 A Website to reach the customers
 A Good relationship with the employees
 A Technological Developed Personnel

B. Weakness
 New to the buisness
 Need more employees to be more efficient
 Not enough branches

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  Rent expenditures

C. Opportunities
 Online Buyers (Online Customers)
 Growing need of Quality Injeras
 The need for a Reasonable price
 Food Consumption growth
 Nation-wide need for Injera

D. Threat
 Experience of othe buisness owners
 Customer Loyalty
 Server Failure
 Supplier‟s Consistency with the raw materials

4. Description of the Venture (Product)

Injera is a fermented spongy bread made from teff, a cereal that looks like wheat and has a sour taste.
It is baked on a clay plate and is largely consumed in PIYASA and MELAKU. Our business planned to
produce it is products in two ways.
First Agelgel processing plc planned to make Enjera by using its own raw materials. As we all know
the inputs for preparing Enjera is a cereal crops which is called Teff. The organization purchased
different kinds of Teff cereals as a raw material from different suppliers by following the necessary
standards of quality.
Then by following the necessary steps of processing we can produce the injera. Agelgel making plc.
Will offer a wide variety of Ethiopian Enjera specifically red and white injera.
Second Some of our customers need to use their own raw materials because of different reasons. Such
as;
✔ Quality of raw materials: the quality of our raw materials didn‟t put in question but at this
present time most peoples are in fraud events and crimes by using bad ingredients which can
be affecting the people‟s health as a raw materials. This criminal activity charges the people‟s
mind to don‟t think there could be standard and quality injera making business at all.
✔ Ease of preparing their own raw materials: these customers may have enough space to
produce a teff product but they have a problem of processing injera. So they will send the raw
materials or the teff powder to us so we can make Injera for them.
✔ Cost of raw materials: our raw materials have a high quality and standard also the cost of
preparing these high quality and standard teff production is higher. Because of this some of
customers couldn‟t afford higher prices of raw materials or teff. So they can purchase by their
own by evaluating different prices of different suppliers.
Therefore for these customers our business organization have a choice to prepare their own raw
materials then we take their raw materials to make an injera and again to deliver their own injera that
we make back to them.
As we seen above in the first way Agelgel making plc prepare its own injera (as a product) and giving
a service by delivering the product or injera to the customer‟s . On the other hand the second way of
the business is only giving the service by, making injera and delivering it to the customer‟s. Enjera is
served at the counter, for take-out, or delivered to the location indicated in our customer orders. We
take orders online, by phone, or at our location.

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In Ethiopia there is no any organization or industry which is engaged in this kinds of service. Most
competitors‟ products are exported to foreign countries. Other companies are not participating in
delivering their products to end local consumers also the quality of the products are doubtful. More
over as we mentioned above the second way of our service makes us special than other Enjera making
business and competitors

4.1. The process and equipment

Flour, water and sourdough starter (ersho), are the main ingredients used for preparation of injera. To
prepare "injera,” teff flour is mixed with water in a container called bohaka, which can be a clay,
plastic, metal, or wooden container. "ersho" which is a fermented thin yellowish fluid saved from the
previous fermentation is added; then flour, water, and "ersho" are thoroughly mixed by stirring to
form a thin, watery paste and left fermentation to occur. The preparation of injera consists of two
stages of natural fermentation, which last for about 24 to 72 hours. The time depends on the altitude
of the area, the concentration of "ersho," and the container used. The paste is said to have fermented
when gas is produced in considerable quantity in it. After fermentation, the yellow liquid that settles
over the past is poured off and a portion of the fermented paste is mixed and boiled with three part of
water to make an additive cooked batter called “Absit”. The "Absit" is then mixed with the fermented
dough and left for about 30 min to rise as of a second fermentation. This aids to get a preferable,
clean-looking, fine appearance, soft thin "injera" having an inviting look. Finally, baking of injera is
usually carried out on a hot earthen plate covered with a metallic or straw lid for about 3-5 min. The
baked injera is then keeps well in the traditional storage container called "mesob" (a cylindrical
container made of grass stems).

4.2. Materials and Source of supply

Materials Number of Suppliers Suppliers imary suppliers

Mitad Grill Three WASS mitad WASS mitad
Bella Mitad
NIAT mitad
Teff flour Many Ture teff Ture teff
Ingredients
Jar and Jag ( Bohaka ) Four ROTO PLC NMM treading
NMM treading
AVON Industries
Sky Industry
Furniture Many Online shopping Online sellers
Desktop Computer Many Online shopping Engocha.com
Vehicle Many
Office supplies Many Stationers Beza stationary
In General we are selecting our primary suppliers in terms of price, product quality, their location,
availability and so on.

4.3. Human Power Requirment

Operations manager
✔ Graduated in Marketing management
✔ Have a good communication skill and mange hard situations and skill to grow the company
to maturity stage

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Accountant
✔ Graduated in accounting or management
Marketing manager
✔ Graduated in marketing management
✔ Skills with good communication, have good marketing ideas ,can work with group, have
marketing strategy and plans
✔ Willing to learn fast

Purchasing manager

✔ Graduated in management fields

✔ Have skills in controlling purchasing

Production employees

✔ Our production employees will be who have an ability to make Enjera. We are planning to
employ women‟s who have no any work and a financial income, just we want a capability and
experience of making and processing injera.

5. Marketing Plan

5.1. Description of customers

Customers of AGELGEL plc are classified into two categories:
1. End Consumers are customers who buy products for consumption. Agelgel bussiness organization
have two target end Consumers;
✔ Women‟s or Housewives
✔ Peoples who lives alone
2. Business customers are customers who buy products for business activities. Agelgel business
organization have two target business Customers;
✔ Hotels and Restaurants
✔ Supermarkets

5.2. Marketing Strategies

PRODUCT – Our product is the bundle of goods and services. This includes the appearance of our
products, how it is served, the support (delivery person, counter people, salespeople,), machinery‟s
and equipment‟s, production quality, packaging, hours of operation, AND MORE.
What do we need to do? Differentiate ourselves. Strive for uniqueness. It can be the types of injera
we made, the way we serve, hours of operation, cleanliness and ambiance, appearance of the staff
(apparel and personal hygiene), staff knowledge, and being open at the right time.
PLACE – This is where and how we deliver our “product”. This can be the production place,
delivery, internet orders, phone orders, a mobile truck, or catering.
What do we need to do? Make it easy. Offer the most options for ordering. Let customer‟s fax or e-
mail orders. Ensure you can take a phone order promptly, efficiently, and error free.
PROMOTION – This is the advertising and sales part of marketing. Promotions can be either push
or pull. Ads “pull” by making the customers aware of and ask for our product or service. Incentives,
such as free goods or price reductions “push” the product out by encouraging customers to buy more
often or increase the order size.

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What do we need to do? The execution is important. Our advertising has to be in the right form,
whether that is coupons, the radio, newspaper, mailer, door hangers,online ADs etc. We will have an
incentive like “buy more than „X' amount and get discount. And we are planning to use direct
marketing most commonly.
PRICE – This is how much you charge for your product. Price considerations include charging the
same price all the time or varying it in some way. Pricing can vary by time, volume, and the level of
service (carryout only special, delivery charge).
What do we need to do? Price is an effective tool. Customers respond to value. The relationship of
the price to the quality is part of the value. Remember, don‟t think of price as
discounting. Discounting has its place, but too much discounting may mean your customers come to
think of your discount as the regular price and they may not pay your actual price. Use discounting to
stimulate business on normally slower business days or slower hours. Price can also be used to gain
business from competitors.

6. The Process and Equipment

Flour, water and sourdough starter (ersho), are the main ingredients used for preparation of injera. To
prepare "injera,” teff flour is mixed with water in a container called bohaka, which can be a clay,
plastic, metal, or wooden container. "ersho" which is a fermented thin yellowish fluid saved from the
previous fermentation is added; then flour, water, and "ersho" are thoroughly mixed by stirring to
form a thin, watery paste and left fermentation to occur. The preparation of injera consists of two
stages of natural fermentation, which last for about 24 to 72 hours. The time depends on the altitude
of the area, the concentration of "ersho," and the container used. The paste is said to have fermented
when gas is produced in considerable quantity in it. After fermentation, the yellow liquid that settles
over the paste is poured off and a portion of the fermented paste is mixed and boiled with three part of
water to make an additive cooked batter called “Absit”. The "Absit" is then mixed with the fermented
dough and left for about 30 min to rise as of a second fermentation. This aids to get a preferable,
clean-looking, fine appearance, soft thin "injera" having an inviting look. Finally, baking of injera is
usually carried out on a hot earthen plate covered with a metallic or straw lid for about 3-5 min. The
baked injera is then keeps well in the traditional storage container called "mesob" (a cylindrical
container made of grass stems).

7. Financial Plan

7.1. Sales forecast

The following table and charts illustrate the sales forecast for five years. The first few months will be
slower, a consequence of being a start-up business, struggling to become more visible within the
community, going from nothing to achieving a regular clientele. A steady growth cycle will occur as
the months pass. Profitability is projected to occur during the first half of the first year. The projected
average monthly sales are approximately 92,533. Considering an average price of 7 birr per one piece
of Enjera, Agelgel plc. Would need to sell on average 600 pieces of injera each day Two weeks are
reserved each year for pay vacation, when the organization will be closed, but important maintenance
works are scheduled for the equipment and facilities during this break period. Using our equipment
and technology we will be able to produce maximum 427 pieces of Enjera per day (theoretical
operating capacity).

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 Sales forecasting

Year Sales forecast Unit Prices Sales Direct unit cost Direct unit cost
of sales

2023 120,000 10 birr 720,000 birr 5 birr 360,000 birr

2024 142,000 10 birr 852,000 birr 5 birr 426,000 birr
2025 156,200 11 birr 1,093,400 birr 6 birr 624,800 birr
2026 171,820 12 birr 1,374,560 birr 7 birr 859,100 birr
2027 189,002 14 birr 1,512,016 birr 9 birr 945,010 birr
Total 569,132 57 birr 6,388,976 birr 32 birr 3,214,910 birr

7.2. Projected Financial Statements

According to our conservative estimates, Agelgel plc. is expected to maintain a healthy financial
position over the next five years. The following plan outlines the financial development of our
company. The business will be initially financed by a 300,000 five-year term loan and a total capital
investment of 270,000. The source to repay the loan will be the cash flow generated from operations.
The company will also finance growth through cash flow. After an initial period of five years, the
company will be able to make a further expansion. At that time, it is envisioned that a bank loan or
equity funding will be sought to finance the new development, in addition to retained earnings. The
projected financial statements have been prepared in accordance with the general accounting
principles, and necessarily include some amounts that are based on reasonable estimates and
judgement. For accounting purposes, the long-term assets are expensed using the straight-line
depreciation method, and inventory is accounted for based on the First-In, First-Out (FIFO) method.
The following sections outline important financial information.
Projected profit and loss
Year 2021 2022 2023 2024 2025 Total
Sales 720,000 852,000 1,093,400 1,374,560 1,512,016 5,551,976
Cost of goods 360,000 426,000 624,800 859,100 945,010 3,214,910
Gross margin 360,000 426,000 468,600 515,460 567,006 2,337,066
Gross margin % 50 % 50 % 43 % 37.5 % 37.5 %
Expenses
Payroll 108,000 126,000 144,000 162,000 180,000 720,000
Sales and marketing 28,800 30,000 32,000 34,000 36,000
Depreciation 12,125 12,125 12,125 12,125 12,125 60,625
Office supplies 1000 1000 1000 1000 1000 5000
Rent 120,000 120,000 120,000 120,000 120,000 600,000
Total operating 269,925 289,125 309,125 329,125 349,125 1,546,425
expenses
Profit before interest 90,075 136,875 158,875 186,335 217,881 790,041
and taxes
Interest 6,035 6,035 6,035 6,035 6,035 30,175
Tax incurred 30,026 46,406 54,106 63,717 74,758 269,013
Net profit 54,014 84,434 98,734 116,583 137,088 490,853

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 7.3. Projected Cash Flow
Many profitable companies go bankrupt because of cash flow deficiencies. That is why our main
concern will be to have sufficient cash on hand to meet our payment obligations, and be prepared for
unexpected needs of cash. Our conservative projections indicate that our business is able to generate
positive cash flows and sufficient cash reserves.
Projected cash flow statement
Year 2021 2022 2023 2024 2025 Total
Cash from Sales 700,000 820,000 1,000,000 1,274,560 1,400,000 5,194,560
Cash from 20,000 32,000 93,400 100,000 112,016 357,416
receivable
Total cash 720,000 852,000 1,093,400 1,374,560 1,512,016 5,551,976
Additional cash received
Tax(VAT) 108,000 123,000 164,010 206,184 226,802 827,996
Long term liability 300,000 0 0 0 0 300,000
Total additional 408,000 127,800 164,010 206,184 226,802 1,142,796
cash
Expenditures
Cash spent for 108,000 126,000 144,000 162,000 180,000 720,000
payroll
Bill payment 120,000 144,000 168,000 192,000 216,000 840,000
Total operating 228,000 270,000 312,000 354,000 396,000 1,560,000
expenditures
Additional cash spent
Tax (vat) 108,000 123,000 164,010 206,184 226,802 827,996
Long term liability 60,000 60,000 60,000 60,000 60,000
principal payments
Long term assets 243,500 0 0 0 0 243,500
purchase
Dividend 16,204 25,330 29,620 34,975 41,126 147,255
Total cash spent 427,704 208,330 253,630 301,158 327,928 1,518,750
Net cash flow 459,716 497,470 691,780 925,586 1,014,890 3,589,442

7.4. Projected Balance Sheet

We expect a healthy growth in net worth and a healthy financial position. We do not project any real
trouble meeting our debt obligations, as long as we achieve our specific objectives.
The following table is the projected balance sheet for five years.

Projected Balance Sheet

Year 2021 2022 2023 2024 2025 Total
Asset
Current assets
Cash 459,716 497,470 691,780 925,586 1,014,890 3,589,442
Inventory 5,478 8,478 12,478 18,478 28,478 73,390
Total current assets 465,194 468,194 464,194 470,194 480,194 2,347,970
Long term assets
Long term assets 243,500 243,500 243,500 243,500 243,500 1,217,500

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Accumulated (12,125) (24,250) (36,375) (48,500) (60,625) (60,625)
Depreciation
Total long term 231,375 219,250 207,125 195,000 182,875 1,035,625
assets
Total Assets 696,569 687,444 671,319 665,194 663,069 3,383,595

Liability and capital

Current liability
Account payable 118,000 108,875 92,750 86,625 84,500 490,750
Long term liability
Long term liability 330,175 324,140 318,105 312,070 306,035 1,590,525
Total liability 448,175 433,015 410,855 398,695 390,535 2,081,275
Paid in capital 270,000 270,000 270,000 270,000 270,000 1,350,000
Retaining earnings (37,810) (59,104) (69,114) (81,608) (95,962) (343,598)
Earnings 16,204 25,330 29,620 34,975 41,126 147,255
Total capital 248,394 236,226 230,506 223,367 215,164 1,153,657
Total capital and 696,569 687,444 671,319 665,194 663,069 3,234,932
liability
Net worth 248,394 236,226 230,506 223,367 215,164 1,153,657

7.5. Retaining earnings

We are planning to expand our business in the future period. So we are going to retain some amounts
of dividend for the company expansion.
The following table is the retaining earnings statements for five years.

Retaining earnings statements

Year 2021 2022 2023 2024 2025 Total
Sales 720,000 852,000 1,093,400 1,374,560 1,512,016 5,551,976
Cost of goods sold 360,000 426,000 624,800 859,100 945,010 3,214,910
Expenses 269,925 289,125 309,125 329,125 349,125 1,546,425
Profit before 90,075 136,875 158,875 186,335 217,881 790,041
interest and taxes
Interest 6,035 6,035 6,035 6,035 6,035 30,175
Tax incurred 30,026 46,406 54,106 63,717 74,758 269,013
Net profit 54,014 84,434 98,734 116,583 137,088 490,853
Dividend 16,204 25,330 29,620 34,975 41,126 147,255
Retaining earnings 37,810 59,104 69,114 81,608 95,962 343,598

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 8. Organizational Plan

8.1. Organizational Structures

General
Manager

Human Sales and

Production Finance Purchasing
Resourc Marketing
e

Management
Prodcut Quality Financia E-Commerce Customer
Assembl Contro Accounting Accounting
l & Direct Service
y l sale

8.2. Risks
Company management is responsible for constantly evaluating risks and taking corrective actions to
provide adequate prevention, control and risk reserves. We have identified several risks that are
associated with our business project. There are many possible classifications of risks, but for the
purposes of this plan, we have chosen to group them as follows:
⮚ External Risks; (These risks come from outside the company and are more difficult to
prevent and control.)
Economic depression: Current trends indicate that the economic downturn is Start-up Sample
Business Plan reaching the bottom, and chances are that the recovery process will begin soon.
However, it is likely to be a slow process, and it will probably take several years until complete
recovery and full growth are achieved.
Competition and buying patterns changes: There is a high risk that new competitors will arrive in
the relevant marketplace. Our continuous improvement management strategy and cost control
techniques will help us to stay on top of customer preference. In addition, the population growth
predicted in the area will increase the chances to maintain and boost sales.
Technology: New and more efficient injera preparation equipment is expected to become available.
However, by deciding to purchase only energy-efficient equipment, we believe to have reduced this
risk over the next five years.
Location: The chosen location will be leased for minimum 5 years, with the possibility to extend the
lease over another similar period. There are no other construction developments foreseen that might
affect our business location in the near future.

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Inflation: According to expert estimates, the inflation rate is likely to remain under control over the
next five years. We have accounted for a 5 percent annual inflation rate.
Taxation and economic policy changes: These changes are likely to occur, and it is not clear how
they might influence our financial performance. This risk is high.
⮚ Internal Risks (These risks come from inside the company and can be better prevented or
controlled.)
Personnel: There are many skilled employees those are able to make Enjera in the country. We will
be able to select the best new staff members from a large number of valuable applicants. Our
personnel strategy includes modern management techniques that will be applied to select, hire,
motivate, and reward the employees. This strategy is expected to build and maintain employee
loyalty, and increase productivity. However, before hiring new employees, their background check
will be reviewed, to avoid possible employee theft, which is a frequent risk in the industry.
Cash flow deficiency: Our main concern will be to have sufficient cash on hand to meet our payment
obligations, and be prepared for unexpected needs of cash.

8.3. Contingency Plan

A. Buisness impact analysis

 Cyber attack
 Decreasing sales

B. Recovery startegy
 Focusing on marketing and promotion
 Increase the customer based service
 Cloud backup

C. Plan development
 Develop the frame work of the contingency plan, Establish and organize the recovery
teams and develop a plan of relocation in the case of destruction

D. Testing
 Cretae a test plan and subzsiquent that can be performed by the buisness to ensure that the
buisness contingency plan works succesfully
9. Exit Strategy
We recognize that any investor in a start-up company, no matter how well on paper, ultimately needs
an exit vehicle. Our purpose is to provide the best alternatives to protect partner‟s interest, while
maintaining the potential growth of our company, the liquidity, and the profitability of future
operations. There are several options that could be discussed while considering alternative methods
for the partners to turn illiquid securities into readily tradable securities or cash.
These options include, but are not limited to:
✔ If any of the partners who want to exit from the company should sell his share to the other
partners those are already existed.
✔ If it is good for the company cash flow any of the partners can withdraw from the company
membership with their initial investment.
✔ If the company is liquidating completely the company’s resources are distributed to the
partners according to their share amount.
✔ At the time of liquidation some of the company assets are changing to cash and distributed to
the partners according to the amount of share they have.

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