SMART COMPUTER SYSTEM MAINTENANCE AND INTERNET SERVICE

ADDIS ABABA MEDICAL AND BUSINESS COLLEGE

POST GARADUATE STUDIES

MBA PROGRAM-PIASSA CAMPUS

ENTREPRENEURSHIP INDIVIDUAL ASSIGNMENT

SMART COMPUTER SYSTEM MAINTENANCE AND INTERNET
SERVICE PLC
BUSINESS PLAN
Messelu W/Amanuel

SUBMITTED TO: - DR. GUDAATA (PHD)

MARCH, 2024
ADDIS ABABA, ETHIOPIA

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Table of Contents
INTRODUCTION..............................................................................................................................................................3
1.1 Company Name............................................................................................................................................................3
Vision..................................................................................................................................................................................3
Mission................................................................................................................................................................................3
Goals................................................................................................................................................................................... 3
1.2 The Name of the Owner and Function in the Business............................................................................................3
1.4 Confidentiality of the Report........................................................................................................................................4
2. EXECUTIVE SUMMARY............................................................................................................................................5
3. INDUSTRY ANALYSIS................................................................................................................................................6
3.1 Future Outlook and Trends.......................................................................................................................................6
3.2 Analysis of Competitors...........................................................................................................................................6
3.3 Market Segmentation................................................................................................................................................6
4. Description of the Venture..............................................................................................................................................7
4.1 Products.....................................................................................................................................................................7
4.2 Size of the Business..................................................................................................................................................7
4.3 Office Equipment and Personnel..............................................................................................................................7
4.4 Background of the Entrepreneurs.............................................................................................................................7
4.5 Location of the Business...........................................................................................................................................7
5. OPERATION/PRODUCTION.......................................................................................................................................9
5.1 Operation Process.....................................................................................................................................................9
5.2 Physical LAYOUT....................................................................................................................................................9
5.3 Equipment and Machinery........................................................................................................................................9
6. MARKETING PLAN...................................................................................................................................................10
6.1 Pricing.....................................................................................................................................................................10
6.2.1 Pricing Strategy................................................................................................................................................10
6.2.2 Promotion Strategy..........................................................................................................................................10
7. FINANCIAL PLAN......................................................................................................................................................12
8. ORGANIZATIONAL PLAN.......................................................................................................................................16
8.1 Organizational Structure...................................................................................................................................16
8.2 Forms of Business Ownership................................................................................................................................16
8.3 Management Team..................................................................................................................................................16
8.4 Effects of Change in Competition...........................................................................................................................17
8.5 Contingency Plan....................................................................................................................................................17

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INTRODUCTION
1.1 Company Name
The company shall be named “SMART COMPUTER SYSTEM MAINTENANCE AND
INTERNET SERVICE PLC”

Vision
By the year 2024 Smart Computer Maintenance and Internet Services PLC shall be recognized as a business
organization providing computer and information technology solutions with the state of the art technologies.

Mission
Smart Computer Maintenance And Internet Service PLC shall deliver computer maintenance and internet
service and to residents of Piassa area and students and employees of Addis Ababa Medical And Business
College Piassa Campus and frequent visitors to the area.

Goals
 Continue to provide computer maintenance and internet services
 provide acceptable levels of rewards for the owners
 create good interpersonal relations with customers
 establish its own identity in the market
The business will be located in Piassa area as the future development (the construction of large number of
pupil and the establishment of Addis Ababa Medical And Business College Piassa Campus) plan of the
area promises high market potential for both internet and computer maintenance services as the number of
both individuals and businesses using personal computers as well as laptops is significantly rising.
1.2 The Name of the Owner and Function in the Business
 Messelu W/Amanuel (OWNER) General Manager
PARTNERS

1. Eden Megistu

2. Hirute Kassa

3. Birhanu Molla

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4. Belete Dagnew

5. Tizita Ashenafi
Smart Computer system Maintenance and Internet Service is primarily undertaking computer maintenance
and internet services to customers. Computer maintenance service includes personal computers used at
homes and other business organizations that are currently outsourcing such activities, laptops, printers,
copiers, fax machines, and other accessories. The internet service includes both wireless and wired internet
services in Addis Ababa Medical and Business College Piassa CAMPUS.
1.3 Statement of Financial Statement
The business shall be established with a total capital of birr 278,000, which will be raised from the partners
and saving and credit association. The owner’s contribution shall be birr 164,000. The money will be used in
the acquisition of personal computers, printer, copy machine, SWITCH/HUB, payment of rent for the
business, purchase of maintenance tool kit, office equipment’s , chairs, and desks.

1.4 Confidentiality of the Report

This document is confidential and proprietor. It may not be circulated or disclosed in whole or partially
without the written permission of the partners. Plans and projections are subject to change.

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2. EXECUTIVE SUMMARY
Smart Computer System Maintenance and Internet Services shall be established as a private limited company
in Addis Ababa Medical and Business College, Piassa Campus.
The total capital of the business will be birr 278,000. Each business partner shall contribute equal amount. So
the owners shall contribute birr 164,000 of the total capital required to start the business. The other birr
114,000 of the capital shall be acquired through saving and credit association loans.
The business shall deliver high quality broadband internet service to the residents of piassa and students and
employees of Addis Ababa Medical and Business College, Piassa Campus and it will also provide computer
maintenance services to individuals and other organizations that are outsourcing these services.

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3. INDUSTRY ANALYSIS
3.1 Future Outlook and Trends

Piassa has the potential for computer system maintenance and internet services as the site is
expected to house around 15,000 residents and the establishment of Addis Ababa Medical and
Business College, Piassa Campus is an asset as large number of university students uses both
services of the business.
3.2 Analysis of Competitors
Currently there happens to be no other business organization in the area that provides these
services. Smart computer maintenance and internet services will be the first to offer to the markets.
And this will help the organization to establish its own identity in the market.
3.3 Market Segmentation

The market groups for our business are identified into the following groups

i. Piassa residents

ii. Addis Ababa Medical and Business College Piassa CAMPUS students and
employees

Other organizations that are interested to outsource the maintenance services as it is economical feasible
iii. occasional visitors to the area

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4. Description of the Venture

4.1 Products
The major services that the business shall offer are computer and other office machines maintenance
services, printing, photocopying, internet services, troubleshooting, web design.
4.2 Size of the Business
The business shall be of small size with capital of 278,000. However the vision of the business is to become
a leader in the provision of computer and information technology solutions in Piassa.
4.3 Office Equipment and Personnel

The business shall require the following office and business equipment and personnel.
Office and Related Equipment’s Requirement
No. Description Qty Unit price Total price
1 Personal computer 5 15,000.00 75,000.00
2 Printer 1 25,000.00 25,000.00
3 Copying Machine 1 35,000.00 35,000.00
4 Computer desk and chair 5 4,000.00 20,000.00
5 Maintenance tool kit 1 5,000.00 5,000.00
6 Switch or hub 1 4,000.00 4,000.00
TOTAL 14 88,000.00 164,000.00
Manpower Requirement Qty Monthly Pay Annual Pay
1 Secretary 1 3,000.00 36,000.00
2 Computer Technician 1 6,500.00 78,000.00
TOTAL 2 9,500.00 114,000.00
Grand Total 16 97,500.00 278,000.00

4.4 Background of the Entrepreneurs

The business partners have rich experiences in computer maintenance and internet technologies which will
significantly contribute to the successful establishment and operation of the proposed business.
4.5 Location of the Business
Smart Computer System Maintenance And Internet Services Plc shall be located in Piassa specific area
Addis Ababa Medical and Business College Piassa CAMPUS The location is chosen because of its
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potential in regularly attracting customers. One fact arises due to the area development through construction
of condominium houses with are expected to house more than 15,000.00 residents.
The other fact arises due to the opening of Addis Ababa Medical and Business College. This has a potential
for attracting computer and internet users to the business. A students and employees of the organizations are
generally expected to be users of these services.

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5. OPERATION/PRODUCTION
5.1 Operation Process
The five computers will be purchased, installed and networked to allow the internet service a switch or hub
will be used in order to share internet among the five computers and to share the printer. The photocopying
machine will be installed and ready to use.
5.2 Physical LAYOUT
Smart computer services shall consist
1. Network cables
2. Other components
5.3 Equipment and Machinery
The following equipment shall be required
1. Personal computers
2. Printer
3. Photocopying machine
4. Computer maintenance tool kit
5. Network switch or hub

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6. MARKETING PLAN
6.1 Pricing
The company shall use market penetration strategy to introduce its products and easily to establish itself in
the market. The planned price of different services of the company is presented as follows:

No. Product or service Planned price

1. Internet service Birr 0.5 per minute

2. Printing Birr 10 per page

3. Photocopying Birr 5 per page

4. Computer Formatting Birr 400 per computer

5. Motherboard repair Birr 1,500 per computer

6. Troubleshooting Birr 500 per computer

7. Secretarial Service Birr 15 per page

6.2.1 Pricing Strategy

The venture follows competitive pricing that basically does not fluctuate in the short run. Since the products
are almost identical, price is primarily set by the market. When we project the prices for the consecutive
years, 11% average increase in overall raise (inflation) is assumed. Competition by price is not taken as the
best strategy in this market rather quality will be paid more attention.

6.2.2 Promotion Strategy

It is imperative that the company be advertised to attract the attention of customers in the target market.
Accordingly the company’s products shall be advertised through flyers, brochures, hanging, and posters.

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METHODS OF ESTIMATING REVENUES FOR THE BUSINESS

Calculate based on 10 hours a day, 5 days a week, and 22 days in a month to allow for any
contingent factors.
No Service Price per unit Quantity per Quantity Annual sales
.
day /year
1. Internet services Birr 0.5 per minute 60 min * 792,000
396,000
10hr*5 pc
2. Printing Birr 10 per page 30 pages per 7,920
79,200
day
3. Photocopying Birr 5 per page 50 pages per 13,200
66,000
day
4. Computer formatting Birr 400 per computer 1 pc per day 264
105,600

5. Mother board Birr 1,500 per computer 1 pc per day 264

396,000
maintenance
6. Troubleshooting Birr 500 per computer 2 pc per day 528
264,000

7. Secretarial service Birr 15 per page 10 pages per 2640 pages

396,000
day
Total 1,702,800

Sales Forecast
Year Sales (In Birr)
Year 1 1,702,800
Year 2 1,890,108
Year 3 2,098,020
Year 4 2,328,802.07
2,584,970
Year 5

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Total Sales Revenue 10,604,700

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7. FINANCIAL PLAN

Forecasted Income Statement for the Next Five Years

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue
Service revenue 1,702,800 1,890,108 2,098,020 2,328,802.07 2,584,970

Expenses
Rent expense 200,000 200,000 250,000 250,000 270,000
Salary expense 114,000 114,000 144,000 144,000 156,000
Internet expense 30,000 30,000 30,000 30,000 30,000
paper expense 200,000 280,000 300,000 300,000 320,000
Toner expense 100,000 120,000 125,000 125,000 150,000
Miscellanies expense 12,000 12,000 12,000 12,000 12,000
Advertisement expense 20,000 25,000 30,000 35,000 35,000
Electric expense 6,000 6,000 6,000 6,000 6,000
Depreciation expense 15,000 15,000 15,000 15,000 15,000
Interest expense 30,000 30,000 --- --- ---
Total expense 727,000 832,000 912,000 917,000 994,000
Net Income before tax 975,800 1,058,108 1,186,020 1,411,802 1,590,970

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OPENING BALANCE SHEET of Smart Computer Maintenance and Internet Service PLC

ASSETS VALUE LIABILITIES VALUES

Fixed Assets Long Term Liabilities
Personal computer 75,000.00 Saving & credit Association 114,000
Printer 25,000.00
Copying Machine 35,000.00
Computer desk and chair 20,000.00 Owner’s Equity
Maintenance tool kit 5,000.00 Messelu W/Amanuel’s, capital 50,000
Switch or hub 4,000.00 Eden Megistu, capital 50,000
Total Fixed Assets Hirute Kassa’s Capital 50,000
164,000.00

Current Assets Tizita Ashenafi’s , Capital 50,000

Cash and bank 29,000 Birhanu Molla’s, Capital 50,000
Supplies 65,000 Belete Dagnew’s, Capital 50,000
Total Current Assets 50,000
TOTAL ASSETS 144,000 TOTAL LIABILITIES & 144,000

CAPITAL

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SMART COMPUTER MAINTENANCE AND INTERNET SERVICES PLC YEAR END BALANCE
SHEET FOR THE NEXT FIVE YEARS

Year 1 Year 2 Year 3 Year 4 Year 5

Assets
Fixed Assets
Computers 75,000 75,000 75,000 75,000 75,000
Acc. Depre. (15,000) (30,000) (45,000) (60,000) (75,000)
Printer 25,000 25,000 25,000 25,000 25,000
Acc. Depre. (5,000) (10,000) (15,000) (20,000) (25,000)
Photocopying machine 35,000 35,000 35,000 35,000 35,000
Acc. Depre- (7,000) (14,000) (21,000) (28,000) (35,000)
Switch or Hub 4,000 4,000 4,000 4,000 4,000
Acc. Depre. (800) (1,600) (2,400) (3,200) (4,000)
Maintenance tools 5,000 5,000 5,000 5,000 5,000
Acc.Depre (1,000) (2,000) (3,000) (4,000) (5,000)
Furniture 20,000 20,000 20,000 20,000 20,000
Acc. Depre. (4,000) (8,000) (12,000) (16,000) (20,000)
Total Fixed Assets 164,000 164,000 164,000 164,000 164,000
Current Assets
Cash and bank 371,420 372,420 356,420 343,920 310,420
Supplies 15,000 15,000 15,000 15,000 15,000
Short-term deposits 40,000 40,000 40,000 40,000 40,000
Total Current Assets 426,420 427,420 411,420 398,920 365,420
Total assets 486,420 487,420 471,420 458,920 425,420
Liabilities
Long term liabilities 25,000 ----- ------ -------- ------
Capital
Total Capital 471,420 487,420 471,420 458,920 425,420

Total liab. & capital 486,420 487,420 471,420 458,920 425,420

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Depreciation expense is calculated on Straight Line Method and the useful life of the assets are estimated
as for personal computers 5 years, photocopying machine 5 years, for printer 5 years.

SMART COMPUTER MAINTENANCE AND INTERNET SERVICE PLC

Forecasted Cash Flow Statement for the Years 1 Through 5

Year 1 Year 2 Year3 Year 4 Year 5

cash beginning of 418,220 817,020 1,267,020 1,744,020

the year
+equity 60,000 --- --- --- ----
+loans 50,000 --- --- --- ----
+sales 506,220 540,000 600,000 630,000 680,000
+any other --- --
Total cash in 616,220 958,220 1,417,020 1,897,020 2,424,020
+investment 60,000 -- -- --- ---
+operational cost 113,000 116,600 150,000 153,000 178,000
+loan repayment 25,000 25,000 --- ---- ----
+withdrawal
+tax payable
Total cash out 198,000 141,200 150,000 153,000 178,000
Cash at the end of 418,220 817,020 1,267,020 1,744,020 2,246,020

the year

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8. ORGANIZATIONAL PLAN
8.1Organizational Structure

General
Manager

V/General
manager Secretary

IT
Finance head Marketing Sales HRM
TECHNICI
AN
8.2 Forms of Business Ownership
Smart Computer System Maintenance and Internet Service shall be established as a private
limited company.
8.3 Management Team

1. Messelu W/Amanuel General Manager

2. Eden Megistu Finance head

3. Hirute Kassa –head, marketing

4. Birhanu Molla -head, HRM

5. Belete Dagnew - head, sales

6. Tizita Ashenafi - V/General Manager

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8.4 Effects of Change in Competition

Given the increasing number of internet businesses and computer maintenance services, it is
expected that the prices are gradually decreases. However as the financial plans show the business
has good chances of being successful even after a price decrease.

8.5 Contingency Plan

Should the demand for the company’s products and services decreases, which does not require
much investment in maintenance and internet services.

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