Awol Jemal wholesale trade

in Food Item related Business

Working Capital Finance
Request plan
FINANCE PROPOSAL
JIMMA,ETHIOPIA
Executive Summary
Awol Jemal Ahmed Food whole sale Trade busines was started at
Jimma,zone Jimma town as a sole Proprietorship form of business, By
Trade licence number of ORO/JT/office /04/452/4384224/14
BY Commercial Registration number
ORO/JT/office /3/Oro/JT/office/14 By Tin Number of 000000000 Given
Date of 15/03/2014 as whole sale trade in Food with initial Capital of
200,000 At Hirmata Merkato of Jimma Town to supply Mainly food and
food related product to the community of Jimma Town and surround
woredas .
The ,wheat flour business that is specially contributed to the country
and main source of the livelihood so the promoter is planned to expand
the work of the existing business by getting finance service from CBE to
expand the business for the current year to increase the sale.
The short-term objective of the promoter is to supply the wheat flour
and other edible packed food from the central market and provide to the
Jimma town market and the promoter is planned to scale-up the
merchandise to the other woreda and zone. And also the business was
profitable in the past fiscal year due to the high price increase of
merchandise throughout the year due the good market condition the
promoter down the payment as per .The bank loan policy and procedure
on time.
The long-term objective of the owner is to make the business upgraded
and the known supplier of wheat flour ,edible oil and sugar supplier to
the zone market and woreda through his own outlet .the promoter was
also in the business of the wheat flour for the last six years in supplying
huge quantity of wheat flour .by creating job opportunity to allot of
people and currently the promoter is planned to expand the business by
upgrading to the high level of competent whole sale of Food Product
other edible packed food to the Jimma town and nearby southern region
To implement this business effective the promoter is required a 15,000,000
(Fifteen million birr only) from Commercial Bank of Ethiopia which is
repaid within 1 year period of time which is paid in annual mode of
payment for working capital purchase of wheat flour whole sale supplies
business.
2-Background and Description of the Business
2.1 Type of Product or Service to be Produce by the business
Awol Jemal Ahmed Food whole sale Trade busines is a private
enterprise based in Jimma zone Jimma town. Whose main mission is to
provide the quality wheat flour ,edible oil and sugar to the zone and
woreda market and serve the community by providing the needed
quantity of wheat flour ,edible oil and sugar from the central
market ,different companies and selling to the community by competitive
fair price throughout the year and excel the demand of those basic need
to the community .the promoter provide the wheat flour, edible oil and
sugar .
2.2 The location of the business
Awol Jemal Ahmed Food whole sale Trade business found in Jimma zone
Jimma town and the merchandise business is operated in the Jimma
town in particular and different kebeles ofginjqkf jimma town and nearby
woreda but the main shop is located in the town which is owned by
promoters and found in the down town of Jimma.
2.3 The type of the business
Awol Jemal Ahmed Food whole sale Trade business is a sole
Proprietorship form of business, owned by promoter. The type of this
merchandise whole sells business of sugar, wheat flour and edible oil
trade currently, it has an attractive demand for the product because of
the supply gap in the country and easy access of resident in the Jimma
at every local market especially in the holy fast of Ramadan
2.4 The recent operational history of the business
Awol Jemal Ahmed Food whole sale Trade business merchandise trade
has an excellent business operation history for the budget year ended by
the bread and cake production markets which the receipt is not attached
with and sold in local and different enterprises. This indicated that the
business can return the financing in stated time period. Because of the
last year the commodity price was good and the promoter managed the
business.
2.5 The main long-term and short-term goals of the business
The long-term goal of the owner of this business is to make the business
of the merchandise to high standard of expanding to the different zonal
areas and the known whole seller at south west of Ethiopia.
The short-term objective of the promoter is to purchase commodity in the
bulk and supply to the local market and earn profit by filling the high
demand gap of the merchandise commodity in the local woredas. Make
the firm profitable and return the finance according to the bank finance
repayment schedule on time to strength the further loyalty of the
customer and build strong relationship with the interest free bank.
2.6A synopsis of the sector (a brief summary of the industry)
Today the merchandize commodity business trade is highly growing at
fast rate when we compare to other business. This is due to, the existing
fast economic growth of the country and moderate political reform in the
in the Ethiopia and the government are giving due focus for importing
the necessary commodities by subsidizing and increasing in volume and
quantity.
As the income of citizens increased the purchase power of the citizens
also increases and demand for the quality product is doubled
accordingly. This is also a good opportunity for any business and trade to
make their business without the fear of demand in the market at local
and
international. Therefore, the merchandise business in the Jimma town is
shows that high demand in the local market. So, it leads the promoters
to scale-up the expansion of the business and increase the supplying of
the merchandize in the stated Jimma town and nearby woreda mainly to
excel the .
2.7 The Purpose of the establishment of the business
The main purpose of expanding this business is to scale-up the existing
business is to take the opportunity that open in the Jimma Town and
nearby woreda and its around woredas in the business of merchandise
commodities and to make profit from the business and finally to create
job opportunity for the society in which the promoter living. This
expansion work of the business will be expected to provide job
opportunity for 100 individuals and it will grow in the future as the
organization will grow further.
3.3 Pre-Operational Activities
Pre-investment studies for the merchandise is completed and started.
Purchase of the necessary materials for the business (office material,
furniture and fixture).

3.4 Pre-Operation Costs

Cost for business plan and proposal preparation (Payment for
professionals).
New Staffs recruitment cost (for new woreda outlet, like operators,
guards, accountant, and store keepers).
Organizing Cost (for example office arrangement etc.)
4. Marketing Plan
4.1 Current market size, growth rate, market share
The merchandise business is highly demanded business in the Ethiopia
mainly in jimma zone and different oromia because of coffee grown areas
of south nation and nationalities and the community has the potential to
purchase. Even though there is no detail market study on the growth
rate of the business and the market share of the merchandise in Jimma
zone is high.
4.2Potential Customers
The identified potential supplier’s customers for this business will be the
following.
 The wheat flour factory in Ethiopia
 Different importer
 Sugar factory in Ethiopia suppliers

4.3Competitive Strategy
Awol Jemal Ahmed Food whole sale Trade business merchandise
business will use a competitive strategy by using its good will, quality c
supplies and to deliver high quality to the local market and by keeping
the promise to the suppliers of the local and the community being the
loyalty is the first scheme of the business for the continuity of ever and
the promoter is unique in loyalty from the same merchandise business
traders in the Ethiopia.
4.4Comparison and Contrast with Competitors in Price, Quality,
Distribution and Current Market Share.
Awol Jemal Ahmed Food whole sale Trade business merchandise
business undertakes the trade business in the local market based on
quality of service and satisfaction of customers charge price to its
customers in fairways. In comparison to its competitors it has high
market share
because of the advantage that the loyalty gets leader of the market in the
town and committed and experienced staffs of the industry is one core
competitive advantage for promoter. Therefore, this helps the promoter
(owner) to be competent in the industry. In the future the promoter will
expand the Business and more scale up its market share by completed
this Business expansion.
4.5 Barrier to the market
The major expected barriers to this market will be:
Large capital requirement of the sector and global market volatility in
commodity price.
The in availability of experienced and professional’s sell person to
undertake the business in large and good manner.
4.6 Business marketing Plan (promotion, advertising & marketing
budget)
Awol Jemal Ahmed Food whole sale Trade business merchandise
business is not mainly known to promote in the local market and due to
this there is no such usage of media to promote ones merchandise
business and due to this the main theme of the technique is only to keep
ones trusty and loyalty with suppliers and traders to continue the
business chain and always not compromising the supplies of the needed
merchandise to the beneficiary.
4.8 Projected Sales Prices of Products (Services) as well as
Comparison & Contrast with Competitors.
The sales price of the Awol Jemal Ahmedmerchandise business is
characterized by combination of the promoters trust and loyalties
supplies and the considered.
4.9 Details of sales Personnel and Method of Remuneration
The merchandise business will use a lot of personnel’s to goodly perform
the sales function of the business.
The main features and benefits of the product /service:
Awol Jemal Food whole sale Trade business merchandise business
currently working on supplying business of merchandise and he supplies
quality commodity to the local traders and consumers by purchasing
from other suppliers and importers.
Difference from competitor’s product:
Awol Jemal Food whole sale Trade business merchandise business
supplies quality commodity by undertaking early following the process of
the purchasing and supplying by himself and for the past two years his
merchandise product is good from the others even though, special
variation is not presented
Full details of the production process and of the machinery:
Awol Jemal Food whole sale Trade business merchandise business is
very huge and the capacity of providing is very high in the Jimma zone
and this year supplying capacity is expecting to grow if the promoter gets
finance from the bank and the business will upgrade the business .and
also the promoter was in the business of nut for long period of time.
Workforce:
There is problem of getting qualified man sell person especially on
Dealing with customer and for the new intended expansion of the
business and the promoter need to hire with better salary of the existing
industry due to the business performance will be high.
Layout of premises:
The premised is located near to the road access and the entire store and
the office.
Source of raw materials and prices:
Awol Jemal Food whole sale Trade business merchandise business is
purchased from the local suppliers, government and importers, and there
is no scarcity supply of the merchandise if the needed amount is
financed and the price of those commodity is mainly is determined by the
trade authority.
Delivery methods of finished goods to the customers/market
Awol Jemal Food whole sale Trade business merchandise business
supplies mainly the commodity to the woreda and only market is in the
Ethiopian market and the consumer and the local retailers purchase in
huge amount at the promoters office and store after technical and legal
document is received from the woreda concerned organ to distribute the
stated commodity.
Stock management system.
Awol Jemal Food whole sale Trade business merchandise business built
huge merchandise store for the commodity purchased and all the stock
is registered on the stock inventory when withdrawn from the store and
the guard nearly control.
Financial plan
6.1 Total amount of loan required
The promoter of the Business will required a working capital of birr
15,000,000 (Fifteen million birr) for flour whole sale business for to Run the
business in tangible way. If the bank allowed the required loan amount
the promoter is ready to purchase the merchandise and distribute to the
local market in the woreda and meet the high demand of the
commodities.
6.2 Capital requirement and break down
The break-down of the Finance requirement is presented as follow.
Working capital Finance for merchandise ………………. 15,000,000
Total required amount of birr………………………………Br.15,000,000
If the bank will be allowed the required amount of the total br.
15,000,000 Finance, the promoter is ready to undertake the business.
6.3 Collateral Offered
The promoter location estimated value
furnished the
following security
found in Jimma
town Residential
Building which is
estimates as
14,000,000 million
worth. collateral
Residential building 14,000,000
Total 14,000,000