Jimma University

College of business and economics

DEPARETEMENT OF management

ENTERPRENURSHIP BUSSINESS PLAN ASSIGNEMENT

BUSINESS PALN ON FRUITS AND JUICES SERVICES

Prepared by Group 1
 Fruits and Juices services

Submitted to:Mr. fuad

submission Date: 5/10/ 2016 E.C

Jimma University, JIT, School of Mechanical Engineering, Page 2

(Entrepreneurship, MEng 5181)
 Fruits and Juices services

Group Members (Group 1)

No NAME ID No
1 ABDELA ABDULWOHAB NEJASH RR0011/15
2 ABDISA KADIR GOBENA RR0029/15
3 ABDU YESUF HUSSIEN RU1130/16
4 ABDULHAKIM ABAY MEKURIA RR0054
5 ABDULHAKIM AMIN TILMO RR0055/15
6 ABRIHAM KEMISO ERGICHO RR0150/15
7 AMANUEL SAMUEL ASEFA RR0242/15
8 AMINA HAJI KEMAL RR0263/15
9 ASEGID GETIYE FELEKE RR0299/15
10 BACHA GERGISO DEME RU1179/16
11 +
12 +

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ACKNOWLEDGEMENTS

First and for most, we would like to dedicate our deepest gratitude to our Instructor. (Mr. fuad )
in commenting and directing us to accomplish this Business plan.

Next, we would also have thanks for management department that offers us such interesting
course.

Last, we would like to extend our gratitude to jimma University for providing us with workable
ideas for this project through Business Plan that have encouraged us to be creative and to design
a business that if opened, would be beneficial to the whole jimma University campus and
community.

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EXECUTE SUMMERY

The Fruits and Juices services are small business service. A Fruit selling and juices in the
production of different Juicy types and various fruit with different fastest and flower.

Since we (the principals or partners) are self-motivated, highly initiated and have the business
mind self-up and highly communicated to run our own business. Hence we planned to give the
Fruits and Juices services in jimma university campus. The business can have general objectives
to start a business that makes profit, to give service for the community, to respond to the market
demand.

Around 800, 000 birr as a capital will be require to start the business .The business is expected to
be profitable in that environmental gross profits 61.67%per month from the sale of juices and
12.7 % per month from the sale of fruit/fruits purchase. Our service needs to engage in
productions of quality and quantity fruit and juice that can make us profitable by winning the
other competitor business in marketing by processing according to the need and interest of
customers as well as that can increase the amount of juice and fruit. Our customers are the
students, staff around the campus, the community and our compotator is Fresh juice Cafeteria
which engages in the productions of juice but not fruit. Our service intend to sale fruit and juice
with relatively few cost for the students ,staff and community of the area than market price and
more quantities are expected to supplied which could compensate the decrease price.

Generally, the total sale per month will assume to be 54,600 Ethiopian Birr.

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Contents

ACKNOWLEDGEMENTS.............................................................................................................I
EXECUTE SUMMERY.................................................................................................................II
CONTENTS……………………………………………………………………………………...III

1 INTRODUCTION....................................................................................................................1
2 OBJECTIVES..........................................................................................................................2
3 ENVIRONMENTAL ANALYSIS...........................................................................................3
4 DESCRIPTION OF THE BUSINESS OR VENTURE...........................................................5
5 PRODUCTION PLAN.............................................................................................................9
6 HEALTH AND SAFETY......................................................................................................11
7 DESIGN AND LAYOUT......................................................................................................12
8 MARKETING PLAN.............................................................................................................14
9 ORGANIZATIONAL PLAN.................................................................................................16
10 FINANCIAL PLAN...........................................................................................................18
11 RESULT.............................................................................................................................22
12 SUMMARY........................................................................................................................23

List of tables
Table 1 Responsibility of each partner..........................................................................................16

List of figures

Figure 1 Fruits..................................................................................................................................5
Figure 2 Flow of Reports.................................................................................................................8
Figure 3 Production flow chart........................................................................................................9
Figure 4 Logo of the Enterprise.....................................................................................................12
Figure 5 Basic design for a fruit and vegetable processing unit....................................................13

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1 INTRODUCTION

The Fruits and Juices services are small business service. A Fruit selling and juices in the
production of different Juicy types and various fruit with different fastest and flower. It will be a
produce juice of different fruits types. Namely, Mongo juices, papaya juices, orange juices,
avocado juices. In addition, it will sale fruit purchase, and fruit for home-take purpose with
requirement to thus consumer.

Since we (the principals or partners) are self-motivated, highly initiated and have the business
mind self-up and highly communicated to run our own business. Hence we planned to give the
Fruits and Juices services in jimma University campus.

This small business will be successful moreover because of high demand for juices and fruits
from the consumer. The availability of raw materials in nearby area and government policy on
setting the price of the fruits and the requirement low initial capital and low inter of rate
preventing in the country will make the business profitable.

Our service will provide the customer’s products of high quality and value added and there is so
much business producing and selling such product and hence, these will make the business a
very important in jimma University, campus which located in jimma Town, 353 km south
western of Addis Ababa.

It wills sale fruits and juices at the satisfactory price. It will purchase fruit from local producers
and suppliers as well as different pair of the country where supply is high. It will produce juices
of different fruits various to the consumers.

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2 OBJECTIVES

Main objective

The business can have general objectives to meet and specific objectives to be addressed.

This business is aimed for the following implicit objectives:

 To start a business that makes profit.

 To give service for the community.

 To respond to the market demand.

Specific objective

 To provide quality, fresh fruits and juices for the community.

 To be entrepreneur

 To create the work for others

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3 ENVIRONMENTAL ANALYSIS

a. Industry Analysis

Industry analysis is very important aspect for our business when we use jimma University juices
and fruits service aspects it is small services have been setup in state capital and other places all
over the country to provide consultancy and training to small enterprise both existing and
prospective. It provide general fruit services and for our customer through industrial way.

b. Features Outlook of trends

jimma university juices and fruit service will start up business that provide fruits and vegetables
raw material on convenient and flexible form.

It also play areas role in developing small scale sector

It will provide industrial state of raw material, process scarce key raw material, financial
assistance and marketing assistance to small entrepreneur.

c. Analysis of competitors

As mentioned the above, there is no existing business that producing and selling those products
competition during the startup will be negligible.

Although there are some/few business firms selling manufactured juices, they are not involving
in producing them and provide fresh fruits.

Due to the above reason, the products will be preferred by the customers for consumption plus,
the brand of the manufactured products is not the same as well as not known, not trust worthy.

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d. Market Segmentation

The market of juices and fruits productions service will have sufficient customers that may
interested to buy our products. Our service may have two types of customers. They are actual
customers and potentials customers. The actual customers are those customers that will buy our
product permanently they are restaurants, cafeterias and hotel as a whole seller. These actual
customers are located in Jimma University students and staff cafe.

They buy juices and fruit to sell it for their customer. The potential customers that are expected
to use our products for their home consumption. Actually the fruits are interested by all level of
age group of people especially, by children. The most potential customers are also found in
Jimma University staff for their child who earns their income monthly.

Our service may have one competitor “Fresh juice Cafeteria” which is found around Jimma
University, Campus, this competitor produce juice but not fruit.

Even though our enterprise has competitor, our enterprise may have high potential customer than
the competitor one because our enterprise have good management. So there is investment in
demand of our product as we expect.

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4 DESCRIPTION OF THE BUSINESS OR VENTURE

This Fruits and Juice service are small business service A Fruit selling and juices in the
production of different Juicy types and various fruit with different fastest and flower.

It will be a produce juice of different fruits types. Namely, Mongo juices, papaya juices,
strawberry juices, orange juices, avocado juices and mixes between its. In addition, it wills sale
fruit purchase, and fruit for home-take purpose with requirement to thus consumer, they are
JIMMA UNIVERSITY community, all the staff and student residing inside the campus as well
as outside the campus.

Since we (the principals

or partners) are self-
motivated, highly
initiated and have the
business mind self-up
and highly
communicated to run
our own business.

This small business will

be successful moreover
because of high demand
Figure 1 Fruits for juices and fruits
from the consumer. The
availability of raw materials in nearby area and government policy on setting the price of the
fruits and the requirement low initial capital and low inter of rate preventing in the country will
make the bossiness profitable.

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This business will provide the customer products of high quality and value added and there is so
much business enterprise producing and selling such product and hence, these will make the
business enterprise a huge type of business enterprise in Jimma University campus.

a. Background of entrepreneur

Firstly, we start our business. The name of our business is called fruit and juice service. To
established our business with the amount of 800, 00 birr for the purpose of running and operating
the juices and fruits from the production with about 6,000 birr to buy row material telephone,
advertising, rent home, and for construction of their own shelf tar/house and for machinery with
office equipment.

To meet our mission is the contact person with responsible for juices and fruit productions.

b. Product and service

All types of juices mentioned above and fruit purchase and home-take fruits will be selling to the
consumer .The basic future of this product fruit are important for human health, they have
different nutrition values and the give the customer psychological satisfaction.

Beyond this for the business mean, it will help mean of generating income and profitable
from the sale of either juice or fruits.

In the market this business will use its effort to be component by providing different quality
product at reasonable price product differentiation and the use of fresh fruit ton produce fresh
juices will make the enterprise unique as well as price.

c. Market Analysis

The fruits and juices Business will be established in Jimma University which located in Jimma
Town, 353km south western of Addis Ababa. Therefore the customers are those well in the main
campus of different ages and are educated individual with a greater psychological makeup and
attitude towards for the product that will be produced.

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The market size will increase or expand through time as the demand for the products/juices/rise
and the cost of raw material/fruits/will is a fair.

d. Size of business

Since our business, is its start- up business that provides row material for our customers .This
business is developing vastly from time to time, because we have high amount of demand for
customer’s .Initially when start size of our business is small but know it is very high.

Firstly, when we established this business, it’s established by partnership form. In this case we
have managed audit offer that through the advice and government of our manager our net
enterprise or income will increasing from time to time.

e. Office equipment and personal Office equipment

The business enterprise will produce and give its service in the compound of Jimma University.
It will be need to accommodate the following properties:
 Tables
 Shelves
 Chairs/seats
 TV and its sets

Quality control and Assurance

General
Sales man Purchaser
Manager

Figure 2 Flow
7 of Reports
 Fruits and Juices services

The figure shows, the flow report within the enterprise and who –reports whom,

Salaries of each responsible partner in the management and operation.

1, general managers earns----------------------------------------1,400

2, sales man earns-------------------------------------------------1,200
3, purchaser--------------------------------------------------------1,100
4, quality control and assurance earns--------------------------1,300
And etc.

For any business to be run, it needs personnel, in production processes.

The personnel required will be waiter or waiters, machine operators, daily labors and others.

Training will be provided to the machine operator and production workers in relation to
sanitation.

The workers will get some benefit like soaps, cloth and food and other as incentives.

5 PRODUCTION PLAN

a. Manufacturing Process and Physical Plant

Is talking about physical arrangement of item, we want show according to the Following
diagram.

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Raw materials Stored in dry Washed

cool Weight (in kg)
(fruits) Production flow chart
From market And cool place

1, Addition of
Placed in Sold to the Collected in
necessary Put in to Cut/peeled
refrigerator control the bottle
ingredient squeezing
summer glass machine

b.
c.

Fruits Washed Cut in to Fruit punch Sold to the

pieces consumer

Figure 3 Production flow chart

b. Machinery Equipment

This business will produce and give its service in the compound of Jimma University. Building
will be rent from Jimma University and an agreement will be signed between the partners for
one year contract. The building will be decorated to the extent that it will suit for work. And the
cost will be allocated for this purpose.
It will be need to accommodate the following properties:
 Refrigerator

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 Tables
 Shelves
 Chairs/seats
 TV and its sets
Jimma University, campus is a good location for such business because no other business selling
and providing this type of business. Despite of the fact, there is high demand for the products and
services; there is a lack of supply.

6 HEALTH AND SAFETY

It is all-important to pay attention to the care and health before opening a gastronomic
establishment. There are licenses and hygiene certificates which need to follow. If we do not
follow the instruction the customers or the stuffs could get sick (food poisoning) or accident (to
slip on a banana peel or on a leakage smoothie). The hygiene policy has to include all the points
below.
Storage and preparation of food
 All utensils (plates, cups, and bowl) must be carefully washed, rinsed and put away when not
in use.
 After food preparation, surfaces must be wiped down and disinfected.
 The refrigerators must be cleaned and food that may decay is to be discarded from them
regularly.
 The staffs have to wear gloves by preparing food.
Washing hands
 Before you start working.
 After handling rubbish.
 Before and after preparing food.
 After the lunch break, a cigarette or a toilet.
It is also necessary to have enough fire exits and escape ways. You need to think about first aid
as well.

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First aid
 The staffs need a first aid qualification (wear gloves; wash carpet areas with soap and water;
use disinfectant).
 First aid boxes

7 DESIGN AND LAYOUT

A logo is an integral part of the company's image and key to marketing success, so its quality is
of highest importance for any business. It represents the companies’ brand and the customers
identify with its image.

A smoothie bar sells health and fitness. For this reason the main colors are green and yellow. The
logo of “fresh fruit and juice” will represent Jimma university campus and “the fruit used to
make the letter and the juice” will represent freshness, fitness and a healthy awareness. It could
look like figure 4 below. The style of lettering is abstract which could calls young person’s
attention to eat more healthy food. The logo is easy to understand and comprised the main aim of
university.

Figure 4 Logo of the Enterprise

The best place for “fresh fruits and juices Business enterprise” will be inside the campus between
student cafe and staff lounge and lower level of building in which student lounge found.

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There is enough space for a bar and it does not bother the student lounge, the entry and exit.
When the students and the staffs have their lunch they can look from every seat area of the lobby
at the smoothie bar. They have the choice to have a healthy dessert.

Washing area Dining Room

Raw material
Processing
area

Direction food
Entry and Exit moves through
processing room.

Packaging

8 MARKETING PLAN
Office/testing area Product store

Figure 5 Basic designs for a fruit and vegetable processing unit

(Hand-washing/changing facilities and toilets in another building)

a. Pricing

Since pricing strategy is one of the marketing plans, the pricing strategy will be of fair-price,
taking the cost of inputs/fruits/and labor costs into considerations and hence the customers will
be willing to pay the prices.

Price setting will also depends on the cost of goods purchased from the suppliers and others costs
like transportations costs, daily labor costs and because of these there will be fair competitions
whenever a new type of business enterprise enter the market. In additions, to be competent other

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values will be added to products without raising the price of the product because of other
advantage to cover the cost.

b. Distribution

The distribution system of product is that our enterprise distributes the juices and fruits for many
organizations in a day for actual and potential customers. The enterprise will use promotion and
advertising method through assign human power and standing by “tapella” in front of our
business. When we enter into Jimma University campus, we have many competent without
business.

Our business to be competitive seller we intent to set price of our product which is a little beat
smaller than market price to attract new actual and potential customers for expansion our
capacity.

c. Promotion

Posters tracts will be prepared to acquaint the customers where they can find the products, juices
and fruits, the prices of each unit in terms of its measuring units.

Promotion will stress on the benefits the customers will get from consumption of the product, its
nutritional value, freshness and neatness.

d. Production for Cast

After the products are produced, it will be used immediately. If not it will be kept in refrigerator
for later sale or use high emphasis will be given to the quality of the products. Its freshness and
neatness and the general quality standard of the products with satisfactory prices and services in
order to develop a good image in the minds of the customers to buy our products.

9 ORGANIZATIONAL PLAN
a. Authority of Principal and Management Team Background

The partners, shareholders have business backgrounds and some have managerial skills, and
others have innovative potential.

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The management team will have; general manger, salesman, purchaser, quality control and
assurance. As management, we form management team to share necessary information on our
strength and weakness, discussion the problem we may in the future that could be threat for our
business as well as to exploit available opportunities so as to maximize our profit. The
management team also discussions the salaries of the employers for formal employment
according to qualifications and criteria required and for informal employment on agreement. The
employee type and number we discussed under the descriptions of our business. Responsibility
of each partner is presented in table 1 below.

Table 1 Responsibility of each partner

NO RESPONSIBILITY NAME
1 GENERAL MANAGER ABDELA ABDULWOHAB
2 SUPERVISOR ABDISA KADIR
3 FRUIT SALESMEN ABDU YESUF
4 PURCHASERS ABDULHAKIM ABAY
5 QUALITY CONTROL AND ASSURANCE ABDULHAKIM AMIN T
6 JUICE MACHINE OPERATOR ABRIHAM KEMISO
7 JUICE SALESMEN AMANUEL SAMUEL
8 AUDITOR MULUKEN USAMO
9 CASHER AMINA HAJI
10 RECORD KEEPING ASEGID GETIYE
11 SECURITY BACHA GERGISO
12 FRUIT MACHINE OPERATOR SAMUEL MARKOSE
13 HOUSE CLEANER DESALEGN TESSEMA

Director and Adviser

They key persons in our business the smooth functioning of the business. They are responsible to
play decisive roles to catch up knowledge, experience from our external environment, adversary
services and by making, creating strong relationship with business and non-business

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organizations. Furthermore they are responsible to save the way to serve our customer working
on quantities and qualities of our products and the business as whole. These all activities will be
run in accordance with our business form. The form of our business organization is partnership
that will operate and organize by twelve (12) students who will graduate near future from Jimma
University in 2027 G.C.

10 FINANCIAL PLAN
I. Performa Income Statement
Unit selling price and cost analysis
Product of juice: Avocado, Papaya, Mango, Pineapple, Banana, Orange, etc.

A. selling price of each juice = 14 birr/glass

=14 birr/glass*100 glass/day*30day
=42,000 birr/month
Direct cost
Raw material (fruit) = 12 birr/kg*500kg/month=6000 birr/month
Labor =11 labor * 300 birr/month= 3300 birr/month
Sub-contractor = 4 birr*20 birr/day*10days=800 birr/ month
Transportation = 6000 birr/month
B .Total cost per unit = 16,100 birr/month
C. Unit Gross Profit = (A-B) = 25,900 birr/month
D. Gross Profit % (C/A) = 25,900/42000*100=61.67%
II. Cash Flows or Capital Requirement

The Amount of Requirement

Total Required Capital= birr 800,000

For three years twelve months of fixed expanses +Asset purchase + start-up expanse

Monthly fixed expanse

Salaries = 20,600

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Rent = 2,000

Marketing and advertising = 2,000

Supplies /Fruits = 6,000

Telephone = 500

Maintenance = 800

Miscellaneous = 1,200

Transportation = 6,000

Monthly fixed Expanses Sub-total=39,100*12= 469,200

For one year=469,200 Birr

For three year =469,200 *3 =1,407,600 Birr

Asset purchase

Equipment = 144,500

Furniture’s = 82,000

Decorating = 10,000

Beginning investment = 40,000

Asset purchases sub-total = 276,500 Birr

Start-up Expanse paid once

Licenses and per units = 2,000

Promotions and initial advertising = 2,000

Other = 1,000

Start-up Expense sub-total = 5,000Birr

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Product2 Fruit lunch /Fruit selling /kg

A. Selling price = 14birr/kg*30kg/day*30day=12600/month

Direct cost2

Fruit = 900kg/month*10birr=9,000/month

Labor = 0

Transportation = 2,000

B. Total cost per unit = 11,000

C. Unit Cross profit (A-B) = 1,600/month

D. Cross profit %(C/A)=1,600/12,600= 12.7%month

III. Break Event Analysis

Determination of contributions merging percent
CM=sales-variable expense
CM%=CM/sale
Unit sale price = birr 42,000 monthly fixed expense
Cost of goods sold
Juice/fruit = 6,000
Labor = 3,300
Transportation = 6,000
Other = 800
CM (42,000-6,000-3,300-6,000-800)
CM=25,900
CM%=25,900*100/42,000=61.67%
Fixed expense
Salaries = 20,600
Rent = 2,000
Advertising = 2,000

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Telephone = 500
Transport = 6,000
Maintenance = 800
Miscellaneous = 1,200
Supplies = 16,000
Total fixed Expense =49,100 Birr

Break Event (B/E) = Fixed expense/CM%

B/E=49,100/0.6167=79,617.32
Monthly B/E sales=79,617.32Birr

11 RESULT
The fruit and juice service is very important in Jimma University, which located in
Jimma Town, 353 km km south western of Addis Ababa. Around 800, 000 birr as
a capital will be require to start the business .The business is expected to be
profitable in that environmental gross profits 61.67%per month from the sale of
juices and 12.7 % per month from the sale of fruit/fruits purchase. The total sale
per month will assume to be 54,600 Ethiopian Birr.

12 SUMMARY

“Fresh fruit and juice service” is a special smoothie bar. Students and staffs will
experience a new way of drinking healthy drinks in Jimma University, campus. It
is located in Jimma city, 347.32 km km south western of Addis Ababa. We sell
the favored flavors like banana, mongo, papaya, strawberry, avocado, pineapple
and orange and mixes between its. It wills sale fruits and juices at the satisfactory
price. It will purchase fruit from local producers and suppliers as well as different
pair of the country where supply is high.

Around 800, 000 birr as a capital will be require to start the business .The business
is expected to be profitable in that environmental gross profits 61.67%per month

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from the sale of juices and 12.7 % per month from the sale of fruit/fruits purchase.
The total sale per month will assume to be 54,600 Ethiopian Birr. Our service
needs to engage in productions of quality and quantity fruit and juice that can make
us profitable by winning the other competitor business in marketing by processing
according to the need and interest of customers. Our business organization is partnership that
will operate and organize by twelve (12) students who will graduate near future from Jimma
University in 2020 G.C.

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