Prepared By:-: Business Plan
Prepared By:-: Business Plan
Prepared By:-: Business Plan
Business Plan
:
Owner Family Business
Hx
Hy
Dc
Yo
T
Prepared by:-
November, 2020
Dire Dawa, Ethiopia
SIKET MOBILE AND ACCESSORY RETAIL TRADE
Executive Summary
SIKET MOBILE AND ACCESSORY RETAIL TRADEis a convertible and accessible, new business
with a service after resale to helping people use a new technology mobile in essay ways with a
fair price. The business is formed as a micro enterprise to resale.
Place: Dire Dawa
Kebele: Sabian
Telephone: 09
P. O. Box: 0390
E-mail:
It is owned by seven business initiative engagements that were organized in micro enterprise so as
to pledge their time, labour, and financial resource so as to create income for them. The seven
(six men and one women) will operate the business and that relevanttraining will give to
technician and others are already profession in their position. It is expected that the business will
start its operation in the year December 10/01/2020
Owner of Siket Mobile and Accessory Retail Trade
No Position Qualifications Contribution position
1 BA degree 15,000 General Manager
2 BA degree 15,000 Seller
3 BA degree 15,000 Technical Supervisor
4 BA degree 15,000 Administrative & finance
Manager
5 BA degree 15,000 Accountant
6 BA degree 15,000 Technical Supervisor
Start-up capital:
Investment = Birr
Working capital = Birr
Total = Birr 200,000
From the total funding Birr 200,000 the owners of the enterprisebusiness contributed Birr
105,000 and the remaining Birr 95,000 will be expected to be obtained from Dire Micro
Finance as loan
1. The Future
1.1 Vision Statement
‘’Being a Leader mobile &accessory available and provide service after sale in Dire Dawa’’
1.2 Mission Statement
Sale quality Mobile and Accessory service for the resalable at an affordable price
1.3 OBJECTIVES SIKET MOBILE AND ACCESSORY RETAIL TRADE
The business has the following basic goals in the coming twelve months of a year.
Generating ... amount of profit on average each month
Having .............market share
2. Business Idea and Market
The competition in this arena of Dire Dawa is the Competent rather than all other areas. Dire
Dawa is a large city, also has a lot to offer. Usually there are a minimum of four of the same
market Segment center within Dire Dawa(Ashaw, Thione, Konel and Sabian). Our main
competitors in this segment are two competitors in Sabian. In order to compete with these
established firms our business will use product/service differentiation and cost leadership
strategy. Because these firms produce and supply almost similar products/services with high
price but our firm already designed product and service ranges unique from its competitors and
render them relatively at low price.
3. Marketing Plan
3.1Product Plan
The table below shows only group of product or items sale and service delivered by the business.
The detail sale and service of the business are listed under price plan part of this business plan.
Product/Service
No Specification
Range
3.2Price Plan
The table following shows product or service range of the business, customers’ ability to pay,
competitors’ price, our business price, reasons for setting our price and margin for discount.
No Product/Service How much Competitors’ price Our Reasons for Margin for
are price setting our discount?
price
customers H A L
willing
to pay?
I Mobile Average
2 Cover >> 70 65 60 50
3 Glass >> 70 65 60 50
3 Charger >> 80 75 70 60
5 Maintenance >> 70 65 60 55
From the total funding Birr 200,000the owners of the Enterprise business contributed Birr
105,000and the remaining Birr 95,000will be expected to obtain from Dire Micro Finance on
Loan with twelve’s interest rate.
8. Business Organization and Staff
Staff Requirement
No Position No Qualification Tasks & Responsibilities in the business
required
6 Seller 1
General
Manager
Admin.&
Purchaser Technical
Human
Sale and Accountant supporter
resource
coordinator Staff Costs Mgt
s/n Position Qualifications Salary per Total staff
month cost
1 HinsneBegna Ba degree 1,500 1,500
2 Helen Dereje Ba degree 1,500 1,500
3 DagimTaye Ba degree 1,500 1,500
4 YonasMulugeta Ba degree 1,500 1,500
6 TeshomeAdene Ba degree 1,500 1,500
7 AschalwKetema Ba degree 1,500 1,500
9. Business Operation and Cost Plan
Monthly Sales Plan and service fee
Months of the Year
Products 1st quarter 2st quarter 3st quarter 4st quarter
No
Total
1 2 3 4 5 6 7 8 9 10 11 12
Q 5 8 10 14 17 20 25 28 30 40 45 50 292
Mobile
1 S/U 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200
Highest price
TS 16,000 25,600 32,000 44,800 54,400 64,000 80,000 89,600 96,000 128,000 144,000 160,000 934,400
Q 6 9 12 16 20 24 28 30 36 40 50 60 331
Middle price P/U 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600
TO 9,600 14,400 19,200 25,600 32,000 38,400 44,800 48,000 57,600 64,000 80,000 96,000 529,600
Lower price P/U 480 480 480 480 480 480 480 480 480 480 480 480
TO 4,800 12,000 14,400 16,800 24,000 28,800 31,200 40,800 43,200 48,000 62,400 72,000 398,400
TO 400 750 1,000 1,250 1,750 2000 2,500 2,750 3,000 3,500 4,250 5,000 28,150
Q 15 25 30 40 50 60 75 85 90 110 130 150 860
4 Charger P/U 60 60 60 60 60 60 60 60 60 60 60 60
TO 900 1,500 1,800 2,400 3,000 3,600 4,500 5,100 5,400 6,600 7,800 9,000 51,600
Q 16 30 40 60 70 80 100 110 120 140 160 200 1,126
5 Memory P/U 110 110 110 110 110 110 110 110 110 110 110 110
TO 1,760 3,300 4,400 6,600 7,700 8,800 11,000 12,100 13,200 15,400 17,600 22,000 123,860
Q 8 15 20 25 35 40 50 55 60 70 85 100 563
6 Earphone P/U 50 50 50 50 50 50 50 50 50 50 50 50
TO 400 750 1,000 1,250 1,750 2000 2,500 2,750 3,000 3,500 4,250 5,000 28,150
All products TO 34,660 59,800 75,800 101,700 128,100 151,600 181,500 206,600 227,400 276,000 328,300 379,000 2,150,460
Q 110 115 150 160 160 180 185 200 200 240 260 280
OTHERS OR
FROM SIDE P/U 55 55 55 55 55 55 55 55 55 55 55 55
SERVICE
TO 6,050 6,325 8,250 8,800 8,800 9,900 10,175 11,000 11,000 13,200 14,300 15,400 123,200
40,710
66,125 84,050 110,500 136,900 161,500 191,675 217,600 238,400 289,200 342,600 394,400
TOTAL REVENEUS
2,273,660
Monthly Operational Cost Plan
Months of the Year
No
Products/Service 1 2 3 4 5 6 7 8 9 10 11 12 Total
Q 6 10 12 17 20 24 30 34 36 48 54 60 351
1 Highest price MC/U 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600
MC 15,600 26,000 31,200 44,200 52,000 62,400 78,000 88,400 93,600 124,800 140,400 156,000 912,600
Q 7 11 14 19 24 29 34 36 43 48 60 72 397
Middle price MC/U 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100
MC 7,700 12,100 15,400 20,900 26,400 31,900 36,900 34,600 37,300 42,800 56,000 69,200 386,700
Lower price MC/U 370 370 370 370 370 370 370 370 370 370 370 370
MC 4,440 11,100 13,320 15,540 22,200 26,640 28,860 37,740 39,960 44,400 57,720 66,600 368,520
Cover MC/U 25 25 25 25 25 25 25 25 25 25 25 25
MC 600 900 1,200 1,800 2,100 2,400 3,000 3,300 3,600 4,200 4,850 6,000 33,950
Glass MC/U 25 25 25 25 25 25 25 25 25 25 25 25
MC 250 450 600 750 1,050 1,200 1,500 1,650 1,800 2,100 2,550 3,000 16,900
Charger MC/U 30 30 30 30 30 30 30 30 30 30 30 30
MC 540 900 1,080 1,440 1,800 2,160 2,700 3,060 3,240 3,960 4,680 5,400 30,960
MC/U 100 100 100 100 100 100 100 100 100 100 100 100
MC 1,900 3,600 4,800 7,200 8,400 9,600 12,000 13,200 14,400 16,800 19,200 24,000 135,100
6 Earphone MC/U 40 40 40 40 40 40 40 40 40 40 40 40
MC 400 720 960 1,200 1,680 1,920 2,400 2,640 2,880 3,360 4,080 4,800 22,960
TOTAL MATERIAL COST 31,430 55,770 68,560 93,030 115,630 138,220 165,360 184,590 196,780 242,420 289,480 335,000 1,907,690
Rent expenses 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
Salary expenses 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 126,000
Operating expenses 2,183.5 2,183.5 2,183.50 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 26,202
Miscellaneous expenses 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Interest on Loan 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 11,400
Total expenses 51,114 75,454 88,244 112,714 135,314 157,904 185,044 204,274 216,464 262,104 309,164 354,684 2,143,892
Staff salary 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500
expense
Operating 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50
expenses
Loan repayment 10,556 10,556 10,556 10,556 10,556 10,556 10,556 10,556 10,556
Interest bear 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267
Miscellaneous 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
expenses
Tax 3,710 3,710 3,710 3,710 3,710 3,710 3,710 3,710 3,710
II. Total Cash 33,310 51,114 75,454 82,843 112,713 135,313 157,904 185,044 204,274 216,464 262,104 309,164 354,684
Payments
End cash 166,690 156,286 146,957 148,164 145,950 147,537 151,134 157,766 171,093 193,030 220,135 253,572 293,289
balance
SIKETMOBILE AND ACCESSORY RETAIL TRADE
Projected Income Statement
For the Year Ended Dec 31, 2021
Sales Sales
Sales.......................................................... 2,150,460
Cost of goods sold
Beginning inventory..........................................................0
+Purchasing.................................................................1,907,690
Cost available for sale..........................................................1,907,690
-Ending inventory.........................................................614,542.5
Cost of goods sold..........................................................1,293,147.5
Gross Profit............................................................................................ 857,312.5
Expenses
Salaries......................................................126,000
Rent.........................................................72,000
Interest on loan........................................11,400
Electric utility..........................................2,400
Transport....................................................6,000
Depreciation.............................................6,876
Total liaabilities....................................................95,000
Owners’ Equity.......................................105,000
=5,915,915,660
2148,960
Break Even Point=2,750
Information about Funding Sources
Loan
The loan will be taken from Diree Micro finance based on inters bear loan with twelve present
interest and pay back within a year. The repayments schedule is shown in the following table.
Debt Service
Repayment 1 2 3 4 5 6 7 8 9 10 11 12
Period
PRINCIPAL 10,55 10,55 10,55 10,55 10,55 10,55 10,556 10,55 10,556
6 6 6 6 6 6 6
Interest 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267
Repayment of 11,82 11,82 11,82 11,82 11,82 11,82 11,823 11,82 11,823
Sum 3 3 3 3 3 3 3