PROJECT LOCATION: OROMIA

FEASIBILT
REGION SHEGER CITY FURI SUB-
CITY FURI WOREDA Y STUDY

PROMOTOR: OLYAD BIRHANU ON

FAYE CONTRUC
TION
APP . 2025 MATERIAL
SHEGER CITY , ETHIOPIA

Contents Page no.

EXECUTIVE SUMMARY...............................................................................................................3

1. INDUSTRY OVERVIEW.........................................................................................................4

1.1 Objectives............................................................................................................................4

1.2 Mission.................................................................................................................................4

2.1 Start-up Summary................................................................................................................5

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 3.1 Product and Service Description..........................................................................................6

3.3 Competitive Comparison.....................................................................................................7

3.4 Future Business and Services...............................................................................................8

Market Analysis Summary............................................................................................................8

4.1.1 Market Trends...................................................................................................................9

4.2 Service Business Analysis.................................................................................................10

4.2.1 Competition and Buying Patterns...................................................................................10

4.2.2 Business Participants......................................................................................................11

5.1 Pricing Strategy..................................................................................................................11

5.1.1 Promotion Strategy.........................................................................................................11

5.2 Competitive Edge...............................................................................................................12

6. Sales Forecast..........................................................................................................................12

Income Statement............................................................................................................................17

Balance Sheet..................................................................................................................................18

[Link] Overview

Building material wholesale companies in basically engaging in trading and then

package and sell them to wholesale distributers or other Building materialrelated
business. They purchase Building Raw material inputs from wholesalers or directly
from growers.

The main fact that Building material wholesale provide goods that are considered
building steeples, the industry whileremain relevant in the years to come. The

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revenue and profit generated from this industry will depend on the price and
production of Building material. As companies vertically integrate and merge
operations to take advantage of economies of scale revenue will rise.

According to areport related by theBuilding material industry of which Construction

material wholesale production line of business is a part of is characterized by a low
level of market share concentration. The report 2021, the top three players are
expected to account for less than 43 percent revenue.

While the industry exhibits low concentration, the industry is expected to approach
moderate concentration over the next

Executive Summary

Olyad Birhanu Faye Was a starting business located in the Oromia region of
Sheger city Furi Sub-city Muda Furi Woreda . The company specializes in the
Supplies and of BuildingMaterial, specifically Cement Nail, Tin, Paint Etc.

The construction materials wholesale business, "Olyad Birhanu .," will supply
high-quality construction materials, including cement,nail, rebar, aggregates,
bricks, tiles, plumbing supplies, and electrical materials, to contractors,
builders, and retailers in Ethiopia. Driven by the country's rapid urbanization,
government infrastructure projects, and a booming housing sector, the
demand for construction materials in Ethiopia continues to rise. Our business
will capitalize on this market by providing a wide range of essential
construction materials, competitive pricing, and exceptional customer
service.

Werkinesh Tefera Will Wholesale a wide Range of Building Material and

Building Finished material at affordable prices from different brands and
manufacturers both form Ethiopian and other countries and around ofSheger
city Furi Sub-city Muda Furi Woreda area

Apart from retailing the goods and products of top brands in the industry, my
customer care is second to be known in the whole of Sheger city Furi Sub-city

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Furi Woreda and woredas around the town. I know that my I will go the extra
mile to get them satisfied when they visit store and also to become my loyal
customer’s member and ambassador

We recommend using LivePlan as the easiest way to create graphs for your
own business plan. This is the sole proprietorship business that is owned by
my legal Agent Werkinesh Tefera . I have well over 5 year of experience in
this Business industry

As we have tried to indicate our intension in the above subject, our company
Werkinesh Tefera Materials Whole Sale is legally established company with
valid trade license and our company intends to distribute your product in the
various cites and regions of the country. Wekinesh Tefera Construction
Materials Whole Sale is planning to engage in many more Business with a
great potential of young graduated Teams, highly skilled profile and good
working discipline in the region Oromia and throughout Ethiopia as per our
government job creation and development strategy. Werkinesh Tefera
Construction Materials Whole Sale is looking forward to be cement distributor
of cement , with many more mutual benefit

Therefore, we would like to request to give us authorization to distribute your

cement products. We would like to inform you that we commit ourselves to
distribute cement product with quality and maintaining our loyalty

Total Cost Estimates is 16,822,387 birr with fixed investment of 1,320,000

and bank loan of 15,000,000 birr from instution .

For the below given cost assumptions, IRR and Payback Period are 35% and 3
years and 8 months respectively. The most critical considerations or factors
for success of the project are:

 Most significant consideration(s)

 Working Capital required equivalent to initial two cycles

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 Selection of products/brands to be distributed

 Location of the Warehouse

 Target market/area

 Timely recovery of cash from wholesalers/retailers

 Capacity/space optimization

 Equally important factor(s)

 Fuel & maintenance costs of the vehicle

 On time delivery of orders

 Responsiveness towards market trends and consumption norms

 Negotiation and marketing Skill

1.1 Objectives

Wekinesh Tefera .is in the Building materials Wholesale trade store industry
and I ensure I will go all is a growth-oriented business. Its ten year goal is to
become a regional leader in Building material Sales, with store in the Sheger
city Furi Sub-city Furi Woreda and Environments area. With this in mind, the
objectives over the next three years for Wekinesh Building Material Trade are
the following:

 Achieve steady growth in sales revenues by year three.

 Achieve local market share (in the Sheger city Furi Sub-city Furi Woreda
area) of approximately 20% by year five.
 Expand product line to include authorized Construction material consumption
sales.

1.2 Mission

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The mission of ShemsuShafi .Building Material Trade is to provide high
quality, convenient and comprehensive Cement, Nail, Tin, paint and other
material preparing at a low cost. The most important aspect of our business is
trust. It is the goal of our firm to have 100% customer satisfaction in regards
to product, and time to completion, and discover new ways to exceed the
expectations of our customers while doing so at the lowest possible cost.

1.3 Keys to Success

In the Raw material preparation a company builds its client base one
customer at a time and mostly through established marketing practices. With
this in mind, the keys to success for ShemsuBuilding Material Trade are:

 High-quality work.
 Attention to professional appearances at all times.
 Knowledgeable Employees that are friendly, customer oriented, and will take
the time to explain to customers the intricate nature of our business and our
work.
 Maintaining a highly aggressive managerial oversight on costs to provide our
services at the lowest price.

Company Summary

Werkinesh Tefera Construction Materials Whole sale is a newly established

and incorporated in the business in the year 2025, as part of supplier Group
of Companies; laying a strong foundation for a diversified general
construction and supplies firm distinguished by integrity, quality, teamwork
and hands-on building and procurement experience

Olyad Birhanu Buildingis envisioned to be the low cost leader in

BuildingMaterialindustry Manufacturing Product for theSheger city Furi Sub-
city Furi Woreda area that will also be able to eventually provide Building

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material sales/servicing and raw Material sales, making it the local leader in
comprehensive construction material sales/services.

The company will be a sole proprietorship registered in the state of Oromia

region and owned by Mrs. Werkinesh [Link] initial facilities will contain a
sales area, repair room in the back of the shop, office space and storage for
parts and inventory.

2.1 Start-up Summary

The data obtained for the opening table comes from research done in the
Sheger city Furi Sub-city Furi Woreda area with other small raw material
warehouse who have started their own business, in addition to Mrs.
Werkinesh Tefera previous experience within thebusiness. Inflation has been
taken into account between the estimates of these fellow business owners
(and when they started) and the current prices for expensed items. Much of
the product to go into the facilities such as tools, are currently owned by Mrs
Werkinesh Tefera .

We recommend using LivePlan as the easiest way to create automatic

financials for your own business plan.

Business and Services

Werkinesh Tefera Building Material Trade offers a wide range of services as

outlined in the detailed sections below. It is ultimately the goal of the
company to offer a one-stop facility for all Building material Consumption
needs, including both sales and servicing. In this way the company can offer
greater perceived value for the customer than many other Storewhich only
offer sales or services.

The business is highly competitive with suppliers having a great deal of power
in setting and negotiating the prices of their products and services to selling

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store. In addition, because the customers see the service as undifferentiated
and a “commodity” with little value separation between competitors, buyer
power is also very high. Finally, the barriers to entry are moderately low, and
the large number of competitors in this field, including substitutes (such as
do-it-yourself work) means that the pricing for such sales is very competitive.
The only way to have an advantage in thisbusiness is a low cost leadership
principal applied aggressively or to create higher switching costs through the
building of strong business-to-customer ties. It is the aim of
shemsuShafiBuildingmaterial Trade tocreate a competitive advantage through
both the low cost strategy and by offering greater value through its broader
product and service line.

3.1 Product and Service Description

Werkinesh Tefera Building Material Trading provides a wide range of home

Building Consumption services. These include:

 Construction Material of home and home Building Tin and Cement.

 Selling and cleaning of Building consumptions.
 Sale of Cement Tin, Paint, Nail and MDFs.
 Authorized warranty servicing on all major Construction material
Consumption systems.
 Face to face contact and free transport and delivery.

Future products and services that ShemsuShafi Building material will prepare to
institute include Cement Tin, Paint, Nail and MDFs .Supplies and servicing,
sales of building Material

3.2 Sourcing

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Wekinesh Tefera Building material will be obtaining most of its parts through
established dealers and directly through the supplies of the relevant
Materials. As part of the wholesales low cost strategy, the merchandise will
seek to purchase parts in large quantities whenever possible to take
advantage of volume discounts. In addition, the company will aggressively
seek to procure its parts from local suppliers in order to start forming close
relations with such organizations. It is the ultimate aim of Werkinesh Tefera
to form strategic partnerships with such organizations in order to lower
overall costs of goods.

A large part of Werkinesh Tefera BuildingMaterialenhanced services will be free

transport and delivery of construction material to a person’s Building Site .

3.3 Competitive Comparison

The Buildingmaterialis highly competitive. Each organization within this field

has high labor costs, low margins, and a high intensity of competition.

Suppliers have a great deal of power in setting and negotiating the prices of
their products and services to Seles shops. This is due to the fact that the
suppliers who absorb the greatest amounts of cash from Seles shops are
large Building material supplies companies such as Sale of Cement Tin, Paint,
Nail and MDFs etc. These organization aremore consolidated than the trade
industry, have deeper pockets, an almost limitless number of substitute
customers, and finally they are the single most important supplier to the raw
food preparation organization. Therefore, these companies can set whatever
price they wish to. Furthermore, labor is the single most important expense in
this Organization, and salaries for such individuals are well known and not
very flexible.

3.4 Future Business and Services

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Future products and services that ShemsuShafi Building material will prepare
to institute include Cement Tin, Paint, Nail and MDFs Factory and servicing,
sales of new Building Finished material and /sale of Building material . Mr.
Shemsu also investigating the possibility of offering a new product line of
Building material cabinets at some future date.

Wekinesh Tefera Building material Trade will start implementing these new
products or services in the following time periods:

The capital investment needed for such expansion will primarily come from
the company’s accumulated operating cash account. It is anticipated that
some of these product/service expansions that require significant inventory,
such as new sales, may require additional cash inflow such as loans. The
organization will be preparing business plan for various lending institutions in
anticipation of this [Link] Request Bank [Link] Following Merchandise
Inventory ShemsuShafi Building material Proposal.

Presently the product that is really driving the preparation building finishing
material market is good activity. While ShemsuShafi not currently positioned
to take advantage of this situation, it is the long-term goal of
ShemsuShafiincorporateBuilding Material Supplies services within the company.
Once the firm is able to generate enough cash to retain the services of a
Building material Consumption supplies Seles , the organization only will
evaluate the viability of such a move. It is anticipated that this service will be
offered sometime after 3rdMarch 2015.

 MARKETING OBJECTIVES

An intensive campaign is already underway to market this company keeping

in mind that this is an emerging company in a very competitive field. We wish
to maintain an edge over our competitors. Familiarization and contact
establishment with most governme departments and as mentioned earlier,
private organizations and NGO's is already in motion and bearing positive

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results. It is our sincere hope that this company will continue growing to
greater heights at the same time satisfying our clients' needs. To achieve
these, we have set up the following goals: -

 Customer Focus - everything we do is driven by customer needs. We want to

be your indispensable partner for our principal and customers. We have a
passion for understanding and exceeding your expectations and we are
committed to providing superior products with the highest levels of quality
and excellence.

 Innovation - we welcome and push change; we constantly look for new

ideas, we are ready to make bold moves and decisions, and we encourage
our people to be entrepreneurial, to take some risks and to learn from our
mistakes. And we keep things simple and minimize bureaucracy.

 Valuing our People - We put the highest priority on developing and retaining
outstanding people. We enjoy what we do and we celebrate success. We
respect our people and practice open, honest and direct communication. We
behave in an ethical, professional and principled manner.

 Passion for Winning - This being a new Company we always want to be the
best and are determined to outperform and beat our competition. We are a
high energy, fast moving, decisive Company. We like action! We execute well
and deliver.

 Boundarylessness - We encourage our Staff to work collaboratively across

business units, hierarchy and functions. Our people are supportive of each
other and we seek partnership with customers, suppliers and contacts.

PERATIONS DIRECTOR OUR MISSION.

1. To deliver relevant, timely, and accurate services on Supplies by

maintaining an open approach that places the principal and customers at the

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centre of everything we do. 2. To foster a work environment with the
customer in mind, that encourages creative thinking, innovative solutions,
responsibility and accountability at every level. 3. To never lose sight of the
importance of the local market. But to make sure our customers benefit from
our international network of associated companies

Market Analysis Summary

There are approximately 3,500 households in the greater Sheger city Furi
Sub-city Furi Woreda area, which includes suburbs such as Green Valley, Ina,
and South Sheger city Furi Sub-city Furi Woreda . Virtually all of these
households have Cement, Tin Paint MDF’s etc. Sheger city Furi Sub-city Furi
Woreda Construction Material segments its market into product categories
that reflect the estimated number of each Building material Consumption
currently being used in the greater Sheger city Furi Sub-city Furi Woreda
area, since each of this Buildingmaterialmay fail at any time and require our
product. In addition the growth rate of each product emplaced in the home is
based on the current sales growth of each product. Presently, the fastest
growing product, in terms of sales, is the Cement . It is anticipated that the
Cement will replace the product the next three to five years as movie Whole
sales stores replace their existing with Cement. The largest segment is the
Store segment, since usually a household has more than one of these
systems. The wholesale will be focusing on selling all of these systems, and
not focusing on one over the other.

4.1 Market Segmentation

ShemsuShafisegmented the households in the Sheger city Furi Sub-city Furi

Woreda area as follows:

 Provide with Society.

 provide without Retailer

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  Retired people.
 Yang living in multi-unit housing.
 Single people living consumption.
 Single people living with Construction material consumption.

We recommend using LivePlan as the easiest way to create graphs for your
own business plan

4.1.1 Market Trends

The market demand for Building material consumption has been relatively
stable over the past decade. With the advent of Cement the market is seeing
more highly trained Seles Man needed. As technology progresses, long-term
planners within this market expect to see new opportunities for Building
Consumptionquickly arise. Such Inventory as cellular Cement
andotherBuilding Material products may have a role to play in the people who
have a broad vision in this field.

4.2 Service Business Analysis

Much of the Building Material analysis is contained in the competitive

comparison section. However, the key points are that the industry is highly
competitive and that most firms have little power to affect the forces that
influence them or to affect the price levels that the market determines. In
essence, ShemsuShafirates in a purely competitive environment where the
demand curve is horizontal. In other words the organization is discounts
tosalesConstructionmaterial maximum capacity without effecting the price or
demand for its services. With this type of environment and with customers
seeing such services as a “commodity” the only strategy open to companies
in this field is the low cost leadership approach.

The low cost leadership strategy will not be simple to achieve. Realistically
speaking, because of the fragmented nature of the wholesale, Sultan

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Construction materialwill only seek a low cost leadership in the South region
for the first seven to ten years of operations. In order to capture this position
and achieve its benefits of high market share and profitability, the company is
expected to have higher provided costs and lower profits within the first few
years as the company invests in better and more efficient facilities and
product than most competitors and engages in aggressive pricing to capture
market share. The organization will rigorously evaluate every aspect of the
company to improve efficiency and lower costs. Once in operation,
management will concentrate on developing established procedures that will
create the most effective sales experience. Finally, as part of this low cost
leadership strategy, the company plans to vertically integrate to include
original sales and broad services that will spread costs and serve all major
customer types so as to build volume.

4.2.1 Competition and Buying Patterns

Customers traditionally purchase services in this industry because of effective

advertising and reputation. The customers wish to be reassured that they will
receive prompt andreliable service and have an understanding service
representative will listen to their problems and seek to solve them in a fast
and professional manner. Therefore image during the entire service
experience is crucial to maintain word-of-mouth marketing and keep a low
corn rate. Currently the largest problem that faces small firms is
product/service awareness.

4.2.2 Business Participants

As stated before, the Buildingmaterialis highly deprivation . In fact, there are

so many small providers that any company in this industry is facing a purely
competitive environment. Approximately 2,900 Construction Material firms
exist in the country today. Firms within this field range in sizes from the
“mom and pop” outfits such as Cement andTinSeles in downtown Sheger city

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Furi Sub-city Furi Woreda to regional companies like yirgachefe supplying
and the national chains such asSheger city Furi Sub-city Furi Woreda City.
Not all of these organizations are purely sales outfits. In fact all of the larger
firms make the majority of their revenue in original sales. It is these
companies that have the largest market share and have the opportunity to
compete by differentiating on customer sales or product/sales range.

5.1 Pricing Strategy

Shemsu exists in a purely competitive environment where each firm must be

a price taker. In other words, the firm has no ability to affect the market price
of its services, regardless of how many Cement, Tin, Paint MDF’s it Seles. In
this case, therefore, marginal revenue (the revenue incurred by producing or
servicing one more unit) is equal to the price charged.

Furthermore, because the demand curve is essentially

horizontal,ShemsuShafiserviceRawmaterial at total capacity without effecting
the price.

What all of this means for the company is that the we must seek to
charge our clients at the market price (or lower). Research has shown that
the average price is approximately Birr755 per BuildingMaterial. As long as
marginal costs do not exceed revenues, the company’s method to maximize
short-run profits is to service the various home consumption at maximum
provided. This means that ShemsuShafiBuildingmaterialcan expect anshort–
termCement of approximately 94%.

5.1.1 Promotion Strategy

The company’s promotion strategy will take the form of only face to face
Approach, price discounts, andfree test fresh Construction Material. Cement
expects to spend a large amount on marketing in the first two years in order
to build up product awareness and sales value in the minds of our customers.

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5.2 Competitive Edge

Our purchase forecast

Item Year 1 Year 2
Descripti U/M Qua
on nt U.P Total Quant U.P Total
Quint 2283 1,19 27,185,809. 28,545.0 1,309.0
Cement al 9 0 84 0 0 37,365,405.00
1099 10,220,700.
Tin Piece 0 930 00 1090 1023 1,115,070.00
Packe 1,32 4,408,800.0
Nail t 3340 0 0 4009 1,320 5,291,880.00
Gallo
Paint n 435 475 206,625.00 5012 475 2,380,700.00
42,021,93 46,153,055.
Total Sum 5 00

Shemsu Shafi competitive edge lies in its ability to provide quality and fast
Construction material supplied at lower cost than any local small competitor.
This positioning of the organization provides protection against the power of
suppliers by creating more flexibility to cope with increasing costs. In
addition, this approach will provide returns even during economic downturns
and when other unforeseen problems arise

Sales Forecast

The sales forecast is based on the estimated number of construction material

theorganizationcould service that are currently emplaced in the homes in
Sheger city Furi Sub-city Furi Woreda . This is conservatively estimated at
about two million units. From that number it is assumed that approximately

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3% of all those will fail in any year. These two numbers multiplied together
give us yearly market demand for our sales. With an aggressive promotional
strategy, a 10% market sales is assumed by year three and multiplied by the
estimated market demand. This is then multiplied by the estimated price per
unit to arrive at the yearly sales figure assumed for year three (once the
wholesale marketing efforts have paid off). This number is then decreased by
a logical amount to estimate the first two years of [Link] recommend
using LivePlan as the easiest way to create table for your own business plan.

Our Salse forecast

Item Year 1 Year 2
Description U/M Quant U.P Total Quant U.P Total
Cement Quintal 22839 1,293.83 29,549,783.37 28,545.00 1423.21 40,625,529.45
Tin Piece 10990 1,010 11,099,900 1090 1072 1,168,480.00
Nail Packet 3340 1,430 4,776,200.00 4009 1490 5,973,410.00
Paint Gallon 435 515 224,025.00 5012 475 2,380,700.00
Total Sum 45,649,908.37 50,148,119.45

7.1 Personnel Plan

Shemsu Shafii nitial staffing will consist of Mrs Werkinesh Tefera General Manager , and two
part-time sales man trainees. Accounting, bookkeeping, and casher will be outsourced. The
organization intermediate goal is to have four full-time, fully trained Sales man at the original
facility, plus a full-time wholesale owners. However, management has decided to await future
developments before determining the best time to bring on such owner.

Financial PlanThe following sections outline the financial plan for Shemesu Shafi
BuildingMaterial

General Assumptions
Plan Month 1 2 3
Current profit Rate 10.00% 12.00% 15.00%
Long-term profit Rate 10.00% 15.00% 20.00%
Tax Rate 35.00% 35.00% 35.00%
Other 0 0 0

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I would need an estimate of bill 15,000,000 to successfully set up my construction material
store in Sheger city Furi Sub-city Furi Woreda but form this I will use saving account and I
will require 15,000,000 birr from interest free financing from CBE Sheger city Furi Sub-city
Furi Woreda District

Generating Funding For ShemsuShafi Construction Material Trade Shemsu Shafi

Construction material trade is private business that is solely owned and financed
byShemsushafi. they do not intend to welcome any external business partner which is why
he has decide to restrict the sourcing of the start –up capital major sources

These are the area I intend generating may start –up capital

 Generate part of the start –up capital from personal Saving

 Apply for interest free Financing from Commercial bank of Ethiopia Sheger
city Furi Sub-city Furi Woreda district

We recommend using Live Plan as the easiest way to create automatic financials for your
own business [Link] business the two year projected cash flow statements as follows

Werkinesh Tefera Building Material

Income Statement
For the Towelve Month June 30, 2024-25
Revenues Year 2024 Year 2025
Salse Revenue 45,649,908.37 50,148,119.45

Total Revenues 45,649,908.37 50,148,119.45

Cost of Sales
0
Add Purchase 42,021,934.84 46,153,055.00
Total Cost of Sales 42,021,934.84 46,153,055.00
Gross Profit 3,627,973.53 3,995,064.45
Expense
Waerhouse Rent Expense 394,419.5 408,123.00

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 2
338,000.0
Loading Unloading Expense 0 513,450.00
608,263.0
Transport Expense 0 623,457.00
4,325.0
Utility Expense 0 8,765.00
5,220.7
Feul Expense 0 7,654.00
435,058.4 555,058.4
Dep Epense Automobile 0 0
156,600.0 156,600.0
Dep Expense Building 0 0

Total Expenses 1,941,886.62 2,273,107.40

Net Income Befor Tax 1,686,086.91 1,721,957.05

Provision Profit Tax
572,130.42 584,684.97

Net Income After Tax 1,113,956.49 1,137,272.08

Werkinesh Tefera Building Material

Balance Sheet
June 30,2025-2026
ASSETS
June
Current Assets 30,2025 June 30,2026
415,044.9
CASH ON HAND 6 402,145.00
1,220,329.4
Inventory 9 992,666.75
1,635,374
Total Current Assets .45 1,394,811.75

Property and Equipment

Building 3,132,000.00 3,132,000.00
Acc Dep building (156,600.00) (313,200.00)
Aotomobil 2,175,292.00 2,775,292.00
Accumulated Depe Automobil (435,058.40) (555,058.40)

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 Total Property and 4,715,633
Equipment .60 5,039,033.60
Other Assets

Total Other Assets

6,351,008
Total Assets .05 6,433,845.35

LIABILITIES AND CAPITAL

Current Liabilities

Profit Tax Payable 572,130.42 584,684.97

Total Current Liabilities 572,130.42 584,684.97

Long-Term Liabilities
Bank Loan
Total Long-Term Liabilities -

572,130
Total Liabilities .42 584,684.97
Capital
BEGGNING EQUITY 3,355,585.11 3,355,585.11
Retained Earninigs 737,205.61 771,618.22

Net Income 1,686,086.91 1,721,957.05

Total Capital 5,778,877.63 5,849,160.38

6,351,008
Total Liabilities & Capital .05 6,433,845.35

Werkinesh Tefera Building Material

Statement of Cash Flow
For the Towelve Month June 30, 2024-25
Income June 30,2025 June 30,2026
Sales 45,649,908.37 50,148,119.45
other income 0 0
Total Cash inflow 45,649,908.37 50,148,119.45
Cash Outflow 0 0

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 Purchase 42,021,934.84 46,153,055.00
1,941,886.6 2,273,107.4
Expense 2 0
Total Cash outflow 43,963,821.46 48,426,162.40
(591,658.4 (711,658.4
Less Deperciation Expense 0) 0)
2,277,745.3 2,433,615.4
Nate Cash Flow 1 5
8.1 Break-even Analysis

The wholesale break-even analysis is based on an average

company’s running costs within this organization, including
payroll, and its fixed costs for such things as rent, utilities, etc. As
ShemsuShafi Building operates as a job-wholesale, with each task
unique, customized sales, it is difficult to estimate revenue per
unit and goods costs. The reader must understand that there is
a high degree of variance within these estimates.

The reader will also note that the organization is not expected to
reach its break-even point until the last three months of sales of
the first year.

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