Business Plan

Name:-Bekele Taso Tefera

Telephone no.09-10-73-93-47/0919650297
Email Address:[email protected]

Business name:-Bekele Taso Wholesale Trade and Supply of

all cooking oil

Date 04/05/2013
Executive Summary
Bekele Taso Wholesale Trade and Supply of all Cooking oil was established entirely in Oromia
Region, Burayu City in 2014 E.C by the owner, Bekele Taso. Before establishing this company, I
am the owner of General contractor Level five, the founder of Bright engineering and Business
S.C and the owner of AU.T.Tekom Customers cooperative in Ambo University. Right now as
short plan by expanding my business, I want to supply /provide/ quality based all Cooking oil,
with reasonable price based on the customers need from Domestic industries and foreign
importers to customers. As a Medium term plan, I will import from abroad and as long plan own
produce and supply for all Ethiopians. As the market assessment shows that, there are some
competitors in supplying of Cooking Oil for the customers in Burayu City before this company
established. Their supplying system is they buy all products from Merkato and sale to customers
one by one. But, I am the good supplier of all cooking oil in mass and their substitutes in high
quality, fair price, enough quantity and fastest service for the potentials customers, and
additionally, I sell to customers by creating network through the whole country. The objective of
the company is to generate income and creating employment opportunity for citizen. The source
of fund required for the project will be two main sources. One from own source 1,500,000 ETB
and second from Bank Loan 10,000,000.00ETB totally 11500, 000.00ETB is needed for project.
The projected profit and loss statement forecasted for 3 years shows that the accumulate cash
balance of the business will be birr 4,003,915.68 ETB in the first year, and 4,755,226.78ETB
birr in the second year, birr 5,796,526.0ETB in the third year projection period implying that the
business will not face liquidity constraint to finance its operational cost and meeting its debt
obligation. Accordingly it is planned that the total amount of principal loan with its lending rate
will be repaid within three years with repayment interval of three months. The Repayment ability
of the firm is in best position to repay the loan amount within a given period of time. Because of
the demand for the product is high in local market. Therefore, this project is profitable.

1. My Business and Objectives

1.1 Brief describe of my business
1.1.1 Company name
 Bekele Taso Wholesale Trade and Supply of all Cooking oil project.
1.1.2 Ownership type
Sole proprietorship
1.1.3 Owners name
 Bekele Taso
Year founded 2022 G.C/2014 E.C
1.1.4 Business Location
Oromia, Burayu, Gefersa Guje Kebele at Kella Junction
1.1.5 Product or Service Description
a. Product name
Wholesale and Supply of all Cooking oil
b. Target Market

It will be targeted for each of the Cities of the country and the surrounding/rural area
residential, and others groups.
The target group will be targeted by offering a quick, convenient service.
c. The Product Description
Sesame seed oil, soya bean oil, sunflower seed oil, groundnut seed oil, Palm Oil and Its
substitute Butter
1.2 Objectives
Short term (current year): I want to supply /provide/ and sales quality based all Cooking
oil, with reasonable price based on the customers need from Domestic industries and foreign
importers to customers
Medium term (next 1 – 2 years):
As a long plan, I will import by myself from abroad and sale to the customers
Long term (3 years and beyond):
To produce cooking oil by own and supply for all Ethiopians.
Additionally, expanding my General Contractor and to be a competitor in the east Africa.
2. Start Up Loan:
To achieve the objective, total money required at startup period is at least 11,500, 000ETB
(Eleven million and five hundred thousand birr). This can be outsourced from Owners, equity
and bank loan.
a. Owners’ equity
 1,500,000ETB/birr
b. Total loan required
 10,000,000ETB/birr
Purpose of the loans for my Business is:-
 It helps in meeting working capital requirements and expanding the business.
 it helps me in maintaining the cash flow during difficult times
 to increase my inventory,
 to recruit and hire new talented employees,
 to improve my business cash flows,
 to moves my business to a new location and also in the changing my economic
climate
2.1 My skills and experience
2.1.1 My Skill
I am full skilled person in all direction that means I am graduated in Civil Engineering from
ASTU my fist degree and Master degree from Jima University. I am certified from short period
and long period training including Shagar Entrepreneurial ship.
2.1.2 Experience.
I have more experience in deferent work from different company and from my own work. Before
establishing this company:-
 I am the owner of General contractor of Level five
 The founder of Bright engineering and Business S.C and the secretory of the company
 The owner of AU.T.Tekom Customers cooperative in Ambo University. In that Company I
was success. Right now I want to expand my business on Supply and trade all Cooking Oil
2.1.3 Employees
In those three companies, at least we have 45 active employees right now.
Transferable skills and talents I have gained from Shagar Entrepreneurial ship are relevant to my
business. I can manage my business, I can produce the profit and transform from small business
to large business and finally I can success.
2.1.4 Any Gap
In my before business, there are some gaps, in case of managing, creating network, persistence
and on risk taking. Now after am trained from Shagar, I can improve all.
3. Target customers
The target of customer are merchants in the country, University, Unions, Colleges, , individual
persons , private and governmental associations which can need the cooking oil in the country..
The target group will be targeted by offering a quick, convenient, service. Because` they usually
require fast services and quick turnaround times.
3.1 expanding Business
To supply easily to the customers, I open the store in different location, example in Finfinnee
City around Koye feche, Ambo Town, Adama City in the short plan. In the medium plan in most
of Oromia Cities in which potential of the customers will be high.
3.2 Demands of the product
There is the high demand as a country. But, there is no enough supply
3.4 Price /Cost
The service provided in fair and affordable price with high quality and fast services to customers.
4. Market and competition
Before, the business started, the assessment is done on market to identify the demands,
competitors, location and feasibility of the market area.
4.1 competitors
As study shows that there are some competitors. Thus:-
1. Abraham bayisa wholesale of oil and sugar located in Oromia Region, Burayu City, specific
area near to kela junction.
 His price is not fair, and similar to others’ shops prices in the surrounding.
 His strength: - he has many customers.
 His weakness:- he cannot supply directly from importer /from domestic industry.
2. Ararso Degebas goods and oil shop found in Oromia Region, Burayu City specifically
around Kela on the road to Addis Ababa Technology University
 His price is not fair, and similar to others’ shops prices in the surrounding.
 His price is not fair, and similar to others’ shops prices in the surrounding.
 His strength: - he has many customers.
 His weakness: - he cannot supply directly from importer /from domestic industry.
3. All other competitors locations found in Oromia Region, Burayu City and their supply
and sales stores are located in Residential that means it is no more visible to customers.
 Their price is not fair.
 Their weakness:- they buy from local supplier.
4.2 My Business is different from my competitors
My prices is fair, affordable
My strength: I supply from importer/ domestic industry, I create network to university,
collage, Individual merchants, private and governmental association.
5. Sales and marketing plans
5.1 Pricing and Cost per unit

Product Unit Purchase Transport cost Package Other Profit Price per
Name unit price price unit cost Cost margin unit
1.sesame Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
seed oil lit
2.soya bean Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
oil lit
3.sunflower Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
seed oil lit
4.groundnut Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
seed oil lit
Lit 90 0.5birr/lit 1800birr/20lit 0.20brr/ 19.3 110
1. Palm oil lit
 Purchase and Sales for-cost for the year 2015 EC
Purchase Schedule for the year 2015 E.C
for All Cooking Oil Purchase

Sales Schedule for the year 2015E.C

For all Cooking Oil Sales schedules

a. Year one sales profit

1. Total sales of end of year one =15,200,000.00 ETB
2. Total profit of end of year one=4,003,915.68 ETB
3. Employment Opportunity=5 person
b. Year 3 sales Profit
1. Total sales of end of year 3 =18,960,000.00 ETB/ birr
Total profit of end of year3= 5,796,526.02 ETB/birr
2. Employment Opportunity=10persons
5.2 Promotion
 Merchandise plan
Main supplier Address
1) Mojo Oil factory Location Mojo, Ethiopia
2) Adama Oil factory Location Adama, Oromia region
3) Mohamed Umar Location Addis Ababa
4) GMT INDUSTRIAL PLC Location Addis Ababa
5) GUDER AGRO INDUSTY PLC Location Addis Ababa
5.3 Man Power

For the next 12 month the number of employees will be 10 persons

Quality control mechanism

1. Financial Outlook
c. Total money required
 11,500,000ETB
d. Owners’ equity
 1,500,000ETB/birr
e. Total loan required
 10,000,000ETB/birr
2. Purpose of Loan
Purpose of the loans for my Business is:-
 It helps in meeting working capital requirements and expanding the business.
 it helps me in maintaining the cash flow during difficult times
 to increase my inventory,
 to recruit and hire new talented employees,
 to improve my business cash flows,
 to moves my business to a new location and also in the changing my economic
climate

4. Loan repayment schedule

Accordingly it is planned that the total amount of principal loan with its lending rate will be
repaid within three years with repayment interval of three months.
5. Future Plan
a. Concept of future plan
Bekele Taso Wholesale Trade and Supply of all Cooking oil future plan concept:-
 To maximize the value proposition, and to that, need to maximize the talents of owner
 To import all cooking oil from abroad and supply to customers
 To expand my General Constructor level five to General Constructor grade one in a
country
6 Products/ Service
2. Product or service list

 sesame seed oil,

 soya bean oil,
 sunflower seed oil
 groundnut seed oil
 Palm Oil
 Its substitute Butter

a. Unique features of the products or services

My unique features create network all over the country (location of customers such as unions,
shops, Universities, Hotels, Collages, Small social cooperation) supply door to door services

3. Input Used
5 Labor forces, one store, one shop, one car. Financial (capital), motivation and management,
advertisement
4. Product process
To assessing the requirement, identify Source of all cooking oil, purchasing, transporting,
storing and supply
5. Key competitors
a. Key competitor’s name

1. Abraham bayisa wholesale of oil and sugar

2. Ararso Degebas goods and oil shop

b. Key competitors location

1. Abraham bayisa wholesale of oil and sugar located in Oromia Region, Burayu City, specific
area near to kela junction.
2. Ararso Degebas goods and oil shop found in Oromia Region, Burayu City specifically
around Kela on the road to Addis Ababa technology University
3. All other competitors locations found in Oromia Region, Burayu City and their supply and
sales stores are located in Residential that means it is no more visible to customers.
c. Key competitors’ products

 Most of my competitors’ products are small quantity of , cooking oil

d. Key competitors’ prices

 Most of my competitor’s cooking oil supply and sales were most expensive or highest
cost offering on each item
 Most of the time they sell in black market by hiding from the customers in normal
season
e. Key competitors features
 They sell in high price
 Most of them have no license (trade permission)
 The scarcity is occurred in the shop in some season
 They not sell door to door system
 Their strengths is hardworking
 Their culture is doing what the others do
f. Key competitors delivery methods
Most of the competitor’s delivery methods are:-
 Lack of employee capacity
 Poor planning and management system
 They have no door to door services system
 Poor network forming
g. Key competitors promotion
 They have advertising board (tapela)
 There is some effective communication on their brand
 Some of them were advertise their business by business card, by brushers
h. Key competitors credit policy
  They have no credit payment terms
 Not thanking for payment
 Not using the right tools,
 They have no financial statement system in their shop
Your plan compared to competitors

1. Plan against to key competitors location

 Bekele Taso Wholesale Trade and Supply of all Cooking oil located Oromia region,
Burayu City specific area kella junction on the side of main road which visible to all
customers

2. Plan against to key competitors’ products

Bekele Taso Wholesale Trade and Supply of all Cooking oil products includes:-sesame seed oil,
soya bean oil, sunflower seed oil ,groundnut seed oil, palm oil and Its substitute Butter

3. Plan against to key competitors’ prices

Bekele Taso Wholesale Trade and Supply of all Cooking oil price is affordable, lowest price
offerings and high quality to increase the business demand for customers.
4. Plan against to key competitors features
Bekele Taso Wholesale Trade and Supply of all Cooking oil have been planned against
competitor’s features as the following:-
 I have license (trade permission)
 Sufficient human resource policy
 Good planning and management system
 Creating door to door services system
 Always searching for innovative product and services
5. Plan against key competitor’s promotion
 Media advertisement , Phone advertisement ,
 On line (telegram, website, Facebook.) advertisement ,
 Encourage the use of word of mouth publicity from loyal customers
 I will advertise my production services and stores on my official websites and etc.
6. Plan against to key competitors credit policy
The company plan credits is based on the following criteria:-
 Customers those reliable for company the company prepare credit cards and personal
checks, early payment discounts and late payment fees.
 To pay on time, the customers should sign physically and digitally
 Send invoices immediately after delivering the products
 The company gives thanks for customers when they pays on the time
 The company will extend credit to customers if they meet its threshold criteria for the
granting of credit

7. Plan against to key competitors delivers method

 Follow both door to door service and sale onsite system
 Offering multiple pricing packages based on size, numbers, weight and delivery speed
will give customers option to choose from.
 Give insurance
 Managing delivery cost
 Keep the package delivery prices as per the industry standards
Pricing and Cost per unit

Product Unit Purchase Transport cost Package Other Profit Price per
Name unit price price unit cost Cost margin unit
1.sesame Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
seed oil lit
2.soya bean Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
oil lit
3.sunflower Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
seed oil lit
4.groundnut Lit 100 0.5birr/lit 2000birr/20lit 0.20brr/ 19.3 120
seed oil lit
Lit 90 0.5birr/lit 1800birr/20lit 0.20brr/ 19.3 110
6. Palm oil lit

Product Name Qty(Q) Price(P) Q*P Annual Sales/12 months

1.sesame seed oil 1666.67/month 120 200000 2400000

2.soya bean oil 1666.67/month 120 200000 2400000
3.sunflower seed oil 25000.00/month 120 300000 3600000
4.groundnut seed oil 1666.67/month 120 200000 2400000
5.palm oil 3333.34/month 110 366667 4400000
Total 15,176,666.655ETB

Merchandise plan
Main supplier Address
6) Mojo Oil factory Location Mojo, Ethiopia
7) Adama Oil factory Location Adama, Oromia region
8) Mohamed Umar Location Addis Ababa
9) GMT INDUSTRIAL PLC Location Addis Ababa
10) GUDER AGRO INDUSTY PLC Location Addis Ababa
Permanent employee’s Temporary employees
3 2
Quality control mechanism

Control mechanism of Planning, managing, controlling, supervising, evaluating and taking

remedial measure as soon as problem happened.
Backup plan if main supplier fails to supply
I increase number of main supplier, to minimize the risk of supplying the product
As second option I import my self
Third option I produce locally from local ingredients such groundnut, sunflower
If not impossible again, I can change project to the construction industry, because of I have
general contractor grade five to increase capacity of my company