1.

Introduction

The company shall be established as aprivate limited company in Bedesa . The

enterprenurs of the business have rich experience about soap reproduction in which will
significantly contribute to the succes full establishment and operation of the business. The
partner shall carefully monitoring and adjusting the business products prices and change
made on weekly ,monthly or yearly and use differnet promotional strategy.
Executive summery

Soap Production Company shall be established as a private limited company in Bedesa.

By apartners Gizaw Belachew the type of business is merchandise.The capital required to start
the business shall be acquired through bank loan, families and partner .The starting capital for
investment and working capital is 600,000.

The Soap reproduction shall to sale high quality of soap; compost of fertilizer have a capital
of a 400.000Birr with operation cost of 200.000 . The competitors have no high quality products
strong business network. The primary product of the business will be Soap. The size of the
business will be medium at the beginning but certain year when it gets more profit the size will
be large size. The business operation shall require some personnel and machinery.

The entrepreneurs of the business have rich experience about Soap reproduction in which will
significantly contribute to the success full establishment and operation of the business .The
partner shall carefully monitoring and adjusting the business products prices and change made on
a weekly, monthly or yearly and use different promotional strategy.

Easy available, convenient of the customer and affordable price makes the store popularity in
that area. The business form is general partnership.

The company distribute the product to all target market to satisfy increase the customers and
the quality of the product through direct and indirect means. The customer of the business is
Soap campany, agriculture and retailer because this business activity needs high quality soap and
compost fertilizer.

1. 1 Name and address of the company.

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The name of the company named as abroad ODA BULTUM SOAP Reproduction Company.
Around Bedesa

Legalform: - general partnership

Contact address: Bedesa

Type of business: merchandise

1. Statement of financial requirement (startup- capital)

the business will be statement with the saturated with the capital of 6000,000 and 4000,000 birr
use for investment as land equipment and marchandis and 2000,000birr used for working capital
employees operation cost.

1.1 Source of capital

From the total capital of 600,000 the capital of business contribute from(partner, 200,000),
(family loan, 150,000) and (bank loan ,250,000). From this 33.3% is equity, 66.7% from debt.

2. Company summery
2.1 Mission

The mission of the business plans is producing quality soap and satisfies the customer’s needs
and wants in return getting reasonable profit.

2.2 Back ground of the enterprisers

The partners have enough knowledge which helps them to operate the reproduction system
easily. They also have experience on how to mobile and operate the business mainly with the
adjustment of their marketing source giver though they can easily identify the competitor and

\]have the ability to win the market with successful profits and the partners were degree
qualification.

2.3 Start up summery

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 Advertising
manager

Purchasing
manager
The business plan started january 29/2014 E.C and partner will start the operation in September
10-2015E.C and will create job opportunity to the society.

2.4 Type of business

The type of business is merchandise activity.

3. Organizational structures

Sale manager

Secretary Accountant

Price Seller
Marketing
receiver
manager

Price bargainer Inventory ship

3.1 roles and responsibility
General Manager
 General Manager: - oversea the general operation of the company and personnel’s
 Sales manager: - oversees the selling activates of merchandiser he can see the proper
destruction of merchandise in each centers over see the bargaining of prices with
customers.
 Advertising managers: - contacts the advertising process. he cheek whether the
company advertised prosperity with proper method or not
 marketing manager:- rails the marketing plans of the company and searching
information which makes the company power full competitors
 purchasing manager:- supervise how mach quantity is returned to purchase, what price
should and unease, what type of merchandise purchase
 secretary:- the one write any document like receipt check to any individual
 Accountant :- the one who prepare financial statement

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  Seller:- sells the product of accompany in relation to sale manager
 price bargainer:- The one pay the price to the order
 Inventory ships:- Ships the product order come from the purchasing manager
4. Description of business
4.1 products

The products of our company should be

1. soap product
2. soap fertilizer
3. usage of soap for fertileness by compost means

In addition to these the companies produce new soap type depends on quality and sell anew soap
for the society which needs them for another popularly farming. The company has a great of
increases there production of soaps in the future, this plan should be not only the plan for our
company but, also for other, since improving the capacity of production from day to day time by
doing each and every actives according to the session effectively is the first issue for every
business office. So, in the future our productions capacity will be impounded we will able to get
potential customers and retailers who sells our products for their own profit

4.2 Customer of the business

The product of the business are soap production and compost fertilizer and the potential
customer is soap production campany and the other is retailer and whole seller .

5. marketing plan place

5.1 location of the business

The poultry forming where the soap type (keeping them for the purpose of producing more of
them) and processing takes place in Bedesa. The reason for choosing the location is because of
the area is the center of agricultural product which there is high soap production are their. This
makes our product more wanted.

5.2 Distribution (PLACE)

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The company distribute the products in the market areas, which is best for profit and better for
themselves. Mainly the company distributes the product to the target market of Bedesa also the
company can distribute to other marketing areas depending on the existing situation. The
distribution mechanism will be both direct and indirect channel. The reason is for using direct
channel is soap are easily broken.

Producer consumer (broken product)

Producer agent whole seller retailer customer (for compost fertilizer

product

6. Description of the market

6.1 marketing price

The pricing strategy is the main consideration of the company. This company uses market
penetrators strategy to introduce its products and to expand itself in different market areas, to
penetrates the market the company must know in what price that the competitor are sold their
products. If this is known marking simply in different on the price of the products create a great
attention for the company’s product by many customer. The company sells the products even
below its reproduction cost up to the level where market is penetrated and getting awareness by
customers to the market. Generally the customer may be willing to pay 17 and lastly may pay
500 for one quintal of compost fertilizer. Our price is 15 birr one soap and 450 for one quintal of
compost fertilizer the reason is that in order to increase customer.

6.2 Analysis of competitors

Recently the available competitors in Bedesa and around that area are high, but the bad thing is
that, there is no much more competitor available in the area local marketing who reproduce the
product in that means way of reproduction system. This leads or intercede these partners to the
group and at the same time to aware the society about the method of production by using skill
machine power and system of market strategy to become successful. The available competitors
are not present only Bedesa. That means there may be a competitor who have a high capacity and
provide qualified products in different itself so, to become the wiener, the company should
eliminate these traditional reproduction priesthood and these problems associated with quality of

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soap to increase productivity and to produce qualified producers. Otherwise, they may be high
competitors in the market and leads for risk.

6.3 Strength of competitors

The Strength of our competitor are the way of financing mistakes /problems in our products and
the way of trading a solution or mechanism to serve the problems, there is also strong business
network and high quality of products the competitors know the effect of little mistake on the
market structure. That is a one time mistake takes long period of time to change the market
situation, our competitors effective or storing in the protection or avoidance of mistakes in the
quality products.

6.4 weaknesses of competitors

The weaknesses of competitors are high production and transportation costs, which results larger
prices and also their approaches to the customers are dominant weakness.

6.5 promotion strategy

It is imaginary to think that without promotion of the product the business will be expanded and
profitable that to attract customer promotion of the company’s product is necessary and primary
issue on the targeted market due to this reason promoting company’s prove by using mining
contras (television, radio and networking system like face book, internet) are necessary or
essential, therefore, promoting the products is one best marketing strategy of our company.

6.6 market segmentation

The base of the market segmentation was geographically specially in Bedesa because in this area
there are many population are there so, use the product any time. The other market segmentation
in karrakukura is based on behavioral means benefit of the product include compos of fertilizer.
Generally the market segmentation based on geographical(religious) and behavioral base (user
status, usage rate and benefit) .therefore, the market for the company’s products is inside the
country which mainly in four specific areas

1. Karakurkura

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 2. Adama
3. Boke
4. Bedesa

In all these market areas there is large customers of soap but the company distributes the
production highly in Boke and Karakurkura because the company’s near to Bedesa among other
marketing areas, so the target market for our products is Karakurkura and Boke. In addition to
both areas all the other market areas are suitable to sale our products for instance Bedesa is needs
huge amounts of soap and checker due to the presence of high population and capital of Western
Hararge region . So our company can distribute the product other marketing area depending on
the existing market structure.

7. Market positioning

On comparative advantage of the business is the way the product is defined by the customer. As
a result of this the business tries to place in the customer mind by biting its competitors through
providing the quality and health products with reasonable prices and improving the brand
uniquely benefit to offer customers. In other word it is said to that positioning the business
output in the customer mind for relatively long period of time.

8. Legal form of the business

The legal form of the business will be general partnership because all members have a power to
management activity

9. Swot analysis

Strength

The accessibility of infrastructures high production quality and quantity better promotion of the
products is the strength of the business plan. Better management skill is the opportunity of
strength.

Threats

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The threats of business plan may be fluctuation of price of product due to population factor. in
fasting soap may be cheap.

Opportunity

The opportunity of our business is increase of the product, demand of the customer, increase of
the material like Boloke. Generally the major opportunity of the business is facility of soap .

Weakness

The weakness of the business is shortage of personnel.

11. production plan

Before any things have been started this partner is agreed to solve each and every situation can
fulfill the business in peace full mark up. Then the partner decided the following things by
keeping their formula steps.

1. How much capital needed for soap reproduction?

2. How machine subject to their soap are needed in tidally to start business ?
3. What kind of things must be fulfilled for reproduction?
4. Which one is that lue must emphasis to improve the capacity and quality of products in
the furred also?

Estimation of startup capital amount

D e s c r i p t i o n A m o u n t
I n v e s t m e n t :

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 L a n d 1 0 0 , 0 0 0
B u i l d i n g 2 8 0 , 0 0 0
E q u i p m e n t 2 0 , 0 0 0
Total investment 4 0 0 , 0 0 0
W o r k c a p i t a l
S t a f f c o s t 8 0 , 0 0 0
O p e r a t i o n c o s t 1 2 , 0 0 0
Total working capital 2 0 0 , 0 0 0
Total start up capital 6 0 0 , 0 0 0

12. Source of fund

Fund is crucial core point to our business .therefore our source of fund is equity and debt.

T y p e S o u r c e Interest (5%) Principalamount

Equity capital P a r t n e r 0 2 0 0 , 0 0 0
L o a n 1 F a m i l y l o a n 5% ,4 year 1 5 0 , 0 0 0
L o a n 2 B a n k l o a n 5%, 7 year 2 5 0 , 0 0 0

Information about funding source

Débt1: family loan

Name and address of creditor

Name---------------------------Gizaw

Adress----------------------------------------Bedesa

Credit agreement: under discussions

Debt 2: bank loan

Name and address of creditor

Name: commercial bank of Ethiopia

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Address:-Bedesa, branch

Credit agreement: under discussion

Debt service

As we see before the initial capital distributed from partners, family and bank loan explain
briefly. Payment is made in installment based with interest the amount of the loan was birr
400,000 with 5% interest family and for bank.

Repayment period Jan. 2010 J an .2 01 1 Jan. 2012 Jan. 2013

Family loa n Installment 2 0 , 0 0 0 3 0 , 0 0 0 4 0 , 0 0 0 6 0 , 0 0 0
Interest 7 5 0 0 6 5 0 0 5 0 0 0 3 0 0 0
Total payment 2 7 5 0 0 3 6 5 0 0 4 5 , 0 0 0 6 3 0 0 0

Repayment period Y 1 Y 2 Y 3 Y 4

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3
Back loan installment 50,000 60,000 65,000 75,000
I n t e r e s t 72,500 10,000 7 0 0 0 3 7 5 0
Total payment 122,5000 70,000 72,000 7 8 7 5 0

Staff cost

Position salary per month

1. General Manager-------------------5000
2. Seller……………………………1500
3. Accountant----------------------------2000
4. inventory ship-------------------------1500
5. Secretary----------------------------------400
6. Price bargainer----------------------------1000
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 7. Adverting manger -------------------------2000
8. Sale manger----------------------------------2000
9. Pricereceiver-------------------------------1000
10. Purchase manager----------------------------2000

Total staff cost------------------------------------18400

Yearly sale plan

Product January F e b March A p r . M a y J a u n J u l y Augest

Boloke P r i c e 1 0 0 1 1 0 1 0 0 1 0 0 1 1 0 1 0 0 1 5 0 1 6 0
Quantity 2 3 0 2 3 0 2 5 0 2 7 0 2 0 0 2 5 0 2 5 0 3 0 0
Turn over 2 0 , 0 0 0 35,3000 25,000 27000 2 2 0 0 25,000 37,500 480,000
Soap Price per egg 3 3 3 3 3 3 3 3
Quantity 3 0 0 4 0 0 4 5 0 5 0 0 5 5 0 5 7 0 6 0 0 6 2 0
Turn over 9 0 0 1 2 0 0 1250 1500 1650 1710 1800 1 8 6 0
Compost fertilizer P r i c e 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0

Quantity 1 quintal 1 quintal 2quintal 2 quintal 1 quintal 1 quintal 1 quintal 1 quintal

Turn over 5 0 0 5 0 0 1000 1000 5 0 0 5 0 0 5 0 0 5 0 0
Total turn over 2 1 4 0 0 27,000 27250 29,500 24,150 27,210 39,800 50,360

13. Industry analysis

13.1 Future outlook and trends

In the last five years the introduction of soap reproduction is highly known and more expanded
and many people’s are also participate but the method of reproducing them. The marketing
strategy and many things are done in traditional way and using their in adequacy knowledge.

Due to this the total sales from this reproduction are not much more enough and qualitative.

so, when those partners starts the business, they tries to evaluate and identify the failures in
the past few years and as much as possible change this failure totally to success by fulfilling the

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accessory, this is to quality realization way and skill full mind to become profitable with
satisfying the customers after some years ago the business expands the capacity of reproduction
and increasing the numbers of partners with the distribution of products at everywhere and every
time if possible.

Awaking new type soap and company identify which gives more satisfaction for the customer by
comparing the pervious and recent type then as fares this is served the partners are understanding
the problem and able to maximize theirprofit byquieting problem.

14. Operation cost

14.1 office equipment and personnel

The company’s operation require some the equipment and personnel.

required office equipment and machinery.

No D e s c r i p t i o n quantit y U n i t p r i c e Total price

1 G u e s t c h a i r 5 1 0 0 5 0 0
So our
2 agro science 2 1 6 0 0 1 6 0 0
3 Personnel computer 1 1 0 , 0 0 0 1 0 , 0 0 0
4 grainner machine 4 0 2 5 , 0 0 0 2 5 , 0 0 0
T o t a l 4 8 3 7 , 1 0 0
companies require 38100 birr for office equipment and machinery

15. production plan

Before any things have been started this partner is agreed to solve each and every situation can
fulfill the business in peace full mark up. Then the partner decided the following things by
keeping their formulasteps.

5. How much capital needed for soap reproduction?

6. How machine soap subject to their type is needed in tidally to start business?
7. What kind of things must be fulfilled for reproduction?
8. Which one is that we must emphasis to improve the capacity and quality of products in
the furred also?

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After answering such question we enter in to the business.

16. Needed Raw product type

Popularly forming should consist of the following factices

ჯ Boloke which is comfortable for them

ჯ production
ჯ Boloke breading

17. Rawmaterials and machinery

The needed rawmaterials for reproduction of soap are

 Soap which are different in type, quality and, quantity according to the hardily of the
Soaps,
18.The future capacity

In the future the company needs huge amount of capital which is necessary to expand its branch
in different regions and areas with a high emphasis of increasing the needed machine power also
the busienss must have modern equipments for reproducing checkers.

19.Organizational plan
19.1 forms of owner ship

Abrading soap reproduction company should established or termed as private limited company.
(terms of partnership). The partners of the company are Gizaw Belachew, Hilina Ayele,Nesibe
Remedan,Dawit Solomon andMitike Mamushe.We have an agreement on the ongoing
production life and plan of the business. These agreements are try to carry out different and
difficulties facing in the reduction of checkers in peace full way by discusser clearly to become
successfully.

20.Risk assessment
20.1 weakness of the business

In the operation of the business the following problem may occur

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 - low occupation power to economic change
- shortage of personnel
- competitors reaction
20.2 effects of change

Completion:-increasing the numbers of competitors to different market area particular in the

stargazed mannat areas difficulties for our company.

20.3 contingency plans

The company shall have the following alternative rule policies to expand the operation profitable

1. establishing /conducting research and development

2. expanding the distribute center to other markets
21.financial plans
21.1 forecasted income statement for the next three years

Abrading Soap reproduction P.L.C for casted income statements for the following three years

ODA BULTUM SOAP Reproduction Company

Fore casted income statement

For the next 3 years

D e s c r i p t i o n Y e a r 1 Y e a r 2 Y e a r 3
R e v e n u e :
S a l e 2 5 0 , 0 0 0 4 5 0 , 0 0 0 6 5 0 , 0 0 0
Total revenue 2 5 0 , 0 0 0 4 5 0 , 0 0 0 6 5 0 , 0 0 0
E x p e n s e :
Office supplies 1 5 0 0 2 0 0 0 2 , 4 0 0
Trans port expens e 2 0 0 0 3 0 0 0 4 0 0 0
Rent expense 5 0 0 0 7 0 0 0 8 0 0 0
Miss lane ous expense 1 0 0 0 1 5 0 0 1 6 0 0
Income be for tax 2 4 0 5 0 0 2 8 8 0 0 0 6 3 4 0 0 0

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Income tax (15%) ( 3 6 0 7 5 ) ( 4 3 2 0 0 ) ( 9 5 1 0 0 )
Income after tax 2 0 4 4 2 5 2 4 4 8 0 0 5 3 8 9 0 0

21.2 for casted balance sheet for the next 3 years

Soap Reproduction Company forecasted balance sheet for the next three years

Soap Reproduction Company

Forecasted balance sheet

For the next 3 years

Current asset Y e a r 1 Y e a r 2 Y e a r 3
C a s h 2 5 0 , 0 0 0 3 5 0 , 0 0 0 4 5 0 , 0 0 0

A / R 5 0 , 0 0 0 6 0 0 0 0 8 0 0 0 0
I n v e n t o r y 2 1 0 , 0 0 0 3 1 0 , 0 0 0 4 0 0 , 0 0 0
Total current ass e t 5 1 0 , 0 0 0 7 2 0 , 0 0 0 9 3 0 , 0 0 0
F i x e d a s s e t
L a n d 2 0 0 , 0 0 0 1 5 0 , 0 0 0 1 0 0 , 0 0 0
Building (net) 2 5 0 , 0 0 0 2 0 0 , 0 0 0 1 0 0 , 0 0 0
Equipment(net) 1 5 0 , 0 0 0 1 0 0 , 0 0 0 9 0 , 0 0 0
Total fixed assets 6 0 0 , 0 0 0 4 5 0 0 0 0 2 9 0 , 0 0 0
T o t a l a s s e t 1 , 1 1 0 , 0 0 0 1 , 1 7 0 , 0 0 0 1 , 2 2 0 , 0 0 0

Liability and equity:

L o a n s 1 5 0 , 0 0 0 1 0 0 , 0 0 0 5 0 , 0 0 0
Tax payable 8 0 , 0 0 0 9 0 , 0 0 0 1 0 0 , 0 0 0
E q u i t y 1 , 3 4 0 , 0 0 0 9 8 0 , 0 0 0 1 , 0 7 0 , 0 0 0
Total liability and equity 1 , 1 1 0 , 0 0 0 1 , 1 7 0 , 0 0 0 1 , 2 2 0 , 0 0 0

21.3 Fore casted cash flow for the next three years
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 Soap Reproduction Company

Statement of for casted cash flow

For the next three years

Y 1 Y 2 Y 3

Cash beginning of the year 3 0 0 , 0 0 0 3 5 0 , 0 0 0 4 4 5 , 0 0 0

E q u i t y 2 0 0 , 0 0 0 3 5 0 , 0 0 0 2 6 0 , 0 0 0
L o a n s 1 5 0 , 0 0 0 1 0 0 , 0 0 0 5 0 , 0 0
S a l e s 6 0 0 , 0 0 0 5 5 0 , 0 0 0 7 0 0 , 0 0 0
Total cash inflow 1,250,000 1 , 3 5 0 , 0 0 0 1, 41 0, 00 0
I n v e s t m e n t 4 0 0 , 0 0 0 4 5 0 , 0 0 0 5 0 0 , 0 0 0
O p e r a t i o n c o s t 1 2 0 , 0 0 0 1 3 0 , 0 0 0 1 4 0 , 0 0 0
I n t e r e s t ( 5 % ) 7 5 0 0 5 0 0 0 2 5 0 0
Total cash out flow ( 527500) ( 585000 ) ( 642500)
Cash of the end of the years = 7 2 2 5 0 0 = 7 7 4 0 0 0 = 7 6 7 5 0 0

22. MONITARING

The owners of the business that there right to control, distribute and improve the quality and
capacity of their production, the owner of the company also have the right to operate the business
and terminate of the partner when needed.

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