MANAGEMENT DEPARTMENT ,
COLLEGE OF BUSINESSE AND
ECONOMICS
BUSINESS PLAN ON ABERA BALITENA
AND SPICES SHOPS
PREPARED BY:
NAME
1.
2.
3.
4.
IDNO
Amanuel Birhanu............................ 006/21
Belay Birhanu...........................010/21
Belay Tadese............................011/21
Bereket Tesifaye...................013/21
5 Cherinet Aleme ...................022/21
5. AMERE BAYEW......................3496/13
1
6. AGMAS MUCHE.......................3552/13
SUBMITTED TO: INSTRUCTOR Tigist.
SUBMITTED
Dilla, ETHIOPIA
DATE:14
February
,
2022
Table of content
Content
page
1.
Executive
summar………………………………………………………………………………
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2.
Business
description…………………………………………………………………………
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2.1.
Owner
description
……………………………………………………………………………..
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2.2
Mission
of
business…………………………………………………………………………….О
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2.3.
Visions………………………………………………………………………………
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2.4
Objective……………………………………………………………………………
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2.4.1
Short
term
objective………………………………………………………………………….О
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2
2.4.2
Long
term
objectives…………………………………………………………………………О
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3.
Service
description…………………………………………………………………………
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3.1
Market
research
analysis……………………………………………………………..Ошибка!
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and
3.2.
SWORT
Analysis……………………………………………………………………………
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3.2.1.
Strength
of
the
competitors……………………………………………………………Ошибка!
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3.2.2.
Weakness……………………………………………………………………………
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3.2.3
Opportunity…………………………………………………………………………
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4.
Marketing
plan…………………………………………………………………………………
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4.1
Pricing………………………………………………………………………………
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4.2
Promotional
mix…………………………………………………………………………………
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3
4.3
Place
of
operation……………………………………………………………………………
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4.4
product
type…………………………………………………………………………………
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5.
Production
plan…………………………………………………………………………………
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6.
The
Business
budget…………………………………………………………………………..Ош
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7.
Management
plan………………………………………………………………………………Ош
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8.
Financial
Plan…………………………………………………………………………………
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8.1.
Start-up
Funding………………………………………………………………………………
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8.2
Financial
documentation…………………………………………………………………..Ош
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8.2.1Profit
and
Loss
Statement……………………………………………………………….Ошибка!
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8.2.2.First
year
Balancesheet
statement
of
business……………………….Ошибка! Закладка не определена.
the
9.
Break
even
analysis………………………………………………………………………………
…18
4
10. Conclusion………………………
1. Executive summary
Amanuel balitena shop will be start as a partnership between three domestic
investors(Amanuel,Belay&cherinet).
The shop will provide qualitative cereal domestic consumption product such as
shero, lentil, pepar, bean, pea, and bulla ,beso,abish and different spices for
domestic customer of the societies of woliso and around in order to make the
healthy in their life.
Our initial statement to Investors and Financial Lenders, this balitena and spices
business plan is a candid disclosure of the Amanuel,Belay&Cherinet business
proposal - our intent is to set realistic business expectations, and reduced any
questions about the profitability of this business venture.
Entrepreneurs have a tendency to paint the Dilla balitena and spices shop business
plan with a very optimistic brush, highlighting strengths and camouflaging the
risks. We, as business owners, have a vested stake and financial commitment in the
success of this balitena. Our intent is to have a definitive business, financial, and
marketing plan that not only serves our need for capital financing, but also is
utilized as our daily business roadmap. We have taken all precautions to validate or
success our business and financial models, focusing on realistic projections.
Our beginning capital is about 3000birr for the purchasing of fixed assets and for
the operation of different works our business need 2000 birrwith a total birr of
5000. From this amount we get 2000 amounts from SNNP credit and institution
through loan and its loan repayable over three years. As owners, our commitment
is to take personal accountability for all financial debt. We will take the necessary
precautions to ensure the business is fully capitalized with in three year, and have
addressed all financial shortfalls to ensure a successful business start-up.
Owner profile
Business Owner: Amanuel,Belay& Cherinet.
5
Address; Dilla, Haroresa 015
Tell. Of work place: 0923631074/ 0974230158
Type of Business ፡ Small Scale Enterprise on balitena and spices shops
2. Business description
The name of this business is Amanuel balitena and spices shops which will start as
a business in Dilla town, Haroresa 015. As we observed in this area the is some
competitor which supply both qualitative and quantitative balitena and spice
products for individuals, relatively small and medium hotels, also we assume that
most of the customers of this business will be the above we mentioned. Also in this
area we observed that most of the communities population of this kebele are
collage students and the other includes those who did not married(Wonde late).So
such types of individuals highly need the product of our balitena and spices
keeping competitors constant.
2.1. Owner description
The ownership of the partnerships are named as ; Amanuel,Belay&Cherinet. The
first 2 were born in SNNP ,(in 1990,1990 respectively) & the 3rd were (in 1992).
We graduated at Dilla University odaya'a campus on Department of Accounting
also will locate in this town in SNNP region of Ethiopia.
The product /service we provide for our customers (individuals, hotels) are that a
qualitative and well prepared domestic cereal balitena products to keep them from
preparing balitena and spices products in boring and tiresome ways as well as to
keep their life healthy.
2.2 Mission of business

The aims of our business is to fill a clear gap in the market and cater for
growing customer demand for high quality, healthy premium of Aberat
finished baltena consumption products
6
2.3. Visions

The vision is to have not only profit maximization of the owner of the
business, but also efficient and superior service - customer satisfaction is our
paramount objective. Amanuel balitena will be the choice for all a mature
and adult crowd, couples and singles, young and old, male or female.

Employee welfare, participation, and training are equally important to our
success. Everyone is treated fairly and with the utmost respect. Our
employees will feel a part of the success of Amanuel balitena company.
Our concept combines variety, ambiance, entertainment and a superior staff
to create a sense of 'place' in order to reach our goal of overall value in the
dining/entertainment experience. We offer fair profits for the owners and
investors, and a rewarding place to work for the employees.

2.4 Objective
Our business has two main objectives for the first three years of operation include:




2.4.1 Short term objective
Solving the market problem of the area by addressing or supplying of
better and quality products to the customers.
Providing a better quality of finished balitena product to increase our
customers.
Achieving the average estimated sales per year.
Reduction of the inflation of finished balitena products and spices as much
as possible
2.4.2 Long term objectives
Expanding our marketing and advertising in Ethiopians neighboring country
to increase our customer base from abroad.
7
 To expand the existing business area and starting another similar business in
a unique Midtown destination of other areas in side our country..
 To create better job opportunity for people
 To improve equality and performance of our employees
 To generate the maximum profit by assuming any risk and challenges.
3. Service description
3.1 Market research and analysis
Instead of building a business around a preconceived concept, we
conducted market research and built a concept around our consumers.
According to survey and observation we have conducted, people which are
around Dilla area are densely populated and some of them (self- employed
and investors) run their own business and government employees those who
are not run their business such as a university lectures, bankers, private
college lecturers, Doctors and Health .therefore, there are a great
competition between them especially the investors and self- employed
workers. Those competitors have their own strength and weakness.
3.2. SWORT Analysis
It shows the strength, weakness, opportunity and threat of the business.
3.2.1. Strength of the competitors
Our competitors have an experience in this market (balitena) since they are worked
for a long period of time than us. The other strength of our competitor has greater
financial services because of most of the relatives of our competitors were in
western countries. In addition, they have a greater access of information about the
market activities.
3.2.2. Weakness
The main weakness of our competitors are they did not well known spices which
are produced in well agricultural places that are used for the increasing of the
8
flavor and quality of the balitena products. But we will prepared the product with
highest quality by adding different spices in order to increase its flavor and to
attract our customer (the spices for example zekakeba,dembla ,tikurabusda,
kirfund ,ginger etc) .The other weakness is they sold their product with highest
price for their customers as equal as the other individual did. However, our main
concern will satisfy our customers by supplying our product with sound price.
3.2.3 Opportunity
 High demand of the customers to wards these balitena products.
 The status of using the standard technology to grow our
productivities.
 There are low number competitors at the areas.
 There will be shortage of suppliers
 Suitability of the areas for trading such materials
3.2.4. Threats
 Will there be increasing of tax.
 Will there be inflation.
 The high increment of rent of house
4. Marketing plan
Product /service- Generally we provide domestic consumption services for our
customers with sound price, better ethics, at right place with right time but we add
some features for competitive advantage and for the quality of product, we bring
out. In addition to this, we will also provide some training for the best customer
how to run such types of business. In general, our market business consists the 4PS,
which are price, product, place and promotion.
4.1 Pricing
The price we have setting depends on the price of our competitors but we will have
made some modification in order to cover some of our costs. we will try to
9
discount the prices of the product in order to attract our customers, if it doesn’t
have much effect even if it have some losses in our business flow of cash.
4.2 Promotional mix
In order to be advertizing our product that we produce we have assumed to follow
the following methods depending on market demand. The promotion method will
be:
1. We will use postures, and business cards in order to advertise
2. We will advert our products by participating on different exhibition and
bazaars
3. Also we will use poster in local notice areas tapela in front of our business
area, bill boards in some public places.
4.3Place of operation
The Amanuel balitena and spices shops will be located in Dilla town. The shop
will operate during peak service time to take advantage over other competitor. the
market branch operated on all days in a week. But, especially on Wednesday &
Saturday - Market brunch exercise at all-time due to different reason.
The main reason that we select this area is;
1. The presence of wide market on the town and its round.
2. The availability of raw materials and machines for the facilitating of the
methods production. For example, the availability of plastic for packing of
the products.
3. Relatively it is preferable on the availabilities of infrastructure in order
make the customer can get the product at any time.
4.4 product type
The main product that we will assumed to produced includes prepared pepar, peas,
shero lentil, bean kik, onion, bula kimem tikur kimem, beso, abish and other
special spices.
10
5. Production plan
Annual selling plane of product
No.
Types of
Amount(in Unit
product
kg)
price Total
per month
Annual
selling price selling
per month
price
1
Lentil
200
30
6000
72000
2
Bean kik
150
15
2250
27000
3
Pea kik
200
15
3000
36000
4
Pea shero
100
38
3800
45600
5
Prepared
100
65
6500
78000
pepper
Grand selling
21550
258600
6. The Business budget
The following tables that shows the amount of capital that we invested on raw
materials for the success of our business.
Starting capital of the business
No.
Investment
Cost
1
Place of production
2
Production house
2000
3
Manual production machine
1000
Gross investment
3000
Expense for operating
11
4
One workers job fee per month
300
5
Expense of raw materials per 1000
month1
Different expense per month
700
total operating expense
2000
Total starting capital
5000
List of investment conditions
No. Kind
of identification measurement quantity
investment
1
Place
of
production
2
House
of container
1
production
3
tishet
4
4
safaI
4
5
Kinda
50
6
plastic
M
10
7
Mabeterya
Km
4
Gross
investment
Raw materials, which are necessary to conduct our business.
1
2
3
4
Kinds
of Measurement
investment
(in killo)
Prepared pepper
Peas shero
Lentil
Bean kik
Amount
100
100
200
250
12
Unit
price
36
12
21
10
Unit
price
Total
price
2000
2000
150
35
22
40
25
600
140
1100
400
100
3000
Total
cost
3600
1200
4200
2500
7
11
12
13
14
15
16
17
18
19
Onion
bula kimen
Tikur kimen
Avocida
Abesh
Salt
water
Light
Special expenses
Total raw material
Labor force
Total
Grand starting
capital
5
5
5
4
3
40
13
15
50
20
14
4
2
500
65
75
250
80
42
160
300
20
500
19461
1000
20461
5000
Source of capital
No.
kind
Source
amount
1
Own capital
Saving
8560.20
2
Credit
Oromia saving and 34240.8
credit institution
42801
Gross capital
The amount we get the loan from SNNP Credit and Institution will paid over three
years (36 months) with an interest rate of 10%.the following table shows the
annual repayment of loan.
payment
Season of one year
1
2
3
4
5
6
7
8
9
10
Interest
285.34
285.34
285.34
285.34
285.34
285.34
285.34
285.34
285.34
28
Total
1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 1236.47 12
13
Organization of human labor force
No.
Level
of Responsibility
Level
work
1
technician
education
Producer
of Monthly
total
payment
and diploma
500
500
and diploma
500
500
monitors
2
technician
Producer
monitors
Let tax rate is 10% of gross profit
7. Management plan
United balitena and spices shop is a partnership organization.Amanuel, Belay and
Cherinet are the founder of Amanuel balitena and spice enterprise. The Ownership
owned and operated by three persons. The enterprise, being small in nature,
requires a simple organizational structure. Implementation of this organizational
form calls for all the owner, to make all of the major management decisions in
addition to monitoring all other business activities. Thus, Mr Amanuel Birhanu is
the manager of this business, Mr Belay Tadese & miss Cherinet Aleme are the
seller man of the Amanuel balitena and spices shop.
8. Financial Plan
The primary element to our financial plan is mantling and improving the factors
that create, and stabilize and increase our cash flow. In addition, helps to treat our
variable costs& fixed costs. The financial plan depends on the assumptions of a
strong economy without major recession.
8.1. Start-up Funding
This business plan is prepared on financial amount of birr 5000 in order to obtain
birr 57180.29 of retained earnings in the first year. The supplemental financing is
14
required to begin work on site preparation and modifications, equipment
purchases, and to cover expenses in the first year of operations.
The following sections lay out the details of our financial plan for the next three
years.
8.2 Financial documentation
8.2.1 Profit and Loss Statement
The most important assumption in the Projected Profit and Loss statement is the
gross margin. We show an adjustment increase in Year 2 as we exit our start-up
phase of the business and move into our expected annual sales forecast.
This transition shows the Amanuel balitena and spices shop managing through its
start-up period, and gaining efficiency and customer loyalty. In summary, the
business will develop its customer base and reputation and the growth will pick up
more rapidly towards the second and third years of business.
8.2.1. Income statement of Amanuel balitena and spices business plan for year
1
Sale of product ............................................................................. 369600
Cost of goods sold ......................................................................... 245532
Gross profit ................................................................................... 124068
Operating expense ......................................................................... 26837.64
Operating income before tax and interest ..................................... 95230.36
Interest expense ............................................................................. 1236.47
Income before tax.......................................................................... 93993.89
Tax payment .................................................................................. 24813.6
Income after tax ............................................................................ 69180.29
15
Dividends ...................................................................................... 12000
Retained earnings .......................................................................... 57180.29
8.2.2. First year Balance sheet statement of the business
The following the beginning balance sheet of Amanuel balitena Statement of
balance sheet
For beginning year 2015 E.C
Asset
Current asset
Cash ................................................................................... 20461
Account receivable............................................................ 0
Total current asset ............................................................ 20461
Fixed asset
Housing ........................................................................... 20000
Equipment ........................................................................ 2340
Total fixed asset ............................................................... 22340
Total asset...................................................................................... 42801
Liability and owner equity
Liability
Current liability ............................................... 34,240
Note payable ................................................... 0
Total liability .................................................................. 34,240.8
Owner equity ................................................................... 8,560.20
16
Total liability and owner equity .................................................... 42801
8.2.3. First year cash flow statement of Amanuel balitena and spices business
plan for year 1.
Cash inflow from operating activities
Net income ........................................................................... 57180.29
Depreciation expense .......................................................... 0
Account payable.................................................................. 11413.6
Net cash flow from operating activities .................. 72017.93
Subtract
Cash flow from investing activities
Sale of equipment............................................................... 0
Purchase of equipment ...................................................... 2340
Net cash flow from investing .................................... 69677.93
Cash flow from financing activities
Payment for dividends ....................................................... 12000
Net cash flow from financing activities ........... 12000
Note payable .................................................... o
Net change in cash ........................................... 57,677.93
The following table shows the income statement at the end of the 1st and 3rd year
17
2nd year
406,560
3rd year
447,216
Cost of goods sold
245,532
Gross profit
124,068
Operating expense
26,837.64
Operating income before 95230.36
tax expense
Interest expense
1236.47
Income before tax
93993.89
Tax payment
24813.6
270,085.2
136,474.8
29521.404
96182.396
297,093
150,122.28
32473.544
105800.64
1360.12
103,393.279
27294.96
1496..132
113739.6
30024.456
Income after tax
69180.29
76098.319
83708.15
Dividend earning
12000
13200
14520
Retained earning
57,180.29
62,898.319
69,188.181
Asset
Sale of product
1st year
369,600
The following table shows that the balance sheet statement at the end of 1 st and 3rd
year
Asset
1st year
2nd year
3rd year
Cash
20,461
22,507.1
24,751`.81
Account receivable
0
0
0
Housing
20,000
22,000
24,200
Equipment
2340
2574
2831.4
Total asset
42801
47081.1
51789.21
Current Liability
34240
37664
41430.4
Account payable
0
0
0
Note payable
0
0
0
Total liability
34240
37664
41430.4
18
Owner equity
8560.2
9416.22
10357.842
Total liability and owners
42801
47081.1
51789.21
equity
The following table shows that the cash flow statement at the end of 1 st and 3rd year
Asset
1st year
2nd year
3rd year
Net income
57180.29
62898.319
69188.159
Depreciation
0
0
0
Account payable
11413.6
11413.6
11413.6
79219.723
87141.69
Net cash
from
flow 72017.93
operating
activities
Sale of equipment
0
0
0
Purchas of
2340
2340
2340
76645.723
84310.29
12000
13200
14520
0
0
0
13200
14520
63445.723
69790.2953
equipment
Net cash flow from 69677.93
investing activities
Payment of
dividends
Note payable
Net cash flow from 12000
financing
Net change in cash 57677.93
19
9. Break even analysis
The break-even analysis show what we need to salary our service for meet cost.
Benefit obtained from the project years
No. Project
Cost
Income
Benefit
year
Discount
Net benefit
factor 5%
1
1st year
245532
57180.29
188351.71
0.23
433220.89
2
2nd year
270055.2
62898.319
207156.88
0.233
48267.55
3
3rd year
297093
69188.159
227904.841
0.234
53075.35
sum
189266.77
534563.79
N.P.V={N.B-initial cost) =534563.79-245532=(+)289031.79 in each year
 hence the business is profitable

10. CONCLUSION
As indicated by the above analytical steps of income statement and the balance
sheet, this project named “AMANUEL BALITINA AND SPICES SHOPS” is
supposed to be profitable and the daily, monthly and annual revenue generated
from prepared pepar, peas, shero lentil, bean kik, onion, bula kimem tikur kimem,
beso, abish and other special spices is assumed to increase from year to year. The
market, financial, technical as well as organizational aspects are also shown to be
feasible.
Therefore, both the responsible government body and the project owners have to
do pre-operational works including the arrangement and hiring of required man
power, getting license and provision of capital loan and required land area as soon
as possible so that establishment of the project was realized according to the
budgeted capital and the proposed time schedul
20
11. APPENDEX
 LETTER OF AGREMENT BETWEEN PARTENERS
 LETTER OF COLLECTIVE AGREMENT OF AMANUEL BALITENA
AND SPICES SHOPS
 LETTER TO SNNP TRADE AND INDUSTRY OFFICE
AGREMENT OF PARTENERSHIP
This letter agreement is made on Fav, 2022 between the following partners.
OWNER OF AMANUELI BALITENA AND SPICES SHOPS
NAME
PHONE NO
1
AMANUEL BIRHANU
0923631074
2
CHERINET ALEME
0974230158
3
BELAY TADESE
0926613165................
21
TO: TRADE AND INDUSRTY BUREAU
SNNP REGIONAL STATE
DILLA
SUBJECT: APPLICATION FOR TRADE LICENSE
AMANUEL baltina and spices shop business is a general partnership established
by 3 (three) partners: AMANUEL, CHERINET& BELAY.
The beginning capital of Amanuel baltina and spices shop is birr 5000(five
thousand birr).
We, the partners are therefore; kindly request your good office to allow a trade
license. Enclosed here with please find our agreement of partnership and other
relevant documents.
Best Regards
1. Mr AMANUEL BIRHANU
2. Mr CHERINET ALEME
3. Mr BELAY TADESE
22