Beruflich Dokumente
Kultur Dokumente
1
4.3 ASSESMENT OF RISKS AND REMEDIAL MEASURE.............9
5.0 Financial analysis..............................................................................10
5.1. Start-up capital..............................................................................10
5.2. Sources of start-up Capital............................................................11
5.3 Expected sales and profit...............................................................11
Executive summary…………………………………………………………………………………………………………12
Appendix.................................................................................................14
2
1.2 DEMOGRAPHIC STRUCTURE OF DEBRE BERHAN TOWN
Like other place the demographic structure of Debre Berhan town is
explained by its birth rate, death rate, growth rate, density, age structure,
sex structure and in other ways.
The total population of Debre Brehan town is reported to be about
67,269 from which 33,826 were man and 33,443 were women. The
majority of the population follows the Orthdox Christianity which
accounts 67.43% of the total population, while 22.65%, and 8.75% of
the population were Muslim and Protestant (2007 national census) the
dominant language in the town were Amharic followed by Oromiffa as
a second spoken but not only these two language which are spoken in
the town there is also others.
1.4 OBJECTIVE
To maximize boutique supply in general and satisfy consumers
consumption requirement in particular
3
To creating employment opportunity to the surrounding
community
To provide the customer with high quality and quantity clothes
and shoes
1.5 MISSION
Utilizing available resources
Adopting to the dynamic environment throughout the operation
Providing affordable living standard to its workers
Supplying high quality clothes and shoes suitable for customers.
It is obvious that the clothes and shoes are among one of the basic needs
of human beings, so that individual is in need of some clothes and shoes
for survival, to maintain suitable condition with the weather condition,
for recreation and style, and other personal purpose so that there will be
expansion of the business at an alarming rate.
5
It is in this respect that our business provided a lot of opportunity is for
the community of Debre Berhan ,campus students of Debre Berhan
university and surrounding peoples (North shawa zone peoples) by
enabling them to use modern clothes and shoes and simply adapt
freshman students and as well as guests who are not familiar with the
new style of wearing.
SMART boutique is going to planned to introduce clothes and shoes in
different style. For example, in variety of size and color, model, up to
dated products accordingly.
Analysis of competitors
The main competitors the boutique will face are
Local mini shopping trader in Debre Berhan town
Boutiques located at Sheno, Shewarobit and even AddisAbeba
Other boutiques in the town
Strength of competitors
The strength of our competitors is that they have
High initial capital
Enough man power
Enough space for working.
Weakness of competitors
They provide poor quality clothes and shoes
Their service of time is limited
They do not respect their customers
6
2.2 COMPETITIVE ADVANTAGE
3. MARKETING PLAN
3.1 CUSTOMER ANALYSIS
7
level, sex and location areas so that the boutique reacts accordingly to
satisfy the customer demand.
Most of the time demand and supply do not balance each other. To
balance Supply with demand we must do a continuous assessment on the
number of our customer. We must identify the primary need of our
customers. We have to measure the daily, weekly, monthly and yearly
consumptions of the customer and compare with our products. By
carrying out this process we can balance demand and supply.
The basis for our boutique prices is the market price and cost-benefit
analysis. Even if our competitors have no so much strength, we may
reduce our price in order to attract and get our customers attention; as a
result we can increase our profit from large number of customers (by
selling more quantity of products). Actually the price of our product is
not below the market price; as a result, the boutique set the price of
clothes and shoes as the markets that are it fluctuates over the time with
market price. We also adopt price discrimination based on number of
sales, income level, ages or based on other criteria which is important to
maximize profit.
8
Easy to distribute
Cost effectiveness
Availability of printing press
Additionally the business venture is going to be promoted vie
online network through email of the boutique.
4. ORGANIZATIONAL PLAN
4.1 LEGAL FORM OF OWNERSHIP
9
Ability to manage others.
Risk taker and experienced.
The role of the manager will be managing the overall activity of the business. That
is:-
Role of cashier(Adanech)
Purchaser(Mihret)
Accommodate customers
Attracting of customers
10
Responsibility quantity Staff qualification
Client server 2
Guarder 1
Organizational structure
The permanent employees of the business consist of two workers. The three are
responsible for day-to-day activities of the business.
General Manager
11
Expiration of unsold some clothes and shoes.
Loss of income from expired item.
Loss of customers.
Natural hazardous.
Shortage of supply (fluctuation of supply).
Fluctuation of market price (devaluation, inflation, deflation)
By taking into account these risk all staff members strive to minimize and cope
with in their own respective careers.
5. FINANCIAL ANALYSIS
5.1. START-UP CAPITAL
To start the business activity the business encountered with different types of costs.
Totally the cost of the business includes the following:-
The business plan is going to obtain funds amounting 42,000 birr by borrowing
from microfinance, Birr 120,000 from personal capital and Birr 53,000 from close
relatives, government, and NGOs.
13
NPV @ 10% 7272.72
2nd year Shoes 1300 93,5000 94,000
Generally, in all years NPV are greater than 1 the project is feasible.
Income statement
Smart boutique
Income statement
Revenue
Sales……………………………………………………………………….215,000
Expense
14
Salary expense………………………………………………………………………
48,000
Interest
expense…………………………………………………………………….16, 000
Advertising
expense……………………………………………………………………….9, 000
Miscellaneous
expense………………………………………………………………………3,000
Rent expense………………………………………………………………….65,000
Total
expense……………………………………………………………………...141,000
Gross profit…………………………………………………………………………
74,000
Balance sheet
Smart boutique
Balance sheet
January 14,2018
Asset Liability
Cash-----------------------80000 Account payable-----------46000
Fixed asset------------------87000 Note payable---------------22000
Total asset-----------------167000 Total Liability………………..68000
Capital
Capital -----------------------99000
Total liability and capital -----167000
15
Cash flow
Smart boutique
November 31 2018
EXCUTIVE SUMMERY
SMART Boutique business enterprise will be run as partnership among
Adanech , Ayele ,Abate, and Abiy ,Mesenbet and Mihret by 225,000 birr.
The SMART boutique offer high quality and quantity of shoes, trouser
and jacket and other related clothes for users and customers. The
product of the business will be available for sale at home and also sold
to retailers who sells in other markets.
The price set by the business, is fair market price or it should not exploit
customers or should not annoy customers. So that customers are willing
to pay. The business will provide its product at market price by
identifying and listing each type of services with their fair prices.
16
The activities included in this business are purchasing and selling of
high quality and modernized clothes and shoes and preparing store
houses where they stored whenever there is excess supply, auditing daily
sales of business, etc.
The overall objective of the business is to provide high quality and
quantity products in order to get the expected profit and to satisfy the
consumer, and we would also have a claim to create job opportunity.
In the first year the business forecast a profit of birr 215,000. The
reason for obtaining such positive gaining or profit can be mainly
attributed to: The presence of good market price, limited strong
competitors, cheap labor force and absence of payment for suppliers
(transportation cost)
In the second year and 3rd year we expect and predict that there will be
increment of profit due to further increases in sale having advantage of
economies of scale.
The SMART boutique will require loan of birr 68,000 to be repaid over
six years. The contribution made for the business is equal for each
partner and share of profits and loses also can be equally shared. The
SMART boutique will also available on www.smartbout.com always and
ready to accept its customer’s comments, suggestions and questions
regarding the quality of its products and services and serves to promote
its services and products
17
APPENDIX
4) The partners will free to exit from the business at any time if they fulfill
all requirements of the above agreements.
18
The products and shop of SMART boutique
19
Shop design
Boutiq
ue
shop
20
21