Kanenus TVET COLLEGE 2

BUSINESS PLAN
Executive Summary

Name of business :-Sifan Computer Training Center

Legal form of the business will be: The Partnership

Contact address: Asela Town

Tel. 0911752735

E-mail: [email protected]

Fax.____________________
Type of business

Manufacturer Service provider



Retailer Wholesaler

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 Kanenus TVET COLLEGE2

Brief description of the business idea

Products or services: Sifan Computer Training center will provide computer Training for student &
different types of Employment to fulfill their computer knowledge and computer skill gap. Our Training based
on computer hardware service and technical consulting such as repairs, networking and upgrades service,
computer maintenance, and Database as well as home PC users. The enterprise will focus on marketing
responsiveness, quality, and creating and retaining customer relations.
Sifan Computer Training center will be formed as an SME enterprise having 3 members who graduate in the
occupation of Hardware and Network servicing ,Database and IT Support in level III or IV from various
TVETs. Sifan Computer Training center will at first be a home office start-up, utilizing one studio room in
the owner's home and serving customers in the local Asela town and nearest to 04 Kebele . In the six month of
our plan, we will move into a leased office space. As our service sales increase, we will have additional
members.
Customers / target group

Our target is firstly government workers whom incurs such training shortages, trainees/students whose need
to strength their knowledge on computers, individuals and any others preferable persons who need such
trainings and other communities whom need to gain our services.

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

Reason for choosing this legal form

1. Easy to form
2. Low cost to start
3. possible tax and advantages
4. need of user is very high
The decisive factors for selection of this project proposal are:
 Marketability: Provision of acceptable returns of rewards for the risk and effort required;

 Real Demand/need: Responds to unsatisfied needs or requirements of customers who have the ability to
purchase and who are willing to buy.

 Be competitive: Be equal to or better (from the viewpoint of the customer than other available products or
services.

 Meet objective/profitability: Meet the goals and aspirations of the person or organization taking the risk.

 Accessibility of resources or raw materials and skills of implementer.

 Ease to Assess

 Consideration of financial ability

 Best business location

Identification of target group - Our target is firstly government workers whom incurs such training shortages,
trainees/students whose need to strength their knowledge on computers, individuals and any others preferable
persons who need such trainings and other communities whom need to gain our services.

 Competition/creativity and adaptation of change

 Risk assessments and evaluation.

 Using technology to increase productivity and better resource utilization.

 Seeking information from different corners, which is about the market. New technology, government
policy in relation to tax as well as different issues; suppliers, and other factors that contributes to the work.

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

 Persistence - having a good tolerance in difficulties and learn from faller; Networking and persuasion with
enterprises within and out of the industry you involved.

 Formulating small enterprise strategies, such as Adaptability, Reshaping, and Complementing by using
local raw materials as much as possible;

Owner(s) profile

No Name Address Qualification Function in the business relevant experience

1 Siifan General Manager 8 year
2 Getu Operation Manager 2 year
3 Tigist Finance Manager 2 year
MARKETING PLAN

The very nature of the computing industry, with its extraordinary rate of technological development, creates a
constant need for businesses skilled in updating and advising customers on computer-related issues. In town,
the majority of potential customers are dissatisfied with existing options, creating an attractive role for an
innovative start-up. Small business PC users and offices will provide the majority of our business revenue.

No Geographical Area Town Type of Customer Market size Description of Competitors

1. Moderate Land Asela Service 600 km2 Low competitors

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

Marketing Plan Product

Our company will not based on product; rather it is based on servicing. It has decided to focus mainly on the
small business market, as these customers typically don't have a full-time IT person, but have full-time IT
supports. Sifan Computer Training Center (SME) will offer an affordable, on-demand service for these
customers. We can also offer maintenance agreements, Secretary Service, Laminating purpose, printing
and stationery services that generate additional monthly income.

Marketing Plan Price

Our plan prices to set the standard for on-site computer solutions through fast, on-site service and response.
Our customers will always receive one-on-one personal attention at a very affordable price. Our customers will
receive the highest quality of customer service available. Our members will receive extensive training, a great
place to work, fair pay and benefits, and incentives to use their own good judgment to solve customers'
problems.
Marketing Plan Place
Our target market will focus on Asela town and the surrounding Woredas. Market research indicates there is an
abundance of business for a small company such as Sifan Computer Training Center (SME).
Marketing Plan Promotion
Our company use different types of promotion such as Distributing brochure, opening ceremony and Radio,
Newspaper and so on.
PRODUCTION PLAN
List fixed assets needed and their cost

No. Item Quantity Amount

1 Computer 3 12000
2 Chair 5 500
3 Tables 5 1000
4 Divider 3 450
5 Monitor 4 6000
6 Pc station 3 4000
7 Network cable 30 m 600
8 Network toolkit 1 2000
9 Crimper 1 400
11 Printer 1 2500
12 Copy machine 1 13000
Total 42450
Factory/plant location and layout

List of raw materials needed

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 Kanenus TVET COLLEGE2

No Raw materials needed per month DIMENSION QUANTIT UNIT TOTAL

/Specification/ Y COST COST
1 CD/DVD Pack 2 200 400
2 Rj-45 Pack 4 200 800
4 Software Different 5 50 250
5 Paper Pack 3 80 240
1690

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 Kanenus TVET COLLEGE2

Staff cost

No Position Qualification Salary per month Remark

1 Manager IV 1000
2 Accountant IV 500
3 Secretary III 500
Total 2000
Factory overhead expenses

No Overhead expenses Amount per month

1 Indirect labor 500
3 Transportation 500
4 Staff cost 2000
5 House rent 1000
Total 4000

• Production costs of each

item to be produced
- Raw materials per 169
month 0
- Direct labor per 200
month 0
- Factory overhead 200
expenses per month 0

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

3. ORGANIZATION AND MANAGEMENT PLAN

4. FINANCIAL PLAN
Capital requirement

Capital requirement/project cost?Amount

Fixed Assets
Land
Building
Equipment 42450
Others
Total Fixed assets 42450
Pre-operating expense 1000
Working capital /Operational costs of one months
- Raw materials costs 1690
-House Rent 1000
- Staff cost of one month 2000
-others 1000
Total working capital 5690
Total capital requirement 49140

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

Monthly sales plan

Month 1 2 3 4 5 6 7 8 9 10 11 12
Product 1 Price 250 250 250 250 250 250 250 250 250 250 250 250
Quantity 40 80 100 110 115 120 125 130 130 130 130 130
Revenue 1000 20000 25000 27500 28750 3000 3125 325 32500 325 3250 3250
0 0 0 00 00 0 0
All products Revenue 1000 20000 25000 27500 28750 3000 3125 325 32500 325 3250 3250 33500
0 0 0 00 00 0 0 0
Operational cost

Month 1 2 3 4 5 6 7 8 9 10 11 12
Product Quantity 40 80 100 110 115 120 125 130 130 130 130 130
1 Unit cost 142.2 142.2 142.2 142.25 142.2 142.25 142.25 142.2 142.2 142.25 142.25 142.25
5 5 5 5 5 5
Total cost 5690 1138 1422 15647. 1635 17070 17781. 1849 1849 18492. 18492.5 18492.5
0 5 5 8.8 3 2.5 2.5 5
All Total 5690 1138 1422 15647. 1635 17070 17781. 1849 1849 18492. 18492.5 18492.5 190615
products operation 0 5 5 8.8 3 2.5 2.5 5
cost

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

Cash flow - Projected monthly cash flow statement

Particulars Pre- Monthly Cash Flow Statement
operating
period
Cash at the beginning 1 2 3 4 5 6 7 8 9 10 11 12
of the month 569 7000 1262 20395 29247. 38638. 48568. 59037 70045 81052. 9206 103067.
0 0 5 75 75 .5 5 0 5
Cash inflow
Equity 49140
Borrowings
Cash sales 100 2000 2500 27500 28750 30000 31250 32500 32500 32500 3250 32500
00 0 0 0
Collection of A/R
Other income
Total cash inflow 49140 156 2700 376 47895 57997. 68638. 79818. 91537 10254 113552 1245 135567
90 0 20 5 75 75 .5 5 .5 60 .5
Cash outflow
Pre- operating 1000
expense
operating expense 569 1138 1422 15647 16358. 17070 17781. 18492 18492 18492. 18492. 18492
0 0 5 .5 75 25 .5 .5 5 5 .5
Purchase of fixed 42450
assets
Staff cost 200 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
0
House Rent 100 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
0
Total Cash outflow 43450 869 1438 1722 18647 19358. 20070 20781. 21492 21492 21492. 21492. 21492
0 0 5 .5 8 3 .5 .5 5 5 .5
Cash at the end of the 5690 700 1262 2039 29247 38638. 48568. 59037. 70045 81052 92060 10306 11407
month 0 0 5 .5 75 75 5 .5 7.5 5

Profit & loss statement (for service

business)
Annual projected profit & loss
statement
Revenue: Amount
Sales 335000
Sales cost (190615)
Gross Profit 144385
Less: Operating expenses
Salary expenses 24000

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 Kanenus TVET COLLEGE2

Rent expenses 12000

Other expense 1000
Total Operating Expense (37000)
Net profit Before Tax 107385
Less: Estimated Income
Tax
Net profit After Tax 107385

Balance sheet
Assets Amount Liabilities Amount
Current Assets Current Liabilities
Cash at hand and 114075 Accounts payable
bank
Accounts receivable Taxes payable

RM inventory Others payable

WIP inventory Total Current
Liabilities
FG inventory Long-Term Liabilities
Total Current Assets 114075 Loans

Fixed Assets Total liabilities

Building Owners Equity
Equipment 42450Capital 49140
Total Fixed Assets 42450 Profit 107385
Total Asset 156525 Total liabilities & 156525
Capital

Prepared by: Tubba M. ICT HNS Department

 Kanenus TVET COLLEGE2

Break-even point
Breakeven Quantity = __________________________
Breakeven point = _________________________
(Breakeven sales level in dollar terms)

Rate of return = Amount received - Amount invested X 100

Amount invested

Price per unit= Cost per unit + profit (25% of unit cost)

Unit cost= Total fixed cost +Total variable cost

Quantity

Prepared by: Tubba M. ICT HNS Department