Logo

Photo

Manual seed bed maker

By: ……………………….

Sector: Agriculture

Department: Crop Production

Transferable to Small enterprise

December 2022

……………………….
 Business plan
1. Executive Summary

Name of business: …………………………….

Legal form: Partnership

Contact address: ……………………….

Tel: ……………………….

Type of business: Merchandize

Brief description of the business idea

Products
 The processed organic fertilizer is fresh, with good quality and desired color.
Customers / target group:
 Local producers around Durbetie and the neighboring woreda
 Small individual Smes in Durbetie
Owner(s)

N N Add Qualification Positi Mini

o a ress on mum
m experi
e ence
1 10+2 Produ 2
ction
expert
2 10+2 Produ 2
ction
expert
2. Business Idea and Market
2.1. Description of the business idea
There is no enterprise which established for Manual seed bed maker use in Durbetie district. Therefore this
business will establish to satisfy quality fertilizer demand for customers and the society who is living in the
town, local producer and retailers as well as other interested groups will be the major customers of our product.
Those customers will get our product through retailers and with retailing (direct contact our enterprise).
2.2. Description of the market
Our project area is found in Amhara region, West Gojjam zone, Durbetie woreda town 06 Kebele 5 km away
from DURBETIE ATVET College in the south direction. The types of customer are urban people, local
farmeres, retailers and other interested groups. There is no fertilizer processing enterprise to satisfy increased
demand of the users; the present selling price of one kilo gram fertilizer is 5.00 birr, considered costs which
incurred for packing and processing.

3. Marketing Plan Product

Detailed description of the product or product range or service
In this project the possible source of unprocessed material are local livestock producers and farm output seller
organizations which are established in organic production. This project will produce 200 lit processed per hour.
Product/service type:
 Service/product
What is special about the product/ the unique characteristics of the product?

 The product is processed, packed, have good quality with desired color according to the need of the
customers and in different amount.
Specification of the product (e.g. size, color, quality, Packaging etc)
The product is processed, packed, have good quality with desired color according to the need of the
customers and in different amount. . This project will pack fertilizer in different quantities (5kg pack, 10kg
pack, 15kg pack in number).

5. Marketing Plan Price

Product Honey Price (ETB)

How much are  Highest : 7
customers willing to  Average: 5
pay?  Lowest: 3

Competitors’ price?  Highest:

 Average: There is no
 Lowest: Competitors’
Our price  Highest: 6
 Average: 5
 Lowest: 4
Reasons for setting Based on Competitors’ price
our price? and customers willing to pay
Margin for discount? Yes (6.25%)

6. Marketing Plan Place

Location of the business

Our project area is found in Amhara region, west Gojjam zone, Durbetie woreda DURBETIE town 06 Kebele
5 km away from DURBETIE ATVET College in the south direction.

Reason for choosing this location:

No competitors in DURBETIE district
High demand of good quality fertilizer
Availability of un processed material
Availability of local buyer producers
Reaching the customers by selling to:
􀂉 Individuals 􀂉 Retailers 􀂉 Wholesalers 􀂉 all 􀂉 others
Reason for choosing this way of distribution:
Easy access to address the customers
Individuals willingness to take the product from the area
7. Marketing Plan Promotion

The business product will be promoted by using various promotion techniques such as printed information,
brochures, posters, newspaper articles, business cards, opening ceremony, etc.

Legal Form
The legal form of the business will be:- □ Partnership
Reason for choosing this legal form:
 To maximize the investment capital
 For experience sharing and To be competent
 For sharing the risk of the enterprise
Start-Up Capital

Estimation of start-up capital Unit Amount/ETB/

INVESTMENT

Land M2 To be given by the gov’t

Building/house No 0.00
Equipment pcs 67,446.00
Total Investment Birr 0.00
12 months of pre- operational expense Birr 1,000.00
WORKING CAPITAL Birr
12 months of staff costs Birr 73,200.00
12 months of operational costs Birr 91,675.00
12 months overhead expenses 13,377.00
Total working capital Birr 0.00
TOTAL START-UP CAPITAL(Total Investment + pre- 310,823.00
operational expense + Total working capital) Birr
Sources of Start-Up Capital

Sources of funding

Type Source Conditions Amount

(duration/interest)
Equity capital  Own savings Partner Contribution from partners 73,964.60
Loan 1 􀂉 Family
􀂉 Friends
􀂉 Money lender
Loan 2 􀂉 Credit cooperative
Government scheme For 3 years 13% interest 310,858.40
􀂉 Bank loan
TOTAL FUNDING 389,823.00
Specification of investment items

Investment item Specification Price

Land Surface 240m2 To be given from the

government

Building Constructed with mud in 90m2 53,125.00

Equipments Stainless steel Electrical 57,446.00
&manual honey Extractor and
other materials & tools
TOTAL ACQUISITION COSTS 0.00

Information about funding sources

Loan 1
Name and address of creditor or credit institution
Amhara Credit and Saving Institution Durbetie branch.
Credit agreement under discussion 􀂉 finalized

Money available on (date) 09/14/2023

Debt Service

Pmt. Payment date Schedule Principal Interest Ending

No payment/ ETB ETB Balance
Installment ETB ETB
1. 10/14/2014 1340.65 6300.43 2841.80 226,557.97
2. 11/14/2014 1340.65 5357.85 2454.38 221,200.13
3. 12/14/2014 1340.65 5415.89 2396.33 215,784.23
4. 1/14/2015 5474.56 2337.66 210,309.67
5. 2/14/2015 1340.65 5533.87 2278.35 204,775.80
6. 3/14/2015 1340.65 5593.82 2218.40 199,181.98
7. 4/14/2015 1340.65 5654.42 2157.80 193,527.56
8. 5/14/2015 1340.65 5715.68 2096.55 187,811.88
9. 6/14/2015 1340.65 5777.60 2034.63 182,034.28
10. 7/14/2015 1340.65 5840.19 1972.04 176,194.10
11. 8/14/2015 1340.65 5903.46 1908.77 170,290.64
12. 9/14/2015 1340.65 5967.41 1844.82 164,323.23
13. Year One Total 10725.2 68535.18 26541.53

14. 10/14/2015 1340.65 6032.06 1780.17 158,291.17

15. 11/14/2015 1340.65 6097.40 1714.82 152,193.77
16. 12/14/2015 1340.65 6163.46 1648.77 146,030.31
17. 1/14/2016 1340.65 6230.23 1581.99 139,800.08
18. 2/14/2016 1340.65 6297.72 1514.50 133,502.35
19. 3/14/2016 1340.65 6365.95 1446.28 127,136.40
20. 4/14/2016 1340.65 6434.91 1377.31 120,701.49
21. 5/14/2016 1340.65 6504.63 1307.60 114,196.86
22. 6/14/2016 1340.65 6575.09 1237.13 107,621.77
23. 7/14/2016 1340.65 6646.32 1165.90 100,975.44
24. 8/14/2016 1340.65 6718.33 1093.90 94,257.12
25. 9/14/2016 1340.65 6791.11 1021.12 87,466.01
26. Year two total 37538.2 213927.57 69972.55

27. 10/14/2016 1340.65 6864.68 947.55 80,601.33

28. 11/14/2016 1340.65 6939.04 873.18 73,662.29
29. 12/14/2016 1340.65 7014.22 798.01 66,648.07
30. 1/14/2017 1340.65 7090.21 722.02 59,557.87
31. 2/14/2017 1340.65 7167.02 645.21 52,390.85
32. 3/14/2017 1340.65 7244.66 567.57 45,146.19
33. 4/14/2017 1340.65 7323.14 489.08 37,823.05
34. 5/14/2017 1340.65 7402.48 409.75 30,420.57
35. 6/14/2017 1340.65 7482.67 329.56 22,937.90
36. 7/14/2017 1340.65 7563.73 248.49 15,374.17
37. 8/14/2017 1340.65 7645.67 166.55 7,728.50
 38. 9/14/2017 1340.65 7644.77 83.73 -
39. Year Three Total 91164.2 515237.43 146225.8

Grand Total 311,240.13 361,858.40 389,381.73

Depreciation cost

No Investment item Investment Lifespan Depreciation Depreciation

cost/ETB (year) (in %) (in ETB)
1 Buildings 53125.00 20 5 2656.25
2 Simple machines & hand tools 57446.00 8-10 12.5 - 10 7180.75
Total 0.00 50
Organization and Staff
Staff costs

Total
No Name Position Qualifications Salary Per Social staff cost
month security
1 A Manager B.Sc.in management 2000.00 - 24000.00
2 B Production Diploma 1000.00 - 12000.00
expert
3 C Production Diploma 1000.00 - 12000.00
expert
4 D Sales man Diploma 800.00 - 9600.00
5 E Guard Grade 8 and above complete 500.00 6000.00
Total cost staff 0.00

Organizational Structure

Manager

Expert Expert Packer Sales man

Organization of business premises Guard

 Farm layout
Area-500 m2

WGreenhouse 1

Greenhouse 2

Greenhouse 3
Office

Fertilizer production area Guard house

E.Gate
 Business Operation and Costs

Monthly Sales Plan

Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
Seedling Price 60 60 60 60 60 60 60 60 60 60 60 60
Quantit 1,500 1,500 1,500 2,550 2,550 2,700 3,000 3,000 3,000 3,000 3,000 3,000 3000
y/6.5
kg
Turnov 90,000 90,000 90,000 153,00 153,000 162,000 180,000 180,000 180,000 180,000 180,000 180,000 1818000
er 0
By Price 80 80 80 80 80 80 80 80 80 80 80 80
product Quantit 281.25 281.25 281.25 478.12 478.125 506.25 562.5 562.5 562.5 562.5 562.5 562.5 5681.25
(wax) y 5
6.5/kg
Turnov 22,500 22,500 22,500 38,250 38,250 40,500 45,000 45,000 45,000 45,000 45,000 45,000 454500
er
All Turnov 125,500 125,500 125,500 191,250 191,250 202,500 225,000 225,000 225,000 225,000 225,000 225,000 2311500
products er
Monthly Operational Cost Plan
Planning is based on the monthly sales plan
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
Seedling Quantity 1,875 1,875 1,875 3,187.5 3,187.5 3,375 3,750 3,750 3,750 3,750 3,750 3,750 25875
/kg/
Materials All costs/kg 75,000 75,000 75,000 127,500 127,500 135,000 150,000 150,000 150,000 150,000 150,000 150,000 1515000
Materials Total costs 75,000 75,000 75,000 127,500 127,500 135,000 150,000 150,000 150,000 150,000 150,000 150,000 1515000
+ Staff Total costs 6100 6100 6100 6100 6100 6100 6100 6100 6100 6100 6100 6100 73200
 + Others Total costs 295 295 295 295 295 295 295 295 295 295 295 295 3540
= Total costs 158271 158272 158273 261395 261395 141,395 310152 310153 310154 310155 310156 310157 2999928
Operatio
n
+ Capital Interest 2511. 2454. 2396. 2337. 2278. 2218. 2157. 2096.5 2034.6 1972.0 1908.7 1844.8 26211.53
cost 80 38 33 66 35 40 80 5 3 4 7 2
Depreciatio 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 9837.12
n
= Grand Total 319873. 319818. 319762. 525947.4 525888.1 424209.1 623281.5 623222.3 623162.3 623101.8 623040.5 622978.5 36048.65
costs 56 14 09 2 1 6 6 1 9 3 8

Cash Flow Plan

Monthly Cash Flow Plan
Month Pre- 1 2 3 4 5 6 7 8 9 10 11 12
operati
on
Cash 289,823.0 86,577.00 128,170. 169,820.8 211,529.49 266,546.8 321,623.48 380,510.08 446,957.28 513,465. 580,036. 646,669. 713,365.
beginning of 0 20 2 3 73 10 06 29

the month
+ Equity 57,964.60
+ Loans 231,858.4
0
+ Sales - 125,500 125,500 125,500 191,250 191,250 202,500 225,000 225,000 225,000 225,000 225,000 225,000
+ Any other - 0 0 0 0 0 0 0 0 0 0 0 0
I: Total cash 289,823.0 125500 125500 125500 191250 191250 202500 225000 225000 225000 225000 225000 225000
inflow 0

+ Investment 110,571.0
 0
+ Operational 91,675. 251000 251000 251000 382500 382500 141,395 450000 450000 450000 450000 450000 450000
cost
+ Interest - 2511.80 2454.3 2396.33 2337.66 2278.35 2218.40 2157.80 2096.55 2034.63 1972.04 1908.7 1844.82
8 7
+ Any other 1,000.00
II: Total cash 1072715 253511.8 253454. 253396.33 384837.66 384778.35 143613.4 452157.8 452096.55 452034.6 451972.0 451908. 451844.8
out 38 3 4 77 2

I – II 86,577.00 128,170.20 169,820. 211,529.4 266,546.83 321,623.4 380,510.08 446,957.28 513,465.73 580,036. 646,669. 713,365. 780,125.
Cash at the 82 9 8 10 06 29 47

end of the
month
Profit Margin
Monthly Estimation of Net Profit
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
Seedling Quantity 1,500 1,500 1,500 2,550 2,550 2,700 3,000 3,000 3,000 3,000 3,000 3,000
Turnover 90,000 90,000 90,000 153,00 153,00 162,00 180,00 180,00 180,000 180,00 180,000 180,000 1818000
0 0 0 0 0 0
Byproduc Quantity 281.25 281.25 281.25 478.12 478.12 506.25 562.5 562.5 562.5 562.5 562.5 562.5 5681.25
t (wax) 5 5
Turnover 22,500 22,500 22,50 38,250 38,250 40,500 45,000 45,000 45,000 45,000 45,000 45,000 454500
0
I. Total 125,500 125,500 125,50 191,250 191,250 202,50 225,00 225,000 225,000 225,000 225,000 225,000 2186000
Sales 0 0 0
- operation Total costs 239782.25 239783.25 239784. 385532.1 385533.1 141,395 453569.5 453570.5 453571.5 453572.5 450562.5 453574.5 4350231
25 3 3
-Capital Interest 2511.80 2454.38 2396. 2337.66 2278.35 2218.40 2157.80 2096.55 2034.63 1972.04 1908.77 1844.82 26211.53
33
cost Depreciation 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 9837.12
II. Total 243113.8 482840.6 48278 774221. 774164. 552645. 910116. 910057. 909997. 909936. 903853. 909813. 8763545.65
Costs 1 4 4.59 67 36 41 56 31 39 80 53 58
I – II Profit 40888. 54197.5 54256.8 58066.8 65627.4 65688.6 65750.6 65813.2 65876.4 65940.4 683711.35
(before tax) 40773.44 40830.86 91 8 9 4 4 9 1 0 7 2
- Income tax 221,348.97
((Gross profit *35%)- 7950.00)
Net profit 482,364
(after tax)
.38
 Opening Balance
Opening Balance of My Business (Date)

Assets Value Liabilities Value

Fixed Assets Equity 67,964.60

Land Long-Term Liabilities

Building 53,125.00 Mortgage
Equipments 74,446.00 Loans 281,858.40
Others 112,675.00 Others
Total Fixed Assets Total Long-Term
Liabilities
Current Assets
Current Liabilities
Cash and bank 86,577.00 Accounts payable
Accounts receivable Taxes payable
Inventory Others payable
Total Current Total Current
Liabilities
Total Assets 299823.00 Total Liabilities and 328823.00
Net Worth

 Gross profit margin calculation:

Gross profit margin= contribution margin *100
Sales
Contribution of margin = Sales – total cost /cost of stock
= 6,311,500 – 5,627,788.65
= 793,711.35 ETB

Gross profit margin = Contribution Margin *100

Sales
= 793,711.35 * 100
6,311,500
= 43.58%
Break even = indirect cost (over head cost) = 532.23
Contribution Margin

0
Break even Quantity= total fixed cost
(Price per unit –variable cost per unit)
Price per unit = cost per unit +profit (25% of unit cost)
Unit cost = total fixed cost + total variable cost
Quantity
= 16.7
Price per unit = cost per unit +profit (25% of unit cost)
= 14.84
Variable cost per unit = variable cost
Quantity
Variable cost per unit = 8.03

Break even Quantity= total fixed cost

(Price per unit –variable cost per unit)
Break even Quantity = 55,823.16
Breakeven point = Total fixed cost x price per unit
(price per unit - variable cost per unit) = 213,665.1
Return on investment

Rate of return = Amount received - Amount invested x 100

Amount invested

Rate of return = Amount received - Amount invested x 100 = 413.9

Amount invested

1
 Logo

.................... TECHNIC
COLLEGE

Photo

Potato Trans planter

By: …………………………….
Sector: Agriculture
Department: Horticultural Crop Production
Transferable to Small enterprise

December 2022
………………………………..

2
 Business plan
1. Executive Summary

Name of business: ……………………….. …………….

Legal form: Partnership

Contact address: Durbetie

Tel: ……………..

Type of business: Merchandize

Brief description of the business idea

Products
 The production unit of crop is fresh, with good quaseedlingy and desired color.
Customers / target group:
 Local producers around Durbitie and the neighboring woreda
 Small individual Smes in Durbitie
Owner(s)

No Name Address Qualification Position Minimum

experience
1 B.Sc.in managment Manager 2
2 10+2 Production expert 2
3 10+2 Production expert 2
4 10+2 Sales man 1
5 8 Guard 2

2. Business Idea and Market

2.1. Description of the business idea

There is no enterprise which established for Potato tran planter use in Durbitie district. Therefore this
business will establish to satisfy quaseedlingy fertilizer demand for customers and the society who is
living in the town, local producer and retailers as well as other interested groups will be the major
customers of our product. Those customers will get our product through retailers and with retailing
(direct contact our enterprise).

2.2. Description of the market

3
Our project area is found in Amhara region, West Gojjam zone, Durbetie woreda town 06 Kebele 5
km away from DURBITIE ATVET College in the south direction. The types of customer are urban
people, local farmeres, retailers and other interested groups. There is no fertilizer processing
enterprise to satisfy increased demand of the users; the present selling price of one kilo gram
fertilizer is 5.00 birr, considered costs which incurred for packing and processing.

3. Marketing Plan Product

Detailed description of the product or product range or service

In this project the possible source of unprocessed material are local livestock producers and farm
output seller organizations which are established in organic production. This project will produce
200 seedling processed per hour.

Product/service type:

 Service/product

What is special about the product/ the unique characteristics of the product?

 The product is processed, packed, have good quaseedlingy with desired color according to
the need of the customers and in different amount.
Specification of the product (e.g. size, color, quaseedlingy, Packaging etc)

The product is processed, packed, have good quaseedlingy with desired color according to the need
of the customers and in different amount. . This project will pack fertilizer in different quantities
(5kg pack, 10kg pack, 15kg pack in number).

5. Marketing Plan Price

4
 Product Honey Price (ETB)
How much are  Highest : 7
customers willing to  Average: 5
pay?  Lowest: 3

Competitors’ price?  Highest:

 Average: There is no
 Lowest: Competitors’

Our price  Highest: 6

 Average: 5
 Lowest: 4
6.
Reasons for setting Based on Competitors’ price
our price? and customers willing to pay
Margin for discount? Yes (6.25%)
Marketing Plan Place

Location of the business

Our project area is found in Amhara region, west Gojjam zone, Durbetie woreda DURBITIE town
06 Kebele 5 km away from DURBITIE ATVET College in the south direction.

Reason for choosing this location:

No competitors in DURBITIE district
High demand of good quaseedlingy fertilizer
Availabiseedlingy of un processed material
Availabiseedlingy of local buyer producers

Reaching the customers by selling to:

􀂉 Individuals 􀂉 Retailers 􀂉 Wholesalers 􀂉 all 􀂉 others

Reason for choosing this way of distribution:

Easy access to address the customers

Individuals willingness to take the product from the area
7. Marketing Plan Promotion

The business product will be promoted by using various promotion techniques such as printed
information, brochures, posters, newspaper articles, business cards, opening ceremony, etc.

5
Legal Form
The legal form of the business will be:- □ Partnership
Reason for choosing this legal form:
 To maximize the investment capital
 For experience sharing and To be competent
 For sharing the risk of the enterprise
Start-Up Capital

Estimation of start-up capital Unit Amount/ETB/

INVESTMENT

Land M2 To be given by the gov’t

Building/house No 0.00

Equipment pcs 57,446.00

Total Investment Birr 0.00

12 months of pre- operational expense Birr 1,000.00

WORKING CAPITAL Birr

12 months of staff costs Birr 73,200.00

12 months of operational costs Birr 91,675.00

12 months overhead expenses 13,377.00

Total working capital Birr 0.00

TOTAL START-UP CAPITAL(Total Investment + pre- 299,823.00

operational expense + Total working capital) Birr

Sources of Start-Up Capital

Sources of funding

Type Source Conditions Amount

(duration/interest)

6
Equity capital  Own savings Partner Contribution from partners 57,964.60
Loan 1 􀂉 Family
􀂉 Friends
􀂉 Money lender
Loan 2 􀂉 Credit cooperative
Government scheme For 3 years 13% interest 261,858.40
􀂉 Bank loan
TOTAL FUNDING 299,823.00

Specification of investment items

Investment item Specification Price

Land Surface 240m2 To be given from the

government

Building Constructed with mud in 90m2 53,125.00

Equipments Stainless steel Electrical 57,446.00
&manual honey Extractor and
other materials & tools
TOTAL ACQUISITION COSTS 0.00

Information about funding sources

Loan 1
Name and address of creditor or credit institution
Amhara Credit and Saving Institution Durbitie branch.

Credit agreement under discussion 􀂉 finalized

Money available on (date) 09/14/2023

Debt Service

Pmt. Payment date Schedule Principal Interest Ending

No payment/ ETB ETB Balance
Installment ETB ETB
40. 10/14/2014 1100.65 5300.43 2511.80 226,557.97

41. 11/14/2014 1100.65 5357.85 2454.38 221,200.13

42. 12/14/2014 1100.65 5415.89 2396.33 215,784.23

7
43. 1/14/2015 1100.65 5474.56 2337.66 210,309.67

44. 2/14/2015 1100.65 5533.87 2278.35 204,775.80

45. 3/14/2015 1100.65 5593.82 2218.40 199,181.98

46. 4/14/2015 1100.65 5654.42 2157.80 193,527.56

47. 5/14/2015 1100.65 5715.68 2096.55 187,811.88

48. 6/14/2015 1100.65 5777.60 2034.63 182,034.28

49. 7/14/2015 1100.65 5840.19 1972.04 176,194.10

50. 8/14/2015 1100.65 5903.46 1908.77 170,290.64

51. 9/14/2015 1100.65 5967.41 1844.82 164,323.23

52. Year One Total 13207.8 67535.18 26211.53

53. 10/14/2015 1100.65 6032.06 1780.17 158,291.17

54. 11/14/2015 1100.65 6097.40 1714.82 152,193.77

55. 12/14/2015 1100.65 6163.46 1648.77 146,030.31

56. 1/14/2016 1100.65 6230.23 1581.99 139,800.08

57. 2/14/2016 1100.65 6297.72 1514.50 133,502.35

58. 3/14/2016 1100.65 6365.95 1446.28 127,136.40

59. 4/14/2016 1100.65 6434.91 1377.31 120,701.49

60. 5/14/2016 1100.65 6504.63 1307.60 114,196.86

61. 6/14/2016 1100.65 6575.09 1237.13 107,621.77

62. 7/14/2016 1100.65 6646.32 1165.90 100,975.44

63. 8/14/2016 1100.65 6718.33 1093.90 94,257.12

64. 9/14/2016 1100.65 6791.11 1021.12 87,466.01

8
 65. Year two total 39623.4 211927.57 69312.55

66. 10/14/2016 1100.65 6864.68 947.55 80,601.33

67. 11/14/2016 1100.65 6939.04 873.18 73,662.29

68. 12/14/2016 1100.65 7014.22 798.01 66,648.07

69. 1/14/2017 1100.65 7090.21 722.02 59,557.87

70. 2/14/2017 1100.65 7167.02 645.21 52,390.85

71. 3/14/2017 1100.65 7244.66 567.57 45,146.19

72. 4/14/2017 1100.65 7323.14 489.08 37,823.05

73. 5/14/2017 1100.65 7402.48 409.75 30,420.57

74. 6/14/2017 1100.65 7482.67 329.56 22,937.90

75. 7/14/2017 1100.65 7563.73 248.49 15,374.17

76. 8/14/2017 1100.65 7645.67 166.55 7,728.50

77. 9/14/2017 1100.65 7644.77 83.73 -

78. Year Three Total 92454.6 511237.43 144905.8

Grand Total 281,240.13 231,858.40 49,381.73

Depreciation cost

No Investment item Investment Lifespan Depreciation Depreciation

cost/ETB (year) (in %) (in ETB)
1 Buildings 53125.00 20 5 2656.25
2 Simple machines & hand 57446.00 8-10 12.5 - 10 7180.75
tools
Total 0.00 50

Organization and Staff

Staff costs

Total
No Name Position Qualifications Salary Per Social staff cost

9
 month security
1 A Manager B.Sc.in management 2000.00 - 24000.00
2 B Production Diploma 1000.00 - 12000.00
expert
3 C Production Diploma 1000.00 - 12000.00
expert
4 D Sales man Diploma 800.00 - 9600.00
5 E Guard Grade 8 and above complete 500.00 6000.00
Total cost staff 0.00

Organizational Structure

Manager

Expert Expert Packer Sales man

Guard

Organization of business premises

Farm layout
Area-500 m2

10
 WGreenhouse 1

Greenhouse 2

Greenhouse 3
Office

Fertilizer production area Guard house

E.Gate

11
 Business Operation and Costs

Monthly Sales Plan

Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
potato Price 60 60 60 60 60 60 60 60 60 60 60 60
Quant 1,500 1,500 1,500 2,550 2,550 2,700 3,000 3,000 3,000 3,000 3,000 3,000 3000
ity/6.5
kg
Turno 90,000 90,000 90,000 153,00 153,00 162,00 180,00 180,00 180,00 180,00 180,000 180,00 1818000
ver 0 0 0 0 0 0 0 0
By Price 80 80 80 80 80 80 80 80 80 80 80 80
product Quant 281.25 281.25 281.25 478.12 478.12 506.25 562.5 562.5 562.5 562.5 562.5 562.5 5681.25
(wax) ity 5 5
6.5/kg
Turno 22,50 22,50 22,50 38,250 38,250 40,500 45,000 45,000 45,000 45,000 45,000 45,000 454500
ver 0 0 0
All Turno 125,500 125,500 125,500 191,250 191,250 202,50 225,00 225,00 225,00 225,00 225,000 225,00 2311500
product ver 0 0 0 0 0 0
s
Monthly Operational Cost Plan
Planning is based on the monthly sales plan
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
potato Quantity 1,875 1,875 1,875 3,187.5 3,187.5 3,375 3,750 3,750 3,750 3,750 3,750 3,750 25875
/kg/
Materials All 75,000 75,000 75,000 127,500 127,500 135,000 150,000 150,000 150,000 150,000 150,000 150,000 1515000
costs/kg
 Materials Total costs 75,000 75,000 75,000 127,500 127,500 135,000 150,000 150,000 150,000 150,000 150,000 150,000 1515000
+ Staff Total costs 6100 6100 6100 6100 6100 6100 6100 6100 6100 6100 6100 6100 73200
+ Others Total costs 295 295 295 295 295 295 295 295 295 295 295 295 3540
= Total 158271 158272 158273 261395 261395 141,395 310152 310153 310154 310155 310156 310157 2999928
Operatio costs
n
+ Capital Interest 2511 2454 2396 2337. 2278. 2218. 2157. 2096. 2034. 1972. 1908. 1844. 26211.53
cost .80 .38 .33 66 35 40 80 55 63 04 77 82
Depreciati 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 9837.12
on
= Grand 319873 319818 319762 525947. 525888. 424209. 623281. 623222. 623162. 623101. 623040. 622978. 36048.65
Total costs .56 .14 .09 42 11 16 56 31 39 8 53 58

Cash Flow Plan

Monthly Cash Flow Plan
Month Pre- 1 2 3 4 5 6 7 8 9 10 11 12
operati
on
Cash 289,823.0 86,577.00 128,170. 169,820.8 211,529.49 266,546.8 321,623.48 380,510.08 446,957.28 513,465. 580,036. 646,669. 713,365.
beginning of 0 20 2 3 73 10 06 29

the month
+ Equity 57,964.60
+ Loans 231,858.4
0
+ Sales - 125,500 125,500 125,500 191,250 191,250 202,500 225,000 225,000 225,000 225,000 225,000 225,000
+ Any other - 0 0 0 0 0 0 0 0 0 0 0 0
I: Total cash 289,823.0 125500 125500 125500 191250 191250 202500 225000 225000 225000 225000 225000 225000
inflow 0
+ Investment 110,571.0
0
+ Operational 91,675. 251000 251000 251000 382500 382500 141,395 450000 450000 450000 450000 450000 450000
cost
+ Interest - 2511.80 2454.3 2396.33 2337.66 2278.35 2218.40 2157.80 2096.55 2034.63 1972.04 1908.7 1844.82
8 7
+ Any other 1,000.00
II: Total cash 1072715 253511.8 253454. 253396.33 384837.66 384778.35 143613.4 452157.8 452096.55 452034.6 451972.0 451908. 451844.8
out 38 3 4 77 2

I – II 86,577.00 128,170.20 169,820. 211,529.4 266,546.83 321,623.4 380,510.08 446,957.28 513,465.73 580,036. 646,669. 713,365. 780,125.
Cash at the 82 9 8 10 06 29 47

end of the
month
Profit Margin
Monthly Estimation of Net Profit
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
Potato Quantity 1,500 1,500 1,500 2,550 2,550 2,700 3,000 3,000 3,000 3,000 3,000 3,000
Turnover 90,000 90,000 90,000 153,00 153,00 162,00 180,00 180,00 180,000 180,00 180,000 180,000 1818000
0 0 0 0 0 0
Byproduc Quantity 281.25 281.25 281.25 478.12 478.12 506.25 562.5 562.5 562.5 562.5 562.5 562.5 5681.25
t (wax) 5 5
Turnover 22,500 22,500 22,50 38,250 38,250 40,500 45,000 45,000 45,000 45,000 45,000 45,000 454500
0
I. Total 125,500 125,500 125,50 191,250 191,250 202,50 225,00 225,000 225,000 225,000 225,000 225,000 2186000
Sales 0 0 0
- operation Total costs 239782.25 239783.25 239784. 385532.1 385533.1 141,395 453569.5 453570.5 453571.5 453572.5 450562.5 453574.5 4350231
25 3 3
-Capital Interest 2511.80 2454.38 2396. 2337.66 2278.35 2218.40 2157.80 2096.55 2034.63 1972.04 1908.77 1844.82 26211.53
cost 33
Depreciation 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 819.76 9837.12
II. Total 243113.8 482840.6 48278 774221. 774164. 552645. 910116. 910057. 909997. 909936. 903853. 909813. 8763545.65
Costs 1 4 4.59 67 36 41 56 31 39 80 53 58
I – II Profit 40888. 54197.5 54256.8 58066.8 65627.4 65688.6 65750.6 65813.2 65876.4 65940.4 683711.35
(before tax) 40773.44 40830.86 91 8 9 4 4 9 1 0 7 2
- Income tax 221,348.97
((Gross profit *35%)- 7950.00)
Net profit 482,364
(after tax)
.38
 Opening Balance
Opening Balance of My Business (Date)

Assets Value Liabiseedlingies Value

Fixed Assets Equity 57,964.60

Land Long-Term
Building 53,125.00 Liabiseedlingies
Equipments 74,446.00 Mortgage 261,858.40
Others 112,675.00 Loans
Total Fixed Assets Others
Total Long-Term
Current Assets Liabiseedlingies

Cash and bank 86,577.00 Current

Accounts receivable Liabiseedlingies
Inventory Accounts payable
Total Current Taxes payable
Others payable
Total Current
Liabiseedlingies
Total Assets 299823.00 Total Liabiseedlingies 299823.00
and Net Worth

 Gross profit margin calculation:

Gross profit margin= contribution margin *100
Sales
Contribution of margin = Sales – total cost /cost of stock
= 2,311,500 – 1,627,788.65
= 783,711.35 ETB

Gross profit margin = Contribution Margin *100

Sales
= 683,711.35 * 100
2,311,500
 = 39.58%
Break even = indirect cost (over head cost)
Contribution Margin
= 16,377
29.58
= 482.23
Break even Quantity= total fixed cost
(Price per unit –variable cost per unit)
Price per unit = cost per unit +profit (25% of unit cost)
Unit cost = total fixed cost + total variable cost
Quantity
= 110,571 + 91,675
30,300
= 11.67
Price per unit = cost per unit +profit (25% of unit cost)
= 6.67 + (6.67 *25%)
= 10.34
Variable cost per unit = variable cost
Quantity
Variable cost per unit = 91,675
30,300
= 6.03

Break even Quantity= total fixed cost

(Price per unit –variable cost per unit)
Break even Quantity = 110,571
(8.34 – 3.03)
= 25,823.16
Breakeven point = Total fixed cost x price per unit
(price per unit - variable cost per unit)
=110,571* 8.34
8.34-3.03
= 183,665.19
Return on investment

Rate of return = Amount received - Amount invested x 100

Amount invested

Rate of return = Amount received - Amount invested x 100

Amount invested
= 452,364.38 – 110,571
110,571
= 34,179,338
110,571
= 312.12

Thanks!