WOLAYITA SODO UNIVERSITY

SCHOOL OF INFORMATICS
DEPARTMENT OF INFORMATION TECHNOLOGY

Course title: Entrepreneurship and small business management

Course code: mgmt -----

Business plan title

TENA Café

BY

MENBERU ABEBE

IT/SU/045/10

Wolaita Sodo, Ethiopia

July 27, 2024
Table of Contents
2. Executive Summary...................................................................................................................................2
2.0 Objectives................................................................................................................................................3
2.1 Mission..................................................................................................................................................3

3. Company description.................................................................................................................................3
3.1 Company Location...............................................................................................................................3
4. Services......................................................................................................................................................4
4.1 Service Description..............................................................................................................................4
4.2 Competitive Comparison.....................................................................................................................4
4.3 Technology..........................................................................................................................................4
5. Industrial Analysis.....................................................................................................................................5
5.1 Market Segmentation..........................................................................................................................5
5.2 Target Market Segment Strategy.........................................................................................................5
5.3 Market Needs......................................................................................................................................5
5.4 Service Business Analysis.....................................................................................................................6
5.6 Distributing a Service...........................................................................................................................6
6.2 Pricing Strategy....................................................................................................................................7
6.3 Sales Strategy.......................................................................................................................................7
7. ORGANIZATION PLAN................................................................................................................................8
8) ASSESMENT OF RISK................................................................................................................................10
9. Financial Plan.............................................................................................................................................9
9.1 Start-up Funding..................................................................................................................................9
9.2 Projected Profit and Loss.....................................................................................................................9
11) Appendix................................................................................................................................................10
1. Introduction
TENA cafe, woloayita sodo

Owner: THEGA

PHON: 0918562493

This small business will provide cafe based service, special coffee, soft drinks and baked goods.
Other services included in this small business are internet service for entertainment.

Initial financing requested is 200,000 birr loan to be paid off over five years. This balance will
cover furniture and other all row materials which used to start the business running capital to
cover expenses in the first year.

2. Executive Summary
TENA café located in wolayita sodo city offers perfect spot for the public in social gathering and
leisure. It provides customers free access to the Internet as well as an area for to meet together in
a casual environment under an economical manner.
The business intends to obtain finance from external equity in the amount of 100,000 BIRR, for
which the application will be for commencing work on shop renovation, equipment purchases,
and as operating cash flow. Initial capital injection has already been secured by the initial owners
mrAbrham and mrGossa, in the amounts of 50,000 birr and 50,000 birr respectively.
TENA Café will be incorporated as a limited liability company.
The two initial owners will be the shareholders and their personal liabilities will be subject to a
ceiling at the amount of their respective investments.
The finance acquired through this business proposal will allow
TENA Café to successfully open and operate as a well-known café.
A comfortable and innovative environment is provided to the customers with a casual
atmosphere. Operations in year one will generate TENA Café a regular customer base that will
allow it to be self-maintained in year two.
1. Description of the venture
1.1 Objectives
TENA Café’s objectives for the first year of operation include:
 The creation of an exclusive, sophisticated, innovative environment that will distinguish
TENA Café from other coffee shops.

 The creation of a comfortable and casual environment that will bring people with
different interests and backgrounds together for socialization.

 High-quality coffee and bakeries at a reasonable price.

 Free access to online services.

1.1 Mission
As Internet has become more popular and grown at an expeditious pace, easy access has become
a part of life.

TENA Café provides the public free access to the Internet, high-quality food and beverages in a
comfortable environment. People from different backgrounds will come to enjoy the exclusive,
stylish, and innovative environment that TENA Café offers..

3. Company description
TENA Café, soon to be opened at wolayita sodo, will provide the public free access to the
Internet and a special and innovative environment for enjoying top quality coffee, special drinks
and bakeries.
Individuals of all ages and backgrounds will find TENA Café attractive.
The staffs of TENA Café provide not only top quality service but also helpful directions to
customers in computer usage. This educational aspect will attract elderly customers and
youngsters who do not own computers at home. The easy access location also provides residents
in the same area convenience to their pleasure-loving and online needs.

3.1 Company Location

A site has been chosen in wolayita sodo for the following reasons:
• Nearness to the close-by populations.
 • Closeness to sophisticated, upscale restaurants in the same area.

• High visibility.

1.3 Services /services

TENA Café will provide coffee, special drinks, baked goods, free access to the Internet and
computer services to customers. It will also provide customers with a unique and innovative
environment for enjoying top quality coffee and bakeries.

4.1 Service Description

TENA Café will provide its customers free access to the Internet and common computer
software and hardware. Some of the Internet and computing services available to TENA Café’s
customers are listed below:
• Internet browsers.

• Coffee and other sophisticated drinks

• Baked goods

Also, top quality food and beverages, and a comfortable environment will provide TENA Café’s
customers with a second home, a place to enjoy the benefits of computing in a comfortable
environment.

4.2 Competitive Comparison

TENA Café will be the first well known café in wolayita sodo. It will differentiate
itself from other ordinary coffee shops in the same area by providing its customers

with free Internet services.

4.3 Technology
TENA Café will invest in high-speed computers to provide its customers with a fast and efficient
connection to the Internet.
The computers will be reliable and fun to work with. TENA Café will continue to upgrade and
modify the systems to stay with current technologies
2. Industrial Analysis
TENA Café is facing the opportunity of being the pioneer in the wolayita sodo café market.
The consistent popularity of coffee, combined with the growing interest in the Internet, has been
proven to be a winning concept in other markets and will produce the same results in wolayita
sodo.

5.1 Market Segmentation

TENA Café’s customers can be divided into two groups.
The first group is familiar with the Internet and desires a progressive and inviting atmosphere
where they can get out of their offices or bedrooms and enjoy a great cup of coffee.
The second group is not familiar with the Internet, yet, and is just waiting for the right
opportunity to enter the online community.
TENA Café’s target market falls anywhere between the ages of 12 and 65. This extremely wide
range of ages is due to the fact that both coffee and the Internet application to a variety of people.
In addition to these two broad categories, TENA Café’s target market can be divided into more
specific market segments. The majority of these individuals are students and business people.

5.2 Target Market Segment Strategy

TENA Café intends to satisfy to people who want a guided visit on their first rotation around the
Internet and to experienced users willing to treat their thirst for computers in a social setting.
Furthermore TENA Café will be a magnet for local and traveling professionals who desire to
work or check their email messages in a friendly atmosphere. These professionals will either use
TENA Café’s PCs, or plug their notebooks into Internet connections.

5.3 Market Needs

Factors such as current trends, addiction, and historical sales data ensure that the high demand
for coffee and Internet access will remain constant over the next five years.
TENA Café will enjoy the developer advantages of name recognition and customer reliability.
Initially, TENA Café will hold a 90 percent share of the
Well known café market in wolayita sodo. In the next five years, competitors will enter the
market. TENA Café has set a goal to maintain greater than a 60 percent market share.
5.4 Service Business Analysis
The selling coffee industry in BB experienced rapid growth from the precious’s and is now
moving into the mature stage of its life cycle. Many factors contribute to the large demand for
high-quality coffee in wolayita sodo. The top coffee organization is a main source of demand for
coffee sellers. The climate in wolayita sodo is extremely favorable to coffee consumption.
Current trends in this high-spending inhabited area reflect the popularity of fresh and strong
coffee. wolayita sodo is a haven for coffee lovers.
The popularity of the Internet is growing exponentially. Those who are familiar with the Internet
are well aware of how fun and addictive going online can be. Those who have not yet
experienced with the Internet need a convenient, relaxed atmosphere where they can feel
comfortable learning about and utilizing the current technologies. TENA Café seeks to provide
its customers with affordable Internet access in an innovative and supportive environment.
Due to powerful competition, café owners must look for ways to differentiate their place of
business from others in order to achieve and maintain a competitive advantage.
The founder of TENA Café realizes the need for differentiation and strongly believes that
combining a café with complete Internet service is the key to success.
The fact that no well-known cafés are established in Wolayita sodo, presents TENA

5.5 Competition and Buying Patterns

In the market there is great computation between each individual café .
However, TENA Café will offer substantial computing services to its customers which these
competitors are not providing at the moment.

5.6 Distributing a Service

The dual product/service nature of TENA Café’s business faces competition on two levels.
TENA Café competes not only with coffee shops, but also with Internet service providers. The
good news is that TENA Café does not currently face any direct competition from other well-
known cafés in the Wolayita sodo market.
Heavy competition between coffee shops in wolayita sodo creates an industry where all firms
face the same costs.
There is a positive relationship between price and quality of coffee. Some coffees retail at 3
birr/cup while other, more interesting beans may sell for as high as 4 birr/cup.
5. Marketing plan
5.1 Marketing Strategy
TENA Café will position itself as a sophisticated coffee house and Internet service provider. It
will serve high-quality coffee and specialty beverages at competitive prices.
Due to the number of cafés in Wolayita sodo, it is important that TENA Café sets fair prices for
its products.
TENA Café will use advertising as its main source of promotion. Advertisements placed in food
magazines will help build customer awareness. Accompanying the ad will be a form for
discounted coffee and nice bakeries.

5.1 Promotion Strategy

TENA Café will implement a pull strategy in order to build consumer awareness and demand.
Initially, TENA Café has budgeted 10,000 birr for promotional efforts which will include
advertising with food magazines and in-house promotions such as offering customers free drinks.
TENA Café realizes that in the future, when competition enters the market, additional revenues
must be allocated for promotion in order to maintain market share.

5.2 Pricing Strategy

Determining a fair market for which other well-known café is more difficult.
TENA Café has to base its prices for coffee and specialty drinks on the “marketing profit
analysis” provided by our supplier, and has developed a solid pricing strategy.

5.3 Sales Strategy

As a retail establishment, TENA Café employs people to handle sales transactions. Computer
knowledge is a prerequisite for TENA Café employees. If an employee does not possess basic
computer skills when they are hired, they are trained by our full-time technician. Our full-time
technician is also available for customers in need of assistance. TENA Café’s commitment to
friendly, helpful service is one of the key factors that distinguish itself from other cafés.

5.4 Sales Forecast

Cost of Sales: The cost of goods sold for coffee-related products was determined by the "retail
profit analysis" we obtained from
Source Coffee.
• The cost of bakery items is in some of the selling price.
 • The cost of Internet access is also in some present per month, paid to PC-Net for
networking fees.

6. ORGANIZATION PLAN
Owner ship of the CAFE:

6.1 Partnership
A partnership is an unincorporated business association between all these five individuals who
joined together to carry on a business. Each partner contributes money, labor, property or skills
to the partnership. In return each partner is entitled to a share of the profits or losses in the
business.
This share is determined through all the five owners’ agreement.
The reason why we select this type of owner ship is by considering its advantages as follows:
• Financial resources and talent are pooled from all the members of the partnership.
• Simple and inexpensive to form. Registration fee and taxes become easy because each
owner contribute actively.
• It is often easier for a partnership to obtain capital than other forms of business ownership
because the financial resources of all the partners can be used as security.
• In this ownership system, taxes are paid through each partner’s personal income tax so
the same savings are possible.
• All profits are divided among the owners as per the partnership agreement.
• It is always possible to incorporate later as the business grows
• Although some doubts will rise like disagreements with
• Member
s and difficult to manage properly, by considering that group hand are leader to win each
individual stands to openly participate and to solve problems around the table.
7. Financial Plan
The following sections lay out the details of our financial plan for the next three years.

7.1 Start-up Funding

This business plan is prepared to obtain supporting in the amount of 200,000 birr The
supplemental financing is required to begin work on site preparation and modifications,
equipment purchases, and to cover costs in the first year of operations.
This amount is planned to be repaid by 400,000 each year by sex years.

7.2 Projected Profit and Loss

Payroll Expense: The founder of TENA Café, THABG, will receive a salary of 8342 birr in year
one,16684 birr in year two, and 25026 birr in year three.
TENA Café intends to hire four part-time employees in year one at 700 birr/month and a full-
time technician at 2000/month. .
Utilities Expense: As stated in the contract, the lessor is responsible for the payment of utilities
including gas, garbage disposal, and real estate taxes.
The only utilities expenses that TENA Café must pay are electricity and the phone bill generated
by fourteen phone lines;
Marketing Expense: TENA Café will allocate 10,000 birr for promotional expenses over the first
year. This amount will be used for advertising in food magazines in order to build consumer
awareness.
Insurance Expense: A Café has allocated 9000 birr for insurance for the first year. As revenue
increases in the second and third year of business, TENA Café intends to invest more money for
additional insurance coverage.
• From our small business plan we concluded that.it is possible to manage any business
company.

• Business plan creates a confides to an entrepreneur to manage his or her venture.

• We are awarded how to prepare and use a small business plan in business area in order to
be effective.
8. ASSESMENT OF RISK AND CONTINGENECIES
Not only business ventures, but also each every activity will be faced with some potential
hazards and drawbacks that raised behind the excellent contributions of the profitable activities.
So, to reduce and compromise these problems the TENA CAFÉ designed the common legal
documents so as to reduce hazards and save the well style of each owners and customer as a
whole.
These documents are listed and accepted by the all five owners’ free agreement.
Each activities that are running on the café is on this common guidelines.
• Each owner should have do to full fill the vision and the mission of the TENA café.

• All person (owner) are pleased by his or her smart working to business.

• New and positive ideas are encouraged on the business.

• Each owner has a full right to share the profits equally.

• Each owner should have mention and know the objectives of the business with short and
long term.

• A clear commitment should have built so as to implement the working activities.

• For any negative and unwanted activities, the whole individual is responsible from
protection to asking by the law.

10. Appendix
• Coffee and internet service which is advertised during promotion.

• Food magazines

• The price of coffee per cup 10 and 12 BIRR