EXECUTIVE SUMMARY

Introduction

Michele mushrooms solutions is a start-up mushrooms factory venture located in Kicukiro

district KABEZA sector and local Giporoso cell Tel:0788966955

Email:[email protected]. Michelle mushrooms solutions expects and intends to grab

and maintain its royal customers with a variety in mushrooms products. The company is

looking forward to segment and strengthen its market in town for the presence of banking

services, presence of business partners, and favorable climate for the mushrooms to

flourish. This company will adjust its pricing depending on the local financial capabilities

of clients and market trends to satisfy the local market and residents and will have a

strategic location as it is located in an area where there are a lot of restaurants and hotels

to consume its mushrooms.

Type of company
Michele mushrooms solutions is going to operate as partnership venture. It will be

equally owned and managed by its 2 partners. Munana Kevine has a certified public

accountant with a work experience in government agencies and owns her own family

venture. Ineza Michele will provide the experience in the area of management and

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administration, the company intends to hire two full-time farmers and 2 part-time sales

managers to handle customer service and day to day operations..

KEY CONTRACT

Ineza Michele Owner 07888888888

Munana Kevine Co-founder 07222222222

Shyaka Credo CEO 07844444444

1.1. Products and Services

Michele mushrooms solutions will supply in big numbers the processed and unprocessed

mushrooms, packed and unpacked mushrooms, raw and mushrooms powder, as well as

the preparation center for those who wants to learn how to produce and grow seeds for

mushrooms with different specialization.

Michele mushrooms solutions will pack its mushrooms in small and big bags depending

on the clients needs with different kilograms by providing good experience to customers

with good packaging and providing transport means for our clients who buys in big

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numbers. We will provide freshly prepared mushrooms products at all times during

business operations.

1.2. The market

The meat market is experiencing a steep rise and ever growing price is leading to shift of

meat consumption to mushrooms as complementary meals the taste is close people are

starting to shift to mushrooms as they are affordable, the cold climate of Rwanda

supports the growth of mushrooms as they flourish in a cold climate..

Michele mushrooms solution is looking forward to defining its own loyal customers with

a regular base, and will therefore concentrate its business and marketing on local

residents, and will be the dominant target market. This will establish a healthy, consistent

revenue base to ensure stability of the business. In addition, local communities is

expected to comprise approximately 60% of the revenues. High visibility and competitive

products and service are critical to capture this segment of the market.

1.3. Financial Considerations

Michele mushrooms solutions will be looking forward to raise UDS3,000,000 as start up

capital, and will borrow USD1,000,000 as agreed by the African development bank as

20-year loan. This provides the bulk of the current financing required.

Michele mushrooms solutions looks forward to have a bunch of sales of about USD

5,000,000 in the first year, USD 15,100,000 in the second year, and USD20,000,000 in

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the third year of the plan. Michele mushrooms solutions look forward to break even by

the Quarterly of the year of its operation as it steadily increases its sales. Profits for this

time period are expected to be approximately USD 900,000 in year 1, USD 2,000,000 by

year 2, and USD6,000,000 by year 3. The company does not anticipate any cash flow

problems.

1.4. Vision and mission statement

Michele mushrooms solutions Vision is to become the best mushrooms production

company in Rwanda

Mission is to provide with its customers products of high quality and smooth services,

.At a competitive price to meet the demand of the middle- to higher-income local

market area residents and students.

2.1.1 Keys to Success

Keys to success for Michelle mushrooms solutions will include:

1. Providing the highest quality product with personal customer service.

2. Competitive pricing.

2.1.2 Values and principles on which the business stands

 Commitment

 Adaptability

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  Respect

 Empowerment

 Hard working

 Passionate on our business

3. COMPANY SUMMARY

Michelle mushrooms solutions is a mushrooms production industry created by co-

founders and managed by two partners. These partners represent sales management and

finance, administration, marketing, cashier, customer care service, human resource, areas,

respectively. The partners will provide funding from their own savings, which will cover

start-up expenses and provide a financial cushion for the first months of operation.

A twenty- year Bank African development bank loan will cover the rest of the required

financing. The company plans to build a strong market position in the town, due to the

partners' industry experience and mild competitive climate in the area.

3.1. Company Ownership

THE AMAHORO RESTAURANT is partnership in the country of RWANDA. It is

equally owned by its three partners.

3.2. Start-up Summary

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Michele mushrooms solutions is a start-up company. Financing will come from the

partners' capital and 20 year loan. The following chart and table illustrate the company's

projected initial start-up costs.

Strat-up requirements

Strat-up expenses USD

Legal 400,000

Rent 300,000

Expensed equipment 150,000

Other 150,000

Total start-up expenses 1,000,000

Start-up asset

Cash required 90,000

Other current assets 30,000

Long-term assets 350,000

Total start-up assets 470,000

Start-up funding

Strat-up expenses 130,000

Strat-up asset 470,000

Total funding required 600,000

4. PRODUCTS AND SERVICES

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Michele mushrooms solutions will provide mushrooms services like providing processed

and unprocessed mushrooms with high quality and experienced workers with high level

of professionalism.

5. BUSINESS PROFILE

5.1. Stage of growth

Michele mushrooms solutions looks forward to sales of about USD6,000,000 in the first

year, USD15,005,000 in the second year, and USD17,000,000 in the third year of the

plan. The plan is that it should break even by the 12 months from the beginning of the

business of its operation, as it steadily increases its sales. Profits for this time period are

expected to be approximately Rwf858,900 in year 1, Rwf2,486,750 by year 2, and

Rwf3,608,150 by year 3. The company does not anticipate any cash flow problems.

5.2. Company goals

Operational goals: we plan to increase the number of workers and increase hours of

working in order to satisfy all customers including the night shifts worker around us.

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Financial goals: as we have presented in the financial plan our business will grow in the

future. As a goal we are planning that in range 5 to 15 years we will be experiencing over

USD30,000,000 as profit of the business.

6. MARKET ANALYSIS SUMMARY

Michelle mushrooms solutions focus is on meeting the demand of a regular local resident

customer base, as well as a significant level of student and staff from nearby or highways.

6.1. Market Segmentation

Michelle mushrooms solutions focuses on the middle- and upper-income markets. These

market segments consume the majority mushrooms products.

Local Residents wants to establish a large regular customer base. This will establish a

healthy, consistent revenue base to ensure stability of the business.

6.1.1. Market Analysis

The chart and table below outline the total market potential of the above described

customer segments.

6.1.2. Target Market Segment Strategy

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The dominant target market for Michelle mushrooms solutions is a regular stream of

local residents. Personal and expedient customer service at a competitive price follow the

government roles in order to maintaining the local market share of this target market.

6.2. Market Needs

Kigali has a lot of residents. Among those residents there are people who can afford to

buy meat and others can’t. for those who can’t, mushrooms can be the solution. along

with a slower but consistent demand for meat products, mushrooms are being a good

alternative to meats consumption.

6.3. Service Business Analysis

The mushrooms industry in the RWANDA has recently experienced rapid growth. The

cold climate in KIGALI stimulates the rapid growth of mushrooms in Kigali.

mushrooms in the town of KIGALI can be consumed by tourist about the quality across

the region.

Despite low competition in the immediate area, Michelle mushrooms solutions will

position itself as a place where customers can enjoy a plate of delicious mushrooms with

a relaxing environment.

7. STRATEGY AND IMPLEMENTATION SUMMARY

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Michelle mushrooms solutions will succeed by offering consumers high quality

mushrooms products with personal service at a competitive price.

7.1. Competitive Edge

Michelle mushrooms solutions competitive edge is the relatively low level of competition

in the local area in this particular niche.

7.2. Sales Strategy

Michelle mushrooms solutions anticipates sales of about Rwf6,665,000 in the first year,

Rwf11,025,000 in the second year, and Rwf14,995,000 in the third year of the plan.

8. MANAGEMENT SUMMARY

Munana Kevine has extensive experience in sales, finance, and management, and was an

assistant in her mom’s shop where he used to distribute Food. An Ineza michelle brings

experience in the area of marketing and administration.

8.1. Personnel Plan

As the personnel plan shows, Michelle mushrooms solutions expects to make significant

investments in sales, sales support, and product development personnel.

SALARY SCALES

Year 1 Year 2 Year 3

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 Total people 10 10 11

Managers Rwf 960,000 Rwf 1,000,000 Rwf 1,200,000

harvesters 360,000 400,000 420,000

drivers 420,000 480,000 520,000

Security guard 240,000 240,000 260,000

Total payroll 1,980,000 2,120,000 2,400,000

9. FINANCIAL PLAN

Michelle mushrooms solutions expects to raise Rwf2,400,000 of its own capital and to

borrow Rwf1,600,000 guaranteed by the African development bank as a twenty- year

loan. This provides the bulk of the current financing required.

9.1. Break-even Analysis

Michelle mushrooms solutions Break-even Analysis is based on the average of the first-

year figures for total sales by units, and by operating expenses. These are presented as

per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for

a more accurate estimate of real risk. should break even by the fourth month of its

operation as it steadily increases its sales.

9.2. Projected Profit and Loss

As the Profit and Loss table shows, Michelle mushrooms solutions expects to continue

its steady growth in profitability over the next three years of operations.
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 Pro forma of profit and loss

Year 1 Year 2 Year 3

Sales Rwf 6,665,000 Rwf 11,025,000 Rwf 14,995,000

Direct cost of sales 2,863,000 4,727,500 6,795,500

Gross profit/loss 3,802,000 6,297,500 8,199,500

Sales and marketing and 100,000 130,000 150,000

other expenses

Depreciation 15,000 15,000 15,000

Payroll 1,980,000 2,120,000 2,400,000

Total operating expenses 2,095,000 2,265,000 2,565,000

Profit before interest and 1,707,000 4,032,500 5,634,500

taxes

Principal and Interest 480,000 480,000 480,000

payment

Taxes incurred 30% 368,100 1,065,750 1,546,350

Net profit/sales 858,900 2,486,750 3,608,150

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 9.3. Balance Sheet

The following is a projected Balance Sheet for Michelle mushrooms solutions

BALANCE SHEET

Assets Owners’ equity & liabilities

Fixed assets Capital 2,400,000

Long term assets 2,000,000 Drawings (378,900)

Accumulated (15,000) Net profit/loss 858,900

depreciation

Current assets 830,000 Long term liability 1,120,000

Cash 284,900 Current liability 0

Bank 900,100

Total 4,000,000Rwf Total 4,000,000Rwf

10. LOCATION AND LAYOUT

This business will be located in kicukiro district, kabeza sector near the Adventist

Giporoso . Because we are the startup business we have planned to search a house to rent

where our activities will be done.

11. COMPETITION AND BUYING PATTERNS

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Competition in the local area is somewhat sparse and does not provide nearly the level of

product quality and customer service as Michelle mushrooms solutions. Local customers

are looking for a high quality product in a relaxing atmosphere. They desire a unique,

classy experience.

Leading competitors purchase and roast high quality.

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