Mini-Business Plan for

Business Financing Loan from Awach Saving and Credit Cooperative Sh/Co

Applicant Name: Tegenu Yae

Member ID No: 2000103448

Phone No: 0911857076

October, 2024

Adama
Contents
1. Profile
2. Purpose and Amount of the Loan
3. Income Source
4. Assumptions
5. Income Statement
6. Amortization (Yearly Payment Plan)
7. Call to action
8. Appendix
- Salary Letter Arsi University
- OT payment Letter Arsi University
- Marriage Certificate
- Bank statement from CBE( 2) and Awash Bank

1. Profile

I am Tegenu Yae Assistant Professor and a business consultant, born in 1976 GC in Arsi-
Hetosa and a member of Awach since 2022. I am business consultant and Assistance
Professor at Arsi University. In addition, to teaching, I am also engaged in a consulting
business which I established in 2022, Additional information is provided in the table below.

Name Tegenu Yae Boset

Place of Birth Arsi
Year of Birth 1976 GC
Marital Status Married
Education Level PhD in Management Science
Job Business Consultant (Bosat Business Consulting)
Training Consultant at EDI-Ethiopia Oromia Coordination
office
Assistant Professor (Arsi University)
Teaching (In Various Private Universities)
UNCTAD Certified National Master Trainer

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Executive Summary

 Business Name: Bosat Consulting Firm

 Location: Adama
 Mission Statement: Provide expert consulting services that empower businesses to
achieve their goals through tailored solutions and innovative strategies.
 Vision Statement: To be a leading consulting firm recognized for our commitment to
excellence and transformative impact on businesses.
 Objectives:
o Expand profitability within the loan period.
o Build a client base of at least 50 businesses in the first 18 months.
o Establish a strong online presence and brand identity.

2. Company Description

 Business Structure: LLC, Corporation, etc.

 History: Brief background on how the firm was established.
 Services Offered:
o Training and development
o Business strategy consulting
o Financial advisory
o Marketing strategy
o Human resources consulting
o Operations management
o Technology solutions

3. Market Analysis

 Industry Overview: Insights into the consulting industry, including trends and
growth rates.
 Target Market:
o Small to medium-sized enterprises (SMEs)
o Startups
o Non-profits
 Market Needs: Increased demand for strategic guidance in navigating challenges and
seizing opportunities.
 Competitive Analysis: Identify key competitors, their strengths and weaknesses, and
your competitive advantages.

4. Marketing Strategy

 Brand Positioning: Establish Bosat as a trusted partner for business growth.

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  Marketing Channels:
o Website and SEO
o Social media (LinkedIn, Facebook, etc.)
o Networking events and conferences
o Referrals and partnerships
 Promotional Strategies:
o Free initial consultations
o Webinars and workshops
o Content marketing (blogs, case studies)

5. Operations Plan

 Location: remote work policies were adopted however the loan enables the business
to acquire and expand the office through rent.
 Technology: Different software packages and tools are needed for project
management, communication, and analytics.
 Team Structure: The owner is the chief executive and two secretory will be hired
and temporary field survey experts, trainers, etc will be hired upon consulting work
agreement with clients.

6. Financial Projections

 Startup Costs: a 2 million birr investment (of which 1.5 Million will be obtained
from Awach) is required for expanding and setting up the business.
 Financial Forecasts:
o Profit and loss projections for the first three years.
o Cash flow statements.
o Break-even analysis.

7. Funding Requirements

The purpose of the loan is to expand my consulting business in Adama City. The amount
of the loan request is 1,500,000. The amount is required to rent and furnish the office and all
necessary machines will be acquired.

2. Income Sources

As a lecturer I am generating income from sources like regular salary and OT

payment from Arsi University, part-time payment and advising payment from
Universities like, Harambe, and Oromia State University, and Regular training in
collaboration with EDI-Ethiopia. Additionally, I am also generating income from the
consultancy business I am running. The detail is shown in the below table.

3. Assumptions

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 The Financial estimation (Income statement and Amortization) is developed taking the
following assumptions in to consideration.
- Income and expenses are assumed to increase by 25% every year
- The economy of the country will remain in the same or improved situation
- Interest rate (15.5%) is assumed constant and will not be changed.

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 4. Income Statement

Monthly Income Statement

for the first year Loan repayment Plan
Awach Saving and Credit Association Sh/ Co
Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov-
Items Dec-2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023

Monthly Income
Net Monthly Salary University 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000
Net Monthly Over Time
University 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833
Net Monthly Income from EDI 68750 68750 68750 68750 68750 68750 68750 68750 68750 68750 68750
Training 68750
Monthly Income from 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000
Consultancy Service 12000
Total Monthly Income 114,583 69333 69333 69333 69333 69333 69333 69333 69333 69333 69333 69333
Expenses:
Loan Repayment 35,292 35,292 35,292 35,292 35,292 35,292 35,292 35,292 35,292 35,292 35,292 35,292
School fee 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
Living cost 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Water, Electricity &
Transportation 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Office Rent Cost 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Salary 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Other costs 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0 9000.0
Total Monthly Expenses 86,292 86,292 86,292 86,292 86,292 86,292 86,292 86,292 86,292 86,292 86,292 86,292
Monthly Saving 28,291 28,291 28,291 28,291 28,291 28,291 28,291 28,291 28,291 28,291 28,291 28,291

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 Five-Year Income Statement
of the Loan repayment Plan for
Awach Saving and Credit Association Sh/ Co
Items Year- Year- Year- Year- Year-
2023/24 2024/25 2025/26 2026/27 2027/28
Yearly Income
Yearly Salary University 156000 156000 156000 156000 156000
Yearly Over Time University 249996 312495 390619 488273 610342
Yearly Income from EDI Training 825,000 825,000 825,000 825,000 825,000
Monthly Income from House Rent 144,000 144,000 144,000 144,000 144,000
Total yearly Income 1,374,996 1,374,996 1,374,996 1,374,996 1,374,996
Expenses:
Loan Repayment 423,504 423,504 423,504 423,504 423,504
School fee 36,000 36,000 36,000 36,000 36,000
Living cost 180,000 180,000 180,000 180,000 180,000
Water, Electricity & Transportation 48000.0 60000 75000 93750 117188
Other costs 180,000 180,000 180,000 180,000 180,000
Total Yearly Expenses 867504 819504 819504 819504 819504
Yearly Saving 495492 555,492 555,492 555,492 555,492

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5. Call to action

Dear Awach Microfinance Management Team,

Given my strong financial background and clear repayment plan, I kindly request your
consideration and approval of my loan application. I am confident that this loan will support
my house construction and provide me with the means to achieve my goals.

Thank you for taking the time to review my loan request. I look forward to a positive
response from your institution.

Yours sincerely,

Tegenu Yae Boset (Ph.D.)

0911857076

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