FANAYE

MEKONNEN
HAILE

WHOLESALE TRADE IN

BEVERAGE PRODUCTS

BUSINESS

BUSINESS PLAN FOR EXPANSION

OF THE EXISTING BUSINESS

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SEPTEMBER 2024

FINFINE

ETHIOPIA

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 1. Business Plan Of Fanaye Mekonnen
wholesales Trade in Beverages

Opening a grocery store can help meet the needs of a local community by
providing a convenient source of fresh food and other staples. This can help
improve the health and well-being of the community by providing access to
affordable nutritious food.

With the right business plan, a grocery store can also provide employment
opportunities to local residents, allowing them to gain valuable skills and
experience while helping to build the local economy.

This wholesales of beverage products Business Plan can also serve as a

community hub, providing a safe and welcoming place for people to gather
and interact. A grocery store can become a valuable asset for the local
community by providing these services and conveniences.

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 2. Executive Summary for Business Plan for
Wholesale Trade of Beverage Products

The Business

Fanaye Mekonen wholesale trade of beverage products and Grocery Store

will be a full-service grocery store offering various products, including
organic and locally-sourced products. The store will be in a busy commercial
area, featuring a modern, clean, and inviting atmosphere. In the Gourmet
Food Store Business Plan, the store will have a self-checkout system and will
offer online ordering and delivery services. The store will also offer various
locally-sourced products, including fruits and vegetables, meats, cheese,
bread, and other items.

Fanaye Mekonen wholesale trade of beverage products and Grocery Store

will exceed customer expectations for quality and convenience and provide a
unique shopping experience that is focused on customer service, quality, and
value.

Business Target

Fanaye Mekonen wholesale trade of beverage products and Grocery Store

will target the local residents of the area, as well as customers from the
surrounding areas. The store will focus on providing high-quality products,
excellent customer service, and competitive prices. In the Donut Shop
Business Plan, the store will also focus on providing a unique and enjoyable
shopping experience and will strive to create a welcoming and inviting
atmosphere. The store will be open seven days a week, from 8 am to 9 pm,

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and will offer a wide range of products that will cater to the needs of all types
of customers.

3. Business Summary
Fanaye Mekonen wholesale trade of beverage products and Grocery is a new
grocery store in the heart of downtown of Addis Ababa city Lafto sub-city. In
the small grocery store business plan, we will offer a wide selection of fresh
produce, dairy products, meat, canned goods, frozen foods, and a full
selection of grocery items.

4. The Business Owner

Fanaye Mekonen wholesale trade of beverage products and Grocery is

owned by W/ro Fanaye Mekonnen herself, a long-time resident of the area.
W/ro Fanaye Mekonnen has extensive grocery business experience and a
passion for providing quality products to his customers. W/ro Fanaye
Mekonnen is firmly committed to the local community and is dedicated to
making Fanaye Mekonen’s wholesale trade of beverage products Grocery
Store a success business forever.

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Why the Grocery Store Business is being started?

The grocery store business is being started because there is a need for a
grocery store in the downtown Bishoftu area. The current mobile grocery
stores in the area are not meeting the needs of the local population. He
planned to fill this void by offering high-quality products at competitive
prices.

How the Wholesale Trade of Beverage products and Grocery

Store Business Will Be Started

Fanaye Mekonen wholesale trade of beverage products and Grocery Store

will begin by securing a location in the local community. He will then
purchase the necessary equipment and supplies to stock the store. He will
also hire staff to help manage the store and to provide customer service.

He will market our business through local advertising and social media in the
grocery store business plan sample. Finally, he will create a website that will
provide customers with a convenient way to shop from the comfort of their
own homes. The experts estimate the grocery store business plan’s assets,
investments, and costs.

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You must meet the following criteria: total startup expenses, total assets,
total startup funding, total funding required, total assets, total liabilities, total
planned investments, total capital, total liabilities, and total funding.

Start-up Expenses
Legal
178,765.00
Consultants -
Insurance
18,987.00
Rent
32,976.00
Research and Development
10,000.00
Expensed Equipment
193,368.00
Signs
3,000.00
TOTAL START-UP EXPENSES 437,096.00
Start-up Assets
240,000.00
Cash Required
119,750.00
Start-up Inventory
101,860.00
Other Current Assets
221,320.00
Long-term Assets
255,600.00
TOTAL ASSETS 938,530.00
Total Requirements 1,375,626.00
START-UP FUNDING
Start-up Expenses to Fund
437,096.00
Start-up Assets to Fund
938,530.00

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 TOTAL FUNDING REQUIRED 1,375,626.00
Assets
Non-cash Assets from Start-up
1,280,390.00
Cash Requirements from Start-up
196,550.00
Additional Cash Raised
48,050.00
Cash Balance on Starting Date
36,000.00
TOTAL ASSETS 1,560,990.00
Liabilities and Capital
Liabilities
18,500.00
Current Borrowing -
Long-term Liabilities -
Accounts Payable (Outstanding Bills)
15,265.00
Other Current Liabilities (interest-free) -
TOTAL LIABILITIES 33,765.00
Capital
Planned Investment
1,375,626.00
TOTAL PLANNED INVESTMENT 1,375,626.00
Loss at Start-up (Start-up Expenses)
151,599.00
TOTAL CAPITAL 1,527,225.00
TOTAL CAPITAL AND LIABILITIES 1,560,990.00
Total Funding 1,375,626.00

4. Products
This mini grocery store business plan outlines the launch and operation of
Fanaye Mekonen wholesale trade of beverage products and Grocery Store, a
full-service retail grocery store in Addis Ababa city Lafto Sub-city area.
Fanaye Mekonen wholesale trade of beverage products and Grocery Store
will provide customers with fresh, high-quality, organic, locally-sourced food
products, household goods, and health and beauty products.

 Meat/Seafood: Beef, Chicken, Pork, Fish, Shrimp

 Dairy: Milk, Cheese, Butter, Yogurt, Eggs

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 Frozen Foods: Ice Cream, Pizza, French Fries, Frozen Dinners, Vegetables
 Bakery: Bread, Bagels, Cookies, Cakes, Donuts
 Grocery: Cereal, Pasta, Rice, Canned Goods, Snacks
 Household Items: Paper Towels, Toilet Paper, Soap, Detergent, Cleaning
Supplies
 Health and Beauty: Toothpaste, Shampoo, Conditioner, Makeup, Vitamins
 Beverages: Soda, Water, Juice, Coffee, Tea
 Pet Food: Dog Food, Cat Food, Treats, Toys, Supplies
 Organic/Natural Foods: Fruits, Vegetables, Meat, Dairy, Grocery Items

5. Marketing Analysis

Fanaye Mekonen wholesale trade of beverage products and grocery store

business is highly competitive and the success of a grocery store business
depends upon its ability to understand the market, develop a competitive
advantage and effectively differentiate from its competitors. To gain a
competitive advantage, the grocery store must identify its target market,
understand the needs of its target market, develop a unique selling
proposition, and create a strong marketing strategy.

Market Trends

The growth of wholesale trade of beverage products and grocery store

business is largely dependent on economic conditions and population
growth. The industry is expected to continue to experience steady growth in

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 the near future as more people are able to afford to purchase groceries.
Other industry trends include

 Growing demand for convenient grocery shopping options.

 Expansion of e-commerce grocery services.
 Growing demand for healthy and natural foods.
 Increasing focus on sustainability and environmental stewardship.
 Growing demand for locally sourced products.
 Increasing emphasis on customer service and satisfaction.

Marketing Segmentation

The wholesale trade of beverage products and grocery store industry is

comprised of a variety of different types of customers with varying needs
and preferences. In the grocery store business plan template, to effectively
target customers, the grocery store must determine which types of
customers it will serve and create a marketing plan to reach them. The most
common market segments that grocery stores target include:

 Households: Grocery stores typically target households with various needs

and preferences, including convenience, health consciousness, budget
consciousness, and more.
 Businesses: Grocery stores also target businesses, including restaurants,
catering companies, and food service providers.

Specialty Markets: Grocery stores may also target specialty markets, such
as health food stores, ethnic markets, and more

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Business Target

The wholesale trade of beverage products and grocery store must identify its
target market and create a business strategy to reach them. To do this, the
grocery store must determine its target customer base, understand its needs
and preferences, and develop a unique selling proposition that appeals to
them. The grocery store must also develop a marketing strategy to reach its
target market, including traditional and digital marketing tactics.

Product Pricing

The success of wholesale trade of beverage products and grocery store

business depends on its ability to set competitive and attractive prices for its
target customers. To do this, the grocery store must understand its target
customers’ needs and preferences and determine the optimal price point for
its products. The grocery store must also understand the pricing strategies of
its competitors and use this knowledge to set its own prices.

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Potential Grow Year
Year 1 Year 2 Year 3 Year 4 CAGR
Customers th 5
10.00
Households 33% 47,524 57,029 68,435 82,121 98,546
%
10.00
Businesses 20% 39,262 47,114 56,537 67,845 81,414
%
Specialty 10.00
29% 25,557 30,668 36,802 44,162 52,995
Markets %
11.00
Individuals 18% 26,111 31,333 37,600 45,120 54,144
%
138,45 166,14 199,37 287,0
Total 100% 239,249 10%
4 5 4 98

6. Marketing Strategy
The marketing strategy for our wholesale trade of beverage products and
grocery store will focus on building brand recognition and creating a positive
customer experience. We will use a combination of traditional marketing
tactics such as print media, radio, and television, as well as digital marketing
tactics such as email campaigns, social media, and search engine
optimization (SEO). We will also leverage our relationships with local
businesses and organizations to build our customer base.

Our main goal is to create a positive customer experience and build brand
loyalty. We will focus on providing quality products and services, competitive
pricing, and excellent customer service. We will also use our website and
social media platforms to promote our store and engage with customers.

Competitive Analysis

Our wholesale trade of beverage products and grocery store will be

competing with a number of other stores in the area. Our competitors
include local supermarkets, convenience stores, and online grocery store

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services. We will differentiate ourselves from our competitors by offering
quality products, competitive pricing, and excellent customer service. We will
also focus on building relationships with local businesses and organizations
to gain their patronage.

Sales Strategy

Our sales strategy will emphasize customer satisfaction and quality service.
We will train our staff to be knowledgeable of our products and services and
to be attentive to customer needs. Our store is a zero-waste grocery store,
and we will strive to deliver a positive shopping experience to our customers
and to provide them with the best possible value

Sales Forecast

In the next five years, we anticipate an increase of 10% in sales per year. We
will use traditional and digital marketing tactics to reach our target
customers. We will also offer discounts and promotions to encourage
customers to purchase from our store.

Sales Forecast YEARS

Unit Sales Year 1 Year 2 Year 3
Direct Sales 5,124 5,431 5,757
Online Sales 1,654 1,753 1,858
Retail Sales 1,765 1,871 1,983
Referrals 3,765 3,991 4,230
TOTAL UNIT SALES 12,308 13,046 13,829
Unit Prices Year 1 Year 2 Year 3
Direct Sales
985.00 1,142.60 1,325.42
Online Sales
1,540.00 1,786.40 2,072.22
Retail Sales
2,000.00 2,320.00 2,691.20
Referrals
800.00 928.00 1,076.48

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Sales
Direct Sales
5,047,140.00 6,205,963.34 7,630,852.53
Online Sales
2,547,160.00 3,131,987.94 3,851,092.37
Retail Sales
3,530,000.00 4,340,488.00 5,337,064.04
Referrals
3,012,000.00 3,703,555.20 4,553,891.47
TOTAL SALES
14,136,300.00 17,381,994.48 21,372,900.41
Direct Unit Costs Year 1 Year 2 Year 3
Direct Sales
974.00 1,071.40 1,124.97
Online Sales
1,490.00 1,639.00 1,720.95
Retail Sales
1,990.00 2,189.00 2,298.45
Referrals
795.00 874.50 918.23
Direct Cost of Sales
Direct Sales
4,990,776.00 5,819,244.82 6,476,819.48
Online Sales
2,464,460.00 2,873,560.36 3,198,272.68
Retail Sales
3,512,350.00 4,095,400.10 4,558,180.31
Referrals
2,993,175.00 3,490,042.05 3,884,416.80
Subtotal Direct Cost
of Sales 13,960,761.00 16,278,247.33 18,117,689.27

8. Financial Business Plan for Grocery Store

The financial plan of this wholesale trade of beverage products and grocery
store business plan is based on the start-up costs of Birr 100,000. This
includes the cost of rent, inventory, equipment, licenses, permits, and other

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miscellaneous costs. This start-up cost will be financed through a
combination of personal funds, a bank loan, and an investor

Important Assumptions

Grocery store business plan’s financial assumptions:

General Assumptions

Year 1 Year 2 Year 3

Plan Month 1 2 3
Current Interest Rate 9.68% 9.68% 9.68%
Long-term Interest Rate 9.90% 9.95% 9.95%
Tax Rate 26.51% 26.51% 26.51%
Other 0 0 0

Projected Profit and Loss

The projected profit and loss statement estimate the expected revenue,
expenses and profits over a certain period of time. This information can be
used to make decisions about the store’s operations and investments.

Profit And Loss Statement

Year 1 Year 2 Year 3
Sales
14,136,300.00 17,381,994.00 21,372,900.00
Direct Cost of Sales
13,960,761.00 16,278,247.00 18,117,689.00
Other
- - -
TOTAL COST OF SALES
13,960,761.00 16,278,247.00 18,117,689.00
Gross Margin
175,539.00 1,103,747.00 3,255,211.00
Gross Margin %
0.01 0.06 0.15
Expenses
Payroll
281,000.00 309,100.00 340,010.00

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Sales and Other Expenses
133,000.00 136,000.00 138,000.00
Depreciation
2,100.00 2,200.00 2,400.00
Leased Equipment
- - -
Utilities
2,850.00 2,900.00 3,000.00
Insurance
2,150.00 2,100.00 2,100.00
Rent
3,500.00 3,500.00 3,600.00
Payroll Taxes
22,000.00 23,000.00 24,000.00
Other
- - -
Total Operating
Expenses 446,600.00 478,800.00 513,110.00
Profit Before Interest and
Taxes (271,061.00) 624,947.00 2,742,101.00
EBITDA
(271,061.00) 624,947.00 2,742,101.00
Interest Expense
- - -
Taxes Incurred
(54,212.00) 124,989.00 548,420.00
Net Profit
(216,849.00) 499,958.00 2,193,681.00
Net Profit/Sales
(0.02) 0.03 0.10

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Projected Cash Flow

The wholesale trade of beverage products and grocery store business plan
also includes a cash flow statement, which will provide a snapshot of the
store’s financial health at any given time. The following column diagram
illustrates the projected cash flow statement and the sources and uses of
cash associated with the grocery store business.

Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales 56,620.00 61,150.00 66,042.00
Cash from Receivables 27,662.00 29,875.00 32,265.00
SUBTOTAL CASH FROM
84,282.00 91,867.00 99,217.00
OPERATIONS
Additional Cash Received
SUBTOTAL CASH RECEIVED 86,000.00 87,050.00 93,050.00
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending 37,000.00 38,000.00 40,000.00
Bill Payments 29,620.00 27,050.00 28,050.00
SUBTOTAL SPENT ON
66,620.00 65,050.00 68,050.00
OPERATIONS
SUBTOTAL CASH SPENT 62,000.00 66,960.00 72,317.00
Net Cash Flow 21,080.00 24,000.00 25,000.00
Cash Balance 27,000.00 30,000.00 32,000.00

Projected Balance Sheet

The projected balance sheet will provide an overview of the store’s assets,

liabilities, and equity. This statement will help to determine the store’s

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financial health and inform any potential investors. To create the statement,

the store will need to calculate the value of its assets, such as inventory,

equipment, and supplies. Additionally, the store will need to estimate the

value of its liabilities, such as bank loans and debts.

Projected Balance
Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash 301,921.00 338,152.00 371,967.00
Accounts Receivable 26,677.00 29,878.00 33,583.00
Inventory 8,103.00 4,900.00
787,235.00
Other Current Assets 2,707.00 2,707.00
122,315.00

TOTAL CURRENT ASSETS 1,338,148.0 378,840.00 413,157.00

0
Long-term Assets
Long-term Assets
299,755.00 299,755.00 299,755.00
Accumulated Depreciation
217,252.00 219,322.00 221,738.00
TOTAL LONG-TERM 3, 3,1
3,136,036.0
ASSETS 128,600.00 32,032.00
0

TOTAL ASSETS 4,366,748.0 4,410,872.0 4,449,193.0

0 0 0
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable 19,800.00 22,176.00 24,926.00
Current Borrowing - - -
Other Current Liabilities - - -
SUBTOTAL CURRENT
18,300.00 20,496.00 23,038.00
LIABILITIES

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Long-term Liabilities - - -
TOTAL LIABILITIES 20,100.00 22,512.00 25,303.00
Paid-in Capital 50,327.00 63,624.00 65,116.00
Retained Earnings 66,121.00 72,072.00 79,279.00
Earnings 172,000.00 187,480.00 206,228.00
TOTAL CAPITAL 346,648.00 388,360.00 423,890.00
TOTAL LIABILITIES AND
4,366,748.0 4,410,872.0 4,449,193.0
CAPITAL
0 0 0
Net Worth 961,560.00
1,850,100.00 2,123,610.00

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