Jimma Institute of Technology School of Chemical Engineering Project of Enterprneurship
Jimma Institute of Technology School of Chemical Engineering Project of Enterprneurship
Jimma Institute of Technology School of Chemical Engineering Project of Enterprneurship
PROJECT OF ENTERPRNEURSHIP
GROUP MEMBERS
Name Id No
JIM
MA,ETHIOPIA
page 1|
Table of Contents
contents page
1. Introduction.............................................................................................................................................4
1.1 NAME OF THE BUSINESS.............................................................................................................4
1.2 The name and address of partners....................................................................................................4
1.3 The nature and establishment of the business...................................................................................4
2. Executive summery.................................................................................................................................5
3. Description of venture.............................................................................................................................6
3.1 The business mission.......................................................................................................................6
3.2 COMPANY VISION STATEMENT................................................................................................6
3.3 Goals and objectives........................................................................................................................6
3.3.1 Short Term Goals............................................................................................................................6
3.4 Environmental and industry analysis.................................................................................................7
4. Marketing segment..................................................................................................................................8
4.1 product description...........................................................................................................................8
4.2 Promotion strategy.............................................................................................................................8
4.3 Distribution mechanism.....................................................................................................................9
4.4 Analyses of competitors....................................................................................................................9
4.5 Pricing...............................................................................................................................................9
5. Operation/manufacturing segment.........................................................................................................10
5.1 Segments aimed for baby furniture..................................................................................................10
5.2 Segments aimed at producing decorated house furniture.................................................................10
5.3 Suitability for the market.................................................................................................................11
5.4 size of the business..........................................................................................................................11
5.5location of the business.....................................................................................................................11
5.6 Production plan................................................................................................................................11
6. Physical plant........................................................................................................................................11
6.1 Equipment and machinery...............................................................................................................12
7. Form of ownership................................................................................................................................12
7.1 Authority of ownership....................................................................................................................12
7.2 Risk assessment...............................................................................................................................12
page 2|
8.Financial segment...................................................................................................................................13
8.1 financial requirement...........................................................................................................................13
8.2 financial statement...............................................................................................................................14
page 3|
1. Introduction
page 4|
2. Executive summery
Waluman furniture will be run as a partnership between Biruk Beyene, Gebeyehu Anley,
Gerema Chaka, Gizachew Asfew , Lensa Tolessa and Sirno Yonas. It far away from Finfine in
south direction. For launching this business it requires (30*40) square land, and it will offer
different kinds of office and house materials according to the customer specification. Some of
the product that we will offer is: table, cupboard, bed, and chairs etc.
In order to be more profitable we will segment our products in to different forms. That is;-
Waluman furniture has initial capital of 100,000 birr. Among this 65% of it is generated from
interest free loan/ from relatives, peers / and the rest is from parents share. In order to realize
some of the benefits from it, we will make a sufficient environmental and industrial analysis,
analysis of internal strength and weakness and marketing opportunities. Our furniture shall
consist of the following facilities:
• Residence room
Generally our business has the plan to expand to different geographical areas in order to get the
most reasonable profit from it. It plans to serve its customer through producing quality product
within fair price.
page 5|
3. Description of venture
2. Supplying high quality furniture which is good for office, houses and organizations
3. Using existing resources, and providing the society qualitative service with affordable price.
5. Providing entertainment service for customers who are in different age level.
page 6|
3. To raise the life standard of the members by paying them a good salary
7. Increasing profit
• economic factor (cost of business, cash flow, profit potential and related activities)
page 7|
• marketing factor (demand and market share analysis)
Determining the above environmental factors helps the entrepreneur to recognize the real
environment or boundaries between the business and the environment. Environmental analysis is
important to our business we select by considering so many environmental factors and we made
analysis about it.
4. Marketing segment
• House –furniture
page 8|
of customers in the targeted market. Accordingly, we shall advertise our product through sale
promotion, publicity, local papers and magazines.
Addis Ababa
Agaro
Woliso
Wollega (Nekemte)
Ambo
The Addis Ababa, Wolliso and Nekemte town market is a large consumer of office equipment
(table, shelf, guest chair, and other marble made furniture).
The Agaro and Ambo is the consumer of house furniture (cup board, bed, and other decor
furniture).
4.5 Pricing
Our business will use low cost leadership strategy to introduce its products to easily establish
itself in market. The tentative prices of selected products are presented below.
page 9|
• Bed =1,500birr
• Sofa = 12,000birr
5. Operation/manufacturing segment
5.1 Segments aimed for baby furniture : one of the drawbacks of our competitor is that,
they are not taking in to account for babies related furniture. So, we will produce baby bed, chair
that is comfort for baby, different sized babies’ material that create fun and made from marble,
glass and iron etc.
This segment is especially for Addis Ababa market, because the consumer has the power to
purchase the above decorated products than other areas.
page 10 |
5.3 Suitability for the market
After we conduct a mini survey concerned with the suitable place that is easily accessible both
by the customer and supplier that decreases transportation cost, input cost, and miscellaneous
expense.
5.5location of the business: - the furniture industry, where different house and office material
produced and processing shall take be located in south west in Jimma town, 356km away from
Addis Ababa. The premise of our business is around the place where inputs like / wood, glass,
electricity, marble, and iron is located. It is convenience for customer accessibility and it’s also a
strategic place for the input supplier.
6. Physical plant
WALUMAN furniture shall consists the following facilities;
• Residence room
page 11 |
6.1 Equipment and machinery
No Description Quantity Unit price/birr Total price/birr
1 Drill 1 2000 2000birr
2 Rotor 3 4000 12000
3 Gig so 2 2000 4000
4 Sanglor 1 2500 2500
• Management segment
7. Form of ownership
WALUMAN furniture is a partnership for organization and the owners of the organization are
the manager of the business and they have the responsibility for the overall operation of the
business.
• The owners have the right to increase or decrease the pricing by considering so many
factors like competitor, demanded etc.
page 12 |
8.Financial segment
8.1 financial requirement; - when a business is initially launched, it may need a high
amount of money. This is because of most of field equipment is purchased during this time. In
order to run out our business with enough finance, we try to get from different alternatives.
From our initial capital (100,000), 50% of it is from loans and the rest is from parents share:
page 13 |
The 1st year total sale in number and birr /end/
Licensing expense___________________________________1200
Advertising expense__________________________2000
Salary expense______________________________80000
page 14 |
Transportation expense_______________________3500
Utility expense______________________________24500
Supplies expense____________________________6125
Miscellaneous expense-_______________________2000
Total______________________________________________126075
Dividend _______________________________________________205000
Assets
Cash _____________________________________________ 0
Inventory _____________________________________________17,000
Total _________________________________________________17000
Equipment _____________________________________________22,500
Land ___________________________________________________8000
Total __________________________________________________46000
page 15 |
Liability
Account payable__________________________________________10000
Total __________________________________________________10000birr
Owner capital
2018 2019
page 16 |
Transportation expense-_____________4200___________________________ 5500
2018 2019
Assets
page 17 |
Total _____________________________39100 ____________________________39000
Liability
Capital
page 18 |
• Cash flow for 2nd year projection
page 19 |