A Business plan on

2023
Mini Super market
By Mr Birhan Bogale
Asella-Oromia
Table of Contents

Financial Highlights ........................................................................................................................... 7

7. Company Overview ....................................................................................................................... 8
Birhan Bogale’s min Supermarket History ....................................................................................... 9
8. Customer Analysis ........................................................................................................................ 9
9. Competitive Analysis .................................................................................................................. 10
Direct and Indirect Competitors...................................................................................................... 10
Direct Competitors........................................................................................................................... 10
Competitive Advantage .................................................................................................................... 11
10. Marketing Plan ........................................................................................................................... 12
Direct and Indirect Competitors...................................................................................................... 12
Promotions Strategy ........................................................................................................................ 13
Pricing .............................................................................................................................................. 13
11. Operations Plan ......................................................................................................................... 13
Operation Functions ........................................................................................................................ 13
12. Management Team .................................................................................................................... 14
Company Staff ................................................................................................................................. 14
13. Financial Plan ............................................................................................................................. 14
14. Pricing Strategy ......................................................................................................................... 15
15. Start-up Expenditure (Budget) ............................................................................................... 16
16. Sales Forecast............................................................................................................................ 17
17. Financial Plan ............................................................................................................................. 19
Forecasted profit and Loss............................................................................................................... 19
Balance Sheet ................................................................................................................................... 20
Cash Flow Statement ....................................................................................................................... 21
 1. Summary of the Business

1. Project Title: Birhan Bogale Mini Market

2. Promoter’s Name: Mr. Birhan Bogale
3. The proposed project location
o Region: Oromia National Regional state
o Zone: Arsi
o District: Asella
o Town: Asella
o Kebele: 04
4. Envisaged employment opportunity - 3 permanent and 4 laborers
 2. Industry Overview

Supermarkets are an integral part of the retail industry in Ethiopia. Supermarkets offer
customers a wide selection of grocery and other products, including fresh produce, juices, foods,
health and beauty products, household items, and more. The supermarket industry has seen
steady growth over the past five years and is projected to grow at a rapid rate over the next five
years. This growth is driven primarily by an increase in the number of households, as well as an
increase in disposable income.

The supermarket industry is highly competitive, with large chains, and more vying for shoppers’
business. To remain competitive, supermarkets must offer various products at competitive prices.
The industry is also highly regulated, with food safety standards, zoning regulations, and other
restrictions that must be followed to remain in business. The industry is highly competitive, and
supermarkets must offer various products, competitive prices, and excellent customer service to
remain competitive.

This business plan to open a mini supermarket will help to create a comprehensive business plan
for your supermarket. This plan will help to the marketing strategy, financial projections,
operations, and personnel plans.

The marketing strategy should include a detailed description of a target market and the methods
to plan to use to reach and retain customers. Your financial projections should include a detailed
breakdown of your projected expenses, net income, and cash flow. The operations plan should
outline the strategies for stocking the store, implementing customer service and loyalty
programs, and managing the store’s day-to-day operations. The plan can be used as a mini
Market Business Plan or for any other business.
 3. Executive Summary

Birhan Bogale’s mini supermarket is a full-service mini market that offers a variety of fresh and
organic products to the local community. The mini supermarket store will provide a wide
selection of items, fresh produce, dairy, frozen items, and specialty items. Birhan Bogale’s min
Supermarket will also offer a special ordering and delivery service for customers who prefer to
shop from the comfort of their homes.

The store will feature a full-service fresh packed juice and a prepared foods section with a
variety of ready-to-eat meals like a Wholesaling Business Plan. Birhan Bogale’s min
Supermarket will also feature a section dedicated to natural and organic products to meet the
growing demand for healthier food options.

Birhan Bogale’s min Supermarket will be located in a highly visible location with ample parking
and easy access from the highway. The store will be open seven days a week and offer
competitive prices to attract customers. Birhan Bogale’s min Supermarket will also offer a
loyalty program to reward frequent shoppers.

Birhan Bogale’s min Supermarket will focus on providing excellent customer service and a
friendly shopping environment. The store will be staffed with knowledgeable employees who
can help customers find their desired products. The store will also have an in-house nutritionist
who can provide advice and guidance on healthy eating.

Birhan Bogale’s min Supermarket is committed to giving back to the community and will
actively participate in local events and organizations. The store will also make an effort to source
local products whenever possible.

4. Mission and Vision Statement

Our vision is to become the leading mini supermarket in the town.

Our mission is to establish a first – class mini supermarket and Store business that will make
available a wide range of fresh, organic, and locally sourced products at affordable prices to
Asella town and other key surrounding areas where we intend opening of chains.
 5. SWOT Analysis

Our intention is opening just one outlet of the fresh, organic, and locally sourced products and
Store in Asella town. Birhan Bogale’s min Supermarket is to test run the business for a period of
1 to 3 years to know if we will invest more money, expand the business and then open other
branches outlets all over Surrounding areas.

We are quite aware that there are several mini supermarkets all over Asella town and even in the
same location where we intend areas, which is why we are following the due process of
establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be well equipped to confront our threats.

Birhan Bogale’s min Supermarket employed the services of an expert HR and Business Analyst
with bias in supply chain business to help us conduct a thorough SWOT analysis and to help us
create a Business model that will help us achieve our business goals and objectives.

6. Products and Services

Products

Introducing Birhan Bogale’s min Supermarket, a full-service store specializing in fresh, healthy,
and affordable food products. Our selection of products includes

 Juice
 Dairy products
 Frozen foods
 Fruits and vegetables
 Household items
 Organic and natural foods
 Non-food items (cleaning supplies, pet supplies, etc.)
Customer Focus

Our main customer focus is the families in our local area who are looking for an alternative to
traditional mini markets. In the Retail Discount Store Business, we will provide fresh, organic,
and locally sourced produce, and a wide selection of specialty items that cater to our target
customer base. We will also provide a welcoming and comfortable shopping experience, with
friendly customer service and knowledgeable staff, to ensure that customers have a pleasant and
enjoyable shopping experience.

Management Team

Our management team consists of experienced professionals in the retail mini supermarket
industry with expertise in marketing, finance, operations, and customer service. Our team is
committed to delivering a superior customer experience and will ensure that our store is well-
stocked, clean, and inviting. Our team will also work closely with local farmers and suppliers to
ensure that our store has the freshest and highest quality produce and specialty items available.

Success Factors
We will be successful if we can build a loyal customer base by providing an exceptional
shopping experience, offering quality products at competitive prices, and providing excellent
customer service. Similar to the Old Style Business Plan, we will also need to ensure that we stay
up to date with industry trends and changes and remain competitive within the local market.
Additionally, we will need to build strong relationships with our neighbourhood mini
supermarkets, local farmers, and suppliers to ensure that our store has the best selection of fresh
and organic produce as well as specialty items.

Financial Highlights

The financial highlights of this supermarket’s business plan provide an overview of the expected
financial performance of this supermarket. The plan projects a net income of 842,484.22 for the
first year, with a projected growth rate of 10% for the following years. The plan also projects a
gross margin of 30% and a net profit margin of 5%. Additionally, the plan estimates total
operating expenses of 625,255.60 for the first year.

 Net Income: 842,484.22 (first year) with a 10% growth rate for subsequent years

 Gross Margin: 30%

 Net Profit Margin: 5%

 Operating Expenses: 625,255.60 (first year)

7. Company Overview

Birhan Bogale’s min Supermarket is a private-owned and operated mini market in the Asella
area. Our goal is to provide the local community with a convenient and affordable shopping
experience. We are committed to providing quality products and excellent customer service.

Our store will provide a variety of products, including fresh produce, juice, dairy, frozen foods,
canned goods, health and beauty products, and other grocery items. We also plan to offer a
variety of specialty items, such as organic and natural foods and packed juices. We will also
offer a wide selection of prepared.

At Birhan Bogale’s min Supermarket, we are dedicated to providing a pleasant shopping

experience. Our friendly and knowledgeable staff will be available to assist customers with their
shopping needs. We will also offer delivery services for those customers who are unable to shop
in person.

We will strive to offer competitive pricing on all of our products. We will also work closely with
local farmers and producers to ensure that our customers are receiving the freshest and highest-
quality products available.

At Birhan Bogale’s min Supermarket, we value our customers and will strive to provide a
pleasant shopping experience. We look forward to serving the Texas community and
participating actively in the local economy.
Birhan Bogale’s min Supermarket History

Birhan Bogale’s min Supermarket has been a private owned and operated business since its
inception in 2012. The founders, Birhan Bogale, opened the original store in Oromia regional
state, Asella town. . Since then, Birhan Bogale’s min Supermarket has well known over the
town.

The mission of Birhan Bogale’s min Supermarket is to provide a convenient and affordable
shopping experience with excellent customer service. Birhan Bogale’s min Supermarket has
invested in modern technology, such as receiving and transferring money by mobile banking,
and digital payment systems to achieve this. They also offer weekly specials and discounts to
help shoppers save money.

Birhan Bogale’s min Supermarket strives to be an active community member, reaching out to
local schools and charities. Birhan Bogale’s min Supermarket has also taken steps towards
environmental sustainability by reducing its plastic bag usage and utilizing energy-efficient
lighting systems. In addition, the company works with local farmers and businesses to provide
fresh and organic produce.

Birhan Bogale’s min Supermarket is a great place to shop for value-conscious shoppers who
want quality materials at a great price. Their commitment to customer service and environmental
sustainability makes them an ideal business partner for any community. With its state-of-the-art
technology, extensive selection, and commitment to quality, Birhan Bogale’s min Supermarket
should be the go-to choice for any supermarket needs.

8. Customer Analysis

To effectively market and develop a successful business plan for a supermarket in Asella, it is
important to understand the customer base. The town has an extremely diverse population, with a
mix of rural and urban areas and many immigrants from the surrounding area.
Customer Segmentation

To effectively target the right customer base for a supermarket in Asella it is important to
segment the customer base into different demographic groups. The segments could include:

Young Families – This segment includes families with children under the age of 18. These
families are typically looking for affordable, fresh food options and convenience.

Millennials – This segment includes individuals between the ages of 18 and 34. They are
looking for convenience and healthy food options and are more price-conscious.

Seniors – This segment includes individuals over the age of 65. They are typically looking for
convenience, fresh food options, and value.

9. Competitive Analysis

The supermarket business is a highly competitive industry, with numerous large operators vying
for market share. This business plan section examines the current competitive landscape and
identifies the strengths and weaknesses of both direct and indirect competitors.

Direct and Indirect Competitors

Direct Competitors
Supermarkets in the local area are direct competitors in the supermarket business. In addition to
grocery items, prepared foods, household items, and other convenience items, these competitors
offer similar products and services. These competitors also offer competitive pricing and may
also offer discounts and other promotions to attract customers.

Strengths:

 Well-established relationships with suppliers, allowing them to offer competitive

prices.
 Brand recognition and loyalty among customers.

 Expertise in the industry and a wide selection of products.

Weaknesses:

 High overhead costs associated with operating multiple stores.

 Limited marketing budgets, leading to inadequate customer awareness.

 Lack of flexibility in responding to changes in the market.

Indirect Competitors

The indirect competitors in the supermarket business are non-traditional grocery stores. These
competitors offer similar products and services but may not offer the same level of convenience,
selection, and pricing as a traditional supermarket. These competitors may also offer additional
services such as pharmacy, banking, and other services. Additionally, these competitors may
offer discounts and other promotions, such as loyalty programs and discounts for frequent
shoppers.

Strengths:

 Lower overhead costs associated with limited store locations.

 Ability to offer competitive prices due to lower overhead costs.

 Innovation and flexibility in responding to changing market trends.

Weaknesses

 Limited brand recognition and customer loyalty.

 Lack of expertise in certain areas of the business.

 Inadequate marketing budgets, leading to limited customer awareness.

Competitive Advantage

Supermarkets have several competitive advantages over their competitors. Supermarkets offer a
wide selection of items and competitive pricing. They also offer convenience to their customers,
as they are often located close to the customer’s home. Supermarkets also have the ability to
offer loyalty programs and special promotions to their customers. Additionally, supermarkets
often have well-trained staff to help customers find the necessary items. Finally, supermarkets
can often provide customers with a more personalized shopping experience.

10. Marketing Plan

The marketing plan for starting the supermarket business will focus on targeting customers in our
local area. We will use traditional and digital marketing methods to reach our target market.

Traditional marketing methods will include print and broadcast advertising, direct mail
campaigns, and promotional events. Our print and broadcast campaigns will focus on
highlighting the unique features and benefits of our supermarket, such as our wide selection of
fresh produce, organic and gluten-free options, and competitive prices. Our direct mail
campaigns will target local households and offer special discounts and promotions. Finally, we
will host promotional events at local parks and other public spaces to attract new customers and
help build brand awareness.

Our digital marketing plan will use social media platforms and our website. Our social
supermarket campaigns will highlight our products and services while engaging our followers
with interesting content related to food and nutrition. Our online supermarket business plan’s
website will feature our products, services, and promotions and allow customers to order online.

Direct and Indirect Competitors

Our direct competitors will be other local supermarkets offering similar products and services.
These competitors will likely have similar price points, promotions, and customer service.

Our indirect competitors will be other retailers that offer some of the same products and services
as our supermarket, such as convenience stores, health food stores, and online grocery delivery
services. These competitors may offer some of the same products as us at lower prices or may
offer convenience and other services we cannot.
Promotions Strategy

The business will utilize various promotional tactics to create awareness and draw customers to
the store. The primary tactics will include:

 Social media: The business will use social media platforms like Facebook, Twitter,
Instagram, and YouTube to reach potential customers. The business can create brand
awareness by posting engaging and informative content about the business, products,
and services.

 Advertising: The business will advertise in local radio stations to create awareness
and draw customers to the store.

 Promotional events: The business will host promotional events such as cooking
demonstrations and tastings to draw customers to the store.

 Loyalty program: The business will implement a loyalty program to reward

customers for their loyalty and encourage repeat purchases.

Pricing

Our pricing strategy will focus on providing competitive prices that reflect the quality of our
products and services. We will also focus on providing value to our customers by offering
discounts and other promotions. We will monitor our competitors’ prices to ensure our prices
remain competitive.

11. Operations Plan

Operation Functions

1. Store Management: This will include the day-to-day operations of the store, such as
stocking shelves, managing customer service, and overseeing cash register
transactions.

2. Inventory Management: This will involve managing orders, tracking stock levels,
and replenishing items as needed.
 3. Financial Management: This will include creating and managing budgets, tracking
expenses, and creating financial reports.

4. Marketing: This will involve creating and executing marketing plans, developing
promotional campaigns, and analysing customer data.

5. Human Resources: This will involve recruiting, hiring, and training new staff;
managing employee payroll; and ensuring compliance with labour laws.

12. Management Team

The manager will lead the business strategy, create the vision, and oversee the day-to-day
operations. The manager will be responsible for making sure that the business meets its
objectives and meets customer satisfaction.

Company Staff
Company staff should include a team of experienced and knowledgeable personnel in order to
ensure that the business runs smoothly and efficiently. This team should include

1. Owner/ Manager
2. Assistant manager
3. Store clerks
4. Cashiers
5. Security Personnel
6. Cleaners
13. Financial Plan

We are seeking funding of 1 million to cover the costs of setting up and running our supermarket
business. This funding will cover the supermarket’s start up and operational costs.

Key Revenue

The main source of revenue for the mini supermarket business plan is sales of grocery items and
other related products, such as prepared foods, packed juice, beverages, and other convenience
items. Sales of prepared foods, packed juice and beverages are expected to account for
approximately 40% of total revenue, while grocery items will make up the remaining 60%.

Key Costs

The key costs associated with the Supermarket Business Plan include the following:

 Personnel costs (including wages, benefits, and taxes): 25%

 Rent, utilities, and other overhead costs: Approximately 10%

 Cost of goods (including food, beverages, and other products): 50%

 Marketing and advertising costs: 5%

 Miscellaneous costs (including insurance, maintenance, and licensing fees): 10%

14. Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to supermarket industry.
We know we don’t have the capacity to compete with some strong supermarket owners but we
will ensure that the prices and quality of all the store Products are available in our store are
competitive with what is obtainable amongst with other stores within our level.

Payment Options

The payment policy adopted by Birhan Bogale’s min Supermarket is all inclusive because we are
quite aware that different customers prefer different payment options but at the same time, we
will ensure that we abide by the agreements.

Here are the payment options that Birhan Bogale’s min Supermarket will make available to his
clients;

 Payment via bank transfer

 Payment with cash

 Payment via credit cards

  Payment via online bank transfer

 Payment via check

 Payment via mobile money transfer

 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make
payment for different Products without any stress on their part. Our bank account numbers will
be made available on our website and promotional materials.

15. Start-up Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting / leasing a big facility, then you would need a good
amount of capital as you would need to ensure that your employees are well taken care of, and
that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business. The materials and equipment that will be used are nearly the same
cost everywhere, and any difference in prices would be minimal and can be overlooked.

Sources of Income

Birhan Bogale’s mini supermarket is a full-service mini market that offers a variety of fresh and
organic products to Asella and the surrounding area of Asella.

We are in the mini supermarket industry to maximize profits and we are going to go all the way
out to ensure that we achieve or business goals and objectives Birhan Bogale’s mini supermarket
will generate income by;

 Juice
 Dairy products
 Frozen foods
  Fruits and vegetables
 Household items
 Organic and natural foods
 Non-food items (cleaning supplies, pet supplies, etc.)

16. Sales Forecast

One thing is certain when it comes to the material stores, if your store is well stocked with
various types of materials and centrally positioned, you will always attract customers cum sales
and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Asella town and we are quite optimistic
that we will meet our set target of generating enough income from the first six months of
operation and grow the business and our clientele base.

We have been able to critically examine all sales materials and Related Products to market and
we have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projection is based on information gathered on the field and
some assumptions that are peculiar to startups in the town.

 First Fiscal Year: Birr 9,534,027.60

 Second Fiscal Year: Birr 10,868,791.46

 Third Fiscal Year: Birr 12,390,422.27

N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor of related super markets. Please note that the above projection might be lower and at
the same time it might be higher.
The future of a business lies in the number of loyal customers that they have the capacity and
competence of their employees, their investment strategy and the business structure. If all of
these factors are missing from a business, then it won’t be too long before the business closes
shop.

One of our major goals of starting Birhan Bogale’s min Supermarket is to build a business that
will survive off its own cash flow with the need for injecting finance from external sources once
the business is officially running.

Birhan Bogale’s min Supermarket will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and retraining
of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands
we can get in the industry; they will be more committed to help us build the business of our
dreams.
 17. Financial Plan
Forecasted profit and Loss

Birhan Bogale Mini Supermarket

Cost of Merchandise Soled Schedule
Year 1 Year 2 Year 3
Beginning Merchandise inventory 840,550.00 958,227.00 1,092,378.78
Net Purchases 3,972,000.00 4,528,080.00 5,162,011.20
Merchandise Available for Sale 4,812,550.00 5,486,307.00 6,254,389.98
Less: Ending merchandise inventory 794,400.00 905,616.00 1,032,402.24
Cost of Merchandise Sold 4,018,150.00 4,580,691.00 5,221,987.74

Birhan Bogale Mini Supermarket

Forecasted Profit and Loss Revenue
Year 1 Year 2 Year 3
Sales and Cost of Goods Sold:
For cast Revenue 9,534,027.60 10,868,791.46 12,390,422.27
Non-Operating and Other Income - - -
Total Gross Income 9,534,027.60 10,868,791.46 12,390,422.27
Less: Cost of Goods Sold 4,018,150.00 4,580,691.00 5,221,987.74
Gross Profit 5,515,877.60 6,288,100.46 7,168,434.53
Operating Expenses:
Salary Expense 143,010.41 163,031.87 185,856.33
Transport Expense 114,408.33 130,425.50 148,685.07
Rent Expense 81,039.23 92,384.73 105,318.59
Depreciation Expense 95,000.00 90,250.00 85,737.50
Interest Expense 104,874.30 119,556.71 136,294.64
Other Expense 95,244.94 108,579.23 123,780.32
Total Expense 633,577.22 722,278.03 823,396.95
Net Income before Business
Income Tax 4,882,300.38 5,565,822.43 6,345,037.57
Business Income Tax 1,690,805.13 1,927,517.85 2,197,370.35
Net Income 3,191,495.25 3,638,304.58 4,147,667.22
Balance Sheet

Birhan Bogale Mini Supermarket

Balance Sheet

Asset
Current Asset Year 1 Year 2 Year 3
Cash at Bank 106,850.00 112,726.75 118,926.72
Cash on hand 234,582.50 247,484.54 261,096.19
Stock 794,400.00 905,616.00 1,032,402.24
Account Receivable 632,457.09 462,702.99 991,817.01
Total Current Asset 1,768,289.59 1,728,530.28 2,404,242.16
Fixed Asset
Motor Vehicle -
Building 1,900,000.00 1,805,000.00 1,714,750.00
Land - - -
Total Fixed Asset 1,900,000.00 1,805,000.00 1,714,750.00
Total Asset 3,668,289.59 3,533,530.28 4,118,992.16
Liability and Capital
Current Liabilities
Account Payable 171,612.50 103,253.52 117,709.01
Short Term Loan -
Tax Payable 1,690,805.13 1,927,517.85 2,197,370.35
Total long-term liabilities 1,862,417.63 2,030,771.37 2,315,079.36
Long term Liabilities
Other 838,423.39 293,448.19 292,274.39
Long Term Debt -
Total long-term liabilities 838,423.39 293,448.19 292,274.39
Retained Earning 957,448.57 1,091,491.37 1,244,300.17
Registered Capital 10,000.00 10,000.00 10,000.00
Total Capital 967,448.57 1,209,310.72 1,511,638.40
 Total Liability and Capital 3,668,289.59 3,533,530.28 4,118,992.15

Cash Flow Statement

Birhan Bogale Mini Supermarket

Income Statement of Cash Flow
Year 1 Year 2 Year 3
Cash Flow From Operation
Net Income/Loss 3,191,495.25 3,638,304.58 4,147,667.22
Change in working Capital 43,312.41 60,142.10 529,407.55
Depreciation 95,000.00 90,250.00 85,737.50
Inventory 794,400.00 905,616.00 1,032,402.24
Net cash flow from
4,124,207.66 4,694,312.68 5,795,214.51
Operation
Cash Flow From
Investment
Investment 10,000.00 10,000.00 10,000.00
Net cash flow from
10,000.00 10,000.00 10,000.00
Investment
Cash Flow From Financing
Cash from Equity 957,448.57 1,091,491.37 1,244,300.17
Cash from Debt 171,612.50 103,253.52 117,709.01
Net cash flow from
1,129,061.07 1,194,744.89 1,362,009.18
Financing
Net Cash Flow 1,129,061.07 1,194,744.89 1,362,009.18
Cash at beginning of
- - -
Period
Cash End of Period 1,129,061.07 1,194,744.89 1,362,009.18