1.

EXECUTIVE SUMMARY
Brother’s photocopy center is a total solution provider for printing and copying related service
and products such as office stationary, brochure, business forms, and marketing materials to
Denver area business. Printing and photocopy is an unavoidable business expense for most
business. With our combined experience and this industry’s resilience, we feel that this change
in name ownership coupled with our new marketing strategy will prove a sound decision. The
aim of the business is to become profitable by increasing the number of customer. This business
center differ from others by giving service in medium price cost and high quality. The critical
factors for the next year are implementing our new marketing plan, increasing our customer
base, and financial control and cash flow planning.

1.1 OBJECTIVES
The objective of the company is listed below:

 To create a good service –based company whose goal is to exceed customers expectation
 To increase service substantially by end of year one and double year two revenue
 To increase the number of clients service by at last 30% per year though superior
performance and word of mouth referrals
 Have a clientele return rate of 85% by end of year one
 Become an establish company destination by end of year one.

1.2 MISSION
Brother’s photocopy center will provide a great service and satisfy its clients with professional
gentleman. To create comfortable atmosphere shop, in which customers will be able to relax
both their body and mind, through a wide range of and quality service.

1.3 VISION
The vision of the company all our work starts with the promise, that business is fundamentally
networks of commitment between people. This is the foundation for rapid change and
transformation that are sustainable. Vision thrives on helping clients tackle their most
challenging business problems and opportunities and delivering fast and enduring results.

1.4 THE KEY TO SUCCESS

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The key to success in our business are:

1. Location:- providing an easily accessible location for clients, i.e. select the right place of
the company
2. Environment:- providing an environment conduction to giving relating and professional
service
3. Convenience:- offering clients a wide range of extended business hours
4. Reputation:- reputation of the owner and staff as providing superior personal service
5. Effective advertising:- advertising is the corporate environment.

1.5 THE COMPANY GOAL

The goal of the company, beyond becoming profitable business, is becoming a trusted
destination where by the clients in our community can come to refresh their minds and
relaxation of bodies, replenish their energies, and to create network with their colleagues and
friends.

1. NTRODUCTION
Business plans are like maps that help anyone chart a new and great course for their businesses.
One of the things that you will be required to do as you launch your business is to write a
business plan. There are a lot of thing that you should consider knowing when you are looking
to write a business plan. These things are the technicalities that are involved with writing a
business plan. Business plan is necessary for the new formation of company that is the guideline
how to exercise from beginning up to its goal. It is the snapshot of the company structure and
process. So, business plan is the backbone of the company.

1.1THE BACKGROUND OF THE COMPANY

The location of the company is in Debre Birhan town. The city is locates at north Shoa 130
km far from Addis Ababa. it is suitable for business and investment. The company considers
the number of customer present here. The company runs by partnership business. It is give a
wide range of service to its customer with quality.

A business center cum photocopy shop is a business handles business related services such
as typing documents, printing documents, laminating documents, scanning documents,

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photocopying documents, Fax and telephone services. It is a business that any serious
minded aspiring entrepreneur with little schooling can successfully handle.

1.2 The name of company and address of the company

The name of the company is brother’s photocopy center and its address at Debre Birhan
town. It is locate neare in Debre Birhan revenue office and north Shoa zone office.

1.3 THE NATURE OF THE COMPANY

The company is profit seeking company. It is run by partnership business enterprise. The
company liability is unlimited within the firm stock. The firm cannot cover its liability to
transfer in to the privatization asset. Lacks of continuity due to one partner withdraw from
the business.

1.4 OWNERSHIP OF THE BUSINESS

The brother’s photocopy center business enterprise owned by privately cooperative
partnership Nahom and Beyene and their partners. They have equal proportion of net income
interest rate. They have competent in their managing system and work actively and they
have four and three year experience respectively in photocopy business and they have
excellent experience in business plan managing system and also they are good in designing
and research analysis of market condition.

2. COMPANY ANALYSIS
2.1 Future Trend and Historical Achievement
The company future trend is to expand the business to production center with
technologically progress and the historical achievement is very well known in the society
and increase the number of clients.

2.2 COMPETENCE ANALYSIS

The competitions that exist in the business center service Industry is stiff simply because any
one can start photocopy shop center. So, we will competence with others by to provide high
quality and medium price level. We use new technology that is suitable to facilitate the
business activity smoothly and fast.

2.3 Target Market

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 We consider the target market for those who need the service and products of business
service center are all encompassing. We have conducted our target market would be
expecting from us.

We are in the business center service to attract the following clients:

 applicants
 corporate executive
 business people
 sport men and women
 students
 children
 adult
 tourists
2.4 APPROPRIATE STRENGTH
The strength of our company is the strategic location we intend installing our photocopy
center shop, the business model we will be operating on, easy of payment, wide range of
service and our excellent customer service culture will definitely count as a strong strength
for brother’s photocopy center business enterprise. So also we have a team that can go all the
way to give our clients value for their money; a team that are trained and equipped to pay
attention to details and deliver jobs on time.

2.5 WEAKNESS
A major weakness that may count against us is the fact that we are a new business services
center and we don’t have the financial capacity to compete with multi-million companies.

3. COMPANY SUMMARY
Brother’ photocopy center is a full-service photocopy shop dedicated to consistently
providing all grooming service to our clients, high quality products while furnishing an
enjoyable relaxing atmosphere at an acceptable price/value relationship.

The timing is right for this venture. Patiently searching the last few years for a similar highly
recognized existing business in a prime location was unsuccessful. We therefore decided to
build one from the ground up.

3.1 STAR-UP SUMMARY

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 We must estimate the working capital before being start the business operation, the startup
capital will be used for the design, leasehold improvement, and equipment for the shop. The
startup cash has been marked for the estimated amount needed to cover operational expense
for the first two months.

We would need an estimate of start-up capital of Br. 264,436 to successfully set up our
business service center in photocopy center. This amount includes the salaries wages of on
the staff for the first year of operation.

Generating funding/ start-up capital for the business

Means of generating start-up capital for the business

 Generate part of start-up capital for the business from personal saving/deposit i.e. birr
50,000 from nahom and 50,000 from beyene of saving account.
 Source from soft loans from family members and friends about Birr 14,436 that is
without interest rate of principal.
 We apply the other stat up capital for loan from bank is Birr 150,000 with the interest
bearing of 10% of the principal in one year.

Table 3.1 start-up requirements

Startup expense In birr

Legal 1000
Brochures, logo and design 2000
rent 24,000
supply 14,336
Salary and wages 60,000
utility 10,000
Miscellaneous 5000
others 3000

Total expense 119,336

Table 3.2 list of price
plant asset

Item Unit Unit price Total price

Copy machine 2 35,000 70,000
Computer 2 4,000 8,000
Paper cutter 1 1,000 1,000

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Mother board 2 7,000 14,000
Laminator 1 3,700 3,700
Bright office 1 2,500 2,500
Staple size 2 200 400
Table 4 150 600
Chair 6 500 3,000
Flatbed photo scanner 1 6,000 6,000
Staples 1 100 100
Cable - 1,500 1,500
Printer 2 3,500 7,000
Divider 1 100 100
Stabilizer 1 1,100 1,100
Scissor 2 50 100
telephone 1 6000 6000
Fax machine 1 20,000 20,000
Total 145,100

Table 3.3 annual required supply

Item unit Unit price Total price

Paper 30 20 6000
Laminating pouches 20 250 5000
Paint - - 3000
stapler 4 84 336
total 14,336

3.2 THE COMPANY LOCATION

The company location is found in DEDRE BIRHAN town near to north shoa zone office and
revenue office because of this location the site has high demand that many of the town people
and student of the campus are there. This geographical area is selecting based up on various
business criteria’s. For any business to be profitable it requires a good number of customers
whom can easily be attracted to the service provide by the company. Selecting the most
urbanized area will be the first step as it will attract the required customers easily.

4. SERVICE
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 The brother’s photocopy center is considered an upscale full-service. We offer our clients a
gentleman’s club atmosphere, with complimenting wide range of service that includes, copy
document, writing, laminating, binding, scanner, fax, telephone etc. we list the following
service with their price:

Table 4.1 service price

Item unit Unit price in Br

Copy 1 1
Writing 1 10
Laminating 1 10
Binding 1 12
Scanned 1 20
Fax 1 25
telephone Br/sec 2

4.1 TECHNOLOGY
Brother’s photocopy center service will sell complimenting service of the highest quality and
latest scientific development technology.

Our gentleman’s shop computer system incorporated the latest hardware and software to
manage appointments, client database, and point of sale, email capabilities, web-enabled,
networking, inventory, bar code reading, historical data, employee records, transaction history,
accounts receivable/payable and payroll. Back up of the system is performed daily.

Client will be emailed appointment confirmation message two days prior to appointment; in
addition they will also receive a personal phone call one day prior to appointment to confirm
appointment. A thank you note will be emailed automatically after services have been
performed.

4.2 FUTURE SERVICES

The company will be considered branding its own service line in the future. In addition it may
offer chiropractic service and acupuncture service on an as needed basis. We will always remain
involved with the best service.

4.3 MARKET SEGMENTATION

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Our target market will be photocopy service for all the customers. Based on our service will be
associated with 30% copy, 25% binding, 10% laminating, 12% fax, 5% telephone calling, 8%
writing documents, and 10% scanned

service

5%
8% copy
binding
30%
fax
10%
laminating
scanned
writing
10% telephone

12%
25%

4.4 TARGET MARKET SEGMENT STRATEG

The numbers of this market segments have luxury money on hand and lead professional lives
filled with very wide schedules.

4.5 MARKET TRENDS

In spite of the massive growth in residential and corporate complexes and substantial
employment with some distance a gap currently exists in the retail trade and entertainment area.
Our facility will be located in these centers, which provide a huge competitive advantage.

5. MANAGEMENT SUMMARY
The management philosophy of brother’s photocopy center is based on respect for each of our
fellow employees, respect for every client, and individual responsibility. Our company success
is depending on the warmth and uniqueness of its atmosphere which is generated by fun-loving
and caring employees. The management team will consist of the owners and assistant manager
(if deemed necessary). We will hire only those who demonstrate the qualities necessary for
working in a professional environment, and the willingness to move forward in continuing
education. We will be hiring the ultimate “people person” to provide competent class service.

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 5.1 ORGANIZATIONAL STRUCTURE
Our initial team consists of the owners and five employees. On the shop floor, there will be four
writers and copiers, one cashier, and one cleaner. As our client base grows we will add
additional barbers, which then will be working two shifts per day per station. We expect to have
12 employees by the end of the first year and 16 employees in year two and three.

5.2 MANAGEMENT TEAM

Nahom co-owner, president: he has an experience in managing system and he is good at a
business work and plan. He studied in DEBRE BIRHAN UNIVERSITY and he continues to
stay on top of the trend and service. The employees have some year experience as writing
and copying expertise.

Beyene co-owner: he will not be directly involved in daily operations, but he will assist
Nahom (vice president) in general organization/ business planning and operation
implementation.

5.3 MANAGEMENT TEAM GAPS

We believe the experience of our team cover the needs to make the business plan for
brother’s photocopy center a very successful reality for a time. We will review the current
talent of the employees and re-engineer accordingly. We plan on outsourcing payroll and
benefit based on their expertise.

5.4 PERSONAL PLAN

The personal plan below reflects our projected need at opening and carries through the year
expansions

Table 5.1 yearly salaries of employees over three year (in birr)

Personal plan Year one Year two Year three

Beyene (president) 15,000 18.000 20,000
Nahom(vice president) 12,000 16,000 18,000
100% commissioned employees 200 230 250
Receptionist 32,800 45,770 51,750
Total people 8 12 16
Total payroll 60,000 80,000 90,000

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 6. FINANCIAL PLAN
The premiere element in our financial plan is initiating, maintaining, and improving the factors
that create, stabilize, and increase our cash flow:

i. We must create visibility so as to create customer flow.

ii. We must maintain a dependable, cheerful employee force so as to minimize turnover.
iii. Create a brisk turnaround on our retail products, always maintaining viable stock levels.

6.1 IMPORTANT ASSUMPTIONs

The key underlying assumption of our financial plan shown the following general assumption
are:

A. We assume access to equity capital and financing to support our financial plan.
B. We assume our financial progress based on realistic service sales to minimum sales
against highest expense.
C. We assume their will not be an economic crash that would greatly hinder our target
market’s access to their personal luxury needs.

6.2 THE KEY FINANCIAL INDICATERS

Our most important key financial indicator is when each employee would have at least
twenty clients per day and continue adding the clients gradually.

6.3 THE BREAK EVEN ANALYSIS

The company at break-even point only can cover all costs of the business at that point there
is no gain and loss. A break-even analysis tells us how many sales we need to make to cover
all our costs (fixed and variable). This is “break-even point”.

To calculate break-even point, take the following few simple steps:

1. Determine the average sales price of our service;

2. Calculate the total variable costs and subtract these costs from the average sales price
the remainder is called the unit “contribution” or amount we have to cover fixed costs;
3. Total our fixed costs (insurance, licensing, utilities) also known as overhead.
4. Divide our total fixed costs by our “unit contribution” to determine our break-even
point.

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 Therefore, in mathematical expression; profit = revenue- fixed cost- variable cost = 0

6.4 PROJECTED PROFIT AND LOSS

There are two important assumptions with our projected profit and loss statement:

Our revenue is based on minimum estimated averages against highest expense

expectation
Our major expense of rent and utilities is fixed for the next three years.

0
4
2
0
year 1 year 2 year 3 profit over through three years

6.5 ANNUAL REVENUE FROM SERVICE

Table 6.1 revenue

Item Year one Year two Year three

unit Unit Total in unit Unit Total in Unit Unit Total in
price Birr price Birr price Birr
Copy 80,000 1 80,000 90,000 1 90,000 100,000 1 100,000
Writing 2500 10 25,000 2,600 10 260,000 2,700 10 270,000
Laminate 5,000 10 50,000 5,500 12 66000 6000 12 72,000
Binding 6,000 12 72,000 7,000 13 91,000 7,500 14 105,000
Scanned 10,000 20 200,000 12,000 21 252,000 14,000 22 308,000
Fax 2000 25 50,000 2500 25 62,500 3000 25 75,000
telephone 1500hr Br2/hr. 3000 2000hr Br3/hr. 6000 2500hr Br3/hr. 7500
Total revenue 480,000 827,500 937,500
in Birr in Birr in Birr

7. FINANCIAL STATEMENTS
Financial statements (financial reports) are formal records of the financial activities
and position of a business, person or other entity.
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Relevant financial information is presented in a structure manner and in a form which is easy to
understand.

We can present the financial statement of the company only the first year:

Summary in tabular form:

Asset = liability + owner’s equity

Cash + supply + equipment = A/P + owner’s equity

(1) + 100,000 - - - + 100,000

Bal 100,000 100,000

(2) +164,436 +164,436

Bal 264,436 - - 164,436 + 100,000

(3) -14,336 + 14,336 - - -

Bal 250,100 14,336 164,436 100,000

(4) - 145,100 - + 145,100 - -

Bal 105,000 14,336 145,100 164,436 100,000

(5) + 480,000 - - - + 480,000

Bal 585,000 14,336 145,100 164,436 580,000

(6) - 105,000 - - - -
105,000

Bal 480,000 14,336 145,100 164,436 475,000

(7) -51,000 - - - -51,000

Bal 429,000 14,336 145,100 164,436 424,000

7.1 INCOME STATEMENT

The income statement of the brother’s photocopy center report on a company

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 Brother’s photocopy center

Income statement

For the year ended December 31, 2011

Revenue

Fares earned---------------------------------------------------------------------- Br. 480,000

Less: operating expense

Legal----------------------------------------------- Br. 1,000

Decor and design--------------------------------------2,000

Salary and wages--------------------------------------60,000

Rent ----------------------------------------------------24,000

Utilities -------------------------------------------------10,000

Miscellaneous -----------------------------------------5,000

Others----------------------------------------------------3,000

Total operating expense------------------------------------------ (105,000)

Income from operation ------------------------------------------------------ Br. 375,000

Add/ less: other income and expense

Interest (10% of 150,000) --------------------------------------- (15,000)

Income before income tax ---------------------------------------------------------------360,000

Income tax ( 10%) ---------------------------------------------- (36,000)

Net income ----------------------------------------------------------------------------Br. 324,000

7.2 owners’ equity statement

Brother’s photocopy center

Statement of owner’s equity

For the year ended December 31, 2011

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Beginning capital ----------------------------------------------------------------------- Br. -0-

Add: investment during the year----------------------------------Br. 100,000

Net income during the year ----------------------------------------- 324,000

Increase in owner’s equity ------------------------------------------------------------------- 424,000

7.3 balance sheet

Brother’s photocopy center

Balance sheet

December 31, 2011

Asset

Cash ----------------------------------------------------------------------------- Br. 429,000

Supplies ------------------------------------------------------------------------------14,336

Equipment -----------------------------------------------------------------------------145,100

Total asset ------------------------------------------------------------------------------588,436

Liability

A/P --------------------------------------------------------------- Br. 164,436

Owner’s equity

Increase in owner equity------------------------------------------- 424,000

Total liability and owner’s equity----------------------------------------------------- 588,436

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