Teaching learning center

“Reaching to the Unreached”

Members of the group: Educational level
1. TADESSE DESTAW B
2. MESFIN KETEMA C
3. YARED TAYE C
4. HANA MULUGETA C
5. SINTAYHU NIGUSSE C

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Content page no

Executive Summary…………………………………………………………………………………3
Introduction………………………………………………………………………………………………....3
The Center
1. Organization and management plan……………………………………………………………………………………………...…..4
1.1Name of business: …………………………………………………………………………………………………………….….4
1.2Legal form: …………………………………………………………………………………………………………………..…..4
1.3 Owner(s)………………………………………………………………………………………………………………….……...4
1.4Organization and Staff costs…………………………………………………………………………………………………..….4
1.5 Organizational Structure……………………………………………………………………………………………………...….5
2. Market plan
2.1Marketing Plan Service ………………………………………………………………………………………………………….6
2.2Marketing Plan Price…………………………………………………………………………………………………….……..…6
2.3 Marketing Plan Place………………………………………………………………………………………………………..…....7
2.4 Marketing Plan Promotion…………………………………………………………………………………………………….…7
3. Service plan
3.1 List of Fixed Assets and Cost…………………………………………………………………………………………….……...8
3.2 Brief description of service capacity per month……………………………………………………………………………….....8
3.3 Organization of business premises……………………………………………………………………………………………….9
3.4 List of Raw Materials Needed and Cost (Per Month)……………………………………………………………………..….….10
3.5 Factory Overhead Expenses per month……………………………………………………………………………………..…....10
4. Financial plan
4.1 Start-Up Capital…………………………………………………………………………………………………………………… 11
4.2 Sources of Start-Up Capital……………………………………………………………………………………………………….. 12
4.3Information about funding sources………………………………………………………………………………….…………….. 12
4.4 Loan Repayment periods…………………………………………………………………………………………………………... 13
4.5Monthly Sales Plan…………………………………………………………………………………………………………………. 13
4.6 Monthly Operational Cost Plan…………………………………………………………………………………………………….. 14
4.7Monthly statement of cash flow plan……………………………………………………………………………………………….. 14
4.8Monthly Estimation of Net Profit………………………………………………………………………………………………….... 15
4.9 Annual Projected Profit Loss and Loss Statement…………………………………………………………………………………… 16
4.10 Opening Balance Sheet …………………………………………………………………………………….………………………. 17
4.11 breakeven point……………………………………………………………………………………………………………………... 18
4.12return of investment……………………………………………………………………………………………….............................. 18

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 Executive Summary

NOTE : This part is the summary of Key points in the Business. In paragraph
form but not more than two pages.
Executive Summary of basic computer training center

Cpu basic computer training center is located in Kombolcha town kebele 03. we expects to catch the interest of a regular loyal

customer base with its broad variety of Basic computer training. Our training center plans to build a strong market position in the town

with in a short period of time. The legal form of the business is partnership & it is equally owned and managed by its comitted five

partners. The start up capital found by the owners contribution ETB 17909.93 and the remaining financed get from loan ( ACSI

Kombolcha branch ) ETB 71639.72 with 3 years agreement . Our center is opened to give basic computer skill training to

understand what our students and businesses hope to achieve and dedicate our computer training and development to the fulfillment of

those goals. We hope that our training center will flourish in the near futre .

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1. ORGANIZATION AND MANAGEMENT PLAN
1.1 Name of business: CPU Basic computer skill training center

1.2 Legal form: partnership

Reason for choosing this legal form
The center needs a high start-up capital that is difficult for one person and to share ideas, experiences and to be effective in the
business.

Contact address: Kombolcha,Kebele 03

Tel.: 0335510032 E-mail: diditade@gmail.com

Type of business

�Manufacturer  Service provider

�Retailer �Wholesaler

1.3 Owner(s)

Name qualification Fun. in the experience

business
1 Tadesse Destaw IT-level B Manager 4 years
2 Mesfin ketema IT-level C Registrar 2 Years
3 Sintayehu nigusse IT-level C Finance 4 Years
4 Yared Taye IT-level C Public relation 2 Years
5 Hana mulugeta IT-level C Secretary 2 Years

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1.4Organization and Staff costs

Salary Social Total

No Position Qualifications Per month security staff cost
1 manager IT level-B 800 0 800
2 Finance IT level-C 800 0 800
3 Public relation IT level-C 800 0 800
4 Registrar IT level-C 800 0 800
5 Secretary IT level-C 800 0 800
4000

1.5 Organizational Structure

CPU BASI COMPUTERTRAINING CENTER

Manager Public relation Registrar Finance Secretary

2. Market plan
Business Idea and Market plan
Description of the business idea
(e.g. identified needs (market gap), who are the customers, type of products or services to satisfy the needs,
how to reach the customers, etc.)
 Computer training services have an excellent profitability level and growth rate. Our competitive edge along with new training
techniques puts our training center at the front of training services. We are living in an age where computer knowledge is a
must and the market for computer training services is booming. Our customers are University students, high school students,
civil servants, private servants, all educated people who want to train computer.

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Brief description of the business idea
Products or services: Our center is a computer training service
Customers / target group:
 Training the first-time computer owner on how to use their home PC.
 University students, high school students, civil servants, private servants, all educated people who want to train computer.
 New computer users and employed computer users that need to gain skills or update current skills.
 Sales managers on how to use database software to track their sales and marketing functions.
 Peoples on how to get the most from the Internet.
 Office personnel’s on how to use Microsoft Office or other office packages.
 Individuals who are looking for better employment.

Description of the market

(e.g. geographical area, town, type of customers, size of total market,
Description of competitors, market share for the new business, etc.)
We select to open our training center in kombolcha kebele 03 around fun café because; in kombolcha there are so many
factories, offices, elementary, high school and university students. It means that there are many customers who want to train basic
computer skill. Around fun café is center for all our customers and it is easy (comfortable) for transportation. Our training center will
differ from the traditional computer training services (usually offered by colleges and universities) because of our added personal
touch. Computer training services, as shown in our plan, have an excellent profitability level and growth rate.
2.1Marketing Plan Service
Detailed description of the product or product range or service
Product/service type
Our center is opened to give basic computer skill training to understand what our students and businesses hope to achieve and dedicate
our computer training and development to the fulfillment of those goals. The computer training we provide is contributing visibly and
substantially to the fulfillment of our area business's strategies. Cpu center will maintain financial balance, charge a high value for our
services, and deliver an even higher value to our clients.

What is special about the service/ the unique characteristics of the service?
Our training center will differ from the traditional computer training services (usually offered by colleges and universities) because of
our added personal touch and we all are educated in the field,we take training methodology and we have an internet access. Our center
(cpu) differs from the traditional learning environments where the classes are large and sometimes overwhelming to new students. Our
center (cpu) believes that by having smaller classes (no more than 15 students) the trainer can be more attentive to the majority of the
students' needs. We focus on quality training, not quantity. Our fees are justified by the specialization of our personalized services.

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 2.2Marketing Plan Price

No Service Customers willing to pay? Competitors’ price? Our Reasons for setting your
price? price?
Highest Average Lowest Highest Average Lowest
1 Training 180 160 150 180 170 160 150 To attract customers

Product/service Type(1)
Training Highest:- 170
Average:-150
Lowest:- 160
Margin for No Yes (10%)
discount?

2.3 Marketing Plan Place

Location of the business
Description of the planned location for the business
We select to open our training center in kombolcha kebele 03 around fun café
Reason for choosing this location
In kombolcha there are so many factories, offices, elementary, high school and university students. It means that there are
many customers who want to train basic computer skill. Around fun café is center for all our customers and it is easy (comfortable) for
transportation.

2.4 Marketing Plan Promotion

Description of the planned actions to inform customers about the opening of
the new business (e.g. printed information, brochures, posters, newspaper
articles, radio advertisements, opening ceremony, etc. Also make inquiries
about the costs for the different types of promotion)
Our business center is new and there is no enough money for promotion way like newspaper. Therefore we select
the promotion way of using

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 Description of The
Item Promotional techniques Activities Cost required (Birr)
1. Brochures 100 prepared to 500
announce our center
2. Business card 100 500
3. Opening ceremony 1 times 500
Total 1500

3. Service Plan
3.1 List of Fixed Assets and Cost

SN ITEM SPECIFICATION QUANTITY UNIT COST TOTAL COST

1 Computer Dell optilex 360 15 4000 60000
2 Printer Hp LaserJet 2015 1 3500 3500
3 Switch 16 port d-link 1 3000 3000
4 Computer table Wooden 15 200 3000
5 Chair Wooden 15 100 1500
6 Shelf Wooden 1 2000 2000
7 White board 1 500 500
8 Network Cable CAT 6e 100m 8 800
9 Internet broadband 1 1000 1000
10 Divider Power king 5 150 750
11 Stabilizer AVR 230 v 2 600 1200
12 Crimper 1 300 300
13 RJ45 RJ45 40 6 240
14 Screw driver American 1 20
15 Network cable Tester HDE 1 300 300
16 Operating system CD WinXP SP3 3 20 60
Total 78170

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3.2 Brief description of service capacity per month.

Month Product produce

st 80 trainees
1 month
2nd month 80 trainees

3.3 Organization of business premises

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3.4 List of Raw Materials Needed and Cost ( Per Month)
SN ITEM SPECIFICATION QUANTITY UNIT COST TOTAL COST
1 Paper Double A (A4) 1 290 290
2 Pen Bic Kenya 1 packet 120 120
3 White board marker Maxiplo white board marker 3 packet 30 90
4 White board duster 1 30 30
5 Printer cartridge Hp LaserJet 2015 1 500 500
6 contingency 5% of working capital
Total 1030

3.5 Factory Overhead Expenses per month.

No. Overhead Expenses Amount per month

1 Broadband Internet 400
2 Electricity 200
3 Maintenance 0
4 Depreciation of Fixed capital 65.14
5 Communication (Telephone, cell phone) 150
6 Transportation 0
7 Promotional Expense 1500
8 rent 3000
Total 5315.14

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4. Financial plan
4.1 Start-Up Capital

Components of Start-up capital Amount Remarks

INVESTMENT COST
Land
Building
Machineries and Equipment 78170
Furniture
Others
Total Investment Cost 78170
Working Capital/Operational Cost of One Month 0
- Raw material cost 1030 0
- Staff cost 4000 0
- Administrative Expense 0 0
- Overhead Cost 5315.14 0
-Contingency Cost 5% of Working 1034.514 0
Capital
Total working capital 11379.654
TOTAL START-UP CAPITAL 89549.654

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4.2 Sources of Start-Up Capital

Sources of funding
Conditions
Type Source (duration/interest) Amount
�Own savings
Equity capital 17909.9308
�Partner
Loan 1 �Family
�Friends
�Money lender
Loan 2 �Credit cooperative
�Government
scheme
�Bank loan
�ACSI 71639.7232
TOTAL FUNDING 89549.654

4.3Information about funding sources

Loan 1
Name and address of creditor or credit institution

Credit agreement �under discussion �finalized

Loan 2
Name and address of creditor or credit institution
Our creditor’s name is amhara credit and saving institution and its location is in Kombolcha kebele 03 around fun
café.
Credit agreement √ under discussion �finalized
�Money available on (date) ________

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 4.4 Loan Repayment period
Debt Service for one year
Repayment 1st 2nd 3rd 4th
5th 6th 7th 8th 9th month 10th 11th 12th

Period month month month month month month month mont month month month
h
Loan 2
Installment/ principal 1989.99 1989.99 1989.99 1989.99 1989.9 1989.99 1989.9 1989. 1989.99 1989.99 1989.99 1989.99
9 9 99
Interest 596.998 596.998 596.998 596.998 596.99 596.998 596.99 596.9 596.998 596.998 596.998 596.998
8 8 98
Debt service 2586.988 2586.988 2586.98 2586.98 2586.9 2586.988 2586.9 2586. 2586.988 2586.988 2586.988 2586.988
Sum of Installments 8 8 88 88 988

4.5Monthly Sales Plan

All products, product range or services
Month 1 2 3 4 5 6 7 8 9 10 11 12
150 150 150 150 150 150 150 150 150 150 150 150
Traini Price
ng Quantity 80 80 90 90 90 90 90 90 90 90 90 90

revenue 12000 12000 13500 13500 13500 13500 13500 13500 13500 13500 13500 13500

Produc Price
t2 Quantity
revenue
12000 12000 13500 13500 13500 13500 13500 13500 13500 13500 13500 13500
All Total
produc revenue
ts

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 4.6. CPU BSIC COMPUTER SKILL TRAINING CENTER
Monthly Operational Cost Plan
September 29,2007 E.C
Type of MONTHS
Product Type of Cost 1 2 3 4 5 6 7 8 9 10 11 12
Product 1 Raw material 1030 1030 1030 1030 1030 1030 1030 1030 1030 1030 1030 1030
cost
Staff cost 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Overhead 5315.14 4015.14 4015.14 4015.14 4015.14 4015.14 4015.14 4015.14 4015.14 4015.14 4015.14 4015.14
Cost
+ Capital Interest 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998
cost
= Grand Total 10942.13 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138
Costs 8

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 4.7. CPU BSIC COMPUTER SKILL TRAINING CENTER
Monthly STATEMENT OF CASH FLOW PLAN
September 29,2007 E.C
Pre MONTHS
operati 1 2 3 4 5 6 7 8 9 10 11 12
on
Cash 11379.6 9850.52 9621.40 10892.2 12163.15 13434.02 14704.89 15975.77 17246.6 18517.5 19788.3 21059.26
beginning 5 7 8 2 46 2 94 8
of
the month
+ Equity 17909.9
3
+ Loans 71639.7
2
+ Service 12000 12000 13500 13500 13500 13500 13500 13500 13500 13500 13500 13500
+ Any
other
I: Total 89549.6 23379.6 21850.5 23121.4 24392.2 25663.15 26934.02 28204.89 29475.77 30746.6 32017.5 33288.3 34559.26
cash in 54 54 28 02 76 4 8 2 46 2 94 8
+ 78170
Investmen
t
+ 10942.1 9642.13 9642.13 9642.13 9642.138 9642.138 9642.138 9642.138 9642.13 9642.13 9642.13 9642.138
Operation 38 8 8 8 8 8 8
al cost
+ Interest 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998 596.998
Loan exp. 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99 1989.99
+ Any
other
II: Total 78170 13529.1 12229.1 12229.1 12229.1 12229.12 12229.12 12229.12 12229.12 12229.1 12229.1 12229.1 12229.12
cash out 26 26 26 26 6 6 6 6 26 26 26 6
I – II 11379.6 9850.52 9621.40 10892.2 12163.1 13434.02 14704.89 15975.77 17246.64 18517.5 19788.3 21059.2 22330.14
Cash at 54 8 2 76 5 4 8 2 6 2 94 68 2
the
end of
the
month

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 4.8 Cpu basic computer skill training center
Monthly Estimation of Net Profit
September 29,2007 E.C
Month 1 2 3 4 5 6 7 8 9 10 11 12
Training Quantity
Revenue 12000 12000 13500 13500 13500 13500 13500 13500 13500 13500 13500 13500
Product Quantity
2 Turnover
I. Total 12000 12000 13500 13500 13500 13500 13500 13500 13500 13500 13500 13500
revenue
- Total 10942.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138
Operation costs
II. Total 10942.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138 9642.138
Costs
I – II 1057.862 2357.862 3857.862 3857.862 3857.862 3857.862 3857.862 3857.862 3857.862 3857.862 3857.862 3857.862
Profit
(before
tax)
- Income 20% 211.5724 471.5724 771.5724 771.5724 771.5724 771.5724 771.5724 771.5724 771.5724 771.5724 771.5724 771.5724
tax
Net 846.2896 1886.29 3086.29 3086.29 3086.29 3086.29 3086.29 3086.29 3086.29 3086.29 3086.29 3086.29
profit
(after
tax)
4.9 Cpu basic computer skill training center
Annual Projected Profit Loss and Loss Statement
September 29,2007 E.C
Gross Sales Amount

Less: Returns (defective product)

Net sales 159000
Less:
Raw material cost 12360
Staff cost 48000
Overhead Cost 49481.68
Contingency Cost 5% of Working Capital 12414.168
Total deduction 122255.848
Net profit Before tax 36744.152
Less: Estimated Income Tax (20% of Net Profit) 7348.83
Net Profit After Tax 29395.322

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 4.10 Cpu basic computer skill training center
Opening Balance Sheet
September 29,2007 E.C
Assets Amount Liabilities Amount
Fixed Assets Current Liabilities
Land Accounts Payable

Building Taxes Payable

Equipment 78170 Others Payable

Others Total Current Liabilities

Total Fixed Assets 78170 Long term Liabilities 71639.72
Current Assets Total Liabilities 71639.72
Cash on Bank and hand 11379.654

Account Receivables Owners Equity ( Capital)

RM Inventory Capital 17909.93
WIP Inventory

FG Inventory

Total Current Assets 11379.654

Total Assets 89549.65 Total Liabilities & Capital 89549.65

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4.11 BREAK EVEN POINT

Break even Quantity = Total fixed Cost

(Price per Unit – Variable Cost)

= (7817) / (159000 - 122255.848)

= 78170 / 36744.152
= 2.12

Break even Point = Total Fixed Cost x price per unit

(Price per unit – variable cost per unit)

= ((78170 *159000)) / (159000 - 122255.848)

= 12429030000 / 36744.152
= 338258.7248
4.12 RETURN OF INVESTMENT

Rate of Return = Amount received – Amount Invested x100

Amount Invested
= ((23379.654 - 13529.126) / 89549.654) * 100
=

Price per unit = Cost per unit + profit (25% of unit cost)
=122255.848+
=122255.848+1168464050
=

Unit Cost = Total Fixed Cost + Total variable Cost

Quantity
= 7817+122255.848/159000
= 0.82
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