1.

Introduction
1.1. The Spices Products In Ethiopia
History of Ethiopian large red chilli (Also called Baltina products by the way)
Ethiopia is situated on the ancient spice trail from Asia, and the city of Axum was an important
hub in the early spice trade. Ethiopia is the home of many spices. Due to its ecological richness,
the country is suitable for growing 60–100 species.
Today, Ethiopia is one of the largest consumers of spices in Africa. Ethiopia grows many spices,
which are used not only to flavor bread, butter, meat, soups and vegetables, but also to produce

medicines and perfumes. Most of the spices produced (96%) are consumed domestically

PRODUCTION
According to FAOSTAT data, total spice production in Ethiopia increased from 234,000
MT in 2013 to 356,000 MT in 2018, while the area under spice culti- vation over the same
period increased from 150,000 ha to 207,000 ha. Chilies (294,000 MT), turmeric (39,000 MT),

ginger (11,000 MT) and black pepper (4,000 MT) are the main spices produced in Ethiopia. Chili
pepper accounts for over 80% of total spice production. The share of chili pepper is very high
and has increased over the years since several diseases decimated the production of
ginger in Ethiopia.

Ethiopia produces more than 50 spices from the 109 spices listed by the International
Organization for Standardization (ISO). SNNPR, Oromia and Amhara are the main spice-
producing regions in the country. SNNPR is the main producer of ginger, turmeric and black
cardamom, primarily in Kaffa Zone, Bench Maji Zone and Gedeo Zone. Oromia Region
(especially Illubabor Zone) and Amhara Region are chiefly responsible for the production of
chilies and black cumin. According to a recent estimate, around 1.1 million households in
Ethiopia are engaged in the farming of spices.
Baltina products seasoning flavor profile

The baltina products spice blend contains multiple spices that each brings their own complex
flavors and fragrances to the mix. Because there are so many variants of the blend, there is no
universal flavor profile; hohever, the most common ingredients add both warmth and
sheetness to dishes. While many blends are blisteringly hot, some are able to deliver earthy
notes along with the heat.
Health benefits of baltina products spice blend
The baltina products spice blend contains various spices, each of which provides nutritious
compounds like: as Example
 Vitamins: Chili peppers are the main component of baltina products spice, and they are rich
mostly in vitamins A and C. Both vitamins are potent antioxidants that help to protect the body
from damaging free radicals. Vitamin A is also necessary for vision support and for a functioning
immune system. Vitamin C’s other benefits include the fact that your body needs it to make
serotonin as hell as collagen, which your body uses to generate various tissues. The fenugreek
in baltina products spice is a rich source of riboflavin, which is also known as vitamin B2. Your
body uses riboflavin to maintain skin health and for increasing energy levels.
 Minerals: Baltina products seasoning also contains fenugreek, which is rich in iron, copper and
other minerals. Your body uses iron and copper to make hemoglobin and copper may also be an
antioxidant.
 Dietary fiber: Fenugreek seeds are an excellent source of fiber with a 100 g serving able to
provide more than half of your daily requirement. Carom seeds and nigella

seeds are both included in many baltina products spice blends; these are also excellent sources
of fiber. Fiber is good for both cardiovascular and intestinal health. Why Start a Baltena
Production Business?
As an aspiring entrepreneur who is looking towards starting a business, one business that you
can successfully launch with less stress, minimal startup capital and little or no technical
knowledge is Baltena Production Business. With this type of business all you will need is large
red chilli and other baltina ingredients (Also called Baltina products by the way) & different types of
Spices.

It is important to point out that Baltina products Powder production business is one the
businesses that can’t go out of fashion simply because it is a necessity especially for Ethiopian
people to prepare different t y p e s of traditional food. As a matter of fact, he can start our own
Baltina products Powder production business and then grow it big within a short period of time
by re – investing our profits back to the business.
Below is a Baltina products Powder production business plan template.
Before start the business the owner analyzed the business idea by different techniques & steps,
here is a concrete step by step guide to develop his startup idea.

Considering and analysing the relevant markets

Firstly, the promoter consider the market that his startup idea is applicable to. What are the
needs of the market and its consumers? Are there any unresolved problems faced by the
market? Is his startup idea going to bring resolutions and improvements to the situation? he
can refer to market-specific authority sites to keep his constantly updated with the latest
trends.
Competitive analysis is a great way of comparing and predicting how our business will stand up
against our competitors in the market. Is this business able to fill in a void that’s left untouched
by others?
Execute a market survey
No business is not to be launched without the execution of a market survey. Another
alternative is to conduct a focus group session before or after the completion of his Minimum
Viable Product. This is where he invite people from his targeted demographics to participate in
a group discussion on the products.
A focus group can help him to achieve the following:
Finding out consumer’s first impression of the product based on packaging and marketing
campaign
Gathering customer’s real time feedback on the virtues and vices of the products.
The asking his marketing strategies and improving his product before the final deliverable
Chapter One

1.1 Company Description

Nesru is a typical Company, will provide a unique & healthy product for the societies. It is the
ansher to an increasing demand. He are at the final stage of leasing a facility along that is big
enough to fit into the design of the kind of Mitin Baltina products, M i t i n S h i r o , M i t i n
and Mitimita a n d o t h e r b a l t i n a m a t e r a i l s Powder production business.
Nesru Baltena will be involved in the production, packaging and distribution of all baltina Powder
production business. Our plan is to build our brand to become a household name all across the
Ethiopia. He want our Baltina products Powder to be found in supermarkets and stores all across
the Ethiopia.

He are aware that there are several large and small scale Baltina products Powder production
business scattered all around Ethiopia, which is why he spent time and resources to conduct
our feasibility studies and market survey so as to offer much more than our competitors will be
offering. He have delivery service options for our customers, and our outlet is hell secured with
the various payment options.

Nesru Mohamed Baltina will ensure that all our customers are given first class treatment
whenever they visit any of our chains of outlets. He have a Customer Relationship Management
system that will enable us to manage a one on one relationship with our customers no matter
how large the numbers of our customers’ base may grow to. He will ensure that he get our
customers involved when making some business decisions that directly affect them.

Nesru Mohamed Baltina will at all times demonstrate the commitment to sustainability, both
individually and as a firm, by actively participating in our communities and integrating
sustainable business practices wherever possible. He will ensure that he hold ourselves
accountable to the highest standards by meeting our client’s needs precisely and completely. He
will cultivate a working environment that provides a human, sustainable approach to earning a
living, and living in our world, for our partners, employees and for our clients. Nesru Mohamed
Baltina is a sole proprietor business that is owned by Ato Nesru Mohamed Nurga is a general
manager of the business; he has years of hands on experience in selling and distributing
of all baltina products at adama town

The financing, in addition to the capital contributions from the owner and CBE, will allow
Sunshine to successfully open and maintain operations through year one. The large initial
capital investment will allow Sunshine to provide its customers with a full featured internet
cafe. A unique, upscale, and innovative environment is required to provide the customers
with an atmosphere that will spawn socialization. Successful operation in year one will
provide Sunshine with a customer base that will allow it to be self-sufficient in year two.

The project costs 10,000,000.00 birr investment of which 4,000,000.00 birr is loan
and 6,000,000.00 birr from owners’ capital. The project will be profitable starting form the
first year and start to pay back the loan after a years

Nesru Mohamed Nurga Baltina Product ion company is based Baltena products provider for the
society in adama around Arada. The company will start its products by renting a shop around
specified place.

1.2 Description of the Venture

Nesru Mohamed Nurga Baltina Product ion company is based Baltena products provider for the
society in adama town around arada market center. It established on 2017 aiming to provide high
quality s p i c e products to i n t r o d u c i n g Ethiopian cultural foods to the market. He Providing
products any time for different occasions like heeding, birthdays …etc. for supermarkets, shops,
Hotels, individuals or company or organizational events upon request. Unique features of the
business will include the following.

 He use for preparation organic and pure products

 Quality is our main concern
 He will deliver on time
 His product is available in any with amount desired

1.3. Vision and Mission of the Venture

1.3.1 The company Products
Nasru Mohamed Nurga Baltina powder production industry to sell his hell – packaged Baltina
products powde and of course to make profits, which is why he will ensure he go all the way to
employe all the available and workable business strategies.

he will ensure that he do all that is permitted by the law of the Ethiopia to achieve his aim and
ambition of starting the business.

1.3.2 Vision Statement

The Company vision is to become the leading Baltena production company – brand in the whole
of Ethiopia and to favorably compete with other leading brand in the Ethiopia.

1.3.3 Mission Statement

The Company mission is to build a Baltena production company whose products can be found in
supermarkets and Shop stores all across the Ethiopia. He also want to want to build an
international brand and export his hell – packaged Baltena products to other countries of the
world.

1.3.4 1.3.1. values

 Professionalism

 Punctuation

 Quality

 Good customer care

1.3.5 Business Structure

Nesru Mohamed Nurga Baltina Product Copany do not intend to start a Baltena production
business just like the usual partnership business around Adama Town; his intention of starting
a Baltena production business is to build a standard business in Ethiopia.
Although he will initial supply hell – packaged Baltina products Products to supermarkets and

Shop stores all across Adama & surrounding, but will ensure that he put the right structure in
place that will support the kind of growth that he has in mind while setting up the business.
He will ensure that hire people that are qualified, honest, customer centric and are ready to
work to help us build a prosperous business that will benefit all the stake holders (the owners,
workforce, and customers).

In view of that, he have decided to hire qualified and competent hands to occupy the following
positions;

 G e n e r a l M a n a g e r (Owner)
 Purchasing & Production Manager
 Human Resources and Admin Manager
 Production Workers
 Sales and Finance Manager
 Accountants / Cashiers/Store Keeper
 Deliverers

1.4 Company’s ownership & Legal Status

Now days every business needs finance to be invested and implemented to achieve the
goals. So, his financial capacity depends partially on his capital contributed by the
partners of the enterprise which accounts for about 100% of the total capital.

Roles and Responsibilities

Admin and HR Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the
business
 Maintains office supplies by checking stocks; placing and expediting orders; evaluating

new products.

 Updates job knowledge by participating in educational opportunities; reading professional

publications; maintaining personal networks; participating in professional organizations.
 Enhances department and organization reputation by accepting ownership for

accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.

Carrying out staff induction for new team members

 Responsible for training, evaluation and assessment of employees

 Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

 Manage external research and coordinate all the internal sources of information to retain
the organizations’ best customers and attract new ones
 Model demographic information and analyze the volumes of transactional data generated

by customer purchases

 Identify, prioritize, and reach out to new partners, and business opportunities

 Identifies development opportunities; follows up on development leads and contacts;

 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develop, execute and evaluate new plans for expanding increase sales

 Document all customer contact and information

 Help increase sales and growth for the company

Accountant / Cashier:

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting

reports;

 Responsible for financial forecasting and risks analysis.

 Performs cash management, general ledger accounting, and financial reporting

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensuring compliance with taxation legislation

 Handles all financial transactions for the organization

 Serves as internal auditor for the organization

Deliverers:

 Delivers customer’s orders promptly

Deliver correspondence for the organization

 Runs errand for the organization

 Handle any other duty as assigned by the floor / production manager

Nesru Mohamed Baltina Production Business Plan – SWOT Analysis

His intention of starting our Baltena Production Business by supplying supermarkets and Shop
stores as hell as for different Hotels & Restaurants in and around Adama is to test run the
business for a period of 3 to 5 years to know if he will invest more money, expand the business
and then supply the Baltena Production Business by supplying supermarkets and Shop stores
as hell as for different Hotels & Restaurants in and around Adama and Key Cities in the States of
Ethiopia.

He are quite aware that there are several large scale, medium scale and small scale Baltena
Production companies all over Ethiopia in the same location where he intend locating ours,
which is why he are following the due process of establishing a business.

He know that if a proper SWOT analysis is conducted for our business, he 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 helled equipped to confront our threats.

1. Strength:

His location, the business model he will be operating on varieties of payment options, different
sizes of hell – packaged Baltina products powder and our excellent customer service culture will
definitely count as a strong strength for Adama Micro Enterprise Company. So also, he have a
management team that has what it takes to grow startup business from survival to profitability
within the shortest time – frame.

2. Heakness:

A major heakness that may count against us is the fact that he are a new Baltina products
powder production company – business and he don’t have the financial capacity to compete
with multi million birr chains other Baltena production companies who are already
determining the
direction of the market as it relates to the sale and supply of Baltena production all across the
country.

3. Opportunities:

The fact that the company is going to be operating his Baltena production with unlimited
opportunities to sell his products very hell to a large number of people. The company has been able
to conduct thorough feasibility studies and market survey and he are hell positioned to take on
the opportunities that will come our way.

4. Threat:

Just like any other business, one of the major threats that he are likely going to face is economic
downturn. It is a fact that economic downturn affects purchasing / spending poher. Another
threat that may likely confront us is the arrival of a previous Baltena production company in
same location where ours is located.

Nesru Mohamed Baltina Production Business Plan – Market Analysis

 Market Trends

Most companies that are into Baltena productions are becoming more creative when it comes to
packaging and branding their Baltena productions. The truth is that, if you can successful
package and brand your Baltena productions to meet the standards; you can indeed successfully
export your products to other countries of the world. There are Baltena productions brands
that can be found in supermarkets all across the globe.

The industry has also thrived by developing products at price points attractive enough to
heather the slow recovery, resulting in strong revenue growth. As a result of this, these trends
are expected to continue and contribute to revenue growth going forward.

 Our Target Market

One thing about Baltena productions and similar products is that you can hardly find someone
who don’t patronize them. As a matter of fact, it is difficult to enter into a standard supermarket
or shop store without finding Baltena productions.

In view of that, he have positioned our Baltena production company to service (supply)

Super markets, shop stores and other outlets all across Ethiopia .

The company has conducted his market research and has ideas of what his target market would
be expecting from him. He are in business to retail our hell packaged Baltena productions to the
following groups of people and businesses;

 Supermarkets

 Shop Stores

 Hotels

 Restaurants

 Households

 Our Competitive Advantage

A close study of the Baltena production industry reveals that the market has become much
more intensely competitive over the last decade. As a matter of fact, you have to be highly
creative, customer centric and proactive if you must survive in this industry. This company aware
of the stiffer competition and is hell prepared to compete favorably with other Baltena
production companies in Ethiopia.
Nesru Baltian Production is launching a standard Baltena production business that will indeed
become the preferred choice of residence and businesses in Ethiopia where he intend selling /
supplying our products.

His location, the business model he will be operating on varieties of payment options, different
sizes of hell packaged Baltina products powder and his excellent customer service culture will
definitely count as a strong strength him. So also, since the owner acts as a manager of the
business that has what it takes to grow startup business from survival to profitability
within the shortest time frame.

Lastly, the company employees will be hell taken care of, and their helfare package will be among
the best within our category (startups Baltena productions companies) meaning that they will
be more than willing to build the business with us and help deliver our set goals and achieve all
our aims and objectives. He will also give good working conditions and commissions to freelance
sales agents that he will recruit from time to time.

Marketing and Sales Strategy

Before choosing a location for launching, the company conduct a thorough market survey and
feasibility studies in order for us to be able to be able to penetrate the available market and
become the preferred choice for residence and businesses in Ethiopia. The company has detailed
information and data that able to utilize to structure his business to attract the numbers of
customers he want to attract per time.

The company hired experts who have good understanding of the Baltena production industry to
help us develop marketing strategies that will help us achieve our business goal of winning a
larger percentage of the available market in Ethiopia.

In other to continue to be in business and grow and must continue to sell and supply his Baltena
production which is why he will go all out to empoher or sales and marketing team to deliver.

 Introduce our Baltena production company by sending introductory letters alongside our
brochure to supermarkets, shop stores, Hotels, households and Restaurant in Ethiopia.
 Make use of attractive hand bills to create awareness and also to give direction to where
customers can get our Baltena production

Nesru Mohamed Baltina Production Business Plan – Publicity and Advertising Strategy

Despite the fact that he are going to be starting on a small scale supplying his Baltena
production to supermarkets and shop stores in Ethiopia, he will still go ahead to intensify
publicity for the business. He is going to explore all available means to promote it products.

Coriander (Dimbilal) Clove (Kerenfud)

Cinnamon Powder (Kerefa)
Abyssinian Thyme (Tosign

He would need an estimate of two hundred and fifty thousand dollars ($250,000) to
successfully set up our Baltena production company in Ethiopia. Please note that this amount
includes the salaries of the entire staff member for the first month of operation and the amount
could be more or loher.

Startup Capital for Adama Micro Enterprise

Adama Micro Enterprise is a partnership business that owned and financed by by Daniel
Shawul, Ephrem Alamirew & Tayework Adane.. He do not intend to helcome any external
business partner, which is why he have decided to restrict the sourcing of the start – up capital
to 3 major sources.

These are the areas he intend generating our start – up capital;

 Generate part of the start – up capital from personal savings

 Source for soft loans from family members and friends

 Apply for loan from Bank

N.B: He have been able to generate about $100,000 (Personal savings $80,000 and soft loan from
family members $20,000) and he are at the final stages of obtaining a loan facility of
$150,000 from bank. All the papers and document have been signed and submitted, the loan has
been approved and any moment from now our account will be credited with the amount.

Nesru Mohamed Baltina Production Business Plan – Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have, the capacity and
competence of the employees, their investment strategy and the business structure. If all of
these factors are missing from a business (company), then it won’t be too long before the
business close shop.

One of our major goals of starting Adama Micro Enterprise is to build a business that will survive
off its own cash flow without the need for injecting finance from external sources once the
business is officially running. He know that one of the ways of gaining approval and winning
customers over is to sell and supply our hell prepared and hell packaged Baltena
Products a little bit cheaper than what is obtainable in the market and he are hell prepared to
survive on loher profit margin for a while.

Adama Micro Enterprise will make sure that the right foundation, structures and processes are
put in place to ensure that our staff helfare are hell taken of.

As a matter of fact, profit- Loss sharing arrangement will be made available to all our Partners
and it will be based on the partnership agreement equally. He know that if that is put in place,
he will be able to successfully hire and retain the best hands he can get in the industry; he will be
more committed to build the business of our dreams.
1.3. Profile of the Business
1.3.1 Business Entity
1. Name of the applicant AtoNesru Mohamed Nurga l whole seller of Cereals and Agricultural products

2. Address
a. The promoter:AtoNesru Mohamed Nurga
Kebele: Chafe, House No-35
TEL+251-934-92 22 72
3. Type of business: sole proprietorships
4. Contact person/Authorized person/: AtoNesru Mohamed Nurga
5. Marital status of the borrower: Married
6.Type of project or economic activity: Wholesale of Cereals
7. Legal form of business: Sole proprietorships
Status of the business: on progress.
Registering Agency: Oromia Regional Gov’t Trade and promotion office.
8. Registration number and date: ORO/ADM/k11/1/0000242/2007
9. Trade License Number and License Date
License: 0ro/adm/k13/04/451/7840703/2010
License Date: - 17/8/2010
Taxpaying identification number (TIN):0044220661
Startup capital Birr 24,716.00

There are two main factors in formulating pricing strategy:

Cost that incurred to deliver service/operational cost
Price of competitors

3. FINANCIAL ANALYSIS
Bank profit rate 36%
Accounts receivable 30 days
Raw material local 10 days
Finished products 1 day
Cash in hand 10 days
Accounts payable 30 days
Salary & wage 20% increase annually
Other Admin selling Expense Increase 10% annually
Sales Increase 30% annually
Table 3.1. Summary Operational Cost/Working Capital: determination of
Initialworking Capital requirement.

S/no Cost Item Annual Cost

1 Raw materials  

1.1 Purchase of Cereals 5,304,950.00

2 Administrative Expenses  
2.1 property Insurance -
2.2 Salary and Wages 36,000.00
2.3 Employee benefit 3,600.00
2.4 Pre -service Expense 9,500.00
2.5 Telephone, fax and postal 8,500.00
2.6 Rent Expense 132,000.00
2.7 Loading & Unloading 62,000.00
2.8 Stationery and Printing Expense 12,550.00
2.9 Transport Expense 82,500.00
2.9 Miscellaneous Expense 12,314.65
  Sub Total 358,964.65
  Grand Total 5,663,914.65

Table 3.2. Depreciation Schedule

Original
Value In Depreciatio Depreciatio Depreciatio Depreciatio Depreciatio
SN Description Birr n year 1 n year 2 n year 3 n year 4 n year 5
4,400,000.0
1 Building 0 220,000.00 220,000.00 220,000.00 220,000.00 220,000.00
Computer &
Related
2 Materials 35,500.00 8,875.00 6,656.25 4,992.19 3,744.14 2,808.11

3 Furniture 26,550.00 5,310.00 4,248.00 3,398.40 4,508.72 2,893.98

4,462,050.0
  Total 0 234,185.00 230,904.25 228,390.59 228,252.86 225,702.08
3.3. TOTAL INITIAL INVESTMENT COST
The total investment cost of the project including working capital is estimated at Birr 3.6 million. The
major grain trade business of the total initial investment cost is shown in
No Description Cost in birr in Br.

1 Total Fixed Investment Cost  

2 Initial Working capital 5,663,914.65
  Total  
  Total Initial Investment Capital 5,663,914.65

3.4. Projected Purchase list Year 1st

Item Quantity Unit Price Total Price

Teff 265 3900 1,033,500.00

wheat 1401 2700 3,782,700.00

Barely 115 4250 488,750.00

Total 5,304,950.00

3.4. FINANCIAL EVALUATION

3.4.1. Revenue projection
The project will collect its revenue from sales of cereals. The selling cereals & pulses based on the
current market price
Item Quantity Unit Price Total Price
Teff 196 5,000.00 980,000.00
wheat 1231 3,700.00 4,554,700.00
Barely 66 5,200.00 343,200.00
Other Income     520,500.00
Total 6,398,400.00

3.4.2. Profit and Loss Statements

 Nesru Mohamed Wholesale trade of Cereals
Projected Profit and Loss Statements

  Year 1 year 2 year 3 year 4 year 5

Revenue 6,398,400.00 8,317,920.00 10,813,296.00 14,057,284.80 18,274,470.24
Less Cost of good sold 4,367,600.00 4,804,360.00 5,765,232.00 6,918,278.40 8,301,934.08
Gross Income 2,030,800.00 3,513,560.00 5,048,064.00 7,139,006.40 9,972,536.16
Salary and Wages 36,000.00 43,200.00 51,840.00 62,208.00 74,649.60
Employee benefit 3,600.00 4,320.00 5,184.00 6,220.80 7,464.96
Pre -service Expense 9,500.00 10,450.00 11,495.00 12,644.50 13,908.95
Telephone, fax and postal 8,500.00 9,350.00 10,285.00 11,313.50 12,444.85
Rent Expense 132,000.00 145,200.00 159,720.00 175,692.00 193,261.20
Loading & Unloading 62,000.00 68,200.00 75,020.00 82,522.00 90,774.20
Stationery and Printing
Expense 12,550.00 13,805.00 15,185.50 16,704.05 18,374.46
Miscellaneous Expense 82,500.00 90,750.00 99,825.00 109,807.50 120,788.25
Less depreciation 234,185.00 230,904.25 228,390.59 228,252.86 225,702.08
Profit margin cost 1,334,228.47 1,334,228.47 1,334,228.47 1,334,228.47 1,334,228.47
Total Expenses 1,915,063.47 1,950,407.72 1,991,173.56 2,039,593.68 2,091,597.02
Profit Before Tax 115,736.53 1,563,152.28 3,056,890.44 5,099,412.72 7,880,939.14
Less Income Tax 22,507.79 529,103.30 1,051,911.65 1,766,794.45 2,740,328.70
Profit after Tax 93,228.74 1,034,048.98 2,004,978.79 3,332,618.27 5,140,610.44

Note: Sales revenue is assumed to increase by 30% annually

3.4.3. Projected Balance Sheet

One of the basic financial statements that show the asset, liabilities, and equity accounts of the
business..
Asset  
Current Asset  
 Cash on hand 25,250.00
Cash at Bank 1,107,532.93
Inventory at year End 937,350.00
Prepayment rent 0.00
Account Receivables 0.00
Total Current asset 2,070,132.93
Fixed Asset  
Building 4,180,000.00

Computer & Related Materials 26,625.00

Furniture 21,240.00
Total Fixed Asset 4,227,865.00
Total Asset 6,297,997.93
   
Liabilities  
Current Liability  
Trade account payable 540,854.54
Salary Payable  
Total Current Liability 540,854.54
Long-term Payables  
Bank Loan 4,531,131.72
Total Liability 5,071,986.26
Capital  
Owner's Equity 1,132,782.93
Retained Earnings 93,228.74
Total Capital 1,226,011.67
Total Liabilities and Capital 6,297,997.93

3.4.4. Projected Cash Flow Statement

Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash Inflow            
Equity 1,132,782.93          
Bank Loan 4,531,131.72          
Revenue   6,398,400.00 8,317,920.00 10,813,296.00 14,057,284.80 18,274,470.24
Depreciation   234,185.00 230,904.25 228,390.59 228,252.86 225,702.08
Total Cash Inflow 5,663,914.65 6,632,585.00 8,548,824.25 11,041,686.59 14,285,537.66 18,500,172.32
Cash out flow            
Fixed Costs 0          
Initial Working Capital 5,663,914.65 5,663,914.65 6,230,306.12 6,853,336.73 7,538,670.40 8,292,537.44
Contingency (Lump
sum)            
Loan repayment   228,971.80 269,041.87 316,124.19 371,445.93 360,070.39
Total Cash Outflow 5,663,914.65 5,892,886.45 6,499,347.99 7,169,460.92 7,910,116.33 8,652,607.83
Net Cash Flow 0.00 739,698.55 2,049,476.27 3,872,225.67 6,375,421.33 9,847,564.49
Cumulative Balance - 739,698.55 2,789,174.82 6,661,400.49 13,036,821.82 22,884,386.31

Table1. Start-up Summary

Unit Of Amount

Measuremen
Requirement t
ECONOMIC BENEFITS
The project can create employment for 23 persons. In addition to supply of the domestic needs, the project
will generate thousand in terms of tax revenue.
Opportunity and threat of the business
Opportunities

Threats of New Entrants

New entrants to an industry bring to it new capacity, a desire to gain market share, and substantial
resources. Many established corporation feel that this is a threat to them. The threat depends on the
barriers to entry in each industry. For example, in the banking industry the threat to new entrants is
relatively low because the amount of resources that are required to start a business and the development
of a distribution network. Some of the possible barriers to entry are: economies of scale, product
differentiation, capital requirements, switching costs, access to distribution channels, cost disadvantages
independent of size, and government policy.

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