SELAM TECHNICAL AND VOCATIONAL

Department of
COLLEGE
Manufacturing Technology
Business Plan2020-2024

Manufacturing
Best for you
Table of Contents
Executive Summary..........................................................................................................................1
1 Introduction about the product/ services................................................................................3
2 Mission........................................................................................................................................4
3 Objectives...................................................................................................................................4
3.1 General Objective.................................................................................................................4
3.2 Specific Objectives...............................................................................................................4
4 Type of services provided by the department.........................................................................5
4.1 Provision of Regular training..............................................................................................5
4.2 Provision of Extension training..........................................................................................6
4.3 Short-term training...............................................................................................................7
5 Market Analysis..........................................................................................................................8
5.1 Demand Analysis..................................................................................................................8
5.2 Supply Analysis....................................................................................................................9
6 Marketing strategies (4Ps).........................................................................................................9
7 Cost Forecast............................................................................................................................10
8 Manpower requirement............................................................................................................14
9 Sales Forecast..........................................................................................................................17
10 Mode of operation (Operational Processes)..........................................................................21
11 Legal form of the project.........................................................................................................21
12 Financial Analysis....................................................................................................................21
12.1 Profit and loss Statement..................................................................................................21
13 Net Present Value (NPV)..........................................................................................................22
14 Break-even point......................................................................................................................22
15 Business risks..........................................................................................................................22
16 Conclusion................................................................................................................................23

Executive Summary

The construction sector is one of the important sectors that one’s country’s economy is based on. In
developing country, like Ethiopia, it is impossible to think about a fast economic and industrialization

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development without the growth of the industry. The information released from the government
source indicates that, industry has its impact on the Ethiopia’s economic development and the
industry must work within the agriculture for the sustainable development of the Ethiopia.

The current economic policy of the country is encouraging for investors to be engaged in different
economic sectors. This can be evidenced by ongoing and at fast rate of Manufacturing all over the
country.

Based on this fact, we, our names are listed here, have decided to involve in this open market
opportunity to fill the manpower shortage by producing skilled and competent technicians and
besides to generate our income to sustain the financial status of our existing life.

Accordingly, we have made a feasibility study to prepare business plan that could guide us to reach
to our goal.

Our five years business plan shows a bright financial success that is increasing from the start up
point till to end of physical period.

Our feasibility study shows that, we can make profit starting from the first year of operation to allow
expansion in the second, third and the years ahead. The profit in the first year will be Birr _______
and in the second-year birr _______and expected to increase substantially in the, third and
subsequent years.

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1.1 Introduction
We, the names are specified herewith are graduates of ROFAM Technical and Vocational
College sponsored by PASEWAY PROJECT in a short-term level training on the s specific
stream:
Manufacturing Department: Mechanics Level - II – with specific skills of welding
benchwork basic machine.
Accordingly, we have acquired a lot of knowledge and skill that enabled us to be competent in
the labor market and also create our business then, become professional entrepreneurs. In
addition to this, during our practical training program, we could get an opportunity to exercise
our knowledge and skill at Tsehay Roschli Industrial & Agricultural Engineering (TRIAE) during
the cooperative training program. As part of our testing process, we also visited various
manufacturing firms in Addis Ababa.
Based on the above reality, and as of the first measures. we are on the way to develop our
small Metal Workshop named “Universal” Metal Workshop Partnership.

The main purpose of the proposal is to identify and distinguish the required fixed and other
material and Inputs that are essential for metal production, and the necessary labor power.
Besides, the identifications of resources, knowing their related cost price and the initial capital
that would be used to realize our vision is the second and important part of the proposal.
Therefore, to realize our vision into practice we need ____ ETB. Out of this ___% will be
invested for the purchase of the identified equipment and furniture and the remaining __% of the
initial capital will be invested for the purchase of inputs.
For your facilitation and support, we would like to acknowledge Selam Technical and Vocational
College and PASEWAY project who fully covered our training cost and provision of the seed
capital.

Therefore, based on these facts, we have made feasibility study and prepared business plan
that can clearly shows our future direction. The identified substantial demand for products: Metal
Doors and Windows,

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 1.2. Mission
The mission is:
o Produce market-based, high-quality metal products for the community at a reasonable
cost and in the quickest period possible, thereby pleasing those who suffer from a lack of
quality items.
o A business's clear and critical aim is to maximize profit while also enhancing our lives.
o Last but not least, improving our country's economic situation by disbursing government
taxes and reducing unemployment, particularly among women.
1.3. Vision
The vision we have is to become the first choice for quality manufacturing metal products on the
selected location.
1.4. Value
We can't succeed unless we have strong values. Our core values serve as the cornerstone of our
company, defining who we are and distinguishing us from the competition. They're at the heart of
our future vision. Included in this list are the following values:
• Performance excellence. We act like responsible owners, always seeking to meet
or exceed expectations.
• Teamwork. We act as a team, committed to each other, and bound by trust and
loyalty.
• Integrity. We treat one another, and all our stakeholders with dignity and respect.
Honesty, ethical behavior, and integrity are fundamental characteristics of our
business conduct.

2. Type of product to be provided by the department

Our product includes quality metal products: …….to the community at a reasonable price in the most
efficient time for the customers in the selected. In maintenance services will be delivered up on
requests.

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3. Market Analysis

3.1. Demand Analysis (The current and expected future Customers/demand

analyses)

A physical and informal analysis of the metal production industry in the country and around the world
indicates that there are widespread and dynamic changes taking place.

As a result of the current migration of people into Addis Ababa from all regions, there is considerable
demand for manufacturing And also, Ethiopian diasporas are currently returning to their homeland of
Addis Abeba, Ethiopia. As a result, there is a demand for factory and house construction.

Thus, it is the right time for us to get involved with the metal production business and share the
current profits..

3.2. Supply Analysis (the current and expected future supplier analysis)

In Since the sector by itself is competitive, the entry barriers also are high even in terms of quality.
There are few or almost all producers, who are producing similar products to the community in Addis
Ababa. This shows that there is a big p between the demand and supply of the services even at the
country level.

These all show that the supply condition of the existing market will not be a challenge for our
provision to meet the needs of the customers.

3.3. SWOT Analysis

The SWOT analysis provides us with an excellent opportunity to examine and evaluate our internal
strengths and weaknesses. It also allows us to focus on the external opportunities presented by the
business environment as well as potential threats.
The next sections explain major strengths, weaknesses, opportunities, and threats that we should
be aware of.
3.4. Strengths
We all the partners have the needed professional skill and knowledge in the field that would help us
to be successful.

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 3.5. Weaknesses
Strengths are valuable, but it is useful to realize the weaknesses. We have identified some of our
weaknesses. These are”
1) Lack of experience on the current market
2) start-up challenges
3) limited capital
3.6. Opportunities
Identifying our strengths and the awareness of our weaknesses will help us capitalize on emerging
opportunities. These opportunities include, but are not limited to:
a) Fast growing population in Addis Ababa, because of migration from different corners
of the country
b) No or very few professionals on the field who are delivery restaurant services
currently,
c) A large segment of low-to-middle class population in Addis Abeba
d) Consumer behavior changes due to the economic downturn, respectively an
increased preference to buy affordable services instead of expensive meals

3.7. Threats

Threats that we should be aware of include:

a) Slow Recovery Process of the economy from the current crisis

b) Changes in the business environment that might reduce our sales

c) Higher taxes in the future

d) Due to the current inflation, he rising of costs Metals

4. Competition and Buying Patterns

Competition must be expected when initiating a business. Competition occurs when two or more
organizations act independently to supply their products or services to the same group of
consumers. Consequently, there are many competitors who are currently supplying the same
services that are expected to challenge us.
4.1. Strengths and weakness of Competitors

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 4.1.1. Strengths
The followings are the strengths of the current market competitors:

● They have adequate capital;

● They have loyal customers;

● They are already known by the current markets

4.1.2. Weaknesses

● Lack of quality,

● High selling prices which are not contest with the quality of their services,

● They all provides similar foodstuffs

● There is a problem in communicating and handling customers

● Sanitation problems

5. Marketing strategies (4Ps)

A marketing strategy refers to a business's overall game plan for reaching prospective consumers
and turning them into customers of their products or services. Accordingly, as strategy, the
followings are the measure that will be taken during implementation.
5.1. Places Distribution
As of the principle of placing products and services, the right product at the right price available in
the right place to be bought by customers. “Place” refers to the distribution channels used to get
products or services to the intended customers.
5.2. Price
“Price” refers to how much the market charge for specific product or service. Reasonable pricing
takes advantage of a segment of consumers who believe high quality comes at a premium price.
Hence, our price will be set by considering the purchasing power of the customers found int the
communities. The price of our products is visible on the sales request table 8.
5.3. Promotion (your promotional strategies)

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promotion includes all activities that involve communicating with the customer about the product and
its benefits and features. Accordingly, all Information provided to the customer at this stage helps
them in making purchase decisions regarding the product. Based on these, the followings are our
promotional strategies:
 Producing quality products
 Providing community services
 Promoting our products through brochures, leaflets, web page, face book pages and etc.
 Using the social medias will be our major promotional strategy
5.4. Location and site analysis
Our selected area is very accessible to reach to our business center from different corners of Addis.
The premises are very wide that gives freedom/ pleasure for everybody to work/ and for trainees to
be trained.

6. Cost Forecast
The financial forecast is an essential step when creating a business plan. The financial forecast
allows you to anticipate the revenues and expenses of your new business over a given period.
Forecasting is important for planning purposes – it is necessary to estimate and plan for costs that
will be incurred prior to actual incurring them. Accordingly, the forecasted cost and sales of the
products is listed under the tables: -

1. Cost Forecast
. The investment needed, and the costs associated with each catagories are shown below

Table 5: Fixed Asset (Machineries, Furniture, Tools and Equipment)

Unit Total
No Item with specification Unit Qnt.
price Price
1 Hydraulic Press heavy duty pic 5 673,000 3,365,000
Dray press machine 17.000.0
2 pic 1
0 17.000.00
3 Power circular saw pic 1 37,258 37,258
4 Shearing machine pic 3 23,000 69,000
5 Manual bending machine pic 3 11,398 34,194
6 Pedestal grander pic 4 73,963 295,852
7 Rolling machine pic 1 36,000 36,000
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 Unit Total
No Item with specification Unit Qnt.
price Price
8 Bending machine pic 1 38,629 38,629
9 Punching machine pic 3 11,000 33,000
10 Arch Welding Machine pic 25 23,300 582,500
11 Mig weld cement pic 4 103,793 415,172
12 Spot welding pic 2 94,200 188,400
13 Small welding machine pic 8 15,207 121,656
14 Tig welding pic 4 268,000 1,072,000
15 Anvil pic 7 4,260 29,820
16 Surface plate pic 4 6,521 26,084
17 Tool box pic 12 3,100 37,200
18 Small hand grinder pic 1 4,300 4,300
19 Trolley pic 1 9,600 9,600
Manual bar bending
20 pic 2
machine 2,750 5,500
21 Pipe manual bar bending pic 1 3,258 3,258
22 Bench table(working table ) pic 28 2,870 80,360
23 Metabo grinder hand pic 9 6,300 56,703
24 Hand drill pic 1 4,200 4,200
25 Drill machine pic 9 13,552 121,964
26 Grinder machine pic 1 5,432 5,432
27 Radial drill machine pic 1 43,423 43,423
28 Hand sharing machine pic 3 4,120 12,360
29 Hydraulic pinch pic 1 16,400 16,400
30 Aluminum puncher pic 1 11,200 11,200
Aluminum circular saw
31 pic 1
cutter 10,300 10,300
32 Aluminum key maker pic 1 12,700 12,700
33 Aluminum cutter pic 2 8,173 16,347
34 Circular saw pic 2 5,100 10,200
35 Air compressor pic 1 4,200 4,200
36 Power hammer machine pic 1 40,867 12,000

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 Unit Total
No Item with specification Unit Qnt.
price Price
37 Forming blower machine pic 1 12,000 12,000
38 Oil ferns machine pic 1 270,720 270,720
39 Lathe machine pic 22 58,300 1,282,600
40 Lathe machine big pic 5 260,000 1,300,000
41 Shaper Machine pic 3 120,000 360,000
42 Milling Machine pic 7 168,000 1,176,000
43 NC milling machine pic 1 230,000 230,000
44 CNC milling pic 1 250,000 250,000
45 CNC Lathe pic 1 14,000 14,000
46 Universal Milling Machine pic 2 186,000 372,000
47 Universal grinding machine pic 2 160,000 320,000
48 Tool Grinder machine pic 7 3,102 21,714
49 Turret lathe pic 1 85,000 85,000
50 Swivel chair Pic 10 6,043 60,435
51 Laptop Pic 2 23,304 46,609
52 Office table Pic 10 7,000 70,000
53 Black board Pic 5 3,500 3,500
54 Notice board Pic 5 2,900 14,500
55 Book shelf Pic 10 3,800 38,000
56 Chair Pic 97 1,264 122,608
57 Arm chair Pic 23 2,880 66,240
58 Bench Pic 2 2,460 4,920
59 Table/ teacher table/ pic 42 3,058 128,436
60 Stool pic 23 1,154 26,542
61 Drawer pic 3 6,751 20,253
62 Tools drawer pic 15 12,000 180,000
63 Box pic 1 1,845 1,845
64 Metal Cupboard pic 2 6,751 13,502
65 Shelf pic 8 3,800 30,400
66 Locker pic 23 3,185 73,255
67 LCD Projector Pcs 2 7,500 15,000

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 Unit Total
No Item with specification Unit Qnt.
price Price
68 Dividing or indexing head pcs 1 20,000 20,000
69 HP printer Pic 1 10,000 10,000
3,541,69 13,426,29
Total 490 2 1
N.B. the above prices of the existing machineries are estimated
Required Building
The department has its own buildings, which have 2 lecture rooms, 6 demonstration rooms, and 3
stores and, 6 offices, 1 simulation room. The sizes of the details of the areas are listed below::
Table-6: Fixed Asset- Buildings
No Description Unit Qnt. Estimated price Total Price
1 Installation practical area 1 m2 600m2
2 Installation practical area 2 m2 600m2
3 Advanced Machining practical m2 600m2
area 1
4 Machining practical area 2 m2 300m2
5 Advanced welding shop1 m2 300m2
6 Founder shop1 m2 300m2
7 lecturing room m2 36m2
8 Department office 1 m2 14m2
9 Department office 2 M m2 12m2
10 Installation practical office 1 area m2 12m2
11 Installation practical office 2 area m2 12m2
12 Advanced Machining office 1 m2 6 m2
area
13 Machining office 2 area m2 6 m2
14 Advanced welding office area m2 6 m2
15 Foundry shop office area m2 6 m2
Total
N.B. The price could not be found

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Input material for Manufacturing.
The input materials are for all regular, extension and short term trainings are listed below:
Input Table 7:
Item Name with Detail Unit Total
No specification Unit qut price Price
1 Black sheet metal 2000*1000*1.5 Pcs
mm 65 730 45,000
2 Galvanized sheet metal 1000*0.4 Kg
mm Kg 65 150 7,800
3 Galvanized sheet metal 1000*0.6 Kg
mm kg60 170 10,200
4 Galvanized sheet metal Kg
1000*0.8mm Kg 60 190 11,400
5 Aluminum sheet 2000x1000x2 Pcs 25 2500 62,500
6 Aluminum sheet 2000x1000x3 Pcs 25 3000 3,000
7 Stainless steel sheet 2000x100x2 Pcs 25 3000 75,000
8 Stainless steel sheet 2000x100x3 Pcs 25 3500 87,500
9 Electrode Ф 2.5 mm Pct 120 200 24,000
10 Electrode Ф 3.2mm Pcs 37 250 9,250
11 Aluminum filler Ф 2.4mm Kg 15 kg 1000 15,000
12 Stainless steel fillerФ1.6mm Kg 15 kg 1000 15,000
13 Tungsten Electrode Ф2.4x175mm Pact 10 pact 100 1,000
14 Tungsten Electrode Ф3.2x175mm pact 10 pact 100 1,000
15 RHS 20*20*1.5mm Pcs 50 350 17,500
16 RHS 25*25*1.5mm Pcs 70 370 25,900
17 RHS 30*30*1.5mm Pcs 70 370 25,900
18 RHS 40X20X2X6000 PCS 110 210 23,100
19 RHS 50x30x2x6000 pcs 80 300 24,000
20 Round iron (Ф 6MM)x6000 Pcs 85 200 17,000
21 Round iron (Ф 10MM) x6000 Pcs 63 270 17,010
22 Round iron (Ф 12MM) x6000 Pcs 90 315 28,350

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 Item Name with Detail Unit Total
No specification Unit qut price Price
23 flat bar 5omx4mx6 meter Pcs 25 220 5,500
24 Flat bar30x3x6000 Pcs 25 230 5,750
25 Flat bar20x3x6000 Pcs 30 250 7,500
26 Round bar Ø30mm X 6M Pcs 25 285 7,125
27 Argon Gas with cylinder. bottle 3 4000 12,000
28 Argon Gas refill only botte 6 2300 13,800
29 Carbon dioxide gas with cylinder bottle
(Co2) 2 2400 4800
30 Carbon dioxide (Co2)refill bottle 8 1100 8800
31 Oxygen gas(O2)with cylinder bottle 4 800 3200
32 Oxygen gas(O2)with refill bottle 8 800 6400
33 Acetylene gas(CH4) bottle 15 180 2700
34 L- profile Pcs 100 360 36,000
35 T- profile Pcs 100 360 36,000
36 z- profile Pcs 100 360 36,000
37 Cutting Disk(180*22.23*1.6) Pcs 100 60 6,000
38 Grinding (Disk180*22.23*6.5) Pcs 100 60 6,000
39 Anti-rest (grey) gallo
n 35 230 8050
40 Paint Red color Pcs 30 230 6900
41 Paint Yellow color Pcs 30 230 6900
42 Paint blue color Pcs 35 230 8050
43 Paint standard (Black) Pcs 25 230 5750
44 Tonner/Black cartridge pcs 6 650 3,900
45 Paper (A4) Desta 32 90 2,880
46 Paper( A3) Desta 11 120 1,320
47 Drill bit (Ø1mm-Ø13mm) set 15 300 4500
48 Drill bit Ø14 pcs 10 14 140
49 Drill bit (Ø15mm pcs 10 15 150
50 Drill bit Ø16mm pcs 10 16 160
51 Drill bit Ø17mm pcs 10 17 170
52 Drill bit Ø18mm pcs 8 18 144

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 Item Name with Detail Unit Total
No specification Unit qut price Price
53 Drill bit Ø19mm pcs 8 19 152
54 Drill bit Ø20mm- pcs 5 20 100
55 High SpeedSteel12x12x200 set 6 200 1200
56 High SpeedSteel14x14x200 set 5 220 1100
Total 1886 34,889 795,555

2. Manpower requirement
The total monthly petrol cost for our service business is expected to be birr ___________, currently
we have two A-level Instructor, two B-level senior instructor, two- B level Instructor, two- B Junior
Instructor and 6 C-level Senior Trainer and two tool person. one founder worker and one workshop
technical .However, we have to work trainers development to use those C Level trainers they have
practical skill.
The details of these labor cost for the department is shown in the tables below.
Table-8.Direct Labor
No Position Qualificatio No. Experienc Salary Salary
n e /month /year Remark
1. Instructor A-level 2 Above 4 10,000 200000
2. Senior instructor B-level 2 Above 4 9,000 180,000 One will be
hired
3. Instructor B-level 2 Above 3 8,000 160,000 One will be
hired
4. Junior Instructor B-level 2 1 and 4,000 80,000 2 will be
above hired
5. Senior Trainer C-level 6 Above 5 5500 330,000
Total 690,000

Table-9: Indirect labor /supporting staff)

N Position Qty Qualificati Experie Salary/ Salary/
o on nce Month year Remark
1 Tool person 2 C -level 1 3,000 72,000
45,6
2 Foundry worker 1 C -level 12 3,800 00

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 36,0
3 Shop Technician 1 C -level 12 3000 00
Total 153,600

Table-10: Overhead Expense/year

Unit Total
No Item Unit Total
Cost Cost
1. Maintenance 50,000 50,000 50,000 50,000
2. Electricity Exp. 565
3. Internet cost 1,000 1,000 1,000 1,000
4. License 1,500 1,500 1,500 1,500
5. Depreciation 1,678,286
Total 1,731,351

Table-11: Investment Cost

No Item Cost
1 Inputs for six month 425,000
2 Infrastructure 50,000
3 License 1,500
4 For the purchase of
machinery, tools & Euipm.
Total 476,500

9. Sales Forecast
Below is determined the sales description of training products, training payment/fee based on its
program types; Regular, extension and short term training. See the table below for details.

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 10. Income from the Product/services

In the manufacturing department, we planned to produce metallic types of products which are listed below. But, we are not stick only on
those types instead, we may produce different items which are not mention on the bellow table but according our plan the followings are
expected to be to produce. Based on this, we have planned to collect 362,820.00birr in our first year and it will be increasing through the
planned years.

Table 12: Five years income description of product sales

Item sales price No of prodact / year Total sales / each year Total
type of Product 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1 Hinge diameter 6 36 48 63 83 84 100 120 140 140 140 3,600.00 5,760.00 8,820.00 11,620.00 11,760.00
2 Hinge diameter 8 36 48 63 74 75 100 120 140 140 140 3,600.00 5,760.00 8,820.00 10,360.00 10,500.00
3 Hinge diameter 10 38 48 64 75 76 100 120 140 140 140 3,800.00 5,760.00 8,960.00 10,500.00 10,640.00
4 Hinge diameter 12 51 68 87 100 100 100 120 140 140 140 5,100.00 8,160.00 12,180.00 14,000.00 14,000.00
5 Hinge diameter 14 53 70 90 102 102 100 120 140 140 140 5,300.00 8,400.00 12,600.00 14,280.00 14,280.00
6 Hinge diameter 16 53 70 90 94 95 100 120 140 140 140 5,300.00 8,400.00 12,600.00 13,160.00 13,300.00
7 Casting of aluminum ingot /kg 26 35 46 58 59 1500 1800 2000 2200 2400 39,000.00 63,000.00 92,000.00 127,600.00 141,600.00
8 for one bending of diameter 10 round 11 15 17 21 22 500 600 620 620 620 5,500.00 9,000.00 10,540.00 13,020.00 13,640.00
9 for one bending of diameter 12 round 13 15 18 23 24 500 600 620 620 620 6,500.00 9,000.00 11,160.00 14,260.00 14,880.00
10 for one bending of diameter 14 round 16 18 21 26 27 500 600 620 620 620 8,000.00 10,800.00 13,020.00 16,120.00 16,740.00
11 for one bending of diameter 16 round 18 20 22 26 27 450 470 490 490 490 8,100.00 9,400.00 10,780.00 12,740.00 13,230.00
12 for one bending of diameter 18 round 19 21 25 30 30 450 470 490 490 490 8,550.00 9,870.00 12,250.00 14,700.00 14,700.00
13 for one bending of diameter 20 round 21 23 26 33 33 400 420 440 490 490 8,400.00 9,660.00 11,440.00 16,170.00 16,170.00
14 for one bending of diameter 25round 21 24 27 32 32 400 420 440 440 440 8,400.00 10,080.00 11,880.00 14,080.00 14,080.00
15 for one bending of diameter 30 round 31 41 43 47 47 400 420 440 440 440 12,400.00 17,220.00 18,920.00 20,680.00 20,680.00
16 For one piece of heat treatment 132 142 151 162 164 600 620 640 640 640 79,200.00 88,040.00 96,640.00 103,680.00 104,960.00
17 for one Point of bending of flat bare 16 19 22 26 28 1000 1100 1100 1100 1100 16,000.00 20,900.00 24,200.00 28,600.00 30,800.00
18 aluminum ingot <10 diameter will calculated 13 15 17 20 22 500 520 520 520 520 6,500.00 7,800.00 8,840.00 10,400.00 11,440.00
19 different Size chair 520 540 580 600 620 50 60 70 80 90 26,000.00 32,400.00 40,600.00 48,000.00 55,800.00
20 Computer stand table 420 483 555 638 734 50 50 60 60 65 21,000.00 24,150.00 33,300.00 38,280.00 47,710.00
21 Different size table 471 534 565 596 600 50 60 65 75 85 23,550.00 32,040.00 36,725.00 44,700.00 51,000.00
22 National assessment 130 140 150 160 170 454 465 475 485 495 59,020.00 65,100.00 71,250.00 77,600.00 84,150.00
Total 362,820.00 460,700.00 567,525.00 674,550.00 726,060.00 2,791,655.00

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Table-13: Regular training (Mechanics and Machining)
Regullare mecanices
SN Item 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
60 60 60 60 60 250 273 314 361 415 15000 16380 18840 21660 24900
70 58 58 60 55 250 273 314 361 415 17500 15834 18212 21660 22825
1 34 60 54 54 58 250 273 314 361 415 8500 16380 16956 19494 24070
10 25 30 30 35 250 273 314 361 415 2500 6825 9420 10830 14525
174 203 202 204 208 Total 43500 55419 63428 73644 86320 322311
60 60 60 60 60 565 622 684 752 827 33900 37320 41040 45120 49620
70 58 58 60 55 565 622 684 752 827 39550 36076 39672 45120 45485
34 60 54 54 58 565 622 684 752 827 19210 37320 36936 40608 47966
2 10 25 30 30 35 565 622 684 752 827 5650 15550 20520 22560 28945
174 203 202 204 208 10 98310 126266 138168 153408 172016
983100 1262660 1381680 1534080 1720160 6881680
Regullare Machining Total 1026600 1318079 1445108 1607724 1806480 7,203,991.00
20 20 20 20 20 250 273 314 361 415 5000 5460 6280 7220 8300
0 20 18 18 18 250 273 314 361 415 0 5460 5652 6498 7470
1 7 0 16 16 16 250 273 314 361 415 1750 0 5024 5776 6640
0 5 0 12 13 250 273 314 361 415 0 1365 3768 4332 5395
27 45 54 66 67 Total 6750 12285 20724 23826 27805 91390
20 20 20 20 20 565 622 684 752 827 11300 12440 13680 15040 16540
0 20 18 18 18 565 622 684 752 827 0 12440 12312 13536 14886
7 0 16 16 16 565 622 684 752 827 3955 0 10944 12032 13232
0 5 0 12 13 565 622 684 752 827 0 3110 8208 9024 10751
10 15255 27990 45144 49632 55409
2
152550 279900 451440 496320 554090 1934300
total 159300 292185 472164 520146 581895 2,025,690.00
1,185,900.00 1,610,264.00 1,917,272.00 2,127,870.00 2,388,375.00 9,229,681.00

Extenshin Mecahnices

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Table 14: Extension training (Mechanics and Machining)
22 22 25 30 35 200 230 265 305 355 4400 5060 6625 9150 12425
0 20 20 23 26 200 230 265 305 355 0 4600 5300 7015 9230
1 0 0 18 18 18 200 230 265 305 355 0 0 4770 5490 6390
0 0 0 15 15 200 230 265 305 355 0 0 0 4575 5325
22 42 63 86 94 4400 9660 16695 26230 33370 90355
22 22 25 30 35 450 495 545 600 660 9900 10890 13625 18000 23100
0 20 20 23 26 450 495 545 600 660 0 9900 10900 13800 17160
0 0 18 18 18 450 495 545 600 660 0 0 9810 10800 11880
2 0 0 0 15 15 450 495 545 600 660 0 0 0 9000 9900
22 42 63 86 94 10 9900 20790 34335 51600 62040
99000 207900 343350 516000 620400 1786650
Extenshin Machining Total 103400 217560 360045 542230 653770 1,877,005.00
20 20 20 20 20 200 230 265 305 355 4000 4600 5300 6100 7100
0 18 18 18 18 200 230 265 305 355 0 4140 4770 5490 6390
1 0 0 16 16 16 200 230 265 305 355 0 0 4240 4880 5680
0 0 0 14 14 200 230 265 305 355 0 0 0 4270 4970
20 38 54 68 68 4000 8740 14310 20740 24140 71930
20 20 20 20 20 450 495 545 600 660 9000 9900 10900 12000 13200
0 18 18 18 18 450 495 545 600 660 0 8910 9810 10800 11880
0 0 16 16 16 450 495 545 600 660 0 0 8720 9600 10560
2
0 0 0 14 14 450 495 545 600 660 0 0 0 8400 9240
10 9000 18810 29430 40800 44880
90000 188100 294300 408000 448800 1429200
94000 196840 308610 428740 472940 1,501,130.00
Total 197,400.00 414,400.00 668,655.00 970,970.00 1,126,710.00 3,378,135.00
Total in / year 197,400.00 414,400.00 668,655.00 970,970.00 1,126,710.00 3,378,135.00

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Table-15: Short Term Training (Skill gap training, unemployed youths (project based) training and other

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 I
S
t
. S ales Price/S tudent No of Trainees in each Year Total S ales/Each Year
e
N
m
Total
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Tig &M IG welding 200 230 265 304 350 10 14 18 20 22 2000 3220 4770 6080 7700
Tig welding 200 230 265 304 350 11 12 13 14 14 2200 2760 3445 4256 4900
Oxy Acitelin 120 138 159 183 210 8 8 8 8 8 960 1104 1272 1464 1680
Arc welding 120 138 159 183 210 8 10 10 10 10 960 1380 1590 1830 2100
Basic Lathe operation 150 173 198 228 262 10 10 10 10 10 1500 1730 1980 2280 2620
Registration Fee

Basic M illing operation 150 173 198 228 262 10 10 10 10 10 1500 1730 1980 2280 2620
Production Planning &control 100 115 132 152 175 6 8 8 8 8 600 920 1056 1216 1400
1
M aintenance M anagement 100 115 132 152 175 6 8 8 8 8 600 920 1056 1216 1400
Auto Cad 100 115 132 152 175 10 10 10 10 10 1000 1150 1320 1520 1750
Solid Work 100 115 132 152 175 6 8 10 10 10 600 920 1320 1520 1750
M odule based Training (Like CoCA) 150 173 198 228 262 20 23 26 28 28 3000 3979 5148 6384 7336
Aluminim Work 150 173 198 228 262 8 8 10 10 10 1200 1384 1980 2280 2620
Foundery 80 92 106 122 140 7 7 7 8 8 560 644 742 976 1120
short Term 6 m(EYE) 0 0 0 0 0 120 0 0 0 0 0
Total 6,960.00 21,841.00 27,659.00 33,302.00 38,996.00
Tig &M IG welding 3000 3450 3968 4563 5247 10 14 18 20 22 30000 48300 71424 91260 115434
Tig welding 3000 3450 3968 4563 5247 11 12 13 14 14 33000 41400 51584 63882 73458
Oxy Acitelin 2000 2300 2645 3042 3498 8 8 8 8 8 16000 18400 21160 24336 27984
Arc welding 1900 2185 2513 2890 3323 8 10 10 10 10 15200 21850 25130 28900 33230
Basic Lathe operation 1300 1495 1719 1977 2274 10 10 10 10 10 13000 14950 17190 19770 22740
Training Fee

Basic M illing operation 1600 1840 2116 2433 2798 10 10 10 10 10 16000 18400 21160 24330 27980
2 Production Planning &control 1200 1380 1587 1825 2099 6 8 8 8 8 7200 11040 12696 14600 16792
M aintenance M anagement 1200 1380 1587 1825 2099 6 8 8 8 8 7200 11040 12696 14600 16792
Auto Cad 300 345 397 456 525 10 10 10 10 10 3000 3450 3970 4560 5250
Solid Work 350 403 463 532 612 6 8 10 10 10 2100 3224 4630 5320 6120
M odule based Training (Like CoCA) 4000 4600 5290 6084 6996 20 23 26 28 28 80000 105800 137540 170352 195888
Aluminum Work 1400 1610 1852 2129 2449 8 8 10 10 10 11200 12880 18520 21290 24490
Foundry 800 920 1058 1217 1399 7 7 7 8 8 5600 6440 7406 9736 11192
short Term 6 m(EYE) 13,000 14950 17193 19771 22737 140 140 140 140 140 1,820,000.00 2,093,000.00 2,407,020.00 2,767,940.00 3,183,180.00
Total 260 276 288 294 296 2,066,460.00 2,432,015.00 2,839,785.00 3,294,178.00 3,799,526.00 14,431,964.00

Remark

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Allocation of fees in % of revenue for the participant on the training is as follows

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10. Mode of operation (Operational Processes)
Market assessment--Document preparation---- promotion – application of trainees – 1st orientation -
Entrance Exam--- Screening--- 2nd orientation -registration – training— cooperative training---
Assessment—- graduation- job mediation—follow-up/tracing

11. Legal form of the project

Legal form of our business is private limited company under Selam Children Village, which is
managing by Selam Technical & Vocational College.
12. Financial Analysis
12.1. Profit and loss Statement
As the profit and loss statement table below shows, the investment will bring a substantial amount of
return to the college. Accordingly, there will be a net profit after tax more than 500,000 birr in the first
year which increases to one million and four hundred in the second year. This figure becomes two
million in the third year and keeps on increasing in the years ahead.

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 Selam Technical & Vocational College
(Manufacturing Department)
Income Statement
2020-2024

Item year-1 year-2 year-3 year-4 year-5

Income from regular training 1,185,900 1,610,264 1,917,272 2,127,870 2,388,375
Income from extension
197,400 414,400 668,655 970,970 1,126,710
program
Income from short term
2,066,460 2,432,015 2,839,785 3,294,178 3,799,526
program
Income from product 362,820 460,700 567,525 674,550 726,060
Total Income 3,812,580 4,917,379 5,993,237 7,067,568 8,040,671
Cost & Expenses
Cost of Input 850,000 935,000 1,028,500 1,131,350 1,244,485
Salary Expense 843,600 927,960 1,020,756 1,122,832 1,235,115
Maintenance 50,000 50,000 50,000 50,000 50,000
Electricity Exp. 565 622 684 752 827
License 1,500 1,650 1,815 1,997 2,196
Depreciation 1,342,629 1,342,629 1,342,629 1,342,629 1,342,629
Miscellaneous Exp. 5,000 5,500 6,050 6,655 7,320
Total Exp. 3,093,294 3,263,361 3,450,434 3,656,214 3,882,572
Income before Tax 719,286 1,654,019 2,542,803 3,411,354 4,158,099
Income Tax (30%) 215,786 496,206 762,841 1,023,406 1,247,430
Net Income/Net Loss 503,500 1,157,813 1,779,962 2,387,948 2,910,669

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 Selam Technical & Vocational College
(Manufacturing Department)
Cash Flow Statement
2020-2024
Selam Te
Cash Inflow 0 1 2 3 4 5
Income from regular, exten. &
Short term training 3,449,760 4,456,679 5,425,712 6,393,018 7,314,611
Income from product 362,820 460,700 567,525 674,550 726,060

Cash received for investment

476,500.00

Total Cash inflow 3,812,580 4,917,379 5,993,237 7,067,568 8,040,671

476,500.00
Cost & Expenses
Cost of Input 850,000 935,000 1,028,500 1,131,350 1,244,485
Salary Expense 843,600 927,960 1,020,756 1,122,832 1,235,115
Electricity Exp. 565 622 684 752 827
License 1,500 1,650 1,815 1,997 2,196
For the purchase additional
1,342,629
fixed Assetws
For infrastructure 50,000 50,000 50,000 50,000 50,000
Total Cash Out Flow 1,342,629 1,745,665 1,915,232 2,101,755 2,306,931 2,532,623
Net Cash Flow -866,129 2,066,915 3,002,148 3,891,482 4,760,637 5,508,048
Cumulative -866,129 1,200,786 4,202,934 8,094,416 12,855,05 18,363,10

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3 1

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3. Business risks
As it is described above, the education project is highly profitable in terms of money. Even
though, it has its unknown encounters. These are: -
 The instability of the government that may disturb the day to day teaching learning
process,
 The inflation of the value of money that may leads the material cost to be
unexpectedly high,
 Lack of expected no students
 Government police on TVET
 the attitude of the families on hared skill
 the new technology will led the trainees for soft skill
 Lack of past experience may impede trainees from registering
 May the trines be able to pay the above cost?
 The capacity of the community.

4. Conclusion
Given the viability of the proposed investment as shown in the financial analysis, it is high time to
make the necessary investment and derive the benefits thereon.
Considering the employment opportunity, the business will create, tax revenue that generates to
the government and above all the return to the promoter, we believe this project is worth
financing from the view point of us.
Thus, to implement the above project efficaciously, Selam Technical and Vocational needs
additional Investment capital of ETB 476,500.00 for the purchase of machineries, tools,
equipment and infrastructure.

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