QUEENS COLLEGE

QUEENS BUSINESS COLLEGE

DEPARTMENT OF MANAGEMENT

AN ASSIGNMENT OF BUSINESS PROPOSAL

PREPARED BY;

YESHIMEBET NIGUSSIE

ID NO YEMGMT0024/14

SUBMITTED TO; DESTA WAKENE (Mr.)

ADDIS ABABA, ETHIOPIA

JUNE 12/2022

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 Table of Content

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s
1. 0. Executive Summary.......................................................................................................................1
2. Background of the Business..............................................................................................................1
3. Feasibility study.................................................................................................................................2
3.1. Market demand................................................................................................................2
3.1.1. Marketing survey.................................................................................................................2
3.1.2. Business demand.................................................................................................................3
3.2. Technical analysis...........................................................................................................3
3.3. Industry analysis..............................................................................................................3
3.4. Financial analysis and Company Ownership..................................................................4
4.2. Vision statement..............................................................................................................5
4.3. Mission statement............................................................................................................6
4.5. Key to successes..............................................................................................................6
4.6. Strategies.........................................................................................................................6
4.6.1. Sales strategy.......................................................................................................................6
4.6.2. Pricing strategy....................................................................................................................7
4.6.3. Promotion strategy..............................................................................................................7
5. Implementation, resource plan and organizational structure..............................................................7
5.1. Time plan........................................................................................................................................7
5.2. Resource plan..................................................................................................................8
5.3. Human resource plan.......................................................................................................8
5.4. Organizational structure..................................................................................................8
6. Financial plan....................................................................................................................................9
6.1. Locations.........................................................................................................................9
6.2. Sales of projections..........................................................................................................9
6.4. Cash requirement...........................................................................................................10
6.5. Source of financing........................................................................................................10
7. SWOT Analysis...............................................................................................................................10
7.1. Strengths........................................................................................................................10
7.2. Weaknesses....................................................................................................................10
7.3. Opportunities.................................................................................................................11
7.4. Threats...........................................................................................................................11
8. Environmental analysis....................................................................................................11

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 8.1. Macro environment.......................................................................................................11
8.2. Technology....................................................................................................................11
8.4. Distributing of Service..................................................................................................11
8.5. Future Services..............................................................................................................12
9. Legal documents......................................................................................................................12
Essential documents such as agreement end memorandums................................................................12
Reference.............................................................................................................................................12

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1. 0. Executive Summary

The proposed Yeshimebet Café is different from the typical establishments found around
Addis Ababa especially around Ayer-tena. The project will adopt a business concept that
offers entertainment, socialization, and communication in an ambient setting while delivering
the best coffee and snacks in the industry of café and restaurant. Yeshimebet Café will the
answer to the increasing demand for a restaurant that offers a relaxing atmosphere and access
to the any customers with satisfactory pricing.

The name Yeshimebet Café derived from the owner’s name, and considering the current
demands of the café services, Yeshimebet café is poised to take advantage of this growth and
moderate competition in the city cafes service industry, with a dedicated and experienced
staff, excellent networking, and effective management and marketing in order to meet the
customer’s interest.

Since, Yeshimebet café is establishment will expect to create employment opportunities for
12 persons. The total investment requirement is estimated at about Birr 1,636,350 is required
for furniture and kitchen equipment. From the total cost investment 100% covered by Owens
capital.

2. Background of the Business

Yeshimebet café is a new café with an expected to open in July, 2014 G.C at the heart of
Addis Ababa Ayer-tena, and expected to give a standardize café service in Addis Ababa. It
will specialize in Fast foods, Dinners, Coffee, Tea, Cappuccino, Frozen, Ice-cream,
homemade cookies and other related activities. In Addis Ababa especially around Ayer-tena
there are many cafe that give services to their customers but still they cannot satisfy the need
and want of the customer in café service terms of both quality and quantity. In order to
maximize customer satisfaction so that Yeshment decide to open a café in Addis Ababa city
Ayer-tena area. The target customers are intellectuals, artists, and writers with reserved VIP
seats, and students, couples, families and foreigners and others.

This business plan offers financial institutions an opportunity to review our vision and
strategic focus. It also provides a step-by-step plan for the business start- up, establishing
favorable sales number, gross margin and profitability. Establishing this yeshment cafe has
beneficiary in maximizing the wellbeing of the society from different perspective. Some of

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them are, Increase the income of the owners, It create employment opportunity, It satisfy the
need of the customer(quality and quantity) within a reasonable price. It provide better place
for younger’s in spending their time. It contributes for the development of the surrounding
area. Increasing government revenue through taxation Business profit tax and VAT, In
general these business increases the welfare of society and this business does not result any
environmental pollution, since it have very low by- product and if any

3. Feasibility study
3.1. Market demand

The coffee industry in Addis Ababa Ayer etena area has experienced a rapid growth in the
last decade. There are several cafes and coffee houses that have been established in the city.
There are several factors that contribute to the growing demand for well brewed coffee in the
area. The growth of the student population has significantly increased the number of coffee
drinkers in the city. The opening of many offices within the Ayertena square has also seen the
growth of professional and office workers to a sizeable population. As such, the demand for
coffee is likely to grow exponentially.

One core element of our strategy will be that of differentiation from our competitors. In terms
of marketing we intend to ensure that our name and services are marketed on an extensive
basis so that customers are aware of our existence. In price, we intend to offer reasonable and
competitive prices in comparison to competition and we need to be able to sustain that. Our
service marketing will strive to ensure that we establish long relationships with clients.

3.1.1. Marketing survey

Café and restaurants services are the cornerstone of many economies in the world. They avail
employment and career opportunities to millions of people globally and in the local
communities. It can also be observed that the internet has, to a large extent, become a center
of conversation among various social groups. The discussions may be based on internet sites
that some individuals have visited or on internet-based businesses. Such discussions could
also take place in some of the latest chat rooms. Nevertheless, such discussions cannot take
place in the office or at the family dinner table. Consequently, there is a need for a
comfortable place where people can share their experiences in comfort as they enjoy a
relaxing cup of coffee.

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Our marketing strategy will be based mainly on making the right service available to the
right target customer. We will ensure that our services' prices take into consideration
organizations' and peoples' budgets, and that these people know that we exist, appreciate the
value of our services, and how to contact us. The marketing will convey the sense of quality
in every picture, every promotion, and every publication.

3.1.2. Business demand

The key element in service utilization decisions made at the enterprises client level is trust in
the reputation and reliability of the firm. The most important factor in this market will be the
quality of the service and places of excursion. This is particularly so considering the various
interests of individuals and groups as they strive to see as many places as possible.

The very nature of our services dictates that the pricing of our services will vary according to
distance traveled, as different customers to visit different areas and within specified time
frames. In our line of business, clients often compare the café service and catering styles.
However, they usually follow word of mouth recommendations obtained from hotels, travel
agencies, government departments, car hire companies and other such related companies.

3.2. Technical analysis

Description of Products and Services, Yeshimebet café will offer high quality coffee, tea and
cappuccino, fast foods and dinner at a very reasonable price. Also sell homemade cookies,
cakes, brownies, and Doughnuts, with fair price.

The Key Features of the Products and Services, all drinks will be made with filtered water
and the highest quality ingredients can get. Frozen drinks will have caramel or chocolate
syrup drizzled in the glass and over the drink. Cappuccino will have whipped cream toppings
as well as the option for candy sprinkles. Cookies will have the option of a chocolate or
caramel dip and sprinkles. Also offer designer flavored cream and five kinds of sweetener,
i.e. sugar, honey, Equal, Splenda, and Sweet-n-Low. Cream and sweetener is at no extra
charge. Furthermore, the fast foods include chips, cookies, Burger, pizza.

3.3. Industry analysis

Potentially Ethiopia is richest coffee resources to producing café and establishes coffee shop
is becoming an increasingly important player in the economy and may peoples are
incorporating in the long term prove even more valuable than mineral resources in earning

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foreign exchange. Due to this in mind Yeshimebet café is intends to play a contributing role
towards development of the intersegment and restaurant café industry through provision of an
impeccable mobile service facility primarily directed customers.

3.4. Financial analysis and Company Ownership

Yeshimebet café is a sole proprietorships enterprise incorporated at the Registrar of

enterprises through the foresight and vision of the owner. It is a 100% by private owned of
domestic Ethiopian small scale firm as per article of memorandum of Ethiopian commercial
code.

The start-up expenses contains rent, facilities, expenses on marketing, sales and promotion,
building website, license and so on. The start-up assets include tables, chairs, kitchen
facilities, various utensils and computers.

Examples
No Start-up Unit: ETB
Requirements
Start-up Expenses 10,000 Remark
Legal 8,000
Rent 50,000
Facilities 10,000
Cash required 8,000
Marketing, sales and promotion 10,000
License 3,000
Other 50,000
Total Start-up Expenses 131,000
Start-up Assets
Cash required
Start-up Inventory 60,000
Other Current Assets 50,000
Long-term Assets 10,000
Total asset 120,000
Total asset requirement 251,000

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Start-up Funding Unit: ETB Remark
Start-up Expenses to Fund 131,000
Start-up Assets to Fund 120,000
Total Funding Required 251,000
Assets
Non-cash Assets from Start-up 0
Cash Requirements from Start-up 120,000
Additional Cash Raised 0
Cash Balance on Starting Date 120,000
Total Assets 120,000

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 50,000

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

Total Liabilities 0

Capital 0

Planned Investment 0

Parents 100,000

Other 0

Additional Investment Requirement 0

Total Planned Investment 100,000

Start-up Expenses 131.000

Total Capital 31,000

Total Capital and Liabilities 120,000

Total Funding 25100

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4.2. Vision statement

Yeshimebet cafe will become the leading and foremost coffee shop center in the area of
Ayertena Addis Ababa. We will serve a perfect product at a very reasonable price.

4.3. Mission statement

Yeshimebet café will provide a completely sophisticated, sensual, yet casual dining and/or
coffee house experience for the many Addis people and visitors who frequent the city's casual
dining spots and entertainment venues. Yeshimebet aims to be able to employ several full
time members of staff and build up a team so that the partners can be clear of routine tasks
and concentrate on day to day activities like meeting customer, supervising the cafeteria,
holding extensive promotion activity and so on which help the business to develop well and it
will intend to create and nurture a healthy, respectful, and enjoyable environment for all who
wants to feel love with our employees are fairly compensated and encouraged to respect the
customer and the quality of the service we intend to provide.

4.5. Key to successes

The keys to Yeshimebet café will success undoubtedly effective market segmentation
through identification of several niche markets and implementation strategies. Keep
developing new customers. Use Customer relationship management to keep customers.
Through making advertisements to make the marketing of the products and brand. Build
the first-class marketing channel. Employ and Train workers to first-class. Establish the first-
class learning organization and business culture. Establish long-term partnership with
suppliers. The main success tool for this small scale enterprises are: Product quality, Service
Marketing, Management locations and are essential.

4.6. Strategies

4.6.1. Sales strategy

The key fulfillment and delivery will be provided by the employees of the company. We will
turn to reputable companies for supplying the necessary individuals and groups for our
services. Yeshimebet café sales strategy includes: Establish coffee service at local
businesses, Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups,

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Create an ongoing sampling program, Conduct a consistent, aggressive marketing program
Be an active member of the community; be visible at charitable functions, Solicit customer
feedback to constantly improve and streamline our operation and Staff salaries are key factors
in order to attract the best people who are around and Hiring for attitude so that Yeshimebet
always have a friendly, enthusiastic staff to make customers feel welcome and appreciated;
constant staff training to assure the best quality possible

4.6.2. Pricing strategy

Yeshimebet café will be competitively priced in relation to the dictates of the market. Due to
the introductory nature of our services we intend to implement a penetration pricing strategy
which will ensure that potential customers are not frightened away by our prices, up until our
services are appreciated and fully operational.

Food, drinks, and entertainment options are priced to give us an attractive margin while at the
same time offering value to the consumer. Yeshment want repeat business and also want the
experience to remain fresh. Within lies why the food, beverages, and musical/entertainment
programming will be relatively flexible. Comparing with other competitive cafeterias we will
provide fewer prices to our customers.

4.6.3. Promotion strategy

This strategy will be based primarily on informing potential customers of the existence of
café and catering services and making the right information available to our target customer.
The first step that Yeshimebet take in promoting our café is conducting an opening
eEnterprise. On this ceremony different well known peoples will be invited and some part of
the customers will also be invited. Also invite our neighbors to have a good public
relationship. We will also send out advertise through direct mail, which will include cents off
coupons. Will promote our company name and label almost more than the product itself,
because to be successful besides have to stand for brand-name integrity, excellent menu
offerings, and first class entertainment and fun.

5. Implementation, resource plan and organizational structure

5.1. Time plan
The operation of Yeshimebet cafe will start at the beginning of 2022 after certain prerequisite
activities are accomplished.

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 The time schedule is stated
No Activities Time schedule Remark
1 Developing the project as well June 11/2022
2 Obtaining the license from concerned body July 10/2022
3 Purchase materials and renting the building August 05/200
4 Promotional activity and upcoming facilities September 12/2022

5.2. Resource plan

Main source: The owner’s money, relatives and friends. The individual person will be
regarded as the investor, they may not directly take part in the operation and management of
the company, but they will enjoy the stock dividends. Apply patent of the product and
develop technology:

The restaurant will take Institute of Food Science and Technology of Kunming University of
science and technology as the technical background asking to them to help developing
products and technologies, and then it could apply loans from the bank. Keeping good
reputation, caring about the preferential policies released by the government: Good credit
and social reputation are valuable for a business. With a good reputation, the restaurant could
attract many social investors.

No Items Cost in ETB Remark

1 Coffee boiler machine 20,000
2 Kitchen equipment 75,000
3 Refrigerator 13,000
4 Sofas and chairs (furniture) 265,000
5 Rental for building 17400
6 Labor cost 15260
7 Other expenses 14000
Total cost of the business 387,982

5.3. Human resource plan

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The personnel plan calls for hiring 12 full-time salaried employees at start-up. Any additional
hires will be part time and devoted to the expansion of any catering function, as well as
increased capacity/operation of a private party function.

5.4. Organizational structure

Yeshimebet café is a small scale enterprise it shall be managed primarily by working owners.
It will engage more of a functional organization structure whereby people shall be focusing
on their prime area of expertise.

6. Financial plan

6.1. Locations
Organizational structure

The financial plan shall be essential to meet the organization objectives. The intention is to
finance growth through cash flow and equity. As a Start-up Summary;

The location of Yeshimebet café will be near to the main square of Ayertena and is size will
be about 150 square meters (Estimation) with panoramic views to the main roads. It has good
environment which is very quiet. It has a convenient traffic system and it is only ten minutes
from the downtown area. Besides, it is next to the wealthiest area and there are many famous
entertainment places around there.

6.2. Sales of projections

The most significant indicators in our case are daily seating "counts" and weekly sales
numbers. Also make sure that we are turning our inventory rapidly so as to offering sufficient

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service to promote the country image as well. Our project will perform greatly to satisfy the
needs of the customers.

6.3. Income projection

Months by 2022
No Activities January Februar March May June Remark
y
1 Hot drinks & Beverages 1900 5432 1234 4320 3209
2 Cakes & cookies 4700 4321 2109 1200 5400
3 Accommodations 6500 1234 4321 1110 2110
4 Fast foods 1900 5100 3450 3210 5032
5 Lunch & Dinner 2300 4321 4327 3201 3091
Tota Total income = = = = = 2,231,500
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6.4. Cash requirement

The business at least needs 1,636,350 birr for business establishment, commencement of
operations and liquidity support with upcoming facilities. The money obtained from owner
only.

6.5. Source of financing

The total investment requirement is estimated at about Birr 1,636,350 and from the total cost
investment 100% covered by Owens capital.

7. SWOT Analysis

7.1. Strengths

Diversified client base: This will reduce our dependency on one particular market.
Combination of skills in employees: The directors intend to engage well-qualified and
experienced employees to jointly develop business strategy and long-term plans, so as to
attain company objectives. Extensive advertising and marketing: the cafe will undertake

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extensive advertising and marketing, promoting both its name as well as service/product
awareness. Hence an aggressive and focused marketing campaign with clear goals and
strategies shall be one of our mainstays.

7.2. Weaknesses

Perhaps, lack of a reputation in comparison to our competitors. This is due to the fact that we
are still new on the market. However this shall be addressed as shown in the marketing
section of this plan. The introduction of new organizational practices and personnel who have
not previously worked together presents a challenge to the organization. A limited financial
base compared to the major players in the industry.

7.3. Opportunities

Current drive by government towards encouraging the participation of indigenous

entrepreneurs in service sector presents an opportunity which we may fully utilize. Current
growth rate of the presents an opportunity for ourselves which we may take advantage.
Presently there is no reliable public transportation company to take tourists to areas of
interest. Job opportunity for unemployment.

7.4. Threats

The present growth of the café and restaurant sector may result in an increasing number of
firms entering the market. This may lead to increased competition emerging from a variety of
given sources including: establishment of cafeterias, hotels and lodges may look at the
development of new lines and vertically integrate transportation so as to provide additional
services to clients. New marketing strategies and tactics by establishment of coffee shops’
aimed at providing excursions of intended competition.

8. Environmental analysis

8.1. Macro environment

At a large scale explore demonstrates that the café services is undergoing a rapid growth of
unsurpassed nature. But the country political instability has been affecting the industry since
the flows of customers out of their home and it demand becomes decline.

8.2. Technology

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Also, Yeshimebet café and catering has a new establishment Ayertena Addis Ababa, besides,
with the development of economy, there is a long development on the café market in recent
years, with the development of catering techniques with less skills. The café will strive to
ensure that it contains the latest or extremely recent personal computer including relevant
software so as to ensure continuously at the forefront in our market arena.

8.4. Distributing of Service

The café will serve the outdoor services to the nearby customers and takeaways to sold
mainly on a word of mouth and referral basis with relationships and previous experience
being, by far, the most important factor. Relationships in this regard means establishment of
links with the various hotels, lodges, and travel agencies who often come into contact with
our target customers. we provide a luxurious, comfortable and unforgettable experience to
our customers that will only encourage them to pass on a good word about us.

8.5. Future Services

In putting the café will be attempted to offer enough services to allow us to always be in
demand by our customers and clients to accommodating further investments.

9. Legal documents

Essential documents such as agreement end memorandums

Reference

Townsend, D.,Busenitz,L,B,Arthurs,j.D.,(2010) To start or not to start: Outcome and ability

expectations in the decision to start a new venture, Journal of Business Venturing, 25, 192-202.

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