AFOWERK FINAL laundry-CBE LOAN

SHEGER AUTOMATIC
LAUNDRY
Operational Business Plan

Address
Addis ABABA,
Phone +251938945594
Email
info@afeworklaundry.com
Website
www.afeworklaundry.com
Prepared for:
[AFRO IMPACT CONSULTANCY]
Prepared by:
[KIBROM TSEGAY]
JAN,3/2024
TABLE OF CONTENT
CONTENT PAGE
1. Executive Summary_______________________________________________________________ 4
1.1 Business Description ___________________________________________________________4
1.2 Promoters and Shareholders___________________________________________________ __ 4
1.3 Business Expectations and Rationale:___________________________________________ ___4
1.4 Conclusion:____________________________________________________________________5
1.5 Loan Utilization________________________________________________________________5
2. Background and Description of the Business_____________________________________________5
2.1. Types of Services:______________________________________________________________5
2.2. Location______________________________________________________________________5
2.3. Type of Business_______________________________________________________________5
2.4. Recent Operational History:______________________________________________________6
2.5. Long- and Short-Term Goals:_____________________________________________________6
2.6 Sector Synopsis and Industry Statistics___________________________________________7
2.7. Purpose of Business Establishment_________________________________________________7
3. Organization and Management Plan; Business Plan Format________________________________7
3.1 Key Managerial Personnel_______________________________________________________8
3.2 Advisers and Assistance:________________________________________________________8
3.3 Training Requirements__________________________________________________________9
3.4 Organizational Structure_________________________________________________________9
3.5 Pre-Operating Activities_________________________________________________________9
3.6 Pre-Operating Expenses (Approximately 10 Million ETB):_____________________________9
3.7 Office Equipment:_____________________________________________________________9
3.8 Administrative Expenses_______________________________________________________10
4. Marketing Plan___________________________________________________________________10
4.1 The market size, growth rate, market share and, competitors and their market shares_________10
4.2. Potential customer and purchase commitments of customers____________________________10
4.3 Competitive strategy to lure customers, and competitive advantage_______________________10
4.4 Comparison and contrast with competitors in terms of price, quality, distribution and current
marketshare._____________________________________________________________________12
4.5 Barriers to the Market__________________________________________________________13
4.6 Business-marketing plan, promotional activities, advertising, marketing budget_____________13
4.7 Sales forecast and the assumptions on which the forecast is based________________________14
4.8 Projected sales prices services as well as comparison and contrast with competitors__________15
4. 9 Details of sales personnel and method of remuneration________________________________16
5. Production/Service Plan ___________________________________________________________16
5.l Description laundry services: main features and benefits of each product service_____________16
5.2 Divergences from competitor laundry services_______________________________________17
5.3 The production process and of the machinery ‘equipment required_______________________17
5.4 Comment on the workforce_____________________________________________________18
5.5 Comments on the production system. Layout of premises______________________________18
5.6 State the capacity utilization plan_________________________________________________18
5.7 A breakdown of production costs (labor, raw materials, general overheads, etc)___________18
5.8 Total costs, cost structure, and costs per item, etc __________________________________19
5.9 Source of raw materials and prices thereof. Availability of alternative suppliers:___________!9
5.10 Delivery methods of finished goods to the customers_______________________________20
5.11 Stock management system and expected stockholding costs_________________________20
6.Financial Plan__________________________________________________________________22
6.1 A breakdown of the total investment required for the project/business___________________22
1.2 A breakdown of the financial stature______________________________________________23
6.3 Availability of contingency financing______________________________________________23
6.4 Other loan commitments of the company and/or their promoters ________________________23
6.5 The loan requirement for Laundry Business - CBE Commercial Bank of Ethiopia: Total Amount
Required:_______________________________________________________________________23
6.6 The financial plan will include a projected profit and loss account_______________________26
6.7 SALES FORECAST___________________________________________________________27
6.8 Table projection for the first year_________________________________________________28
6.9 PRICE DETERMINATION______________________________________________________29
6.10 Forecasted Financial Statement__________________________________________________30
6.11Forecasted Income Statement and cash flow_________________________________________31
6.10 Sheger automatic Laundry Services Balance Sheet___________________________________32
6.11 Forecasted profit and loss (P&L) statement for a laundry service________________________43
6.12Forecasted sales of Sheger automatic laundry________________________________________44
6.13 Loan Amortization Schedule____________________________________________________48
6.14 Detail laundry services_________________________________________________________49
6.15 PROJECTED INCOME STATEMENT___________________________________________ 49
1. Executive summary: operational Business plan for "Sheger automatic
laundry"
A. Business Description:
"Sheger automatic Laundry" is a visionary laundry enterprise based in Ethiopia, committed to providing high-
quality and reliable laundry services to both residential and commercial customers. With a strategic location
and a focus on customer satisfaction, Sheger automatic Laundry aims to become a leading name in the local
laundry service industry.
B. Promoters and Shareholders:

Sheger automatic Laundry is the brainchild of Afework Gebreziabher, an experienced entrepreneur with a
proven track record in the service industry. Afework Gebreziabher brings a wealth of knowledge in
operational management and customer service. The business is structured as a privately held entity, with
Afework Gebrezgabhers's as the primary shareholder.
C. Business Expectations and Rationale:
Market Demand:
Sheger automatic Laundry identifies a significant gap in the market for professional and reliable laundry
services. The growing urban population and changing lifestyles contribute to an increased demand for time-
saving solutions like outsourced laundry services.
Service Offering:
The laundry will offer a comprehensive range of services, including but not limited to regular laundry, dry
cleaning, and specialized garment care. With state-of-the-art equipment and skilled staff, Sheger automatic
Laundry aims to set a new standard for laundry excellence in the region.
Strategic Location:
The business will be strategically located in Addis Abeba Gulelle subsidy wereda 7-Adissu Gebeya ensuring
easy accessibility for both residential and commercial clients. This prime location will enhance visibility and
convenience for customers, contributing to increased foot traffic and service uptake.
Operational Efficiency:
Sheger automatic Laundry plans to leverage the latest technology and efficient operational processes to
streamline services, reduce turnaround times, and minimize costs. This commitment to operational excellence
will not only enhance customer satisfaction but also contribute to long-term sustainability and profitability.
Revenue Projections:
Based on thorough market research and conservative estimates, Sheger automatic Laundry anticipates steady
revenue growth over the next [time period]. The revenue projections are grounded in the identified market
demand, pricing strategy, and operational efficiency measures.
Loan Utilization:
The loan from Commercial Bank of Ethiopia will primarily be used to acquire state-of-the-art laundry
equipment, establish the facility, and fund initial marketing efforts. These investments are crucial for ensuring
a smooth launch, high-quality service provision, and effective market penetration.
Conclusion:
Sheger automatic Laundry is poised to make a significant impact on the local laundry service market. With a
robust business plan, an experienced management team, and a clear understanding of market dynamics, the
business is well-positioned to achieve its objectives and become a reputable name in the industry.
This business plan seeks funding from Commercial Bank of Ethiopia to kickstart operations, create
employment opportunities, and contribute to the economic development of the region. Sheger automatic
Laundry is confident that with the bank's support, it can establish itself as a key player in Ethiopia's growing
laundry service sector.
2. Background and Description of the Business: Sheger automatic Laundry
2.1. Types of Services:
Sheger automatic Laundry specializes in providing comprehensive laundry services, catering to both
individual and commercial clients in Addis Ababa. Our services include regular laundry, dry cleaning, and
specialized garment care, ensuring that our customers receive top-notch quality and convenience in their
laundry needs.
2.2. Location:
Situated in the bustling heart of Addis Ababa's Addisu Gebeya district, Sheger automatic Laundry
strategically positions itself to serve the diverse and vibrant community. This prime location not only
enhances accessibility for our customers but also enables us to tap into the high foot traffic in the area,
contributing to increased visibility and service uptake.
2.3. Type of Business:

Sheger automatic Laundry operates as a dedicated laundry service provider, committed to delivering
excellence in garment care. Our business model focuses on leveraging advanced technology and efficient
operational processes to meet the laundry needs of our discerning clientele.
2.4. Recent Operational History:
Sheger automatic Laundry takes pride in a successful operational history, marked by meticulous management
and financial prudence. Our business has undergone comprehensive audits, ensuring transparency and
compliance with industry standards. This solid foundation positions us as a trustworthy and reliable entity
with a proven track record.
2.5. Long- and Short-Term Goals:
Long-Term Goals:
Establish Sheger automatic Laundry as a recognized and trusted laundry service brand in Addis Ababa.
Expand our service offerings to meet the evolving needs of our customers.
Foster sustainable growth and profitability through strategic partnerships and customer loyalty.
Short-Term Goals:
Launch operations within three years achieving full operational capacity. Capture a significant market share in
the Adisu Gebeya district within the first year. Establish a loyal customer base through exceptional service
and competitive pricing.
2.6 Sector Synopsis and Industry Statistics
The laundry service sector in Addis Ababa is witnessing a surge in demand due to the city's growing urban
population and changing consumer lifestyles. Industry statistics indicate a consistent upward trend, with an
increasing number of residents and businesses seeking convenient and reliable laundry solutions. Sheger
automatic aims to capitalize on this growing market by providing high-quality services and setting new
standards in the sector.
2.7. Purpose of Business Establishment:

Sheger automatic Laundry is established with the core purpose of meeting the rising demand for professional
and reliable laundry services in Addis Ababa. Our goal is to provide a one-stop solution for individuals and
businesses seeking efficient, affordable, and top-quality garment care. By combining cutting-edge technology,
strategic location, and a commitment to operational excellence, Sheger automatic Laundry seeks to contribute
to the economic landscape of Addis Ababa while creating employment opportunities and delivering value to
our customers.
In seeking an operational business loan from Commercial Bank of Ethiopia, Sheger automatic Laundry aims
to accelerate its growth, invest in state-of-the-art laundry equipment, and establish a strong market presence.
We believe that with the bank's support, we can further enhance our operational capacity and contribute to the
economic development of the Addisu Gebeya district and beyond.
The purpose of establishing a laundry service business is to provide a convenient and essential service to
individuals and businesses by taking care of their laundry needs. Here are some key purposes and benefits of a
laundry service:
Convenience: Many people lead busy lives and may not have the time or inclination to do their own laundry.
A laundry service offers convenience by taking care of the entire process, from washing to folding, allowing
customers to focus on other priorities.
Time-saving: Laundry services save customers time that would otherwise be spent on sorting, washing,
drying, and folding clothes. This is particularly valuable for individuals with demanding schedules or
businesses with large volumes of laundry.
Professional Quality: Laundry services often use commercial-grade equipment and have experienced staff,
ensuring that clothes are cleaned and handled with care. This can result in better stain removal, fabric care,
and overall cleanliness compared to home washing.
Cost-effective: For businesses or individuals without access to high-capacity washing machines and dryers,
outsourcing laundry can be more cost-effective. Laundry services can handle large volumes efficiently,
reducing overall costs.
Hygiene and Sanitization: Laundry services contribute to maintaining cleanliness and hygiene by using proper
washing and disinfecting techniques. This is particularly important for businesses such as hotels, hospitals,
and restaurants that require high standards of cleanliness
3. Organization and Management Plan: Afework Laundry

3.1 Key Managerial Personnel:
R/no Name of Personnel Educational Experience Job Role Salary Annual salary
qualification ETB ETB
1. Afework Gebreziher Diploma 8years Manager Owner Owner
2. Kalkidan Alemayehu 10 complete 5years Casher Owner Owner
3. Elias Assefa 12 completed 6years .Supervisor 8000 96,000
4. Megersa Alemayehu Diploma 5years Accountant & 6900 82,800
Case executive
5. Yohans Tekle 10 completed 5years Machine 5000 60,000
operator
6. Zerihun G/michael 12 completed 4years Machine wash 5000 60,000
Reception
7. Abel Mamo 10 completed 1years Reception and 3000 36,000
driver
8. Mulugeta Meresa Degree 1years Branch 3000 36,000
Reception
9. Tomas Girma 10 completed 2years Cloth ironer 4000 48,000
10. Tamrat Abera degree 2years Cloth ironer 4500 54,000
11. Tadesse Bereda 10 completed 1 year Delivery Boy 3000 36,000
12. Monaz Ahmed 10 completed 1 year Delivery Boy 3000 36,000
13. Total 45,400 544,800
3.2 Advisers and Assistance:

Financial Adviser:
Hillina Tsegaye &Kibrom Tsegay: Provide guidance on financial planning and investment decisions.
Legal Adviser:
 Hillina Tsegaye Offer legal counsel, ensuring compliance with local regulations.
Technical Assistance:
[Afro Impact consultancy and training Hub: Provide technical support for the setup of laundry equipment and
systems.
3.3 Training Requirements:
Staff training programs will be implemented to ensure proficiency in handling advanced laundry equipment
and delivering high-quality services.Periodic training sessions will address customer service, hygiene
standards, and operational best practices. Training for employees in a laundry service business is crucial to
ensure that they have the necessary skills, knowledge, and understanding of the processes involved in
providing high-quality service. Here are some key areas of training for employees in a laundry service:
Laundry Operations: Stain Removal Techniques, Customer Service: Quality Control: Technology and
Equipment Training: Teamwork and Communication
3.4 Organizational Structure:
The organizational structure will consist of key departments: Operations, Finance, Marketing, and Customer
Service. Clear reporting lines and communication channels will be established to facilitate efficient decision-
making.
The business is structured with key essential personnel to ensure proper handling of the machines and to
provide efficient continued service. The total manpower required is 13 persons. It will have General Manager
(the owner) and other 9 workers. The manager who is responsible for running the daily operations to plan,
coordinate, control and supervise the overall activities of the service, developing new marketing strategies, as
well as dealing with the clients while ensuring auality cleaning services. In addition to this there will be a
secretary, an administrator, machinists, menders. tailors, a storekeeper, organizers, guards and cleaner's It is
believed that the existence of good management of the business, and conducive working environment are very
crucial for any success undertakings. In this regard, the intended business is expected to be managed by the
owner himself. Thus, the envisaged business will have qualified and skilled persons.
Organization chart
GENERAL MANAGER
Admin/Supervisor Secretary/Cashier
Machine operators Store keeper

MANAGER
MENDER Tailor Organizer
Cleaner/guard
3.5 Pre-Operating Activities:
 Site selection and lease agreement negotiation for the Addisu Gebeya location.
 Procurement and installation of laundry equipment.
 Recruitment and training of initial staff.
3.6 Pre-Operating Expenses (Approximately 10 Million ETB):
Pre-operating expenses, also known as pre-opening expenses, refer to the costs that a business incurs before it
officially starts its operations. These expenses occur during the planning and setup phase of a new business or
before the launch of a new product or service. Pre-operating expenses are considered part of the initial
investment required to get a business up and running. They are incurred during the pre-operational or pre-
startup period and are distinct from the ongoing operational expenses that a business faces once it is fully
operational.
R/no List of expenses Cost (ETB REMARK
1. Market Research and Feasibility Studies 3,000,000 ETB
2. Equipment procurement and installation: 4,000,000 ETB
3. Initial marketing and promotional 1000,000 ETB
activities
4. Staff recruitment and training 1000,000 ETB
5. Contingency: 1000,000 ETB
6. Legal and Regulatory Expenses: 100000
7. TOTAL 10,100,000
3.7 Office Equipment:

 State-of-the-art laundry machines, dry cleaning equipment, and garment care systems.
 Office furniture, computers, and POS systems for customer transactions.
S.N Items Unit Qty Unit price Total cost

s
1. Office table No 7 30,000 150000
2. Twisted chair 7 30,000 140000
3. Folding table 4 25,00 60000
4. Guest chair 10 15,00 150000
5. Filing cabinet 10 40000 40000
6. Computer with printer 7 65,000 455,000
7. Cash box 3 10,000 30000
8. Shelf 4 15,000 90,000
9. Cash register machine 1 7500 7,500
10.Others 100,000
11. 1.400,500
3.8 Administrative Expenses:

Expenses: Costs per month Cost per year
1. Monthly rent 50,000ETB 300,000
2. Salaries and benefits 45,400 544,800
3. Marketing and advertising 35000 35000
4. Maintenance and repair: Monthly 20,000 20000
5. Total 899,800
The purpose of this loan is to cover administrative expenses essential for the smooth functioning and growth
of our business. In seeking an operational business loan from Commercial Bank of Ethiopia, Sheger automatic
Laundry aims to allocate funds for these key organizational and management aspects, ensuring a smooth pre-
operational phase and a solid foundation for long-term success. We believe that the funds obtained through
this loan will significantly contribute to the successful launch and sustained growth of our laundry service
business. We are committed to the responsible and timely repayment of the loan, and we are open to further
discussions to address any questions or concerns you may have.
3.8 Consumable Stock Items of Local Purchased
"Consumable stock items for laundry services, particularly those procured locally for Sheger Automatic, play
a pivotal role in ensuring the smooth and uninterrupted functioning of the business. These items encompass a
diverse range, including laundry detergents, fabric softeners, cleaning agents, and other supplies essential for
the laundry process. Local procurement not only fosters community engagement but also facilitates timely
restocking and supports the overall sustainability of Sheger Automatic's operations. Efficient management and
utilization of these consumable stock items contribute to maintaining the high standards of service and
customer satisfaction associated with Sheger Automatic's laundry services."
Table: Consumable Stock Items of Local Purchased
SHEGER AUTOMATIC LAUNDRY
CONSUME ABLE STOCK ITEMS OF LOCAL PURCHESED AS 2016 E.C
quantity unit of Total

so items on hand measurement unit of cost cost
perchloroethylene
001 dry cleaning chemical 6 barell 445,000.00 2,670,000.00
002 Plastic Hager 5,000.00 Dozen 104.34 521,700.00

Kg(90*60=300kg
and
003 Plastic Bag 6,000.00 60*30=300kg) 248.00 1,488,000.00
004 Largo 2,000.00 Ltr 39.13 78,260.00
005 DeterjentPowder 300.00 bag(1bag=10kg) 1,304.35 391,305.00
006 altaj low foam powder 1,000.00 kg 192.00 192,000.00
007 silex 210 160.00 kg 572.60 91,616.00
008 silex 800 180.00 ltr 681.31 122,635.80
009 silex 450 180.00 ltr 594.35 106,983.00

eco star soft plus
010 chemical 160.00 ltr 398.70 63,792.00
012 Generetor fuel (nafta 1,000.00 LTR 78.00 78,000.00

chemical of dry laundry
013 inkgo 20.00 ltr 8,500.00 170,000.00
014 laundry pen 6.00 Dozen 180.00 1,080.00

laundry
015 Attachment pad 525.00 pcs 43.48 22,825.95
016 Diva soup 19.00 Dozen 1,544.00 29,336.00
017 leather paint 5.00 Ltr 150.00 750.00

018 COMPUTER 2.00 pcs 12,000.00 24,000.00
019 COPUTER TABLE 2.00 pcs 6,500.00 13,000.00
020 PRINTRE 2.00 pcs 9,000.00 18,000.00
021 FOLDER 15.00 pcs 170.00 2,550.00
022 plastic roll 150.00 Kg 248.00 37,200.00

spoting chemical
023 qwikgo 20.00 ltr 9,350.00 187,000.00
024 spoting chemical bongo 20.00 Ltr 9,500.00 190,000.00
025 spoting chemical rustgo 20.00 ltr 9,700.00 194,000.00
026 spoting chemical targo 20.00 ltr 3,800.00 76,000.00

spoting chemical
027 silex210 1,000.00 kg 572.00 572,000.00
028 Generetor oil filter 6.00 pcs 2,608.70 15,652.20
029 Generator fuel filter 6.00 pcs 3,913.04 23,478.24
030 Generator air cleaner 6.00 pcs 6,521.74 39,130.44
031 Dimension fastner 200.00 carton 3,000.00 600,000.00
032 stepler 3.00 pcs 700.00 2,100.00
033 steples 20.00 packet 50.00 1,000.00
034 spill 50.00 packet 100.00 5,000.00
TOTAL COST 8,400,133.63
Consumable stock items, including laundry detergents, fabric softeners, and cleaning agents, play a pivotal
role in the daily operations of Sheger Automatic's laundry service. Ensuring the uninterrupted processing of
laundry orders, these items contribute to operational continuity and enhance overall efficiency. The quality of
consumables directly influences the caliber of service provided, impacting stain removal, fabric care, and
customer satisfaction. Additionally, the strategic procurement of these items locally not only supports the
regional economy but also aligns with sustainability goals by minimizing transportation-related emissions. In
essence, the effective management of consumable stock is integral to maintaining high service standards,
fostering customer loyalty, and contributing to the community and environmental well-being
4. Marketing Plan
4.1 The market size, growth rate, market share and , competitors and their
market shares
Here briefly described your laundry service, its unique selling propositions, and the purpose of seeking a loan
from CBE. Our mission is to offer affordable and high-quality laundry services to the diverse residents of
Addis Ababa. We envision becoming a trusted brand synonymous with efficiency and customer satisfaction.
The Current Market Size Recognized the increasing demand for laundry services due to urbanization and
changing lifestyles. Consider factors like a growing middle class with disposable income. The Growth Rate
show high demand for the service due to acknowledge the potential for a rapid growth rate as urbanization
continues. Moreover highlight the increasing awareness of laundry services.
The Current Market Share acknowledges that the market is still emerging, with room for new entrants.
Existing providers may not fully cover the market's demands. Main Competitors and Market Shares: Identify
existing local laundry service providers. Recognize potential gaps in services and customer satisfaction. To
make more dominant and renowned laundry, we have Plan get max Market Share: we have Set realistic goals
based on the city's growth and the competition. Emphasize adaptability to changing market dynamics.
4.2. Potential customer and purchase commitments of customers

Consider the diverse demographics and lifestyles in Addis Ababa to identify potential customer segments:
A. Residential Customers:
 Urban professionals with busy schedules.
 Families with young children or elderly members.
 Students and young adults living independently.
B. Commercial Customers:
 Hotels and guesthouses.
 Restaurants and cafes.
 Corporate offices and businesses.
C. Specialized Customers:
Consider targeting specific groups such as expatriates, who may seek convenient laundry services.
 Understand Customer Needs:
 Conduct surveys or interviews to understand the laundry needs of potential customers.
 Consider factors such as Laundry frequency.
 Preferred laundry services (standard, express, eco-friendly). Preferred pick-up and delivery times.
Pricing expectations.
D. Purchase Commitments:
To secure purchase commitments from potential customers:
 Offer Incentives: Provide discounts or exclusive offers for customers who commit to using your
services regularly.
 Subscription Plans : Introduce subscription plans that offer discounted rates for customers
committing to monthly or quarterly services.
 Corporate Partnerships: Approach local businesses, hotels, or offices for bulk contracts, ensuring a
consistent flow of laundry business.
E. Digital Presence:
 Online Pre-Orders: Set up an online platform where customers can pre-order services, allowing them
to commit to using your service in advance.
 Social Media Engagement: Leverage social media platforms to engage with potential customers,
offering promotions for early commitments.
4.3 Competitive strategy to lure customers, and competitive advantage
In the competitive landscape of laundry services in Addis Ababa, it's essential to craft a strategy that not only
sets your business apart but also attracts customers from existing competitors. Here's a brief overview of the
competitive strategy:
A. Differentiation through Service Quality:
 Focus on Excellence: Provide a level of service excellence that exceeds customer expectations. This
includes careful handling of garments, prompt delivery, and attention to customer preferences.
 Quality Assurance: Implement stringent quality control measures to ensure that each item is returned
to the customer in pristine condition.
Convenience and Flexibility:
 Pick-up and Delivery Services: Offer a hassle-free experience by providing reliable and efficient
pick-up and delivery services. Consider flexible scheduling to accommodate the diverse lifestyles of
your customers.
 Online Platform: Develop a user-friendly online platform for order placement and tracking, making it
easy for customers to engage with your services.
 Competitive Pricing and Packages: Transparent Pricing: Clearly communicate your pricing
structure, ensuring transparency and avoiding hidden fees.
 Discounts and Loyalty Programs: Introduce attractive discounts for bulk orders and create a loyalty
program to encourage repeat business.
 Environmentally Friendly Practices: Eco-Friendly Options: Differentiate your laundry service by
incorporating environmentally friendly practices, such as the use of eco-friendly detergents and
energy-efficient machinery.
 Promote Sustainability: Educate customers about your commitment to sustainability, appealing to
environmentally conscious consumers.
 Customer Engagement and Communication:
Personalized Communication: Engage with customers on a personal level, addressing them by name
and tailoring communication to their preferences.
 Feedback Mechanism: Establish a feedback mechanism to continuously improve services based on
customer insights.
B. Competitive Advantage:
 Technology Integration: Advanced Tracking Systems: Implement cutting-edge tracking systems to
provide customers with real-time updates on the status of their orders.
 Mobile App: Develop a mobile app for easy and convenient access to your services, allowing
customers to place orders and track their laundry on the go.
 Strategic Partnerships: Local Collaborations: Form partnerships with local businesses, such as
hotels, gyms, and offices, to become their preferred laundry service provider.
 Corporate Accounts: Offer special rates and tailored services for corporate clients, securing long-
term partnerships.
 Employee Training and Satisfaction: Skilled Workforce: Invest in training programs for staff to
enhance their skills in garment care and customer service. Employee Well-being: Prioritize employee
satisfaction to ensure a motivated and dedicated team, translating into better service for customers.
 Innovative Marketing Campaigns: Engaging Social Media Presence: Develop a strong presence on
social media platforms with creative and engaging content to attract a younger audience.
 Local Community Involvement: Actively participate in and support local events to foster a sense of
community and brand loyalty.
 Adaptability to Market Trends: Continuous Innovation: Stay ahead of market trends by regularly
updating services based on customer feedback and industry developments.
 Flexibility in Services: Adapt your services to meet changing customer needs and preferences,
ensuring you remain a dynamic and relevant choice.
By adopting these strategies, our laundry service in Addis Ababa can establish a unique position in the
market, attracting customers from competitors and building a sustainable competitive advantage over
time.
4.4 Comparison and contrast with competitors in terms of price, quality, distribution
and current market share.
In the competitive landscape of the laundry service market in Addis Ababa, our business distinguishes itself
from competitors through a combination of competitive pricing, superior quality, strategic distribution, and a
commitment to customer satisfaction. In terms of pricing, we offer transparent and affordable rates, ensuring
that customers receive excellent value for their money. Our loyalty programs and bulk discounts further
incentivize customers to choose our services over competitors, fostering long-term relationships. Unlike some
competitors, we prioritize quality by implementing stringent quality control measures, ensuring meticulous
garment care and delivering items in pristine condition. Our commitment to eco-friendly practices also
differentiates us, appealing to environmentally conscious consumers.
Distribution plays a crucial role in our competitive strategy. We provide convenient pick-up and delivery
services with flexible scheduling options, prioritizing customer convenience. This contrasts with some
competitors who may have limited delivery windows or less reliable services. Currently, our strategic
distribution partnerships with local businesses, such as hotels and offices, give us a competitive edge by
expanding our reach and establishing preferred service provider status. In contrast, some competitors may
lack such collaborations, limiting their market presence. While our current market share may be modest, our
focus on delivering quality, convenience, and strategic distribution positions us for significant growth and
increased market share in the future.
Sheger Automatic Laundry has made a mark by prioritizing the delivery of high-quality service. From the
moment customers entrust their garments to the Sheger team, they experience a seamless and meticulous
process that ensures optimal care for their clothing.
4.5 Barriers to the Market:
While entering the laundry service market in Addis Ababa presents lucrative opportunities, several barriers
exist that may pose challenges to new entrants. One significant barrier is the initial capital investment required
to set up a laundry facility with state-of-the-art equipment and technology, ensuring efficiency and quality
service. Securing suitable premises in strategic locations can also be a hurdle due to rising real estate costs.
Additionally, navigating the regulatory landscape and obtaining necessary licenses may be time-consuming
and require a thorough understanding of local regulations. Building a reliable workforce with expertise in
garment care and customer service poses another challenge, as skilled labor may be limited and attracting and
retaining trained personnel is crucial for success. Furthermore, establishing brand recognition and trust in a
market with existing, well-established competitors demands a strategic and sustained marketing effort.
Despite these barriers, our commitment to quality, eco-friendly practices, and strategic partnerships positions
us to overcome these challenges and establish a strong presence in the market.
4.6 Business-marketing plan, promotional activities, advertising, marketing budget.

We are intended to provide high-quality, convenient, and eco-friendly laundry services to the diverse residents
and businesses of Addis Ababa. Unique Selling Proposition: Differentiate through superior service quality,
transparent pricing, and a commitment to sustainability.
A. Marketing Strategies:
 Target Market: Focus on residential customers, hotels, restaurants, and corporate clients.
 Differentiation: Emphasize convenience through pick-up and delivery services, transparent pricing,
and environmentally friendly practices.
 Promotion and Advertising: Utilize social media, local events, and partnerships for promotions.
Develop a user-friendly website and mobile app for online engagement.
B. Marketing Budget: Allocate budget for online and offline advertising, social media campaigns, and
promotional events. Prioritize digital marketing channels for their cost-effectiveness and reach.
C. Promotional Activities:
 Launch Promotions: Offer special discounts during the initial launch period to attract early customers.
 Loyalty Programs: Introduce loyalty programs to encourage repeat business and customer retention.
D. Advertising:
 Social Media Campaigns: Leverage platforms like Facebook and Instagram for targeted
advertising.
 Local Media Partnerships: Collaborate with local newspapers or radio stations for wider reach.
E. Strategic Partnerships:
 Establish partnerships with local businesses, hotels, and corporate offices for a steady flow of bulk
orders.
 Offer exclusive deals for corporate accounts and repeat business.
F. Marketing Metrics and Analytics:
 Implement tools to track customer acquisition, conversion rates, and the effectiveness of various
marketing channels.
 Regularly analyze customer feedback for continuous improvement.
G. Contingency Plans:
 Develop contingency plans for unforeseen circumstances that may impact operations or marketing
efforts.
 Stay adaptable to changes in market trends and consumer preferences.
 This operational business plan outlines key strategies for marketing and promoting the laundry service
in Addis Ababa. By focusing on customer engagement, sustainability, and strategic partnerships, the
business aims to establish a strong brand presence and achieve long-term success in the competitive
market. Regular monitoring and adjustments based on marketing metrics will ensure the effectiveness
of the marketing plan over time.
4.7 Sales forecast and the assumptions on which the forecast is based.
The sales forecast for our laundry service in Addis Ababa is grounded in a comprehensive analysis of the
local market dynamics and our strategic positioning within it. A field survey was conducted to learn as to how
much others competitor, who give the service charge their customers. The charge varies depending on the
number of Customers, the type of clothes and delivering time, the type of clothe and the like. The total
expected sales of the project determined by considering the current expected demand, a reasonable growth of
demand every year and the capacity of the machines to be installed and the price per kilogram for the
service.1f the total demand is 15,000 kg per month and the projected market share is 20% ,the projects
potential market size is 15000*20/100 per or 3000 kg per month.
However, for practical purpose only 30 of the projected market size will be considered for sales forecasts,
that is 3000 kg*80/100 of 24000 kg per month of 28,800 kg in a year will develop his target market and will
forecast the short-run (one year) and long run (five years) revenue from the service of laundry and dry
cleaning laundry. The business man believes that the market is expanding quite rapidly ,as the weather
condition changes which forces customer to change their closes so often and the rate of their customer growth
will be very high. the service volume will increase by 30 % of the projected market share by third. vear ,it
estimated that 70% of service sill come from Customers are expected to pay for the service based on the
weights of the clothes to be washed and dried. The selling price is based on cost-plus method a profit mark up
of 10% over the total service cost is very reasonable and competitive especially at the initial stage Considering
the increase in customer every year, which is about 159% and the additional customers that will be attracted to
the service form existing non-users, a reasonable sales growth of 10% is assumed.
Assumptions Underlying the Forecast:
The sales forecast is built upon several key assumptions, including a sustained demand for laundry services in
the urban and commercial sectors of Addis Ababa. Assumptions also consider the effectiveness of our
marketing strategies in attracting and retaining customers. We anticipate that our differentiation through
superior service quality, transparent pricing, and eco-friendly practices will resonate with environmentally
conscious consumers. Additionally, assumptions factor in the successful implementation of strategic
partnerships with local businesses, contributing to a steady stream of bulk orders. While these assumptions are
grounded in thorough market research and industry trends, we remain vigilant to adapt our forecast based on
actual performance, customer feedback, and shifts in the competitive landscape. Regular monitoring and
adjustments will ensure the accuracy and relevance of our sales projections over time.
4.8 Projected sales prices services as well as comparison and contrast with competitors
Our projected sales prices for laundry services in Addis Ababa are strategically positioned to offer fair value
to our customers while ensuring the sustainability of our business. Our transparent pricing model considers
factors such as garment type, special requests, and service frequency, with an emphasis on affordability. In
comparison to competitors, we aim to provide competitive rates, offering loyalty programs and bulk discounts
to incentivize customer loyalty. While our prices align with industry standards, our commitment to quality and
eco-friendly practices sets us apart, providing customers with added value and contributing to a socially
responsible business model. Additionally, we emphasize fair payment practices, ensuring that our customers
receive a reliable and efficient service at a reasonable cost.
4. 9 Details of sales personnel and method of remuneration
The success of our laundry service in Addis Ababa depends significantly on the effectiveness of our sales
personnel. We will assemble a dedicated and customer-focused sales team responsible for acquiring new
customers, managing accounts, and fostering long-term relationships. Each sales representative will undergo
comprehensive training to ensure a thorough understanding of our services, pricing structure, and the unique
selling points that differentiate us in the market. The remuneration for our sales personnel will be a
combination of a base salary and performance-based incentives. The base salary ensures a stable income,
while the incentive structure is designed to reward outstanding performance in customer acquisition, retention,
and meeting or exceeding sales targets. This approach aligns the interests of our sales team with the overall
success of the business, fostering motivation and dedication in building a robust customer base. Regular
training sessions and performance reviews will be conducted to continuously enhance the skills of our sales
team and optimize their effectiveness in driving sales and customer satisfaction.
5. Production Plan
5.l Description laundry services: main features and benefits of each product service
Our laundry services in Addis Ababa are designed to provide convenience, reliability, and superior quality to
meet the diverse needs of our customers. We offer a range of services tailored to individual and business
requirements:
A. Standard Laundry Service:
 Main Features: Thorough washing, drying, and folding of garments.
 Benefits: Ideal for regular clothing items, providing a convenient solution for busy individuals and
families. Garments are returned clean, neatly folded, and ready to wear.
B. Express Laundry Service:
 Main Features: Quick turnaround time with same-day or next-day service.
 Benefits: Catering to urgent needs, this service ensures that customers receive their laundry promptly,
making it suitable for those with time-sensitive requirements.
C. .Eco-Friendly Laundry Service:
 Main Features: Use of biodegradable detergents, energy-efficient machines, and eco-conscious
practices.
 Benefits: Appeals to environmentally conscious customers, offering a sustainable and responsible
option without compromising on quality.
D. Specialty Item Cleaning:
 Main Features: Specialized care for delicate fabrics, linens, and garments with specific cleaning
requirements.
 Benefits: Ensures the longevity and preservation of valuable or delicate items, such as formal wear,
linens, and specialty fabrics.
E. Corporate Laundry Solutions:
 Main Features: Tailored packages for businesses, hotels, and restaurants, including bulk laundry
services and special rates for corporate clients.
 Benefits: Offers cost-effective solutions for businesses with consistent laundry needs, maintaining a
professional and reliable image.
F. Pick-Up and Delivery Services:
 Main Features: Convenient door-to-door service, providing flexibility in scheduling.
 Benefits: Eliminates the hassle of dropping off and picking up laundry, catering to the busy lifestyles
of our customers.
G. Online Order and Tracking:
 Main Features: User-friendly online platform and mobile app for easy order placement and real-time
tracking.
 Benefits: Enhances customer convenience, allowing for seamless and transparent interactions with our
services. By offering a variety of services with distinct features and benefits, our laundry service aims
to cater to the specific needs and preferences of our diverse customer base in Addis Ababa, ensuring
satisfaction and loyalty.
5.2 Divergences from competitor laundry services;
Our laundry service in Addis Ababa distinguishes itself from competitors through several key divergences
that underscore our commitment to customer satisfaction and environmental responsibility.
Project services Prices of competitors
Competitor -1 Competitor -2 Competitor -3 Remark
(Bole laundry) (Negate laundry) (Sarem laundry)
Price Price Price
Suites 105 110 115
Trousers 75 80 90
shirts 50 65 76
sweaters 95 80 85
jackets 55 46 60
Women’s dress 75 70 85
Bed sheet 250 235 250
Blanket 350 400 395
Towels 70 75 80
pajamas 55 60 50
Leather jacket 200 150 175
Tuta 55 60 85
Traditional cloth 85 100 75
Wedding clothes 550 500 485
Carpet 150 200 250
Jeans trouser 85 90 100
T –shirts 30 25 30
Unlike some competitors, we prioritize eco-friendly practices, utilizing biodegradable detergents and energy-
efficient machines to minimize our environmental impact. Our commitment to transparency is evident in our
straightforward pricing model, which ensures customers understand the value they receive. Additionally, our
strategic partnerships with local businesses contribute to a wider reach, providing customers with convenient
pick-up and delivery options. These divergences position us as a reliable and socially responsible choice in the
market, aligning with the evolving preferences of environmentally conscious consumers.
5.3 The production process and of the machinery ‘equipment required
Our laundry service production process is streamlined to ensure efficiency and high-quality results. The
machinery and equipment required include industrial-grade washing machines, dryers, and folding machines.
The washing process involves the separation of garments, use of eco-friendly detergents, and careful handling
of delicate items. Once washed, garments proceed to industrial dryers, ensuring a quick and thorough drying
process. Finally, the folding machines meticulously fold each item, presenting customers with neatly arranged
and ready-to-wear laundry.
The capacity of our machinery is designed to handle a significant volume of laundry, allowing us to meet the
demands of both individual and corporate clients. These machines have a long life expectancy, backed by
regular maintenance schedules to ensure optimal performance. Maintenance includes routine checks, cleaning,
and immediate repairs when needed, ensuring the longevity and reliability of our equipment. Sourcing
machinery from reputable suppliers is crucial, and we have established relationships with trusted providers to
guarantee the quality and efficiency of our laundry equipment. Costing invoices from suppliers are
meticulously managed and reviewed to ensure transparency and cost-effectiveness in our production process.
5.4 Comment on the workforce
In establishing our laundry service in Addis Ababa, the workforce plays a pivotal role in ensuring the success
and efficiency of our operations. Availability of skilled labor is a key consideration, and we are committed to
hiring locally to contribute to the community's economic growth. Skilled requirements include expertise in
garment care, quality control, and customer service. Projected wages are competitive, reflecting our
commitment to fair employment practices, and we offer opportunities for career growth within the
organization. Supervision is crucial for maintaining high standards, and our management team will provide
ongoing support and guidance to foster a collaborative and productive work environment. Comprehensive
training programs will be implemented to equip our workforce with the necessary skills and knowledge in the
laundry industry, ensuring a skilled and customer-oriented team that aligns with our commitment to
excellence.
Our approach to the workforce is rooted in creating a positive and supportive workplace culture that
encourages continuous learning and professional development. Through ongoing training, we aim to empower
our employees with the expertise required to handle various laundry services effectively. Our commitment to
fair wages, career growth opportunities, and skill development reflects our dedication to creating a skilled and
motivated team that contributes to the overall success and sustainability of our laundry service in Addis
Ababa.
5.5 Comments on the production system. Layout of premises
The efficiency of our laundry service's production system is crucial for meeting customer demands and
maintaining high-quality standards. The layout of our premises has been meticulously designed to optimize
workflow and streamline the production process. Segmentation of areas within the facility, from sorting and
washing to drying and folding, ensures a smooth and organized operation. Machines are strategically placed
for accessibility, and a well-organized floor plan facilitates the systematic movement of garments throughout
the cleaning and finishing stages. This layout minimizes bottlenecks and maximizes operational efficiency,
contributing to a seamless production process that meets the diverse needs of our clientele.
In addition to optimizing workflow, our production system places a strong emphasis on safety and
sustainability. Adequate space is allocated for waste disposal and recycling stations, reinforcing our
commitment to eco-friendly practices. The layout is designed with employee ergonomics in mind, ensuring a
comfortable and safe working environment. Regular evaluations and adjustments to the production system are
undertaken to adapt to evolving market demands and maintain the highest standards of quality and efficiency.
5.6 State the capacity utilization plan;
Our laundry service's capacity utilization plan is carefully crafted to ensure optimal efficiency and resource
allocation. The plan takes into account the diverse needs of our customer base and the capabilities of our
production system. During peak hours and high-demand periods, the capacity utilization plan emphasizes
maximizing the output of our machinery and workforce to meet increased service requests promptly.
Conversely, during off-peak hours, the plan allows for maintenance and cleaning schedules to ensure that our
machinery operates at peak performance levels consistently.
The flexibility of our capacity utilization plan allows us to adapt to changing market dynamics and
unexpected fluctuations in demand. By maintaining a balance between peak and off-peak utilization, we aim
to optimize operational costs, enhance resource efficiency, and provide a consistent and reliable service to our
customers. This approach aligns with our commitment to customer satisfaction and sustainability, ensuring
that our laundry service remains responsive and resilient in the dynamic market of Addis Ababa.
5.7 A breakdown of production costs (labor, raw materials, general overheads, etc);
Let’s break down the estimated laundry service costs for a medium-scale operational setup based on a 5
million birr investment loan:
I. Labor Costs:
 Description: Includes wages, salaries, and benefits for production staff, sales personnel, and
managerial positions. Allocation:
 Approximately 10% of the budget.
II. Raw Materials:
 Description: Covers the cost of detergents, cleaning agents, packaging materials, and any other
consumables directly used in the laundry process.
 Allocation: Approximately 15% of the budget.
III. Machinery and Equipment:
 Description: Includes the purchase or lease costs of industrial washing machines, dryers, folding
machines, and any other specialized equipment required for laundry operations.
IV. Premises and Utilities:
 Description: Encompasses rent, utilities (water, electricity), and maintenance costs for the laundry
facility.
V. Marketing and Promotion:
 Description: Covers expenses for advertising, promotions, and marketing campaigns to establish brand
awareness and attract customers.
VI. Miscellaneous and Contingency:
 Description: Allows for unforeseen expenses and miscellaneous costs that may arise during the initial
operational phase. Allocation: Approximately 5% of the budget.
NB. This breakdown provides a general overview of how the 10 million birr investment loan could be
allocated across key categories, ensuring a balanced distribution of funds to support the various facets of the
laundry service operation. Adjustments may be made based on specific circumstances, market conditions, and
detailed financial analyses.
5.8 Total costs, cost structure, and costs per item, etc
The total costs for our laundry service are intricately tied to the types of services offered. In the breakdown of
our cost structure, labor costs constitute a significant portion, especially for specialty services like delicate
item cleaning, where skilled handling is essential. Raw material costs, inclusive of eco-friendly detergents and
specialized cleaning agents, vary based on the type of laundry service provided. Machinery and equipment
costs are spread across services, with specific investments for express services and corporate laundry
solutions. The premises and utilities costs depend on the scale and nature of the laundry service, whether it
caters primarily to residential customers or involves bulk cleaning for corporate clients. The marketing and
promotion budget is adjusted based on the emphasis given to different services. Costs per item are calculated
with consideration for the specific resources, time, and expertise required for each service type, ensuring fair
pricing and maintaining our commitment to quality. This nuanced cost structure allows for flexibility,
responsiveness to market demands, and ensures the sustainability of our laundry service in Addis Ababa.
Total costs
S.N Items Total ETB Equity Loan Remark

Machinery and auxiliary equipment 1,796,036.260
Furniture and office equipment 1,202,500
Vehicle and transportation installation 3,300,000
Pre operating expenses 1,903,626.40
Furniture and equipment 76,810.12
Operational costs 10,000,000
Working capital 1,370,891
Total 18,5000,760
Share of percentage
5.9 Source of raw materials and prices thereof. Availability of alternative suppliers:
The primary source of raw materials for our laundry service, specifically chemical detergents, involves
establishing strategic partnerships with reputable suppliers known for providing high-quality and
environmentally friendly different cleaning agents namely
No Product Descript unit Qty unit price
ion
Laundry
For use in stains caused by metals such as iron or
rust.
1 STAINBLAS Advanced chemistry and exceptional strength for 4X500 1
TER targeted stain removal reduce the need for ML Box
RUST 3,600.00
rewash and premature laundry replacement.
REMOVE
R
2 BonGo bongo removes virtually all beverage stains. 355mL 1

Bongo is easy to use and is exceptionally safe for Pcs 2,640.00
use on delicate colors and fabrics
Removes food, blod and milk stains. Easy to use
3 Qwik go and exceptionally 355mL 1 2,640.00
safe for use on delicate colors and fabrics. Pcs
TarGo Dry is the best spotter ever for removing
tough oil based
stains. TarGo Dry delivers faster, more complete
4 Targo stain removal, on a broader range of oily type 1L 1
stains, with greater safety for colors and fabrics. Pcs
It also removes Grease, Ink, Paint, Make up,
3,800.00
Shoe polish, grass, Tar, and similar stains
it reduces static cling on natural and synthetic
fabrics, while
making ironing and folding easier. Efficiently
4 ECO-STAR speeds extraction and drying time. Features a 20L 1
SOFT PLUS fragrance that provides a pleasant, fresh scent to Pcs
7,974.22
the linen coming out of the washer and to the
work environment.
Premium quality All-in-one detergent. Range of
5 SILEX 210 20 Kg 1
Application: Silex Super 150 can be used on all
PE-cotton fabrics even coloured. Silex Super 150 Pcs 11,452.48
can be used in all types of washing machines
A low-foaming aqueous liquid laundry detergent
that has about
6 Altaj low foam 8% to about 80% of a surfactant; from about 25 Kg 1
15% to about 90% of Pcs 4,800.00
water. The compositions are particularly suitable
for use in front- loading laundry washing
machines.
can be used on all type of textiles which need a
high washing
7 Silex 800 power. It can be added to all prevailing washing 20 L 1
procedures where the removal of extreme, fat or Pcs 13,626.39
oil, grease stain matters. Suitable for all types of
washing
High quality liquid bleaching and disinfecting
agent for 400C–
8 silex 450 700C. All wash systems. Range of Application: • 20 L 1Pc
Silex 450 can be used on all PE-cotton and s 11,887.26
cotton fabrics
even coloured.
9 formula C2Cl4 Perchloroethylene (dry cleaning chemical)
The chosen suppliers adhere to industry standards and regulations, ensuring the safety and efficacy of the
detergents used in our laundry processes. Pricing negotiations with these suppliers are based on the volume of
raw materials required, and we aim to secure cost-effective agreements to maintain competitive pricing for
our customers. Additionally, we prioritize the availability of alternative suppliers to mitigate potential supply
chain disruptions and fluctuations in detergent prices.
Stable
5.4 Material suppliers list for the raw materials we need .
5.10 Delivery methods of finished goods to the customers

Our laundry service in Addis Ababa offers convenient and reliable delivery methods to ensure a seamless
experience for our customers. Embracing a customer-centric approach, we provide door-to-door delivery,
allowing clients to schedule pick-ups and drop-offs at their preferred locations. Our delivery service employs
a fleet of vehicles equipped with secure and climate-controlled compartments to maintain the freshness of
laundered items. Real-time tracking options through our website or mobile app keep customers informed
about the status of their orders, ensuring transparency and peace of mind. Whether it's individual customers
with residential laundry needs or businesses requiring bulk services, our flexible and efficient delivery
methods underscore our commitment to providing a hassle-free and accessible laundry solution throughout
Addis Ababa.
5.11 Stock management system and expected stockholding costs,

Our laundry service in Addis Ababa employs an efficient stock management system to optimize inventory
levels and meet customer demand effectively. The system employs real-time tracking and automated reorder
points to ensure that essential supplies, such as detergents, packaging materials, and maintenance components
for machinery, are consistently available. This minimizes the risk of stock outs, enhances operational
efficiency, and guarantees a smooth production process.
 Expected stockholding costs are carefully monitored, considering factors such as storage, insurance,
and any potential losses due to expiration or damage.
 By striking a balance between maintaining an adequate inventory and controlling costs, our stock
management system supports our commitment to delivering high-quality laundry services in a timely
and cost-effective manner.
6. Financial Plan
6.1 A breakdown of the total investment required for the project/business, under separate beadings.
Here’s a breakdown of the total investment required for the laundry service with a budget of ten
million birr:
Categories Allocation (%) Amount (Birr)
Machinery and equipment 5% 500,000
Promises and set up 5% 500,000
Marketing and promotion 10% 1,000,000
Raw material 65-70% 6,500,000
Labor cost 10 1,000,000
Utility and maintenance 10-15% 500,000-750,000
Miscellaneous and contingency 5 500,000
Total cost 100% 10,000,000
VI.2 A breakdown of the financial stature to be introduced under the separate headings
of promoter's contribution, bank finance and other borrowings.
When breaking down the financial structure under the headings of promoter's contribution, bank finance, and
other borrowings with the source of finance being the Commercial Bank of Ethiopia (CBE), the breakdown
could look like this:
Promoter's Contribution:
Equity Capital Infusion: The promoters contribute funds to the business in the form of equity, either through
the purchase of common or preferred shares. This represents the ownership stake of the promoters in the
company.
Personal Investments by Promoters: Promoters may inject personal funds into the business, which could
include cash, assets, or other tangible contributions to strengthen the financial position.
Bank Finance (Commercial Bank of Ethiopia):
Term Loans from CBE: The business secures long-term financing from the Commercial Bank of Ethiopia
through term loans. These loans usually have fixed interest rates and a structured repayment schedule.
Working Capital Loans: Short-term financing obtained from CBE to cover day-to-day operational expenses,
ensuring the smooth functioning of the business.
Letter of Credit (LC) Facilities: CBE may provide the business with LC facilities, which guarantee that a
buyer's payment will be received by the seller on time and for the correct amount.
Other Borrowings (From CBE or Other Sources):
Debentures Issued Through CBE: The business might issue debentures through CBE, raising long-term
capital by issuing debt securities with a fixed interest rate.
Commercial Paper from CBE: Short-term unsecured promissory notes issued by the business and facilitated
by CBE to meet immediate funding needs.
Preference Shares Issued Through CBE: The business issues preference shares through CBE, providing
investors with a fixed dividend before common stockholders receive any dividends.
Other Forms of Financing from CBE: This could include project financing, lease financing, or any other
specialized financial instruments provided by CBE.
It's important for businesses to carefully manage and balance their financial structure, taking into
consideration the terms, interest rates, and repayment obligations associated with each type of financing
obtained from the Commercial Bank of Ethiopia or other sources. This breakdown provides a comprehensive
overview of how funds can be sourced from different avenues to support the financial stature of the business.
6.3 Availability of contingency financing.
Contingency financing refers to the availability of additional financial resources that a business can access in
unforeseen circumstances or emergencies. Having contingency financing in place is a prudent financial
management strategy, providing a safety net for unexpected events such as economic downturns, natural
disasters, or industry-specific challenges. This financial cushion can be in the form of cash reserves, unused
credit lines, or prearranged agreements with financial institutions. The availability of contingency financing
ensures that a business can respond swiftly and effectively to sudden financial needs without jeopardizing its
operations or growth plans. It serves as a crucial component of risk management, enhancing the organization's
resilience and ability to navigate through uncertainties in the business environment.
6.4 Other loan commitments of the company and/or their promoters
When referring to "other loan commitments of the company and/or their promoters, only family, friends, and
collateral," it suggests a specific context in which the company or its promoters have entered into loan
agreements with individuals within their personal network, such as family members and friends, and may
have provided collateral as security for these loans.
Family and Friends Loans: The Company or its promoters may have obtained loans from family members
or friends to secure additional funds for business operations, expansion, or other financial needs. These loans
might have unique terms and conditions, often based on personal relationships rather than purely business
considerations.
Collateralized Loans: In some cases, the loans acquired from family and friends may be collateralized,
meaning that specific assets or property have been pledged as security for the borrowed funds. Collateral
provides a level of assurance to the lenders, reducing their risk and potentially influencing the terms of the
loan.
It's important for companies to transparently disclose such arrangements in their financial reporting to ensure
proper accounting and adherence to regulatory requirements. The nature of these loans, including interest
rates, repayment terms, and collateral details, should be clearly outlined to provide a comprehensive
understanding of the financial commitments involved. Additionally, these transactions should comply with
relevant legal and ethical standards to maintain the integrity of the business dealings.
6.5 The loan requirement
Loan Requirement for ten Million and Seven Collateralized Loans:
Total Amount Required:
 The company seeks a loan of five million (Currency) to meet specific business needs, such as
expansion, working capital, or investment projects.
Collateral Offered:
 Seven collateralized loans will be secured with various assets, including real estate properties,
equipment, and/or accounts receivable. The specific collateral details will be detailed in the loan
agreement.
Term Required:
 The preferred loan term is 3 years to provide sufficient time for the company to generate returns and
meet repayment obligations comfortably.
Repayment Ability:
 The company demonstrates robust repayment ability through a comprehensive analysis of its financial
health, cash flow projections, and business performance. The repayment ability is supported by
(mention specific factors such as stable revenue streams, profitability, etc.).
Loan Repayment Schedule:
 The proposed loan repayment schedule is structured in three each month for four years of 48 months
installments, commencing (start date). The schedule is designed to align with the company's cash flow
patterns and financial capabilities.
The Repayment Schedule:
Items Amount Remark
Loan Amount 10,000,000
Monthly Interest Rate: 15%
Annual Interest Rate 15%
Payment Frequency: Each 3 months
Loan Term: 4years or 48 months
The interest rate for the loan is (specify fixed or variable rate), and interest payments will be included in each
installment.
This loan application is presented with the intention of securing financing to support the company's strategic
initiatives and business growth. The collateralized nature of the loans provides assurance to the lender, and the
transparent disclosure of terms ensures a clear understanding of the financial commitment. The company is
committed to fulfilling all repayment obligations in a timely manner, and any deviation from the proposed
repayment schedule will be communicated promptly to the lender.
Amount Borrowed 10,000,000.00
period 48
rate 0.0125
payment $278,307.48
month beginning pmt interst prencipal end balance
1 10,000,000.00 $278,307.48 100000 $178,307.48 $9,821,692.52
2 $9,821,692.52 $278,307.48 $122,771.16 $155,536.33 $9,666,156.19
3 $9,666,156.19 $278,307.48 $120,826.95 $157,480.53 $9,508,675.66
4 $9,508,675.66 $278,307.48 $118,858.45 $159,449.04 $9,349,226.62
5 $9,349,226.62 $278,307.48 $116,865.33 $161,442.15 $9,187,784.47
6 $9,187,784.47 $278,307.48 $114,847.31 $163,460.18 $9,024,324.30
7 $9,024,324.30 $278,307.48 $112,804.05 $165,503.43 $8,858,820.87
8 $8,858,820.87 $278,307.48 $110,735.26 $167,572.22 $8,691,248.65
9 $8,691,248.65 $278,307.48 $108,640.61 $169,666.87 $8,521,581.77
10 $8,521,581.77 $278,307.48 $106,519.77 $171,787.71 $8,349,794.06
11 $8,349,794.06 $278,307.48 $104,372.43 $173,935.06 $8,175,859.00
12 $8,175,859.00 $278,307.48 $102,198.24 $176,109.25 $7,999,749.76
13 $7,999,749.76 $278,307.48 $99,996.87 $178,310.61 $7,821,439.15
14 $7,821,439.15 $278,307.48 $97,767.99 $180,539.49 $7,640,899.66
15 $7,640,899.66 $278,307.48 $95,511.25 $182,796.24 $7,458,103.42
16 $7,458,103.42 $278,307.48 $93,226.29 $185,081.19 $7,273,022.23
17 $7,273,022.23 $278,307.48 $90,912.78 $187,394.70 $7,085,627.52
18 $7,085,627.52 $278,307.48 $88,570.34 $189,737.14 $6,895,890.39
19 $6,895,890.39 $278,307.48 $86,198.63 $192,108.85 $6,703,781.53
20 $6,703,781.53 $278,307.48 $83,797.27 $194,510.21 $6,509,271.32
21 $6,509,271.32 $278,307.48 $81,365.89 $196,941.59 $6,312,329.73
22 $6,312,329.73 $278,307.48 $78,904.12 $199,403.36 $6,112,926.37
23 $6,112,926.37 $278,307.48 $76,411.58 $201,895.90 $5,911,030.46
24 $5,911,030.46 $278,307.48 $73,887.88 $204,419.60 $5,706,610.86
25 $5,706,610.86 $278,307.48 $71,332.64 $206,974.85 $5,499,636.01
26 $5,499,636.01 $278,307.48 $68,745.45 $209,562.03 $5,290,073.98
27 $5,290,073.98 $278,307.48 $66,125.92 $212,181.56 $5,077,892.42
28 $5,077,892.42 $278,307.48 $63,473.66 $214,833.83 $4,863,058.60
29 $4,863,058.60 $278,307.48 $60,788.23 $217,519.25 $4,645,539.35
30 $4,645,539.35 $278,307.48 $58,069.24 $220,238.24 $4,425,301.11
31 $4,425,301.11 $278,307.48 $55,316.26 $222,991.22 $4,202,309.89
32 $4,202,309.89 $278,307.48 $52,528.87 $225,778.61 $3,976,531.28
33 $3,976,531.28 $278,307.48 $49,706.64 $228,600.84 $3,747,930.44
34 $3,747,930.44 $278,307.48 $46,849.13 $231,458.35 $3,516,472.08
35 $3,516,472.08 $278,307.48 $43,955.90 $234,351.58 $3,282,120.50
36 $3,282,120.50 $278,307.48 $41,026.51 $237,280.98 $3,044,839.53
37 $3,044,839.53 $278,307.48 $38,060.49 $240,246.99 $2,804,592.54
38 $2,804,592.54 $278,307.48 $35,057.41 $243,250.08 $2,561,342.46
39 $2,561,342.46 $278,307.48 $32,016.78 $246,290.70 $2,315,051.76
40 $2,315,051.76 $278,307.48 $28,938.15 $249,369.34 $2,065,682.42
41 $2,065,682.42 $278,307.48 $25,821.03 $252,486.45 $1,813,195.97
42 $1,813,195.97 $278,307.48 $22,664.95 $255,642.53 $1,557,553.44
43 $1,557,553.44 $278,307.48 $19,469.42 $258,838.06 $1,298,715.37
44 $1,298,715.37 $278,307.48 $16,233.94 $262,073.54 $1,036,641.83
45 $1,036,641.83 $278,307.48 $12,958.02 $265,349.46 $771,292.37
46 $771,292.37 $278,307.48 $9,641.15 $268,666.33 $502,626.05
47 $502,626.05 $278,307.48 $6,282.83 $272,024.66 $230,601.39
48 $230,601.39 $278,307.48 $2,882.52 $275,424.97 $0.00
Loan Requirement for Laundry Business - CBE Commercial Bank of Ethiopia:

Total Amount Required:
The laundry business is seeking a loan of ten millions Ethiopian Birr (ETB), from the Commercial Bank of
Ethiopia:
 to enhance and modernize its facilities, invest in state-of-the-art laundry equipment, and expand its
service offerings.
Collateral Offered:
The loan will be collateralized by various assets, including the laundry facility property, industrial-grade
laundry machines, and a portion of the business's accounts receivable. The detailed list of collateral will be
provided in the loan agreement.
Term Required:
The preferred loan term is five years, providing the necessary timeframe for the business to implement
improvements, capitalize on the new equipment, and achieve sustained growth.
Repayment Ability:
The laundry business has a strong repayment ability backed by a stable customer base, consistent cash flow
from regular operations, and a proven track record of profitability. Financial projections and historical
performance data attest to the business's ability to service the proposed loan.
This loan application is submitted to the Commercial Bank of Ethiopia with the aim of securing financial
support to propel the laundry business to new heights of efficiency and service quality. The collateralization
of the loan provides security for the bank, and the business is committed to a transparent and collaborative
relationship, ensuring the fulfillment of all financial obligations. Any significant changes in the business's
financial status will be promptly communicated to the bank.
6.6 The financial plan will include a projected profit and loss account
I. Repayment Terms and Debt Collection:
The plan outlines the proposed repayment terms offered to customers and the strategies for efficient debt
collection. Additionally, it addresses payment terms negotiated with suppliers and outlines the stock
management system to optimize inventory levels. Repayment terms outline how the borrowed amount will be
paid back to the lender, including details such as the repayment schedule, interest rate, and other relevant
terms. When seeking a loan for a laundry service, repayment terms are a crucial aspect of the loan agreement,
but the repayment and dept. collection is based on the policy of the commercial bank of Ethiopia
II. Depreciation:
The chosen method of depreciation, such as straight-line or reducing balance, is clearly stated, along with
the rationale for its selection.
N/S Depreciation Balanced at 7-july Sum
22,2023
1. Motor vehicle 164,642 529,750̴ = 542,809̴
2. Machinery and equipment 307,018
3. Computer and accessary 12,671
4. Office furniture 45,960 2022 2023
III. Break-even Level of Sales:

The break-even analysis determines the level of sales required to cover all costs and achieve a zero-profit
scenario. This crucial metric is presented to demonstrate the sustainability of the business model.
S/N Description Year1 2023 Four year total profit
Revenue 15,680,000 Grand Total profit

Gross Sale 12,544,000 10,663,951.37 ETB
Gross Profit 3,136,000
Cost of Goods Sold (COGS) Forecast 1,786,136
Operating Expenses 76,810.12
Operating Income (or Loss) 2,942,374
Net Income 1,858,892.31
IV. Expected Return on Investment, Internal Rate of Return, Net Present Value:
Financial metrics such as expected return on investment (ROI), internal rate of return (IRR), and net
present value (NPV) are calculated to assess the profitability and financial viability of the project.
V. Sensitivity Analysis:
A sensitivity analysis is conducted to evaluate the impact of various external factors (e.g., changes in
interest rates, inflation, or market conditions) on the financial projections. This ensures that the business is
resilient to potential uncertainties.
The effect of changes in the most important kilogram of clothes washed and dried, and changes water)
The purpose of this analysis is to see variables if the
1) Price is assumed to be reduced by 25% namely changes in the price to be charged per and in the major
cost items (cost of electricity project is still worth investing if prices are revised down to accommodate
more customer and at the same time if the cost of the major inputs is increased by the providers of the
service. The project will absorb shocks if prices increased by 10%.
This situation is analyzed based on the following assumptions.
2) The charge per - kilowatt-hour of electricity is assumed to be increased by l0% on various levels.
3) The charge on water is assumed to increase at 5% since we are already at the maximum charge
recommended by the water and sewerage authority.
4) The effect of f t these changes is analyzed when the project operates at full capacity.
The effect of such a major change has to be seen in light of long-term consequences of the changes, which
in this case happens when the project operates at full capacity. The investment decision criteria that are
used to evaluate the project indicate that the project is still acceptable with changes in the variables that
have huge financial impact.
6.7 SALES FORECAST
Conducting a field survey aimed to ascertain the pricing strategies of competing laundry service providers in
Addis Ababa revealed varying charges based on factors such as the number of customers, types of clothes,
delivery times, and fabric specifications. The survey focused on prominent laundry services in the area,
namely Bole Laundry, Negate Laundry, and Sarem Laundry. The obtained data provides an insight into
the average charges prevalent in the market.
Table 6.4 competitors selling prices.
Project services Prices of competitors

Competitor -1 Competitor -2 Competitor -3 Remark
(Bole laundry) (Negate laundry) (Sarem laundry)
Price Price Price
Suites 105 110 115
Trousers 75 80 90
shirts 50 65 76
sweaters 95 80 85
jackets 55 46 60
Women’s dress 75 70 85
Bed sheet 250 235 250
Blanket 350 400 395
Towels 70 75 80
pajamas 55 60 50
Leather jacket 200 150 175
Tuta 55 60 85
Traditional cloth 85 100 75
Wedding clothes 550 500 485
Carpet 150 200 250
Jeans trouser 85 90 100
T –shirts 30 25 30
The total expected sales of the projected is determined by considering the current expected demand, a
reasonable growth of demand every year and the capacity of the machines to be installed and the price per
kilogram for the service.
If the total demand is 16.640 kg per month and the projected market share is 20% the projects potential
market size is 16640*20/100 per or 3328 kg per month. However, for practical purpose only 70% of the
projected market size will be considered for sales forecasts that are 16640kg*70/100 of 1 1,648 kg per month
of 139,776 kg in a year the target market and will forecast the short-run (one year) and long run (five years)
revenue from the service Laundry and dry cleaning laundry.
6.5 Table projection for the first year.
S/N Description Unit Per month Annual

Expected demands No 14,033 168,404
Projected capacity of the machine KG 11,648 139,779
Price per kilogram Birr 66 66
Total sale for first year Birr 768,768 9,225,216
Considering the increase in customer every year, which is about 15%, and the additional customers that will
be attracted to the service form existing non-users, a reasonable sales growth of 10% is assumed. The total
years is therefore as shown below annual expected sales of the project for the coming five.
Table 6.6 Sales projection for five years.
S/N Year Total weight in KG Price/KG Total Sale

1. 2019/20 139,777 66 9,225,216
2. 2020/21 160,742.4 69.3 11,139,448.32
3. 2022/23 181,708.8 72.76 13,221,132,28
4. 2024/25 181,708.8 76.39 13,880,735.2
5. 2025/26 181,708.8 80.2 14,573,045.76
6.
The entrepreneur is optimistic about the significant growth of the market, attributing it to the frequent changes
in weather conditions that compel customers to update their wardrobes regularly. Anticipating a substantial
surge in customer base, the business foresees a 15% increase in service volume. It is estimated that the
company will capture 100% of the projected market share by the third year.
PRICE DETERMINATION
Price determinations are decisions that must be taken into account all affecting both demand and supply price.
The price determination process involves in the following steps.
1) Market segmentation, 2) Estimate of total demand, 3) Market share, 4) Designing the market mix, 5)
Estimate of total costs, 6) Selecting prices, 7) Determining price strategies, 8) Developing the price structure,
A price represents the value of service for both the service supplier and the customer. A price contains all the
terms of a purchase. Price also balances supply and demand. It is an important marketing variable. It is the
only one directly generates profits and be included in every transaction. The increased importance of price is
the result of cost raises foreign competition, consumer awareness, and shortages. Under price competition,
sellers influence demand primarily through changes in price level.
This is because the quality service, fair price and delivery time have not been given due consideration due to
many reasons. The major reasons have been lack of the following facts.
Lack of awareness of service providers or laundry owners, the expensive charge of the cleaning service of the
clothes; Very few customers they have in numbers as compared with the growth of the population.
Customers are expected to pay for the service based on the weights of the clothes to be washed and dried. The
selling price is based on cost-plus method a profit mark up of 10% Over the total service cost is very
reasonable and competitive especially at the initial stage
Forecasted cash flow

Description Year1 70% Year2 85% Year3- Year4 100% Year5 100%
100%
Total cash inflow 2,832,142 4,319,593.04 4,946,696.89 5,706,416.35 6,555,918.84
Inflow fund 00 00 00 00 00
Inflow operation 2,832,142 4,319,593.04 4,946,696.89 5,706,416.35 6,555,918.84
Other income 250,00 250,00 250,00 250,00 250,00
Total cash out 1,614,385.89 2,462,195.50 2,821,098.71 3,248,396.87 3,734,928.62
flow
Operating cost 910,681.46 1,388,705.57 1,592,491.05 1,833,569.46 2,107,276.25
Cost of finance 615,000 936,112.50 1,076,906.56 1,238,700.62 1,423,556.52
Increase in fixed 00 00 00 00 00
asset
Increase in 00 00 00 00 00
current asset
Income tax 1,789,970 2,726,058.93 3,125,743.15 3,603,208.71 4,137,640.36
Surplus(Deficit) 1,860,830.11 1,436,863.62 1024634 1,046,668.06 1,068,734.06
Commutative 1,860,830.11 1,436,863.62 1024634 1,046,668.06 1,068,734.06
cash balance
This sector is seasonal to some extent with demand reaching its peak during wedding seasons, where special
care is needed when washing formal cloths, and during the start and end of the winter season when heavy
cloths like jackets, delicate shawls and woolen cloth: need washing before and after being stored away. Some
of the businesses however also fee that during summers their businesses become more engaged as more
people require frequent washing of their clothing items
the competitors are small in size and the quality of their service is poor to what is planned this project a
market share of 20 to 30 % is estimated as being reasonable in the first year w be assumed in the initial stage
of the service operating at 100% capacity cannot be assume there are bound to be initial operating problems,
raw material shortages, distribute difficulties hence only 80% is projected to be served in the first year
Year Quantity Amount Of Birr/Month
2020 139,776 169,728
2023 199,680 9,225,2 16
2025 11,202,048 13,178,880
6.7 Forecasted Financial Statement

S.N DESCRIPTION Year1 70% Year2 85% Year3- Year4 100% Year5 100%
100%
1. Annual revenue 3,136,00 4,783,640 5,478,050 6,315,972 7,265,552
2. Less variable cost 1,935,000 1,935,000 1,935,000 1,935,000 1,935,000
3. Variable margin 1,572,162.46 2.141,317.22 2,954,396.88 2,954,396.8 2,954,396.88
8
4. Less fixed cost 661,480 661,480 661,480 661,480 661,480
5. Operational margin 910,681.46 1,479,837.22 2,292,916.88 2,292,916.8 2,292,916.88
8
6. Less financial cost 615,000 585,500 552,000 520,500 489,000
7. Gross profit from 2,832,142 4,315,371.85 4,946,705.83 5,705,855.7 6,554,868.22
operation 6
8. Gross profit 2,832,142 4,315,371.85 4,946,705.83 5,705,855.7 6,554,868.22
6
9. Taxable profit 2,832,142 2,407,320.70 2,407,320.70 2,407,320.7 2,407,320.70
0
10. Less income tax 973,250 268,301,16 522,275.06 531,725.06 541,175.06
11. Net profit 1,858,892
2,832,285.43 3,251,347.32 3,740,328.3 4,300,926.73
4
Outlined below are the meticulously prepared anticipated financial statements for the upcoming five years,
encompassing the Projected Cash Flow Statement, Comprehensive Projected Income Statement, and Detailed
Table cash flow
As a conclusion, the positive forecasts based on the calculations indicate several encouraging trends:
Consistent Inflow Growth: The inflow from operations shows a consistent upward trend, growing by 15%
annually over the four-year period. This suggests positive business performance and potential revenue
expansion.
Total Cash Inflow Expansion: The total cash inflow, considering the 15% increase, is projected to reach
approximately 10,926,821.13 ETB for the four consecutive years. This signifies a positive trajectory in overall
financial health.
These positive forecasts collectively suggest a financially stable and growing business environment, fostering
optimism for the future. It's important to note that these projections are based on assumptions and historical
trends, and actual outcomes may vary based on market dynamics and other external factors. Regular
monitoring and adjustments to the financial strategy can enhance the adaptability of the business to changing
conditions.
Forecasted Income Statement

From the above calculations of revenue and profit in the forecasting plan, several conclusions can be drawn:
Revenue Growth:
The annual revenue is projected to increase each year, experiencing a 15% growth rate. This suggests a
positive outlook for the business, indicating potential market demand, successful sales strategies, or expansion
into new markets.
Gross Profit Expansion:
The gross profit, calculated as the difference between revenue and cost of goods sold (or taxable profit in this
context), is also projected to increase annually by 15%. This expansion is indicative of effective cost
management or potentially higher profit margins.
Net Profit Stability:
The net profit, considering a 15% increase each year and factoring in income tax, remains relatively stable
over the forecasted period. This could be due to strategic financial planning and effective tax management.
Financial Sustainability:
The consistent growth in both revenue and profit, along with stable net profit, suggests financial
sustainability. Businesses with a stable financial outlook are better positioned to weather economic
uncertainties and invest in future growth initiatives.
Profitability and Investment Potential:
The positive trends in both revenue and profit may enhance the business's attractiveness to potential investors.
Stable and growing profitability is often a key factor that investors consider when evaluating investment
opportunities.
Strategic Decision-Making:
The detailed forecasting plan provides valuable insights for strategic decision-making. Businesses can use this
information to adjust operational strategies, allocate resources efficiently, and make informed decisions to
optimize financial performance.
Market Adaptability:
The ability to forecast and adapt to changing market conditions is reflected in the consistent growth
projections. This suggests that the business is responsive to market dynamics and can adjust its strategies
accordingly.
6.9. Sheger automatic Laundry Services Balance Sheet

6.10. As of JULY7, 2023 Balanced Sheet
S.N Assets: Amount Liabilities: Amount Equity: Amount
1. Current Assets: 5,970,980 Creditors 17,301 Initial 12,500,000
&Accruals Investment
2. Cash and Cash 5,041,278 Profit tax 522,610 Net Income 1,277,108
Equivalents payable (projected)
3. Accounts Receivable ------- Total 539,911 Total 13,777,108
Liabilities Owner's
Equity
4. Inventory 219,214
NB
5. Prepaid Expenses 2,317,894 Total Liabilities and Equity
6. Other Short-Term ---- +13,777,108
Net income=
Assets 539,911 gross profit minus
7. Non-Current Assets: 1,469,613 =14,317,019 operating expenses
8. Property, Plant, and 3,894.467
Equipment (PP&E)
9. Intangible Assets trademark
10. Investments
11. Total 15,022,873
Notes and Explanations:

Given the information from the above balance sheet table, where the total assets of Sheger Automatic Laundry
Service are 15,022,873 ETB, and the sum of total liabilities and equity is 14,317,019 ETB, the balance sheet
implies a positive net worth or equity. In this case, the company has a surplus of assets over its total liabilities
and equity.
 Here's a breakdown of the interpretation and some possible notes or explanations for specific items on
the balance sheet:
 Positive Equity (Owner's Investment): The positive difference between assets and liabilities and equity
(15,022,873 ETB - 14,317,019 ETB) results in positive equity. This suggests that the company's assets
are financed more by owner's investment and retained earnings than by external liabilities.
Note: This positive equity indicates that the owners of Sheger Automatic Laundry Service have contributed
more to the business than the total amount owed to external parties.
Potential Notes for Further Clarification:
 Asset Composition: Provide a breakdown of the types of assets held by the company. This could
include cash, accounts receivable, property, equipment, etc.
 Liability Details: Specify the types of liabilities on the balance sheet, such as accounts payable, loans,
or other obligations.
 Equity Components: Break down the equity section to detail components like initial owner's
investment, retained earnings, and any additional contributions.
 Explanation of Differences: If there are significant changes from the previous reporting period,
provide explanations for these changes.
 Contingent Liabilities: If applicable, disclose any contingent liabilities or commitments that might
impact the company's financial position.
The meaning of this balance sheet for Sheger Automatic Laundry Service is that the business has a strong
financial position with assets exceeding its liabilities and equity. This positive net worth provides a cushion
against financial risks and indicates the potential for the business to weather economic challenges.
Assumptions and Methodology
Assuming Sheger Automatic Laundry Service's balance sheet reflects accurate and reliable financial
information, the positive net worth of 15,022,873 ETB compared to the total liabilities and equity of
14,317,019 ETB signifies a robust financial standing.
The assumption is that the reported values are based on sound accounting practices and transparent
financial reporting.
The methodology for arriving at this conclusion involves a straightforward analysis of the balance
sheet components, with a focus on the positive equity indicating that the company's assets are
predominantly funded by owner's investment and retained earnings rather than external liabilities.
A comprehensive breakdown of assets, liabilities, and equity, along with any contingent liabilities or
commitments, would be necessary for a more detailed assessment. Additionally, an examination of changes
from prior periods and industry benchmarks could provide further insights into the business's financial health.
It is crucial to note that this interpretation is contingent upon the accuracy and completeness of the financial
data and should be validated through professional financial analysis and consultation.
6.10 Forecasted profit and loss (P&L) statement for a laundry service
The Forecast Period-Years-4 years, rate 15%
S/ Description Year1 2023 Year2 Year3- 2025 Year4 Year5

N 2024 2026 2027
Revenue 15,680,000 18,032,000 20,838,800 24,016,620 27,619,113
Gross Sale 12,544,000 14,426,400 16,640,360 19,136,414 22,005,877
Gross Profit 3,136,000 3,615,400 4,167,260 4,796,425 5,515,889
Cost of Goods 1,786,136 2,055,551 2,363,384 2,717,892 3,129,570
Sold (COGS)
Forecast
Operating 76,810.12 88,342.64 101,589.04 116,826.40 134,350.36
Expenses
Operating 2,942,374 3,384,730.10 3,892,444.62 4,466,311.31 5,112,263.01
Income (or
Loss)
Net Income 1,858,892.31 2,136,827.26 2,455,350.35 2,823,152.91 3,248,620.85
Grand Total profit
10,663,951.37 ETB
Grand Total for The Profit Loss Forecasting of four years

SN Descriptions Grand total Remark
Revenue 90,506,533
Gross Sale 72,209,051
Gross Profit 18,094,974
Cost of Goods
Sold (COGS)
Forecast 10,266,397
Operating
Expenses 441,108
Operating
Income (or Loss) 16,855,749
Net Income 10,663,951.37
Forecast Assumptions
Based on the provided forecasted data for Sherger Automatic Laundry Service, the profitability appears to be
strong. Here are some suggestions and considerations:
Positive Net Income:
The positive net income of 16,855,749 ETB indicates that the business is generating profits after accounting
for all expenses. This is a positive sign for the financial health of the laundry service.
Healthy Gross Profit Margin:
The gross profit of 72,209,051 ETB, in relation to the gross sale of 90,506,533 ETB, suggests a healthy gross
profit margin. This implies that the laundry service is efficiently managing its cost of goods sold (COGS) and
retaining a significant portion of revenue as gross profit.
Operating Income and Expenses:
The operating income of 441,108 ETB indicates that the laundry service is operating with a positive margin
before considering interest and taxes. It's essential to ensure that operating expenses are well-managed to
maintain and improve this margin.
Cost Control and Efficiency:
Consider reviewing operating expenses to identify opportunities for further cost control and efficiency.
Continuous improvement in operational processes and cost management can contribute to increased
profitability.
Remember, forecasting involves some degree of uncertainty, and it's important to be realistic in your
estimates. Regularly monitoring and updating your forecasts will help you make informed decisions and adapt
to changing business conditions.
Forecasted Purchase of Materials for Sheger automatic laundry
SHEGER AUTOMATIC LAUNDRY

CONSUME ABLE STOCK ITEMS OF LOCAL PURCHESED AS 2016 E.C
quantity unit of Total
so items on hand measurement unit of cost cost
perchloroethylene
001 dry cleaning chemical 6 barell 445,000.00 2,670,000.00
002 Plastic Hager 5,000.00 Dozen 104.34 521,700.00

Kg(90*60=300kg
and
003 Plastic Bag 6,000.00 60*30=300kg) 248.00 1,488,000.00
004 Largo 2,000.00 Ltr 39.13 78,260.00
006 altaj low foam powder 1,000.00 kg 192.00 192,000.00
007 silex 210 160.00 kg 572.60 91,616.00
008 silex 800 180.00 ltr 681.31 122,635.80
009 silex 450 180.00 ltr 594.35 106,983.00

eco star soft plus
010 chemical 160.00 ltr 398.70 63,792.00
012 Generetor fuel (nafta 1,000.00 LTR 78.00 78,000.00

chemical of dry laundry
013 inkgo 20.00 ltr 8,500.00 170,000.00
014 laundry pen 6.00 Dozen 180.00 1,080.00

laundry
015 Attachment pad 525.00 pcs 43.48 22,825.95
016 Diva soup 19.00 Dozen 1,544.00 29,336.00
017 leather paint 5.00 Ltr 150.00 750.00
018 COMPUTER 2.00 pcs 12,000.00 24,000.00
019 COPUTER TABLE 2.00 pcs 6,500.00 13,000.00
020 PRINTRE 2.00 pcs 9,000.00 18,000.00
021 FOLDER 15.00 pcs 170.00 2,550.00
022 plastic roll 150.00 Kg 248.00 37,200.00

spoting chemical
023 qwikgo 20.00 ltr 9,350.00 187,000.00
024 spoting chemical bongo 20.00 Ltr 9,500.00 190,000.00

025 spoting chemical rustgo 20.00 ltr
9,700.00 194,000.00
026 spoting chemical targo 20.00 ltr 3,800.00 76,000.00

spoting chemical
027 silex210 1,000.00 kg 572.00 572,000.00
028 Generetor oil filter 6.00 pcs 2,608.70 15,652.20
029 Generator fuel filter 6.00 pcs 3,913.04 23,478.24
030 Generator air cleaner 6.00 pcs 6,521.74 39,130.44
031 Dimension fastner 200.00 carton 3,000.00 600,000.00
032 stepler 3.00 pcs 700.00 2,100.00
033 steples 20.00 packet 50.00 1,000.00
034 spill 50.00 packet 100.00 5,000.00
TOTAL COST 8,400,133.63
Forecasted sales of Sheger automatic laundry

A tiled survey was conducted to learn as to how much others competitor, who give the service, charge their
customers. The charge varies depending on the number of Customers, the type of clothes and delivering time,
the type of cloth and the like. The total expected sales of the project is determined by considering the current
expected demand, a reasonable growth of demand every year and the capacity of the machines to be installed
and the price per kilogram for the service .If the total demand is 15,000 kg per month and the projected
market share is 25% the projects potential market size is 15000*20/100 per or 3000 kg per month. However,
for practical purpose only 80% of the projected market size will be considered for sales forecasts, that is 3000
kg*80/100 of 24000 kg per month of 28,800 kg in a year will develop his target market and will forecast the
short-run (one year) and long run (five years) revenue from the service of laundry and dry cleaning laundry.
The business man believes that the market is expanding quite rapidly, as the weather condition changes which
forces customer to change their closes so often and the rate of their customer growth will be very high. The
service volume will increase by 10 % of the projected market share by third Year it estimated that 70% of
service sill come from Customers based on the weights of the clothes to be washed and dried. The selling
price is based on cost-plus expected to pay for the service method a profit mark up of 10% over the total
service cost is very reasonable and competitive especially at the initial stage Considering the increase in
customer every year, which is about 15%, and the additional customers that will be attracted to the service
form existing non-users, a reasonable sales growth of 1 0% is assumed.
While the laundry service industry is dynamic and subject to fluctuations, our competent team is well-
equipped to navigate the challenges and capitalize on opportunities, ensuring the success of our venture.
Our thorough market analysis indicates a strong demand for laundry services, and our strategic positioning
aligns with the evolving needs of our target market. We have carefully crafted a business model that not only
addresses the dynamics of the industry but also positions Sheger Automatic Laundry as a reliable and
customer-focused service provider.
With a proven operational plan, a dedicated team of professionals, and a commitment to quality service, we
are confident in our ability to achieve and even exceed our forecasted sales projections. We have identified
key growth drivers and implemented strategies to capture market share, ensuring sustainable success in the
competitive landscape.
The requested loan will be instrumental in fortifying our operational capabilities, supporting marketing
initiatives, and optimizing our technology infrastructure. By partnering with Sheger Automatic Laundry, you
are investing in a business that is poised for dynamic sales growth and well-prepared to become a leader in the
laundry service sector. Your support will not only contribute to the success of Sheger Automatic Laundry but
will also foster economic growth within our community. We are confident that our dedication, expertise, and
strategic approach will make us a valuable partner, and we appreciate your consideration of our loan request.
Loan Amortization Schedule

A loan amortization schedule outlines the periodic payments and allocation of each payment between
principal and interest over the life of a loan. Here's a sample loan amortization schedule for a hypothetical
loan.
NB. Any modification from CBE loan policy is accepted
amount borrowed 10,000,000.00 Payment Three month
frequency
period 48
rate 0.0125
payment $278,307.48
month beginning pmt interst prencipal end balance
1 10,000,000.00 $278,307.48 100000 $178,307.48 $9,821,692.52
2 $9,821,692.52 $278,307.48 $122,771.16 $155,536.33 $9,666,156.19
3 $9,666,156.19 $278,307.48 $120,826.95 $157,480.53 $9,508,675.66
4 $9,508,675.66 $278,307.48 $118,858.45 $159,449.04 $9,349,226.62
5 $9,349,226.62 $278,307.48 $116,865.33 $161,442.15 $9,187,784.47
6 $9,187,784.47 $278,307.48 $114,847.31 $163,460.18 $9,024,324.30
7 $9,024,324.30 $278,307.48 $112,804.05 $165,503.43 $8,858,820.87
8 $8,858,820.87 $278,307.48 $110,735.26 $167,572.22 $8,691,248.65
9 $8,691,248.65 $278,307.48 $108,640.61 $169,666.87 $8,521,581.77
10 $8,521,581.77 $278,307.48 $106,519.77 $171,787.71 $8,349,794.06
11 $8,349,794.06 $278,307.48 $104,372.43 $173,935.06 $8,175,859.00
12 $8,175,859.00 $278,307.48 $102,198.24 $176,109.25 $7,999,749.76
13 $7,999,749.76 $278,307.48 $99,996.87 $178,310.61 $7,821,439.15
14 $7,821,439.15 $278,307.48 $97,767.99 $180,539.49 $7,640,899.66
15 $7,640,899.66 $278,307.48 $95,511.25 $182,796.24 $7,458,103.42
16 $7,458,103.42 $278,307.48 $93,226.29 $185,081.19 $7,273,022.23
17 $7,273,022.23 $278,307.48 $90,912.78 $187,394.70 $7,085,627.52
18 $7,085,627.52 $278,307.48 $88,570.34 $189,737.14 $6,895,890.39
19 $6,895,890.39 $278,307.48 $86,198.63 $192,108.85 $6,703,781.53
20 $6,703,781.53 $278,307.48 $83,797.27 $194,510.21 $6,509,271.32
21 $6,509,271.32 $278,307.48 $81,365.89 $196,941.59 $6,312,329.73
22 $6,312,329.73 $278,307.48 $78,904.12 $199,403.36 $6,112,926.37
23 $6,112,926.37 $278,307.48 $76,411.58 $201,895.90 $5,911,030.46
24 $5,911,030.46 $278,307.48 $73,887.88 $204,419.60 $5,706,610.86
25 $5,706,610.86 $278,307.48 $71,332.64 $206,974.85 $5,499,636.01
26 $5,499,636.01 $278,307.48 $68,745.45 $209,562.03 $5,290,073.98
27 $5,290,073.98 $278,307.48 $66,125.92 $212,181.56 $5,077,892.42
28 $5,077,892.42 $278,307.48 $63,473.66 $214,833.83 $4,863,058.60
29 $4,863,058.60 $278,307.48 $60,788.23 $217,519.25 $4,645,539.35
30 $4,645,539.35 $278,307.48 $58,069.24 $220,238.24 $4,425,301.11
31 $4,425,301.11 $278,307.48 $55,316.26 $222,991.22 $4,202,309.89
32 $4,202,309.89 $278,307.48 $52,528.87 $225,778.61 $3,976,531.28
33 $3,976,531.28 $278,307.48 $49,706.64 $228,600.84 $3,747,930.44
34 $3,747,930.44 $278,307.48 $46,849.13 $231,458.35 $3,516,472.08
35 $3,516,472.08 $278,307.48 $43,955.90 $234,351.58 $3,282,120.50
36 $3,282,120.50 $278,307.48 $41,026.51 $237,280.98 $3,044,839.53
37 $3,044,839.53 $278,307.48 $38,060.49 $240,246.99 $2,804,592.54
38 $2,804,592.54 $278,307.48 $35,057.41 $243,250.08 $2,561,342.46
39 $2,561,342.46 $278,307.48 $32,016.78 $246,290.70 $2,315,051.76
40 $2,315,051.76 $278,307.48 $28,938.15 $249,369.34 $2,065,682.42
41 $2,065,682.42 $278,307.48 $25,821.03 $252,486.45 $1,813,195.97
42 $1,813,195.97 $278,307.48 $22,664.95 $255,642.53 $1,557,553.44
43 $1,557,553.44 $278,307.48 $19,469.42 $258,838.06 $1,298,715.37
44 $1,298,715.37 $278,307.48 $16,233.94 $262,073.54 $1,036,641.83
45 $1,036,641.83 $278,307.48 $12,958.02 $265,349.46 $771,292.37
46 $771,292.37 $278,307.48 $9,641.15 $268,666.33 $502,626.05
47 $502,626.05 $278,307.48 $6,282.83 $272,024.66 $230,601.39
48 $230,601.39 $278,307.48 $2,882.52 $275,424.97 $0.00
6.11 Detail laundry services

Sheger Automatic Laundry Service encompass a range of activities related to cleaning and maintaining
clothing and textiles. These services can be provided by commercial laundries, dry cleaners, or self-service
Laundromats. Here are some key aspects of laundry services: When choosing a laundry service, customers
should consider factors such as the type of services offered, pricing, turnaround time, convenience, and the
reputation of the service provider
ሸገር አዉቶማቲክ የልብስ ንፅህና መስጫ
Sheger Automatic Laundry
TOTAL
ተ. Price+VA
ቁ የልብስአይነቶች Laundry Type T
1 ሙሉ ሱፍ Full suit 120.00
2 ሙሉ ሱፍ 50 % አስቸኳይ Full suit 50 % express 180.00
3 ሙሉ ሱፍ አስቸኳይ Full suit express 240.00
4 ሙሉ ሱፍ ነጭ White suit 150.00
5 ሙሉ ሱፍ 50 % አስቸኳይ White suit 50 % express 225.00
6 ሙሉ ሱፍ ነጭ አስቸኳይ White suit express 300.00
7 ኮት coat 70.00
8 ኮት 50 % አስቸኳይ coat 50 % express 105.00
9 ኮት አስቸኳይ coat express 140.00
10 ነጭ ኮት white coat 80.00
11 ነጭ 50 % አስቸኳይ white coat 50 % express 120.00
12 ነጭ አስቸኳይ white coat express 160.00
13 ሎጦ ኮት leto coat 100.00
14 ሎጦ 50 % አስቸኳይ leto coat 50 % express 150.00
15 ሎጦ ኮት አስቸኳይ leto coat express 200.00
16 ሱሪ trouser 60.00
17 ሱሪ 50 % አስቸኳይ trouser 50 % express 90.00
18 ሱሪ አስቸኳይ trouser express 120.00
19 ነጭ ሱሪ white trouser 70.00

20 ነጭ ሱሪ 50 % አስቸኳይ white trouser 50 % express 105.00
21 ነጭ ሱሪ አስቸኳይ white trouser express 140.00
22 ሰደርያ vest 30.00
23 ሰደርያ 50 % አስቸኳይ vest 50 % express 45.00
24 ሰደርያ አስቸኳይን vest express 60.00
25 ጃኬት jacket 70.00
26 ጃኬት 50 % አስቸኳይ jacket 50 % express 105.00
27 ጃኬት አስቸኳይ jacket express 140.00
28 ቆዳ ጃኬት leather jacket 150.00
29 ቆዳ ጃኬት 50 % አስቸኳይ leather jacket 50 % express 225.00
30 ቆዳ ጃኬት አስቸኳይ leather jacket express 300.00
31 ቆዳ ጃኬት ቀለም leather jacket dye 170.00

leather jacket dye 50 %
32 ቆዳ ጃኬት ቀለም 50 % አስቸኳይ expr 255.00
33 ቆዳ ጃኬት ቀለም አስቸኳይ leather jacket dye express 340.00
34 ትንሹካፖርት over coat small 90.00

over coat small 50 %
35 ትንሹ ካፖርት 50 % አስቸኳይ express 135.00
36 ትንሹ ካፖርት አስቸኳይ over coat small express 180.00
37 ካፖርት መካከለኛ over coat medium 110.00

over coat medium 50
38 ካፖርት መካከለኛ 50 % አስቸኳይ %expre 165.00
39 ካፖርት መካከለኛ አስቸኳይ over coat medium expre 220.00
40 ካፖርት ትልቁ over coat large 130.00

over coat large 50 %
41 ካፖርት ትልቁ 50 % አስቸኳይ express 195.00
42 ካፖርት ትልቁ አስቸኳይ over coat large express 260.00
43 ሸሚዝ shirt 45.00
44 ሸሚዝ 50 % አስቸኳይ shirt 50 % express 60.00

45 ሸሚዝ አስቸኳይ shirt express 90.00
46 ቲሸርት T- shirt 30.00
47 ቲሸርት 50 % አስቸኳይ T- shirt 50 % express 45.00
48 ቲሸርት አስቸኳይ T- shirt express 60.00
49 ጉርድ ቦዲ short body 30.00
50 ጉርድ ቦዲ 50 % አስቸኳይ short body 50 % express 37.50
51 ጉርድ ቦዲ አስቸኳይ short body express 50.00
52 ከረቫት tie 10.00
53 ከረቫት 50 % አስቸኳይ tie 50 % express 15.00
54 ከረቫት አስቸኳይ Tie Expres 20.00
55 ቀሚስ Lady Dress 80.00
56 ቀሚስ 50 % አስቸኳይ Lady Dress 50 % Express 120.00
57 ቀሚስ አስቸኳይ Lady Dress Express 160.00
58 ሀበሻ ቀሚስ ሙሉ Habesh National Dress 150.00

Habesh N. Dress 50 %
59 ሀበሻ ቀሚስ 50 % አስቸኳይ Express 225.00
60 ሀበሻ ቀሚስ አስቸኳይ Habesh N. Dress Express 300.00
61 ሀበሻ ቀሚስ ብቻውን Habesh N. Dress Single 120.00

Habesh N.Dress Single 50%
62 ሀበሻ ቀሚስ ብቻውን 50 % አስቸኳይ Ex 180.00
Habesh N.Dress Single
63 ሀበሻ ቀሚስ አስቸኳይ Expres 240.00
64 ነጠላ Netela 60.00
65 ነጠላ 50 % አስቸኳይ Netela 50 % Express 90.00
66 ነጠላ አስቸኳይ Netela Express 120.00
67 ነጠላ ትልቁ Netela Larege 80.00
68 ነጠላ ትልቁ 50 % አስቸኳይ Netela Larege 50 % Express 120.00
69 ነጠላ ትልቁ አስቸኳይ Netela Larege Express 160.00

70 ነጠላ ጋቢ Netela Gabi 130.00
71 ነጠላ ጋቢ 50 % አስቸኳይ Netela Gabi 50 % Express 195.00
72 ነጠላ ጋቢ አስቸኳይ Netela Gabi Express 260.00
73 ጋቢ Gabi 130.00
74 ጋቢ 50 % አስቸኳይ Gabi 50 % Express 195.00
75 ጋቢ አስቸኳይ Gabi Express 260.00
76 ቡልኮ Buluko 250.00
77 ቡልኮ 50 % አስቸኳይ Buluko 50 % Express 375.00
78 ቡልኮ አስቸኳይ Buluko Express 500.00
79 ሹራብ sweater 80.00
80 ሹራብ 50 % አስቸኳይ sweater 50 % express 120.00
81 ሹራብ አስቸኳይ sweater express 160.00
82 ሹራብ ነጭ white sweater 70.00
83 ሹራብ ነጭ 50 አስቸኳይ white sweater 50 % express 90.00
84 ሹራብ ነጭ አስቸኳይ White Sweater Express 120.00
85 ጀለቢያ Jelebeya 100.00
86 ጀለቢያ 50 % አስቸኳይ Jelebeya 50 % Express 105.00
87 ጀለቢያ አስቸኳይ Jelebeya Express 140.00
88 ጀለቢያ ትልቁ Large Jelebeya 120.00
89 ጀለቢያ ትልቁ 50 % አስቸኳይ Large Jelebeya 50 % Express 180.00
90 ጀለቢያ ትልቁ አስቸኳይ Large Jelebeya Express 240.00
91 ቢጃማ Night Pajama 100.00
92 ቢጃማ 50 % አስቸኳይ Night Pajama 50 % Express 150.00
93 ቢጃማ አስቸኳይ Night Pajama Express 200.00
94 ቢጃማ ትንሹ Small Night Pajama 80.00

Small Night Pajama 50 %
95 ቢጃማ ትንሹ 50 % አስቸኳይ Expre 120.00
96 ቢጃማ ትንሹ አስቸኳይ Small Night Pajama Express 160.00
97 ጋወን Gawon 100.00
98 ጋወን 50 % አስቸኳይ Gawon 50 % Express 150.00
99 ጋወን አስቸኳይ Gawon Express 200.00
100 ጋወን ትንሹ Small Gawon 80.00
101 ጋወን ትንሹ 50 % አስቸኳይ Small Gawon 50 % Express 120.00
102 ጋወን ትንሹ አስቸኳይ Small Gawon Express 160.00
103 ካባ Cloak 100.00
104 ካባ 50 % አስቸኳይ Cloak 50 % Express 150.00
105 ካባ አስቸኳይ Cloak Express 200.00
106 ነጭ ካባ White Cloak 150.00
107 ነጭ ካባ 50 % አስቸኳይ White Cloak 50 % Express 225.00
108 ነጭ ካባ አስቸኳይ White Cloak Express 300.00
109 ቱታ Over All 120.00
110 ቱታ 50 % አስቸኳይ Over All 50 % Express 180.00
111 ቱታ አስቸኳይ Over All Express 240.00
112 የእጅ ፎጣ Hand/Face Towel 30.00

Hand/Face Towel 50 %
113 የእጅ ፎጣ 50 % አስቸኳይ Express 45.00
114 የእጅ ፎጣ አስቸኳይ Hand/Face Towel Express 60.00
115 ፎጣ Towel 60.00
116 ፎጣ 50 % አስቸኳይ Towel 50 % Express 90.00
117 ፎጣ አስቸኳይ Towel Express 120.00
118 መካከለኛ ፎጣ Medium Towel 90.00

Medium Towel 50 %
119 መካከለኛ ፎጣ 50 % አስቸኳይ Express 180.00
120 መካከለኛ ፎጣ አስቸኳይ Medium Towel Express 140.00
121 ትልቁ ፎጣ Large Towel 150.00
122 ትልቁ ፎጣ 50 % አስቸኳይ Large Towel 50 % Express 225.00
123 ትልቁ ፎጣ አስቸኳይ Large Towel Express 300.00
124 የእራት ልብስ Night Dress 150.00
125 የእራት ልብስ 50 % አስቸኳይ Night Dress 50 % Express 225.00
126 የእራት ልብስ አስቸኳይ Night Dress Express 300.00
127 የእራት ልብስ ትልቁ Large Night Dress 200.00
128 የእራት ልብስ ትልቁ 50 % አስቸኳይ Night Dress 50 % Express 300.00
129 የእራት ልብስ ትልቁ አስቸኳይ Night Dress Express 400.00
130 አንሶላ Bed Sheet 70.00
131 አንሶላ 50 % አስቸኳይ Bed Sheet 50 % Express 75.00
132 አንሶላ አስቸኳይ Bed Sheet Express 100.00
133 አንሶላ ትልቁ Large Bed Sheet 90.00

Large Bed Sheet 50 %
134 አንሶላ ትልቁ 50 % አስቸኳይ Express 105.00
135 አንሶላ ትልቁ አስቸኳይ Large Bed Sheet Express 140.00
136 አንሶላ ደብል Double Bed Sheet 120.00

Double Bed Sheet 50 %
137 አንሶላ ደብል 50 % አስቸኳይ Expres 150.00
138 አንሶላ ደብል አስቸኳይ Double Bed Sheet Express 200.00
139 አልጋ ልብስ Bed Cover 150.00
140 አልጋ ልብስ 50 % አስቸኳይ Bed Cover 50 % Express 225.00
141 አልጋ ልብስ አስቸኳይ Bed Cover Express 300.00
142 አልጋ ልብስ ትልቁ Large Bed Cover 200.00

Large Bed Cover 50 %
143 አልጋ ልብስ ትልቁ 50 % አስቸኳይ Express 270.00
144 አልጋ ልብስ ትልቁ አስቸኳይ Large Bed Cover Express 360.00
145 ትራስ ጨርቅ Pillow Cover 30.00
146 ትራስ ጨርቅ 50 % አስቸኳይ Pillow Cover 50 % Express 30.00
147 ትራስ ጨርቅ አስቸኳይ Pillow Cover Express 40.00
148 ትራስ ትንሹ Pillow 30.00
149 ትራስ 50 % አስቸኳይ Pillow 50 % Express 45.00
150 ትራስ አስቸኳይ Pillow Express 60.00
151 ትራስ መካከለኛ Medium Pillow 100.00

Medium Pillow 50 %
152 ትራስ መካከለኛ 50 %አስቸኳይ Express 75.00
153 ትራስ መካከለኛ አስቸኳይ Medium Pillow Express 100.00
154 አሻንጉሊት ትንሹ Small Toys 75.00
155 አሻንጉሊት ትንሹ 50 % አስቸኳይ Small Toys 50 % Express 112.50
156 አሻንጉሊት ትንሹ አስቸኳይ Small Toys Express 150.00
157 አሻንጉሊት መካከለኛ Medium Toys 150.00
158 አሻንጉሊት መካከለኛ 50 % አስቸኳይ Medium Toys 50 % Express 225.00
159 አሻንጉሊት መካከለኛ አስቸኳይ Medium Toys Expres 300.00
160 አሻንጉሊት ትልቁ Large Toys 350.00
161 አሻንጉሊት ትልቁ 50 % አስቸኳይ Large Toys 50 % Express 525.00
162 አሻንጉሊት ትልቁ አስቸኳይ Large Toys Express 700.00
163 ብርድ ልብስ ትንሹ Blanket Small 250.00
164 ብርድ ልብስ ትንሹ 50 % አስቸኳይ Blanket Small 50 % Express 375.00
165 ብርድ ልብስ ትንሹ አስቸኳይ Blanket Small Express 500.00
166 ብርድ ልብስ መካከለኛ Blanket Medium 300.00

Blanket Medium 50 %
167 ብርድ ልብስ መካከለኛ 50 % አስቸኳይ Express 450.00
168 ብርድ ልብስ መካከለኛ አስቸኳይ Blanket Medium Express 600.00
169 ብርድ ልብስ ትልቁ Blanket Large 350.00

170 ብርድ ልብስ ትልቁ 50 % አስቸኳይ Blanket Large 50 % Express 525.00
171 ብርድ ልብስ ትልቁ አስቸኳይ Blanket Large Express 700.00
172 ኮንፎርት ትንሹ Duvet Cover Small 250.00

Duvet Cover Small 50 %
173 ኮንፎርት ትንሹ 50 % አስቸኳይ Expre 375.00
174 ኮንፎርት ትንሹ አስቸኳይ Duvet Cover Small Expres 500.00
175 ኮንፎርት መካከለኛ Duvet Cover Medium 300.00

Duvet Cover Medium 50 %
176 ኮንፎርት መካከለኛ 50 % አስቸኳይ Exp 450.00
Duvet Cover Medium
177 ኮንፎርት መካከለኛ አስቸኳይ Express 600.00
178 ኮንፎርት ትልቁ Duvet Cover Large 350.00

Duvet Cover Large 50 %
179 ኮንፎርት ትልቁ 50 % አስቸኳይ Expres 425.00
180 ኮንፎርት ትልቁ አስቸኳይ Duvet Cover Large Express 700.00
181 ኮንፎርት ከነመጫወቻው Duvet Cover Set 350.00

Duvet Cover Set 50 %
182 ኮንፎርት ከነመጫወቻው 50 % አስቸኳይ Express 525.00
183 ኮንፎርት ከነመጫወቻው አስቸኳይ Duvet Cover Set Express 700.00
184 ኮንፎርት ነጭ በጣም ትልቁ White Duvet Cover 400.00

White Duvet Cover 50 %
185 ኮንፎርት ነጭ በጣም ትልቁ 50 % አስቸኳይ Expre 600.00
186 ኮንፎርት ነጭ በጣም ትልቁ አስቸኳይ White Duvet Cover Express 800.00
187 ቬሎ በጣም ትልቁ Weeding Dress V.Large 1,000.00

Weeding Dress V.Large 50
188 ቬሎ በጣም ትልቁ 50 % አስቸኳይ %Ex 1,500.00
Weeding Dress V.Large
189 ቬሎ በጣም ትልቁ አስቸኳይ Expres 2,000.00
190 ቬሎ ትልቁ Weeding W/Dress 800.00

Weeding W/Dress 50 %
191 ቬሎ ትልቁ 50 % አስቸኳይ Expre 1,200.00
192 ቬሎ ትልቁ አስቸኳይ Weeding W/Dress Express 1,600.00
193 ቬሎ መካከለኛ Weeding Dress M 600.00

Weeding Dress M 50 %
194 ቬሎ መካከለኛ 50 % አስቸኳይ Expres 900.00
195 ቬሎ መካከለኛ አስቸኳይ Weeding Dress M Expres 1,200.00
196 ቬሎ ትንሹ Small W/Dress 400.00
197 ቬሎ ትንሹ 50 % አስቸኳይ Small W/Dress 50 % Express 600.00
198 ቬሎ ትንሹ አስቸኳይ Small W/Dress Express 800.00
199 የመኪና ወንበር ልብስ ትልቁ Car Seat Cover L 350.00

Car Seat Cover L 50 %
200 የመኪና ወንበር ልብስ ትልቁ 50 % አስቸኳይ Express 525.00
201 የመኪና ወንበር ልብስ ትልቁ አስቸኳይ Car Seat Cover L Express 700.00
202 የመኪና ወንበር ልብስ ትንሹ S Car Seat Cover 300.00

S Car Seat Cover 50 %
203 የመኪና ወንበር ልብስ ትንሹ 50 % አስቸኳይ Express 450.00
204 የመኪና ወንበር ልብስ ትንሹ አስቸኳይ S Car Seat Cover Express 600.00
205 የሶፋ ጨርቅ ትንሹ S Sofa Seat Cover 250.00

S Sofa Seat Cover 50 %
206 የሶፋ ጨርቅ ትንሹ 50 % አስቸኳይ Express 375.00
207 የሶፋ ጨርቅ ትንሹ አስቸኳይ S Sofa Seat Cover Express 500.00
208 የሶፋ ጨርቅ ትልቁ L Sofa Seat Cover 350.00

L Sofa Seat Cover 50 %
209 የሶፋ ጨርቅ ትልቁ 50 % አስቸኳይ Express 450.00
210 የሶፋ ጨርቅ ትልቁ አስቸኳይ L Sofa Seat Cover Express 600.00
211 የፍራሽ ኮንፎርት Comfort Cover 200.00

Comfort Cover 50 %
212 የፍራሽ ኮንፎርት 50 % አስቸኳይ Express 300.00
213 የፍራሽ ኮንፎርት አስቸኳይ Comfort Cover Express 400.00
214 መጋረዣ ነጠላ Curtin Single 120.00
215 መጋረዣ ነጠላ 50 % አስቸኳይ Curtin Single 50 % Express 180.00
216 መጋረዣ ነጠላ አስቸኳይ Curtin Single Express 240.00
217 ስስ መጋረዣ Thin Curtin 90.00
218 ስስ መጋረዣ 50 % አስቸኳይ Thin Curtin 50 % Express 112.50
219 ስስ መጋረዣ አስቸኳይ Thin Curtin Express 150.00

220 ጠረጴዛ ጨርቅ Table Cloth 100.00
221 ጠረጴዛ ጨርቅ 50 % አስቸኳይ Table Cloth 50 % Express 150.00
222 ጠረጴዛ ጨርቅ አስቸኳይ Table Cloth Express 200.00
223 ናብኪን Napkin 25.00
224 ናብኪን 50 % አስቸኳይ Napkin 50 % Express 37.50
225 ናብኪን አስቸኳይ Napkin Express 50.00
226 የአንሶላ መወጠሪያ Bed Sheet Spring 75.00

Bed Sheet Spring 50 %
227 የአንሶላ መወጠሪያ 50 % አስቸኳይ Expres 12.50
228 የአንሶላ መወጠሪያ አስቸኳይ Bed Sheet Spring Express 150.00
229 ቆዳ ጃኬት ቀለም ትልቁ Leather Jacket Dye 200.00

Leather Jacket Dye 50 %
230 ቆዳ ጃኬት ቀለም ትልቁ 50 %አስቸኳይ Expr 300.00
231 ቆዳ ጃኬት ቀለም ትልቁ አስቸኳይ Leather Jacket Dye Express 400.00
232 የመኪና ወንበር ልብስ የሌዘር ትንሹ S Car Seat Cover 450.00
S Car Seat Cover 50 %
233 የመኪና ወንበር ልብስ የሌዘር 50 % አስቸኳይ ትንሹ Express 675.00
234 የመኪና ወንበር ልብስ የሌዘር አስቸኳይ ትንሹ S Car Seat Cover Express 900.00
ስቲም (Steam Service)
236 ሙሉ ልብስ Suit 70.00
237 ሱሪ Trouser 35.00
238 ኮት Coat 40.00
239 ሸሚዝ Shirt 30.00
240 ቬሎ በጣም ትልቁ Weeding Dress Vl 500.00
241 ቬሎ ትልቁ Weeding Dress L 400.00
242 ቬሎ መካከለኛ Weeding Dress M 300.00

243 ቬሎ ትንሹ Weeding Dress S 200.00
PROJECTED INCOME STATEMENT
S.N Year 1st 2st 3st 4st 5st
Revenue 70% 85% 100% 100% 100%
1. Gross revenue 15,680,000 20,755,200 23,854,080 23,854,080 23,854,080
2. Less VAT (15%) 52,552 69,558.26 .79,951.40 79,951.40. 79,951.40.
3. Less production cost 8,750,000 10,062,500 11,571,875 11,571,875 11,571,875
4. Less repair and 29,461 33,930.15 38,958.14 38,958.14 38,958.14
maintenance cost.
5. Less depreciation 13,059 13,059 13,059 13,059 13,059
6. Less insurance 8,000 9,200 10,580 10,580 10,580
7. Income before tax 2,832,142 3,256,963.30 3,748,871.08 3,748,871.08 3,748,871.08
8. Income tax (30%) 522,610 600,992.50 691,739.17 691,739.17 691,739.17
9. Net profit 1,858,892 2,137,826.80 2,459,249.79 2,459,249.79 2,459,249.79
Assumption
The projected income statement illustrates a promising financial outlook for the business over the next five
years. The anticipated growth in revenue, reaching 100% by the third year and maintaining this level
thereafter, signals a robust market presence and potential for increased market share. The gross revenue aligns
proportionally with this growth, reflecting the business's ability to capture a larger portion of the market.
However, it's essential to note that the production cost is a significant factor impacting the profit margin, and
managing this expense will be crucial for sustaining profitability. Operating costs, including repair and
maintenance, depreciation, and insurance, appears well-controlled as a percentage of revenue, contributing to
a positive trend in income before tax.
Despite the increasing revenue, the business maintains a positive trajectory in income before tax, indicating
either efficient cost management or improved operational efficiency. The consistent application of a 30%
income tax rate demonstrates stability in the tax structure, allowing for better financial planning. The net
profit shows a positive and ascending trend, showcasing the business's overall health and ability to generate
sustainable profits. In conclusion, while the projected income statement paints a promising picture of growth
and profitability, a comprehensive analysis of specific cost components and market conditions is necessary to
ensure the business's long-term financial sustainability. Strategic measures to control production costs and
adapt to market dynamics will be vital for realizing the full potential of this optimistic projection.
General conclusions
Based on the forecast assumptions for Sheger Automatic Laundry Service, the financial outlook appears
positive, with strong indicators of profitability. The positive net income and healthy gross profit margin are
encouraging signs for the business's financial stability. However, before proceeding with a loan application
from the Commercial Bank of Ethiopia (CBE), it is crucial to thoroughly assess the financial position and
consider key factors.
1. Financial Health:
 The positive net income of 16,855,749 ETB reflects a profitable operation, but a deeper
analysis of the financial statements is necessary. Evaluate the cash flow position, liquidity
ratios, and overall financial health to ensure the business can meet its obligations.
2. Risk Management:
 Assess the potential risks that could impact the laundry service's financial performance.
Consider factors such as market competition, economic conditions, and any external threats
that may affect the business's ability to repay the loan.
3. Loan Purpose:
 Clearly define the purpose for which the operational loan is sought. Whether it is for expanding
capacity, upgrading equipment, or improving services, a well-defined purpose will strengthen
the loan application.
4. Loan Terms and Conditions:
 Thoroughly review the terms and conditions offered by CBE for operational loans. Evaluate
interest rates, repayment periods, and any associated fees. Negotiate terms that align with the
cash flow and financial objectives of Sheger Automatic Laundry Service.
5. Collateral and Guarantees:
 Understand the collateral requirements and guarantees that may be necessary for securing the
loan. Identify and prepare the assets or assurances that can be provided to mitigate the bank's
risk.
6. Financial Projections:
 Present detailed financial projections that demonstrate how the loan will contribute to the
growth and sustainability of the laundry service. Provide realistic estimates for future revenue,
expenses, and profitability.
In summary, while the forecasted financials for Sheger Automatic Laundry Service show promise, a thorough
and strategic approach to the loan application process is crucial. By addressing potential risks, presenting a
compelling business case, and engaging in transparent communication with the bank, the laundry service can
enhance its chances of securing a beneficial operational loan from the Commercial Bank of Ethiopia.

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SHEGER AUTOMATIC

Operational Business Plan

B. Promoters and Shareholders:

C. Business Expectations and Rationale:

2.3. Type of Business:

2.7. Purpose of Business Establishment:

3. Organization and Management Plan: Afework Laundry

3.2 Advisers and Assistance:

Machine operators Store keeper

3.7 Office Equipment:

S.N Items Unit Qty Unit price Total cost

3.8 Administrative Expenses:

quantity unit of Total

002 Plastic Hager 5,000.00 Dozen 104.34 521,700.00

004 Largo 2,000.00 Ltr 39.13 78,260.00

005 DeterjentPowder 300.00 bag(1bag=10kg) 1,304.35 391,305.00

006 altaj low foam powder 1,000.00 kg 192.00 192,000.00

007 silex 210 160.00 kg 572.60 91,616.00

008 silex 800 180.00 ltr 681.31 122,635.80

009 silex 450 180.00 ltr 594.35 106,983.00

011 DeterjentPowder 150.00 bag(1bag=20kg) 2,478.26 371,739.00

012 Generetor fuel (nafta 1,000.00 LTR 78.00 78,000.00

014 laundry pen 6.00 Dozen 180.00 1,080.00

016 Diva soup 19.00 Dozen 1,544.00 29,336.00

017 leather paint 5.00 Ltr 150.00 750.00

019 COPUTER TABLE 2.00 pcs 6,500.00 13,000.00

020 PRINTRE 2.00 pcs 9,000.00 18,000.00

021 FOLDER 15.00 pcs 170.00 2,550.00

022 plastic roll 150.00 Kg 248.00 37,200.00

024 spoting chemical bongo 20.00 Ltr 9,500.00 190,000.00

025 spoting chemical rustgo 20.00 ltr 9,700.00 194,000.00

026 spoting chemical targo 20.00 ltr 3,800.00 76,000.00

028 Generetor oil filter 6.00 pcs 2,608.70 15,652.20

029 Generator fuel filter 6.00 pcs 3,913.04 23,478.24

030 Generator air cleaner 6.00 pcs 6,521.74 39,130.44

031 Dimension fastner 200.00 carton 3,000.00 600,000.00

032 stepler 3.00 pcs 700.00 2,100.00

033 steples 20.00 packet 50.00 1,000.00

034 spill 50.00 packet 100.00 5,000.00

TOTAL COST 8,400,133.63

4.2. Potential customer and purchase commitments of customers

4.6 Business-marketing plan, promotional activities, advertising, marketing budget.

S.N Items Total ETB Equity Loan Remark

2 BonGo bongo removes virtually all beverage stains. 355mL 1

5.10 Delivery methods of finished goods to the customers

5.11 Stock management system and expected stockholding costs,

Loan Requirement for Laundry Business - CBE Commercial Bank of Ethiopia:

III. Break-even Level of Sales:

Revenue 15,680,000 Grand Total profit

Table 6.4 competitors selling prices.

Project services Prices of competitors

6.5 Table projection for the first year.

S/N Description Unit Per month Annual

Table 6.6 Sales projection for five years.

S/N Year Total weight in KG Price/KG Total Sale

Forecasted cash flow

Year Quantity Amount Of Birr/Month

2020 139,776 169,728

2023 199,680 9,225,2 16