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 1. Executive summary

This is business plan proposal for the establishment of new shop having the name
“Genet Shop” in Asella town Haro Bilbila kebele. The name derived from the first
name of the owner. This profile envisages the establishment of Shop for providing
different kinds of goods such as, packed foods, Cosmetics, Organic Food,
Jewelries, Drinks, Diary and Poultry Products, Household Products, Seasonal
Products. The present demand for the proposed service delivery is estimated from
different perspectives. The intention is to handle existing customers along with
attracting new customers. The Shop will expect to create employment
opportunities for 2 persons. The total investment requirement is estimated at about
Birr 1,500,000. From the total cost investment covered by (100%) will be borrow
money from Sinqe Bank.

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 2. Background of the business and justification for the business
“Genet Shop” is new Shop. It will be opened as reformed Shop at Asella town
Haro Bilalo kebele, and expected to give standardize Marketing service in Asella
town. Genet will providing different kinds of goods such as, packed foods,
Cosmetics, Organic Food, Jewelries, Drinks, Diary and Poultry Products,
Household Products, Seasonal Products. In Asella town there are only many Shops
that give services to their customers but they cannot still satisfy the need and want
of the customer in terms of both quality and quantity. In order to maximize
customer satisfaction so that the company decide to establish the Shop in Asella
town.

3. Mission, Vision and objectives

3.1. Vision statement
To be the first choice quality Shop in Asella town, with much emphasis on
customers’ focus, and continuous process improvement endeavors.

3.2. Mission statement

The main aim of our business is to become Asella’s best Shop in efficiency,
profitability and customer satisfaction. We will strive to be the leader in
responding to the changing needs and priorities of our stakeholders. We will strive
to lead in providing a variety of items and increasing outreach to our customers.
We will further strive to extend services to a wider community so that with
revenue earned from the comparatively well-off clients, we are able to invest more
extensively in services specific to our target clients. We will strive to provide a
respectable return on investment to all stakeholders through market-leading
efficiencies, by understanding our clients, and by leading with technology and

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other innovations. This will allow us to extend our outreach and impact on our
target clients while creating and maintaining a financially sound, stable and
growing institution with the biggest market. We will strive to become one of the
most professional Marketing Company, acting with honesty, integrity and care
towards our customers. Our Shop processes and procedures will meet international
standards.

3.3. Objective
The Shop established to address the following objectives: -

 Crating satisfying customers: our primary responsibilities are to our

customers and forwards impeccable services and quality products at
competitive price with professional competence and integrity.
 Investing in people: we would be investing in our people in professional
development, motivating talent, creating diversity in a team, appreciating
effort and rewarding results.
 Reputation and good will: being legally responsible and long lasting
relationships with stakeholders.

As our town is highly developing and from time to time the number of residents is
being increased and as our town is the capital town for the Arsi zone there are a
number of people coming from different parts of the zone. In addition there are
only few numbers of supermarkets are available in the town. Hence, Shop service
is becoming one of profitable business sectors. It provides different kinds of items
that are essential for living such as food products.

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 3.4. Economic significant of the project

The envisaged project deemed to contribute to the economic development of the

town in the following ways.

Source of employment
Source of government revenue
Source of social service

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 4. Marketing plan
The shop strategy will be to promote our service, and exciting concepts to draw in
the local repeat customers. Marketing initiatives will concentrate on the following:

4.1. Building and Signage

The most important Marketing tool that we have is the exterior of our building, our
new sign and our website. We budgeted a great deal into the renovations and decor
to generate the aesthetic appeal. Management will demand the wait-staff provide
the very best in quality services to the customer, making certain that they are
content and satisfied with their need. Wait-staff are thoroughly trained, and every
90 days they undergo a performance appraisal. This is part of our Employee
Manual, and Operations Manual guide.

4.2. Customers

In our years within the Marketing industry, customer service has always been the
major draw for the service. As clearly indicated in the introductory part of this
proposal, the operational area of the business is Asella town.

4.3. Competition

There are different forms of competition that may face the envisaged project.
These are price and non-price based competition. Moreover, there are different
competitors that will compete with the project either directly or indirectly. Both the
project under discussion has diversified marketing strategies that could enable it
come up with the different competitors, moreover it will frequently conduct

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competitors research which focus on, the strength and weaknesses, the different
competitor's strategies, the techniques they use in rendering quality services, their
customer handling methods, use time appropriately; and others.

4.4. Sales Plan

Our strategy is simple: we intend to succeed by giving our customers a
combination of quality materials and interesting in an appealing environment, with
excellent customer service, whether on their first visit or their hundredth.

Our marketing strategies are designed to get critics and initial customers into our
doors. Our sales strategies must take the next step and encourage customers to
become repeat customers, and to tell all their friends and acquaintances about the
great experiences they just had at Company.

New Sales Company often make one of two mistakes: they are unprepared or
underprepared for opening, and initial poor service, speed, or quality discourages
customers from returning, or they spend all of their efforts at opening, and are
unable to maintain the initial quality customers expect on return visits, decreasing
word of mouth advertising and leading to poor revenues.

Our company’s sales strategy requires consistently high quality food, service,
speed, and atmosphere. We can accomplish this by:

 Hiring employees who genuinely enjoy their jobs and appreciate Company’s
unique offerings
 Continually assessing the quality of all aspects mentioned above, and
immediately addressing any problems
 Interacting with our customers personally, so they know that their
feedback goes directly to the owners

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  Evaluating material brand choices for popularity, and keeping favorites on
the quantity.

4.5. Service and Items

We will give supermarket services for the community and provide the following
items:

 Cosmetics: Products In this Category comprises of Cosmetics products used

for beautifying the body. They include; body lotions, hair cream, powder,
make-up kits. These products sell well and fast because everybody needs to
look good and neat at all times.
 Organic Food: Products in this Category consists of Fresh fruits and raw
vegetables. Organic food should be well preserved to maintain its freshness.
 Jewelries: Products that fall under this group includes both Male and Female
Jewelry sets like Watches, Earrings, Wrist chains, necklaces and many
others.
 Toys: Kids most times go for shopping with their Parents. So a section for
different toys should be on display in a Supermarket; especially recent
Cartoon Characters is profitable.
 Drinks: Products in this category includes various assorted drinks, but
locally made and imported. They include; Fruit Juice and Soft drinks.
 Hair Products: Products in this Category includes every item needed to keep
the hair neat, such as; Hair extensions, Hair cream, Hair Relaxing Creams.
 Kitchen Wares: These consists of various utensils which are used in the
kitchen such as Plates, Cutleries, Kitchen pots and Pans, Stoves, Dish
washers.
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  Canned Foods: These include products that are packaged in Tin Containers;
Such as tomatoes Paste, Sardines, Canned Sauce and many other canned
products.
 Diary and Poultry Products: These are products gotten from Farm animals.
They include Milk and Eggs.
 Packaged Products: These comprises of packaged goods that are not canned.
They include, bread, assorted biscuits and injera.
 Household Products: Products in this Category consists of items used in the
home, such as flower Vases, Shoe Bags, Portable wardrobes and many
others.
 Seasonal Products: These include products which are sold periodically. For
instance, during the Christmas Season, Christmas trees will be on sold in
major Supermarkets.
 Food Stuffs: Dry Foods stuffs such as Rice, Beans and tin tomatoes can be
repackaged into smaller quantities and sold in a Supermarket.

4.6. Positioning
The marketing position of Genet Shop is the best market place which preferred by
its customers. The customers prefer taking into consideration its accessibility in
positioning of its location and affordability in connection with price.

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 5. Human Resource Management and Requirements
5.1. The business and management
The organizational structure should be in a way that the project can able to achieve
as well as the satisfaction of standard requirement.

Organizational Structure should take into Account

 Show company ownership structure, business units and subsidiaries where
applicable
 Attach and organization chart showing the functions and responsibilities of
director’s key management and staff.
 Formulate remuneration, incentives, share options, and conditions of
employment of key management and directors.
 Analysis of any deficiencies in management and how these options are to be
filled.
 Comment on current and future employment levels, labor relations and
union membership.
 Include details of system to be implemented: information technology,
accounting, administration, information management and stock control
systems.
 Include details of auditors, attomeys, bankers and professional advisers.

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 5.2. Organizational structure
The organizational structure of the business is designed by including all the necessary personnel
for right personnel requirement. At the top of the organizational structure, there will be the
owner of the business with the responsibility of supervising the overall activity of the business.
And the manager will manage all other employees.

The Manager of the Company is Responsible for

 Will plan, organize, direct and control the overall activities of the service provide for the
customer.
 Will advise policies and strategies that will enable the business to ne profitableness of the
business.
 Will incorporate modern technological innovation that will facilitate the service delivery
of marketing business.

Owner and Manager

Casher Sales
personnel personnel

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 5.3. Man power Requirements
The total man power required for the company will be 6 persons. These are owner,
Manager, sales personnel, cleaner, and Guard.

Table 1.Genet Shop employees list

No Description No of employee Qualification and

experience

1 sales personnel 1 Diploma Marketing or

Related Fild

2 Casher Personnel 1 Diploma in Accuntant

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 6. Financial planning and Analysis
6.1. Working capital assumptions
 Initial Investment

The total investment cost of the project is estimated to be at as shown below. the
finance in the form of equity while the Total 100% is to be financed Coverd by the
stakeholders (Sinqe Bank).

Items Total Amount Equity Bank Loan

Preparation of place
for the Shop

Equipment

Pre-project
expenditure

Total 20,500.00

Equipment

Description Total Amount Equity Bank Loan

Packed foods 150,000.00

Cosmetics 685,000.00

Organic Food 279,500.00

Jewelries 42,635.00

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 Toys 25,300.00

Drinks 125,000.00

Hair Products 45,750.00

Kitchen Wares 75,890.00

Household 50,425.00
Products

Office furniture of equipment

 Production costs

The total production cost at full capacity operation is estimated at birr-20,500.00

Items Total Cost

Tables 12,000.00

Chairs 8,500.00

Total production Cost 20,500.00

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Interest and Principal

 Salary and Wage

Position No Monthly salary Annual Salary

Manager 1 4,500.00 54,000.00

sales personnel 2 3,500.00 42,000.00

Casher personnel 1 2,000.00 24,000.00

Cleaner 1 1,500.00 18,000.00

Guard 1 1,200.00 14,400.00

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Genet Shop Projected Profit and Loss Statement For the Period of Year 1 to 5
Description Yr-1 Yr-2 Yr-3 Yr-4 Yr-5

Sales Revenue

1,256,487.00 2,382,345.70 2,535,487.50 2,698,458.85 3,040,120.65

Total Sale 2,256,487.00 2,382,345.70 2,535,487.50 2,698,458.85 3,468,304.60

Purchase of Raw Materials 958,654.23 1,054,519.60 1,159,971.50 1,275,968.60 1,524,565.50

other operating expenses 10,500.00 15,620 18,425 25,360 35,425

Salary 152,400.00 167,400 184,400 202,840 223,124.00

Employee Benefit 2,500 3,200 4,500 6,000 7,500

Depreciation 4,100.00 4,100.00 4,100.00 4,100.00 4,100.00

Total Administrative Expense 1,128,154.23 1,244,839.60 1,371,396.50 1,514,268.60 1,794,714.50

Income before Finance Charge-

1,128,332.77 1,137,506.10 1,164,091.00 1,184,190.25 21,245,406.15

Interest Expense

455,000.00 455,000.00 455,000.00 455,000.00 455,000.00

Profit before tax

673,332.77 682,506.10 709,091.00 729,190.25 790,406.15

Profit Tax (35%) 217,666.40 220,877.10 230,181.80 237,216.50 258,642.10

Net Income/loss/ 455,666.37 461,629.00 478,909.20 491,973.75 531,640.05

As we can see from this income loss statement it is possible to deduce that the project will cover its
maximum initial investment cost within specified time range.

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