PROJECT PROPOSAL

PROJECT OWNER ATO ANILEY WUBIE

PROJECT PURPOSE OF PLAN Gas stations

PROJECT SOURCE OF CAPITAL 30,830,000 BIRR

PROJECT LOCATION EAST GOJJAM ZONE YEED-WHA CITY

TOTAL AREA FOR PROJECT 5000M2

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Contents

Basic Information.................................................................................................................4

1. EXECUTIVE SUMMARY........................................................................................................1

2. INTRODUCTION ...................................................................................................................2

3. OVERVIEW ...........................................................................................................................3

4. owner Background ..............................................................................................................4

5. The Project...........................................................................................................................5

6. Our Business Structure………………………….............................................................................6

7. Analysis………….................................................................................................................10

8. MARKET ANALYSIS……………………….....................................................................................11

9. Sources of Income..............................................................................................................14

10. Sales Forecast..................................................................................................................14

11. Gas Station Business Plan – Publicity and Advertising Str ......................................15

12. Our Pricing Strategy…………………………………..............................................................15

13. Start – Up Expenditure (Budget)……………………………..............................................16

14. Gas Station Business Plan – Sustainability and Expansion Strategy……………………………20

15. Viability and other measurement .................................................................................21

16. SENSITIVITY ANALYSIS………………………………..................................................................12

17. RISK ANALYSIS…………………………....................................................................................13
18. MONITORING AND EVALUATION..................................................................................14

19. CONCLUSION AND RECOMMENDATION.......................................................................14

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 ቀን፡ - ..........................

ለ ሸበል በረንታ ወርዳ ኢንቨስትመንት ቢሮ

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የእድ ውሃ

ጉዳዩ ፡ - ኢንቨስትመንት ጥያቄን ስለመጠየቅ

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ከላይ በጉዳዩ ለመግለፅ እንደተሞከረዉ እኔ አቶ አንለይ ውቤ በሸበል በረንታ ወርዳ የእድ ውሃ ዉስጥ ነዋሪ ስሆን
የንግድ ፍቃድ አዉጥቸ አገሬንና ህዝቡን ለማገልገልና አኔም ድርጅቴም ማህበረሰቡን በታማኝነትና በትህትና ለማገልገል
ወደ ኢንቨስትመንቱ አለም ለመግባት ቆርጫለሁ ስለሆነም የሸበል በረንታ ወርዳ ኢንቨስትመንት ቢሮ በሸበል በረንታ

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ወርዳ የእድ ውሃ አካባቢ ለነዳጅ ማዲያ የሚሆን ቦታ ማለትም 5000 /
ካ ሜ የሚሆን ቦታ ተሰጦኝ በሀላፊነት እና
በታማኝነት ህዝቤን ማገልገልና ድርጅቴን ማሳደግ ስለምፈልግ ይህንን አይቶ ቢሮዉ ፕሮጀክት ፕሮፖዛሌን በትኩረት
ገምግሞ አይቶ በአጭር ጊዜ ዉስጥ ወደስራ እንድገባ ቦታው እንዲሰጠኝ ስል በአክብሮት እጠይቃለሁ፡፡

ከሰላምታ ጋር

አንለይ ውቤ

የድርጅቱ ባለቤት

BASIC INFORMATION

 Name of the Owner: ATO ANILEY WUBIE

Contact Address: +251-913892153
 Type of the Project: Gas stations
 Type of Business: Gas station

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Project Location: EAST GOJJAM ZONE YEED-WUHA CITY

 Project capital &Source of finance : The total investment capital of the project is estimated at
birr 46,587,629 of which:
 Birr 18,498,000 (60%) is for fixed investment cost
 Birr 12,332,000 (40%) will be assign for working capital
 :
 Man power requirement: 50 employees will be benefited within this project, out of which
20permanent (10 skilled & 10 unskilled 8th grade) and 30 casual workers during construction
phase.
 Land requirement: The total area of 5000 m2 of land is required for the project

1. EXECUTIVE SUMMARY

The project feasibility study proposed on DIPO investments has been owned by ANILEY WUBIE in
BICHENA small city administration. YEED-WUHA is a fast growing regional economic center and the one of
capital of YEED-WUHA. Due to its regional political status YEED-WUHA is often referred as the political capital
of YEED-WUHA. Economic growth is further increasing demand at faster per annum this is therefore
ANILEY gas station investment founded its base on it.
PROJECT JUSTIFICATION: ANILEY gas station is high class DIPO.

The demand and supply of fuel and its service in YEED-WUHA has high gab the supply of a quality fuel and
a total of currently in the market. Branded supply is very low; due to this demand and supply analysis
ANILEY gas station wants to participate and minimizes the gab of demand and supply fuel in YEED-
WUHA including YEED-WUHA.

The total area of the investment is about 5000 meter square The area covered and develop the
following infrastructures such as main road, cafeteria service, store, gourd house, , parking area and
other necessaries facilities

The total investment capital of the project is estimated at birr 30,830,000 of which birr 18,498,000
(60%) is for fixed investment cost of which 60 % of the fixed cost is need foreign currency while the
remaining balance of birr 12,332,000 (40%) will be working capital.

PROFITABILITY: The financial analysis of the envisaged project is carried out for the following ten years.
Based on the 10 years financial projections using the income statement, cash flow statement and
financial internal rate of return (FIRR), the following results are obtained.

 Income statement: According to the projected income statement, the project will
generate profit beginning from the first year of operation. Based on the 10 years

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 financial projections the projects average annual net profit after payment of bank
interest, depreciation and tax amounts to birr 13,752,000
 FIRR Computation: The computation of the project FIRR shows that the project
will profitably generate reasonable return on investment. Before tax financial
internal rate of return is calculated to be 33.9%. This indicates the project is
financially viable with an internal rate of return (IRR) of 33.9 % and net present
value (NPV) 13.7 million at discount rate 35 %.
 Socio economic benefits: The socio economic benefit of the project is also very
high. The project will provide:- 50permanent employs, Generate revenue to
government in the form of taxes, Facilitate and give a good service for local and
international guest

2. INTRODUCTION

Starting a gas station or filling station or petroleum station as it is typically called in some parts of
the world is indeed one of the means of owning a business portfolio in the oil and gas industry. This is
for sure one business that has made a lot of people millionaires or even billionaires. It is true that
playing in the gas industry might require loads of funds, but in the long run it sure does pay.

What Does It Take to Start a gas station Successfully?

If you are looking to start a gas station business, the care has to be taken in deciding on the area you
want to delve into. You will also be required to carry out various market researches. Why is this
important, you may ask? This is especially important because of the level of knowledge about the trade
that you will be required to garner. Knowledge is indeed very important in the gas industry.

Yet another thing that you would have to take really seriously is the writing of a business plan. The
business plan is one manuscript that has continued to be important. This is because it serves as a good
blueprint on top which every business should be built. On the other hand, not everyone knows how to
write a business plan. This is because of the technicality which is involved in the activity.

On the other hand, there are loads of business experts who are specialized in the writing of business
plans. They do this for some fee. If you think that you do not want to part with your money, then you
may want to look at using an existing business plan template to produce yours.

However, be sure to have loads of information about your business. Some of the things that should be
contained in a business plan includes: your sales forecast, the structure upon which you plan to build
your business, your marketing strategies, how you plan to raise funds for your business and a host of
other things.

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That said now here is a sample gas station business plan;

3. Overview

A gas station which also called a petrol station, filling station, fueling station, or service station is a
business facility which retails gasoline (petrol), diesel and lubricants for motor vehicles. Gas stations
offer one of three types of service to their customers: full service, minimum service or self-service.

A full service gas station has attendants who operates the pumps, often wipes the windshield, and
sometimes checks the vehicle’s oil level and tire pressure, then collects payment and perhaps a small tip
and a minimum service gas station has attendants that operates the pumps. This is often required due to
laws in some cities that prohibit customers from operating the pumps themselves.

While in self – service gas stations the customer performs all required service. Instructions informing the
customer of filling procedures and cautions are clearly displayed on each pump. Customers are expected
to go to the store or go to a booth to give payment to an employee of the station and lastly we have the
unmanned gas station that make use of card – lock (or pay-at-the-pump) system, these gas station are
completely unmanned.

The Gas Stations industry over the years has experienced a modest amount of volatility. As a matter of
fact, as more Americans acquire automobiles, the total vehicle miles increased and this gives room to
increase in the demand of gasoline. So also, as per capita disposable income continued to increase,
some automobile owners would choose to go for premium fuel, which is priced higher than lower-
octane fuel.

Just like other industry, the gas station industry has also experienced its fair share of ups and downs
over the last five years. As a result of strengthening domestic economy and improvement in
employment over the early part of the last five years, the gas station Industry also experienced
improvement in performance.

The Gas Station industry is indeed a very large industry and pretty much thriving in all the parts of the
world. Statistics has it that in the YEED-WUHA , there is few licensed gas station businesses responsible
for employing about above 1000 employees.

The major breakthrough in the gas station industry came as a result of the increase in automobile
ownership which can be attributed to ATO ANILEY WBETIE when he started to sell automobiles that
the middle class could afford resulted. The gas industry therefore, experienced a great boom that has
continued to affect nearly all economies of the world.

In the bid to stay afloat in the highly competitive gas station industry, owners of gas stations now go the
extra mile to ensure that they make their facility welcoming and conducive for customers. Gas stations

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now have vulcanizing services, car wash, convenience stores, coffee bars, snack bars, and cigar lounge
within their facility so as to leverage on the opportunities around them to generate more income.

Although the gas station industry can be said to be a competitive industry, but it does not in any way
stop entrepreneurs who are creative and financially capable to still make headway in the industry. It is
indeed a profitable industry especially when the business is well located. No doubt busy highways and
busy cities with growing population is highly suitable for gas stations. The catch is that if there are
automobile users in any city, then the city would have need for a gas station.

 Gas
 Diesel
 Automotive services (e.g. repairs, car washes and general parts)
 Nonautomotive fuel
 Retailing automotive fuels (e.g. diesel fuel and gasoline)
 Selling automotive-related goods
 Providing automotive-repair services
 Providing Wheel Alignment, Wheel Balancing and Vulcanizing Services
 Retailing of Groceries and soft drinks et al

4. Owner Background

The promoter, ANILEY has a work experience in different business activities. During this time, the
promoter gained a vast knowledge and skill. With this reliable experience, ANILEY knows how to
manage and lead any organization to profit and also know how to handle different challenges in the
working environment. Moreover ANILEY WUBETIE has a very good reputation with banks and
different financial organizations.

the local bank.

5. The Project

5.1. Project description and Justification

Gas Station is high class business type where services

A fuel is an establishment that provides paid lodging on a short-term basis. Facilities provided may range
from a modest-quality mattress in a fuel to large suites with bigger. Small, lower-priced Gas Station may
offer only the most basic 24 hours services and facilities.

5.2. Project Objective

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The main objective of the project is aimed at to maximize the return on invested capital in the form of
profit for the promoter. However, its implementation will benefit the employee, the consumer society
and the government at different levels. In this respect the project is aimed to promote the following
objectives:

 To maximize the return on invested capital through modern Gas Station services
 To raise the significance and importance of the sector and thereby raising its contribution to the
regional economic development
 To give quality and standard fuel service
 Effectively use local inputs and strengthening the linkage between agriculture and other sectors
of the economy
 To provide gainful employment to a large segment of the population of the project area and
augment earning capacity at the grassroots level,
 Increase government revenue through the different forms of taxes, which in turn used to
facilitate social and economic development.

In general, the project is believed to have significant social and economic benefits that accrue to the
society, the region and the country beyond the financial returns to its owner.

5.4. Mission and Goal

Mission

 Mission of the particular project is to expand the fuel distribution system and to give quality
service.
 To prove to other people that struggle for a better life and economic independences can do
business and bring change and can make a difference if opportunities are given.
 To become financially liquid and guaranteed more than ever.

Goal

Objectives are the goals toward which activities of the business are directed and one of the
most important functions the business owner must perform is setting objectives. This important
aims of this sole proprietor ship business among others include the following highly interrelated
general goals with each other.
 To create employment opportunities for 20 permanent and 30 causal
 To achieve excess fuel and give fast and quality service.

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6. Our Business Structure

ATO ANILEY WUBETIE gas station is set to become one of the leading gas station business in the
whole of YEED-WUHA and other cities where our chains of gas stations will be located hence the need for
us to build a solid business foundation and business structure that will enable us achieve our aims and
objectives.

Excellent customer service and efficiency are top priority for us which is why we will ensure that we look
for applicants that match the picture of the business who want to build before hiring them. Although we
will provide trainings in areas such as excellent customers services et al, but we will ensure that we
shortlist applicants that are customer centric.

In essence, we want to build a team, a dedicated workforce that will work together to help the
organization achieve its set targets. We will not only hire attendants that will help supervise our gas
stations and attend to customers need when they patronize our services, but we will also hire
employees that will manage our convenience store, cash wash, coffee café, cigar lounge, snacks bar,
vulcanizing services, wheel balancing, wheel alignment and other automobile repair and maintenance
services.

ATO ANILEY WUBETIE gas station will employ customer centric and skilled people to occupy the
following position;

 Chief Executive Officer

 gas station Manager
 Accountant / Cashier
 Human Resource and Admin Manager
 Pump Attendant
 Convenience Store, Coffee Café, Snacks Bar, Cigar Lounge Manager
 Vulcanizing Services, Wheel Balancing, Wheel Alignment and Automobile Repairs and
Maintenance Manager
 Carwash Manager

 Security Guard

Chief Executive Officer

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 Human Resource and Gas Station Manager Accountant / Cashier
Admin Manager

Carwash Manager Pump Attendant Store , Café Manager

Maintenance Manager

Security Guard
6.1 Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions; providing educational
opportunities.
 Creating, communicating, and implementing the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall direction
– i.e. leading the development and implementation of the overall organization’s strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Gas Station Manager

 Responsible for overseeing the smooth running of the gas station

 Map out strategy that will lead to efficiency amongst workers
 Responsible for training, evaluation and assessment of workers
 Ensures operation of equipment by completing preventive maintenance requirements; calling
for repairs.

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  Ensures that the gas station meets the expected safety and health standard at all times.

Human Resources and Admin Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Updates job knowledge by participating in educational opportunities; reading professional
publications; maintaining personal networks; participating in professional organizations.
 Enhances department and organization reputation by accepting ownership for accomplishing
new and different requests; exploring opportunities to add value to job accomplishments.
 Defines job positions for recruitment and managing interviewing process
 Carrying out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Oversee the smooth running of the daily office and factory activities.

Convenience Store, Coffee Café, Snacks Bar, and Cigar Lounge Manager

 Interact with customers; take orders for coffee and snacks.

 Responsible for preparing different flavor and style of coffee for customers
 Make lists of supplies in conjunction with the bar manager
 Ensure that each cup of coffee that leaves the kitchen is tailor made and meet the request of
each customer
 Responsible for quality control
 Assess customers’ needs and preferences and make recommendations
 Make lists of supplies in conjunction with the management
 Prepare inventory or purchase requisitions as needed to replenish supplies.
 Ensure that the assigned bar area is fully equipped with tools and products needed for Mixing
beverages and serving guests.
 Responsible for managing the cigar lounge
 Assess customers’ needs and preferences and make recommendations
 Make lists of supplies in conjunction with the management
 Prepare inventory or purchase requisitions as needed to re – stock the lounge.
 Clear ashtrays regularly

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  Ensure that the assigned lounge area is fully equipped with tools and products needed to by our
clients

Accountant / Cashier

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting reports;
analyzes financial feasibility for the most complex proposed projects; conducts market research
to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Pump Attendants

 Mans the various gas pump machines (in fully services gas stations)
 Assists customers as required by them especially on how to operate our gas pump machines (in
self – service gas stations)
 Provides change for customers
 Handle any other duty as assigned by the gas station manager

Vulcanizing Services, Wheel Balancing, Wheel Alignment and Automobile Repairs and Maintenance
Manager

 Responsible for running our vulcanizing services, wheel balancing services, wheel alignment
services and automobile repairs maintenance services
 Assists customers as required by them especially when it relates to choosing the right lubricants
to use and the right time to service their automobiles
 Handles any other duty as assigned by the gas station manager

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Car wash Manager

 Wash and thoroughly clean cars (exterior car washing, interior cleaning, and waxing services),
trucks and bikes et al
 Handle and move objects, such as glasses, dish and bottles, using hands and arms.
 Cleans up after customers and clean work area.
 Clears ashtrays as and when required.
 Washes glassware and utensils after each use.
 Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and
windows, etc. if required.
 Ensures that toiletries and supplies don’t run out of stock
 Handle any other duty as assigned by the gas station manager.

Security Guards

 Ensures that the facility is secured at all time

 Controls traffic and organize parking
 Gives security tips to staff members from time to time
 Patrols around the building on a 24 hours basis
 Submits security reports weekly
 Handles any other duty as assigned by the gas station manager

7. Analysis

Knowing the strength and weakness of any business is one of the right steps to take in business. No
doubt starting a gas station is indeed capital intensive especially for aspiring entrepreneurs who may not
have huge sum of money saved up in a bank.

We are aware that it will require loads of cash to set up a standard gas station in YEED-WUHA which is why
we decided to do all that is required to build a profitable business; we don’t intend to invest our hard
earn money in a business that we know we are not truly cut out for. One of the tools that is required to
position us in building a successful gas station business is SWOT Analysis.

7.1 Strength:

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ATO ANILEY WUBETIE gas station is centrally located along one of the busiest highways in YEED-
WUHA; our location is in fact one of our major strength. Aside from the basic service that we offer, we
also offer complimentary services that most of our competitors are not offering.

So also the vast experience of our management team, we have people on board who are highly
experienced and understands how to grow business from the scratch to becoming a national
phenomenon and our attendants are well groomed to handle various classes of customers; our excellent
customer service culture will definitely count as a strong strength for the business.

7.2 Weakness:

Our perceived weakness could be the fact it is a new gas station business which is owned by an
individual (a small family), and we may not have the financial capacity to sustain the kind of publicity
that can give us leverage and start operating chains of gas stations in various cities in the Amhara as
planned.

7.3 Opportunities:

We are centrally located in one of the busiest highways in YEED-WUHA and we are open to all the available
opportunities that the city has to offer. Our business concept also positioned us to attract people who
like doing their shopping, washing and servicing their automobile in gas stations.

7.4 Threat:

One of the major threats that confront businesses all over the world is economic downturn; when the
economy is bad it affects consumers spending which in turn impacts businesses negatively. Another
threat that we are likely going to face to confront us is the emergence of a new gas station within the
same location where ours is located.

8. MARKET ANALYSIS

8.1 Market Trends

There is hardly anyone who doesn’t have a need for gas, this is why it is really vital that one keys into
this industry. One of the trends in the gas station industry is that, in the bid to stay afloat in the highly

14
competitive gas station industry, owners of gas stations now go the extra mile to ensure that they make
their facility welcoming and conducive for customers.

DIPO now have vulcanizing services, car wash, convenience stores, coffee bars, snack bars, and cigar
lounge within their facility so as to leverage on the opportunities around them to generate more
income.

Another trend is the adoption of the underground modular gas station model. The underground
modular gas station is a construction model for gas stations that was developed.

8.2 Our Target Market

Before choosing a location for our gas station business, we conducted our feasibility studies and
market survey and we were able to identify the location that will benefit greatly from our products and
service offerings which is why we deiced to settle for YEED-WUHA.

Essentially those who will benefit from our service offering are automobile owners / drivers and they are
of course busy corporate executives, business owners, households, students and travelers / visitors /
tourist et al. They are the category of people that we intend marketing our gas station services to.

8.3 Our Competitive Advantage

From our recently concluded feasibility studies and market survey, as a matter of fact, there are about 3
standard gas stations close to same locations as ours. This goes to show that there is stiffer competition
in the industry.

Before launching our gas station we have critically studied the market and we know that we have some
form of competitive edge. Our competitive advantage is that we have a standard gas station facility that
offers additional complementary services that will definitely help us attract and retain customers.

Another competitive advantage that we have is the vast experience of our management team, we have
people on board who are highly experienced and understands how to grow business from the scratch to
becoming a national phenomenon. So also the wide varieties of other complimentary services and
products that we offer and of course our excellent customer service culture will definitely count as a
strong strength for the business.

One thing is certain, we will ensure that in future, we open our gas stations in various cities in the
Amhara and also sell our franchise. With that our brand will be well communicated and accepted
nationally.

gas station Business Plan – SALES AND MARKETING STRATEGY

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 8.4 Marketing Strategy and Sales Strategy

The marketing strategy for ATO ANILEY WUBETIE gas station is going to be driven basically by
making available standard and safe gasoline and diesel et al, excellent customer service and provision of
complimentary services. We will work hard to build a loyal customer base; customers that will always
patronize us over and over again and as well help us use word of mouth publicity to get their friends and
acquaintance to patronize us.

We want to drive sales via making available easy to use fuel pumping machines (for self – services) teal.
We are quite aware of how satisfied customers drive business growth especially businesses like gas
station which is why we will always ensure that our customer service and facility are top notch.

Over and above, our unique selling proposition is that we have various complementary service offerings
such as convenience store, coffee café, snacks bar, cigar lounge, vulcanizing services, wheel balancing,
wheel alignment, carwash and automobile repairs and maintenance services. We will also retail
lubricants and other related products.

In view of that, we are going to adopt the following strategies to ensure that we do not only attract
customers but ensure that they become loyal customer. Part of the marketing and sales strategies that
we will adopt is;

 Introduce our gas station by sending introductory letters to residence, transport companies,
merchants and other stakeholders both in YEED-WUHA and in other cities in the State of Amhara.
 Open our gas station with a party so as to capture the attention of residence who are our first
targets
 Advertise our gas station on national dailies, local TV stations and local radio station
 Promote our gas station online via our official website and all available social media platforms
 Continuously Improving the performance of our brands
 Hire the services of experts to make our brands the first choice for in YEED-WUHA and other cities
where we will open a gas station
 Delivering consistent customer experiences to all our clients; making our first impression count
positively
 Make use of attractive hand bills to create awareness and also to give direction to our gas
station
 Adopt direct mailing coupon marketing approach
 Position our signage / flexi banners at strategic places
 Create a loyalty plan that will enable us reward our regular customers

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  Engage on road shows within our neighbourhood to create awareness for our Laundromat
business.

9. Sources of Income

ATO ANILEY WUBETIE gas station is established with the aim of maximizing profit in the gas
station industry in the Amhara and we are going to go all the way to ensure that we do all it takes to
generate enough incomes from both our basic product and services offerings and our complimentary
services.

ATO ANILEY WUBETIE gas station will generate income by offering the following services and
products;

 Gas
 Diesel
 Automotive services (e.g. repairs, car washes and general parts)
 Nonautomotive fuel
 Retailing automotive fuels (e.g. diesel fuel and gasoline)
 Selling automotive-related goods
 Providing automotive-repair services
 Providing Wheel Alignment, Wheel Balancing and Vulcanizing Services
 Retailing of Groceries and soft drinks et al

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility study
and also some of the assumptions readily available on the field with reference to similar business in
YEED-WUHA. We know that we are well positioned and we will definitely attract clients that will not only
patronize our gas station but will also patronize our complimentary services which will help increase our
income.

Below is the sale projection for ATO ANILEY WUBETIE gas station, it is based on the location of our
gas station and the type of services and products that we will be offering;

 First Year-: 500,000birr

 Second Year-: 1,500,000birr
 Third Year-: 2,500,000birr

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N.B: This projection is done based on what is obtainable in the industry and with the assumption that
there won’t be any gas station offering same additional services like us within 1km radius from our
gas station facility.

11. Gas Station Business Plan – Publicity and Advertising Strategy

Despite the fact that our gas station is a standard one with a wide range of other complimentary
services and products that can favourably compete with other leading brands in the gas station industry,
we will still go ahead to intensify publicity for all our products and brand. We are going to explore all
available means to promote ANILEY gas station.

ANILEY gas station has a long term plan of opening our gas stations in various locations all around
key cities in the Amhara which is why we will deliberately build our brand to be well accepted in YEED-
WUHA before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for
selling our products and services but to also effectively communicate our brand.

Here are the platforms we intend leveraging on to promote and advertise ANILEY gas station;

 Place adverts on both print (community based newspapers and magazines) and electronic media
platforms
 Sponsor relevant community programs
 Leverage on the internet and social media platforms like; Instagram, Face book , twitter, et al to
promote our brand
 Engage in road show from time to time in targeted communities
 Distribute our fliers and handbills in target areas
 Position our Flexi Banners at strategic positions in the location where we intend getting
customers to start patronizing our products and services.
 Ensure that all our staff members wear our customized clothes, and all our official cars, fuel
tankers and trucks are customized and well branded.

12. Our Pricing Strategy

It is the wish of all businesses to have a pricing system that will yield loads of profits for them; as such
we are working on having very competitive pricing. ANILEY gas station, our pricing system is going to
be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and
customized services) and we don’t intend to charge less than our competitors are offering in YEED-WUHA

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Be that as it may, the management of ANILEY gas station has put plans in place to offer discounts for
our complimentary services and products once in a while and also to reward our loyal customers
especially when they refer clients to us.

The prices of our products (snacks, cup of coffee, cigar, detergents et al) and services (vulcanizing, wheel
balancing, wheel alignment, car wash, and automobile repair and services) will be same as what is
obtainable in any part of the Amhara.

12.1Payment Options

At ANILEY gas station, our payment policy is all inclusive because we are quite aware that different
people prefer different payment options as it suits them. We will work really hard to make sure that all
our clients are given payment methods that suit them.

Here are the payment options that will be available in every of our outlets;

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans
without any itches.

13. Start – Up Expenditure (Budget)

When it comes to starting a gas station business, loads of factors influences the amount that will be
required to successful launch the business. Factors like the location you intend starting the business, the
size of gas station business you want to start i.e. the number of complimentary services you want to add
to the business, and of course the state of the economy as at when you intend start the business.

This is the key areas where we will spend our start – up capital on;

Table1 Start – Up Expenditure (Budget) table

S/n Description Source of Income Remark

Investment
capital (Br.)

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1 The Total Fee for 4,200,000 Local Market
Registering the Business in
2 Building & Constructions 8,150,000 50% foreign currency Duty free
(2000 flyers at 05 per copy) 5,000 Local Market
for the total amount of
Cost for hiring Business 10,000 Local Market
Consultant
Insurance (general liability, 100,000 Local Market
theft, workers’
compensation and
property casualty)
coverage at a total
premium
Cost for leasing facility for 13,000,000 50% foreign currency Duty free
the gas station
Other start-up expenses 5,000 Local Market
including stationery
Phone and Utilities (gas, 50,000 Local Market
sewer, water and electric)
deposits
4 vehicles and furniture 5,050,000 90% foreign currency Duty free
Operational cost for the 50,000 Local Market
first months (salaries of
employees, payments of
bills et al)
The cost for Start-up 100,000 Local Market
inventory
The cost for Washer hook- 25,000 Local Market
up fees (sewer connection)
Cost for serving area 15,000 Local Market
equipment for coffee café
and snacks bar ( glasses,
flatware)
The cost for the purchase 55,000 Local Market
of furniture and gadgets
(Printers, Telephone, TVs,
Sound System, vacuum
cleaner, tables and chairs
et al)
Miscellaneous supplies 15,000 Local Market
(cleaning supplies, soap,
invoices for wash-and-fold,
bathroom supplies, etc.)
5 Sub total 30,830,000 52.04% foreign Duty free
currency

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We would need an estimate of 30.83 million birr to successfully launch our gas station business in YEED-
WUHA Please note that the start up cost is higher than the average start-up cost for a gas station
business simply because we intend adding coffee café, snacks bar, cigar lounge, car wash, convenience
store and other complimentary services.

13.1 Financing

ATO ANILEY WUBETIE gas station is a family business that is owned and financed by. ATO ANILEY
WUBETIE and family. They do not intend to welcome any external business partner which is why he has
decided to restrict the sourcing of the start – up capital to 2 major sources.

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

 Source for soft loans from family members(40%= 12,332,000)

 Apply for loan from my Bank(60%=18,498,000)

The bank loan will be repaid based on the following terms and conditions:
 Loan amount = birr 18,498,000
 Installment period/ term = 10 years
 Interest on loan (including service charge) = 11.5%
Table2. Depreciation Schedule
S/n Description Original Value Annual Depreciation
% Amount (Br.)

1 The Total Fee for 4,200,000 10 4,200,00

Registering the Business in
2 Building & Constructions 8,150,000 10 815,000
(2000 flyers at 05 per copy) 5,000 10 500
for the total amount of
Cost for hiring Business 10,000 10 1000
Consultant
Insurance (general liability, 100,000 10 10,000
theft, workers’
compensation and
property casualty)
coverage at a total
premium
Cost for leasing facility for 13,000,000 10 1,300,000
the DIPO
Other start-up expenses 5,000 10 500
including stationery
Phone and Utilities (gas, 50,000 10 5,000

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 sewer, water and electric)
deposits
4 vehicles and furniture 5,050,000 10 505,000
Operational cost for the 50,000 10 5000
first months (salaries of
employees, payments of
bills et al)
The cost for Start-up 100,000 10 1000
inventory
The cost for Washer hook- 25,000 10 2,500
up fees (sewer connection)
Cost for serving area 15,000 10 1,500
equipment for coffee café
and snacks bar ( glasses,
flatware)
The cost for the purchase 55,000 10 5,500
of furniture and gadgets
(Printers, Telephone, TVs,
Sound System, vacuum
cleaner, tables and chairs
et al)
Miscellaneous supplies 15,000 10 1,500
(cleaning supplies, soap,
invoices for wash-and-fold,
bathroom supplies, etc.)
5 Sub total 30,830,000 - 3,074,000

14. Gas Station Business Plan – Sustainability and Expansion Strategy

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

ATO ANILEY WUBETIE gas station will ensure that all the factors listed above are reinforced on a
regular basis, we will continue to improvise with our products and services and also we will engage in
continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be
made available to all our management staff and it will be based on their performance for a period of five
years or more. We will make sure that the right foundation, structures and processes are put in place to
ensure that staff welfare is well taken off. Our company’s corporate culture is designed to drive our
business to greater heights and training and re – training of our workforce is at the top burner.

15. Viability and other measurement

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It is a method of calculating the expected net gain or loss from project by discounting rate of all
expected future cash inflow and outflows to the present point in time In the above table shoes that NPV
at 30% and 35 % discount rate respectively, this figure is positive value it is indicate that accepted the
project until 30 % and 35 % of discount rate

Break-even Analysis
The break-even analysis establishes a relationship between operation costs and revenues.
It indicates the level at which costs and revenue are in equilibrium. To this end, the
break-even point of the project including cost of finance when it starts to operate at full
capacity ( year 2) is estimated by using income statement projection.
BE = Fixed Cost = 23 %
Sales – Variable Cost

 Payback Period (PBP)

The payback period is the amount of time required for a firm to recover its initial investment in a
project, as calculate from cash inflow the investment cost and income statement projection are
used to project the pay-back period
PBP = Initial investment Cost
Gross Profit + Depreciation
= 30,830,000
12,332,000+ 3,074,000
2.=2Years
The payback period =2 is less than the maximum acceptable payback period (10) therefore accept the
project
 IRR
The internal rate of the project is the rate of discount that radios the present value of the
investigated project to zero. In calculating the IRR, the discount rate can be adjusted until the
NPV becomes Zero or at least as to zero. Hence, the IRR of this project is calculated as follows

after tax IRR = 30.8 + 2 (13.7/21.68)

=21.06%
IRR=33.9% of the project returns its initial investment cost within its life

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16. SENSITIVITY ANALYSIS
Sensitivity analysis is variant of scenario analysis in which each scenario represents a change in
only one variable, rather than a number of variables. For the proposed project, the sensitivity of
the project has been computed at 20% and 35% for sales reduction, operating cost increase and
investment cost increased accordingly, as described in table 2 the result shows that IRR at
21.06% operating cost increase and 20 and 35% investment cost increase and 20% service sales
reduction. Predicting among these sales reduction is more sensitive to the project and it should
further expand after the project proposed life time because in this case NPV equal zero at
IRR=21.06
17. RISK ANALYSIS
The major risk of this project shall be high market price fluctuation and turnover the skilled and
trained man power. These risks can be mitigated. The high staff turnover may be lessened by
creating conductive working atmosphere and providing some benefits. For this project, 25%
benefit is proposed for the permanent employees
Characteristic (Personal) Risk: This is the most important risk, which should be seriously
considered? As to this company, the promoter have sufficient years of work experience in both
government and private organization (leading private business by engaging themselves), so
personal risk is minimum under this context
Business Risk: The fate of the business is generally found to be dependable. The demand-

supply analysis exhibits the need of the service of the business Project Proposal on gas station.
According to the overall demand the effect of competitors in the sector would not be an
immediate alarming threat at least for the coming few years. In additional to this Long year
experience of the owner in the field will help to react against any adverse situation in the
business. However, the reaction of competitors should be attended. In additional to an
advanced promotional work and sustainable goodwill development by creating new and best
quality products with good service deliveries
Collateral Risk: Since the owners of the project are engaged on different related business, there
is no any risk related to collateral. In this regard, the proposed building and other proposed
equipment and the business as a whole are dependable securities. The experience and skill of
the owner as well as the manager and the other expertise add confidence to the lenders.
Therefore, there is no risk regarding collateral in general.

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 Construction Risk: Construction risk is one of the most important areas of risk that need great

consideration during project implementation. In the case of gas station services, the

construction work of the proposed gas station will be made by phase with self-response
supervision. Hence, there is no as such serious risk related to construction work.
All the identified risks, which are related to the universally accepted lending policy, are to the
acceptable level that keeps the lender’s interest in safe position. Furthermore, the quality of the
assets of the company is dependable and the projected finical reports show that the company
will have a capacity to pay the principal and interest without any problem with in short period of
time.
18. MONITORING AND EVALUATION
Monitoring and Evaluation (M&E) has long been recognized as a vital aspect of development
projects generally and of industrial and services projects in particular. The monitoring of project
performance consists of the tracking of human, physical and financial resources and the
recording of how they are converted into outputs (project goods and services), and in turn,
outcomes and impacts.
19. CONCLUSION AND RECOMMENDATION
Conclusion:
The Project is found to be operationally profitable & has significant socio-economic benefits.
According to the projected income statement, the envisaged project starts earning profit from
the first year of production. The income statement and other profitability indicators show that
the project is viable. The project is believed to have significant social and economic benefits that
accrue to the society beyond those financial returns to its owner. The most remarkable social
benefits can be expressed in terms of job creation that leads to reduction in the level of
unemployment.
Recommendation:
The project directly employs 50 persons; therefore, considering the attractive financial and
economic benefits the project is to produce, the promoter has made the necessary preparation
hoping that all the concerned offices & financial institutions should give their support to
facilitate the implementation of this plan.

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 SPECIFICATIONS

PARAMETR
TECHNICAL SPECIFICATION PARAMETR
VOLUME OF TANK 40M2
FILLING WEIGHT 15,960 kg
TANK WEIGHT 9,380 kg
THICNESS OF SHELL (MM) 14 mm
THICNESS OF ENDPLATE (MM) 14 mm
TANK DIAMETER (MM) 2400 mm
EXTERNAL DIAMENSIONS(MM) 9270 x 2500 x 3018 mm
(LENGTH x WIDTH x HEIGHT)
MATERIAL OF TANK AND MAIN Carbon steel Q345r
PRESSURE PARTS
FILLING MEDIUM Liquefied petroleum gas
(propane)
DESIGN PRESSURE 1.77mpa(256.7 psi)
CORROSION ALLOWANCE 1mm
MADIU DENSITY 420 kg/cbm

Manufacturing Standard : Pressure Vessels , Supervision regulation on Safety

Technology for Stationary pressure vessels of china.

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