Smallbussnes Plan Muleta

Entrepreneur Business plan
Project
By
Engineering student
Name Id
1, Mulata Belay……………………………….1790/12
Submitted To
……………………….
Submitted Date
25/08/2013 E.c
SMALL BUSINESS PLANNING OF ARBA-MINCH CINEMA 2021
ACKNOWLEDGEMENT
Next to nothing we would like to thank Almighty GOD, for through him we had our well being
and passed every challenge in our doing time and we would like to express our special thanks
of gratitude to our instructor Aschalew who can give more of his effort for us to more
understanding of our courses.
1|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

Engineering student SEC.C
Table of Contents
ACKNOWLEDGEMENT........................................................................................................................1
1.1 Keys to Success......................................................................................................................5
2. Business Description..............................................................................................................................5
2.1. Brief history of the business..................................................................................................5
2.2. Locations and nature of the business....................................................................................5
2.3 Positioning.............................................................................................................................6
2.4 Business Goals.......................................................................................................................6
2.6. Description of Products and Services...............................................................................................6
3. Mission and Vision of the business.........................................................................................7
3.2 Visions :-................................................................................................................................8
4 Market, Product and Services...............................................................................................................8
4.1 Market research and analysis............................................................................................................8
4.1.1 Potential customers.............................................................................................................8
4.1.2 Market Analysis Summary..................................................................................................9
4.2 Market Segmentation.............................................................................................................9
4.3 Market position......................................................................................................................9
5. Organization and Management..........................................................................................................10
5.1. Organizational Structure.................................................................................................................10
5.1.1 Organizational chart.........................................................................................................10
5.2 Entrepreneurial team or Management/Owners.............................................................................11
5.3 The personnel plan...............................................................................................................12
6. Marketing and Sales Strategy................................................................................................13

6.1. Target Market Segment Strategy........................................................................................13
6.2. Marketing Strategy..............................................................................................................13
6.3 Sales Strategy.......................................................................................................................13
6.3.1 Sales Forecast...............................................................................................................14
7.1 Financial documentation...................................................................................................................14
7.1.2 Profit and Loss Statement.................................................................................................14
7.1.3 Break-even Analysis.........................................................................................................15
8. Appendices............................................................................................................................................15

1. Executive Summary
Arbaminch town is the largest town that has no any independent cinema. always residents
wishing to enjoy a night out at the movies. the business we are going to start is Arbaminch
cinema, which is help full in every aspect. Arbaminch Cinema will provide the residents of
Arba-Minch with a long-awaited, hometown movie theatre. The films shown will be second run
releases of the most popular movies in two target markets: families and young adults.
Business name: Arba-Minch Cinema
Business structure: share Sole trader
Business location: Arba Minch Town
Date established: FEB,13 ,2020
Business owner(s)
1.--------------
2.-----------------------
3.--------------------------
4…………..
5…………..
Relevant owner experience: Fourth year academic experiences
Products/services
 Prepared Fast Food and packed food
 Soft Drink
 Refreshment services
 Movies
The Cinema is located around Nechsar. It is also an average place for customer short distance
from the student’s campus, local community and it can also be give the service for the lectures
and for the others university society.
The objective of this group business is to provide good quality of service and provide
comfortable seating for its customers to view high quality movies and satisfy the need of
refreshment.
 Our potential customers are mainly Arbaminch university students,local community and
university society.
 Our pricing system is totally by cash because products individual price is very small
(between 20 - 50 birr),movie ticket (35-50birr)
1.1 Keys to Success
 Proper film selection for the audience .

 Revenues from a mix of both traditional movie fare and other quality snacks and
beverages.
 Careful management of internal finances to control costs.
 Great customer service.
2. Business Description
2.1. Brief history of the business
The Arbaminch cinema is owned and operated by our cinema shareholders and is 100% group
share of the group member.
The business is assumed to be started up to the next month and it has no working and customer
experiences before hence, the idea of opening this business is not based success and reputation
the business but due to high shortage or completely there are no cinema in the town. This
Terminal is open for business seven days a week. The average spend split between movies
beverages, food and others is:
 Beverages and foods –16%
 movies – 80%
 Others – 4%
2.2. Locations and nature of the business
This is an excellent position as there are no competitors nearby. Even if they are located around
our business place they have poor in instrument quality.
The Arbaminch cinema recreation center is Located at the center of the town. this location is
very important location for this business because it is easily accessible for all campus

community, it is aesthetically attractive and since it is a home-based business there are efficient
homes for kitchen and store.
We get this location by rental from the city management. The term of rental is based on yearly
payment of rent. The payment is based on rental per square metre and we have a deal to pay100
birr per square meter. There is no anticipated increases in rent is included in the deal. There is a
building in the location and it is included in the business. The deal for rent of the building is done
apparently and the rental is based on monthly payment of 20000 birrs including all sustainability
thing for life.
2.3 Positioning
Our Cinema is positioned in Arbaminch town at the center of the town around Nechsar (Gimash)
road and it is also put in appropriate position for all campus students and for people living in the
town.
2.4 Business Goals
 The goal of this business is to entertain the customers.

 The main goal of the business plan is to provide adequate profit for the owner of
business.
2.5 Business Objectives

 The objective of this business is to provide good quality of service and satisfy the need of
refreshment.
 Healthy sales in the first year, more than doubling by year two.
 Excellent revenues from concessions.
 Modest by stable profit margin by year two.
2.6. Description of Products and Services
The product and services are aimed to satisfy the need of customer and the product and services
are determined by interviewing the society in the town we can also know the need and shortage
of service because we are in the society.

The products and services are;

 Refreshment service
 3D movies
 7D movies
 Prepared Food and packed food
 fasting food ,
 Beverages
 Coca-Cola,
 mineral water,
 Product/Service  Description  price
 movies  any types  birr 50 average

 fasting food  burger,chips,sandwich  birr 20 average
 Soft drinks  Coca-cola,mirinda,7up,sprite,fanta,etc  Birr 15 per bottle
 Mineral water  Abyssiniya,yes,aqua-safe,aqua-  Birr 14 per 1 liter
addis,etc
 Biscuts  cappuchino, database,abuweled etc  birr 5 average
 others  chiwing-gum,POP-CORN,  vary as a product
3. Mission and Vision of the business
3.1 Mission :-
Arbaminch cinema mission is to give our customers a big city entertainment experience in a
small town. Our customers will relax in comfort and watch high-quality presentations of popular
second-run movies, all within a short walk or drive from home.
We aim to please the local community (who can wait a few weeks to see their favorite movies
and don't want to pay big city, new release prices). We will also provide our customers with
satisfying and reasonably priced snack foods and beverages & all soft drink.

In general the purposes of business are listed below:-

 Supply food and beverage for the society in good quality and in sufficient quantity.
 to entertain the peoples by providing good quality movies.
3.2 Visions :-
The main products or services to be sold or to be worked here are.

 Food preparation and packed food(fasting food ,meat etc)
 Beverages(Coca-Cola, mineral water, milk, juice e.t.c)
 Movies and refreshment service
The key to our success that will help establish a successful Arbaminch cinema are:
 Product quality - Food, coffee, tea and other beverages with a comfortable environment.
 Service - Our patrons are paying for high quality movies,
 Marketing - We will need to target our audience early and often. While the business is
located in a central and accessible location, many people will have to be re-introduced to
the Arbaminch cinema.
 Management - We maintain a firm grasps on costs, such as movie,food, beverage and
labor costs. Stock is maintained by a dedicated stock system by employee management,
and quality control is critical.
4 Market, Product and Services
4.1 Market research and analysis
4.1.1 Potential customers
 Our potential customers are mainly Arbaminch university students, local community and
others.
 In Arbaminch university around 20,000 students, 70,000 people in arba minch are
available.

 About 60 percent of our people are young (their age is between 18 and 23).due to their
age and lack of good recreational centre most students and young community have an
interest to use our cinema.
So, the potential customers are going to be familiar with our service like movies, food and
drinking service. And they will rely accepted our market.
Customers are highly motivated by our good quality service, fair price and another factor is our
site is very favorable for young couples.
4.1.2 Market Analysis Summary
The Arbaminch cinema is located in between secha and sikalaat place called GIMASH , the
shopping and entertainment center of town. This provides easy access for every resident of Arba
minch and a viable entertainment option any night of the week. The local business community
has shown great support for a cinema since it would keep residents, and their spending money,
in the community instead of one of the surrounding communities. A typical family (there are
about 70,000 people in arba minch ) can expect to save their money for a night out at the movies
by coming to a local theatre and cinema. This savings, along with quality movie selection, should
keep people coming back regularly.
4.2 Market Segmentation
Families - this segment focuses on adults and parents with younger children who don't need to
see the latest movies on release and seek an inexpensive, quality, family-oriented
entertainment experience.
Young adults - this segment is comprised of the 16-24 year old age group. This group is
interested in seeing comedy and action/adventure type movies that are not directed at the
younger and family markets.
4.3 Market position
 The products and services for this terminal are given in arbaminch town.
 Our product and service are competitive in terms of quality, price, and quantity.
Unique selling position: Our products and services have quality and less costly than others
competitors and our service like 3D,7D movies and the like .

Anticipated demand: Most costumers visit the Arbaminch cinema one time per a week or
anticipated quality and quantity of products/services customers are likely to purchase are
enough to start up our business.
Pricing strategy: The pricing system is based on first cash method because most of our
customers are student and local community.
Value to customer: Our customers are very happy and interested by start-up of this business
because these service have good quality and services are new and basic necessity
considering environmental condition
5. Organization and Management
5.1. Organizational Structure
The movies ticket for one casharies and kitchen is the responsibility of the Chef who will
manage kitchen operations including keeping it clean. The critical task of maintaining the food
inventory and
Assisting in menu development will be performed by the head chef and the two members who
are responsible for doing all the purchasing and inventory control.
The Deputy Shift Managers will assist in all areas and will be in charge when the
Shift Managers are absent.
The cleaning and waiting services will be performed by the waiters. The guards will protect the
area by two shifts.
5.1.1 Organizational chart
Business Group
Deputy Shift Managers One Head officer
Owner/Manager]
Three
waitin
g staff
Two cashier for
Guard
cinema,& one Three Assistant for
for other items coordination &
Chefs
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ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:
Table 1 List of available current staff of Arba Minch Cinema

TITLE JOB NAME SKILL OR
EXPERIENCE
Purchase and ------------------ 1 year university level
inventory control education
Shift manager …………….. 1year university level
education
Depuity manager -------------------- 1 year university level
education
Cashiery control ---------------- 1 year university level
education
Table 1 - List of Arba Minch Cinema required staff

Job tittle Quantity Required experience
in year
Ticket class 2 2
Waiter 6 1
Head chef and 2 2
assistant
Guard 2 1
5.2 Entrepreneurial team or Management/Owners
The Arba Minch Cinema is owned by the three Arbaminch Software engineering students with
all have equal share .One of the members of the business group operate a ‘hands on’ approach
doing all the purchasing and inventory control. One of them have experience to work as shift
manager, the other one members can work as deputy shift managers and work as a cashier.
The group of owner had no job experience on this type of job and also not trained for some
works inside the cinema for some service such as a chief, but they are a students in which they
have a desire and prosperity of work that are supported by four year academic performance. The
marketing function will be handled by two of group members and business consultant on market.
The accounting function will be handled by the group of owner and also there will be a meeting
every evening at the close of business.
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5.3 The personnel plan
The personnel plan for the Arba Minch Cinema and other sevice we have are planned with:
 Two Shift Managers
 Two Deputy Shift Managers
 One Head Chef
 One cashiers
 Three ticket room and Assistant Chefs
 Six Waiting staff
 Two guards
Table 3- Employee salaries of Arba Minch Cinema workers
POSITION SALARY OF MONTH/BIRR

General and shift manager 3500
deputy manager and other purchase 3500
Tichet room and casharies 2500
Head chef 2000
Assistant chef 1600
Waiting staff and guards 1200
Table 4- Personnel plan of two years
Position of duty Year one Year two

All managerial staff 5 6
Casharies and ticket 3 4
room
Head chef and 2 3
assistant
Waiters 6 8
Guard 2 2
Total people 18 23
Total payment needed 28,200 36,100
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6. Marketing and Sales Strategy

6.1. Target Market Segment Strategy
These two market segments, families and young adults, are targeted specifically because they
comprise the two largest segments of arba minch population. The Arbaminch cinema is
determined to be a community-oriented business and seeks to serve as much of the population as
possible. With a large college in town, there is an ample student market, consumers who often
have limited transportation options.
Strategy and Implementation Summary
The strategy is simple: provide fair-priced, quality entertainment close to home for the two
markets that comprise the bulk of arbaminch population.
6.2. Marketing Strategy
Arbaminch is not too large town that word gets around quickly. We anticipate that a buzz will be
created once the renovations begin. Excitement will build as the grand opening approaches. To
encourage that excitement, we will have a countdown to opening on the building's marquee.
Concurrently, advertisements in both the local newspaper and the college's daily will promote the
opening with coupons for free items from the snack bar. Since a large share of profits will come
from concessions, we want to let people know about our tasty snacks. Finally, we will use our
website to keep our customers, especially the more web salvy college students, updated on the
movie selection, which will change every two weeks.
6.3 Sales Strategy
The Arba Minch Cinema will appeal to two segments of the market:
 Adults and parents with children who seek local, fair-priced evening entertainment aimed
at the whole family.
 Young adults who are interested in seeing recent releases but are constrained by an
inability or unwillingness to travel.The main sales strategy is to provide recent successful
movie releases that appeal to both audiences. With two theatres, we will be able to target
both segments simultaneously.Ticket prices will be 50 birr for adults and 35 birr for
children under 12.
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6.3.1 Sales Forecast
Sales will increase among both target segments as word spreads around town and to the
surrounding communities. The increase in concession sales reflects the increased attendance.
Concession sales are based on an average of 25 birr spent per ticket purchase.
7 Financial Management
7.1 Financial documentation
The Financial Plan includes:
 Important Assumptions
 Start-up cost
 Profit and Loss Statement
 Cash Flow Statement
 Balance Sheet
 Break Even Analysis
7.1.1 Assumptions
 The financial plan depends on important assumptions, most of which are shown in the
following. The key underlying assumptions are: We assume a constant growth in the
economy, without major recession.
 We assume of course that there are no unforeseen changes in technology to make
equipment immediately obsolete.
 We assume access to equity capital and financing sufficient to maintain our financial plan
as shown in the tables.
7.1.2 Profit and Loss Statement
The most important assumption in the Projected Profit and Loss statement is the gross margin.
We show an adjustment increase in two Year as we exit our start-up phase of the business and
move into our expected annual sales forecast.
14 | P a g e ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

This transition shows the Arba Minch Cinema managing through its start-up period, and
gaining efficiency and customer loyalty. In summary, the Arba Minch Cinema will develop its
customer base and reputation and the growth will pick up more rapidly towards the second years
of business. Month-by-month assumptions for Profit and Loss are included in the appendices.
7.1.3 Break-even Analysis
For our First Year Break-Even Analysis, we have an average running fixed costs of 58,200 birr
per month which includes our full payroll, rent, and utilities, and an estimation of other running
cost. Note : this not include material buying and other amount of movies at first year.
8. Appendices
Starting up of 2019 our Arba Minch Cinema
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START-UP COSTS cost( in birr) EQUIPMENT/CAPITAL COSTS Cost ($)

Registrations ETB 200.00 Business purchase price ETB100.00
Business name ETB 500.00 Franchise fees ETB500.00
Licences ETB 1,000.00 Start-up capital ETB500,000.00
Plant &
Domain names ETB 500.00 Plant & equipment equipment
Trade marks/designs/patents ETB 2,000.00 Computer equipment ETB2,500.00
Membership fees ETB 200.00 Phones ETB500.00
Accountant fees ETB 100.00 Fax machine ETB1,000.00
Solicitor fees ETB 100.00 More… ETB500.00
Rental lease cost (Rent advance/deposit) ETB 7,000.00 Security system
Stock/raw materials ETB 5,000.00 Office equipment
Insurance Furniture ETB3,000.00
Product liabeility ETB 500.00 Shop fitout ETB5,000.00
Professional indemnity ETB 500.00 More… ETB2,000.00
Workers compensation ETB 20,000.00
Business assets ETB 1,000.00
Business revenue ETB 500.00
More… Total equipment/capital costs ETB515,100.00
Total start-up costs ETB 39,100.00
16 | P a g e ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

Arbaminch Cinema
17 | P a g e
18 | P a g e
Break even analysis
We refer the following as a reference

 Our lecture note
 Google business sample
19 | P a g e

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Entrepreneur Business plan

1|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

1.1 Keys to Success......................................................................................................................5

2.1. Brief history of the business..................................................................................................5

2.2. Locations and nature of the business....................................................................................5

2.4 Business Goals.......................................................................................................................6

2.6. Description of Products and Services...............................................................................................6

3. Mission and Vision of the business.........................................................................................7

3.2 Visions :-................................................................................................................................8

4 Market, Product and Services...............................................................................................................8

4.1 Market research and analysis............................................................................................................8

4.1.1 Potential customers.............................................................................................................8

4.1.2 Market Analysis Summary..................................................................................................9

4.2 Market Segmentation.............................................................................................................9

4.3 Market position......................................................................................................................9

5. Organization and Management..........................................................................................................10

5.1. Organizational Structure.................................................................................................................10

5.1.1 Organizational chart.........................................................................................................10

5.2 Entrepreneurial team or Management/Owners.............................................................................11

5.3 The personnel plan...............................................................................................................12

6. Marketing and Sales Strategy................................................................................................13

2|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

6.1. Target Market Segment Strategy........................................................................................13

6.2. Marketing Strategy..............................................................................................................13

6.3 Sales Strategy.......................................................................................................................13

6.3.1 Sales Forecast...............................................................................................................14

7.1 Financial documentation...................................................................................................................14

7.1.2 Profit and Loss Statement.................................................................................................14

7.1.3 Break-even Analysis.........................................................................................................15

3|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

Business name: Arba-Minch Cinema

Business structure: share Sole trader

Business location: Arba Minch Town

Date established: FEB,13 ,2020

Relevant owner experience: Fourth year academic experiences

1.1 Keys to Success

 Proper film selection for the audience .

2.2. Locations and nature of the business

5|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

 The goal of this business is to entertain the customers.

2.5 Business Objectives

2.6. Description of Products and Services

6|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

The products and services are;

 Product/Service  Description  price

 movies  any types  birr 50 average

3. Mission and Vision of the business

7|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

In general the purposes of business are listed below:-

The main products or services to be sold or to be worked here are.

4 Market, Product and Services

4.1 Market research and analysis

4.1.1 Potential customers

8|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

9|Page ENTREPRENEURIAL SMALL BUSINESS PLANNING BY:

5. Organization and Management

5.1. Organizational Structure

Shift Managers are absent.

Table 1 List of available current staff of Arba Minch Cinema

Table 1 - List of Arba Minch Cinema required staff

5.2 Entrepreneurial team or Management/Owners

5.3 The personnel plan