SIKET MOBILE AND ACCESSORY RETAIL TRADE

Business Plan
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Owner Family Business
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Prepared by:-

November, 2020
Dire Dawa, Ethiopia
 SIKET MOBILE AND ACCESSORY RETAIL TRADE
Executive Summary
SIKET MOBILE AND ACCESSORY RETAIL TRADEis a convertible and accessible, new business
with a service after resale to helping people use a new technology mobile in essay ways with a
fair price. The business is formed as a micro enterprise to resale.
Place: Dire Dawa
Kebele: Sabian
Telephone: 09
P. O. Box: 0390
E-mail:
It is owned by seven business initiative engagements that were organized in micro enterprise so as
to pledge their time, labour, and financial resource so as to create income for them. The seven
(six men and one women) will operate the business and that relevanttraining will give to
technician and others are already profession in their position. It is expected that the business will
start its operation in the year December 10/01/2020
Owner of Siket Mobile and Accessory Retail Trade
No Position Qualifications Contribution position
1 BA degree 15,000  General Manager
2 BA degree 15,000  Seller
3 BA degree 15,000  Technical Supervisor
4 BA degree 15,000  Administrative & finance
Manager
5 BA degree 15,000  Accountant
6 BA degree 15,000  Technical Supervisor
Start-up capital:

Investment = Birr
Working capital = Birr
Total = Birr 200,000
From the total funding Birr 200,000 the owners of the enterprisebusiness contributed Birr
105,000 and the remaining Birr 95,000 will be expected to be obtained from Dire Micro
Finance as loan
 1. The Future
1.1 Vision Statement
‘’Being a Leader mobile &accessory available and provide service after sale in Dire Dawa’’
1.2 Mission Statement
Sale quality Mobile and Accessory service for the resalable at an affordable price
1.3 OBJECTIVES SIKET MOBILE AND ACCESSORY RETAIL TRADE
The business has the following basic goals in the coming twelve months of a year.
Generating ... amount of profit on average each month
Having .............market share
2. Business Idea and Market

2.1 Description of the Business Idea

SIKET MOBILE AND ACCESSORY RETAIL TRADE will engage on resale of different
kinds of mobile and it accessory that can affordable at different price for its customers. The main
expected potential customers are all individual from lower level income person to higher level
income that use mobile. All these groups of customers need quality product at a reasonable price.
This enterprise is a unique business where customers come to our Saido, Sabian location and
bought any kinds of quality and standard with its price attached on each product. In addition to
being resale in an enterprise customers can provide with maintenance service.
2.2 Description of the market
We are targeting all mobile User of Dire Dawa towns as our primary market. Sabian is the place
junction where all individual from four direction pass through, especially University student and
government employer. Due to mass movement among Dire Dawa population around Sabian
throughout the working Time, they tend to buy and take service in our shopping centre on the
main road.

The competition in this arena of Dire Dawa is the Competent rather than all other areas. Dire
Dawa is a large city, also has a lot to offer. Usually there are a minimum of four of the same
market Segment center within Dire Dawa(Ashaw, Thione, Konel and Sabian). Our main
competitors in this segment are two competitors in Sabian. In order to compete with these
established firms our business will use product/service differentiation and cost leadership
strategy. Because these firms produce and supply almost similar products/services with high
price but our firm already designed product and service ranges unique from its competitors and
render them relatively at low price.
3. Marketing Plan
3.1Product Plan
The table below shows only group of product or items sale and service delivered by the business.
The detail sale and service of the business are listed under price plan part of this business plan.

Product/Service
No Specification
Range

1 Mobile Variety of mobile with different price

2 Cover Each with different Size

3 Charger With different model of mobile

4 Memory With different Loading capacity

5 Maintenance All parts of mobile and charger

3.2Price Plan
The table following shows product or service range of the business, customers’ ability to pay,
competitors’ price, our business price, reasons for setting our price and margin for discount.

No Product/Service How much Competitors’ price Our Reasons for Margin for
are price setting our discount?
price
 customers H A L
willing
to pay?

I Mobile Average

1 Highest in price level >> 3400 3350 3300 3200

Highest in price level >> 2000 1900 1800 1600

Highest in price level >> 510 500 490 480

2 Cover >> 70 65 60 50

3 Glass >> 70 65 60 50

3 Charger >> 80 75 70 60

4 Memory >> 120 117 115 110

5 Maintenance >> 70 65 60 55

3.3 Place/Location Plan

The selected location for the business is Sabian. The reasons for choosing this location as a site
for Siket Mobile and Accessory Retail Trade are:
 Access to transportation facility
 Heavy patronage or movement of people
 Large number of shopping malls rather than other areas of Dire Dawa
3.4 Promotion Plan
We will arrange two different marketing tactics to increase customer awareness of our business.
Our most important tactic will be "word-of-mouth" and in-store marketing. The second tactic
will be local store marketing (brochures and free sample products occasionally). These will be
low-budget plans that will provide community support and awareness of our facility.
4. Marketing Strategy
As a mobile retail trade business, our main goal is to supply good quality mobile that can
affordable with excellent customer loyal and guaranty.  Our challenge as a new company is to
quickly establish a reputation for such quality among our potential markets. With this in mind,
the initial focus of our marketing strategy will be to get our name and reputation out to the
public. Creating brand recognition for our new concept will be the first measurable milestone in
our marketing strategy.
The basis for our ideology is simple; the more people that hear our name and become familiar
with our product and services, the more people will use it. The marketing campaign will involve
a targeted advertising campaign, different specials to persuade the customers to try our products
and a very intense networking campaign. All of these tactics will be used to help gain a loyal
customers aimed at fostering our happy customer base.
Therefore, by doing all this procedure, with good quality at an acceptable price in a clean and
friendly service outlet, we will be the talk of the town market.
5. Legal Form
The legal form of the business will be Cooperative Business. This form of business
organizationis selected because itenables a business to get human resource and financial facility:

 combination of various individuals skills, knowledge and abilities

 Problem solving process by exploiting views and opinions of different individuals
6. Start-Up Capital
Estimation of start-up Unit Required Unit cost Total Amount
capital
INVESTMENT
License 800 800
Display 3 5500 16,500
Table 2 500 1,000
Chair 5 350 1,750
SMD rework station 1 1200 1,200
Solder station 1 600 600
DC power 1 800 800
Thiwzzer 1 40 40
Hand sorrow driver 4 30 120
Computer 1 6000 6,000
Decoration Board 4 1000 4,000
Miscellaneous 1,000 1,000
Total Investment 33,310
WORKING CAPITAL
months of staff costs 7 1,500 10,500
months of operational 19,733 19,733
costs
Total working capital 30,233
TOTAL START-UP 63,543
CAPITAL
Specification of on month operation cost and items
OPERATION ITEM Cost
Rent Expense 6,000
Transport cost 500
 Salary Expense 10,500
Deprecation 573
Interest on Loan 950
Electric utility 200
Miscellaneous 1,000
TOTAL ACQUISITION 19,733
COSTS

VARIABLE OPERATION COST Price

Transport cost 500
Miscellaneous 1,000
TOTAL ACQUISITION 1,500
COSTS

FIXED OPERATION COST Price

Rent Expense 6,000
Salary Expense 10,500
Deprecation 573
Interest on Loan 950
Electric utility 200
TOTAL ACQUISITION COSTS 18,233

7. Sources of Start-Up Capital

Type Source Conditions Amount

Equity capital Own savings Members contribution 105,000

Partner
Loan DMF Interest bear loan (12%) 95,000
TOTAL FUNDING 200,000

From the total funding Birr 200,000the owners of the Enterprise business contributed Birr
105,000and the remaining Birr 95,000will be expected to obtain from Dire Micro Finance on
Loan with twelve’s interest rate.
 8. Business Organization and Staff
Staff Requirement
No Position No Qualification Tasks & Responsibilities in the business
required

1 General 1 BA degree in Responsible for planning, organizing, staffing,

Manager Business coordinating and controlling of overall project
management activities
2 Technical 2 Diploma or Degree in Responsible for planning, organizing and supervising
Supervisor IC and maintenance maintenance

3 Administrative 1 Diploma in Responsible for planning, organizing, coordinating

 & finance accounting or
Manager purchasing or
marketing
4 Accountant 1 Responsible to maintain financial data and prepare

5 Purchasing & 1 Responsible to manage materials of the enterprise and

coordinator purchasing

6 Seller 1

Planned organization chart

General
Manager

Admin.&
Purchaser Technical
Human
Sale and Accountant supporter
resource
coordinator Staff Costs Mgt
s/n Position Qualifications Salary per Total staff
month cost
1 HinsneBegna Ba degree 1,500 1,500
2 Helen Dereje Ba degree 1,500 1,500
3 DagimTaye Ba degree 1,500 1,500
4 YonasMulugeta Ba degree 1,500 1,500
6 TeshomeAdene Ba degree 1,500 1,500
7 AschalwKetema Ba degree 1,500 1,500
 9. Business Operation and Cost Plan
Monthly Sales Plan and service fee
Months of the Year
Products 1st quarter 2st quarter 3st quarter 4st quarter
No
Total
1 2 3 4 5 6 7 8 9 10 11 12

Q 5 8 10 14 17 20 25 28 30 40 45 50 292
Mobile
1 S/U 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200
Highest price
TS 16,000 25,600 32,000 44,800 54,400 64,000 80,000 89,600 96,000 128,000 144,000 160,000 934,400

Q 6 9 12 16 20 24 28 30 36 40 50 60 331

Middle price P/U 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600

TO 9,600 14,400 19,200 25,600 32,000 38,400 44,800 48,000 57,600 64,000 80,000 96,000 529,600

Q 10 25 30 35 50 60 65 85 90 100 130 150 830

Lower price P/U 480 480 480 480 480 480 480 480 480 480 480 480

TO 4,800 12,000 14,400 16,800 24,000 28,800 31,200 40,800 43,200 48,000 62,400 72,000 398,400

Q 16 30 40 60 70 80 100 110 120 140 160 200 1,126

2 P/U 50 50 50 50 50 50 50 50 50 50 50 50
Cover
TO 800 1500 2,000 3,000 3,500 4,000 5,000 5,500 6,000 7,000 8,000 10,000 56,300
3 Glass Q 8 15 20 25 35 40 50 55 60 70 85 100 563
P/U 50 50 50 50 50 50 50 50 50 50 50 50

TO 400 750 1,000 1,250 1,750 2000 2,500 2,750 3,000 3,500 4,250 5,000 28,150
 Q 15 25 30 40 50 60 75 85 90 110 130 150 860
4 Charger P/U 60 60 60 60 60 60 60 60 60 60 60 60

TO 900 1,500 1,800 2,400 3,000 3,600 4,500 5,100 5,400 6,600 7,800 9,000 51,600
Q 16 30 40 60 70 80 100 110 120 140 160 200 1,126
5 Memory P/U 110 110 110 110 110 110 110 110 110 110 110 110

TO 1,760 3,300 4,400 6,600 7,700 8,800 11,000 12,100 13,200 15,400 17,600 22,000 123,860
Q 8 15 20 25 35 40 50 55 60 70 85 100 563
6 Earphone P/U 50 50 50 50 50 50 50 50 50 50 50 50

TO 400 750 1,000 1,250 1,750 2000 2,500 2,750 3,000 3,500 4,250 5,000 28,150
All products TO 34,660 59,800 75,800 101,700 128,100 151,600 181,500 206,600 227,400 276,000 328,300 379,000 2,150,460

Q 110 115 150 160 160 180 185 200 200 240 260 280
OTHERS OR
FROM SIDE P/U 55 55 55 55 55 55 55 55 55 55 55 55
SERVICE
TO 6,050 6,325 8,250 8,800 8,800 9,900 10,175 11,000 11,000 13,200 14,300 15,400 123,200
40,710
66,125 84,050 110,500 136,900 161,500 191,675 217,600 238,400 289,200 342,600 394,400
TOTAL REVENEUS
2,273,660
 Monthly Operational Cost Plan
Months of the Year
No
Products/Service 1 2 3 4 5 6 7 8 9 10 11 12 Total

Q 6 10 12 17 20 24 30 34 36 48 54 60 351

1 Highest price MC/U 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600

MC 15,600 26,000 31,200 44,200 52,000 62,400 78,000 88,400 93,600 124,800 140,400 156,000 912,600

Q 7 11 14 19 24 29 34 36 43 48 60 72 397

Middle price MC/U 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100

MC 7,700 12,100 15,400 20,900 26,400 31,900 36,900 34,600 37,300 42,800 56,000 69,200 386,700

Q 12 30 36 42 60 72 78 102 108 120 156 180 996

Lower price MC/U 370 370 370 370 370 370 370 370 370 370 370 370

MC 4,440 11,100 13,320 15,540 22,200 26,640 28,860 37,740 39,960 44,400 57,720 66,600 368,520

2 Q 24 36 48 72 84 96 120 132 144 168 194 240 1,358

Cover MC/U 25 25 25 25 25 25 25 25 25 25 25 25

MC 600 900 1,200 1,800 2,100 2,400 3,000 3,300 3,600 4,200 4,850 6,000 33,950

3 Q 10 18 24 30 42 48 60 66 72 84 102 120 676

Glass MC/U 25 25 25 25 25 25 25 25 25 25 25 25

MC 250 450 600 750 1,050 1,200 1,500 1,650 1,800 2,100 2,550 3,000 16,900

4 Q 18 30 36 48 60 72 90 102 108 132 156 180 1,032

Charger MC/U 30 30 30 30 30 30 30 30 30 30 30 30

MC 540 900 1,080 1,440 1,800 2,160 2,700 3,060 3,240 3,960 4,680 5,400 30,960

5 Memory Q 19 36 48 72 84 96 120 132 144 168 192 240 1,351

MC/U 100 100 100 100 100 100 100 100 100 100 100 100
 MC 1,900 3,600 4,800 7,200 8,400 9,600 12,000 13,200 14,400 16,800 19,200 24,000 135,100

Q 10 18 24 30 42 48 60 66 72 84 102 120 676

6 Earphone MC/U 40 40 40 40 40 40 40 40 40 40 40 40

MC 400 720 960 1,200 1,680 1,920 2,400 2,640 2,880 3,360 4,080 4,800 22,960

TOTAL MATERIAL COST 31,430 55,770 68,560 93,030 115,630 138,220 165,360 184,590 196,780 242,420 289,480 335,000 1,907,690

Rent expenses 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000

Salary expenses 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 126,000

Operating expenses 2,183.5 2,183.5 2,183.50 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 2,183.5 26,202

Miscellaneous expenses 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Interest on Loan 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 11,400

Total expenses 51,114 75,454 88,244 112,714 135,314 157,904 185,044 204,274 216,464 262,104 309,164 354,684 2,143,892

SIKET MOBILE AND ACCESSORY RETAIL TRADE

 Projected cash flow statement
For the Year Ended Dec 31, 2020

Items Operating Months

Pre- 1 2 3 4 5 6 7 8 9 10 11 12 Total
operation
Cash Receipts                            
Beginning Cash   166,690 156,286 146,957 148,164 145,950 147,537 151,134 157,766 171093 193038 220135 253572  
Equity 105,000                          
Loan 95,000                          
Sales   34,660 59,800 75,800 101,700 128,100 151,600 181,500 206,600 227,400 276,000 328,300 379,000  
Any other   6,050 6,325 8,250 8,800 8,800 9,900 10,175 11,000 11,000 13,200 14,300 15,400  
I: Total Cash In 200,000 207,400 222,411 231,007 258,664 282,850 309,037 342,809 375,366 409,493 482,238 562,735 647,972  

Equipment & 27,510                          

tools
Pre-operation exp 5,800                          
Stocks   31,430 55,770 68,560 93,030 115,630 138,220 165,360 184,590 196,780 242,420 289,480 335,000  
Rent expenses   6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000  

Staff salary   10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500  
expense
Operating   2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50 2,183.50  
expenses
Loan repayment 10,556 10,556 10,556 10,556 10,556 10,556 10,556 10,556 10,556
Interest bear 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267
Miscellaneous   1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000  
expenses
Tax 3,710 3,710 3,710 3,710 3,710 3,710 3,710 3,710 3,710
II. Total Cash 33,310 51,114 75,454 82,843 112,713 135,313 157,904 185,044 204,274 216,464 262,104 309,164 354,684  
Payments
End cash 166,690 156,286 146,957 148,164 145,950 147,537 151,134 157,766 171,093 193,030 220,135 253,572 293,289  
balance
 SIKETMOBILE AND ACCESSORY RETAIL TRADE
Projected Income Statement
For the Year Ended Dec 31, 2021
Sales Sales
Sales.......................................................... 2,150,460
Cost of goods sold
Beginning inventory..........................................................0
+Purchasing.................................................................1,907,690
Cost available for sale..........................................................1,907,690
-Ending inventory.........................................................614,542.5
Cost of goods sold..........................................................1,293,147.5
Gross Profit............................................................................................ 857,312.5

Expenses

Salaries......................................................126,000

Rent.........................................................72,000

Interest on loan........................................11,400

Electric utility..........................................2,400

Transport....................................................6,000

Depreciation.............................................6,876

Miscellaneous expenses ..........................22,926

Total Expenses...................................................................................... 247,602

Net Profit before Tax............................................................................609,710.5

Estimated Tax (35%)............................................................................. 213,398

Net Profit................................................396,311
 Siket Mobile and Accessory Retail Trade
Beginning Balance Sheet
December 1, 2020
ASSETS
Current Assets
Cash at bank.................................172,910

Equipment and Tools.................................27,510

TOTAL ASSETS................................................................................................... 200,000

LIABILITIES AND NET WORTH

Total liaabilities....................................................95,000

Owners’ Equity.......................................105,000

TOTAL LIABILITIES AND NET WORTH........................................................ 200,000

BREAK EVEN POINT

Sales *fixed cost =2,150,460*27,510

Sales – Variable cost 2,150,460-1500

=5,915,915,660
2148,960
Break Even Point=2,750
Information about Funding Sources
Loan
The loan will be taken from Diree Micro finance based on inters bear loan with twelve present
interest and pay back within a year. The repayments schedule is shown in the following table.
Debt Service
Repayment 1 2 3 4 5 6 7 8 9 10 11 12
Period
PRINCIPAL 10,55 10,55 10,55 10,55 10,55 10,55 10,556 10,55 10,556
6 6 6 6 6 6 6
Interest 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267 1,267
Repayment of 11,82 11,82 11,82 11,82 11,82 11,82 11,823 11,82 11,823
Sum 3 3 3 3 3 3 3