College of computing and informatics

Department of computer science

ENTERPRENEUR SHIP Business-Plan

Name ID No
1. MIKIYAS TEKALEGN ………………………………………………………………………………..2438/12
2. ROZA GEBEYEHU …………………………………………………………………………………….2679/12

Submitted to:- Mr.YOSEF

July 8, 2022,
Table of Contents
1. Executive summery ...................................................................................................................................................... 3
2. Business objective ........................................................................................................................................................ 3
2.1 The objective of the business ..................................................................................................................................... 3
3. Form of ownership ....................................................................................................................................................... 3
4. Description of the service ............................................................................................................................................ 4
5. Plant location ............................................................................................................................................................... 4
6. Quality control ............................................................................................................................................................. 4
7. Existing and potential customers ................................................................................................................................. 5
7.1 Consumer behaviour................................................................................................................................................... 5
8. The marketing plan ...................................................................................................................................................... 6
8.1 Existing and potential competitors ............................................................................................................................. 6
8.2 Pricing ......................................................................................................................................................................... 6
8.3 Promotional strategy .................................................................................................................................................. 6
9. requirement ................................................................................................................................................................. 7
9.1 Office and related equipment requirement ............................................................................................................... 7
9.2 Man power requirement ............................................................................................................................................ 7
10. Monthly and annual expense .................................................................................................................................. 8
11. Funding source ........................................................................................................................................................ 8
12. Organizational plan .................................................................................................................................................. 8
12.1 Financial plan ............................................................................................................................................................ 9
13. Critical risks ............................................................................................................................................................ 11
 1. Executive summery

AGELGEL delivery is a new innovative delivery system that brings a new light to the
delivery industry. AGELGEL is unique in its approach of acquiring delivery persons.
Anyone that is willing to work and meets the criteria can work as a delivery person.
Similar models of this system has been applied to transportation and was successful.
AGELGEL plans to convert this supported system and bring it to food delivery. Small
food delivery services have proven that their is demand for food delivery. AGELGEL
plans to expand that business in a unique approach and outstanding performance.

2. Business objective

2.1 The objective of the business

AGELGEL delivery is aimed at conserving the time and energy that the customer
would have to exert in his/hers expense. AGELGEL delivery will try to eradicate this
inconvenience by finding other people who are willing to exert that time and energy
which was needed by the customer and through this connection AGELGEL delivery
will be able to take the customer’s wants and needs and provide their requests
efficiently.

3. Form of ownership

AGELGEL delivery is a partnership founded by 10 distinct individuals who dedicate

their up most effort to quality and customer satisfaction.

All 10 individuals are shareholders with equal share of 10% each. All individuals are
equally accountable for the company. all members have equal responsibilities and
benefits.
 4. Description of the service

AGELGEL delivery uses various platforms to reach its customers. The company will
have a website domain, an app and a phone call service in which a customer will use
one of these to contact our operatives in the main office or our servers and place
their orders, address and quality of service. The servers and the operatives will
compute this information and relay it to other people who have signed up to be a
kind of temporary employee, those people will be notified about the contact
information of the customer and the content of his orders.

In which time the temporary employee will have his own say about accepting or
declining the requests. But in the event that the request is accepted, the person will
get the orders completed and deliver them to the customer within a short amount of
time depending on their location.

5. Plant location

AGELGEL delivery will be made accessible in various locations of the city. Our
headquarters will be located around Bole sub city and our branches include Gurd
Shola Bekele mebratu building, mexico behind commenrce building Mezid Plaza,
bethel, torhayloch, ledeta, megenagna and ledeta sub city.

6. Quality control

As this business takes up a lot of man power consistency with quality will be our main
objective. The platform in which the service is requested on will have a simple survey
for reviewing and rating the customer service. The rating will be for the delivery
person which will be out of 5 points and the higher the rating the more efficient the
delivery service is and the review is for our company and for other companies ( the
restaurants and cafes) which will help to improve the service quality upon the
customer needs.
Delivery person will sign a virtual contract that makes them accountable for the safe
delivery of the food
 7. Existing and potential customers

Since our business is centered on delivery our form of communication involves our
customers to have access to the internet. So our customers are going to be in the
city. In our case we are starting in ADDIS ABABA with further plans of expansion to
other cities, these will be our potential customers .

Our customers will most likely be from age 15-40 since that is the age where most
use of internet is efficient. Our customers are most likely busy individual with access
to internet. With middle income and above.

7.1 Consumer behaviour

*Our customers will want different things depending on their income level.

But in general they will require our services to be

*fast delivery

*trust worthy

*appropriate service price

*quality delivery

*constituency
 8. The marketing plan

8.1 Existing and potential competitors

The companies involved in delivery are the restaurants themselves and most only
function in limited area and mostly close to the restaurants they are established
at.Those restaurants that do deliver their food are small in number and deliver with
high prices.

Potential competitors are most likely going to be companies that will copy the
business that we have already established. But in the case of our country business
that revolve around delivery do not exist for the time .Most existing companies are
not working on food delivery that makes our competitors very limited.

8.2 Pricing

Our pricing is going to be dependent on the distance between restaurant

and delivery spot , time of delivery and the food ordered.
from the total price our company will take 15 percent from the total
profit.We will have an initial pricing of 50 birr for the use of our service.
Prices will start to vary depending on the time and distance it takes to
delivery the food.
We will price 13 birr per KM.

8.3 Promotional strategy

Due to the nature of our business we have decided to do paid

advertisement on multiple social medias.
They are cheap and allow us to get to targeted audience. Using the
500,000 birr we have set aside for marketing We have a guaranteed 1
million views(given by social media data ) in a year and a possibility of up
to 1.5 million engagement with our adverts.
 9. requirement
9.1 Office and related equipment requirement
No Description Qty Unit price (Birr) Total price(Birr)
1 Gust chair 3 1500 4,500
2 Wi-Fi router 2 2000 4,000
3 Filling cabinet 2 4000 8,000
4 Desktop computer 10 10000 100,000

5 Business telephone 6 500 3,000

system
6 Scanning printer 1 15000 15,000

7 Headset 10 500 5,000

8 Desk 5 2000 10,000

9 Table 2 4000 8,000

10 Marketing 500,000
expensive

Total 37 64500 657,500

9.2 Man power requirement

No Description Qty Monthly Total Annual pay

pay per monthly pay
person
1 General 1 11000 11000 132000
manager
2 Marketing 1 9000 9000 108,000
manager
3 Operator 20 4000 80000 960,000

4 Accountant 3 7500 22500 270,000

total 25 31,500 122,500 1,470,000

 10. Monthly and annual expense
No Description Monthly Expense Annual
1 Salary 122500 1,470,000
2 Wi-Fi 3020 36,240
3 Office rent 25000 300,000
4 Electricity 400 4800
total 150,920 1,811,040

11.Funding source

We will start our business at a loss until enough users are available and the business
self sustains.
- each shareholder will supply 100,000birr each(1,000,000total) and we plan to
borrow another million from the bank for our stating expenses.making our total
starting capital 2 million.

12. Organizational plan

Board of directors consists of shareholders.

Board of directors
↓
General Manager
↓
Marketing manager
Accountants
phone operators

This is only for the initial stages of the company reforms will be made as
the company grows

Besides staff member's other facilitating needs will be done trough

contractual deals.
 12.1 Financial plan
Considering market inflation, debt return and other factor's. we have an estimate our increment
growth.

The following data is projected sales we plan to make for the coming years

Series 2
12

10

8
in million

0
year 1 year2 year 3 year 4
Axis Title

13. Income statement

Income statement Assumption Year 1 Year 2 Year 3 Year 3 Year 4

Revenue margin 981,120 1177344 1408608 1688928

Avg users per day 20% increase 700 840 1008 1209 1450

Marketing 500,000 birr 500,000 550,000 550,000 birr 600,000 birr

birr birr
General and 7 percent increase in 1,470,000 birr 1,572,900 1,683,003 1,797,813 1,923,659
Administrative salery

Operating expense Inflation 10% 341,040 birr 409,248 491,097 589,316 707,179

Income before tax 4,905,600 5886,720 7064064 8,472,672 10,161,600

In birr

Income after tax 3,924,480 4,709,376 5,651,251 6,578,137 8,129,280

In birr

Loan return Full payement in 1,160,000

first year

Net income 979,880 2,727,228 3,477,151 4,191,008 5,498,442

Projected cash flow(first 6 month)

January Feburary March April May june

Sales 303,200 353,200 403,200 503,200 453,200 403,200

salary 122,500 122,500 122,500 122,500 122,500 122,500

Marketing 41700 41700 41700 41700 41700 41700

Other 13125 13125 13125 13125 13125 13125

expense

Cash flow +125875 +175875 +225875 +325875 +375875 +225875

 14. Critical risks

1. sudden inflation of food products might decrease active users

2. Repeated High traffic jams can lead to low delivery rate creating DE-satisfaction
of customer and eventually loss of costumer.

3. Possible rise of a competitor with similar service and business model.

4. Possible government interference

5. Server clustering

6. Cyber attack

our company is prepared to face the above possible road blocks.most factors are out
of the companies control but all possible effort will be made so that they do not
interfere with the business. We implement high tech satellite road mapping for fast
delivery aid and our servers are protected with the latest firewalls. But cyber attacks
and possible traffic jams still exist in our country.

Appendix
Owners of the company have variety of classification in different fields.

The group is a combination of software engineers. Data scientist and a few

management majors. None of the members have previous working
experiences but all are high distinction graduates

There is a contractual agreement between the member's about the

ownership of the company
Each member is required to supply the required amount of sub capital.
Each member is required to preform at the best of their capability.
Each member has a 10% profit share.

In the case that a member wants to sell their shares.other members have
the right to buy those shares before any outsider does