YAIKOB TIRAMO CONSTRACTION

SUMMARY

- The initiative motives of the investment code and the integrative activities of
government organization changes the attitudes of the society towards economic
development through a great increase in saving. In addition to, the accessibility of
credit mechanism in the country.
- FDRE is the one in the history of Ethiopian states change that has brought such
economic mass mobilization at anywhere in the in the country without a selective
nationality views. City Hawassa is the first in the SNNPRG with endowment of
nature that shows exciting changes in infrastructures, investment development and
population density.
- The overall effects of the country movement, moreover, the development of city
Hawassa, initiates the Yaikob Tiramo Building contractor to invest in the city, his
final destination place Hawassa with the advantage of transformations plan for
private on construction industries investment. The major objective of the project is
to establish grade five construction industries with a cost incurring greater than
200,000.00 Ethiopian Birr.
- Here that, however, the organization of the owner earns some profit in the long run.
It has social concerns that any citizen has to do through which the society benefits in
the implementation of the construction industries that creates job opportunities to
the surrounding unemployed. Moreover; construction services for the development
of the country at large.
- Finally, the project appraisal treated by BCR& NPV shows positive signals to run the
project. It has no visible environmental negative impact. And also the project is
feasible and having market access.

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 YAIKOB TIRAMO CONSTRACTION

2. INTRODUCTION

2.1. GENERAL CONDITION

Our country Ethiopia as well as the south regional Government have understood the
fact that private sector investment has a key role to the development of of an individual
and the society at large through employment creation, capital formation, tax revenue
generation and the likes. With this understanding, the government has been private
investment and has been creating enabling conditions for private micro, medium and
large business to actively play their role in the economic development of the SNNPR in
particular and the nation in general. Some of these include stable political climate,
liberalized free market economy, attractive macroeconomic policies, establishment of
means of finance, attractive incentive packages for infrastructure development and the
likes. From the fact of this many service providers have been entering in many business
sectors in the country nevertheless; the construction industry sector needs huge capital
and the shortage has constrained the activities. Entrepreneurs like this has a well come
vision and needs to accomplish the vision, running family life & to support the country
development activities so the financial sector & other stakeholders’ support is very
mandatory.

The owner of this project has intended to enter in to this business after conducting a
thorough preliminary market survey coupled with the practical long year experiences
in construction works. The preliminary market search conducted by has shown that all
the demand for the envisaged construction industry as of construction works is high
and yet the supply is limited leaving huge market gap for new entrants with location
references.

In this light of the above facts the owner planned to establish the construction works
where he has experienced in city Hawassa and firmly believe that prompt supports will
be offered and also the financing of the projects will be positively considered.

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 YAIKOB TIRAMO CONSTRACTION

3. THE NEW PROJECT JUSTIFICATION

Business is always dynamic in its nature so it needs changes. Globalization &

Urbanization on the other hands increase the exchanges of technologies in the societies
and the demands of development. Construction of housing & road networks are the
major part in development especially in the urban areas that enhance other part of
development. To pay in this dynamic world as competent, there is a must of fitness in
the field of the ride the owner runs. Meanwhile; your organization could understand the
problem of finance and legal ground for that he has been facing to establish his business
to play in the development works in the need of transformation in the strategic years
and at large to support our country. It is greater than 200,000.00 eth. Birr to this
business as he needs as the feasibility shows for this he is confident and presenting the
project proposal.

4. VISION, MISSION, OBJECTIVES AND BE NEFITS OF THE PROJECT

4.1. VISION

The owner wants to see him self by establish sustainable quality outputs of
construction works with affordable costs to Hawassa and Hawassa neighbours where
advantageous entrepreneurs could reach.

4.2. MISSION

 The major mission of this business is to prepare sustainable quality outputs of

construction for Hawassa and Hawassa vicinities. That needs reasonable costs
and makes them satisfied.
 To become sample competent in the field of construction
 To employ ourselves& others & others in the business.

4.3. GOAL

Business goal is the direction where the business organization moves at the end of
the project and the goal is as follows.

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 YAIKOB TIRAMO CONSTRACTION

 Annually, earning 1,580,000 birr profit

 Creating job opportunities to 12 temporarily and 2 permanently employed
work seekers. And also there are plenty of highly temporary employments at
the time of construction project handling.
 To become economically free in the coming two years
 To build sustainable construction outputs with reasonable costs to Hawassa
peripheries.

4.4. BENEFITS OF THE BUSINESS

The movement of this business has direct and indirect benefits to its stakeholders
accordingly; there are the following benefits.

 Earnings/ profits to the owner

 It is the means of further investment
 Means of income generation to unemployed
 Means of tax revenue to government
 Developing healthy competition among competitors.

5.STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS ANALYSIS

5.1. STRENGTH

 Strong work experiences

 The presence of knowledge
 Prides and famousness in related fields
 Selected competent in the customers
 The presence of the necessary and different care and skill

5.2. WEAKNESS

 Financial shortage for business expansion

 The presence of dependency on capital & contractors

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 YAIKOB TIRAMO CONSTRACTION

5.3. OPPORTUNITIES

 Presence of relative work opportunities, residential area expansion, development

and expansion and the increment of the Hawassa city infrastructures are a good
advantage to the envisaged business
 Governmental cost for sustainable development
 The expansion of investment
 The presence of investment appreciation

5.4. THREATS

 Un alarmingly, continuous rise of capital & input price.

 The very slow growth of employment
 Mismatch of work and its payment

6. MARKETING PLAN

6.1. DEMAND ANALYSIS

Hawassa city is the seat of the south nationalities and peoples region and Sidama zone.
The city also embraces many governmental and non – governmental organizations.
Moreover; there are hospitals, higher clinics, and many educational institutions. This
situation by its self, favors for the sake of the envisaged business and many firms haven’t
simply been engaged. Such situation by itself brings about the creation of sustainable and
quality oriented enterprises in the business of construction. Moreover; the mismatch of
demand and supply, there is zonation of villages to commercial centers. In general, there is
an opportunity of competition in that there are changes of quality and price. Finally, since
there are open simplicity to establish the business.

6.2. COMPETITORS’ OVERVIEW

In the field of construction business at higher grade in a case of Hawassa city is

insignificant, many road & other huge building contractors have been not yet getting in the

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as of dwellers. Most huge construction industries will come from other vicinities specially
from Addis Ababa. But it is clearly seen that there are a lot of small and medium enterprise
engaged in the construction business due to the not that Hawassa city becomes the area of
investment, visiting and employment. These and other factors indicate that there is a need
of quality building contractors with reasonable costs. All these condition were observed
when he privately studied the demand situation from his previous experiences in this
related business. There is a greater gap b/n demand from customers and the suppliers of
the services along with the development of the as well as the region as a whole. The plan of
development and transformation set by government for creation of employment and
industrializations. But there is a risk of inflation and the speed of employment which may
affect. More or less, the situation continues so there is no threats that come through time
because; it is understood from the situation. Moreover; his long experiences in the related
business, respect to his customers and his pride given from customers will help him to
succeed the competition smoothly since there is open entrances to investors. In addition,
there is preparation of comment box which supports generally support him to pass hard
problems as trend has showed him so with the help of your organization, the society and
him so with the help of your organization, the society and him families & relatives, he is
sure that he passes with a special rank in the field of construction works.

This business has been one of those businesses which are still insignificant in a case of
Hawassa city in one way direction & wide competitions in the construction which are the
additional supply to the organization will do individually that support the project attract
those customers it is with a shortage of finance and the service is based on customers’
needs. If we get further finance and expand this business he still continues with good
performance in the business.

In general the service given compared with rivals

 He is with a good performance to run the business

 He respects the promise
 Quality is our indicative
 Strong members support in the business

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 Transparent and reasonable costs to win the business game are his bases in the
competition.

6.3. MAJOR CUSTOMERS

Customers’ differentiation and identification are the basis of business to give the service as
the need of them and to survive in the business game sustainably so there were efforts
exerted to differentiation customers, accordingly the customers of this business are as
follows Hawassa city dwelling builders, government and non-government organizations
those do infrastructures, investors, city periphery dwellers, construction contractors etc.

6.4. DEMAND MONITORING AND EVALUATION MECHANISMS

One of the methods to monitor and evaluate the business is as follows

 An assessment of national and regional condition

 Gathering customers satisfaction feedback information
 Identify the last users descriptions

Based on the present situation and the above evaluation criteria, the rising of population
growth and the expansion of industrialization and more the agriculture is hold by small
farmers in the future, the societies go to stick with industrialization so it is believable that
the need of construction becomes increased.

6.5. Market share

There are factors which need to be clearly determined by the firm who run the business
like us/ construction industries which embrace

 The capacity of rivals

 The number of rivals
 The nature of construction outs (buildings)
 Presentation system

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 YAIKOB TIRAMO CONSTRACTION

 Facilities to customers in service delivery and costs are mentioned.

As the preliminary study shows, 90% of the demand of higher level construction industries
are still not covered by business entrant even we only cover 10% from the remaining
market share. Through time we will increase our share up to 30% by expanding our
business.

7. SERVICE PROVISION PLAN

7.1. CONSTRUCTION WORKS

City Hawassa is the seat of both the SNNP region and Sidama zone. There are also many
governmental and non – governmental organizations. In addition; the development of
infrastructures and the attraction of the city Hawassa increase the numbers of investors
who need to build houses & apartments and contractors who are employed for. In general,
the rises of migrants of our business.

For all the organization customers, the firm supplies construction outputs like dwelling
houses, factories, offices, bridges, roads, etc,

8. BUSINESS STRATEGY

Quality services and efficiency care will be a vital role in promoting the image and all the
services of the organization to this end therefore, various promotion tools will be employed
to communicate with the potential clients so as to maximize the services and the profits
obtained there of. In order to achieve the envisaged service and rent plan per annum, it
would be necessary to employ various techniques and the business will be utilizing the
following marketing strategic. The unique renting proposition for the firm is that it will be
known as a caring trust worthily firm.

8.1. PROMOTION ACTIVITIES

Advertising as one of its marketing strategy and the FIRM will advertise its services
through mass media, posters, personnel selling’s, brochures, publicity, community support

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 YAIKOB TIRAMO CONSTRACTION

services, south FM radio, flying papers and letters to written to various organizations and a
total of birr 20,000 will be allocated to accomplish this task.

8.2. DIFFERENTIATION STRATEGY

To stay sustainably in the market, the business will pursue a differential strategy. It is by
servicing customers with sustainable supply and setting reasonable costs, customer
demand focus supply of construction outputs which satisfies customers, in addition to the
above strategy, firm will integrate by dealing with organization that is found in
construction industries as contractors by doing so we will win – win games.

The firm is not the first time to get in this business and no representative is assigned so it
helps him to see the need and satisfaction of customers and by which he will continue to
reach to the tip of customers serving in this business.

9. ORGANIZATION AND ITS MANAGEMENT

9.1. STAFFING / EMPLOYEES NEED/

Nothing in business is accomplished without the right numbers, qualification, and attitude
of personnel staffing, in this context it refers to the personnel that will be hired in the
organization during its operation period. The firm, therefore; has decided to hire necessary
labor forces that could carry out the entire business operation smoothly and successfully.
The total number of workers shall be 12 out of which two permanent and the rest are
contractual basis.

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 YAIKOB TIRAMO CONSTRACTION

Their salaries and number and professions are given below in the table.

s/n Title No Monthly salary Annual salary

1 Manager 1 6000 72,000
2 Professional engineer 1 6000 72,000
3 Clerk 1 1500 18,000
4 Construction foremen 2 3500 84,000
5 Drivers 2 2000 48,000
6 Cashier 1 1000 12,000
7 Janitor 2 800 19,200
8 cleaner 1 800 9,600
8 Guard 2 800 19,200
Total 12 354,000

9.2. ORGANIZATIONAL STRUCTURE

This business is not as such a complicated business entity and hence it requires a very
simplified structure with the manager on the top and other workers under her/his.
Nevertheless there shall be amendments where and when the objective situation requires
so, because flexibility has now become the norm of this day to serve customers in a
customized way.

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10. FINANCIAL PLAN

10.1. DIRECT COST

Custom duty free construction machineries cost estimation

S/N Description Remarks

1 Fixed cost
Dam truck 1,500,000 00
Pick up 1,000,000 00
Compactor 16,000 00
Vibrator 14,300 00
Mixer 65,000 00
Sub total 2,595,300 00
2 Other expense
License 602 00
Sub total 602 00
General total 2,595,902 00

OFFICE FURNITURE COST

S/no Descriptions Unit Amount Unit cost Total cost
1 Table No 1 1,200 1,200
2 Shelf No 1 1,500 1,500
3 Chairs No 5 200 1,000
4 Calculating machine No 1 1500 1,500
5 File cabinet No 1 1,500 1,500
6 Cash box No 1 5,00 5,000
11,700

10.2. INITIAL WORKING CAPITAL

Most the time entrepreneur couldn’t convert their assets to cash when they are facing
shortage of operating costs in their businesses. These conditions bring about the failure of
many micro and small enterprises. But entrepreneurs, who have adequate knowledge of
their working capital management in the previous businesses, trusting that respectable
organization shall provide adequate financial support has already assigned amount in
order to meet obligation when they fall due so that the business can survive adverse
periods and day to day operation of renting individuals and organizations continue
undisturbed.

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 YAIKOB TIRAMO CONSTRACTION

Generally, it is advisable to keep three to sex months’ salary of workers operating expenses
and certain amount of cash on hand to meet current liabilities when they fall due. Hence,
the initial working capital estimated as part of the project cost is give below.

DEPRECIATION COSTS
A straight line method has been applied to compute the depreciation cost of project which
amounts to be birr 182,700 per annum as it is described below. The life span is expected as
of ten years in which they are going to be salvaged age.

S/no Descriptions Costs % Depreciation costs

Amount
1 Machineries 2,595,902 10% 259,590.2
2 Office furniture 11,700 10% 1,170.00
Total 260,760.2

REPAIRS & MAINTENANCE, INSURANCE COSTS

S/no Descriptions Costs Depreciation costs Insurance Total
% Amount %
1 Office 11,700 2 234.00 2 234.00 234
furniture
2 Machineries 2,595,902 2 51,915 2 51,915 103,380
Total 52,152.00 52,152.00 104,304

OTHER OPERATING COSTS

S/no Cost description 1st year 2nd year 3rd year
1 Water 1,800 1980 2,178
2 Electric power 1,200 1,320 1,452
3 Telephone and postal 10,000 11,000 12,100
4 Uniform 5,000 5,500 6,050
5 Promotion 20,000 22,000 24,200
6 Housing rent 2,400 2,640 2,904
7 Fuel & lubricant 500,000 550,000 605,000
Total 540,400 594,440 653,884

NB:

 Construction machineries & furniture insurance is estimated by 2%

 Total annual costs progress is estimated by 2%

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 YAIKOB TIRAMO CONSTRACTION

INITIAL WORKING CAPITAL

N Kind of cost Project year (000)

o 1 2 3 4 5 6 7 8 9 10
1 Salary 354 361 368 376 383 391 325 398 406 415
2 Depreciation 260 265 271 276 281 287 293 298 304 310
3 Repair & maintenance 52 53 54 55 56 57 59 60 61 62
4 Insurance 52 53 54 55 56 57 59 60 61 62
5 Other operating cost 540 551 562 573 585 596 608 620 633 645
Total
1258 1283 1309 1335 1361 1388 1344 1436 1465 1494

The total initial working cost needed to run the business smoothly is about birr
1.258,000.00 birr but we don’t need the entire amount at once. We need only half of this so
that it can be circulated two or more times per year depending upon the market situation
and we trust your organization to allow us obtain the estimated amount and help us
achieve our vision.

10.3. INVESTMENT COST

The investment cost is as follows:

s/no Descriptions Costs

Direct cost for construction machineries 2,595,300
Office furniture cost 11,700.00
Project running cost (initial work capital) 20% 1,271,776
Total 3,878,766.00

SOURCE OF FINANCE

The project is planned to be financed by the investor own capital and loans from local
banks. Although the final allocation of equity and loan will depend on the outcome of
negotiation with the bank, reasonable apportionment will be an equity capital of 30% and
remain 70% to financing plan is indicated in the table below.

s/no Total amount Owner’s equity Bank loan

3,878766 1,163,629.8 2,715,136.2
100% 30% 70%

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 YAIKOB TIRAMO CONSTRACTION

BANK LOAN INSTALLMENT

The loan repayment schedule calculated is indicated in the table below.

Annual installment Interest Sum Gross loan

2,715,136.20
271,513.62 271,513.62 543,027.24 2,443,622.58
271,513.62 244,362.26 515,875.88 2,172,108.96
271,513.62 217,210.90 488,724.52 1,900,595.34
271,513.62 190,059.53 461,573.15 1,629,081.72
271,513.62 162,908.17 434,421.79 1,357,568.10
271,513.62 135,756.81 407,270.43 1,086,054.48
271,513.62 108,605.45 380,119.07 814,540.86
271,513.62 81,454.09 352,967.71 543,027.24
271,513.62 54,302.72 325,816.34 271,513.62
271,513.62 27,151.36 298,664.98

10.4. Project cost – benefit analysis

10.4.1. Operating cost

No Kind of cost Project year (000)

1 2 3 4 5 6 7 8 9 10
1 Initial working capital 1258 1283 1309 1335 1361 1388 1344 1436 1465 1494
2 Bank interest 272 244 217 190 163 136 109 82 54 27
Total 1530 1527 1526 1525 1524 1524 1453 1518 1519 1521

However; the bank interest is not changed as the installment cases, the initial working
capital will change by 2% annually on the basis of the last year.

10.4.2. Total revenue summary

The total annual revenue from construction profits are expected as 20% of the cost for the
project spent and rents of different machineries are supplied for different customers
mentioned in the marketing section.

a). Construction profit estimation

This construction industry will expect to enjoy with protects of construction:-

 For government office in lately developing areas in the region .

 For private housing buildings in urban areas especially in Hawassa city .
 Road construction from development packages of networking for socio economic
development in the region.

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 YAIKOB TIRAMO CONSTRACTION

 Industrial site buildings

Assumptions

 This firm will get one government project for school construction for a cost of 1.5
million
 There is bargaining for industrial site building project with a cost of 1.4 million birr
 Housing buildings bargaining project for 800 thousand birr cost
 8 kilo meter dry weather road construction with a cost of 4 million birr

According to the assumption above, the firm will get 6.9 million birr project annually so as
a profit estimation of 20% the firm will get 1.48 million birr profit in the first year.

b). Construction machineries rent collected

s/no Items Unit Amou Unit price Work Work 1st year 2nd year 3rd year
nt hr/day load/year
1 Dam truck No 2 1000 birr/day 8 50 days 50,000 55000 60500
2 Compactor No 2 500 birr/day 8 50 days 25,000 27500 30250
3 Mixer No 3 300 birr/day 8 50 days 15,000 16500 18150
4 Vibrator No 2 200 birr/day 8 50 days 10,000 11000 12100
5 100,000 110,000 121,000

a) Profit and loss statement

Since for the first three years are tax exempted, there is 1.48 million birr net profit
although, after the reduction of tax, the net annual profit in the fourth year is 1.1895
million birr, showing that business operation is lucrative meeting like renting &
administrative, financial expenses.

The firm will get a gross profit from the percentage profit from constructions undertaken
and rents from machineries at off time of the project.

N.B: Annual revenue is expected to grow 5% on the basis of the last year revenue.

Descriptions Years distribution in million birr

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
Construction 1.48 1.55 1.63 1.71 1.80 1.89 1.98 2.08 2.19 2.30
profit
Machineries rent 0.10 0.11 0.11 0.12 0.12 0.13 0.13 0.14 0.15 0.16
Total revenues 1.58 1.66 1.74 1.83 1.92 2.02 2.12 2.22 2.23 2.45

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The whole descriptions of revenues are as follows in the table below.

s/no Expense Year (000000) birr

descriptions 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
year Year year Year Year year year year year year
1 Revenues 2.809 2.896 2.985 3.082 3.181 3.291 3.4 3.51 3.631 3.762
2 Minus
Operating costs 1.530 1.527 1.526 1.525 1.524 1.524 1.453 1.518 1.519 1.521

3 Profit before tax

1.279 1.369 1.459 1.557 1.657 1.767 1.947 1.992 2.112 2.241
 Tax 35%
0.44765 0.47915 0.51065 0.54495 0.57995 0.61845 0.68145 0.6972 0.7392 0.78435
4 Net annual profit
0.83135 0.88985 0.94835 1.01205 1.07705 1.14855 1.26555 1.2948 1.3728 1.45665

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b. Project cash flow statement

Description Year (birr million)

0 1 2 3 4 5 6 7 8 9 10
Initial owner 1.163
equity
Bank 2.719
loan
Net income - 1.58 1.66 1.74 1.1895 1.248 1.313 1.378 1.443 1.5145 1.5925
Depreciation - 0.260 0.265 0.271 0.276 0.281 0.287 0.293 0.298 0.304 0.310
Total inflow 3.882 1.84 1.925 2.011 1.4655 1.529 1.6 1.671 1.741 1.8185 1.9025
Out flow -
repayment of
loan 0.203 0.203 0.203 0.203 0.203 0.203 0.203 0.203 0.203 0.203
Out flow of
bank interest 0.271 0.244 0.217 0.19 0.162 0.135 0.108 0.081 0.054 0.027
Investment 3.882 - - - - - - - - - -
Total outflow 3.882 0.29 0.27 0.26 0.24 1.00 0.86 0.71 0.57 0.43 0.28
Net inflow - 1.84 1.925 2.011 1.4655 1.529 1.6 1.671 1.741 1.8185 1.9025
Cumulative
cash 2.13 2.20 2.27 1.71 2.53 2.46 2.38 2.31 2.25 2.19

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11. Externalities

Social cost benefit analysis

The project of construction industry doesn’t make the society to cost, in fact invisible cost
as any particles creates. Bu when the real activities become operational, there will be a
social benefits depending up on the size of projects.

The project may benefit the surrounding society with work /job/ opportunities. Once the
activities are operational, the owner employees a minimum of 12 persons in a permanent
and temporary manner.

Environmental assessment

The project constraction is once commenced, it’s environmental impact is very

minimum/null since there is a septic tank for sewages for if there is discharges released
from destination.

12. Financial appraisal of the project

The project constriction industry must be appraised by the financial analysis results. It is
to determine the viability of the project, likewise, the financial approval of this project is
calculated by the method of benefit cost ration (BCR) & NPV. When BCR> 1 and NPV>, the
project is accepted.

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 YAIKOB TIRAMO CONSTRACTION

Net present value of the project at 10 &15 percents (000)

DF factor

DF factor

000 birr
(million

(million

(million
Benefit

benefit

NPV at

NPV at
at 10%

at 15%

15% in
Year

Cost
birr)

birr)

10%
Net
0 0 -2.048 -2.048 1 -2.048 -2.048
1 2.809 1.229 1.58 0.90909091 1.44 0.86956522 1.37391304
2 2.896 1.236 1.66 0.82644628 1.37 0.75614367 1.25519849
3 2.985 1.245 1.74 0.7513148 1.31 0.65751623 1.14407824
4 3.082 1.252 1.83 0.68301346 1.25 0.57175325 1.04630844
5 3.181 1.261 1.92 0.62092132 1.19 0.49717674 0.95457933
6 3.291 1.271 2.02 0.56447393 1.14 0.4323276 0.87330174
7 3.4 1.280 2.13 0.51315812 1.09 0.3759704 0.80036996
8 3.5 1.29 2.22 0.46650738 1.04 0.32690177 0.72572194
9 3.228 0.231 1.94 0.42409762 0.82 0.28426241 0.55090055
10 3.545 0.223 3.31 0.38554329 1.28 0.24718471 0.81917012
12 10

IRR = 15+10 (0.24718471)

IRR= 15+2.4718471

= 17.4718471

IRR = 17.47%

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 YAIKOB TIRAMO CONSTRACTION

At the opportunity cost of capital that is at the 15% interest rate, the NPV is above zero i.e.
10 million birr and hence the project proposal is accepted according to the criteria that all
projects should be accepted for NPV values greater than zero. NPV is in turns reduce above
15.47% opportunity cost of capital showing that up to that range the project work is
acceptable.

This is a discount rate which equates the present value of future cash flow with the initial
investment. As the graph shows above IRR for this project that makes NPV zero is 15.47%
and this amount are by far greater that the current interest rate (the opportunity cost of
capital) & hence the project is accepted

BCR = NPB/I

12
= = 5.86
2.048

NPV at 15% = 10 – 2.048 = 7.952

Where; B = benefit, c = cost, R = ratio, N=Net, p = present,

V= value, I = initial investment cost

Accordingly; BCR > 1 and NPV > 0 at 15% discount rate; this indicates that the project is
viable at 15% interest rate.

13. CONCLUSION AND RECOMMENDATIONS

We have seen from earlier sections that there is a huge gap in the demand and the supply
for the construction industries categories planned in this particular project. In fact with the
improvements in the living standard of the people and the growth of regional as the
national economy, the need for high class quality and standard services for various
customers shall continue to increase much more that the present state. This clearly implies
that market will not saturate in the short run due to pressure from competition and also
from lack of market demand.

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 YAIKOB TIRAMO CONSTRACTION

However; due to capital shortage & the license, the campany could no achieve my strong
ambition to do successful business. If Icould obtain support from you, I could easily solve
my problems and the operation of this business activity shall contribute its share to the
growth of the city and furthermore, it will hire 12 employees thereby helping them to
become food secure. I assure you that i am determined to show maximum effort for
collective success and firmly believe that your organization shall officer due support.

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