confidentiality Agreement

The under signed reader acknowledge that information provided by kenenisashoeprovider

business plan is confidential.as a result the agrees not disclose without theowners.
Signature………………………………………………
 
Name ………………………………………………
 
Date …………………………………………………….
 The business we are going to establish is called Kenenisa shoe. The business is goingto be setted
around Adama, Ethiopia. Kenenisa shoe will staring its operation inFebruary- 3- 2016. For
more information about Kenenisa Shoe Company please contact Mr. Yasin Jemal (Chief
executive Manager of company).
Tel: +251 910 734 147
E-mail:
The company logo
Shoe
 
2
Table of Contents
Executive Summary.........................................................................................................................4
Section one.......................................................................................................................................7
1. Description of the
venture ............................................................................................................7
.1 Mission statement ...................................................................................................................... 7
1.2 Objectives. ..................................................................................................................................
.
71.3 The Venture Products. ..............................................................................................................
. 71.4 Background of the entrepreneurs. ...........................................................................................
8
1.5 Office Equipment’s
 ....................................................................................................................
8Section two ......................................................................................................................................
......
92. Industry analysis .........................................................................................................................
.....
92.1 Overall market ..........................................................................................................................
.. 92.2 Specific market ......................................................................................................................
... 102.3 Competitor
Analysis ............................................................................................................... 112.4 Macro-
environmental influences ...........................................................................................
12Section Three ................................................................................................................................
.......
133. Development and Production ....................................................................................................
.. 133. 1 Production
process.................................................................................................................. 134.2 Resource re
quirement ..............................................................................................................
144. Marketing plan ....................................................................................................................... 1
74.1 Marketing strategy ...................................................................................................................
174.1.1 Distribution technique ..........................................................................................................
174.1.2 Pricing strategy ....................................................................................................................
.. 174.1.3 Advertisement and promotion strategies ..........................................................................
184.14 Sales forecast ....................................................................................................................... 
18Table 6 ..........................................................................................................................................
....
185. Organizational plan ................................................................................................................... 
195.1 Organizational structure ......................................................................................................... 
19
 
3Section Six ......................................................................................................................................
..... 206.1 Financial statement ...........................................................................................................
....... 206.2 Financial resource ...........................................................................................................
.........
226.3 Financial strategy ....................................................................................................................
. 227. Assessment of risk and
contingencies ..................................................................................... 238. Scheduling and milesto
ne ......................................................................................................... 239. Appendixes .................
................................................................................................................ 23
List of Table
No of table Page
1.
 
Table of Raw materials and inputs
……………………………………………14
 
2.
 
Table of Utilities and Budget annually
………………………………….....
15
3.
 
Table of
Machinery and Equipment’s……………………………………...
15
4.
 
Table of human requirement
…
……………………………………………..
16
 
5.
 
Table of sales forecast…………………………………………………………………..18
 
6.
 
Table of Projection profit and loss statement / Income statement
……
20-21
7.
 
Table of Projected cash flow
………………………………………………
..21
8.
 
Table of Projection balance sheet
…………………………………………..
22
 
 
4
Executive Summary
Since our venture manufacturing , kenenisa shoes is a business enterprise which produce amen
shoes (an outer covering for your foot that usually has a stiff bottom part called a solewith a
thicker part called a heel attached to it and upper part that covers part or all of the topof your foot
) and Upper part that covers or all of the top of your foot is produced from aleather products and
the sole of the shoes is produced from a tyre (a rubber cushion that fitsaround a wheel)
product .Why we interested in this product is the demand for shoesproduct is increasing from
time to time and the product enter into market has low durabilityand quality. Through this
innovative product we are going to get a high market share, fairprofit and continue to exist in the
market and contribute to the leather product industry.Since our venture manufacturing is
organized by six professionals with a business background, we will in a better position to
succeed.The number of participants in the shoes producing industry is increasing from time to
time.Specially, the number of Micro Enterprise producing leather product is
surprisinglyincreasing. However, these Small Micro Enterprises are not efficient and competitor
in themarket because they have lack of capital, market place and good management. The
bigproducers of this product in the market are ANBESA SHOE, PEACOCK, and
BETELEHEMetc. Since these big producers of shoes are located in Addis Ababa and their main
focus is in
the foreign market and also our business is located in Adama they can’t be our competitors.
The Leather shoe is an outer covering for the foot with a stiff sole and usually not reachingabove
the ankle. Leather shoes can be man-made synthetic type or natural leather shoes. Thenatural
leather shoes have a superior aesthetic quality due to its softness and light weight.The project is
resources based and aimed at delivering better aesthetic quality leather shoesand ultimately such
shoes substitute imports.Before the establishment of Kenenisa shoes producing business

enterprise we was looked forthe market, demand, supply, raw material and So on for six month

then we establish this business venture . The raw materials required for manufacturing of

leather shoes are upperleather, lining leather, insoles, sewing thread, eyelets, tacks, adhesive,
PVC soles, etc. Theraw materials and related inputs required for the envisaged plant are locally
available. The
 
5product that we are going to produce is to be examined and its prototype is also donestarted
from the purchase of raw materials up to its actual sale.The shoes produced locally is unable to
balance the demand so the country is obliged toimport the shoes product and this product has
lack of durability and quality as a result theconsumers are obliged to additional cost we will hope
to minimize this problem andsuccessfully penetrate the market by using the problem as good
opportunity and setminimum price and new design. Strategically, we plan to increase
manufacturing businessenterprise to share company and then diversify our product and coming
with new designadditionally sell our product to foreign market and becoming branded shoe
producers.When our company established it requires Birr 2,711,961.6 as start up. Start up capital
issubjected cost like raw materials, machinery, office equipment, human capital, rent,
utilities,and training requirement cost. The sources of financial requirements are from
family,relatives and crowd funding websites. The profit we get from this business in the first
yearof production is 15,784,429.96 and the fifth year of production is 26,045,774.38. The
Kenenisashoes producing enterprise is organized consisting five departments with one
generalmanager (chief executive manager) and management departments which have
differentresponsibilities.
It’s
 a partnership form of organization and organized by six economists in2015. All partners will
take the, management and leading role in the organization andinvolve in the administration of the
day to day affairs of the business. The partners willshare the profit according to pre agreed and
its contribution. All partners have a theoreticalknowledge on management and business concept
and also they have an experience ondifferent trade activities.
.I
 
6
 
 Section one
1. Description of the venture
Under this section we should be describe about our venture in the detail and thissection makes
our business plan meaning full and easy to understand .
1.1 Mission statement
The purpose of our business is to raising profit and creates our own business andalso satisfying
our customers by producing new and durable product with a fairprice. Our business is targeted to
customers who live around the main industrialarea, such as Addis Ababa, Adama, and Bishoftu
this makes us advantageous toextract the market.
1.2 Objectives.
The main objectives of our venture manufacturing is creating the organization, to besustainable
in the business, and increasing profitability. We have a
short term
 and
long term goals
. Our short term goal is producing the product and reaching to ourcustomer with new
products and also advertise our product using different socialmedia, banners, and exhibition
(bazaars ) and also sell our product usingAlibaba.com. This raises our sales and this result in
increasing the profitability of ourenterprise. We also have a long term goal we gone to achieve
such as merging withsmall business enterprise and other venture manufacturing enterprises
participatedin producing leather and shoes product and this makes our company
competitive,profitability, and then turns to export our product to a foreign countries.
1.3 The Venture Products.
When a new business enterprise is organized it must be come with new products oraddition to
the existing one to avoid or reduce competence comes from bigcompanies that produce a
substituted products. A Kenenisa shoe producingenterprise is comes with new products this
makes it differ from its competent firms.
 
8
We also sales our product with fair price to satisfied our customer and beingcompetitive with our
competitors.To recap, our aim are giving our customers new, durable, and fashioned productsand
then increasing the loyalty of our product.
1.4 Background of the entrepreneurs.
Mr Yasin Jamal the co-founder and executive managers of the enterprise, he is 24years old and
graduated from Addis Ababa university in economics and also he isexperienced in the whole and
retail sales shop from 2006-10. He is interested withreading different books like fiction,
philosophy, psychology, and also interested indiscussing with his friends speacialy ideas related
with business. Mr Tola Daniel, MrTemesegen. D, Mr Shewaferaw. S, Zelalem.T, Nugus.G. All
are also the co-founderof kenenisa shoes producing enterprise. They are also taking their BA in
econonicsfrom Addis Ababa University. As they are the member of managing departmentthey
are delegated to take management training in specific responsibility area.
1.5
Office Equipment’s
 
The office equipment required to run our business are computers, chair, table, andmat. The total
cost office equipment is around birr 47,500.
 
9
Section two
2. Industry analysis
2.1 Overall market
The country`s demand for leather shoe is satisfied both from local production andimports.
Ethiopia also exports a substantial amount of leather shoes to theinternational market.Domestic
production of leather shoe in the past eleven years has been fluctuatingfrom year to year but a
slight growth was starting from year 2007. The lowestproduction was 846 thousand pairs in the
year 2003 and the highest about 1.75million pairs in the year 2007--2008. In the remaining years
it was fluctuating between the two extremes. Import of leather shoe during 2007--
2011 has generallyshown a declining trend. The yearly average level of import which was about
1.9million pairs during the period 2001--2006 has sharply declined to a yearly averagelevel of
363 thousand during the recent four years of 2007-2011. Compared to theprevious yearly
averages it has decreased by about 80%. Unlike imports, export ofleather shoe has generally
shown an increasing trend.During the initial years of the data set, i.e. year 2001/02, the exported
quantity wasonly 7 thousand pairs. During the period 2003--2005 the yearly average
exportedquantity increased to 48 thousand pairs. This is almost seven fold higher comparedto the
previous two years average.A substantial growth of import is registered during the recent five
years of 2007--2011, although there were some fluctuations from year to year. During this
periodthe yearly average quantity exported has reached to about 463 thousand pairs.Compared to
the preceding three years average it is higher by more than 865% orabout nine fold. This
tremendous increase is believed to be due to the existence of awide global market and the special
attention given by the government for the exportsector. To arrive at the present demand for the
domestic and export market the
 
10
following assumptions are used. - Recent three years` average of domesticproduction plus import
and minus export is assumed to reflect the effective demandfor the year 2011. Hence, the
effective domestic demand for the year 2011 isestimated at 1.154 million (domestic production
of 1.33 million pairs plus import of284 thousand pairs minus export of 460 thousand pairs).To
arrive at the present (year 2012) effective demand a 5% growth rate is applied bytaking
year 2011 estimated demand as a base. Accordingly, current (year 2012)domestic effective
demand for leather shoe is estimated at 1.212 million pairs. Forthe export market, the recent
three years average performance, which is 460thousand pairs, is taken as the export level for the
year 2011 and then a 15% annualaverage growth rate, which is much below the observed trend
in the past, is thenapplied to arrive at the year 2012 export demand. Accordingly, current (year
2012)export effective demand for leather shoe is estimated at 529 thousand pairs.Now the
demand for leather product in local market is increasing. We are going toshare from the growing

demand for leather product especially for shoes product in both domestic and foreign

market.To recap, the growing demand increase our sales, profit, and contribute for the rateof
growth of the economy.
2.2 Specific market
The demand for leather shoes depends on the level of incomes and population
growth rates. Moreover, the product’s superior aesthetics quality feature will have a
positive effect on the level of demand. Because such a product is high valued type,major
consumers are expected to be urban dwellers and some among the ruralsociety. Considering
the above factors demand for local consumption is assumed toincrease by 5% and that of export
by 15%.The unsatisfied demand for leather shoe, both in the domestic and export market
is projected to increase from 453 thousandpairs in the year 2013 to 1.420 million pairs and 2.686
million pairs in the year 2018and 2022, respectively.

Trusted by over 1 million members

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

 
11
The place our product produced is Adama and we prefer Adama because of manyreason such the
house rent is less than Addis Ababa and also nearest city to AddisAbaba. We also have sales and
distributions shop in Adama, Bishoftu, and AddisAbaba we prefer this area because of the main
industry area of country and also ourcustomers are people live in this area. They income is
mainly from governmentorganization, plc, agriculture, and trade activities. After reaching to our
customerslive in this area we are planned to distribute other part of the country as well asforeign
market.
2.3 Competitor Analysis
The potential shoe manufacturers in Ethiopia are Anbesa Shoes Share company,Ethio-lather
Cluster, Gelila Shoe Factory, Gamba Shoe Trading &Industry, JamicaShoe Factory, Kangro
Shoe Factory, MeleseTeka Shoe Factory, Peacock Shoe Factory,Ramsie Shoe Factory, Pu Pvc
Leather Shoe and Sole Factory, Ras Dashen ShoeFactory, Tikur Abay Shoe s/c, Wallia Shoe
Factory, Park Shoe & Leather Product etc.They produce different product such as military shoe,
gentlemen shoe, ladies shoe,children shoe, etc. They sell their product both in local and foreign
market. Theaverage producing capacity of Ethiopian shoe manufacturers are 8 million pairs
andthe number of employees worked in these factories is 4000.The SWOT analysis of leather
manufacturer is as follow:
strength
 easily trainedlabour, considerable resource base.
Weaknesses:
 lack of skilled man power in leathertechnology, market intelligence, etc. lack of high
technology, lack of waste treatmentplants, low productivity, efficiency.
Opportunities
: investment opportunity, prioritysector well recognized by government, hides & skin, leather&
leather productshighly significant in the global trade, confidence of international
developmentpartners (ITC, UNIDO, USAID, CDE, CFC, DTZ, etc).
Threats:
 shortage rawmaterials, lack of organized supply collection system and high costs
ofenvironmental control.
 
12
2.4 Macro-environmental influences
Our venture uses PEST analysis. The political effect on our business enterprise
is both negative and positive effects. The positive effect is government encourage business enter
prise specially leather product industry. However, there is alsodiscouragement from government
side such as late allowance of trade licence andlack of good governance. Economically, our
product is efficient because it uses rawmaterial and man power from local market and contributes
to country by reducingunemployment and generates foreign currency. Kenenisa shoe use the
recenttechnology available in the country and come with new design and fashionedproduct. The
customers use our product is live in densely populated and industrialarea. This makes our
business enterprise profitable and advantageous.
 
13
Section Three
3. Development and Production
3. 1 Production process
Our Shoe manufacturing company has mainly four departments in which aprogressive route is
followed for producing finished shoes. These are clicking orcutting department, closing or
machining department, lasting & makingdepartments, finishing department and the shoe room.
Step one
clicking
 or cutting department
In this department, the top part of the shoe or the upper is made. The clickingoperative is given
skins of leather, mostly cow leather but not restricted to this typeof leather. Using metal strips
knives, the worker cuts out pieces of various shapes
that will take the form of “uppers”. This operation needs a high level of skill
as theexpensive leather has to be wasted at the minimum level possible. Leather may alsohave
various defects on the surface such as barbed wire scratches which needs to beavoided, so that
they are not used for the uppers.
Step two closing or machining department 
 Here the component pieces are sewn together by highly skilled machinist so as toproduce the
completed upper. The work is divided in stages. In early stages, thepieces are sewn together on
the flat machine. In the later stages, when the upper isno longer flat and has become three
dimensional, the machine called post machine isused. The sewing surface of the machine
elevated on a post to enable the operativeto sew the three dimensional upper. Various edge
treatments are also done onto theleather for giving an attractive look to the finished upper. At
this stage only, theeyelets are also inserted in order to accommodate the laces in the finished
shoes.
 
14
Step three lasting and making department
The completed uppers are molded into a shape of
foot with the help of a “last”. Last
is a plastic shape that simulates the foot shape. It is later removed from the finishedshoe to be
used further in making other shoes. Firstly, an insole to the bottom of thelast is attached. It is
only a temporary attachment. Sometimes, mostly when welted
shoes are manufactured, the insole has a rib attached to it’s under edge. The upper is
stretched and molded over the last and attached to the insole rib. After theprocedure completes
 , a “lasted shoe” is obtained.
Step four finishing department and the shoe room
The finishing of shoe depends on the material used for making it. If made of leather,the sole edge
and heel are trimmed and buffed to give a smooth finish. To give theman attractive finish and to
ensure that the edge is waterproof, they are stained,polished and waxed. The bottom of the sole is
often lightly buffed, stained andpolished and different types of patterns are marked on the
surface to give it a craftfinished look.
A “
finished shoes
“
has now been made. From show room operation, an internalsock is fitted into shoe which can be
of any length-full, half or quarter.
They usually have the manufacturer’s details or a brand name wherever applicable.
Depending on the materials used for the uppers, they are then cleaned, polished andsprayed.
Laces and any tags that might have to be attached to the shoes, such asshoes, at last, get
packaged in boxes.
4.2 Resource requirement
Table of Raw materials and inputs
Table 1
Item Raw material Quantity inm
2
/pairs/piecesPrice perm
2
/pairs/piecesTotal cost Source ofsuppliers
 
15
2. Utilities and Budget annuallyTable 2

Item Utilities

3
 
MeasurementunitYearlyconsumptionUnit priceBirrTotal cost Birr1 Water M

 150 2.5/ M
3
 3752 Electric power KWH 1000 0.4736/
KWH
 473.6Total - - - - 846.6
3.
Machinery and Equipment’s
Table
3Item Fixed asset Required units Unit cost birr Total cost birr1 Leather sewing machines 2 1,100 
2,2002 Skiving machines 1 1,500 1,5003 Post bed single needle 1 1,000 1,0004 Single needle fla
t bed 1 1,050 1,0505 Zig zig machine 1 1,000 1,000Total 6 5,650 6,7501 Upper leather 10800m
2
 15.85 171,180.00 Local market2 Lining leather 13500m
2
 10.91 147,285.00 Local market3 Insole 4500m
2
 16 72,000.00 Local market4 Rubber sole 90000 pairs 20.6 1,854,000.00 Import5
Eyelets 90000 pieces 0.1 9,000.00 Local market6 Shoe cartons 90000 pieces 1.50 135,000.00 Lo
cal marketTotal 2,388,465.00
 
16
4.
 
Human resource requirementTable of human requirementTable 4
No Authority No personsrequiredMonthly salary(birr) per personAnnual
salary(birr)1 General manager 1 2,200 26,4002 Secretary 1 900 10,8003 Administration &financ
e1 1,500 18,0004 Operatory 6 1,200 86,4005 Cashier 1 600 7,2006 Store keeper 1 800 9,6007 Se
curity 3 600 54,000Total 14 7,800 212,400

 
17
Section four
4.
 
Marketing plan4.1 Marketing strategy
In order to attain or achieved its goal and objectives our business enterprise set well-structured
marketing strategies. The main objectives of our business enterprise
is being profitable and sustained in the business for a long time and merge ourenterprise with
other enterprise producing similar or substituted product and thenmakes our business enterprise a
big share company. In order to achieve this andother objectives our business enterprise uses
extensive advertisement, psychologicalpromotion, seasoned discount, loyal brand, social media

and websites, exhibitionand bazars, different grants, word of mouth, photo, flayer, paper and

banners.
4.1.1 Distribution technique
Our product is distributed to different part of the country and mainly ourdistribution is focused
on the city located between Adama and Addis Ababa. Ourproduct place is Adama and we
distributed our product to cities between Adamaand Addis Ababa and we have three main branch
of distribution (whole and retailsales shop in Adama, Bishoftu, and Addis Ababa) we distributed
our products fromthis three main and branch shops to different part of the country. Because of
Adama-Addis high way the time and the cost of distribution is low and reached on time tothe
customers.
4.1.2 Pricing strategy
There are different manufacturing industries which produce leather shoe for thedomestic and
export market. The price for leather shoes; among others, depends onthe aesthetics quality,
comfort and durability of the product. The prices for locallyconsumed types are not as high as
compared to the export quality and in the retailmarkets it ranges from Birr 250 to Birr 450 and
averaged to Birr 350. The marketprices for export quality in some shops also range from Birr
400 to Birr 800 and the
 
18
average is Birr 600. Assuming the envisaged project to produce both for thedomestic and export
market and allowing 40 % profit margin for distributors andretailers the recommended factory
gate price is as follows.
Leather Shoe for the domestic market………….Birr 300; andLeather Shoe for the export
market……………..Birr 428.
 
4.1.3 Advertisement and promotion strategies
Our business enterprise use different techniques of promotion and advertisementsuch as social

media (Facebook, Twitter, Tango, and so on), Alibaba.com,

websites, banners, paper or photo, loyal brand, radio, TV channels, exhibition centre and bazaar, 
and so on. As the production begun other method or techniques ofpromotion will also employed.
Such as, word of mouth, discount, and so on.
4.14
 
Sales forecast
 
Table of sales forecast
Table 5
Year Pairs ofShoesQuantityproducedper yearUnit price athomemarketUnit price at exportmarket
(30%) after year 3Revenue1 1 90,000 300 - 27,000,0002 1 100,000 300 - 30,000,0003 1 110,000
300 428 37,224,0004 1 120,000 300 428 40,608,0005 1 130,000 300 428 43,992,000

 
19
Section five
5.
 
Organizational plan
Kenenisa shoe is a partnership form of business enterprise established by sixeconomics
professionals. Each partner has its own responsibility and necessaryauthorities. The enterprise
has five departments in which each department has itsown managers.
5.1 Organizational structure
Themanagementteams of acompany
Chief Executive ManagerMr Yasin JemalHumanResourceAto ZelalemT.
 
MarketingmanagerAto Shewaferaw S.
 
StoremanagerAto NegusG
 
Financial andsales manmanager AtoTola D.ProductionManagerAto TemesgenD.
 
 
20
Section Six
6.
 
Financial plan
6.1 Financial statement
6.1.1 Projection profit and loss statement / Income statementTable
62016Monthly2017Quarterly2018Quarterly2019Annual2020AnnualSales 2,250,000 7,500,00
0 9,306,000 40,608,000 43,992,000Cost ofgoods
sold199,038.75 663,462.5 729,808.75 3,184,620 3,450,005Gross profit 2,050,961.25 6,836,537.5 
8,576,191.2537,423,380 40,541,995Operating expensesWages andsalary
expense17,700 59,000 64,900 283,200 306,800Rent expense 3,000 9,000 12,000 48,000 60,000
Utilityexpense70.55 235.165 258.6825 1128.8 1222.86
Advertisingexpense
10,000 10,000
7,000 5,000 5,000Depreciationexpense(machinery)1050 1050 1050 1050 1050Miscellaneousexp
ense5,625 18,750 20,625 90,000 97,500
Total operating
37,445.55 98,035.165 105,833.6825 428,378.8 471,572.86
 Trusted by over 1 million members
Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

 
21expanses
Earnings before tax2,013,515.70 6,738,502.335 8,470,357.567
36,995,001.2 40,070,422.12Tax 708,275.70 2,363,876.442 2,966,737.5 12,948,250.42 14,024,64
7.74Net income 1,305,240 4,374,625.893 22,038,627.18 24,046,750.8
26,045,774.386.1.2 Projected cash flowTable 7.Projection cash flow2016, monthlyCash
collectionCash sale 2,250,000Total cash collection 2,250,000Cash
disbursementInvestment expense 67,500Operating expense 37,445.55Cost of goods sold 199,038
.75Total cash disbursement 303,984.3Net cash flow 1,946,015.7Beginning cash balance 16,489.
45Cash balance 1,929,526.25
 
22
6.1.3 Projection balance sheetTable 8Projection cash flow2016, monthlyCash
1,949,526.25Inventories
199,038.75Total current asset 2,128,565Long term asset 212,400Capital Investment 47,500Total
asset
2,388,465
Liability and capitalCurrent liability 0Total liability 0Capital 2,388,465Total liability and capital
2,388,4656.2 Financial resource
Our venture start-up costs are 2,711,961.6 and we got this money from our family,crowd funding
websites such as Indiegogo and Kickstarter, and relatives and thismakes our venture free from
risk of interest rate and increase the profitability of our business.
6.3 Financial strategy
The source of finance to operate this business are gotten from our family andrelatives and our
venture will planned to merge with other similar shoe producersand then the capacity of our
ventures will increase and also aimed to get additionalsource of finance by continuing operation.
Our venture will have internal control

 
23
and monitoring system and also uses trained professionals to run the managementdepartment
efficiently and reduce risk of mismanagemnt.
7.
 
Assessment of risk and contingencies
Unfortunately, there may be a failure in the business because of failure to producethe product,
problems with supplies and distribution, difficulties in raisingadditional capital. However, good
business plan have plan B or C for suchdifficulties and we also have such a plan B or C. We
have a plan B or C fordifficulties mentioned above such as good coordination of the management
group ,using social media to advertise our product ,developing our organization to sharecompany

by merging with other small business enterprise and microfinanceenterprise .To recap, selling

and distributing the product in our main and branchwhole and retail sales shop
8.
 
Scheduling and milestone
After the completion of the organizing a business in feburary,2016 the next step will be the
completion of production facilities, offices and its equipment and retail spacethen ordering of
supplies (equipment plantation) and production materials (rawmaterials). Then the next work
will be beginning the production, search of ordersand make sales and collect payment according
to their respective order.
9.
 
Appendixes 
1.
 
Photograph of product

 
24
2. Sales and profitability for cast annuallyNo Sales inunitPrice perunitCost
perunitTotal cost Per unitprofitTotal
profit1 90,000 300 120.97 10,887,773.44 179.03 16,112,226.563. The total demand for shoe was
growing at a rate of 5% in local market accordingto data collected in 2011. The total demand for
shoe in 2012 was 1,212,000 in localmarket and the total demand for shoe in 2015 is 1,454,400 in
local market and thetotal supply is 1,330,000 and we will use this gap or inequality between
supply anddemand as opportunity.4. Price listsSelling price Selling price forstudent at
discount(20%)Selling price forholidays atdiscount (15%)Selling price forcustomers ordermore
than 1000pair (30%)300 Birr 240 Birr 255 Birr 210 Birr6. Fixed resource acquisition
periodNo Machinery Quantity Acquisition period1 Leather sewing machine 2 20162 Skiving ma
chines 1 20163 Post bed single needle 1 20164 Single needle flat bed 1 20165 Zig Zig machines 
1 2016