Eyoba

JIMMA UNIVERSITY
JIMMA INSTITUTE OF TECHNOLOGYSCHOOL OF CHEMICAL ENGINEERING
BUSINESS PLANTO ESTABILISH JUICE PROCESSING ENTREPRISE IN JIMMASubmitted by:-
Peer group 2A
Submitted to:
Mr.Muluken .EGROUP MEMEBERS Name ID NO
1. Lidya Abdisa……………………………………………..04727
/06
2. Shimalis Nemera……………………………………………RT4754/07
3. Sisay
Fanta………………………………………………
.05092/06
4. Teshome Mosisa………………………………………….….05177/06
5. Tsion Aseffa…………………………………………….....05221/06
May 15th, 2018Jimma, Oromia, Ethiopia
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Business plan done on juice processing enterprise Page i
Table of Contents
Contents
page no
EXCUTIVE SUMMARY ....................................................................................................................... 1
CHAPTER ONE ........................................................................................................................... 41. COMPANY

OVERVIEW ....................................................................................................... 4
1.1 INTRODUCTION .............................................................................................................................. 41.2 COMPANY VISION

STATEMENT ................................................................................................. 41.3. Goals Of The
Company ..................................................................................................................... 41.3.1. Short Term Goals
........................................................................................................................ 4
1.3.2. Long Term Goals
........................................................................................................................ 4
1.4. Company Mission Statement ............................................................................................................. 5
CHAPTER TWO ........................................................................................................................................ 62.MARKETING

PLAN .............................................................................................................................. 6
2.2.1 Competitive Advantage

................................................................................................................... 7
2.4. INDUSTURY ANALYSES ............................................................................................................... 82.4.1 Description of Market Plan

Place .................................................................................................... 82.4.2 Office Equipment
............................................................................................................................. 9
2.4.3 Industry Forecast
............................................................................................................................ 10
2.4.4 Market Segmentation
..................................................................................................................... 10
2.5 Demand and Supply Analysis
........................................................................................................... 10
2.6 Pricing Strategy
................................................................................................................................. 11
2.7 Distribution Strategy
......................................................................................................................... 11
2.8 Promotion Strategy
........................................................................................................................... 11
2.9 Sales Plan
......................................................................................................................................... 11CHAPTER
THREE .............................................................................................................................. 123. PRODUCTION
PLAN ..................................................................................................................... 12
3.2 Startup Capital
.................................................................................................................................. 13
Salary Expense
........................................................................................................................................ 14
3.2.1 Miscellaneous Expense
.................................................................................................................. 14
3.2.2 Depreciation Expense
.................................................................................................................... 15
3.3 Sources of Start-Up Capital
.............................................................................................................. 15
Business plan done on juice processing enterprise Page ii
CHAPTER FOUR ..................................................................................................................................... 164. ORGANIZATIONAL AND

MANAGEMENT PLAN ...................................................................... 16
4.1 Form of Ownership
........................................................................................................................... 16
4.2 Roles and Responsibility of Members of the Organization
.............................................................. 16CHAPTER
FIVE ...................................................................................................................................... 185.FINANCIAL
PLAN ............................................................................................................................... 18
5.1 Cash flow Analysis
........................................................................................................................... 18
Reference
.................................................................................................................................................. 22

Business plan done on juice processing entreprise Page 1
EXCUTIVE SUMMARY
Fruit juice processing enterprise business will be run as partnership. Juice providing enterpriseswill provide its product at market price
by identifying and listing each type of fruit juice withtheir fair prices. The price is affordable should not annoy or exploit customers So
that customersare willing to pay. These enterprise offer high quality juice for customers.The main objective of the business is to
provide quality of juice in order to get the
expected profit and to satisfy the customers, have a claim to create job opportunity, providingcomplementary and with fruit juice and
plans to expand the business in different area and also toexpand the initial business in size. The main job in this business is purchasing
and processingquality juice, preparing warehouse to store the product, monitoring and auditing sales of business.The overall and
general objectives of the business are mainly to achieve and exceed salesforecasts to enable the business to be operating at capacity,
so that the business extended thetypes of fruit juice that enables the business to meet the customers need. In the beginning yearthe
business forecast some profit. In the second year and third year we expect that there will beincrement of profit due to further
increases in the number of customers and get acceptance.
NAME AND ADDRESS OF THE BUSINESS
Name of the enterprise is fruit juice processing. The reason that we assigned this name to the business is to show the concern for

the eastern part of our country fruit production and as the sunrises at the east and gives light for the entire world, our enterprise
products also marketing allover our country and even for exporting purposes of all over the world. Fruit juice processing islocated in
Jimma town.
NATURE OF THE COMPANY
fruit juice processing, providing enterprise is established to overcome the absence of such typeof fruit juice center in this area. This
business center provides different juice for Jimma townsociety and Jimma university society. As the name of the business center
indicates the initial
•
3. 4 Assessment of Risks
focuses on providing different types of high quality of different fruit juice to the people whocome to this Bella Shake fruit juice
processing.It serves as entertainment area for community especially for University student and it alsocontribute for the development
of Jimma town. Basically this business is believed to reduceunemployment by creating job opportunity for many people.
KEY SUCCESS
The followings are the key success of this business plan:-

1. It uses various types of promotional, or inducement mechanism to attract othercustomers2. Continuous monitoring of our service
and expense.3. It is by society for society! Provide affordable cost with high quality.4. by reducing expenditure cost of
transportation for the customers.5. Satisfying customer interests by providing quality service6. The presence of good market price due
to the weakness of competitor in the area.7. There are many customers, because there is no other provider that gives this service.8. It
gives service for long hour.
STATEMENT OF FINANCIAL NEED
The business requires means of acquiring this initial capital by borrowing from financialinstitution like: banks, personal capital, and
micro finance institution. This fruit juice processing provides enterprise planned to construct and establish a company with capital of
300,000 Birr.
STATEMENT OF CONFIDETIALITY OF REPORT
The primary purpose of this business plan is to provide qualitative and quantitative amount ofvarious types of fruit juice at affordable
price. Owners of fruit juice processing, spendsknowledge, money, time, resources, and experience to prepare business plan. For this
reason theowner have to have the patent right in order to protect the business plan which is the result ofall share holder effort for this
reason should not be transferred or copied to another individual orcompany. If anyone refuse to accept this, the owners have right to
accuse individual or the
company to bring them in front of the law. “All Rights are reserved”
It is known that many types of business implements in each and every aspect of our area and thiscomes with interaction of different
countries in all aspects of socio-economic and culturaldogmatism with the beginning of this fruit juice processing. This is because of
comfort ability ofvarious kinds of environment which assist or help people to lead their life in a good manner andencourage a main
accent in standard of excellence in their life as well.
•
......................................................................
CHAPTER ONE1. COMPANY OVERVIEW
1.1 INTRODUCTION
Fruit juice processing enterprises has special roles for its customers.it serve the customers by providing quality of fruit juice. Come up
with new service which is not available previously.
1.2 COMPANY VISION STATEMENT
To solve the shortage of fruit juice service as well as to promote our businessinternationally by providing a good quality of fruit juice.
1.3. Goals Of The Company
1.3.1. Short Term Goals
1.
To increase consumption of fruit juice by giving awareness2.
Promoting our business3.
Increasing quality of juice regularly4.
Increasing profit5.
To provide work for all members6.
To create job opportunity for local people7.
To raise the life standard of the members by paying them a good salary
1.3.2. Long Term Goals
1. To export juice to foreign country2. To increase the number of customers in the local as well as International3. To buy modernized
fruit juice processing machine
4. To expand our business to other places5. To increase the number of employee6. To own wide fruit production farm
1.4. COMPANY MISSION STATEMENT
Our company has the following mission.1. Adopting to the dynamic environment throughout the operation2. Providing entertainment
service for customers who are in different age level.3. Providing qualitative living style to its workers2. Supplying high quality fruit juice
which is good for healthy, vitamins and strengthsuitable for bodies.
•
.................................................. 15
CHAPTER TWO2. MARKETING PLAN
2.1 Description of the product
Juice is one type of drinking, wich is used as the food forn human being.it is produced indifferent place with different mechanism.most
of the time the juice used in our country isimported from foreign countries. However, this product wich is imported from differnt
countriesis didnot satisfy the need of our nations. So,sice the best raw materials for production of
this products are available aboundantly in our countries, we are beagered to estabilish this small business enterprise in jimma town.
Properties of this juice,it has
Semisolid phasePleasant flavourDifferent colour respective to its raw material
Uses of this product
It uses as the foodIt referesh our mindsIt builds our bodiesIt prevent differen t disease from our bodiesIt protects our healthy system
2.2 Analyses Of Competitors
Even if there is no known f

ruit juice processing in this area, there are some competitors’ who
competes with us. Fruit juice processing business is well known and has good profit in other place. But in our area it is not recognized
this much.
•
•
Some of our direct competitor’s area
1. Jimma town super market and retailers
Our indirect competitors are
Restaurant service in Jimma town,Expansion of recreational lounge
The strength of our competitors is
They have high initial capital
They have enough man power,
They have enough space for producing large number of fruit juice products.
Their weakness


They do not respect their customers
They provide poor quality
Their service of time is limited
2.2.1 Competitive Advantage
The competitive advantages of our business are listed in the following manner
Proximity to suppliers
Initiated workers
We provide quality fruit juice for our customers better than our competitors
Our business entertain customers who are in different age level


It address customers need with lower price.
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2.3
Customer Analyses
Our target customers are
The Jimma university society
Jimma town society


Jimma fruit juice distributors
2.4.
Industry Analyses
2.4.1 Description of Market Plan Place
The brand of the business is designed to be fruit juice processing providing enterprise; it isnamed so because its name and the service
it gives are much more related and attractive. Since itis natural product the people are willing to use the service. The location of the
business isOromia regional state,Jimma town.The fruit juice business enterprise provides fruit from Jimma,and local market.This
product is sold to customer around the Jimma town, Jimma University and to other places.This product also sold to small enterprise
found around its environment. The product of our business is fruit juice product.In order to accomplish the service effectively and
efficiently our business hires workers based onthe following criteria.
Educational level
Age
Ability
Experience

Health
ConductThe location is preferred for the following
Different types of raw materials are available
Weather condition is comfortable.
The transportation cost is less.
There is no such business enterprise around this area.
There are many customers for the service.

2.4.2 Office Equipment
The materials needed would be:
Chair
Pulpier
Balance
Refrigerator
Shelf
Stainless steel knife

Spoon
Fork
Juice processing equipment
Glasses with different size and design
Chopping board
Table
Jar(bottle)The materials mentioned above will be purchased. The special ability of the manager todominate or have complete power
on others is that he/ she can communicate with others,understand technical problem, persistent, self-confident and have good
conduct. The businessmanager should be experienced at least in business and should have knowledge ofentrepreneurship.The
motivational to start this new business is


To change previous work experience in to business.
Financial incentive.
To reduce unemployment.
Desire for independency.
Desire to exploit opportunity.
2.4.3 Industry Forecast
We predict that in future our business will be expanded and will have many branches indifferent places. In the case it will increase the
number of customer and this is the causefor the development of the enterprise itself. There is no doubt that the people need
torecreate themselves. Because recreation is basic human need. Bella Shake fruit juice processing is a place to recreate peoples, so this
type of business is going to expand in thecoming year at increasing rate. For this reason our business paves the way for those whowant
job opportunity for the society surrounding Jimma town. For those who came fromanother place it is serving as entertainment area.
2.4.4 Market Segmentation
Actually the business enterprise is not limited to local market or internal market ratherthan external market. So our fruit juice
processing is comfortable to export to othercountries. They are profit oriented, gradually involves in the production of different fruit
2.5 Demand and Supply Analysis
We have to measure the daily, weekly, monthly and yearly consumptions of the customer andcompare with our products. By carrying
out this process we can balance demand andsupply.Most of the time demand and supply do not balance each other. To balance Supply
withdemand we must do a continuous asessment on the number of our customer. We must identifythe primary need of our
customers.
2.6 Pricing Strategy
Actually the price of our product is not below the market price; as a result, fruit juice providing business enterprise
set the price of juice as the markets that are it fluctuates over the time withmarket price. The basis for our fruit juice prices is the
market price and cost-benefit analysis.Even if our competitors have no so much strength, we can reduce our price in order to attract
andget our customers attention; as a result we can increase our profit from large number ofcustomers.
2.7 Distribution Strategy
The distribution of the our fruit juice processing to consumers can be distributed in differentways. Like: direct deliv
ery to consumer’s house
, Retail services. Because we will get more profit by this mechanism rather than wholesales.
2.8 Promotion Strategy
Our promotion strategies are applied using the following methods:-
Notice
Sponsorship for short radio programs


News paper
Business card
2.9 Sales Plan
The sale of fruit juice is expected to be calculated daily the price of each type of juice we take is17 birr per one packed juice, and on
average we have estimated that 5000 packed juice will besuplied per month, hence the approximation of the revenue will be 85,000
birr per month.
CHAPTER THREE3. PRODUCTION PLAN
3.1
Production Process
3.2 Investment Cost
The aim of the business is to provide high quality and quantity fruit juice in order to get the predicted gain and to satisfy
this business is fully responsible for all part of the operation. Thefirst starting point of the business is identifying the need of
consumers, and then supplying this
product with minimum cost that doesn’t heart any one. The equipment and facilities needed for
this business is needed is mentioned as the below.Generally the cost of business activity includes the following.

Cost for telephone
Cost for labor force
Cost for license
Cost for different raw fruit
Cost for house rent
Cost for water
Cost for electric powerBasic Equipment needed is:


Fruit pulpier
Processing equipment
Raw fruitt
Wear (workers uniform)
3.2
Startup Capital
The supplementary financing is required to being work on site preparation, equipment purchases, and to cover expense in the first
year of operations. No Item of name Quantity Unit price Total
cost1 Handling materials 22 10 2202 Miscellaneous cost - 3,000 3,0003 Fruit pulpier 3 1,200 3,6004 Employees 10 (1500*4*12)+(500*6
*12)108,0005
Processingequipment1 6,000 6,0006 Mango fruit 5,000kg 20 100,0007 Papaya fruit 5,000kg 15 75,0008 Avocado fruit 4,000kg 10 40,00
0Total 335,820
Salary Expense
We have ten employees out of them, four permanent workers and the remaining six aretemporary workers.Each of the four
permanent workers out of the ten earns 1500birr andremaining six workers earn 500 birr per month:Total salary for workers=
(1500*4*12) + (500*6*12) =108,000birr
Total salary expense= 108,000birr
3.2.1 Miscellaneous Expense
Items Quantity Unit price Total priceAgenda book 5 10 50Electric power 200Pen 12 4 48Uniform cloth 5 50 250Telephone
60Water cost 100Total 708
3.2.2 Depreciation Expense
The fruit juice processing enterprise has some depreciation expense. And it expected to be 2000 birr.Total depreciation cost (Expenses)
= 2000birrinterest Expense= principal*interest rate=200,000*10%=20,000birr
3.3 Sources of Start-Up Capital
Additional financing has already been secured in the form of:-
The business plan is prepared to obtain funds amounting 100,000 birr.
Birr 50,000 from ourselves.
Birr 200,000 from closed relatives, government, and NGOs.

3. 4 Assessment of Risks
The predetermined or expected risks are:-Scarcity of raw fruit from farm.Damage of raw materials from car accident.Fluctuation of
market price (devaluation, inflation, deflate)Spoilage of juice.Expiration of fruit juice and contamination.Loss of income from spoiled
and expired item.Loss of customers. Natural hazardous.
CHAPTER FOUR4. ORGANIZATIONAL AND MANAGEMENT PLAN
4.1 Form of Ownership
Fruit juice processing providing business enterprises are a type of business in the form of partnership. The reasons for the selection of
this form of business are:-
Accessibility of raw materials.
Profit gained in the first time it established.
Simplicity to establish the firm.The overall operation or function of the business would be governed or administered by theowner. The
owner can be manager, and sometimes there may be needed to hire the manager fromthe outside people that can fulfill the following
criteria:
Ability to manage others.


Risk taker.
Experienced.
Have the knowledge of entrepreneurship.
Sociability.The business will contain the following members:-
Employees (Permanent and Temporary)
Owners
4.2 Roles and Responsibility of Members of the Organization
The role of the manager will be managing the overall activity of the business. That is:-
Making decision regarding the state of business in the future.


Controlling the overall activity in the business.
Evaluating the quality of the products (juice).
Making decision regarding processing.
Lift up or move up capital contribution.
4.2 Organizational Structure
The business will be managed by Mr Sisay Fanta, Mrs lidiya Abdisa and Mrs. Tsion Assefa whowill act as general manager, personnel
manager and production manager respectively.. MrTeshamE will act as marketing manager as well as treasurer. A part-time
bookkeeper/secretarywill also be hired. Four part-time workers will be hired for the operation. During peak operation,Mr shemalsi will
be expected to help in production. Delivery of the finished product to theretailers will be done by contracting outside labor when the
need arises. Being a large operation,the business will be managed in a formal and strict rules will be enforced regarding
qualitystandards and production operation.The organizational structure is depicted in the organization chart
Fig 1 for
The organizational structure of our business planGENERAL-Manager(Mr Sisay
)
persinnelManager(MissTsion
ProductionSupervisor(Miss
Lidiya)
Foreman(to be hired
workers(to behired
markating
suprvoisor(MrteshamoFinance/Treasurer(Mr shmalis)Secretary/Bookkeeper(to be hire
d)
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CHAPTER FIVE5. FINANCIAL PLAN
5.1 Cash flow Analysis
The sale of fruit juice is expected to be calculated daily the price of each type of juice we take is17 Birr per one packed juice, and on
average we have estimated that 5000 packed juice will besuplied per month, hence the approximation of the revenue will be 85,000
Birr per month.Total revenue=5000pack/month*17Birr / pack
=85,000 Birr/month
Our company will operates 10 months per year,Hence Total revenue =85,0000 Birr/month*10=
850,000Birr/year
Pro-forma income statement as of year 1
Revenue
Sales-------------------------------------------------------------------------------------850,000
Expense
Total Salary Expense-------------------------------------------------------------------108,000Interest Expense ----------------------------------------------------
---------------------20,000Miscellaneous Expense-------------------------------------------------------------------708Total Expense----------------------------
-------------------------------------------------128,708In the second year of operation it is assumed that the business will increase the provision
of juice by 5%.
Hence, Revenue =850,000+0.05*850,000=
892,500
AndPro-forma income statement of year 2
Revenue
Sales-----------------------------------------------------------------------------------------892,500
Expense
Total Salary Expense----------------------------------------------------------------------45,600Interest Expense---------------------------------------------------
-------------------------19,000Miscellaneous Expense--------------------------------------------------------------------708Total expense-----------------------
-------------------------------------------------------128,708In the third year of operation and its subsequent two years it is assumed that the
business willincreases by 20% of the second year, using full capacity at efficiency.Therefore Revenue annually=892,500+0.2*892,500=
1,071,000Birr
For the third year and subsequent two years the increament of total expenses were estimated toincrease by 5% .Hence,total
expense=128,708+0.05*128,708Birr=
135,143Birr
Cash flow
Year of investement 0 1 2 3
4 5
Total capitalinvestement cost
300,000
---
- -
Profit loss statement
Income(Revenue)(A) - 850,000 892,500 1,071,000 1,071,000
1,071,000

Cash operatingexpenses(B)- 128,708 128,708 135,143 135,143
135,143
Depereciation(c)- 2000 2000 2000
2000 2000
Total operatingexpenses(D=B+C)- 130,708 130,708 137143 137143
137143
OperatingIncome(E=A-B)- 721292 763792 935,857 935,857
935,857
Gross profit(F=E-C)- 719292 761,792 933,857 933,857
933,857
Federaltaxes(35%)(G=35%F)- 251752 266,627 327,550 327,550

327,550
Net profit aftertaxes(H=F-G)- 467,540 495,165
606,307
606,307 606,307
After tax cashflow(I=H+C)- 469,540 497,165 608,307 608,307
608,307Cumulative cash flow -300,000 169,540 666,705 1,275,012
1883319 2,491,626
Reference
1.
Entrepreneurship and small business management;DawitAyele and DawitArega; Addis Abeba2.
Entrepreneurship; Robert D. Hisrich, Michael P.Peters, Dean A. Shepherd; New Delhi3.

Entrepreneurship; Peggy Lambing, charles R. Kuehl; 2
nd
edition
4.
internet(google.com),”computer training center
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JIMMA INSTITUTE OF TECHNOLOGYSCHOOL OF CHEMICAL ENGINEERING

BUSINESS PLANTO ESTABILISH JUICE PROCESSING ENTREPRISE IN JIMMASubmitted by:-

Mr.Muluken .EGROUP MEMEBERS Name ID NO

May 15th, 2018Jimma, Oromia, Ethiopia

Trusted by over 1 million members

Start Free Trial

EXCUTIVE SUMMARY ....................................................................................................................... 1

CHAPTER ONE ........................................................................................................................... 41. COMPANY

1.1 INTRODUCTION .............................................................................................................................. 41.2 COMPANY VISION

1.3.2. Long Term Goals

1.4. Company Mission Statement ............................................................................................................. 5

CHAPTER TWO ........................................................................................................................................ 62.MARKETING

2.2.1 Competitive Advantage

2.4. INDUSTURY ANALYSES ............................................................................................................... 82.4.1 Description of Market Plan

2.4.3 Industry Forecast

2.4.4 Market Segmentation

2.5 Demand and Supply Analysis

2.6 Pricing Strategy

2.7 Distribution Strategy

2.8 Promotion Strategy

3.2 Startup Capital

3.2.2 Depreciation Expense

3.3 Sources of Start-Up Capital

CHAPTER FOUR ..................................................................................................................................... 164. ORGANIZATIONAL AND

4.1 Form of Ownership

4.2 Roles and Responsibility of Members of the Organization

5.1 Cash flow Analysis

NAME AND ADDRESS OF THE BUSINESS

Name of the enterprise is fruit juice processing. The reason that we assigned this name to the business is to show the concern for

NATURE OF THE COMPANY

The followings are the key success of this business plan:-

STATEMENT OF FINANCIAL NEED

STATEMENT OF CONFIDETIALITY OF REPORT

CHAPTER ONE1. COMPANY OVERVIEW

1.2 COMPANY VISION STATEMENT

1.3. Goals Of The Company

1.3.1. Short Term Goals

To increase consumption of fruit juice by giving awareness2.

Promoting our business3.

Increasing quality of juice regularly4.

To provide work for all members6.

To create job opportunity for local people7.

1.3.2. Long Term Goals

1.4. COMPANY MISSION STATEMENT

CHAPTER TWO2. MARKETING PLAN

2.1 Description of the product

Properties of this juice,it has

Semisolid phasePleasant flavourDifferent colour respective to its raw material

Uses of this product

2.2 Analyses Of Competitors

Even if there is no known f

Some of our direct competitor’s area

1. Jimma town super market and retailers

Our indirect competitors are

Restaurant service in Jimma town,Expansion of recreational lounge

The strength of our competitors is

They have high initial capital

They have enough man power,

They do not respect their customers

They provide poor quality

Their service of time is limited

2.2.1 Competitive Advantage

Our business entertain customers who are in different age level