Contents page

1. Executive summary...............................................................................................................................2
1.1 The over view of business...................................................................................................................2
1. Objective of the business.........................................................................................................................2
1.3 Vision of the business...........................................................................................................................3
1.4 Mission of the business...................................................................................................................3
1.5 Key success of the business.................................................................................................................3
2.1. startup capital.......................................................................................................................................4
Chart1 - start up..........................................................................................................................................6
2.2 Source of startup capital.......................................................................................................................6
2.3 Nature of the Business..........................................................................................................................7
2.4 Statement of confidentiality of report..................................................................................................7
3.2 Business forecast...................................................................................................................................8
4 Competitor analysis summary...............................................................................................................9
4.2 weaknesses of competitors...................................................................................................................9
4.3 Competitive Advantage.........................................................................................................................9
5.1 Demand and Supply analysis...............................................................................................................10
5.1.1 Pricing Strategy...............................................................................................................................10
5.4 Assessment of risk..............................................................................................................................11
6 Business analysis....................................................................................................................................11
6.1 Business assumption...........................................................................................................................13
6.2 Revenue statement............................................................................................................................13
6.3 Break even analysis.............................................................................................................................18
6.4 Conclusion...........................................................................................................................................19

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 1. Executive summary
Basic computer training center and tutorial will be run as partnership. The
business provides high quality tutorial service and basic computer skill for
customers mainly for college and university students. the payment for this service
will be determine by its profitability, affordability and willingness of the
customers to pay for what service.

Our business center is located in Ambo the main task of this business providing
high quality tutorial and basic computer training skills hiring educated and well
experienced university lecturer. The main objective of this business is providing
high quality services in order to get high profit. The claim of this business to
create good in opportunity and plan to expand the scope of business in different
areas.

Initially the business will expect to cover the internal and external cost the
business and promoting our business center. In the next subsequent year we
expect that there will be increment of profit due to further improvement in the
number of customers and get good acceptance.

In general the objective of the business is mainly to increase the no of Customers

that enable the business operating at its capacity and also to expand the type of
related services that permit the business to meet the customer need.

1.1 The over view of business

Computer training business center and tutorial has special roles for its
customers by providing quality services that we concern come up with new
service which is not available.

1. Objective of the business

 to provide work for all members
 to promote our business

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  increasing quality of service
 to raise our service at college level
 to increase the number of customers in all over the country
 To buy modern computers and increase the level of services.

1.3 Vision of the business

To see solve in accessibility of the service as well as to promote our
business service throughout the country by providing a good quality service.

1.4 Mission of the business

 providing quality service for customer
 adopting the dynamic environment through the operation

1.5 Key success of the business

In order to success the businesses we want underline the following concept
 We use various type of promotion or initiative mechanism to attract
more customers.
 Satisfying customer’s interest by providing quality service
 price
 Continuous or frequent managing or monitoring our service and
expense
 The location of the business that reduce the cost of transportation for
the customer

2 Business Summary

Basic computer training center tutorial and is located in Ambo. The reason behind
we select this place is:

 There is no more such type of business in the area

 There is high demanders of the service
 The society gives high attitude towards this service
 The society more closer to the new technology

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The name of the business basic computer training center and tutorial. the name
of our business shows that the intuition behind is giving light for those customers
in time of complex situation for the student that are ready to grasped in the class
of change their life from dark to light by providing appropriate knowledge to
build up their mind and broad their thinking capacity of our customers.

2.1. Startup capital

 The amount of money required to run the business;
House rent................................................... 2000
Office equipment......................................... 6,000
Computer..................................................... 60,000
Miscellanies expense................................... 3,000
Total start up expense......................................................... 71,000

 Startup Asset
Cash required............................. 15,600
Other current asset....................... 0
Long term asset.............................. 0
Total asset....................................... 15,600
Total requirement................................................... 86,600
 Startup funding
Startup expense to fund. ................................... 71,000
Startup asset to fund........................................... 15,600
Total fund requirement Asset

Non cash asset from startup........................................ 0

Cash requirement from startup.................................... 71,000
Additional cash raised ..................................................... 15,600
Total asset............................................................................ 86,600

Liability and capital

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 Liabilities

Long term liability..................................................... 0

Account payable........................................................ 40,500

Other current liability................................................ 0

Total liability........................................................................... 40,500

Capital

 panned investment;
Alazar Alemayehu...........................................5000
Abinet Zewdu………………...................................5000
Ali Mohammed.................................................5000
Ashenafi Nigussie...................................................5000
Andualem Abraham ............................................5000
Ulfina Gabisa ................................................5000
Additional investment.....................................0
Total planned investment...........................30,000
Loss at start up (startup expense)............. 71,000
Total capital................................................15,600
Total capital and liability............................56,100
Total funding...............................................86,600

Chart1 - start up

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 Series 1

86,600

71,000

40,500

30,000

Expense Asset Loan Member's contribution

2.2 Source of startup capital

Generally, our business require total amount of fund Birr
86,600.These funds will be generated from:-
 From each member contribution amount of Birr 30,000
 From saving and loan institution and from NGOs amount of Birr
40,500 is needed.

Roles and Responsibility of members of the Business

Responsibility Staff members
 Marketing manager………………………………… Alazar Alemayehu
 Planner and Evaluator…………………………….. Ashenafi Nigussie
 Coordinator……………………………………………… Abinet Zewdu
 Finance officer ………………………………………..
Ali Mohamed
 Teachers……………………………………………………. Moti and yonas

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2.3 Nature of the Business
This business is established in order to overcome the shortage of Tutorial service
and Basic computer skill .It serve as market center area of knowledge for
customers in that .Basically, the business is believed to address the necessary
service to our customers as well as to create job opportunity for the members
and for others.

2.4 Statement of confidentiality of report

The owner of tutorial and computer training business center spend
knowledge ,time ,money, resource and experience to prepare the business plan
because of this reason , the owner have the legal right in order to protect the
business plan which is the result of all partners effort for this reason should be
copied to another individual or partner .If any one refuse to accept this the
owners have to accuse individual or that business to bring them in front of law.
Because of “all rights are reserved!”

3. Market Analysis summary

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Basic computer training center and tutorial provide service for customers in
Ambo. The service delicate for all private and higher governmental educational
institutions. The service of our business is giving tutorial and basic computer
training for all customers.

3.1 Office Equipment needed

The materials needed are:-

 Computers
 tables
 Books
 Exercise Book
 Chairs
 Chalk
 Duster
 Lectures uniform

Those all the above mentioned materials are would be purchased.

 The motivation to start this business is :-

 To create job opportunity
 Desire to exploit the opportunity desire for independence
 For financial rewards
 To turn our hobby into reality
 Adoption of business works
 To get excess profit
 To change previous theoretical knowledge into busine

3.2 Business forecast

There is no doubt that the people need to increase their knowledge through
learning. Because knowledge is important for human beings in order to adjust
their life and be creativity.

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Brihan tutorial and computer training business is a peace or business to give
knowledge, so this type of business is going to expand its branch in different areas
in the coming

years. in this case it will increase the number of customer and this is cause for the
development of the business.
3.3 Customer analysis
Our target customers are:
 Ambo town regular students.
 Extension students.
 Preparatory students
 Basic computer training is for all.

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4. Competitor analysis summary
This type of business is profitable but not overdone, so there is no more
competitors in the area.

Our competitors are:

 Home to home tutorial providers

 Tutorial giving by university itself
 Private computer training service providers
 Internet service provider and others
 Tutorial service provides by other religious institutions
4.1 Strengths of competitor
o high initial capital
o good coordination among the members
o there are good manager in the members

4.2 weaknesses of competitors

o they provide poor quality of service
o there service of time is limited
o because of low promotional activity there are no gain
recognition by customers

4.3 Competitive Advantage

 we provide quality tutorial service of computer training for our customer

more than our competitors
 Our business is launched and experienced university lectures .this is the
main differential from our competitor.
 In addition to tutorial service we are also give basic computer training
 We delivered the service to the customers with reasonable price
 We focused on the challenged courses.

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5. Market plan analysis summary

5.1 Demand and Supply analysis

Most the time in the real market situation demand for and supply of service
does not in equilibrium conditions, due to scarcity of services. In order to
achieve the equilibrium condition we must expand tutorial and computer
training.

5.1.1 Pricing Strategy

The base for our business pricing strategy considers the market price and cost
benefit analysis. Even our competitors have so much strength we can reduce our
service price in order to attract customer attention. Consequently, we can
increase our profit from large number of customer that means concept of
economy of scale.

5.1.2 Promotional Strategy

Methods for promote customers or promotional strategies we used two
types

1. Pricing strategies

Reducing price of service

Reduce cost service

2. Non pricing strategies

 Advertising
 Notice

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  pamphlets

5.3 Service plan

Basic equipment needed is

 Raw material like, black board, chock, paper and etc.

 Teacher uniform
 Computer

The cost of business includes the following.

 Cost for license

 Cost of for advertisement and promotion
 Cost for worker motivations.

5.4 Assessment of risk

The expected risks are:

 Reduction of demand
 Inflation I.e. when inflation is occurred at higher rate it will be leads to an
increment in the salary of the teachers and also it will be leads to decline
the capacity to payment.
 The increment of raw material price
 Depreciation computer services
 Increment of house rent

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6. Business analysis
Pro-form income statement
The average monthly revenue of tutorial and computer training center will be
42,000. The revenue generated from different services like, tutorial for regular
extension student and from computer training.

Total revenue =42,000*12 =504,000

Expenses
Salary expense

We will have ten employees out the, six workers are from the members and the
rest four workers are out the members.

Each member salary is the same and remaining six earn depend on their service
contribution.

Total salary for member: 3,000 *6*12=216,000

Salary for university lecturers: 3,200*3*12=115,200

Salary for computer teacher: 3200*1*12=38,400

The salary for partners and outside employees per year.

Total salary expense=369,600

Miscellaneous Expense

Items Quantity Unit price Total price/

year

Agenda book 2 30 60
Pen/Packet 2 200 400
Teacher 2 450 900
uniform

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Telephone 1 2000 2,000
Chalk 200
Duster 4 10 40
700
Other
Total cost 4100

Depreciation expense tutorial and computer training center will have some
depreciation expense in fixed asset. Such as computer and office equipment.
Assume the present price of a computer is 6000 birr. We will expect the computer
provides for 5 year service. After 5 year the computer will depreciated and the
depreciatiation value is 2000 birr. Then the depreciation will be 400 birr in each
computer.

The total depreciation of computer =400*10=4000

To calculate the depreciation cost of table after 10 year is 7.5 birr

The total depreciation of table =7.5*1o=75

To calculate the depreciation cost of chair after 10 year is 5 birr

The total depreciation of chair =5*10 =50

Total depreciation of computer, chair and table is =4000+50+75 =4125

6.1 Business assumption

for the time being the business assume the number of its customers regarding
with the course that it provides the business assumed its customers from regular
Dire Dawa university students for different course ,for example from strength
course 70 will have gotten ,from hydraulics 60 students and from maths students
will be gotten..

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From extinction students it might be either from Ambo University those are
mainly from business and economics department. For instance from accounting
course the business will expect 70 students and from economics 60 students will
have gotten.

In addition to,the tutorial students the will expect 90 basic computer trainer
students will have gotten.

All of the above mentioned information is exhibit the amount of our customers
for the beginning

6.2 Revenue statement

No Customer Course Paym Credit Payment/month

ent/ hour/week
credit
hr
1 Regular - strength 10 2 80
students - hydraulics 10 2 80
- Maths 10 2 80
2 Extension - Accounting 15 2 120
students - Economics 15 2 120

3 Computer - BASIC 6 120

trainers Computer
skill

 Revenue from regular student

Courses total month revenue total annual revenue

Strength 70*80=5,600 12*5,600=67,200

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 Hydraulics 60*80=4,800 12*4,800=57,600

Maths 65*80=5,200 12*5,200=62,400

 Revenue from extension student

Course total month revenue total annual revenue

Accounting 70*120=8,400 12*8,400=100,800

Economics 60*120=7,200 12*7,200=86,400

 Revenue from computer trainers

Total month revenue total annual revenue

90*120=10,800 12*10,800=129,600

 Total revenue…………..=42,000…………………..=504,000
Tutorial and computer training center

Pro forma income statement at year 1

Revenue............................................................504,000

expense

Salary expense .................................................369,600

Depreciation expense......................................4125

Interest expense..............................................4950

Total service provide cost................................378,675

Gross profit ....................................................125,325

Operating expense..........................................35,000

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 Net income.....................................................90,325

In the second year of operation it is assumed that the business will increase the
provision of services revenue from 42000 to72000

Pro forma Income statement of year 2

Revenue.............. ........................................................864000

Expense

Salary expense..............................................................452,800

Depreciation expense...................................................4125

Interest expense............................................................4950

Total service provide expense ......................................412,875

Gross profit.....................................................................442,125

Operating expense..........................................................40,000

Net income.....................................................................402,125

In the third year the business assumed that the average monthly revenue will
increase from 72,000 to 92,000

Revenue=92,000*12=1,104,000

In this year we will pay our liability with its interest rate and we will opened the
next branch other city

Pro forma income statement at year 3

Revenue........ ......................................................1,104,000

Expense

Salary expense ....................................................412,800

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Depreciation expense .........................................4125

Account payable...................................................64,350

Expanding cost ...................................................80,000

Total expense ......................................................561,275

Gross profit..........................................................542,725

Operating expense ..............................................80,000

Net income .......................................................462,725

Profit percentage per year

Cash statement for year 1

Cash budget Total

Beginning cash balance .....................................79,500

Cash collected from customers ............................504,000

Total cash available for needed..........................................583,500

Total expense ......................................................413,673

Total cash needed .............................................................413,673

Cash excess/deficit.................................................................169,827

Cash flow statement for year 2

Cash budget Total

Beginning cash balance......................................169,827

Cash collected from customer............................864,000

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Total cash available for needed.......................................1,033,827

Total expense....................................................461,875

Total cash needed............................................................461,875

Cash excess/deficit........................................................571,952

Cash flow statement for year 3

Cash budget Total

Beginning cash balance......................................571,952

Cash collected from customer...........................1,104,000

Total cash available for needed.........................................167,595

Total cash needed ........................................................641,275

Cash excess/deficit........................................1,034.677

Operating balance sheet

Asset liability

Cash.................................14,600 Account payable.....................49,500

Fixed asset.......................61,000 Total liability...........................49,500

Miscellaneous expense......3000 Capital......................................30,000

House rent ........................900 Total liabilities and capital.........79,500

Total asset...........................79,500

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 6.3 Break even analysis
Break even analysis for first year
Total revenue birr 504,000

Total expense birr 378,675

Gross profit birr 125,325

Gross profit margin (GPM)

GPM=GP/REVENEU*100 24.86

Fixed cost birr 61,000

Break even turn over

Fixed cost /GPM*100 245,374.09

Break even analysis for second year

Total revenue ................................................. 864,000

Total expense.................................................. 421,875

Gross profit ................................................... 442,125

Gross profit margin (GPM)............................. 442,125/864,000*100=51.17

Fixed cost for second year ........................... 61,000

Break even turnover................................... 61,000/51.17*100=119,210

Break even gross profit margin ................... 61,000/864,000*100=7.06

Break even analysis for third year

Total revenue …………………………………………….. 1,104,000

Total expense …………………………………………… 561,275

Gross profit …………………………………………….. 542,725

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Gross profit margin (GPM) ……………………….. 542,725/1,104,000*100=49.16

Fixed cost for third year ……………………………. 111,000

Break even turn over ………………………………… 111,000/49.16*100=225,792.32

Break even gross profit …………………………….. 111,000/1,104,000*100=10.05

6.4 Conclusion Basic computer training center and tutorial will be run as
partnership. The business provides high quality tutorial service and basic
computer skill for customers mainly for college and university students. The
payment for this service will be determined by its profitability, affordability and
willingness of the customers to pay for what service.

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