Marketing MGT Feasibility Study Dec 24,2019

DEPARTMENT OF MANAGEMENT
MBA PROGRAM
MARKETING MANAGEMENT /MBA 552/

FEASIBILITY STUDY ON COMMUTER CITY TAXI
SUBMITTED TO
DR. BUZEYE ZEGEYE,
Prepared By: ID Number
Worash Engidaw SGSE/237/12
DECEMBER 2019
DESSIE, ETHIOPIA
Worash Engidaw –Email; worash22@gmail.com
Table of Contents
1. Introduction ............................................................................................................... 1
2. Executive summary ................................................................................................... 1
2.1 Mission, vision statement & objectives: ................................................................... 1
2.2 Goals ......................................................................................................................... 2
2.3 Start-up costs ............................................................................................................. 2
2.4 Types of vehicle ........................................................................................................ 2
2.5 Company ownership.................................................................................................. 2
3. Company summary .................................................................................................. 3
3.1 Start-up summary ...................................................................................................... 3
3.2 Start-up funding ........................................................................................................ 4
3.3 Company ownership.................................................................................................. 5
4. Product & service ...................................................................................................... 5
4.1 Business model.......................................................................................................... 5
4.2 Potential travellers ..................................................................................................... 5
4.3 Other potential travellers ........................................................................................... 5
4.4 Current and potential competitors ............................................................................. 5
5. Market analysis summery ......................................................................................... 5
4.1 Market segment ......................................................................................................... 6
5 Strategy and implementation summary..................................................................... 6
5.1 Swot analysis ............................................................................................................. 6
5.1.1 Strengths .................................................................................................................... 6
5.1.2 Weaknesses ............................................................................................................... 6
5.1.3 Opportunities ............................................................................................................. 7
5.1.4 Threats ....................................................................................................................... 7
5.2 Competitive edge ...................................................................................................... 7
5.3 Pricing ....................................................................................................................... 7
5.4 Percentage of passengers who don‟t carry luggage .................................................. 7
5.5 Location - along the route ......................................................................................... 7
6 Rules & regulation .................................................................................................... 8
7 Management summery ............................................................................................. 8
7.1 Personnel plan ........................................................................................................... 8
8 Financial plan ............................................................................................................ 9
8.1 Break-even analysis .................................................................................................. 9
8.2 Projected profit and loss ............................................................................................ 9
8.2.1 1st year projected profit and loss .............................................................................. 9
8.2.2 Second year projected profit and loss .................................................................... 10
8.2.3 3rd year projected profit and loss ........................................................................... 10
8.2.4 4th year projected profit and loss ........................................................................... 11
8.2.5 5th year projected profit and loss ........................................................................... 11
8.2.6 1st to 5th year projected profit and loss .................................................................. 12
8.3 Projected cash flow ................................................................................................. 13
8.4 Life of fixed asset and depreciation ........................................................................ 13
8.5 Cost of gas (cost of fuel per litter) .......................................................................... 13
8.6 Recommendation and conclusion ........................................................................... 14
i
1. INTRODUCTION
Around 1937, about a year and half through the second invasion of Ethiopia by Italy, a taxi
company was operating by an Italian businessman named Sighnore Fernondo. The
company opened its doors for service around Georgis Church of Arada. At the time, the
taxis were dark brown and served only European residents around the city. Ethiopians were
not allowed to ride them unless they were bandas or servitore (አ ገ ል ጋ ይ). My other
source, which is the Armenian Weekly, has quoted that the first taxi service in Ethiopia
began to operate in Addis Abeba by Armenian drivers in the year 1915.
The Business of a share taxi (also called shared taxi) is a mode of transport which falls
between a taxicab and a bus. These vehicles for hire are typically smaller than buses and
usually take passengers on a fixed or semi-fixed route without timetables, but instead
departing when all seats are filled. They may stop anywhere to pick up or drop off their
passengers. Often found in developing countries, the vehicles used as share taxis range
from four-seat cars to minibuses.
2. EXECUTIVE SUMMARY
This commuter city taxi plan will show how a total investment of ETB 1,216,900.00 Birr
could yield cumulative Gross profits in excess of 858,960 Birr in over a five-year period,
and average monthly sales of 14,316.00 Birr while maintaining adequate levels of
liquidity.
The purpose of this plan is to secure investment of funding from her Owen account to
cover the start-up costs.
Currently, the demand of travellers from Piasa to bunbuha, from bunbuha to Piasa and in
between is relatively better comparing with other local routs.
2.1 MISSION, VISION STATEMENT & OBJECTIVES:

2.1.1 MISSION
The mission of the company is to provide the most clean and safe taxi services in Dessie. It
also aims to ensure the security of the customers upon the whole duration of their trip. It
also aims to be one of the known and trusted taxi operators and be one of the role models
when it comes to the concept of operations and giving services to customers.
2.1.2 VISION
Desire to offer top quality cab transportation convenience plus a special safety security
service.
2.1.3 OBJECTIVES
The nature of the business of the company is providing services to passengers around
Dessie. Target customers are those who need the taxi services of the company. At the
starting phase, the company started operating with one car. Since the company started
operating for quite a few months, the company expects to acquire more cars once the
business starts to stable its operations.
1
2.2 GOALS
 To provide customers with the best-priced transportation solution
 To offer fair remuneration to taxi driver
 To achieve gross revenue – 858,960 Birr in 5 year
 To build and maintain Relationships with wholesalers, retail networks (gas filling
stations)
 To actively participate in personal transportation associations.
2.3 START-UP COSTS
Thus far the owner Ms. Selamawit Belayneh have contributed 1,100,000.00 ETB 2004
manual to purchase a 5L used mini bus currently in its possession and ETB 1,100,000.00
for cash expenses. Total start-up expenses covered (including legal costs, licensing, Bolo,
Insurance considering the car value of 1,1000,000.00 ETB , 3rd party insurance, commuter
city taxi business plan compilation, license costs, cash on hand in order to manage cash
flow issues and related expenses) come to approximately 1,216,900.00 Birr.
2.4 TYPES OF VEHICLE

Share taxi is a unique mode of transport independent of vehicle type. Minibuses,
covered pickup trucks, station wagons, and Lorries see use as share taxis.
Certain vehicle types may be better-suited to current condition than others. In many traffic-
choked, sprawling, and low-density African cities minibuses profit.
Minibus taxis in Ethiopia are one of the most important modes of transport in big cities
like Dessie, Bahirdar, Hawassa, Mekele, Addis Ababa etc. They are preferred by the
majority of the populace over public buses and more-traditional taxicabs because they are
generally cheap, operate on diverse routes, and are available in abundance. All minibus
taxis in Ethiopia have a standard blue-and-white coloring scheme.
Minibus taxis are usually Toyota HiAces, frequent the streets. They typically can carry 11-
12 passengers, but will always have room for another until that is no longer the case. The
minibus driver has a crew member called a „‟weyala‟‟ whose job is to collect the fare from
passengers.
2.5 COMPANY OWNERSHIP

A private limited company incorporated at the register of companies through the foresight
and vision of Ms. Selamawit Belayneh it is her 100% wholly owned Ethiopian commuter
city taxi company.
2
3. COMPANY SUMMARY
3.1 START-UP SUMMARY
Thus far the owner Ms. Selamawit Belayneh have contributed 1,100,000.00 ETB 2004
manual to purchase a 5L used mini bus currently in its possession and ETB 100,000.00 for
cash expenses. Total start-up expenses covered (including legal costs, licensing, Bolo,
Insurance considering the car value of 1,100,000.00 ETB, 3rd party insurance, business
plan compilation, license costs and related expenses) come to approximately 1,216,900.00
Birr.
Start-up
Requirements
Start-up Expenses ETB
Cost of the car 1,100,000.00
Insurance 13,000.00
3rd party Insurance 2,000.00
Startup Licensing 1,100.00
Acquisition of Vehicles (Plate, Tapela) 300.00
Miscellaneous Costs 500.00
Total Start-up Expenses 1,116,900.00
Start-up Assets
Cash Required 100,000.00
-
Total Assets 100,000.00
Total Requirements 1,216,900.00
3
3.2 START-UP FUNDING
We have estimated total start-up costs of 1,116,900.00 Birr. The numbers in the start-up
and the start-up funding tables are meant to reflect these estimates. The company‟s capital
is 1,216,900.00 Birr. The purpose of this business plan is to secure financing for that
amount.
Start-up Funding
Start-up Funding ETB

Start-up Expenses to Fund 1,116,900.00
Start-up Assets to Fund 100,000.00
Total Funding Required 1,216,900.00
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up 100,000.00
Additional Cash Raised
Cash Balance on Starting Date
Total Assets 100,000.00
Liabilities and Capital
Liabilities
Current Borrowing -
Long-term Liabilities -
Accounts Payable (Outstanding Bills) -
Other Current Liabilities (interest-free -
Total Liabilities -
Capital
Planned Investment
Owner 1,216,900.00
Additional Investment Requirement -
Total Planned Investment 1,216,900.00
Loss at Start-up (Start-up Expenses) -
Total Capital 1,216,900.00
Total Capital and Liabilities 1,216,900.00
Total Funding 1,216,900.00
4
3.3 COMPANY OWNERSHIP

A private limited company incorporated at the register of companies through the
foresight and vision of Ms. Selamawit Belayneh it is her 100% wholly owned
Ethiopian company for commuter city taxi.
4. PRODUCT & SERVICE

4.1 BUSINESS MODEL
Before start Business of commuter city taxi, you need to first start with writing a business
proposal. The proposal or plan needs to address many important and essential details of the
prospective Business in our case prospective taxi service. The success of the business
always depend on how it had been conceptualized.
4.2 POTENTIAL TRAVELLERS
Potential travellers from Piasa to Bunbuha and from buanbuha to paisa are people who are
leaving around bunbuha who are interested to travel to paisa like students who are learning
WRO SIHN, travellers who are planning to go segno gebeya (Markt) , robit Gebeya
(market) for purpose of marketing to sale or to buy, travellers who are working around
paisa or around bunbuha, Travellers who are coming to Medical centers like selam
Hospital, Meseet Specialty Hospital, Ethio Hospital, Dessie Hospital for purpose of asking
peoples or to get medical treatment.
4.3 OTHER POTENTIAL TRAVELLERS

Other potential source will be students (Contract early morning from home to school and
afternoon from school to home), Contract service during market day (Segno Gebeya &
Robit Gebeya), contract service for hotels and restaurants during night time or early
morning for their employees and other sources.
4.4 CURRENT AND POTENTIAL COMPETITORS
The current and potential competitors are taxies who give services for public like looking
to invest or start business from Piasa to bunbuha and Bunbuha to paisa, Bajajs.
5. MARKET ANALYSIS SUMMERY

A market analysis is: a look at what the relevant business environment is and where you fit
in. It should give a potential lender, investor, or employee no doubt that there is a solid
niche for what you‟re offering, and you are definitely the person to fill it. It‟s both
quantitative, spelling out sales projections and other pertinent figures, and qualitative,
giving a thoughtful overview of how you fit in with the competition. It needs to look into
the potential size of the market, the possible travellers, customers you‟ll target, and what
kind of difficulties you might face as you try to become successful.
5
4.1 MARKET SEGMENT

The market segment is commuter city Shared taxis since, Shared taxis are common in
many developing and several developed countries. They can be seen either as a form of
street market taxi, a separate segment or as part of conventional public transport. The mode
occurs in many different forms with varying degrees of regulation and legality. Shared
taxis are a form of public transport, between ordinary taxis and mass transit systems. In
some places it operates on predefined lines, as an unscheduled bus service, in other the taxi
pick up passengers along the way after the first passenger give the direction. A further
variation is the dispatcher controlled shared taxi. Here the dispatching company collects
trips with roughly similar origins and destinations, and group them in to shared vehicles, at
reduced fares compared with metered fares in conventional taxis.
The vehicles used in these services are often larger than private cars and smaller than
conventional buses, typically they are 12 seats. Shared taxis will typically have larger
overlapping market segments with scheduled public transport than metered taxis.
5 STRATEGY AND IMPLEMENTATION SUMMARY

5.1 SWOT ANALYSIS
We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our
strengths as the ability to respond time our self to the market dictates and to provide
custom designed taxi service to travelers. Our key personnel will have a wide and thorough
knowledge of the areas we intend to take travelers, which will go a long way towards
penetrating the market. Below are the summarized strengths, weaknesses, opportunities
and threats.
5.1.1 STRENGTHS
 Diversified client base: This will reduce our dependency on one particular market.
 Combination of skills in employees: The directors intend to engage well-qualified
and experienced employees to jointly develop business strategy and long-term
plans, so as to attain company objectives.
 Innovative solution at an affordable price
 Scalable business
 Implement win-win strategy with potential partners (Hotel
 networks)
 Strategic approach in cooperation with taxi drivers
5.1.2 WEAKNESSES
 Lack of brand awareness

 Start-up business
 Lack of industry experience and contacts.
 A limited financial base compared to the major players in the industry.
 Lack of clear strategic allies.
6
5.1.3 OPPORTUNITIES
 Current drive by government towards encouraging the participation of indigenous

entrepreneurs in Taxi presents an opportunity which we may fully utilize.
 Current growth rate of taxi user presents an opportunity for ourselves which we
may take advantage of. This is further supported by the current marketing
campaigns by the government and regionals.
 Personal transportation service market is still in the early stages of development
and has tremendous growth potential
 Customers are looking for affordably priced and user-friendly solutions
 Major market players are actively seeking partnerships
5.1.4 THREATS
 New marketing strategies and tactics by established companies aimed at providing

excursions of our intended nature.
 Existing competition.
 Availability of substitute services
 Price pressure may lead to further decrease in margins
 successful and innovative new entrants
5.2 COMPETITIVE EDGE

Commuter city taxi located in the heart of the Local Bay area, near hospitals, clinics centre of
market. This is the busiest area in town. Lower operating cost and reasonable prices, being new
entrant have a chance to give excellent products and services, timely delivery, and convenience.
5.3 PRICING
Pricing is fixed by the city using regulated commuter city taxi. Prices can fluctuate when
the city council votes for a taxi rate increase or decrease following price of fuel. The
current fee from Piasa to Bunbuha or Bunbuha to paisa is 3.50 Birr and if the traveller
drops off amid Piasa to Bunbuha, the price will be 1.50 birr.
5.4 PERCENTAGE OF PASSENGERS WHO DON’T CARRY

LUGGAGE
Following our actual travel from piasa to bunbha, we only observe one person who come
with carry luggage so that the total percentages who don‟t carry luggage is 91.66% by
assumption of 12 Trips per day and the total percentage with luggage would be 8.33%.
5.5 LOCATION - ALONG THE ROUTE

Where they exist, share taxis provide service on set routes within Piasa to bunbuha and
from bunbuha to piasa and delivering service places located between the above listed
locations. After a share taxi has picked up passengers at its terminals, it proceeds along a
semi-fixed route where the driver may determine the actual route within an area according
to traffic condition. Drivers will stop anywhere to allow riders to disembark, and may
sometimes do the same when prospective passengers want to ride.
7
6 RULES & REGULATION

The owner (Ms. Selamawit Belayneh) should have deep knowledge about Proclamation
No.1074/2018 Driver‟s Qualification Certification License, proclamation no. 46812005. A
proclamation to provide for the regulation of transport licencing, rules & regulation of city
taxi service and other regulations issued by dessie city administration.
The Car owners who want to join the market, on the other hand, are required to acquire
permission from the bureau as well as code-01 plate and change the color of their car to
either blue and white or yellow, among others.
Under Ethiopian law, license plates that are blue with number “2” are private vehicles.
Commercial vehicles have green plates with number “3” marked on them. But taxi service
provider vehicles are coded 1 with white and blue color.
7 MANAGEMENT SUMMURY
The human resources element shall be an essential component in the delivery of the total
service. By encouraging all employees to handle customers well, and by having
enthusiastic, capable and empowered personnel interacting with our customers, we intend
to build the competitive advantage of being able to comprehensively meet our travellers'
needs.
7.1 PERSONNEL PLAN
People are the most valuable part of the business. In order to achieve the goal, Ms.
Samrawit needs to have people with the right skills, expertise and experience and the Taxi
service will be run by full time employed staff; The Project will create an employment
opportunity for 2 People.
Following trend of the city as well as the country Cost of salary both for driver and ticket
officer is covered by driver therefore, this cost is not considered as cost of the owner and
the record is only to show the cost and also not considered on profit and loss statement.
S.No Description
No of Employee Salary/ Total salary/ Remark
Month Annual
1 Driver 1 8,700 Birr 104,400 Birr Salary

Covered by
driver
2 Ticket officer 1 4,500 Birr 54,000 Birr Salary
Covered by
driver
Total 2 13,200 Birr 158,400 Birr
Working hour is from Monday to Sunday starts at Morning 6AM - 6: 30 PM and afternoon
from to 1:30 PM-9PM.
8
8 FINANCIAL PLAN
According to our conservative estimates, the proposed taxi service is expected to maintain
a healthy financial position over the next five years.
The projected financial statements have been prepared in accordance with the general
accounting principles, and necessarily include some amounts that are based on reasonable
estimates and judgement. For accounting purposes, the long-term assets are expensed using
the straight-line depreciation method.
8.1 BREAK-EVEN ANALYSIS

For our break-even analysis, we assume running costs of approximately 3,350 Birr per
month, which include utilities, insurance, oil, Garage and other fixed costs. We need to
collect money from travellers about minimum of 12,783 per month to break even, based on
our assumptions.
Since our normal operating capacity for the first year is 450 birr per day (13,050 birr per
month, as explained in the sales forecast section by considering 29 working days) is
expected to be much greater than the computed break-even point, we believe that the
company is likely to easily reach and maintain profitability.
8.2 PROJECTED PROFIT AND LOSS

We expect to be profitable in the first year of operations, with profits increasing over the
next four years, as we establish and increase traveller‟s base and the following table and
charts show the projected profit and loss for five years.
8.2.1 1st YEAR PROJECTED PROFIT AND LOSS

Pro Forma Profit and Loss Sales Forecast
Years 1
Income/ Sales 162,000.00
Direct Costs of Goods -
Gross Margin 162,000.00
Expenses
Insurance 15,000.00
Licensing 3,200.00
First aid kit 300.00
Fire safety equipment‟s 200.00
Membership fee 200.00
Acquisition of Vehicles (Oils) 8,400.00
Maintenance, repairs 6,000.00
Miscellaneous Costs 10,600.00
Depreciation 110,000.00
Total Operating Expenses 153,900.00
Profit Before Interest and Taxes 8,100.00
Profit Taxes (Fixed) 3,200.00
Net Profit 4,900.00
9
8.2.2 SECOND YEAR PROJECTED PROFIT AND LOSS

Years 2
Expenses
Insurance 13,630.00
Licensing 3,200.00
Net Profit 3,905.00
8.2.3 3rd YEAR PROJECTED PROFIT AND LOSS

Years 3
Expenses
Insurance 12,000.00
Licensing 3,680.00
Net Profit 5,755.00
10
8.2.4 4th YEAR PROJECTED PROFIT AND LOSS

Years 4
Expenses
Insurance 10,500.00
Licensing 3,680.00
Fire safety equipment’s 95.00
Net Profit 15,655.00
8.2.5 5th YEAR PROJECTED PROFIT AND LOSS

Years 5
Expenses
Insurance 9,000.00
Licensing 3,680.00
Fire safety equipment’s 100.00
Net Profit 17,140.00
11
8.2.6 1st to 5th YEAR PROJECTED PROFIT AND LOSS

Years 1 Years 2 Years 3 Years 4 Years 5
Income/ Sales 162,000.00 163,560.00 168,000.00 178,200.00 187,200.00
Direct Costs of Goods - - - - -
Gross Margin 162,000.00 163,560.00 168,000.00 178,200.00 187,200.00
Expenses
15,000.00 13,630.00 12,000.00 10,500.00 9,000.00

Insurance
3,200.00 3,200.00 3,680.00 3,680.00 3,680.00
Licensing
300.00 350.00 400.00 550.00 600.00
First aid kit
200.00 75.00 85.00 95.00 100.00
Fire safety equipment‟s
200.00 200.00 200.00 200.00 200.00
Membership fee
Acquisition of Vehicles (Oils) 8,400.00 8,800.00 9,000.00 9,200.00 9,600.00
Maintenance, repairs 6,000.00 16,600.00 19,000.00 20,200.00 28,400.00
Miscellaneous Costs 10,600.00 3,600.00 4,200.00 4,440.00 4,800.00
Depreciation 110,000.00 110,000.00 110,000.00 110,000.00 110,000.00
Total Operating Expenses 153,900.00 156,455.00 158,565.00 158,865.00 166,380.00
Profit Before Interest and 8,100.00 7,105.00 9,435.00 19,335.00 20,820.00
Taxes
3,200.00 3,200.00 3,680.00 3,680.00 3,680.00
Profit Taxes (Fixed)
Net Profit 4,900.00 3,905.00 5,755.00 15,655.00 17,140.00
12
8.3 PROJECTED CASH FLOW

Many profitable companies go bankrupt because of cash flow deficiencies. That is why our
main concern will be to have sufficient cash on hand to meet our payment obligations, and
be prepared for unexpected needs for cash.
In addition to normal cash inflows and outflows, we will focus on establishing sufficient
cash reserves for contingencies. That includes a possible line of credit with our bank, that
could be used in slow sales periods as well. This is a good way to control the cash flow
risk.
The revenue from taxi operations is relatively easy to project. All revenue is based on one
factor, the daily collection is 450.00 per day bases for seven days except and amount to be
deposited in daily bases at bank. If the car is in garage for purpose of inspection or other
purpose, the amount will be considered and the fee could be adjusted downwards the time
takes at garage and the daily income will increases in annual base.
8.4 LIFE OF FIXED ASSET AND DEPRECIATION
Most fixed asset constantly loses value through continued use and increasing age.
Eventually those fixed assets need to be replaced. Accordingly vehicles are estimated at
useful life of 10 years and furniture and equipment it is estimated at 5 years.
Using straight line depreciation (SLD) method, the annual depreciation cost for fixed
assets is worked out as follow.
The Annual Depreciation cost
S.No Description Birr
1 Vehicle 110,000.00
Ground Total 110,000.00
8.5 COST OF GAS (COST OF FUEL PER LITTER)

Following trend of the city as well as the country Cost of fuel is covered by driver
therefore, this cost is not considered as cost of the owner and the record is only to show the
cost.
S.No Description Qty Cost of fuel per Total cost Total cost per Year
litter per month
1 Fuel 220 18.28 4021.60 48,259.20

Ground Total 220 18.28 4021.60 48,259.20
13
8.6 RECOMMENDATION AND CONCLUSION

8.1 RECOMMENDATION
The recommendation to the owner of the commuter city taxi business (Ms. Samrawit
Belayneh) is highly recommended that the taxi service is delivered by herself by having the
driving license or the driver to be assigned from one of her family which the recruitment of
driver and helper (Redat „‟Woyala‟‟) since, most of the gross profit goes to the driver as
you see in the total cost of salary for driver and helper „‟Woyala‟‟ compared with total
annual revenue stated at the profit & loss statement the commuter city taxi business (Ms.
Samrawit Belayneh) almost equal. Therefore, it is quite indispensable that the business is
managed by her close family in order to save money and the return investment within short
period of time.
8.2 CONCLUSION
The overall aim of this project is to bring new knowledge to Ms. Samrawit Belayneh
concerning the possible success of the launch of the product called commuter city taxi
Service. This has certainly been reached and the business plan is filled with new facts and
figures as mentioned on profit and loss statement and in General, the statement of profit &
loss shows for the coming 5 years. The business will ultimately result in significant profit
& it‟s healthy and feasibility study has indicated green light for start-up or venture
business.
14

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DEPARTMENT OF MANAGEMENT

MARKETING MANAGEMENT /MBA 552/

Prepared By: ID Number

Worash Engidaw SGSE/237/12

2.1 MISSION, VISION STATEMENT & OBJECTIVES:

2.4 TYPES OF VEHICLE

2.5 COMPANY OWNERSHIP

3.2 START-UP FUNDING

Start-up Funding ETB

3.3 COMPANY OWNERSHIP

4. PRODUCT & SERVICE

4.2 POTENTIAL TRAVELLERS

4.3 OTHER POTENTIAL TRAVELLERS

4.4 CURRENT AND POTENTIAL COMPETITORS

5. MARKET ANALYSIS SUMMERY

4.1 MARKET SEGMENT

5 STRATEGY AND IMPLEMENTATION SUMMARY

 Lack of brand awareness

 Current drive by government towards encouraging the participation of indigenous

 New marketing strategies and tactics by established companies aimed at providing

5.2 COMPETITIVE EDGE

5.4 PERCENTAGE OF PASSENGERS WHO DON’T CARRY

5.5 LOCATION - ALONG THE ROUTE

6 RULES & REGULATION

7.1 PERSONNEL PLAN

1 Driver 1 8,700 Birr 104,400 Birr Salary

8.1 BREAK-EVEN ANALYSIS

8.2 PROJECTED PROFIT AND LOSS

8.2.1 1st YEAR PROJECTED PROFIT AND LOSS

8.2.2 SECOND YEAR PROJECTED PROFIT AND LOSS

8.2.3 3rd YEAR PROJECTED PROFIT AND LOSS

8.2.4 4th YEAR PROJECTED PROFIT AND LOSS

8.2.5 5th YEAR PROJECTED PROFIT AND LOSS

8.2.6 1st to 5th YEAR PROJECTED PROFIT AND LOSS

Pro Forma Profit and Loss Sales Forecast

15,000.00 13,630.00 12,000.00 10,500.00 9,000.00

8.3 PROJECTED CASH FLOW

8.4 LIFE OF FIXED ASSET AND DEPRECIATION

The Annual Depreciation cost

S.No Description Birr

8.5 COST OF GAS (COST OF FUEL PER LITTER)

1 Fuel 220 18.28 4021.60 48,259.20

8.6 RECOMMENDATION AND CONCLUSION

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