Executive Summary

Name of business: Sweet Cafe

Legal form: Partnership

Contact address: Adama, Ethiopia

Tel. +251970707070

E-mail Sweet2023@gmail.com

Type of business Service provide

Brief description of the business idea

Sweet Cafe is a new business venture that aims to provide a cozy and inviting environment for
customers to enjoy a variety of sweet treats, coffee, and light meals. The cafe will be located in a
busy commercial area with high foot traffic, and will cater to customers who are looking for a
comfortable and relaxing environment to enjoy their favorite snacks and beverages.

The cafe will offer a range of sweet treats, including cakes, pastries, cookies, and other baked
goods, as well as a variety of coffee and tea options. In addition, the cafe will serve light meals
such as sandwiches, salads, and soups, to cater to customers who are looking for a quick and
healthy meal.

The product: Sweet Treat, Coffee and Tea, Light Meals, Beverages etc.

Customers: our customers are

 Students
 Young Professionals
 Families
 Tourists
Owner(s)

(Name, Address, Qualification, Function in the business, Relevant experience)

(1) ENTISAR SHERE lives in Adama kebele 4 , an undergraduate Marketing management

student who has a great experience on managing a small scale enterprise of his own for the last
two years.

(2) SARA ABDULAZIZ live in Adama kebele 4, an undergraduate Marketing managment

student who has an elite concept on Marketing and Logistics planning , has role on hers family
business as a saleswoman and distributor for the last 3 years in accompanying with her
undergraduate courses.

(3) MOHAMMED AHMEDHUSEN live in Adama kebele 4, an undergraduate marketing

management student as both of his partners has no relevant experience before but he will
collaboratively work with his colleagues and experienced finance professionals on financing
until he's adapted to.

Number of jobs to be created 10

Start-up capital

Investment 800,000

Working capital 200,000

Total 1,000,000

Source of capital

Own savings

Partner 1,000,000

Family loan

Bank loan
Business Idea and Market

Description of the business idea

Sweet Cafe is a new business venture that aims to provide a cozy and inviting environment for
customers to enjoy a variety of sweet treats, coffee, and light meals. The cafe will be located in a
busy commercial area with high foot traffic, and will cater to customers who are looking for a
comfortable and relaxing environment to enjoy their favorite snacks and beverages.

The cafe will offer a range of sweet treats, including cakes, pastries, cookies, and other baked
goods, as well as a variety of coffee and tea options. In addition, the cafe will serve light meals
such as sandwiches, salads, and soups, to cater to customers who are looking for a quick and
healthy meal.

The cafe will have a warm and inviting atmosphere, with comfortable seating, soft lighting, and a
relaxing ambiance. The decor will be modern and stylish, with a focus on creating a cozy and
welcoming environment for customers.

The business plan for Sweet Cafe includes a detailed analysis of the market, including the target
customer base, competition, and market trends. The marketing strategy will focus on building
brand awareness and attracting customers through social media, local advertising, and
promotions. The financial plan will ensure profitability by carefully managing expenses and
maximizing revenue through effective pricing strategies.

The product
Sweet Cafe will offer a variety of products to cater to the diverse tastes and preferences of its
customers. The products will include:

1. Sweet Treats: Sweet Cafe will offer a range of sweet treats, including cakes, pastries, cookies,
and other baked goods. These will be freshly baked on-site using high-quality ingredients to
ensure that they are delicious and flavorful.

2. Coffee and Tea: Sweet Cafe will offer a variety of coffee and tea options, including espresso,
cappuccino, latte, and iced coffee. The cafe will also offer a range of tea options, including black
tea, green tea, and herbal tea.
3. Light Meals: Sweet Cafe will serve light meals such as sandwiches, salads, and soups. These
will be made using fresh and healthy ingredients to cater to customers who are looking for a
quick and healthy meal.

4. Beverages: In addition to coffee and tea, Sweet Cafe will offer a range of other beverages,
including fresh juices, smoothies, and milkshakes.

5. Special Occasion Cakes: Sweet Cafe will also offer special occasion cakes for birthdays,
weddings, and other events. These will be customized to meet the specific needs and preferences
of the customers.

All the products offered by Sweet Cafe will be made using high-quality ingredients and will be
prepared by skilled and experienced staff. The cafe will also offer a range of vegan and gluten-
free options to cater to customers with specific dietary requirements. The products will be
competitively priced to ensure that they are affordable and accessible to a wide range of
customers.

Customers
The customers of Sweet Cafe in Adama will be diverse and varied, including:

1. Students: Adama is home to several universities and colleges, and students will be a
significant customer base for Sweet Cafe. The cafe will offer a comfortable and relaxing
environment for students to study, socialize, and enjoy a quick snack or beverage.

2. Young Professionals: Adama is experiencing rapid growth and development, and there is a
growing population of young professionals in the city. Sweet Cafe will offer a convenient
location for these individuals to meet with colleagues, work remotely, or take a break from their
busy schedules.

3. Families: Sweet Cafe will also cater to families who are looking for a comfortable and
welcoming environment to enjoy a sweet treat or light meal. The cafe will offer a range of
options for children, including milkshakes, smoothies, and cookies.
4. Tourists: Adama is a popular tourist destination, and Sweet Cafe will attract tourists who are
looking for a place to relax and enjoy a cup of coffee or tea. The cafe will offer a range of local
and international coffee and tea options to cater to the diverse tastes of tourists.

5. Health-Conscious Customers: Sweet Cafe will also attract health-conscious customers who are
looking for healthy and organic food options. The cafe will offer a range of salads, sandwiches,
and soups made using fresh and healthy ingredients.

Overall, the customers of Sweet Cafe in Adama will be diverse and varied, and the cafe will
cater to the specific needs and preferences of each customer group. The cafe will offer a
welcoming and comfortable environment for all customers to enjoy their favorite sweet treats
and beverages.

Description of the market

(e.g. geographical area, town, type of customers, size of total market, description of competitors,
market share for the new business, etc.)

The market for Sweet Cafe in Adama is diverse and growing. Adama is a city in Ethiopia that is
experiencing rapid growth and development, with a population of over 350,000 people. The city
has a vibrant and diverse population, with a mix of young professionals, students, families, and
tourists.

The target customer base for Sweet Cafe will be individuals who are looking for a comfortable
and relaxing environment to enjoy their favorite sweet treats and beverages. This includes coffee
and tea lovers, as well as those who enjoy baked goods such as cakes, pastries, and cookies. The
cafe will also cater to customers who are looking for a quick and healthy meal, such as
sandwiches, salads, and soups.

There is currently a growing demand for cafes and coffee shops in Adama, as more people are
looking for places to socialize, work, and relax outside of their homes. The competition in the
market includes both local and international cafes and coffee shops, but Sweet Cafe will
differentiate itself by offering a unique and inviting atmosphere, high-quality products, and
excellent customer service.
The market trends in Adama indicate that there is a growing interest in healthy and organic food
options, as well as a preference for locally sourced ingredients. Sweet Cafe will cater to these
trends by offering a range of healthy and organic food options, as well as sourcing ingredients
from local suppliers whenever possible.

Overall, the market for Sweet Cafe in Adama is promising, with a growing demand for cafes and
coffee shops, a diverse and vibrant population, and a preference for high-quality products and
services.
Marketing Plan Product
Detailed description of the product or product range or service

Product/service (1) (2)

Denomination
cake Coffee

Specification
Torta Cake

(e.g. size, colour, Jebena Coffee

quality)

Packaging

1KG 1 coffee cup

After sales service

Sales Return and Sales return and allowance
allowance
 (3) (n)

Product/service

Denomination

Specification

(e.g. size, colour,

quality)

Packaging

After sales service

Marketing Plan Price

Product/service (1) (2)

How much are Highest : 600 birr Highest; 42 birr

Average; 500 birr Average; 10 birr

customers willing Lowest ; 400 birr Lowest; 8 birr

to pay?

Competitors’ price Highest ; 700 birr ; Highest; 44 birr

Average; 600 birr
Average; 11 birr

Lowest; 400 birr Lowest; 9 birr

My price
600 birr- 1kg cake 20 birr- 1 cup coffe

Reasons for setting my

price Because of the scarcity Because of High quality

of quality cake
ingredient with high
price in Ethiopia which
leads us to price this
much averagely
coffee which undergoes a
lot of quality analysis
before purchasing

Margin for discount? No No

 Product/service (3) (n)

How much are Highest ; Average; Highest ; Average;

customers willing Lowest Lowest

to pay?

Competitors’ price Highest ; Average; Highest ; Average;

Lowest Lowest

My price

Reasons for setting my

price

Margin for discount? No No

Location of the business

Description of the planned location for the business
The planned location for Sweet Cafe in Adama is a busy commercial area in the city center. The
location is easily accessible by public transportation and is surrounded by other businesses,
including shops, restaurants, and offices. The area is known for its vibrant and bustling
atmosphere, making it an ideal location for a cafe.

The building itself is a modern and spacious two-story structure with large windows that allow
natural light to flood the interior. The ground floor will house the main cafe area, which will
include a seating area, a counter for ordering, and a display case for showcasing the sweet treats
and baked goods. The seating area will be designed to be comfortable and welcoming, with a
mix of tables and chairs, sofas, and armchairs.

The second floor will be used as a private event space for special occasions such as birthdays,
weddings, and corporate events. The space will be designed to be flexible and adaptable, with
movable furniture and a sound system for music and speeches.

Reason for choosing this location

The location of Sweet Cafe in Adama is strategic, as it is in a busy commercial area with high
foot traffic and surrounded by other businesses. The accessibility, vibrant atmosphere, and
modern building make it an ideal location for a cafe.

Reaching the customers by selling to : Individuals

Reason for choosing this way of distribution

As we know using of marketing intermediaries to execute an assortment of necessary functions

to get the product to the final user. And individuals are the one that doo customers want
immediate response or are they more concerned about the assurance of peer to peer marketing
and this is the perfect match for our business that' s we choose it among them.
Marketing Plan Promotion

1. Social Media: We will create social media accounts for the cafe on platforms such as
Facebook, Instagram, and Twitter. We will use these platforms to share photos of our sweet
treats and beverages, promote special offers and events, and engage with customers.

2. Local Advertising: We will place ads in local newspapers, magazines, and online publications
to reach potential customers in the area. We will also distribute flyers and brochures in the
surrounding neighborhoods and businesses.

3. Word of Mouth: We will encourage our customers to spread the word about Sweet Cafe to
their friends and family. We will provide excellent customer service and high-quality products to
ensure that our customers have a positive experience and are more likely to recommend us to
others.

4. Special Offers: We will offer special promotions and discounts to attract new customers and
encourage repeat business. For example, we may offer a discount on a customer's first visit or a
free beverage with the purchase of a certain item.

5. Events: We will host events such as live music performances, poetry readings, and book clubs
to attract customers and create a sense of community around the cafe.

Legal Form

The legal form of the business will be: partnership Reason for choosing this legal form

We choose the partnership legal form because of :

- It’s easy to change your legal structure later if circumstances change

- It’s is easy to establish and start-up costs are low

- have an employment advantage over other entities if they offer employees the opportunity to
become a partner. It incentives often attract highly motivated and qualified employees.

- Of pooling resources to obtain capital.

This could be beneficial in terms of securing credit, or by simply doubling your seed money.
Start-Up Capital
Estimation of start-up capital Amount

INVESTMENT

Land 400,000

Building 100,000

Equipment 200,000

Miscellaneous 60,000

Total Investment 760,000

WORKING CAPITAL

months of staff costs 150,000

months of operational costs 200,000

Total working capital 350,000

TOTAL START-UP CAPITAL

Specification of investment items

Investment item Specification Price

Land Surface – 300m2 400,000

Building Surface – for large area 100,000

Equipment Microwave, Blender , 50,000

Coffee Grinder ,
Refrigerator, Espresso
Machine etc.

Tools others 60,000

Transport Delivery lent 4,000

Miscellaneous Computer , labor 40,000

tools , clothes ,
water , telephone
, electric power

TOTAL ACQUISITION 700,000

COSTS
Sources of Start-Up Capital

Sources of funding

Type Source Conditions Amount

(duration/interest)

Equity capital On terms of the profit 1,000,000

‰ Partner

Loan 1 ‰ Family

‰ Friends

‰ Money lender

Loan 2 ‰ Credit cooperative

‰ Government scheme

‰ Bank loan

TOTAL FUNDING 1,000,000

Information about funding sources

Loan 1

Name and address of creditor or credit institution

Credit agreement under discussion finalized money available on

(date)________

Loan 2

Name and address of creditor or credit institution

Credit agreement under discussion finalized money available on

(date)________
Debt Service

Repayment 1 2 3 4 5 6 7 8
period Amount Amount Amount Amount Amount Amount Amount Amount

Loan 1

Instalment

Interest

Loan 2

Instalment

Interest

Debt service
Sum of Instalments
Organization and Staff

Organization of the business

Staff requirements
Position Tasks, Responsibilities and Qualifications

1 ENTISAR SHERE General Manager , BA Degree

2 SARA ABDULAZIZ Marketing Manager , BA Degree

3 MOHAMMED AHMEDHUSEN Finance Manager , BA Degree

4 ENTISAR SHERE Human resource and finance manager, BA Degree

5 SARA ABDULAZIZ Secretary, BA Degree

6 MOHAMMED AHMEDHUSEN Material Manager , BA Degree

Planned organization chart

Staff costs
Position Qualifications Salary Social Total
per month security staff cost

1 Farm Manager BA with Agri 13,000 13,500

2 Process Mg. BA with food sc. 13,000 14,000

3 driver Licensed 7000 8000

4 Security Experianced 6500 7500

5 Analyzer BA with food sc. 13,000 14,000

6 Casher BA with accounting 10,000 12,000

Organization of business premises

(Sketch of planned shop, office or workshop)

 Sweet cafe
Balance Sheet
 Sweet cafe

Income Statement

For year ended year from 2016 up to 2018

Business Operation and Costs
Monthly Sales Plan

All products, product range or services

Month 1 2 3 4 5 6 7 8 9 10 11 12

Product 1 Price 120 120 115 120 120 115 120 120 125 120 115 120

Quantity 1500 1500 1200 1400 1300 1500 1500 1500 1200 1300 1100 1000

Turnover 18000 18000 13800 16800 15600 17250 18000 18000 15000 15600 12650 12000

Product 2 Price 78 78 78 78 78 78 78 78 78 78 78 78

Quantity 800 1000 1200 800 900 1000 700 800 1000 1000 900 800

Turnover 80,400 88,000 107,000 79,200 85,800 95,250 72,600 80,400 93,000 93,000 82,850 74,400

Product 3 Price

Quantity

Turnover

Product n Price

Quantity

Turnover

All products Turnover

Monthly Operational Cost Plan

Planning is based on the monthly sales plan

Month 1 2 3 4 5 6 7 8 9 10 11 12

Product 1 Quantity 120 kg 120 115 120 120 115 120 120 125 120 115 120

Materials All costs 10,000 90,000 90,000 80,000 90,000 80,000 90,000 80,000 90,000 80,000

Product 2 Quantity

Materials All costs

Product 3 Quantity

Materials All costs

Product n Quantity

Materials All costs

Materials Total costs

+ Staff Total costs

+ Others Total costs

= Operation Total costs

+ Capital cost Interest

Depreciation

= Total costs
Cash Flow Plan
Monthly Cash Flow Plan
Month Pre- 1 2 3 4 5 6 7 8 9 10 11 12
operation

Cash beginning of 3,600,000

the month

+ Equity

+ Loans

+ Sales

+ Any other

I: Total cash in

Investment 3,000,000

Operational cost 140,000

Interest

Any other 100,000 120,000120,000 100,000 100,000

II: Total cash out

I – II Cash at the
end of the month
Profit Margin
Monthly Estimation of Net Profit
Month 1 2 3 4 5 6 7 8 9 10 11 12

Product 1 Quantity

Turnover

Product 2 Quantity

Turnover

Product 3 Quantity

Turnover

Product n Quantity

Turnover

I. Total Sales

- Operation Total costs

- Capital cost Interest

Depreciation

II. Total Costs

I – II Profit
(before tax)
____

Net profit
(after tax)
Opening Balance
Opening Balance of My Business (Date)

Assets Value Liabilities Value

Equity
Fixed Assets

Land 400,000 Long-Term Liabilities

Building 100,000 Mortgage

Equipments 60,000 Loans

Others Others

Total Fixed 560,000 Total Long-Term

Assets Liabilities
Current Assets Current Liabilities

Cash and bank 240,000 Accounts payable

Accounts Taxes payable

receivable
Inventory Others payable

Total Current 240,000 Total Current

Assets Liabilities

Total Assets 700,000 Total Liabilities and Net

Worth