buze sand-plastic floor tiles

YIRGALEM INDUSTIRAL & CONSTRUCTION

COLLEGE

BUSINESS PLAN
FOR
DESIGN AND DEVELOPMENT OF SAND-PLASTIC COMPOSITES
AS FLOOR TILES USING SILICA SAND AND RECYCLED
THERMOPLASTICS: A SUSTAINABLE APPROACH FOR
CLEANER PRODUCTION

Prepared by
Instructor: - Bezunish Adefires

Jan, 2023

YIRGALEM, SIDAMA, ETHIOPIA

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 buze sand-plastic floor tiles

BUZE SAND-PLASTIC FLOOR

TILES

Project plan prepared for the establishment of

buze sand-plastic floor tiles

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 buze sand-plastic floor tiles

Table of Content

Content Page

1. Introduction 1
2. Executive summary 2
2.1. Objectives 2
2.2. Mission 2
2.3. Keys to success 3
3. Company Summary 3
3.1. Startup Summary 3
3.2. Product and services 4
3.3. Product and service description 5
4. Sourcing of marketing 5
4.1. Technology 5
4.2. Competitive comparison 5
4.3. Future product and services 6
4.4. SWOT analysis 7
5. Market Analysis summary 8
5.1. Market Segmentation 8
5.1.1.Market Trends 8
5.2. Service Business Analysis 9
5.2.1.Competition and Buying Patterns 9
5.2.2.Business Participants 9
6. Strategy and Implementation Summary 9
6.1. Marketing Strategy 10
6.1.1.Pricing Strategies 10
6.1.2.Promotion Strategies 10
6.1.3.Competitive of the shop 10
7. Sales forecast 11
7.1. Management Summary 11
7.2. Personnel Summary 11
8. Financial Plan 12
8.1. Break even Analysis 12
8.2. Projected Balance Sheet 13
8.3. Business Ratio 14

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BUZE SAND-PLASTIC FLOOR TILES PROJECT PLAN

1. Introduction

buze sand-plastic floor tiles is a kind of partnership business project plan established in yirgalem.

Our financial need contain. What one project must be containing beginning form the owners for
adequate expanses. Start up funding, start up assets fund, liabilities capital, and additional
investment requirements are more briefly discussed in the financial part of project plan.

buze sand-plastic floor tileS is the partnership, so it has three members

1. Bizunesh Adefress

2. M…….

3.W……….

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2. Executive Summary

buze sand-plastic floor tileS is a start-up business which will be located in front of yirgalem
mikiale church. The firm which will be started on 2016 E.C. Specializes in the sales of reused
plastic-sand construction materials and different stationeries and equipments.

2.1. objectives

buze sand-plastic floor tiles is growth-product oriented business. Its five years goal is to become
a regional leader in recycled plastic-sand construction with shops in the yirgalem town area.
With this in mind, the objectives of the next three years for stated.

2.2. Mission

The mission of buze sand-plastic floor tile is to provide high quality, convenient and
comprehensive construction materials at a low cost. The most important aspect of our business is
trust.

2.3. Keys to Success

buze sand-plastic floor tiles supply sale firm builds, its client base one customer at a time and
mostly through established marketing practices (ads, news papers, etc). Having this in mind, the
keys to success to Hope stationary are:

 High-quality
 Attention to professional appearances at all times.

3. Company summary
3.1. Start up summary

Capital costs

Purchase price of business

Training 4,000.00
Office equipment
Des ks 5,000.00

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Chairs 4,000.00
Business Structure
Registration 2,000.00
Professional fees 44,000.00
House rent costs: 40,000.00
Toilets, plumbing and drainage 10,000.00
Total capital costs: 109,000

Operational Costs

Wages 25,000.00
Advertising 7,500.00
Electricity and gas 6,000.00
Initial funding of the business

As the partners ship, the partners have br. 200,000.00 money to invest in the business and the
closing balance in the projected start up summary shows that, in addition to this some 64500 will
be required over the first year.

3.2. Products and Services

buze sand-plastic floor tiles offers a wide range of construction product as outlined in the
detailed sections below. It’s ultimately the goal of the company to offer a one-stop facility for all
construction material needs, including both sales and productions. In this way the company can
offer greater perceived value for the customer that many other shops which only offer sales.

Product and Service Description

 Supply and sale of sand-plastic construction materials.

 Supply and sale of sand-plastic floor, roof tiles.
 Maintenance and installation.
 Supply of training.

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4. Sourcing of Marketing

Buze sand-plastic floor tiles will obtain most of its raw materials through established dealers and
directly from the locale marketer.

4.1. Technology

The company will continue to seek new ways to provide a better product through technology.

4.2. Competitive Comparison

The sand-plastic construction production firms in sidama region are low competitive. Each
company with in this field has low labor costs, low margins, and a low intensity of competition.

4.3. Future products and Services

Future products and services that buze sand-plastic floor tiles prepare to institute include
construction materials, floor tiles and installation service also investigating the possibility of
offering a new product line at some future date.

The capital investment needed for such expansion will primarily come from the company’s
accumulated operating cash account. It is anticipated that some of these product/service
expansions that require significant inventory, such as new sales, may require additional cash
inflow such as loans.

4.4. SWOT Analysis

A SWOT (strengths, weaknesses, opportunities and threats) analysis can provide a lot of useful
information for a business. It can give direction to the business and its marketing strategies. The
results need to be concise, relevant and interesting. The report should give an understanding of
the business aims, and key issues and objectives should flow from it easily.

Key issues

Drawn from the SWOT analysis, the significant issues for floor and roof tile shop are:

 Inexperience and lack of product awareness

 Sufficient funds for projections but limited resources for growth

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 Keeping projects affordable if materials costs increase unexpectedly

 Need to grain knowledge in recruiting and managing staff

Key opportunities

 Providing good customer product that will increase market perceptions and earn word of
mouth advertising.
 Popularity of renovations in the area
 Utilizing technology to promote business and keep staff contacts.
 Good net working allows good service and joint promotional activity.

5. Market Analysis Summary

There are approximately 34,000 households in the yirgaleme city area and different types of
public institutions and universities which participate in purchasing product as customers. Buze
sand-plastic tiles segments its market into product categories that reflect the estimated number of
each manufacturer currently being used in yirgaleme area.

5.1. Market Segmentation

Buze sand-plastic tiles has segmented in the yirgaleme area as follows:

Customers, they prioritize socializing and spend a fair amount of time entertaining in the FM
Radio and in the news paper of the products. By this method spend more on construction
material.

 Public institutions they will spend a greater percentage of purchase on high-quality and
for office.
 Private institution
 Different types of agencies.
 Households.

5.1.1. Market Trends

The market demand for construction material especially for tiles has been relatively stable over
the past decade. The market is seeing more highly trained technicians needed. As technology

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progresses, long-term planners within this market expect to see new opportunities for production
and maintenance replace quickly arise.

5.2. Service Business Analysis

Much of the tile shop firm analysis is contained in the competitive comparison section. However,
the key points are that the industry is highly competitive and that most firms have little power to
affect the forces that influence them or to affect the price levels that the market determines.

5.2.1 Competition and Buying Patterns

Customers’ traditionally purchase product in this industry because of effective advertizing and
reputation. The customers wish to be reassured that they will receive prompt and reliable service
and have an understanding. Service representative will listen to their problems and seeks to solve
them in fast and professional manner.

5.2.2 Business participants

As stating before, the tile production is highly fragmented. In fact, there are so many small
providers that any company in this industry is facing a purely competitive environment.

6. Strategy and Implementation summary

6.1 Marketing Strategy

1. Direct mailers
2. Discounts
3. News Paper Advertizing
4. Referrals through other local business

The company’s aim is to overcome the traditional small firms’ form of advertizing and
promotion by sending our message to customers, instead of having the customer look for a firm
when they need our product. The firm plans to build market share through product awareness,
value creation, competitive price, availability, and attractive product experience, all leading to
the purchasing of our services.

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6.1.1 Pricing strategies

Buze sand-plastic tiles exists in a purely competitive environment where each must be a price
taker. In other words, the firm has no ability to affect price of its product. In this case therefore,
marginal revenue (the revenue incurred by selling or servicing one or more unit) is equal to the
price charged.

What all of this means for the company is that the we must seek to charge our clients at the
market price (or lower price). As long as marginal costs do not exceed revenues, the company’s
method to minimize short-run profit is to sell and service the various products at minimum
capacity.

6.1.2 Promotion strategy

The company’s promotion strategy will take the form of direct mailers, price discount, and news
paper advertisings. Buze sand-plastic tiles expects to spend a large amount on marketing in the
first two years in order to build up product awareness and service value in minds of our
customers.

6.1.3 competitive of the shop

Buze sand-plastic tiles competitive edge lies in its ability to provide quality and fast construction
materials and sale at lower cost than any local small competitor. This positioning of the company
provides protection against the power of suppliers by creating more flexibility to cope with
increasing costs. In addition this approach will provide returns even during economic downturns
and when other unforeseen problems arise.

7. Sales forecast

Since the Buze sand-plastic tiles sale product is operationally a job-shop environment it is
somewhat difficult to estimate sales. For job-shops each individual product or service is unique
to that job and is only initiated once an order is made.

The sales forecast is based on the estimated number of tiles the firm could produce and sell that
are currently available on yearly market demand for our services.

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7.1 management summary

The company is registered as partnership managed by Ms __________, the manager of the firm
will consult on issues with the two members of the firm to helpher with the proper running and
growing the business. Ms________ is now seeking to leverage this experience in to a growth-
oriented business that will be able to eventually compete with the large firms in the industry.

7.2 Personnel plan

Buze sand-plastic tiles initial staffing will consist of Ms _________, and the members of the
firm. Accounting book keeping and marketing consulting services will be outsourced. The
company’s intermediate goal is to have Two full-time, fully trained technicians at the original
facility, plus a full-time office manager. However, management has decided to await future
developments before determining the best time to bring on such personnel.

Personnel plan payroll

Personnel plan Year1 Year2 Year3

A 28800 30 00 0 36000
B 24000 28000 32000
C 24000 28000 28000
Total payroll 76,800 86,000 96 ,0 00

8. Financial plan

General Assumption

General Assumption Year 1 Year 2 Year 3

Plan month 1 2 3
Current interest rate 10.00% 10.00% 10.00%
Long -term interest rate 10.00% 10.00% 10.00%
Tax rate 30.00% 30.00% 30.00%
Other 0 0 0

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8.1 Break –even analysis

The companies’ break-even analysis is based on an average firm’s running costs within this
industry, including payroll, and its fixed costs for such things as rent, utilities, etc. As Hope
Stationary shop operates as a job-shop, with each task a unique, customized service it is difficult
to estimate revenue per unit and variable costs. The reader must understand that there is a high
degree of variance within this estimate.

Break-even analysis

 Monthly RevenueBreak-even birr 17,844

 Assumption:
Average percent Variable cost 10 %
Estimated monthly fixed cost birr 16,05

8.4 Business Ratio

The business ratio give an overall idea of how profitable and at what risk level, Buze sand-plastic
tiles will operate at. The ratio table gives both time series analysis and cross-sectional analysis by
including industry average ratios. Industry profile ratios are based on standard industrial
classification (SIC). As can be seen from the comparison between industry standards Buze sand-
plastic tiles own ratios, there are some differences. Most of these are due to the fact that there is a
very large variance in assets, liabilities, financing and net income between companies in this
industry due to the vast differences in company size. The reader will also note that there is a fair
amount of variability between the various years. this is due to the fact that the company is
expected to grow quickly and have large variance in profitability from year to year at first.
Over all the companies’ projections show a company that faces the usual risks of companies in
this industry and one that will be profitable in the long run.

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