Business Plan

Type of project Computer Solution

Name of project Gada Computer Solution
Project owner : Third year students Dep’t of ICT in APTC

Abdi Major phone No: 09 19521922

E-mail abdimajor2020@gmail.com

Bekelcha Abdulaziz phone No: 09 15451175

E -mail: --------------- @gmail

Dawite Deneke phone No: 0963836315

E-mail: --------------- @gmail

Project address Adama City East Shoa Zone of Oromia Regional

State at a particular district called Adama City at
Franko
Date 5/10/2015

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Project Title :- Computer Solution

Contents

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Executive Summary.....................................................................................................................................3
1. Introduction.........................................................................................................................................6
2. Owner(s) profile...................................................................................................................................7
3. MARKETING PLAN...................................................................................................................................7
3.1. Description of the Product................................................................................................................7
3.2. Business Location of our business....................................................................................................8
3.3. Market Area......................................................................................................................................8
3.4.Market Share.....................................................................................................................................8
4. Marketing Plan Price............................................................................................................................9
4.1. Sales Forecast...................................................................................................................................9
5. Marketing Plan Product/Service..........................................................................................................9
5.1. Marketing Plan Place...................................................................................................................9
5.2. Marketing Plan Promotion.........................................................................................................10
5.3. Production Plan/Service Plan.....................................................................................................10
6. List of service delivery steps..............................................................................................................10
6.1. List Fixed capital needed and their cost.....................................................................................10
6.2. List Fixed Assets needed and their cost.....................................................................................11
6.3. Factory/plant location and layout..............................................................................................12
6.4. List of Raw Materials Needed....................................................................................................12
6.5. Staff cost....................................................................................................................................13
6.6. Factory overhead Expenses /Variable cost................................................................................13
6.7. Fixed cost...................................................................................................................................13
7. Organization And Management Plan.....................................................................................................13
8. Financial Plan.....................................................................................................................................14
8.1. Capital Requirement..................................................................................................................14
8.2. Yearly sales plan.............................................................................................................................16
8.3. Yearly Operational cost plan...........................................................................................................17
8.4. Yearly cash flow statement.............................................................................................................18
9. Annual Profit And Loss Statement.....................................................................................................19
10. Balance sheet.................................................................................................................................20
11. Appendix........................................................................................................................................20

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Executive Summary

Gada Computer Solution Micro and Small Enterprise will provide computer network and hardware
service and technical consulting (Install, configure and Maintenance service) to local small businesses.
The enterprise will focus on marketing responsiveness, quality and retaining customer relations.

Gada Micro and Small Enterprise will be formed as an SME enterprise having 3 members who
graduate in the occupation of Information Communication Technology in Degree from Adama Poly-
Technic College Satellite Campus. Gada Micro and Small Enterprise will serve customers in the
local Adama City. In the 12 month of our plan, we will move into a leased office space. As our service
sales increase, we will have additional members.

Start-up Funding and Financials

To get Gada Micro and Small Enterprise started the owners are providing cash saved from the
members of the business during their stay on their training and assets. We are also seeking a short-term
loan from Cooperative Bank of Oromia and other Local loan short term loan providers if necessary,
to be secured with the owner's home equity, and repaid within three years. Our conservative sale
forecasts, based on industry research within the local area, Project large sales in month one, steadily
increasing through month twelve. To reach these goals, we will use a quality service and average price
advertisement customer attraction system to exploit our competitors' weaknesses. With good cost control,
we will see a modest, yet comfortable, net profit the first year, even after moving into a leased space and
adding additional members.

Company Summary

Gada Micro and Small Enterprise is a Share enterprise located in Adama City , owned by Three SME
members. Gada Micro and Small Enter prise will grow in one year from a Three-members, rent-office
based shop to a profitable. We will build the necessary infrastructure to quickly and efficiently respond to
customers' computer needs, guaranteeing speedy, friendly, competent, and cost-effective technical support.

Company Ownership or Legal Form of the Enterprise

Gada Computer solution Micro and Small Enterprise was initially envisioned as a SME share in the
renting shop. However, the forecasting of our marketing demand will suggest a much higher sales potential than

originally imagined, and Gada Computer Solution Micro and Small Enter prise will be reformed as
an Gada Computer Solution Micro and Small Partnership. This change will provide additional

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legal protection for the owners, and will also streamline the financial operations of the company as we expand the
personnel to 10 within the next three years, lease a separate space for offices, and purchase company motor cycles.

The owners, has a qualification of Degree completion certificate from APTC in the qualification of Information
Communication Technology having experiences in the fields of technical support, networking, and computer
training and repair. The members has also spent at least three years industry experience from their cooperative
training and they know very well the computer network and PC repair need of small businesses and offices.

Start-up Summary

Total start-up expenses include initial expenses for establishing purchase of network toolkit, computers, printer,
doing our pre-opening advertising and raw materials. Exact allocations are shown in the table 7.

The bulk of our start-up requirements are asset needs: we need diagnostic and repair equipment, half of which will
be purchased by the owners from their own pocket savings. We are treating this equipment as assets because we
expect it to last at least five years, and to have some re-sale value when we are through with it; we will buy
additional expensed equipment in years two and three. Although we will keep expenses to a minimum for the first
three months, before we move, we will also need cash at start-up, to see us through the next several months with a
positive cash balance.

A total of 28,018.00 initial capitals required to start our business. We plan to fund our total start-up requirements
direct owner investment (including the contributed assets).

Contact Addresses

Mobile:- 0919-52-19-22

E-mail:- abdimajor2020@gmail.com

1. Introduction
1.1. Company Description

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 Gada Computer Solution Micro and Small Enterprise will be located in Oromia ,Adama at Franko

The Computer Solution service will be wholly owned and operated by Abdi Major, Bekelcha

Abdulaziz, Dawite Deneke. The General Computer Solution service will serve a variety of
Maintenance, printing, copy, laminate, writing service selling the equipment of our service
1.2. Objective
Our Objective is a growth-service oriented business. Its five years goal is to become a
regional leader in Maintenance, printing and copy machines with shops in the Adama
City area. With this in mind, the objectives over the next three years for Photocopy shop
are sated.
1.3. Mission
mission is to establish a standard and world – class business services that will make
available a wide range of services and products as it relates to the service offerings in the
business center services industry at affordable prices to the residence of Adama and
other locations in the state of Oromia where we intend positioning our Business like
Photocopy shops.
Gada Computer Solution Micro and Small Enterprise do not intend to start a business services
center in one location; our intention of starting a business services center is to build a
standard business like Computer Solution in strategic locations not just in Adama, but all
though key locations in the state of Oromia.
1.4. Vision
Our vision is to build a business services that will have active presence all over major
locations in Adama.

2. Owner(s) profile
No Name Address Qualification Function in the Relevant experience

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 business
1 Abdi Major Adama BSC Technician 0 years
2 BekelchaAbdulaziz Adama BSC Technician 0 years
3 DawiteDeneke Adama BSC Technician 0 years
Table 1: list of owners profile

Business Contribution to the Economy

This business plays a great role in the economy to the national revenue by contributing personal and business taxes,
alleviating unemployment problem by creating job opportunity for the business owners as well as part time workers.

The legal form of the business will be:

 Legal form:The legal form of the business will be:

 □ Sole proprietorship √ partnership □ limited company □ Corporation
Reason for choosing this legal form
 Because we learn Entrepreneurship

 Contact address: Eastern shoa Adama City

 Tel.+251919521922
 E-mailabdimajor2020@gmail.com

Type of business

 􀂉 Manufacturer √ Service provider􀂉 Retailer 􀂉 Wholesaler

Brief description of the business idea

 services

 Target Market

3. MARKETING PLAN

3.1. Description of the Product

Gada Computer Solution Micro and Small Enter prise is a Computer Network service giving enterprise
setup in East Shoa Zone Adama City around Franko. This area is selected by the business because it is easy to
access and visited by many customers. Our target market will focus on Adama City and the surrounding
Woredas. Market research indicates there is an abundance of business for a small company such as our
businesses.

As there is no direct competitor with our business we do have 100% market share. Gada Computer
Solution Micro and SmallEnterprise has decided to focus on the small business market and large
companies, as these customers typically don't have a computer network, but have stand alone computers.
Gada Computer Solution Micro and SmallEnterprise will offer an affordable, on-demand service for
these customers. We can also offer maintenance agreements that generate additional monthly income.

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 3.2. Business Location of our business
 Location of our business isAdama City at Franko

The Reason for choosing the location of theour business:

 Franko is The Central Market

How to distribute the product to customers?

 Directly to customers

3.3. Market Area

In Geographical area

 Adama is Located in the East Shewa Zone 100 km south east of the capital, Fin fine, the
city sits between the base of an escarpment to the west, and the Great Rift Valley to the
east.
 Adama is a busy transportation center. The city is situated along the road that connects Fin fine with Dire
Dawa. A large number of trucks use this same route to travel to and from the seaports of Djibouti and
Additionally, the new Fin fine Railway runs through Adama.

 So The market area are Best of Best

Main Customers of our Business are youth

3.4.Market Share

City Regional Rank Birr In million % Region % country

Adama 1 865 22.8 1.9
Mojo 2 300 8.3 1.8
Asalla 3 285 8 5.3

4. Marketing Plan Price

Our business sets its service price to be 9,000.00 Birr for the installation, configuration and
maintenance of a computer network that spans from <=4 peer computers and 18,000.00 for <=8
peer computers. The reason for setting this price is:

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  Our profit strategy is to make 50% of a total cost incurred for a service

 we add maintenance, after sales services on this price

4.1. Sales Forecast

Month Projected Sales
Volume Amount in Birr
Jan 3000 45,000
Feb 4000 60,000

5. Marketing Plan Product/Service

Gada Computer Solution gives services on Installing, configuring and maintaining computer networks
as a general. Our business is characterized by its qualified personnel giving quality services, on time
response, dependable service delivery and reasonable price as well as best customer handling strategies.

Our business gives free after sales service maintenance for those customers who have got our business
services. Our business uses this approach because of the following main points:

 Maintenance prices are already added on the installation and configuration

 Good customer handling and advertisement

5.1. Marketing Plan Place

Gada Computer Solution Micro and Small Enterprise is a Computer Network service giving
enterprise setup in East Showa Zone Adama City around Franko. This area is selected by the business
because it is easy to access and visited by many customers. Our target market will focus on Adama City
and the surrounding Woredas. Market research indicates there is an abundance of business for a small
company such as our businesses.

We are providing our services directly to the intended customers by the team members of the business.
This is due to the nature of the business.

5.2. Marketing Plan Promotion

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  Advertisement
 Personal selling, etc.

Our business may use different types of advertisement strategies. These advertisement methods may
include printed materials like business cards, posters, brochures, personal selling, and also word of mouth.

5.3. Production Plan/Service Plan

 Communication with customer

 Gather data on Business requirements of the customer
 Implementing the project based on the agreement
 Acquire raw materials
 Prepare the raw materials
 Cut and arrange the cable using color code
 Crimp the cable
 Installing trunk
 Put the cable in the trunk
 Attach the wall outlet
 Connect the cables to the computers and switch

6. List of service delivery steps

6.1. List Fixed capital needed and their cost

No Item Quantity Amount Bir

1 Land 300 kare meter 2 mil

2 Building Graound +2 3mil

3 Machine 15 30,0000

6.2. List Fixed Assets needed and their cost

No. Item Unit Quantity Unit Price Total Price
Birr Cen Birr Cen

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1 Computer PCs 1 14000 00 14000 00
2 Printer “ 1 8000 00 8000 00
3 Network toolkit 1 1500 00 1500 00
4 Crimper “ 2 500 00 1000 00
5 Router “ 1 5000 00 5000 00
6 Drill “ 1 4000 00 4000 00
7 Scriw driver “ 1 500 00 500 00
8 Table “ 2 1000 00 2000 00
9 Chair “ 3 300 00 900 00
10 Devider “ 1 1500 00 1500 00
11 Destbin “ 1 100 00 100 00
12 Shelf “ 1 500 00 500 00
13 External DVD-ROM “ 1 2000 00 2000 00
16 Blower “ 1 500 00 1000 00
Total 0 28,500 00
Table 2: list of fixed assets needed to start the business

 How to maintenance
 Maintenance and Repair ( Optional) =schedule
 Sources of Equipment = local
 Planned Capacity =per day
 Future Capacity optional
 Terms and Conditions of Purchase of Equipment

6.3. Factory/plant location and layout

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 Figure 1: layout of the business center or office

6.4. List of Raw Materials Needed

No Raw materials needed per DIMENSION Unit QUANTITY UNIT TOTAL
Month /Specification/ COST COST
1 Network cable UTP cat 6a Meter 10 6.00 60.00
2 RJ-45 Pcs 6 3.00 18.00
3 Trunking 14x10 Meter 10 50.00 500.00
4 Network walloutlet Single slot Pcs 2 150.00 300.00
5 Switch D-Link 8 port Pcs 1 1500.00 1500.00
6 Fisher Middiam Pcs 10 2.00 20.00
7 Network Tester 9 volt Pcs 1 100.00 100.00
Total 0.00 2,498.00
Table 3: list of raw materials needed per month

6.5. Staff cost

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 No Qualification Position Salary/month Remark
1 BSC Technician Manager 12,000
2 BSC Manager 13,000
3 BSC Technician 11,000
4 BSc Technician 11.000
Total 47,000
Table 4: list of staff cost per service

6.6. Factory overhead Expenses /Variable cost

No Overhead expenses Amount/ Month
1 Indirect Labor Cost 3000.00
2 Communication costs 1000.00
3 Transportation 1000.00
4 Legal formality Agreement 1000.00
Total 0.00
Table 5: list of overhead expenses (variable cost) per service

6.7. Fixed cost

S/No Expenses Amount
1 Rent 7000.00
2 Salary 4,800.00
Total 11800.00
Table 6: list of fixed expenses per month

Production costs of each item to be produced

- Raw materials per service = 968.00

- Direct labor per month = 4,800.00

- Factory overhead expenses per service =460.00

7. Organization And Management Plan

The organization chain of command looks like the following diagram. All members are work
together but for the chain of command and controlling the business technical manager
coordinates the business and the remaining members are generate and submit different reports
for his. One of the technicians is works the role secretary and he/she prepare payroll, buy raw
materials and collect revenues.

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 Figure 2: organizational structure of the business

8. Financial Plan

8.1. Capital Requirement

Capital Requirement/Project cost? Amount

Fixed Assets
 Land 0.00
 Building 0.00
 Equipments 19,950.00
 Others if any 0.00
Total Fixed Asset 19,950.00
Pre-Operating Expenses
 License & others 600.00
Total Pre-Operating expenses 600.00
Working Capital
 Raw Materials cost 968.00

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  Salary expense 4,800.00
 Rent expense 700.00
 Other 1,000.00
Total Working Capital 7,468.00
Total Capital Requirement 28,018.00
Table 7: list of capital requirement

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 Gada Computer Solution SME

8.2. Yearly sales plan

Month 1 2 3 4 5 6 7 8 9 10 11 12
Install, Price 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00
Configure, Quantity 2 2 3 4 2 3 1 2 3 4 5 6
maintenance Revenue 18,000.0 18,000.00 27,000.00 36,000.00 18,000.00 27,000.00 9,000.00 18,000.00 27,000.00 36,000.00 45,000.00 54,000.00
0
& network
from <=4
peers
Install, Price 18,000. 18,000.0 18,000.0 18,000.0 18,000.0 18,000.0 18,000.00 18,000.0 18,000.0 18,000.0 18,000.0 18,000.0
Configure, 00 0 0 0 0 0 0 0 0 0 0
maintenance Quantity 2 1 3 1 1 2 1 1 1 2 1 3
& network Revenue 18,000.00
from <=8 36,000. 18,000.0 54,000.0 18,000.0 18,000.0 36,000.0 18,000.0 18,000.0 36,000.0 18,000.0 54,000.0
peers 00 0 0 0 0 0 0 0 0 0 0
Install, Price
Configure, Quantity
maintenance Revenue
& network
from <=12
peers
Install, Price
Configure, Quantity
maintenance Revenue
& network
from <=16
peers
All services Revenue 54,000.0 36,000.00 81,000.00 54,000.00 36,000.00 63,000.00 27,000.00 36,000.00 45,000.00 72,000.00 63,000.00 108,000.0
0 0
Table 8: yearly sales plan

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 8.3. Yearly Operational cost plan
Month 1 2 3 4 5 6 7 8 9 10 11 12
Install, Quantity 2 2 3 4 2 3 1 2 3 4 5 6
Configure, Unit cost 968+460=1428 5,712 5,7 5,71 5,712. 5,712. 5,712.0 5,712.0 5,712. 5,712.0 5,712.0
*4=5712 5,712.00 12.00 2.00 00 00 0 0 00 0 0
maintenance &
Total (5712*2)=1142 11,424. 17,136. 22,848 11,424 17,136. 5,712.0 11,424.0 17,136.0 22,848.0 28,560.0 34,272.0
network from cost 4 00 00 .00 .00 00 0 0 0 0 0 0
<=4 peers
Install,
Configure,
maintenance & Quantity 2 1 3 1 1 2 1 1 1 2 1 3
network from
<=8 peers
Unit cost 11,424.00 11,424.0 11,424.0 11,424. 11,424. 11,424.00 11,424.00 11,424.00 11,424.00 11,424.00 11,424.00
0 0 00 00 1,424.00
Total 11,424.0 34,272.0 11,424. 11,424. 22,848.0
22,848.00 11,424.00 11,424.00 11,424.00 22,848.00 11,424.00 34,272.00
cost 0 0 00 00 0
Install, Quantity
Configure, Unit cost
maintenance & Total
cost n
network from
<=12 peers
All services Total 34,272.00 22,848. 51,408. 34,272 22,848 39,984. 17,136.0 22,848.0 28,560.0 45,696.0 39,984.0 68,544.0
operation 00 00 .00 .00 00 0 0 0 0 0 0
cost
Table 9: yearly operational cost plan

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 8.4. Yearly cash flow statement
Pre-
operating
Months
Particulars period 1 2 3 4 5 6 7 8 9 10 11 12
Cash at the beginning of 7468
21,696.0 29,348.0 53,440.0 67,668.00 75,320.00 92,836.00 97,200.00 104,852.0 115,792.0 136,596.0 154,112.0
the month 0 0 0 0 0 0 0
Cash Inflow
Equity 28,018.00
Borrowings 0
Cash sales 0 54,000.0 36,000.0 81,000.0 54,000.0 36,000.00 63,000.00 27,000.00 36,000.00 45,000.00 72,000.00 63,000.00 108,000.0
0 0 0 0 0
Collection AR 0
Other income 0
Total Cash Inflow 28,018.00 61,468.0 57,696.0 110,348. 107,440. 103,668.0 138,320.0 119,836.0 133,200.0 149,852.0 187,792.0 199,596.0 262,112.0
0 0 00 00 0 0 0 0 0 0 0 0
Cash outflow
Pre- operating expense 600
Operating expense 0 34,272. 22,848. 51,408. 34,272. 22,848.0 39,984.0 17,136.0 22,848.0 28,560.0 45,696.0 39,984.0 68,544.0
00 00 00 00 0 0 0 0 0 0 0 0
Purchase of fixed assets 19,950.00
House Rent 700 700 700 700 700 700 700 700 700 700 700 700
Salary Expense 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00
Taxes payable 53,621.92
Total Cash outflow 20,550.00 39,772.0 28,348.0 56,908.0 39,772.0 28,348.00 45,484.00 22,636.00 28,348.00 34,060.00 51,196.00 45,484.00 127,665.9
0 0 0 0 2
Cash at the end of the 7,468.00 21,696.0 29,348.0 53,440.0 67,668.0 75,320.00 92,836.00 97,200.00 104,852.0 115,792.0 136,596.0 154,112.0 134,446.0
month 0 0 0 0 0 0 0 0 8
Table 10: yearly cash flow statement

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 9. Annual Profit And Loss Statement
For the end of the first year
Amount
Sales 675,000.00

Service Cost (428,400.00)

Gross Profit 246,600.00

Operating Expense

 Rent expense 8,400.00

 Salary Expense 57,600.00

 Pre-operating expense 600.00

 Depreciation expense 4,080.24

Total operating expense (70,680.24)

Net profit before Tax 175,919.76

Less :- Estimated income Tax (53,621.92)

Net profit 122,297.84

Table 11: Profit and loss statement

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 10. Balance sheet
For the end of the first year

Assets Amount Liabilities Amoun

t
Assets Liabilities
Current Assets Current liabilities
Cash at hand and Bank 134,446.08 Accounts payable
Accounts Receivable Tax payable
RM inventory Others payable
WIP inventory Total current liabilities 0.00
FG inventory Long term liabilities
Total current Assets 134,446.08 Loans
Fixed Assets Others
Land Total long term liabilities 0.00
Building Owners equity
Equipments 15,869.76  Capital 28,018.00
Others  Profit 122,297.84
Total Fixed Assets 15,869.76 Total owners equity 150,315.84
Total Assets 150,315.84 Total liabilities and 150,315.84
capital
Table 12: Balance sheet

11. Appendix
1. Consumable Materials Required per Number

S. Item (s)/Equipment/tools Dimension Quantit Unit cost Total

/Specification y
1. Network cable Cat 6e 100m 6 600
2. RJ-45 Cat 6e 100 3 300
3. Blank DVD-ROM 4.17GB 10 10 100
4. Blank CD-ROM 700MB 10 5 50
5. Printing Paper A4 80gm/dosta 5 85 425
6. Battery cell 9Volt 1 50 50
7. Trunk 14x20cm 20m 20 400
8. White board marker Artline black color 5 12 60
9. Permanent marker Artline different color 5 12 60
10. Flip chart Plain Paper 1 70 70

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 S. Item (s)/Equipment/tools Dimension Quantit Unit cost Total
/Specification y
11. Printer toner For 4250 hplaserjet printer 1 850 850
12. Network Windows Ultimate 5 20 100
13. Network Windows Ultimate 5 30 150
14. Windows XP professional Service Pack III 5 15 75
15. Windows 10 Ultimate 5 30 150
16. Cobra driver 5 30 150
17. Wall outlet Single hole 2 150 300
18. Fisher Medium size 50 1.00 50.00
19. Screw Medium size 50 1.00 50.00

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