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1.Executive Summary
1.1 Nature of the business
As the name implies that our business center will have to be designed to provide different photo graphic
services for the society. This photo shopping business will provide high quality and decorative photo and video
service for the entire customers at the right time with moderate price.
1.2 Statement of financial needed
Our business plan initial capital will be 1,200,000 that will be covered by partners and borrowings, 700,000
capitals will be covered by partners by contributing 70,000 each. The remaining 500,000 birr will be covered by
borrowing from commercial bank of Ethiopia. This capital is required to fulfill the basic components of our
business center like, business site (studio), desktop computers, laptops, camera, camera light, furniture’s,
software’s etc.
1.3 Mission of the photo house service
Light photo house have its own mission to satisfy our customers and clients. The beneficiary of photo service
prepares different photo for the society in appropriate way. The other mission of this business center will be to
meet the needs of the customer according to their own interest. And also give outstanding contribution for
digital world.
1.4 Objectives of the business
The general objective of the business center is to provide various types of photographic service for the society.
The photograph that the customers’ needs will be for birthday, marriage, graduation, weeding, celebrations
(holidays), meeting and other ceremonial activities are the essential points for the customers. So in this time
they will acquire fast and qualified photo service. Moreover, the business also aimed at to get income or profit
as well as it will create job opportunity.
In addition to this the business will have appropriate role to create qualified person in electronics technology
and digital studios.

Generally, As it has been described before the initial capitals will be obtained from commercial bank of Ethiopia
which can be paid in the future 500,000birr and 700,000 birr covered by partners. Our business will provide
quality photo service for the customers; since a photograph is essential everywhere and every times people are
forced to use photograph. It may be for school, university, and other related issues photo is very essential
instrument. Photo is also used to retain events that human beings have done during their life time. In other
word people used photo as a memorization purpose. So this business center will design to provide all the above
mentioned service according to their request. For instance, if an individual’s needs photograph service we will
give photograph service within a short time and high quality with different styles, design, and decorations in
order to satisfy the needs of the client according to their choice, because giving quality and timely services for
the people enable us to have more customers. Our photograph service will give not only for students but also it
will give for different other ordinary people. Their academic formalities are also prepared with help of photo,
because without photo any academic certificate will not be prepared. When the people want photo during
festivals, weddings, birth days most people capture the moment by photographs. Because it reflects the entire
activities during their ceremonial occasions. Our main target is to acquire large number of clients that interact
with us and suggest ideas about our job. It helps improve our photographic materials by changing the earlier one
with the latest photo and video devices. It also develops our motivation to further more than ever before.

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 2.Description of the Project and entrepreneur Involved
Light photography is a private limited company under establishment through a partnership form of organization
operating under the Ethiopian law. The partnership has ten members interested to make their own business which is
profitable for themselves and while meeting the needs of the society.

Name Nationality
Hermela Dawit Ethiopian
Abiy Irto Ethiopian
Henok Kitessa Ethiopian
Ashenafi Degemu Ethiopian
Nuru Hussen Ethiopian
Yemane Afera Ethiopian
Biniam Yemane Ethiopian
Sileshi Asfaw Ethiopian
Faya Ethiopian
Zinabwa keno Ethiopian

3.Sales and Marketing

3.1. Sales
3.1.1. Product(service) Description
The primary services this photo house will gives to its customers are described as follows:
Photo
 The following are major services provide by photo house
 Large size photo
 Medium size photo
 Small size photos
 Color photos
 Wallet photos
 Passport size photos
 This business center will provide not only hard copy photos but also soft /electronic copy ( for Facebook
or Instagram or for twitter and extra)
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 Video
Light photography will provide video service for client, for instance in the time of graduation, weeding,
birthday, small conferences, holidays, celebrations as well as different annual and special occasions.

3.1.2. Potential Competitors

Currently there are some competitors in Arba Minch town.

 The competitors will have the capacity to provide different photograph services and they will use
different ways to advertise their business in order to increase the service giving capacity, level of the
photo house and the number of clients. Therefore, the competitors in the market may not welcome us
when we enter in to the market.
 There are mainly three experienced competitors in the market. So the information about the three
more experienced competitors of in their photo house (shops) in Arba Minch town are as follows:
 Table 1 : Name of competitors

No Name of the competitors Address

1 Omo valley photography tour Arba Minch

2 Gallery photo studio Arba Minch

3 Amira photo studio Arba Minch

 The above all mentioned competitors are found around our business center.

3.1.3. Market Area

The service area of Light photography is geographically bounded in the town of Arba Minch. Since photograph
is one of the demands for humans ideally almost all residents are supposed to use it for different purposes.
According to a study, Ethiopians fell in love with photo long time ago, and it also evolved into one of major
parts in their day to day activities. In the service provider since photograph is the one which doesn't have close
substitute to satisfy the need it is expected that the demand for the photos is very high in the town.

3.1.4. Targeted Customers

The company is targeted to Arba Minch market. We are a part of photo house business services. So our target is
the medium and the lower economic level society including students. Therefore, our market target is providing

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of services with in the low cost. Specifically, for university photography (in graduation ceremony, and different
day celebrations), for weddings, birthday ceremonies are our target customers of our services.

3.1.5. Selling Price

The price of each service should be tentative and may vary from time to time. Because of the price, is mainly
determined by the number of customers, and amount of income. For most small and new businesses, having the lowest
price is not a good policy therefore we want to compete equal price with other competitor. But in case, if there is high
income the business will discount the price of photographs.

The price of photos is described as follows: -

Table 2: Types of photo and its price

No Type of photos Price(birr)

1 Large size photos 180
2 Medium size photo 90
3 Small size photos(include passport size) 15
4 Color type photos 15
5 Wallet photos 25
6 Soft copy photos(for Facebook ….) 25

3.1.6. Service Forecast

Light photography is expected to serve a minimum of 500 people per week, these service will be designed depend
up on the nature of customers and they need photo professionals so that the photo house in the future expected to
improve the following things: -

1. Quality of photo

2. Instruments (photo graphic materials)

3. Provide multiple options in photo style.

4. Consumption of time to produce quality photos in the business

5. Different photo options. Therefore, the product in the future is expected to produce more quality and more
efficient products.

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 3.2. Marketing
3.2.1. Marketing Strategy(segmentation)

 Market segmentation based on age

 The employees mostly from the age of 19-25 years old.
 This age groups helps them to do effectively without tiredness and even enable to attract
customers.
 And this age region is very efficient for this activity.
 Market segmentation based on sex
 The employees are both male and female: it consists 8 males and 2 females. The number of
males are greater than that of female because our business center is very challenging work.
 But it does not mean that female are not opposed (resist) the challenges even though limited
the number of female.
 Market segmentation based on income

 All workers are self-employees on their own business center, therefore they earned
according to the share and the income is also distributed in the same manner. It
shows the amount of income that will be earned.

3.2.2. Marketing Budget (Promotion)

 It is a necessary activity that the photo should advertise the overall quality of its service and types of
services. It will be provided to customers by using different means of promotion about the business
company.
 Such promotions are organized or transmited through broachers, leaflets, by stamping banner
around public places etc.
 We will also use other method of advertising like word of mouth and network of friends or
professionals.

4.Production
4.1. Production Process
Our production is provided with quality materials imported from Addis Ababa to help us keep the standard
outcome. We use the necessary tools and also we take pictures and videos at ceremonies while keeping the
aesthetic value and beauty of the activities. We use the latest application software and edit the videos and
photos with the help of our skilled and professional coworkers.
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 4.2. Future outlook & trends
Since the photo house business is very interesting and profitable business we plan to get more recognition and
create an everlasting reputation by giving the customers quality services. We will also update and improve our
production process to help us keep the reputation we built. We will also ask the customers for suggestions and
advices to meet their demands. It also enables us to establish another business centers and we will be competitive.
This means that when our initial business (photo house) develops, it will help us set up additional business centers
that go hand in hand with the photograph business .For example, private stationary house, maintenance Audio
center, internet cafe and computer center. We will also follow the latest trends and fashions to attract customers.
And also we will help unemployed people by creating job opportunities. Because man power will be needed to
facilitate (run) this business activities to help us grow.

4.3. Equipment Needed

On top of that, our photography will use different tools that have basic function and necessary function for the
shop. We can summarize by using the following table with the price they cost.
Table: Technology and Equipment Budget

No. Item Amount in Birr

1 Camera 91,000.00
2 Photo print machine 306,000.00
3 Light (LED camera light) 51,000.00
4 Computer/desktop 55,000.00
5 Vehicle 299,000.00
6 Cash register machine 7,500.00
7 Office chairs and table 68,750.00
8 Generator 35,000.00
Total 913,250.00

4.4. Land and Building Requirement

Light photography will rent a studio based on the market price from the selected areas it could be from
government or private houses based on its convenience for the business. We expect rent expense for the studio
because it requires a wide space for the studio, editing room and photo print machine. Is

4.5. Organizational Chart

 The organizations of the company will have a coherence structure to facilitate the company’s duty.
 Then the photo house organizational structure will seem to like the following.

General Manager

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 Vice (Assistance) of manager

Employee (partners)

Customer

4.6. Role and responsibility of the member of the Light photography

privilege activity
General Manager: - He has a power or responsibility to control the overall activities of the Light photography house. He
will also formulate the market plan of the photo house by discussing.

Some other duties of the manager are

 Control all activities that can be done.

 Arrive on time.
 Respect other member’s right.
 Coordinate activities of the employee.
 Keep business organizations secrets.
 Check the organization goals that can be meeting or not with the partners.

Employees:

 They are responsible for the general manager

 Respect the customers and will give effective service to the community as a whole.
 Arrive on time
 Perform efficiently and effectively
 Accomplish their activities by ethical manner

4.7. Form of business

The Light photography will established as a private business which will operated by the 10 partners that are listed in
the previous pages. We have a dream to achieve our target by working hard. We will have an agreement on the
ongoing give of service and life plan of the business. These agreements are used to take on different difficulties
facing in reduction of the service that will provide Light photography in a peace full way. That means discussing
clearly, about the business plans, about how to work effectively how to satisfy our customer and also how to reduce
the price of photos in order to increase the number of the customers, to become more successful.
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 4.8. Business Experience and Qualifications of the Entrepreneurs

As mentioned above the business constitutes seven interested individuals. All of them having a qualification and
background experiences.

Name Nationality Qualifications Experience

Nuru Hussen Ethiopian B. Management 4 years
Ashenafi Degemu Ethiopian Marketing 2 years
Biniam Yemane Ethiopian Photography 3 years
Yemane Afera Ethiopian Graphics design 2 years
Hermela Dawit Ethiopian Accounting 5years
Sileshi Asfaw Ethiopian B.Administration 4 years
Henok Kitessa Ethiopian Photography 3 years

4.9. Authority participant

 We will have the right to open and close the Light photography house at any time.
 We will respect each other because we believe in inseparable and complicated authority.
 We will discuss together without the intervention of the other we will have a right (authority) to:
a. Increase the number of employees.
b. Increase the size of the Light photography house
c. Change the working place.
d. Opening different branch

5.6. Research and development

 To increase the demand for our photo service we will need to identify the need for potential customer.
 For identification of this we will conduct research periodically. For conducting research, we have
enough man power that has enough educational and work experience in research.
 This helps us to take the competitive advantage over the competitors.
 Based on the research in the future we will have high involvement in this business by creating branch in
other place of Arba Minch.

5.Financial Plan
5.1. Income statement of photo house
 Income statement means a summary of the revenue earned and the expenses incurred of doing the
business.

 And it will show the difference between income from service provided or goods sold and the amount
spent to operate the business.

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  From this point of view will present the income statement as follows.

 Table 3 : Forecast income statement

Light Photography House Service Forecast Income Statement For First year

Revenue * Service revenue 1,000,000

Expense

 Rent expense 60,000

 Utilities expense 12,000
 Advertising expense 5,000
 Interest expense 35,000
 Other expense 50,000
 Total expense =162,000

Net income before tax 838,000

Less tax 282,650

Net income after tax = 555,350

Government loan payment 250,000

Net income =305,350

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 Explanation: Light photography house services giving company forecast income statement in above table and
speculate to get 1,000,000 birr from service revenue and incur expenses with the above listed amount of money

.  Expenses: Rent expense (for using the place which is an operating activities are takes place or simply for renting
purpose from the owner of the operating house),

 Utility expense (for using different service provided by the government like electric city, water and so on),

 Advertising or promotion expense,  Interest expense (interest that is imposed on money borrowed from
commercial bank of Ethiopia which is 500,000 * 7% = 35,000 birr).

 Other expense in this case other expense means for instance like transport expense, miscellaneous expense,
training cost and also include other expense that will incurred in this company by owners for different purpose.

 Net income before tax is revenue minus total expense which is 1,000,000 – 162,000 = 838,000 birr.

 Tax: according to new Ethiopian business income tax Proclamation No. 979/2016 mention Business Company get
revenue above 130,800 Ethiopian birr pay tax by 35 % with deduction of 18,000. Therefore 1,000,000 * 35% - 18,000
= 282,650

 The government loan payment is done per 2 years and the first year amount of borrowing from commercial bank
of Ethiopia is 250,000 and at last the service providing company will get 305,350 birr of net income.

5.2. Balance sheet of the photo house

 Balance sheet show the firm’s financial position reports on a given data and
 It shows (tells) about the three critical term
1. The amount and types of property the business owns
2. The amount owed to creditors.
3. The owner’s propensity (interests)

Table 4: Forecast balance sheet

Light photography Service Forecast Balance sheet For First year

Asset
Cash 305,350
Asset Supplies 50,000
Equipment 913,250
Total asset 1,218,650
Liabilities and owners’ equity
Liability
Account payable 50,000
Owners’ equity
Owners capital 1,178,650
Total capital and owners’ equity = 1,218,650

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Explanation: The cash amount of this balance sheet is obtained from statement of cash flows which means cash of
balance sheet statement is equal to cash at the end of the period in statement of cash flows.
Supplies: which indicate purchase of supplies on credit. Light photography house service will purchases for 50,000 birr
from different supply company computer paper or photo paper, color and other supplies expected to last for year. This
transaction is a purchase on account (a credit purchase). Assets increase because of the expected future benefits of
using the paper and supplies, and liabilities increase by the amount 50,000.
Equipment: which indicate purchase of equipment for cash. The photography house will purchase photo house
equipment for 913,250 cash. Which is Photo printer machine 306,000 birr, camera (7D) 71,000, camera light 51,000,
computers 55,000 and office equipment 68,750.This transaction results in an equal increase and decrease in total assets,
though the composition of assets changes. Cash decreases 913,250 birr, and the asset Equipment increases 913,250 birr.

5.3. Security for Loan

To receive the loan from the commercial Bank of Ethiopia, we have decided to assign a house of one of our
partners worth approx. 1,500,000 as collateral for the loan.

5.4. Statement of cash flows

 The statement of cash flows provides information on the cash receipts and payments for a specific
period of time. The statement of cash flows reports

1. The cash effects of a company’s operations during a period,

2. Its investing transactions,

3. Its financing transactions,

4. The net increase or decrease in cash during the period, and

5. The cash amount at the end of the period.

Table 5 : Forecast statement of cash flows

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 Light Photography House Service Forecast Statement of Cash Flows For First year
Cash flows from operating activities

Cash receipts from revenue 1,000,000

Cash payments for expenses 162,000

Net cash provided by operating activities =305,350

Cash flows from investing

activities Purchase of equipment 913,250

Cash flows from financing activities

Investment by owners 700,000

Drawing by owners 0.00

Net increase in cash =305,350
Cash at the beginning of the period 0
Cash at the end of the period =305,350

5.5. Loan Repayment Schedule

Loan Amount: 500,000

Annual Interest Rate: 7%

Loan Period in Years: 2

Beginning Balance Interest Principal Ending Balance

1 500,000.00 35,000.00 250,000 285,000
2 250,000 35,000 250,000 0.00

6. Assessment of risk
6.1. Weakness of the photo house service

 To do so everything has their own strength and their own weakness limitation sides.
 Then some of the photo house weakness or limitations will be as follows:

– Shortage of materials /facilities

- Wants a great expenditure

- Shortage of power electricity

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 - There may be another company which will provide the same service in this case fear of our
business may become down /declines.

- When another business (companies) will reduce the price of photos in this case the customer
shifts to that company. The demand our photo house becomes low so this results losses.

6.2. Strength (importance) of photo house

- Showing the real physical posture of the person

- Memorize the former life by understand and the previous body sizes, style etc.,

- Wants a short period of training to operate

- Will be used as a bridge to operate large business

7. Appendix
 As mentioned earlier X photo house service uses different equipment in operating activities. Some of them are as
follow:

 Camera (canon EOS 7D camera)

 Light (LED video and camera light)

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 Personal computers

 Photo printer machine

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