AMERICAN COLLEGE OF TECHNOLOGY

DEPARTMENT OF BUSINESS STUDIES

MASTER OF BUSINESS ADMINISTRATION PROGRAM

Feasibility study on inline advertising modeling agency

A Project Submitted to the Department of Business Studies of American
College of Technology
As a Partial Fulfillment of the requirement of the Award of Master of
Business Administration

By
SIFEN DINKESA

Advisor
Dr.BEREHUN MUCHIE

September 2023
Addis Ababa, Ethiopia
 Declaration

I, sifen dinkesa hereby declare that a project work entitled Feasibility Study On inline
advertising modeling agency is submitted to The Department of Business studies of American
College of Technology in partial fulfillment of the requirements for the award of the Master
Business Administration is a record of original work done by me during 2023 academic year
under the supervision and guidance of ___________________________and it has not formed the
basis for the award of any Degree/Diploma/Associate ship/Fellowship or other similar title of
any candidate of any university.

Place: Addis Ababa

Date: September 9, 2023

__________________________________
Signature of the Candidate

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 Certificate
This is to certify that the project work entitled Feasibility Study On inline advertising
modeling agency submitted to the Department of Business Administration, MBA Program in
partial fulfillment of the requirements for the award of the Master of Business Administration
is a record of original project work done by sifen dinkesa during the period 2023 academic year
under my supervision and guidance and the thesis has not formed the basis for the award of any
Degree/Diploma/Associate ship/Fellowship or other similar title of any candidate of any
University and it complies with the regulation and accepted standards of the College.

Name of Advisor: ________________________

Signature: ___________________
Date: __________________

ii
 Approval Sheet
AMERICAN COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES
MASTER OF BUSINESS ADMINISTRATION PROGRAM
TITLE OF PROJECT

BY: sifen dinkesa

Id Number: RMBA-315-21

Approved by:

Advisor

-------------------------- -------------------------- -----------------

Name Signature Date

Internal Examiner

-------------------------- -------------------------- -----------------

Name Signature Date

External Examiner

-------------------------- -------------------------- -----------------

Name Signature Date

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 Acknowledgment

First and foremost, I want to give my thanks to Almighty God/Allah for giving me the chance to
enjoy the fruits of my Endeavour.

Second, I thank my esteemed advisor dr. Tibebe Tilahun and dr.berehun muchie for his /her
incessant guidance, perspicacious thoughts, constructive criticism, and his /her great efforts to
clarify things clearly and easily throughout my thesis writing period.

Third, my profound thanks go to the department head Hailemichael (PhD) for his/her support
and facilities extended throughout this research work.

Fourth, I thank dean of the college Asmamaw Mengistie (PhD ) for the co-operation, support,
and needs rendered throughout my study period.

Fifth, I wish to express my gratitude to my friends, relatives, colleagues, and students for all the
support and help that need to be extended to me for the completion of this study.

Furthermore, my indebted gratitude is expressed to all of my families and friends for their
encouragement in completing this research paper, especially for meseret jaleta (my mom)

Name:______________

Signature: _____________

Date: ___________

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Table of Contents
Declaration ..................................................................................................................................................... i
Certificate...................................................................................................................................................... ii
Approval Sheet ............................................................................................................................................. iii
Acknowledgment ......................................................................................................................................... iv
Executive Summary....................................................................................................................................... 1
CHAPTER ONE: INTRODUCTION .................................................................................................................... 7
1.1 Background of the project ................................................................................................................... 7
1.2 Objective of the Project ...................................................................................................................... 8
1.2.1 General objective ......................................................................................................................... 8
1.2.2 Specific objective ......................................................................................................................... 8
1.3. Statement and Justification of the Problem........................................................................................ 9
1.4. Scope of the project ......................................................................................................................... 11
CHAPTER TWO: PROJECT CONCEPT ............................................................................................................ 12
2.1. Opportunity study ............................................................................................................................ 12
2.2 The project concept and profile........................................................................................................ 13
2.3 Preliminary study .............................................................................................................................. 14
CHAPTER THREE: PROJECT METHODOLOGY AND PROCEDURE.................................................................. 15
3.1. Project Design ............................................................................................................................. 15
3.2 Types of data ................................................................................................................................... 15
3.3 Source of data ............................................................................................................................. 16
3.4 Data collection method and tools ................................................................................................ 16
3.5 Population of the study ............................................................................................................... 17
3.6 Sampling Design ......................................................................................................................... 17
3.7 Data Analysis Methods and Tools .............................................................................................. 17
3.8 Schedule ...................................................................................................................................... 17
3.9 Resource budget .......................................................................................................................... 18
3.10 Limitation of the project ............................................................................................................. 19
CHAPTER FOUR ........................................................................................................................................... 20
PROJECT PREPARATION .............................................................................................................................. 20
4.1. Markets and Demand Analysis ........................................................................................................ 20
4.2. Raw Materials and Supplies ............................................................................................................. 26

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 4.3. Location and Site Assessment.......................................................................................................... 26
4.4. Production Program and Plant Capacity .......................................................................................... 26
4.5. Technology Selection....................................................................................................................... 27
4.6. Organizational and Human Resource .............................................................................................. 27
4.7. Social analysis .................................................................................................................................. 31
4.8 Economic Analysis ........................................................................................................................... 31
4.8.1. Project stakeholders .................................................................................................................. 33
4.8.2 Project beneficiaries’ identification ........................................................................................... 33
4.8.3 Project social cost analysis ......................................................................................................... 35
4.8.4 Project social benefit analysis .................................................................................................... 35
4.9. Financial Analysis ............................................................................................................................ 35
4.9.1 Initial investment cost ................................................................................................................ 38
4.9.2. Production cost.......................................................................................................................... 38
4.9.3. Marketing cost........................................................................................................................... 39
4.9.4. Projection of Cash Flow and P & L .......................................................................................... 40
4.9.5. Financial Evaluation ................................................................................................................. 42
4.9.5.1 Net present value (NPV) ......................................................................................................... 43
4.9.5.2. Internal Rate of Return (IRR) ................................................................................................ 44
4.9.5.3. Benefit-Cost Ratio (BCR) ...................................................................................................... 44
4.9.5.4. Payback Period (PBP) ............................................................................................................ 45
4.9.5.5. Accounting Rate of Return (ARR)......................................................................................... 46
4.9.5.6. Break-Even Analysis (BEA) .................................................................................................. 47
CHAPTER FIVE ............................................................................................................................................. 50
SUMMARY AND CONCLUSIONS .................................................................................................................. 50
5.1 Summary of Findings ........................................................................................................................ 50
5.2. Conclusions ...................................................................................................................................... 55
Reference .................................................................................................................................................... 57
Appendence ................................................................................................................................................ 60

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 List of table

Table 3.1 inline advertising modeling agency Schedule

Table 3.2 inline advertising modeling agency Resource budget
Table 4-1; modeling agency’s Human resource requirements and related annual costs

Table 4-2: Immediate Start Up Expenditures Needed. All figures are in Ethiopian Birr (ETB)

Table 4-3-: Projected Start up Liquid Cash (Reserve) all figures are in (ETB)

Table 4-4: Total Funds needed for modeling agency. All figures are in Ethiopian Birr (ETB)

Table 4-5: inline advertising modeling agency's Projected Marketing Cost Years One through
Four (ETB)
Table 4-6: modeling agency’s Projected Income Statement (P & L). All figures are in Ethiopian
Birr
Table 4-7: modeling agency’s Additional Assumptions
Table 4-8: Depreciation Table for inline advertising modeling agency. All figures are in
Ethiopian Birr ( ETB )
Table 4-9: Beginning and Ongoing Net Cash Flows for the First Four Years
Table 4-10: inline advertising modeling agency’s NPV
Table 4-11: Table to Figure out the IRR based on Various Iterations and Calculations
Table 4-12Given is the Net Income for inline advertising modeling agency for the first four
years at undiscounted amounts.

Table 4-13: Net Income for the inline advertising Modeling Agency for the First Four Years at
Undiscounted Amounts

Table 4-14: Customers & Average Order Size on inline advertising agency Projects per
Customer / models.

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 List of Figure

Figure 4-1; inline advertising modeling agency’s market strategy

Figure 4-2; inline advertising modeling agency’s team org structure
Figure 4-3; inline advertising modeling agency’s project stakeholders

viii
 Executive Summary

Inline Advertising Modeling Agency (IAMA) is an Ethiopia-based advertising modeling agency

and a world-class modeling agency that is located in Addis Ababa, 4 Killo. We have been able to
secure standard and beautiful office facilities in Addis Ababa. We are set to compete in the
highly competitive modeling industry not only in the Addis Ababa market but also in the global
market because our clientele base will not be restricted to Ethiopia.
IAMA provide strong, qualified, and creative models for companies and producers, as well as for
entertainment and productions. Our core services revolve around scouting talent, negotiating
contracts, representing clients, managing models, advertising talent, and coaching. Our staffs are
experienced, talented, and highly creative modeling agents.
In our inline advertising modeling agency, our clients best interests will always come first, and
everything we do will be guided by our values and professional ethics. We will ensure that we
hold ourselves accountable to the highest standards by meeting our clients’ business needs
precisely and completely. The Inline Advertising Modeling Agency was founded by Sifen
Dinkesa. She hails from Ethiopia, Addis Ababa, and has a first degree in CS from CPU College,
a second degree in accounting from Rift Valley University, a graduate modeling position at
Abyssinia Fine Art Institution, and a BAM from the College of ACT MBA (2023).

IAMA Products and Service

The Inline Advertising Modeling Agency (IAMA) aims to maximize profits in the modeling
industry and compete with leading agencies in Ethiopia and globally. Their services include
scouting talent, negotiating contracts, representing clients, managing models, advertising talent
management, training, modeling advisory, acting methods for commercial models, test shoots,
portfolio management, social media influence, marketing, freelance modeling, and assisting
successful clients.

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 IAMA Mission Statement

 IAMA mission is to provide professional and highly creative modeling agency services
that help businesses, individuals, manufacturers, and organizations promote their brands.
We want to build a modeling agency that can compete well with other popular brands in
the modeling agency industry.
 IAMA mission is to provide professional and highly creative modeling services and
other related consulting and advisory services to help businesses and individuals connect
with their clients. We want to build a modeling agency that can compete well with other
leading brands in the industry.
Vision Statement

IAMA aims to become a top-tier modeling agency globally, focusing on model development and
associated services. They understand the time it takes to turn talent into a credible portfolio and
use the best advice tools to help models develop their skills. IAMA's model development
services include physical motion and movement sessions to enhance confidence and improve
photo shoot results. They also use industry techniques to help models utilize their unique drive
and stamina for personalized, genuine results.

IAMA Goals and Objectives

 To represent fashion models in business matters such as auditions, bookings, and contract
negotiations.
 Our business goal is to be one of the leading modeling agencies in Addis Ababa,
Ethiopia, with high-profile clients in the country, Africa, and the world.
 Informed, experienced industry guidance for working with models in a safe, professional
context.
 To support the development of real confidence with training in preparation for model
scouts.
 Availability of a model for the placement of the agency and to check the professional
impact
 To influence models in a positive way with support in developing a healthy self-image.

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 IAMA Values

Honest, personalized modeling support services along with premium client care in a caring,
supportive, patient, and professional environment.

Tips for IAMA Success

A modeling agency's success relies on maintaining harmony among employees and adhering to
the company's vision and mission. The president should guide the company, attend meetings,
conduct performance appraisals, and praise staff for their efforts. Maintaining an open-door
policy encourages honesty and rewards hardworking employees, fostering healthy competition.
A well-structured and supportive work environment is crucial for the overall success of a
modeling agency.

Our Business Structure

Inline advertising modeling agency, looking for competent, hardworking, creative, and client-
oriented individuals to go beyond competing with existing agencies, we are looking for a career
at A.A. The agency has senior management personnel based on their performance for five years
or more. Positions include general manager, creative director, model, human resources and
administration manager, sales and marketing executive, accountant, photographer, customer
service executive, and front desk officer.

SWOT analysis

 Strength

 Ideal place for a modeling agency

 Highly experienced and qualified staff and management
 Access to a pool of talented models
 Availability of various types of services related to modeling

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 The power of our team: Our workforce consists of creative, result-driven, and highly
qualified modeling professionals, having a well-qualified and experienced team in
various fields in the modeling industry.

 Weakness:

 Financial constraints may restrict the publicity and branding of the business.
 A new business that will be competing with well-established modeling agencies in the
city
 Inability to retain our highly experienced and qualified models and employees longer
than we want during the teething stage of the business.
 As a new modeling agency in Ethiopia (Addis Ababa), it may take some time for our
company to break into the market, especially because of the unclear practices of the
existing modeling agencies in the industry or because they are not considered to be
inclusive. This is probably our main weakness.

 We may not have the required cash to pump into promoting our business especially via
main-stream media (TV, radio, newspapers, etc.), the way we would want to.

 Opportunities:

 Rising consumer spending is poised to benefit the industry. As consumer spending rises,
companies will increasingly use advertising campaigns, which include models, to push
products to consumers.
 The online market, new services, new technology, and, of course, the start of new
markets
 It helps promote and spread Ethiopian culture.
 The opportunities available in the modeling industry are massive, considering the number
of individuals and businesses who want to reach out to their target market and increase
their market shares. We are ready to take advantage of any opportunity that is available in
the industry.


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  Threat:

 The arrival of a new modeling agency within our market space

 Low demand during the pandemic will reduce industry profitability.
 Economic uncertainty or downturn
 Liability problems
 The government could change its regulatory status and decide to enforce strict
regulations that can strangle new businesses like ours.
 The arrival of modeling agencies in the same location where our target market exists and
who may want to adopt the same Business model as us.
 The problem of discovering new talents to increase your marketability.

Payment options

Inline modeling agency adopts an all-inclusive payment policy, considering customer

preferences and adhering to Ethiopian financial rules and regulations. This policy ensures
adherence to diverse payment options while maintaining a consistent customer experience.

 Payment by bank transfer

 Payment in cash
 Payment: online bank transfer
 Payment through mobile money transfer

Sales and Advertising Strategies

 Introduce your modeling agency by sending introductory letters alongside your

brochure to advertising agencies, fashion companies, corporate organizations, and
other key stakeholders throughout the city where your modeling agency is located.
 Advertise on the internet on blogs and forums and also on social media like Pinterest,
Twitter, Facebook, and LinkedIn to get your message across.
 Create a basic website for your business to give it an online presence.
 Join local modeling agency associations for industry trends and tips.

5
  Advertise our business in community-based newspapers and local TV and radio
stations.
 List your business in yellow pages ads (local directories).
 Encourage the use of word-of-mouth marketing (referrals).

A marketing plan full of ideas and strategies

A modeling agency must market potential models and execute a marketing plan to reach
potential customers. A strong personal and company profile, including the board of directors
and management team is crucial for effective marketing. Strategies include;

 Model portfolio development

 Create an integrated card with a collection of the best models.
 Holding open calls by placing classified ads in online local talent publications
 Scouting for models
 Advertising for models on the company's website or in magazine ads
 Showcase your business to your customers with updates on social media when your
models are successfully completed
 Inform the local media about modeling agency.
 Creating a company brochure to show potential customers
 List your modeling agency in local directories and yellow pages.
 Advertising on TV and radio stations.

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 CHAPTER ONE: INTRODUCTION
1.1 Background of the project
The world we live in now is more visual than ever, where beauty, fame, and success are admired.
Most people associate these features with fashion models, as they could be perceived as the
origin of modern definitions of beauty. The presentation of advertising models in mass media is
often associated with a luxurious lifestyle consisting of glamour and beauty, as well as traveling
the world at a young age (Carr & Mercer, 2017). The glamorized version of advertising
modeling is why young women and men often admire the occupation (Volonté, 2019) and
consider fashion models to be their role models. Since models are admired for their physical
attractiveness, one could assume that models are happy and have higher well-being because of
their status (Meyer et al., 2007; Datta Gupta et al., 2016).

Although well-being at work has been covered in many industries, an interesting and arguably
important field of business lacks coverage in well-being research: the work well-being of fashion
models. The concept of positive psychology has attracted increased attention over the past two
decades, namely, research on well-being as well as happiness (Van de Weijer et al., 2018).
Despite the lack of a coherent definition for well-being, the importance of promoting well-being
at work has been highlighted in a multitude of studies (e.g., Harter et al., 2003; Danna & Griffin,
1999).

The topic of models’ work well-being has numerous reasons to describe its importance. Firstly,
studying well-being is of high importance, as well-being relates to all the aspects that can aid a
person in perceiving their life as valuable and worthy (Schulte & Vainio, 2010). Moreover,
fashion models support one of the world’s biggest industries, the fashion industry (Orendorff,
2022). Thus, models are some of the world’s most influential marketers, as they have an
outstanding global presence. It is the inline adverting modeling agency that holds the models.
Inline advertising modeling agency is a company that represents and trains world-class models,
preparing profiles, finding models with various organizations, facilitating job opportunities,
receiving payments, and taking responsibility for their safety. Agencies represent models and
help train them, presenting them to designers, photographers, and ad agencies for promotion or
advertising jobs. They also book and invoice jobs. The modeling agency industry is in its mature

7
phase, with digital media providing opportunities for growth. However, the industry is becoming
more concentrated, with large global firms dominating the market and gaining a significant
market share. In addition, fashion models are ultimately what make fashion fashionable.
Considering these aspects and the fact that the extent of existing literature on the topic of this
project is limited, the research in this area holds a vast amount of value.

I, the researcher, had to quit modeling due to a lack of personal well-being. To my own surprise,
I found that a lot of models had similar experiences. Thus, it felt natural to conduct further
research to examine whether hindered work well-being is a "typical" issue for advertising
models. Ergo, I set out to study how fashion models with varying levels of experience in their
profession perceive well-being in their work. In the following section, I will define the research
problem and research questions outlined for this study.

1.2 Objective of the Project

1.2.1 General objective
the general objective of this project is Ensuring the safety of working models and facilitating job
opportunities by opening an international modeling agency service in Addis Ababa.

1.2.2 Specific objective

 To create job opportunities for the people involved in this profession, to make
them enthusiastic about the company, to get customers in a legal way, to create
social value and culture, to improve the modern lifestyle, and to prevent any
sexual violence
 Introducing Ethiopian cultures to market, creating job opportunities, and boosting
local economy.
 To contribute to the development of the art sector.
 Provide guidance to models based on agency guidelines, considering their needs
and ensuring safety in their work.
 By evaluating ecological friendliness, it is ensured that the project is suitable for
the environment, does not pollute the air, and does not disturb the peace of the
environment.
 Explore the benefits of modeling

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1.3. Statement and Justification of the Problem

Since models are assumed to be living the dream (Volonté, 2019), one may often fail to see any
discrepancies in the work well-being of fashion models. Since all that fashion models do is walk
runways, travel, and pose to be admired by the rest of the world, right? The power of the
modeling industry overshadows the true reality of the most important key players in the industry,
the world’s beloved fashion models. Therefore, it is not surprising to see existing literature argue
that fashion models have lower well-being than non-models their age with similar backgrounds
(Meyer et al., 2007).

Even though art has a great potential to change the country's culture, value, and economy and can
be a source of income, and there are different cultures in Ethiopia, combining these cultures with
the modeling profession is not seen to work satisfactorily. Supported by Durkheim, Marx, Boas,
and Bashkir, this theory states that advertising modeling agency is rooted in cultural processes,
knowledge, cultural creation, and cultural form. Agency is an active part of culture.

Being a cultural phenomenon is a historical project that must be realized by an agency that
manages society in a humane manner. Accessibility of: Journal for the Theory of Social
Behavior, 2000, vol. 30, pp. 413–434. Based on this, as a solution, this project is to provide
modeling training that depends on Ethiopian culture, called environmental modeling. People play
an active role in making and remaking culture and in the way their psyche is culturally
organized. More precisely, agency is intentional causal intervention in the world, given the
possibility that the response of that intervention can be monitored (Bhaskar, 1989, p. 81).

Additional in Ethiopia, the majority of the population in the modeling sector is young, and if they
take this training, the job opportunities for models are rarely seen unless it is through their own
efforts. The Model Alliance sent out a survey to hear about working conditions in the industry,
and despite a small sample, it turned up some surprising findings. Perhaps 30 percent of models
report some form of sexual harassment while on the job, in the absence of a photographer,
assistant, makeup artist, or witness. Another finding of the study is that many have psychological
problems that make them vulnerable to exploitation and abuse while on the job. Accessibility of:

9
https://www.thearmstronglawfirm.com to solve this problem, our agency acts as a mother agency
for models and works with various clients to facilitate them.

The government is currently implementing the second phase of its Growth and Transformation
Plan (GTP II). GTP II, which will run from 2015/16 to 2019/20, aims to continue improvements
in physical infrastructure through public investment projects and transform the country into a
manufacturing hub. The overarching goal is to turn Ethiopia into a lower-middle-income country
by 2025. Growth targets are comparable to those under the previous plan, with an annual average
GDP growth of 11%; in line with the manufacturing strategy, the industrial sector is slated to
grow by 20% on average. Available from:
https://www.academia.edu/en/45005347/The_Role_of_Entrepreneurship_Developme
nt_Center_in_creating_a_suitable_environment_to_start_up_women_owned_Micro_and_Small
Enterprises in Addis Ababa [accessed: June 2017]

Many developing countries face the challenge of creating employment for their predominant
young population. In particular in Africa, the need is high to create employment with a three
percent annual growth in labor supply, or in absolute numbers, the expected 170 million new
labor market entrants between 2010 and 2020 (Nagler & Naudé, 2014).

It is a big challenge for models to fail or be criticized for not working with society's mindset.
And accordingly, social philosophers and later sociologists gradually replaced the old ideas of
natural constants and natural and rational orderly constructions with theories of social change,
although precise formulations were slow to appear. For these thinkers, social change is "a
property of the social system, known as change" (Luhmann 1984, 471). Preferred citation:
Haferkamp, Hans, and Neil J. Smelser, editors, Social Change and Modernity. Job and pay
inequality models hinder fair professions, with some models receiving compensation in food,
accommodation, or free clothing and accessories.Available
from:https://www.themodelskit.co.uk/blog/how-much-do-models-get-paid/ [accessed: 24 may
2021]

The research problem that this project aims to study is the factors that influence the work well-
being of fashion models. The extent of existing literature that discusses this topic is limited;
however, the existing literature suggests that models may have lower well-being because of their

10
occupation as fashion models, as their legal position at work limits their rights (e.g., Meyer et al.,
2007; Mears, 2008; Pinto et al., 2020; Fortune Super et al., 2021). Hence, another image
associated with fashion models may be one of drug abuse, their extreme thinness, and a less
desirable lifestyle (Carr & Mercer, 2017).

1.4. Scope of the project

Although modeling institutions have deficiencies for various reasons, the project mainly focuses
on a lack of transparency about the operating system and a lack of job opportunities. The project
is located in Addis Ababa's 4killo, Arada sub-city. It involves opening a modeling agency,
accepting existing and new models, and connecting them with customers to create a wide range
of job opportunities for models. The main reason for choosing this place is that it is a center for
people from all directions; they can easily find different organizations and entities that are
suitable for working together with this project, which has a great opportunity to meet customers.
High schools, colleges, and universities are located in more places than other places, which mean
that the biggest part of this project is that we can reach the youth easily.

11
 CHAPTER TWO: PROJECT CONCEPT

2.1. Opportunity study

Although there is no study on this project in Ethiopia, the researcher was motivated to do this
project because of my experience in this profession, which includes participating in various jobs,
working in partnership with organizations related to the field of modeling, and training in
modeling. I am motivated to do this project because I see problems closely.

Accessibility of: https://medium.com/@slavasolodkiy_67243/model-agencies-industryreport-

3fe646960242, the model agency industry has gone through a lot of technological change in the
past few years. Advances in digital and social media have changed the ways agencies conduct
business by broadening distribution channels while simultaneously increasing competition.
Social and digital media platforms are providing operators with a number of opportunities. It
enables them to advertise their services and attract talent through a new, more public platform
(i.e., Facebook). Clients can now seek industry services for projects beyond traditional media,
such as magazines and television. Therefore, the market for modeling agencies has broadened.
At the same time, these advances have begun to cannibalize the industry’s traditional markets as
print media’s share of industry revenue continues to decline (the same predictions reported by
PwC and McKinsey).

Advertising Modeling Agency Market 2023 Forecast to 2030 research provides accurate
economic, global, and country-level predictions and analyses. It provides a comprehensive
perspective of the competitive market as well as an in-depth supply chain analysis to assist
businesses in identifying major changes in industry practices.

Worldwide Market Reports offers a 70% discount on modeling agency market reports on single
user access and unlimited user access. "The report studies the modeling agency market by
evaluating the market chain, prevalent policies, and regulations, as well as the manufacturers,
their manufacturing chain, cost structures, and contribution to the industry. The regional markets
for the modeling agency market are examined by analyzing the pricing of products in the region
compared to the profit generated. The production capacity, demand and supply, logistics, and

12
historical performance of the market in the given region are also evaluated in this market report.
Accessibility of: https://www.worldwidemarketreports.com/sample/932574

2.2 The project concept and profile

The name of the company is an inline advertising modeling agency, and the main concept behind
the start of the project is very practical and different from the usual practice, led by a specialist
with knowledge in the field, to influence models in a positive manner with support, cultivating a
healthy self-image. This projection was done based on what is obtainable in the industry and
with the assumption that there won’t be any major economic meltdown and that there won’t be
any major competitor offering the same modeling agency as we do within the same location.
The project aims to represent the best models and is always looking for new talent.
The purpose of this project is to take qualified models trained in this profession and give 20% of
their payment to the agency through the casting system.
Our professional and professional objectives revolve around model development and related
support services, helping models develop their business potential, converting talent into a
credible portfolio, and supporting model growth and development. Using a variety of industry
techniques and business methods, we help models find their unique drive and strengths for
personalized and realistic results.
What our company does and what makes it different from others It is intended to work in
Ethiopia (Addis Ababa), and our procedure is to accept those who work in the modeling industry
of all ages, including kids, young, and mature models.
By including models of different body types (thin, tall, fat, thin), we have models of this body
type, which is useful to change the thinking that only tall and tall people are models, and for each
type of job, different advertisements require different types of characters. Having a model makes
our agency lead It contributes a lot to controlling sexual violence, which means that different
women are sexually assaulted due to their desire to work in this industry. He takes it and makes
it work by connecting with companies.
There is no organization working as a mother agency in Ethiopia. This means that it will be the
first mother agency. The benefit of this is that it facilitates work opportunities for models under
the organization not only in the country but also outside the country, and it means that it is the
body that takes full responsibility for the models.

13
Because of the age of technology, the advertising company wants to be known by social media
organizations more than anything else, so our project is different in another way: any model that
enters this category is to make social media promote itself, boost it, and control what is released
on social media. This is what happens when a client who comes to our company is active on
social media and makes models advertise their company. In addition to making announcements,
the models will be published on their own page, which will open up opportunities for them to
work with different companies. Although the agency accepts experienced models from different
modeling trainings, apart from having its own rules and regulations, it also shares different
trainings for models. The payment status of the models is that they work for the job they want,
and their payment status is full for full agency work. At the inline advertising modeling agency,
we will keep the prices of our services below the average market rate for all of our customers by
keeping our overhead low and by collecting payment in advance from corporate organizations
that would hire our services.
In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one-off jobs or government contracts that are always lucrative,
and we will ensure that we abide by the pricing model that is expected from suppliers or
organizations that bid for such contracts.
Inline advertising modeling agency, and then we know that this business is a desirable and
feasible business.

2.3 Preliminary study

Before starting this project, an evaluation was carried out.
• An attempt has been made to find out what kind of acceptance this profession has among the
youth.
• The next step is to search around for sample training.
• About 18 trainings were given, and the trainees who were trained in these trainings saved the
trainees who completed them. The information we received from some people indicated that the
people who completed the work did not have a permanent job except for a one-time job
opportunity or an acquaintance.

14
CHAPTER THREE: PROJECT METHODOLOGY AND PROCEDURE

3.1. Project Design

Albeit the secondary data presented in this section is of high importance in analyzing the
findings presented in the section above, the gathering of primary data is essential to answering
the research objective, "Ensuring the safety of working models and facilitating job opportunities
by opening an inline advertising modeling agency service in Addis Ababa."
This descriptive and qualitative project aims to describe current trends in events using a
qualitative method to express respondents' views. The study focuses on exploring experiences
and feelings using a qualitative approach rather than statistical data.

3.2 Types of data

To facilitate the determination of the final finding about whether the project is feasible or not,
both primary and secondary data will be obtained through virtual meeting (focus group)
interviews and questionnaire data collection methods from the participants about their
characteristics, experiences, and opinions, as well as the status and practices of a certain state of
affairs.
A qualitative approach enables the inquirer to often make knowledge claims based on
constructivist philosophical assumptions, that is, socially and historically constructed multiple
meanings and experiences of individuals, with the intent of understanding subjective reality
(Creswell, 2007). Carr and Mercer (2017) outline that using a semi-structured approach can
provide deep, detailed data, which is important for this project. Moreover, most questions were
open-ended, giving the participant the freedom to elaborate on what they consider most
important to them and to avoid the interview being only led by the interviewer (Carr & Mercer,
2017).
Furthermore, Elmir et al. (2011) have outlined that in-depth, semi-structured interviews are best
suited for researching sensitive topics, which are typically outlined as phenomena that are
private, potentially stressful, sacred, and may induce an
emotional response (McCosker et al., 2001), which ultimately seems like a suitable description
for personal well-being. Moreover, Bryman & Bell (2018) highlight that qualitative research is
valuable for emotionalism, which is concerned with subjectivity. and gaining "insider" access to

15
specific experiences. Since the research objective aims to investigate models’ own perceptions of
their well-being, attaining emotionalism can aid the reader in understanding models’ true
perceptions of their occupation and their subjective well-being.

3.3 Source of data

Deciding to use models of semi-structured interviews and questionnaires for this project. First, to
increase the value of the findings (in terms of experience in the industry), the model should have
at least 2+ years of experience as a model.
This is because many of the factors affecting the safety of models are related to the pressures and
uncertainties arising from the structure of their work, which is why it is important to evaluate the
relationship models have with their 'employers', i.e., agencies. The participants had to have
different years of experience (2+) in their jobs to determine if experience had any relationship
with job security. The second is to examine how many new models and models with experience
up to 2 years know about this industry and how much they know about modeling agencies.
Third, the work of advertising models is mainly in advertising and entertainment, so I have
included them to know the needs of companies, producers, entertainment owners, and event
organizers.

3.4 Data collection method and tools

The necessary data for this study will be collected from both primary and secondary sources.
According to Kothari (2004), primary data are fresh data that are gathered for the first time and
thus happen to be original in character. Louis, Lawrence, and Morrison (2007) describe primary
data as those items that are original to the problem under study, while Ember and Ember (2009)
describe secondary data as data collected by others and found by the researcher in ethnographies,
censuses, and histories. Therefore, the primary data will be collected through observation,
questionnaires, a virtual meeting with a focus group, and a personal interview. The secondary
data will be collected from different sources, such as journals, periodicals released by the
modeling and fashion industries, and articles in national and international magazines.

16
 3.5 Population of the study

Lavrakas (2008) defines population as any finite or infinite collection of individual entities.
According to Kothari (2004), a population refers to all objects in any field of inquiry and is also
known as the 'universe'. Pollitt and Beck (2003) refer to the total or aggregate of people who fit
the specifications. Collecting information from all the entities in Addis Ababa city is far from the
truth, so to avoid this problem, the researcher chooses a satisfactory answer that represents the
rest. Therefore, the study will target existing and new models and modeling institutions in Addis
Ababa. The target population of the study is considered an infinite population. This includes men
and women (in terms of gender).

3.6 Sampling Design

Sampling design is a process that is primarily required in quantitative research but is not
necessarily relevant in the case of this feasibility study, which is generally and primarily
qualitative research. Although major analytical calculations such as NPV, benefit ratio, and
others are performed, these activities alone do not make the study quantitative because there are
predetermined mathematical formulas that only require the researcher to fill them with the
required numbers. For this project, convenience sampling was used, as it would be an
unsustainable task to not include every component.

3.7 Data Analysis Methods and Tools

The feasibility study done will follow the qualitative research method; hence, it will be guided to
use the descriptive method to show findings at the end using different statistics after the collected
data are organized in a manner that is appropriate and easy to interpret into results.

3.8 Schedule

The project will be completed within four months. The data collection process will take one
month, and the data analysis process will take two months. The remaining time will be used for
report writing and presentation.

17
 No Item May June July August September

1 Data gathering 

2 Develop proposal 

3 First draft proposal 

submission

4 Proposal presentation 

5 Develop project  

6 Final draft submission 

7 Defense 

Table 3.1 inline advertising modeling agency Schedule

3.9 Resource budget

Unit cost (rate in Total cost

Activities Unit Quantity
NO Birr)
1 paper Packed 2 850birr 1700birr
2 printing Pcs 300 15birr 4500birr
3 Photocopy Pcs 200 6birr 1200birr
4 Internet connection Wi-Fi Monthly 4 1500birr 6000birr
5 Laminate Pages 4 60birr 240birr

6 Transport fee Km 20 100birr 2000birr

7 Food expenses during Lunch 20 300birr 6000birr
data
8 Type Pages 100 15birr 1500birr
Total 23,140birr
Table 3.2 inline advertising modeling agency Resource budget

18
No Item Sub-total
1 Estimated expenses 23,140birr
2 Contingency (10%) 23,14birr
Total 25,454birr

3.10 Limitation of the project

The study may be limited by the objective nature of qualitative research because the findings
may influence the interpretation of the data. When I tried to get some information, they answered
my phone, and I could not reach some people, but there is no problem with the project. Ethical
considerations and limitations of research methods include providing anonymity to participants
as the primary ethical concern (Arifin, 2018). The study aims to explore sensitive and
confidential matters, requiring participants to feel comfortable expressing themselves without
fear of identity disclosure. The author and researcher are the only ones who know the
participants and have access to raw or unedited material. Research on sensitive topics may limit
participants' willingness to share their thoughts due to perceived "inspection" and potential
limitations in sharing their thoughts (Elmir et al., 2011). Reputation building is crucial to
establishing mutual trust and minimizing power imbalances between interviewer and
interviewee, making interviews more of a discussion than solely research-based so that the
interviewee feels more comfortable (Elmir et al., 2011).

As a model, the researcher's self-disclosure may be an issue in this research, as it was conducted
and analyzed by one researcher. However, self-disclosure could have helped interviewees feel
more comfortable sharing their experiences and understanding specific aspects of their
occupation. The study focuses on the well-being of female fashion models in Ethiopia, but the
results can apply to many geographical locations. Further research is needed to avoid
interference with previous ideas or opinions.

19
 CHAPTER FOUR
PROJECT PREPARATION

This chapter discusses a feasibility study for a business concept, focusing on product description,
target market, market segmentation, financial analysis, production, cost, and marketing costs.
Data was collected through self-administered questionnaires, and eight components of feasibility
were investigated. A thematic analysis was conducted to determine the presence or absence of
these factors. The study's objectives were met, and a conclusion was drawn to determine the
business project's acceptability or viability. The final decision depends on the presence of all
eight feasibility variables.

4.1. Markets and Demand Analysis

Demand analysis is a crucial tool for businesses to assess customer demand for a product,
ensuring they can effectively enter the market and achieve anticipated profits. It involves an in-
depth market evaluation and analysis of key elements.

A modeling agency is a B2B service organization that focuses on targeting qualified models to
generate higher income. This segment of ideal business customers consists of mature, high-
income, and complex business cases. Models are chosen by firms due to their high qualifications,
and this choice benefits the modeling agency business. The return on investment (ROI) can be
achieved by efficiently running an ad and providing high-quality models. Modeling agencies aim
to provide quality services to well-paid and qualified large business organizations, as they
understand the difference quality makes to them. Hiring professional models from a modeling
agency can result in a tangible return on investment as well as a better understanding of the value
they provide to their clients. In summary, modeling agencies aim to provide high-quality services
to well-paid and qualified large business organizations, ensuring a tangible return on investment.

The researcher is motivated to do this project by her experience and the field of work she is
doing in her own modeling training. Besides the modeling training, she is opening a modeling
agency to increase her business and income.
As a result, the main input for the modeling agency is models, and models can be found easily,
so data was collected to confirm that there is a demand for this business. I decided to do

20
interviews. All interview participants went through a short screening process before being
interviewed, and then a questionnaire was distributed to collect data. The questionnaire was
distributed to two types of entities: first, to ensure there was interest in the findings, and second,
to add value (in terms of experience in the industry). The model has at least two years of
modeling experience. Second, it is to involve new models who are learning the modeling
profession. Thirdly, it was possible to have an in-person interview (face-to-face) with the owners
of modeling trainings in Addis Ababa because the possibility of working together was high.

After reviewing the following summaries taken from the written questionnaires and interviews,
we are ready for this critical element: the presence of market demand. The data collected by the
researcher included 10 male models and 18 female models with more than two years of modeling
experience, for a total of 28 models aged 18–35 with 3–12 years of experience in the industry. In
the second stage, 20 male models and 30 female models who are new or modeling students and
have up to two years of modeling experience, for a total of 62 models aged 15–25 with 0–2 years
of experience in the industry, were able to collect data. A total of 90 models were collected.

Finally, of the individuals that you have tried to meet and talk to in person interview who are
related to this business,

Genet Kebede manages the Abyssinia Fine Arts and Modeling Training Center, which trains
models. In the past few years, the most radical change Genet has witnessed in the modeling
profession is that as many men as women have started to come into the career. "I think it’s
becoming more accepted as an actual profession, not just among society at large but by the
families of the young people who want to enter the profession. For Genet, part of the reason for
recognition is that models now have a wider range of choices. "Models aren’t necessarily
restricted to fashion," explains Genet. "They can do ads and take part in marketing campaigns;
they can work as brand ambassadors; and they can go into the fashion industry."

Eden Siyum is one of the models trained in Abyssinia and has been modeling for the last 7 years.
She is now the owner of IMA Modeling Training. In her experience, the modeling industry has
changed quite radically. "It has become more acceptable to say that you want to be a model," she
says. "In the past, it used to be that there was no way that families would want their children to

21
enter the industry. Now, people can find good work. More young people want to join this
industry. But the changes in society do not seem to be happening as fast as some would like.
There are still some roadblocks that await youngsters who want to enter the industry.

For some aspiring models, like 24-year-old Fireweyni Kebede, who has a first degree in
accounting, it is a complex issue of family expectations and societal pressures. But I do want to
do more modeling at some point," she says. I would find myself drawn to pictures of models in
magazines or on television, and I found myself wanting to become like them. "I feel that my
future is definitely in the fashion industry more than now. Freweyni's experience shows that
modeling in Ethiopia still has a long way to go. The biggest problem in this industry is the lack
of a modeling agency or an organization that manages models, because it is a profession where
young people are very interesting. However, worldwide, especially in advanced nations, it is
among the highest-paid professions.

The Ethiopian fashion industry is still growing, as is the modeling industry, according to model
and designer Yomuko Dinkesa, the owner of Limo Design. "Some people even relate it to
pornography, but this is totally wrong," she says. "Modeling is a decent profession. It is an
industry that creates opportunities for young people to study and work. If we look at the
modeling industries of developed countries, a model starts working as early as the age of 14 and
reaches a maximum age of 20 if she is very good. Bringing this trend to Ethiopia is very
challenging, which in turn affects the industry. Besides, the models only stay in the business for
a very short period of time (from 14 to 30 years old), and when they get older (after 30 years
old), they have to divert to other professions. Another challenge that models in Ethiopia have to
contend with is the fact that they are often not paid enough to offset the challenges of the work,
according to industry insiders. Even though the perception is that posing for photos takes the
lion’s share of a model’s job, things like staying in shape and knowing how to carry them in
public are crucial.

26 years old Samuel Negash, a film maker, highlights the education crisis in high schools and
universities. Many young people have no job or education, so most of the young people have this
profession because the training is for a short time and they get many job opportunities. The
profession of modeling is now being introduced, and there is a change in thinking and attitude

22
from the society that existed before. Socially and economically, it plays the biggest role in
promoting and developing culture.

 Our competitive advantage

To succeed in the modeling agency industry, network with decision-makers and deliver excellent
services. Competitive advantages include negotiating with regulators, offering diverse services,
high success rates, effective communication, market contacts, and local support. The agency's
workforce is skilled in niche areas, and employees receive a top welfare package.

 The level of competition in the modeling industry

To succeed in the modeling industry, entrepreneurs need quality, well-trained models and the
right contacts. The highly competitive industry has both large and small agencies. To start a
modeling agency, entrepreneurs should focus on contacting friends, photographers, advertising
agencies, and designers and providing quality training to find the right talent.

 The major competitors

• Production and multimedia entertainment

• Art institutions
• Representing clients
• Advertising talent
• Training talent
• Talent Agency

 Market Trends

The modeling industry has seen a significant revenue rebound due to improved business
conditions and digital media platforms. Economic growth and increased advertising spending
stimulate demand. Modeling agencies now understand individual behavior and demographics
better. The industry has evolved from primarily a fashion player to include other clients and will
continue to evolve with advancements in computer technology and software application designs.

23
  Market Target

Our modeling agency aims to provide essential services and support to businesses, enabling them
to reach their target market and promote their corporate brand effectively. We have developed
strategies, conducted market research, and marketed to various organizations and individuals,
ensuring we meet and exceed client expectations.
Players in the fashion industry

 Models
 Branding and advertising agencies
 Schools (High Schools, colleges, and Universities)
 Hotels
 The beauty care and cosmetics companies
 Manufacturers of products and Distributors
 Banks, Insurance companies, and other related Financial Institutions
 Real Estate Owners, Developers, and Contractors
 The Government (Public Sector)
 Entrepreneurs and Startups

 Market tips

 need the right team

 Good communication skills
 Have modeling experience
 Build marketing strategies.

 Market needs

Art enthusiasts and people of other generations seek novelty and experimentation, so
understanding the audience and their needs is crucial. The agency is in Addis Ababa, so
advertising screen tests and fashion modeling are suitable. However, if performing in a different
city, ad agencies and trade shows may be more viable. Additionally, smaller markets like fashion
retailers may require models for cultural modeling or company or product promotion.

24
  Market segment

Currently, Addis Ababa’s 2023 population is estimated at 5,460,591, so there is a large

population market. The largest segment of the model agency industry dominates the consumer
goods market, hiring models for promotional and marketing purposes. A marketing strategy is a
long-term plan for achieving business objectives by understanding client demands and
developing a competitive advantage. It includes selecting channels, identifying customers,
positioning products, identifying strategic partners, and advertising. B2B and B2C marketing are
distinct but often interchangeable. Common marketing strategies include B2B and B2C, offering
inspiration for businesses looking to succeed in the market.

Invest in
talent
management
Maintain Promotion
astrong
presence

marketing
Fine Tune strategy Consumer
pricing good
strategies market

Optimize
operations Expand
and Diversify client base
services

Figure 4-1; inline advertising modeling agency’s market strategy

Decision after analysis of market demand, market strategy/trend/target and the

competitive landscape: The modeling agency, with its unique sales and marketing system, has
the potential to navigate the market, successfully compete, and capture sufficient market share
for profitability.

25
4.2. Raw Materials and Supplies

This part of the analysis is not necessarily necessary for the business concept of an inline
advertising modeling agency because it is characteristic of the nature of the agency or
commission business, which mainly involves the competence and creativity of professionals,
quality, bringing something different, and selling time. It is not a manufacturing business. .
Therefore, this feasibility condition is considered to be met if all the necessary variables required
to implement the business concept are satisfactorily met.

4.3. Location and Site Assessment

Inline modeling agency is located in a populous area named 4 Killo at Arada Sub City, closer to
the Tesenim Building, 100Squer(1sq=700 birr ,100sq *700=63,250 per month), Negotiating a
stable, long term rental agreement (about 5 years) for office space is crucial to prevent
unexpected fees increases and ensure a secure location.

 The demography of the location, especially as it relates to models, means there are so
many productions and organizations around.
 The demand for the services provided by the modeling agencies is high because there are
various colleges, and this industry focuses more on the youth.
 The accessibility of the place is wide.
 There are no other modeling agencies in the location.
 The local laws and regulations in the community or state were good.
 There is traffic, parking, and security.
 The office is where it will be easy for you to make contacts in the media, advertising, and
entertainment industries.

4.4. Production Program and Plant Capacity

The inline modeling agency business concept does not require a separate production program
and capacity analysis, as it focuses on accepting models and connecting them with various
organizations. A separate production program and capacity analysis is unnecessary unless there
is a gradual increase in salary resources for manpower, marketing, and operating expenses. These

26
cost items are already listed in the attached financial projections. A formal feasibility study can
be considered complete if all other necessary elements are met.

4.5. Technology Selection

This formal feasibility analysis was less important to the business concept of an inline
advertising modeling agency because it included the nature of the agency's services, current
sales, and the agency's expertise. It is not a manufacturing business. No specific technology is
required except for the availability of necessary facilities for this business, such as electricity,
social media platforms, the Internet and telecommunication technology, production material
technology, and the necessary success factors (and their costs estimated in the start-up price
estimates).

4.6. Organizational and Human Resource

Inline Modeling Agency is a world-class modeling agency that intends to start in Ethiopia (Addis
Ababa). I am aware of the importance of building a solid business structure that can support the
kind of world-class business we want to own, which is why I committed to only hiring the best
hands within our area of operations. At inline Modeling Agency, we will ensure that we hire
people who are qualified, hardworking, creative, result-driven, customer-centric, and ready to
work to help us build a prosperous business that will benefit all stakeholders. Inline modeling
agencies do not need to borrow funds from any bank or financial institution. It has sufficient
starting and working capital in place, all funded by the founder’s private savings. This is a
significant strength that increases its chance of success. The in-house modeling agency will have
11 employees. Have decided to hire qualified and competent hands to occupy the following
positions:

27
 General manager

Human Resources
general manager’s procurement & Administration &
/ production &
office marketing dep’t finance dep’t
technical dep’t

-Modeling Agency -Admin & finance

Specialist head
-Marketing officer
Executive -Creative Director - Client service / -Accountant/ cashier
secretary -Photographer liaison officer -Personnel officer
-casting Coach -Cleaner/ janitors

Figure 4-2; inline advertising modeling agency’s Team Organizational Structure

 General Manager

The general manager invests in the business, enhances management effectiveness through
recruitment, training, coaching, and disciplining, communicates values, strategies, and
objectives, creates and implements the organization's vision, and is responsible for pricing,
business deals, and success evaluation.

 Creative Director

The individual manages an organization's project, collaborates with employees and models,
designs models, and secures business proposals while maintaining professional knowledge
through various channels.

 Modeling Agency Specialist

The individual is responsible for talent scouting, contract negotiations, client representation,
modeling management, advertising, training, and modeling advisory and consulting services.

 Marketing Manager

28
The individual effectively manages customer retention and acquisition, identifies development
opportunities, manages leads, and motivates the sales team to create new markets and businesses.

 Accountant/Cashier:

Graduate in accounting and finance, responsible for financial reporting, budgeting, analysis, risk
management, cash management, general ledger accounting, policy development, payroll
administration, tax compliance, and internal auditing.

 Photographer

Graduate in photography and video editing, responsible for managing model photo shoots,
developing concepts, graphics, and layouts, researching modeling styles, genres, and
international best practices for quality production.

 Client Service Executive / liaison officer

The company offers personalized customer service through various channels, including email,
phone interactions, and online platforms, with a creative director managing administrative duties
and providing accurate information.

 Casting Coach

They have high responsibilities and help models improve knowledge and skills, provide specific
training before connecting clients, show their productivity and time management, and choose
which model will be for which job.

 Human Resources and Admin Manager

The individual manages HR and administrative tasks such as job definition, interviews,
induction, employee training, evaluation, and daily office operations according to the
organizational structure. The human resources by category and qualification, including monthly
and annual salaries, are summarized in the table below. It is estimated that the employee’s
benefit will be 10% of the basic salary and wages per year. To ensure and improve the
competence of the company and to increase the market share of the modeling agency project, it
is important that all the senior positions proposed be run by qualified and well-versed
professionals in the industry. For the smooth operation of the envisaged modeling agency
project, a total of 13 permanent employees are required, which will cost the company a total of
birr 924,000 birr per annum, including benefits.

29
Human resource requirements and related annual costs

Description Title No Pos.salary Monthly Salary/yr.

A) general manager’s office
General manager 1 15,000 15,000 180,000
Executive secretary 1 4500 4500 54,000
Sub total 2 19,500 birr 234,000 birr
B) production & technical dep’t
Modeling agency 1 5800 5800 69,600
specialist
Creative director 1 9000 9000 108,000
Photographer 1 5500 5500 66,000
Casting Coach 2 9000 18,000 72,000
Sub total 5 38,300 birr 216,000 birr
C) procurement & marketing dep’t
Marketing officer 1 5,500 5,500 66,000
Client service / 1 4,000 4,000 48,000
liaison officer
Sub total 2 9,500 birr 114,000 birr
D) Administration & finance dep’t
Admin & finance 1 10,000 10,000 120,000
head
Personnel officer 1 4,000 4,000 48,000
Accountant/ cashier 1 6000 6000 72,000
Cleaner/ janitors 1 3,000 3,000 36,000
Sub total 4 23,000 birr 276,000 birr
Total salary 13 65,300 840,000
Employees benefit 6,530 84,000
10%
Grand total 13 72,830 birr 924,000birr
Table 4-1; modeling agency’s Human resource requirements and related annual costs

30
 4.7. Social analysis

Examine the social implications of the project:

 adverse effects of a project on particular groups

 The impact of the project on improving the quality of life
 Considering the contribution of alternative projects to furthering the same objectives
 Ethical culture

4.8 Economic Analysis

Economic analysis is basically concerned with the following:

 how to identify the effects of the project on society;

 qualification of the effects of the proposed projects; and
 Pricing of costs and benefits to reflect their values to society.
 Is an assessment of a project’s costs and benefits from the point of view of the national
economy,
 It is basically concerned with how to identify the effects of the project on society, the
qualification of the effects, and the pricing of costs and benefits to reflect the values of
society.
 It is, therefore, conducted to identify costs and benefits where there is a significant
divergence between market prices and economic costs or values, and its application is
important in the selection of economically viable public projects.

In general, social and economic analysis suggests that any sustainable business should at least
respect the principle of "do no harm”. And possibly impacting the community it's part of in
positive and beneficial ways. Based on the philosophy of community benefit or the world view
of marketing and business operations, inline modeling agencies strive to respect the three P's
(people, planet, and profit) to achieve a win-win situation for all stakeholders, including society.
By establishing a key agency organization, various stakeholders, such as the local community,
the local government, and the federal government, will all benefit from the natural environment.
This helps enhance the overall brand image and reputation of the in-house modeling agency in
the long run. The following are at least the following positive socio-economic benefits for the

31
communities in which modeling agencies live and for those involved in this industry:
1. At least 13 new jobs or employment opportunities will be created. Paying a good living wage;
2. Additional salary payments and income tax revenue for the local inline modeling agency are
also available from the federal government.
3. The big picture system of inline modeling agency service has been given attention, and new
turn-key and standardized franchise-type business models are going to be widely introduced in
Ethiopia. This is similar to technology and knowledge transfer.
4. No harm or negative environmental impact will occur as a result of the implementation of the
business concept by the inline modeling agency, and
5. Finally, with a turn-key business systems agency like Inline Modeling in Addis Ababa,
Ethiopia, unique thinking, new approaches and business practices, improved ways of taking care
of customers, and countless financial and financial benefits accrue, and these benefits are
increasing over time. It will benefit Ethiopia, the youth, and organizations working in this
industry. Because ultimately, as businesses move away from messy, streamlined operations,
these enterprises become more efficient and effective and improve their attention to detail, care,
and service excellence.

32
 4.8.1. Project stakeholders

policy
maker

health
models center

modeling
agency
stakeholders

an g.public
entertener /young

org /
suppliers

Figure 4-3; inline advertising modeling agency’s project stakeholders

4.8.2 Project beneficiaries’ identification

To describe project beneficiaries, I depend on See- fact because it clearly shows the benefits.

Social and political benefit

The initiative fosters diverse work opportunities, promotes work culture, and fosters socio-cultural or
national culture. It creates job opportunities for youth, enables independence, adds social value,
encourages women and young people to participate in the industry, and continuously improves the way of
life. Also the platform is utilized to enhance the political aspect, allowing national-wide political concerns
to be addressed through more exercises.

33
 Economic Benefit

The reduction of unemployment can foster motivated and creative young individuals who believe
in their abilities, emphasizing the importance of increasing income through providing benefits to
others.

Environmental Benefits

Teamwork is widely encouraged. It creates multi-national and multi-cultural identity harmony. It

does not use water for its work, does not create air pollution, and does not disturb peace.

Financial Benefits

Investment returns will be returned in a short time, Investment risk is lower because the
investment is mainly made in goods that cannot be damaged and can be sold and changed, which
means that the variable cost of investment is low.

Administration managerial

The general manager is a woman; she is highly motivated, has administrative experience, and she inspires
others by settings an example.

Competitors

Competitors in this industry are based locally and not worldwide, and as a result, my competitors
are fewer. Moreover, potential competitors are also based locally, so the distance to reach me is
high, so it will take them a lot of time.

Technological

The researcher came up with a system that is a social media platform with high-quality
production material.

34
 4.8.3 Project social cost analysis
Women and young people are widely involved in the industry. We accept free of charge those
who are left behind due to economic reasons while having skills and abilities.
The company offers free sanitary pads to economically disadvantaged women and young people
and will donate a portion of their commission income to charity. This initiative aims to support
those left behind due to economic reasons.

4.8.4 Project social benefit analysis

What I have tried to describe above is to promote the things that are done at a social cost, and
thus I will get high acceptance from society. believes that this will ultimately reduce the cost of
promotion and lead to greater acceptance, trust, and recognition from the community.

4.9. Financial Analysis

 The modeling agency business is a sustainable, indefinite project with high demand for
commission work. The analysis period is four years, with trends and growth rates
observed in these four years. The business can continue, achieving equal or better
performance results over these four years, considering cautious and conservative
assumptions. The modeling agency's financial feasibility is clear, and the business can
continue to grow and succeed.
 Depreciation according to Ethiopian tax proclamation number No. 979-2016 for
equipment and furniture is 20% (5 years using the straight line depreciation method), and
for software it is 33.3% (3 years using the straight line depreciation method).
 Based on Ethiopian tax proclamation number No. 979-2016, the profit tax on income of a
private limited company (PLC) like a modeling agency is 30%;
 The equipment is assumed to have no salvage value at the end of its useful life, as
determined by the tax regulations, for the window of analysis for this project, namely
four years.
 An 18% discount rate (opportunity cost of capital) is used for all four years' worth of
analysis here. According to the National Bank of Ethiopia's first quarter report of
2020/2021, the going nominal interest rate has been 7.3% (annually) for the last two
years, and this figure cannot reasonably be used to estimate the discount rate, simply

35
 given the bizarre and unbridled nature of price and inflationary fluctuations in Ethiopia
across all economic sectors and the almost 25% plus annual cost of inflation that Ethiopia
registers. (National Bank of Ethiopia, 2021) Hence, using the 7.3% nominal rate does not
make sense for a careful and informed investor. Here is an explanation of why the 18%
rate is used: The discount rate of 18% is assumed for this investment based on a careful
comparison of the nominal interest rate of 7.3% from the National Bank of Ethiopia
(NBE) against the average lending rate used by Ethiopian commercial banks, including
the largest public financial enterprise, the Commercial Bank of Ethiopia (CBE), when
they lend money or give out commercial loans secured and backed by collateral of some
sort. Hence, the 18% rate is chosen as the discount rate, taking into consideration the
alternative opportunities given up or forgone and ensuring the modeling agency business
concept will deliver the best results (rate of return) for the amount of resources
committed and risks involved. Also, the highest rate of inflation and cost fluctuations
witnessed in Ethiopia for the past 4 years dictates that any smaller rate (less than 18%)
does not guarantee or assure a reasonable return from budgeting and long-term planning
perspectives, especially when the net or real purchasing power of the cash inflows is
carefully measured.
 The researcher in this feasibility study also considered the inverse relationship that exists
between the NPV and the discounting rate used. The worst-case scenario and the more
conservative the approach here, the better and more realistic the projections and
conclusions to be drawn regarding modeling agency overall feasibility and profitability.
In the world of professional projections, the principle of under promise and over deliver
always works. Through conservative and cautionary methods, underestimating the
potential gains of an investment and/or overstating the losses is much better (and more
ethically credible) than the opposite scenario of exaggerating the gains and minimizing
the potential for losses. It is hence worth noting that a higher discount rate (18% and not
7.3%) is chosen for the NPV calculations.

The researcher plans to use models for the first year; out of the 308 models it has trained in
modeling training for two years, it will use 120 models in the first year. This means doing
advertising work for 10 models per month. A model will have a one-year contract with an

36
agency, and when they join the agency, they will be paid 5,000 Birr, and the agency will
have a one-year contract with the company doing the advertising. You can renew your
contract. When a company advertises with us, it receives a package for one year. As a result,
the company pays for the model at 300,000 Birr excluding tax, and the agency takes 20%
(60,000 Birr), which means that including the registration fee, our total annual gross revenue
from fees will equal ETB 7,800,000 Birr. In the 2nd year, use 20 models per month, making
240 models per year (reg. fee: 5200 Birr for one model). Payment 320,000 Birr, 20% (64,000
Birr), our total annual gross revenue from fees will equal ETB 16,608,000. In the 3rd year,
using 40 models per month, making 480 models per year, a reg. fee of 5400 Birr, one model
payment of 340,000 Birr, and 20% (68,000 Birr), our total annual gross revenue from fees
will equal ETB 35,232,000. In the 4th year, if we use 80 models per month, making 960
models per year, with a reg. fee of 5600 Birr, one model payment of 360,000 Birr, and 20%
(72,000 Birr), our total annual gross revenue from fees will equal ETB 74,496,000 Birr. The
financial statement is based on the cash flow and income statements

 Sale
 This company's sales forecast for the rest of the year is to produce 10 models per
month, 120 models per year, and it increase double models per year.
 First year revenue is 7,800,000 birr with an initial investment of 3,181,000 birr. In 2,
3 and 4 sales revenue increases to 16,608,000 birr, 35,232,000 birr and 74,496,000
birr respectively.

37
4.9.1 Initial investment cost
Needed Immediate Start Up Expenditures Year One
Office Rent & Related ETB 1,000,000
Other Supplies & Operating Expenses ETB 1,300,000
Fixed Equipment, Furniture & Software ETB 350,000
Total Initial Expenditures ETB 2,650,000
Table 4-2: Immediate Start Up Expenditures Needed. All figures are in Ethiopian Birr (ETB)
Projected Start Up Liquid Cash ( Reserve) Reserve for Three
Months
Personnel ETB 231,000
Marketing Expenses ETB 300,000
Total Liquid Working Capital to be Set Aside ETB 531,000
Table 4-3-: Projected Start up Liquid Cash (Reserve) all figures are in (ETB)
Total Funds Needed for inline modeling agency
Total Initial Expenditures ETB 2,650,000
Total Liquid Working Capital to be Set Aside ETB 531,000
Total Funds Needed for modeling agency ETB 3,181,000
Table 4-4: Total Funds needed for modeling agency. All figures are in Ethiopian Birr (ETB)
The initial investment cost of the project is the amount of money a business owner needs to start
a business. This money was raised in different ways by giving people opportunities to invest in
the business and share the profit. The startup capital of the business is $3,181,000.

4.9.2. Production cost

This section is not applicable to the nature of the business an inline modeling agency conducts,
namely agency. It is not a manufacturing business. Hence, all the needed key resources,
including office equipment and manpower, are included in the estimated initial investment cost
and operating costs listed hereinabove.

38
 4.9.3. Marketing cost

The study highlights the importance of referral marketing in modeling agency services, as they
are almost always sold rather than automatically purchased. To establish the agency in the Addis
Ababa business community, aggressive and focused marketing efforts must be made within the
first three months. This includes spending ETB 300,000, which is 50% of the projected annual
expenditures on marketing for the first year. Consistent and aggressive prospecting and lead
generation are crucial for the success of modeling agency services. The unique nature of this
business means that agency services are sold rather than automatically purchased by potential
agency clients. Modeling agencies will continue to spend significant amounts on marketing, as
agency services are considered employer sales. A refined, checklist-driven, and systematized
selling approach is used, with personal selling, referrals, and networking being the best methods
for acquiring leads and new prospects. Therefore, continued marketing expenditures are
necessary for prospecting and lead generation purposes.

Projected Marketing Cost $ 600,000 $ 1,200,000 $ 1,500,000 $ 3,000,000

Table 4-5: inline advertising modeling agency's Projected Marketing Cost Years One through
Four (ETB)

39
 4.9.4. Projection of Cash Flow and P & L
The following cost estimates and tables are based on the key assumptions mentioned
hereinabove.
Modeling agency Profit & Loss Projections
Income statement
year 1 year 2 year 3 year 4
Revenue
Gross Revenue $ 7,800,000 $ 16,608,000 $ 35,232,000 $ 74,496,000
Refunds - - - -
Discounts - - - -
Net Revenue $ 7,800,000 $ 16,608,000 $ 35,232,000 $ 74,496,000
Gross Margin $ 7,800,000 $ 16,608,000 $ 35,232,000 $ 74,496,000
Operating Exp
Personnel $ 924,000 $ 1,724,000 $ 3,324,000 $ 6,824,000
Office Rent & $ 1000,000 $ 1,650,000 $ 2,000,000 $ 4,000,000
Related
Marketing Exp $ 600,000 $ 1,200,000 $ 1,500,000 $ 3,000,000
Other Operating $ 1,300,000 $ 2,350,000 $ 3,750,000 $ 6,050,000
Expenses
Depr & Amort 83,333 143,333 213,333 260,000
Total Operating Exp $ 3,907,333 $ 7,067,333 $ 10,787,333 $ 20,134,000
Operating Income $ 3,892,667 $ 9,540,667 $ 24,444,667 $ 54,362,000
Interest Expenses $ - $ - $ - $ -
NI Before Tax $ 4,602,667 $ 10,003,667 $ 25,313,667 $ 54,362,000
PLC Income $ 1,167,800 $ 2,862,200 $ 7,333,400 $ 16,308,600
Taxes Payable
Net Income $ 2,724,867 $ 6,678,467 $ 17,111,267 $ 38,053,000
NI % 13% 18% 27% 30%
EBITDA $ 3,976,000 $ 9,684,000 $ 24,658,000 $ 54,622,000
Table 4-6: inline advertising modeling agency’s Projected Income Statement (P & L).All figures are in
Ethiopian Birr

40
 Additional Assumptions

Reg plus 20%comm’n Rev $ 7,800,000 $ 16,608,000 $ 35,232,000 $ 74,496,000

customer /Models /advert Served 120 240 480 960
Average Order Value $ 65,000 $ 69,200 $ 73,400 $ 77,600
Table 4-7: inline advertising modeling agency’s Additional Assumptions
Modeling agency Depreciation Table
Useful Year One Year Two Year Three Year Four
CAP EXP Life
Furniture & Equip 5 $ 250,000 $ 100,000 $ 100,000 $100,000
Software 3 $ 100,000 $ 120,000 $ 150,000 $180,000
Total Cap Exp $ 350,000 $ 220,000 $ 250,000 $280,000
Depreciation
Furniture & 5 $ 50,000 $ 70,000 $ 90,000 $ 110,000
Equipment
Software 3 $ 33,333 $ 73,333 $ 123,333 $ 150,000
Total D&A $ 83,333 $ 143,333 $ 213,333 $ 260,000
Table 4-8: Depreciation Table for inline advertising modeling agency. All figures are in ( ETB )

41
 Initial and Ongoing Net Cash Flow for the First Four Years

Cash at Hand 3,181,000 Year One Year Two Year Three Year Four
Beginning Cash Bal. 3,181,000
Net Income $ 2,724,867 $ 6,678,467 $ 17,111,267 $ 38,053,000
Operating Activities
Depreciation 83,333 143,333 213,333 260,000
Chg. in A/R
Chg. in A/P
Chg. in Def. Rev
Operating Cash Flow $ 2,808,200 $ 6,821,800 $ 17,324,600 $ 38,313,000
Investing Activities
Cap Exp 350,000 220,000 250,000 280,000
Free Current Cash $ 2,458,200 $ 6,601,800 $ 17,074,600 $ 38,033,000
Flow
Financing Activities
NCF From Financing - - - -
Net Cash Flow $ 2,458,200 $ 6,601,800 $ 17,074,600 $ 38,033,000
Ending Cash Balance $ 5,639,000 $ 9,782,800 $ 20,255,600 41,214,000
Table 4-9: Beginning and Ongoing Net Cash Flows for the First Four Years

4.9.5. Financial Evaluation

Based on the profit and loss estimates, the related figures, the general market size, the market
share modeling agency estimates to capture or acquire, and the resulting revenue projections
discussed and shown in the preceding sections, the following are the financial evaluations and
measurements being calculated using various capital budgeting formulae: These financial
evaluations allow perspectives on the expected financial returns from different angles or points
of view. The various financial evaluation methods that follow have their own strengths and
weaknesses. However, when considered together, these investment options, viewed from
different perspectives and using multiple financial evaluation methods, significantly improve the
accuracy of the feasibility analysis being conducted and the overall strength and reliability of the
conclusions that follow.

42
 4.9.5.1 Net present value (NPV)
The net present value (NPV) of a project is calculated by discounting the cost of capital at the
required interest rate and calculating the differences between annual cash outflows and cash
inflows. This method considers the time value of money, making it a widely used financial
evaluation tool.

Net Present Value

ITEM. Year 1 Year 2 Year 3 Year 4

Net cash flow $ 2,458,200 $ 6,601,800 $ 17,074,600 $ 38,033,000

Discount Factor at 18 % 1.1800 1.3924 1.643032 1.93877776

Discount Net cash flow $ 2,083,220 $ 4,741,309 $ 10,392,129 $ 19,616,998

Sum of discounted cash

inflows $ 36,833,656

Minus Initial Investment or

Outflow 3,181,000

Net present value(NPV) $ 33,652,656

Project Accepted

Table 4-10: inline advertising modeling agency’s NPV

Decision after analysis: Accept the project because the NPV is 33,652,656, even taking the first
4 years of the investment period that is being considered here.

43
 4.9.5.2. Internal Rate of Return (IRR)

Internal Rate of Return

Year Cash flow category Amount in INR IRR IRR each year

Year 0 Investment -3,181,000

Year 1 Income $ 2,724,867 -14.3%

Year 2 Income $ 6,678,467 94.92%

Year 3 Income $ 17,111,267 152.8%

Year 4 Income $38,053,000 181.6% 181.6%

Accepted

Table 4-11: Table to Figure out the IRR based on Various Iterations and Calculations
Decision after analysis: One needs to compare the initial investment of ETB 3,181,000 with the
Discount Rate at Various Options; where the NPV is zero or the closest value to zero, then that is
the IRR rate; in this case, 181.6% is the IRR. Accept the project because the IRR is 181.6%,
which is greater than the assumed, required, or discounted rate of 18% considered for modeling
agencies.

4.9.5.3. Benefit-Cost Ratio (BCR)

Benefit-Cost Ratio (BCR), as its name indicates, is a comparison of the benefits of a business to
its cost, considering the opportunity cost of capital or the time value of money. Givens here for a
modeling agency project are:

 Where the initial investment is ETB 3,181,000

 Please see that the NPV of the modeling agency for the 4-year horizon is 33,652,656
which is considered the benefit of the modeling agency project for the four-year window
of analysis (assumed above).

44
Benefit -Cost-Ratio = 33,652,656 = 10.5792694121 which can be approximated 11.
3,181,000

This means the benefits to be generated from modeling agencies are equivalent to almost 11
times the cost invested.

Decision criteria or rule: If B/C ratio > or = 1, accept, < 1, reject project,

 NPV > 0; if B > C, NPV = B - C > 0, thus;

Based on this, the resulting quotient is greater than 1. Benefits exceed costs.

Decision after analysis: Accept the project because it is greater than 1. In fact, the benefits
generated by an inline modeling agency are equivalent to almost 11 times the cost invested.

4.9.5.4. Payback Period (PBP)

The payback period is the length of time that a business will take to recover the original
investment outlay through accumulated net cash flows. This is not a highly respected method for
calculating returns on projects because it does not take the time value of money into
consideration. The payback period is simply calculated using the traditional rate, a non-
discounted rate, unadjusted for inflation, and without taking into account the time value of
money. The resulting quotient will tell us how long it will take (usually in years) to pay back the
project and accrued costs without discounting the cost of capital. The faster the initial investment
recovery period, the better the investment, resulting in a faster payback.
The general formula for PBP is:
PBP = Total Initial Investment or Outflows/ (divided by)
The Annual Incoming Cash Flows

Given is the Net Income for inline advertising modeling agency for the first four years at
undiscounted amounts. (Please see Table 4-12)
Net Income $ 2,724,867 $ 6,678,467 $ 17,111,267 $ 38,053,000

45
 And where, Initial Investments is ETB 3,181,000
 Investment remaining to be recovered after the first year net income of ETB 2,724,867 is
ETB 456,133; and calculated as is ETB 3,181,000 minus ETB 2,724,867.
 In other words, ETB 456,133 needs to be recovered out of the second year's net income of
ETB 6,678,467; as follows and the time in years or months can be calculated as ETB 456,133
divided by 6,678,467.
PBP= 1 year plus ETB 456,133 X 12 months = 1 year plus 1.7207154983 months
ETB 3,181,000
The payback period of this project is one year and two months
The resulting quotient and multiplied by 12 months can be approximated / rounded up to the
nearest 2 months. Based on this, one can conclude modeling agency can recover its initial
investment of 3,181,000 approximately in less than 1 year and 2 months, or in less than 14
months.
Decision after analysis: Accept the project because it takes less than one year and two months to
recover the initial investment. The time required is so short which implies that the modeling
agency project is an acceptable and a highly profitable investment.

4.9.5.5. Accounting Rate of Return (ARR)

The ARR takes into account depreciation of fixed assets in its calculation of net profit to achieve
the annual net profit and then divides the average annual net profit by the initial cost of the
investment as a decimal or a percentage. A word of caution regarding ARR is in order here.
Unfortunately, it is to be noted that ARR is not a well-respected measure of performance for
evaluating investments because it doesn't consider the time value of money. That is exactly why
it is generally used in conjunction with other measures or evaluation methods.
Net Income $ 2,724,867 $ 6,678,467 $ 17,111,267 $ 38,053,000

Table 4-13: Net Income for the inline advertising Modeling Agency for the First Four Years at
Undiscounted Amounts

Total income for four years, $64,567,601, is then divided by 4 to get the average annual profit,
which is ETB 16,141,900.

46
 ARR = Average annual profit
Initial investment cost

Hence, ARR = ETB 16,141,900 = 5.074473436 or rounded to be 507.44%

ETB 3,181,000

Decision after analysis: Accept the project because the ARR is above 5.07 in decimals or
507.44% (in percentages)

4.9.5.6. Break-Even Analysis (BEA)

A breakeven analysis determines the commission fee or agency fee volume, at a given price or
average order value, that is required to recover total costs. The break-even point (BEP,
hereinafter) is the quantity of sales revenue generated or the number of customers that must be
served at the point at which total revenues equal total costs. As business owners, BEP is an
indicator of performance in that we all want to avoid operating losses. BEP tells business owners
how much revenue they must generate or sell to avoid a loss or ensure the recovery of their
investments.

Given Assumptions Year One Year Two Year Three Year Four
Models / advertising 120 240 480 960
Served/customer
Average Order Value $ 65,000 $ 69,200 $ 73,400 $ 77,600
Table 4-14: Customers & Average Order Size on inline advertising agency Projects per
Customer / models.

Hence, totals revenue = average order size x (times) number of projects...

Total Revenue = ETB 65,000 x 120 Customers = ETB 7,200,000

Please note that the total initial investment is ETB 3,181,000, as calculated earlier in this
study. Or

BEQ = where Total Revenue minus Total Costs = zero, Operating Income (OI) or Profit =
zero, and the point where the operating income is zero. At BEP, no gain or loss is realized. Then,

47
by substituting the given values in the equation above, BEP can be figured out. Since breakeven
operating income (OI) is zero,

Therefore,

BEQ = Total Initial Investment

Average Order value

Hence, BEQ = ETB 3,181,000 = 48.93models (approximated up to 49)

65,000

That is, a modeling agency needs to serve about 49 models to break even in the first year. Based
on this, the modeling agency will recover its original investment after serving 49 clients in its
very first year of operations. Which is a profitable point beyond the 49 minimum needed to break
even because 120 customers are projected to be served by the modeling agency in the very first
year.
Total Number Estimated Annual models = ETB 7,200,000 = 120 customers /agency Sales
65,000

Decision after analysis: Accept the project because after serving only about 49 models with an
average order size of 65,000, the modeling agency will then be functioning at a net profit of
some sort. This makes it an investment with the potential for excellent returns.

4.10. Legal analysis

Starting a modeling agency requires legal compliance, including obtaining a license from local
governments and determining the agency's legal structure. Shareholders have limited liability,
while sole proprietorship owners are responsible for all business debts and can seize personal
assets. Consultation with local governments is crucial for establishing a legal structure.
Tax identification numbers are important for businesses, including federal EI numbers for
employers, corporations, and partnerships. City sales tax IDs are legal documents issued by the
city that allow businesses to collect sales and use tax and issue exemption documents. State TIN
numbers are state-specific tax identification numbers. Legal contracts are also required for

48
advertising modeling agencies. These numbers are critical to ensuring businesses comply with
tax laws and regulations.
To protect yourself in today's litigious society, it's important to hire an attorney to draft legal
agreements between you and models and clients and to separate personal assets from commercial
assets when executing contracts. In order to conduct business for the inline advertising modeling
agency project, it has fulfilled the legal documents prescribed by the country's constitution. As a

 Certificate of Incorporation
 Business License
 Business Plan
 DBA Business Name
 Unofficial Agreement
 Memorandum of Understanding (MoU)
 Employment Agreement (insert letters)
 Operating Agreement
 Bylaws of the company
 Operating Agreement
 Insurance Policy

49
 CHAPTER FIVE
SUMMARY AND CONCLUSIONS

5.1 Summary of Findings

the project aimed to establish a modeling agency in Addis Ababa, Ethiopia, focusing on B2B
services. Over 90 samples and interviews were conducted to assess the feasibility of the agency,
considering existing and new models, professional business owners, and modeling trainings. The
study aimed to determine the success of the inline advertising modeling agency.
A total of 90 samples were randomly selected from two types of models in each category,
dividing the total specifications in each sector by the required number of samples. This method
allows all listed models in a particular category to be selected at random by selecting the first
model in that category and filling the gaps between them.
The study used a qualitative research method and thematic analysis to select 90 models to assess
the business viability of an inline advertising modeling agency concept. Data was collected from
business owners and industry experts using a systematic random sampling method.
The study analyzed the feasibility of an online advertising modeling agency concept using
primary and secondary data. It assessed eight key variables to determine the project's
profitability and risk level, as well as the financial and non-financial resources required for the
business. Based on the study design and model, eight important variables were identified as the
focus of the study. Primary data was collected using structured written questionnaires.
Ninety samples were chosen to assess the feasibility of an inline advertising modeling agency as
a business project. Eight variables were analyzed: market and demand analysis, raw material and
supply research, site and location evaluation, production program and plant capacity, technology
selection, organizational and human resource feasibility, social and economic feasibility, and
financial feasibility.
The feasibility study deemed all critical variables acceptable and viable, requiring their presence
and positive existence for the project to be viable.
The study correctly concluded that the concept of an inline advertising modeling agency is
possible, a risk worth taking, and a project worth undertaking. In addition, the project will create
jobs and generate tax revenue without having any negative impact on the natural environment. In

50
short, the project was profitable for the investor and the company, as well as for the supplier and
the community being established in Addis Ababa, Ethiopia, and more importantly, for the youth.

Here are the findings and results of the study, briefly summarized under the eight various
variables that were the basis of the analysis in the previous chapter:

1. On Markets and Demand Analysis:

The data gathered and analyzed confirmed, even based on extra-careful and ultra-conservative
estimates, the existence of adequate market demand for a turn-key systems-consulting firm like
an inline advertising modeling agency. And the market share inline advertising modeling
agencies are expected to capture is determined to be ample enough to comfortably support their
growth, profitability, and sustainability. Hence, in this respect, the inline advertising modeling
agency business concept was found to be viable.

2. On Raw Materials and Supplies Study:

This part of the analysis is not necessarily necessary for the business concept of an inline
advertising modeling agency because it is characteristic of the nature of the agency or
commission business, which mainly involves the competence and creativity of professionals,
quality, bringing something different, and selling time. It is not a manufacturing business. No
materials or supplies are required as part of the initial investment cost (except those required to
start the agency business listed earlier). Therefore, this feasibility condition is considered to be
met if all the necessary variables required to implement the business concept are satisfactorily
met.

3. On Location and Site Assessment:

An office space is needed in central Addis Ababa in an area of the city that is physically
accessible to most of the inline advertising modeling agency's prospective business clients. All
the necessary office equipment, supplies, furniture, and related accessories will be arranged once
a rented office space is located and a rental agreement is signed. The office location should
present and display the inline advertising modeling agency's impressive image and excellence in

51
delivering premium-quality service. Inline advertising modeling agencies clients have every right
to expect and demand an attractive, professional, secure, and safe office environment during their
visits. Possible office locations that meet all the above-mentioned requirements and conditions
have already been studied, and potential buildings ideal for an inline advertising modeling
agency's premium image have already been identified in the Addis Ababa, Arat Killo, and Arada
Sub-City areas. The study determined that because such convenient, professional, secure, central,
and easily accessible office locations and environments that fit the inline advertising modeling
agency's premium consulting image are available at reasonable cost and under the projected
budget, this particular element of feasibility is fulfilled.

4. On Production Program and Plant Capacity

This section of the analysis was not necessarily needed for inline advertising modeling agency
business concepts because of the very nature of agency service, which primarily involves the
competence and creativity of professionals, quality, bringing something different, and selling
time. And because an inline advertising modeling agency is not a manufacturing business, it does
not need a detailed analysis under this topic. No particular production program or capacity
analysis is required other than the manpower and office equipment that were already considered
in the estimated startup cost. Hence, the study concluded that, provided all the other remaining
factors required to make the business feasible are found acceptable, this element is assumed to
have been met.

5. On Technology Selection:

This element of a regular feasibility analysis was not necessarily needed for an inline advertising
modeling agency business concept because of the very nature of the agency service, which
involves the selling of time and the agency expertise of its professionals. It is not a
manufacturing business. No particular technology is required for this business other than access
to essential utilities such as electricity, social media, internet and telecommunication technology,
and production material technology, which are important success factors that have already been
considered (and their costs estimated in the startup cost projections) when the required office site
and location matters are evaluated. Hence, the study concluded that this factor was fulfilled,

52
provided all the other relevant factors required to make an inline advertising modeling agency
feasible are satisfied.

6. On Organizational and Human Resources :

In addition to the initial investment funds needed, the financial resources to pay for the salaries
of inline advertising modeling agency staff during the first three months until such time inline
advertising modeling agency generates enough revenue to adequately cover payroll expenses are
ready. inline advertising modeling agencies do not need to borrow funds from any bank or
financial institution. Besides, at least for the first few years, the founder will be one of its full-
time employees and act as the PLC's executive manager. These key resources give the inline
advertising modeling agency a unique strength and a competitive edge in the Ethiopian business
consulting market. The other key hires needed can be easily recruited, carefully screened, and
groomed from a wide pool of job-seeking professionals available in Addis Ababa. Besides, the
founder's past In terms of her work experience as a self-employed entrepreneur for over 6 years,
his leadership skills, his existing network of connections, his customer base in his other
businesses, his professional alliances, and the overall background of the researcher will increase
the inline advertising modeling agency's odds of success. (Please see Mr. or Mrs. X’s CV,
profile, work experience, and educational background attached.) Hence, overall, with respect to
this particular factor of feasibility analysis, the inline advertising modeling agency business
concept was found to be strongly viable because both the organizational and human resources
needed for its success are in place, available, and adequate to support the venture.

7. On Social and Economic Analysis:

 At the end of this study, the inline advertising modeling agency business concept was
found to be viable on this particular factor of feasibility analysis. Here are some of the
main reasons for that conclusion:
The benefits of job creation for Addis Ababa society, women, and youth;
 benefits accrue to Addis Ababa City and the federal government in terms of payroll and
income tax revenue generation;

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  Ethiopia benefits from the transfer of practical experience, know-how, and technology,
specifically from the innovative, turn-key format or style of establishing and conducting
business enterprises, or simply, business systematization;
 In terms of raising the work culture and the national culture of Ethiopia
 Benefits accrue to the natural environment and planet earth; as an inline advertising
modeling agency, we are doing business in compliance with the principle of Do no
harm!"

8. On Financial Analysis:

Numerous financial and capital-budgeting calculations have been performed to check cash flow
for at least four years and the overall viability and profitability of the inline advertising modeling
agency concept, such as the Net Present Value (NPV), the Internal Rate of Return (IRR), the
Benefit-Cost Ratio (BCR), the Payback Period (PBP), the Accounting Rate of Return (ARR),
and the Break-Even Analysis (BEA). All these methods have been found to be acceptable at a
minimum and excellent in most cases. The inline advertising modeling agency business concept
was found to be viable on all the above calculations and financial evaluation methods.
Last but not least, all eight decision factors or feasibility components studied (and summarized
hereinabove) were found to be viable. All were simultaneously and cumulatively present as
required. In other words, all the critical variables investigated were found to be viable and
acceptable. As a result, the inline advertising modeling agency was ultimately deemed to be a
profitable business and a project worth implementing.

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 5.2. Conclusions

This project conducted a successful study and examination on the feasibility of establishing a
turn-key business systems consulting firm, a project named inline advertising modeling Agency,
in Addis Ababa, Ethiopia. Both primary and secondary data were collected and used to make
reasonable conclusions regarding the feasibility of the business concept on eight themes or
variables that were considered critical factors in making a determination regarding the overall
feasibility and profitability of the project as a business venture for the amount of resources (both
financial and non-financial) that would be committed to or risked for this project.

Eight variables were determined to be the focus of the study based on the study's design and
model. The eight components or variables that were studied and analyzed included: markets and
demand analysis; raw materials and supplies study; location and site assessment; production
program and plant capacity; technology selection; organizational and human resources; social
and economic analysis; and finally, financial analysis. All these components and variables were
found to be acceptable and viable at the conclusion of the feasibility study. These variables were
supposed to be cumulatively present and affirmatively exist for the project to be acceptable or
viable.

Overall, the project was ultimately deemed acceptable and profitable for the organizer and
models. Besides, inline advertising modeling agency projects create employment opportunities
and generate tax revenue without any negative impact on the natural environment. It is socially
and economically beneficial for the city of Addis Ababa, its business community, and Ethiopia.
The final conclusion was that, based on the analysis of the data gathered and the analysis
conducted, the inline advertising modeling agency project is viable and acceptable on all eight
factors or variables of evaluation. Hence, it was deemed to be profitable to the organizers and
models and beneficial to the community it will be established in, Addis Ababa. Inline advertising
modeling agencies will be a positive addition for the city of Addis Ababa, its business
community, and Ethiopia. The final conclusion was that, based on the analysis of the data
gathered and the analysis conducted, the inline advertising modeling agency business project is
viable and profitable. The future of a business depends on loyal customers, employee
competence, investment strategy, and business structure. Starting an inline advertising modeling

55
agency aims to survive on its own cash flow without external financing. Offering lower-priced
services and a corporate culture focused on employee welfare is key. A profit-sharing
arrangement for management staff will be available for five years or more, ensuring they are
hired and retained in the industry. This approach will help the agency survive on a lower profit
margin and build a successful business.

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 Appendence

Dear Sir or Madam:

Subject: Survey I am conducting my project entitled to Feasibility study on inline advertising

modeling agency
The objective of this questionnaire is to is to assess the feasibility project is Ensuring the safety of
working models and facilitating job opportunities by opening an international modeling agency
service in Addis Ababa.

This project is intended for the partial fulfillment of the requirement of the Award of Master of Business
Administration Please find a questionnaire attached here with and I kindly request you to your valuable
time to fill the questionnaire. The collected data will be statistically analyzed, and conclusions will be
drawn that will assist the Ethiopian construction project towards the plastering machine. If you wish, I
will be happy to provide you with the results of the study once finished. Your assistance and cooperation
will be highly appreciated. Please ignore this question if you feel that you are not enough position in
answer the questions.

Thank you,

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 Instruction

Tick this right mark on the boxes provided

Basic information of the respondents

Full name sex age

Phone number Educational level

Modeling experienced

Questionaries’

1. Do you prefer to work with an agency?

Yes No

2. If you answered yes or no to question number 2 above, explain why?

3. Do you think that having an agency is beneficial for women and young people?

Yes No

4. Explain your answer to question 3 above. How does it benefit, and how does it harm?

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5. Do you know about mother modeling agency?

Yes No

6. If the answer to question number 5 is yes, how much do you think it will give you?

7. Do you know the difference between casting agent and modeling agency?

Yes No

8. If yes to question 7 above, what was your experience?

9. Would it be useful if a modeling agency in Ethiopia works for professionals in this

industry?

Yes No

10. Explain your answer to question 9 above.

11. Have you had the opportunity to work in the country or with a local advertising modeling
agency?

Yes No

12. If yes, to question number 11 above, how did you enjoy it? What challenge did you do?

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13. How do advertising models perceive the changing environment of the modeling industry?

14. How do models perceive their job security?

15. To what extent is self-determination theory a useful framework for analyzing advertising
models of job security?

16. What kind of importance does working together with modeling agencies in the art
industry and other businesses provide at the national level?

17. What will happen to you when you decide to work with an agency?

18. How many times have you tried to find and work with a modeling agency?

19. When you work with an agency or if you find a modeling agency that works with you
and has the opportunity to work with you, would you be willing to accept the agency's
commission?

20. Are there specific organizations that are associated with modeling agencies or
organizations that work in a transparent way?

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21. Are there any new trends or innovations in the modeling agency industry that you are
aware of?

22. Who benefits from having an advertising modeling agency?

23. Which part is affected by the presence of an advertising modeling agency?

24. How important are sustainability and ethics in your decision to join an advertising
modeling agency?

25. Modeling is a profession that is gaining acceptance in the country. Is the existence of an
advertising modeling agency beneficial for the industry?

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