BAHIR DAR UNIVERSITY

DEPARTMENT OF CHEMICAL ENGINEERING

Entrepreneurship Project
Proposal title-: production of chora soap
Group Members
1. Efrata Tesfaye
2.Faiza Seid
3. Eyob Becho
2015 EC
Outline
Introduction

The nature of the business

Market plan &customer

strategic direction

Marketing methods

financial analysis

The profit and loss forecast

Cash flow
 Introduction

 Our soap is prepared from fat (Mora) and sodium hydro oxide &various row
materials
 This business is required to establish a general partnership.
 The name of the business is
Details of share or capital structure

No Name % of Total amount in birr

contribution
1 Efrata Tesfaye 15% 30,000.00

2 Faiyza Seid 15% 30,000.00

3 Eyob Becho 15% 30,000.00

4 micro financing 55% 410,000.00

Total Beginning capital 500,000.00

 The nature of the business

• Product
We have two basic product lines: CHILD assure, intended for day care
facilities, and an antimicrobial-based product for hospitals (HEALTH assure)

Restaurants (FOOD assure) - the antibacterial products are not yet in

development. The various product lines, competitors and future product
possibilities for SAFE assure.
 
Market plan customer

Marketing strategy

For our initial target market of day care facilities, the company will implement
to parallel marketing efforts.

Competitive Analysis

There are various other small companies that will challenge our business.
Though all of these companies challenge our business in some way,but we will
compete with our competitors both the small and big name companies.
 Threats

slow recovery process of the economy from the current crisis

changes in the business environment that might reduce our sales.

higher taxes in the future.

Uncertainty of the global market for the products due to global

environment issue
 strengths &weakness

• Strengths

A)The ability to absorb knowledge, make quick changes when needed,

being able to talk to people, being smart and having a lot of knowledge
and just wanting to help people with what they need.

B) excellent quality of soap

C) energy-efficient soap preparation equipment and technology

Weaknesses

A) We have a lack of knowledge of the soap business, limited amount of

funds and We going up against big companies that also sell natural soaps.

B) cost factor associated with keeping state-of the equipment and

technology

C) start-up challenges

D) limited operating capacity during peak sales periods

Objective

Genral objective

• The genral objective is to produce (Mora) soap with better quality of natural soap.

Specific objective

• To create value for customer and shareholder by continually improving and

reducing preventable illness through the use of our soap.

• Patient protection to defend our time sensitive dye and product concept from
competitor.
 Pricing strategy

• The value of our product will not be attractive to extremely price sensitive
customers.

Promotion Strategy

Our management team will fiercely pursue positive public perception through
government endorsements promoting the benefits of our products

Sales Strategy

• Sales strategy will initially address within and outside university managers

with ordering authority for the establishments in that area.
 financial analysis

Financial Plan

Based on market research, we expect the business to begin growing at 45% per month
for the first 12 months, then at a yearly rate of 90% for the next two years. 

Key Financial Indicators

• Sales - Our sales are projected to grow at a consistent rate of 90% yearly

• Gross Margin - As we grow, become more efficient, and gain economies of scale we
begin to see a slight growth in our margins.

• Inventory Turnover - We will begin operations with a preliminary purchase of

50,000/ 38,000 gallons of soap.
The profit and loss forecast (2016-2018)
  2016 2017 2018

value % Value % Value %

Sales turnover 25000 100 35000 100 37000 100

Overhead expenses            

Personal(labor)     8000 22.8 8500 22.9

Server monthly fee 5000 20        
Head office rent     5000 14.2 5000 14.2
Server machine room rent         1000 2.8

Office material     1000 2.8 300 0.8

Social expenses 5000 20 7000 20 7500 21.4
Telephone, internet… 1000 4 1000 2.8 1000 2.8

Marketing cost            
Market research 700 2.8 500 1.4 300 0.8
Media advert 800 3.2 600 1.7 500 1.3
Internet promo 700 2.8 500 1.4 300 0.8
Personal promo 700 2.8 500 1.4 200 0.5
Fliers 500 2 500 1.4 200 0.5
Total expense 14400   24600   24800  

Net profit 10600   10400   12200  

Tax of profit (15%) 1590   1560   1830  

Year deficit 9010   8840   10370  

Cash flow (2016)
  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cash flow in                        
Sales turn over 400 700 900 1000 1400 1900 2500 3000 3000 3600 3600 3000

Total cash flow in 400 700 900 1000 1400 1900 2500 3000 3000 3600 3600 3000

Cash flow out                        

Personal (labor)                        
Server monthly fee 250 400 400 450 450 450 450 450 450 450 450 450

Head office rent                        

Server machine room rent                        

Office material                        
Social expense   200 400 450 450 500 500 500 500 500 500 500
Telephon,internet   60 70 80 90 100 100 100 100 100 100 100
Investments                        
Market research 250 150 150 150                
Media advertisement 100 90 80 80 70 70 60 50 50 50 50 50

Internet promotion 120 65 65 65 65 65 55 55 55 30 30 30

Personal promotion 110 100 80 70 70 60 40 40 40 30 30 30

Fliers 70 50 50 50 50 50 50 50 20 20 20 20
  900 1115 1295 795 1245 1295 1255 1245 1215 1180 1180 1190
 
 
Total cash flow out