Videographer/Filmmaker Living in Addis Ababa Seeking Foreign Companies

My name is Natea Abdo.I am graduated with chemistry from Addis Ababa University.Now I have my own soap and detergent manufacturing enterprise. I develop good experience on producing soap and detergent by small capital.But now I want to share my experience in 10 zones of oromia regional states.so I need support to fulfill my vision.therefore help me.

see my business plan and association


 

Table of Contents

                                                                                                                                                                                                                                  Page
1. Vision ..............................................................................................................1
2. Mission.........................................................1
3. Goals1
4. Short history of Natea &Ayelu soap and detergent enterprise .1
4.1. Brief Profile of the Entrepreneur..............................................................................................................................................................................2
5. Business Proposal for enterprise that is established in one specific town 3
5.1. Short History of the enterprise .3
6. Executive summary...3
7. Owners profile ...4
8. Marketing Strategy,,,,4
8.1. Division of Market.4
8.1.1. Higher Level...5
8.1.2. Middle Level...5
8.1.3. Lower Level....5
8.2. Price5
8.3. Production..5
9. Marketing Promotion strategies.............................................................5
10. Place.6
11. Channel of Distribution6
11.1 Sales Force6
11.2. Point of Sale....6
11.3. Key Distributor (KD).6
11.4. Marketing Plan Product .6
11.5. Marketing Plan Price ....7
11.6. Marketing Plan Place.7
11.6. Marketing Plan Promotion.8
12. Production Process.8
13. Quality improvement strategies.9
14. Major competitors..........9
14.1. Strength and weakness of the competitors..10
14.1.1 Strengths.10
14.1.2. Weakness...10
15. SWOT analysis ...10
15.1. Strength..10
15.2. Weakness...10
15.3. Opportunities..10
15.4. Treaties...10
16.   Administration and Finance of the Business.11
16.1.   Administrative Function11
16.2.   Financial Function.11
16.3   Social Responsibility..12
17 .Organizational Structuer (Staffing)...12
18. Staff cost.13
19. Fixed assets needed.13
20. Yearly raw materials needed.14
21. Overhead expenses..........................................15
22. Financial plan..17
23. Monthly sales plan17
24. Operational cost plan.18
25. Cash flow statement18
26. Profit & loss statement..20
27. Break-even point...20
28. Loan Collateral21
29. Liquid Cash Flowing Process.22
30. Debt Pay Back Period.22
31 Economic and Social Benefit and Justification 23
32. Annexes.24

                                                                                                                                                                                 


1. Vision
    To be Big and Modern Soap and detergent  manufacturing and exporting company in east Africa at 2020
2. Mission
    To manufacture and provide consistent and quality soap and detergent  within the framework of social corporate responsibility at the end of 2014
3. Goals
    To play a significant role in socio economic development of Ethiopia through development and efficient utilization of untapped natural resource (TALLOW) on sustainable basis.
    To manufacture quality soap and detergent  and provide it with fair price
    To establish well networked soap and detergent  manufacturing enterprises through out oromia regional state
    To carryout research and development in the area of soap and detergent
    To establish soap and detergent  manufacturing industry
    Create job and job opportunity to engage in reduction of poverty and unemployment.
    To be best exemplary for young people who seek and expect job from government and other body in a sense that they can develop the habit of using the enormous resources available in their environment.
    Engage in exporting in order to generate additional revenue from foreign exchange.
4. Short history of Natea &Ayelu soap and detergent enterprise
Natea and Ayelu Soap and Detergent Parternership are registered with the countrys Micro and Small Enterprises in 2004E.C with business registration number OR/OS/7-3/0600000000134/05 as a sole proprietorship and are located in Alemgena town. It starts work with 30,000birr.Out of this 6,000birrr is owners equity (from owners family) and 24,000birr borrowed from Oromia credit and saving association. The enterprise get working place from sebeta city administration. Its main engagement would be manufacturing laundry soap and detergent. The raw materials of soap and detergent are local base and imported. Source of raw materials:
    Tallow: from keras, skin and hide collectors and from  the community 
     Labsa: from importes like jigera plc,afro-german chemical importer,ijica chemical importer and other chemical importers
    Caustic soda; from Batu caustic factory,markato and from different chemical agents like Jigra chemical plc,Ajica chemical plc and others
    Dolomite;Fom Mintech Ethiopia plc,MBI and DH gada
    Sodium silicate and other chemicals  like perfume, titanium dioxide etc: From gulale soap factory,Zaki soap factory,markato and from different chemical agents like Jigra chemical plc,Ajica chemical plc and others
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    Carton:Minaye carton factory,Burayu carton factory and other carton factory
    Jirry-cans:from Avon plastic factory and other plastic factory
Generally many soap and detergent raw materials are available in the country. Using this local resource it produces soap and detergent which is used for washing clothes. Now the enterprise creates job opportunities for six people and in the nearby future it will create job opportunities for 100 people if this proposal of expansion gets approval and support from all concerned bodies. It produces different size of soap 100gm,200gm and 250 gm and different size detergent 1000gm,500gm and 250gm.Even if all the community are the  customer  of Natea & Ayelu soap and detergent enterprise, it sell its  products mainly
1. In Sebeta,Merkato, Jimma ,Illu ababora, Wandogenet,South west shoa and West shoa
2. At different bazzers and exhibitions
The enterprise pay the credit with in six month and the current audit shows the enterprise own a capital of 285839.40 birr
4.1. Brief Profile of the Entrepreneur
The business is owned:
1. Natea Abdo:
    Graduated with Bachelor degree by applied chemistry from Addis Ababa University
     Have three years work  experience in different soap and detergent factories
    Take different training on soap and detergent ,finance, business management and entrepreneurship
2. Ayelu Beyene:
    Graduated with Bachelor degree by applied Biology from Hawassa University
They were motivated to go into the manufacturing of laundry soap and detergent after they get experience by working in different companies. They gathered information and studied the process of making soap and detergent from several literatures, books, internets, companies and ministry of industry. They attended training on soap and detergent making technology. They have also friends who are presently working in a soap and detergent manufacturing firm whom they have approached for information and guidance.
To fulfil the above proposed vision the owners of Natea &Ayelu soap and detergent enterprise decide to establish well net-worked soap and detergent  manufacturing enterprises through out 10 towns of Oromia Regional state by using two methods
1. Manually (without machine): producing quality soap and detergent with small capital and man power only
2. By using machine
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5. Business Proposal for an enterprise that is established in one specific town
5.1.   Short History of the enterprise
Owners of the business (the enterprise is owned by 10 university graduate that live in that specified town)
1,,6.
2. 7
3. 8...
4 9..
510. .           
    The name of the business.. soap and detergent enterprise
    Capital of the business:-298531.375birr
    The business is sited with an area of . meter square
    Location of the business:
    Type of the business:-Manufacturing
    Main activity of the business: Manufacturing Laundry Soap and detergent.
    Expected starting of the business: at the end of 2006, Eth. Cal.
    Contact address
                      Tel;-
                      E-mail
                                                     
6. Executive summary
This business is new one. Its main engagement would be manufacturing laundry soap and detergent. The raw materials of the soap and detergent are local base and imported.  Using this local resource and imported raw materials it produces soap and detergent which is used for washing clothes.
As it is known the business of producing and selling soap and detergent is a very continuous activity. The market is not a onetime market. The item is a fast moving goods.
Ethiopia is the population with more than 80,000.000 people and this is a huge market for business like this. It is clearly seen in the market, this huge demand for the item is not satisfied.
With the above mentioned ideas, the owners of this business are encouraged in engaging themselves in the production of this item using local resource and imported raw materials and play their part to the market gap. The owners of this business must be aware about the quality of the product and its interaction with social and environment in while it produces the goods. The country has untapped raw material for the production of this product.  It is the deep wish of this business to tap this resource and try to satisfy the market in desired quality and quantity.
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The enterprise is going to produce job opportunities for 10 people and it also contribute to economy development of the country. The amount of start up capital needed is 298531.375Birr, out of this 59706.275birr is the contribution from the members (owner equity) and 238825.1birr will be borrowed from credit and saving association. The business expected annual turn over for first year is 4, 251,000birr.
7. Owners profile
No    Name    Address    Qualification    relevant experience     Function in the business
1            Bsc degree by chemical (industrial )engineering   
One year and above     Managing director
2            Bsc  degree by applied chemistry    One year and above    Production  and quality manager
3            BA degree by Business & Economic related    One year and above
    Financial Manager
4            Bsc degree mechanical engineering
    One year and above
    Technical  manager
5            BA degree by marketing
   
One year and above     Marketing manager
6            BA/BSC degree by any field    One year and above   
7            BA/BSC degree by any field    One year and above
   
8            BA/BSC degree by any field    One year and above
   
9            BA/BSC degree by any field    One year and above
   
10            BA/BSC degree by any field    One year and above
   

8.   Marketing Strategy
As explain above the market of cleaning materials, laundry soup and detergent, is big. The country is not having such problem for its raw material. The point is using this raw material, produce the product and how we address the market.
8.1. Division of Market
It needs to segregate the society (market) into manageable way i.e. targeted market. For this purpose as per the research the market is divided in to three levels. These are: Higher, Middle and lower levels.
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8.1.1. Higher Level: this society who prefer relatively very high price product or service. A group who never want to buy the local product.
8.1.2. Middle Level: target group who are in between and would like use local product if the product or service is done with good quality.
8.1.3. Lower Level: this is the target group who are much sensitive to the price and quantity of the product or service.
Therefore, as per the division of the market, it is this business market strategy to address mainly the lower level of society.  It uses different strategy to reach out this big market.
8.2. Price.
    The targeted group is too pricing sensitive and the price is to be very lowest to that of the imported product. Take in to consideration of the other similar product producers, market price is to be set.
8.3. Production
The business is intend to produce the product with various size depends on some marketing factors.  The size of soap would be: 250 gram, 200 gram, 120 gram and the size of liquid detergent will be:1000gm,500gm and 250gm.
One of the strategies of this business to be more profitable is by presenting the same market product with better quality. The quality includes: color, smell, detergency, appearance, size and other qualities

9. Marketing Promotion strategies
Having a good product and good price is mean nothing by itself. People should have knowledge of product. What makes it different from other? The owners must make an introduction work like: practical demonstration like washing clothes at the spot of the targeted consumer, introduction market price, incentive which makes consumer to by more and other promotional Medias like
    Business cards
    Pamphlets
    Brochures
    Oral advertizing
    Buzzer  and exhibition
    Using  different public market areas
    Using different whole sellers and retailers
    Using different social medias
    free delivery for volume purchases

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10. Place
Having done all the above mentioned activity the final thing to do is reaching out the product to the targeted group. For this we have the channel distribution.
11. Channel of Distribution
11.1 Sales Force
      The business will have its own sales persons. The sales persons will take the product to their designated sales place. The sales persons will have their sales area within
11.2. Point of Sale
     The business will have different whole sealers in different woreds and People come at the spot of the manufacturing place and purchase the item with the whole sale price.
11.3. Key Distributor (KD)
        The products would also reach out to the up country. In reaching out these up countries we form a key distributer who receive the product and distributed to the area. To do this will have a KD price so that the distributer will be encouraged to take the product from the manufacturing place.
    11.4. Marketing Plan Product
The type of product produced by the enterprise are soap and detergent made of pure rendered fat, labsa,caustic soda  and other chemicals like water softener and builders. These chemical give good quality to the product. The product packed with carton and jerry-cans that shows address, quantity and easy to handle. If there is a fault after sale, we give response and take full responsibility. 2500pcs of soap and 250kg liquid detergent are planned to produce per day.   





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11.5. Marketing Plan Price
Soap
120gm, 200gm, 250gm
How much are customers willing to pay?    How much are competitors price?    How much is the enterprise price?    What are the reasons for setting the enterprise price?
Highest-2.5,4,5   
2.25,3.75,4.75    Highest-2.5,4,5    The enterprise gets raw materials with low price. Therefore the lowest price, 2, 3.25,4 is enough for our enterprise to be profitable but it is less than competitors cost. So, it is optimum or fair for the customers.
Average-2.25,3.75,4.75        Average-2.25,3.75,4.75   
Lowest-,2,3.25,4        Lowest-2,3.25,4   

Liquid detergent
1000gm,500gm, 250gm
How much are customers willing to pay?    How much are competitors price?    How much is the enterprise price?    What are the reasons for setting the enterprise price?
Highest-30,15,7.5,   
28,14,7    Highest-30,15,7.5,    The lowest price 22, 11, 5.5 is enough for our enterprise to be profitable but it is less than competitors cost. So, it is optimum or fair for the customers.
Average-28,14,7        Average-28,14,7   
Lowest-,22,11,5.5        Lowest-,22,11,5.5   

11.6. Marketing Plan Place
The enterprise is founded in town.  is selected as business area because there are few competitors and raw materials can be easily collected from the surrounding area. There is also high demand of the product in the town. The product will be distributed directly to the consumers.
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11.6. Marketing Plan Promotion
Marketing is done by displaying the products to the local community and through personal selling
12. Production Process
Laundry soap
Laundry soap production regarding to this project is batch system. Soap making or the saponification process is done by reacting tallow with a caustic alkali. The properties of the resulting soap depending on the mixture of fats used the kind of caustic alkali and the actual process employed. Pretreatment of tallow like bleaching and deodorization is required to achieve the color, odor and performance features desired in the finished bar. Semi-Boiled or cold processes which is economical and simple ways of making soaps is used.  It requires low-cost investment in equipment and no sophisticated skills. In addition to the above two alternatives, continuous processes with automated and compact equipment are widely employed to save installation space, consumption of steam and electric power and labor.
    Tallow slowly heated in an open pan; concentrated caustic soda solution added slowly. The mixture must be stirred continuously and boiled under controlled conditions, to ensure completion of the saponification process without over-boiling.
    A moderate heat is maintained and each addition of caustic soda solution is allowed to react fully with the tallow, before the next addition. Hasty addition of caustic soda solution will result in undesirable graining. If the mass shows signs of separating or graining, further water is added to bring the oil charge to a homogeneous state.
     Eventually the mass thickens, gets increasingly transparent and finally assumes a peculiar shiny translucent surface free from froth.
    Colors are to be added to the soap these should be incorporated before closing the boiling operation.
    Perfume is added after the soap in the pan has become cooled a little.
      Builders and fillers are added and thoroughly crutched in; the soap is then transferred to frames for subsequent cooling and cutting or dried and made ready for molding process if molding machine used


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Liquid detergent
Detergent is an essential ingredient in modern living, used daily for medicinal and laundry purposes, for household cleansing and personal hygiene. Synthetic detergents have largely displaced soap as a heavy-duty washing material, especially where hard water is available. Its manufacture being essentially the treatment of Labsa with alkali, a chemical process that is the same whether production is done in a jar or in a factory. The simplicity of the process has led to its worldwide practice as a small business operation. Large factory operations are exclusively based on the modern continuous process requires machinery that is expensive, and a very large output is required to be economical. Detergent can still effectively manufactured by the traditional batching method, but it requires supervision to ensure a good quality product. Initial startup operations typically employ the batch process until the economies of production are developed and the market demand requires investment in the more expensive continuous process. However, the batch process requires very little training and skill to produce a good qualities detergent, higher qualities are easy to achieve with closer control. The main ingredients are labsa, caustic soda; sodium silicate, and other builders and fillers.
13. Quality improvement strategies
    Giving continuous training for workers
    Using quality raw materials
    Establishing standard laboratory
    Working with quality and standard of the country
    Using customers feed back and working to satisfy customers need 
    Close control of production process
    Using right person in the right place
    Jointly working with other soap company
Generally our enterprise always work for better quality and to fulfill customers needs
14. Major competitors
1. Bekas chemicals plc
2. Waliso soap and detergent plc
3. Ethio-Esian soap and detergent plc
4. Rapi soap and detergent plc
5. Star soap and detergent plc and other soap manufacturing company are our main competitors.
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14.1. Strength and weakness of the competitors
14.1.1 Strength
    Huge amount of capital
    Mass production by using imported machineries
    Advertizing by mass media
    Experience
14.1.2. Weakness
    Import  raw materials
    High product price
    Not using local raw materials
    No direct contact with end user
    No sell with the amount of end user desire
15. SWOT analysis
15.1. Strength
    Low price product and direct contact with end user
    Using local raw materiel
    Using home made machineries
    Home to home advertizing
    Using net worked production system around target customers
15.2. Weakness
    Small capital
    Small product
    Lack of owners experience
15.3. Opportunities
    Good government polices on micro and small enterprises 
    Huge market gap
    Good  incentives by the government for young entrepreneurs
    Huge amount of untapped raw materials
    Good people support for young entrepreneur
   
15.4. Treaties
    Lack of commitment of the owners
    Competitors  evil doing  because of market
    Enterprises unwillingness to cooperate with other
    Not keeping of enterprises top secret.
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16.   Administration and Finance of the Business
16.1.   Administrative Function
Basically, the head of the business is the Managing Director, supported by the other staffs. For all staff will have its own clearly stated duties and responsibilities.
To run this business effectively and efficiently, reasonable training must be given for the members. The hiring and firing of an employee will have formal procedures. It is governed by the rule of the country and interest of the business. All employees will have clear written job description.
One of the basic functions of this department is the direct and serious control of the hygienic and cleanness of the business areas and also outside because the business would be connected in this regard.
Employee records, profile, will be maintained; it is based on these that various remuneration be done.
It is this department which checks and makes the necessary correction of maintenance the firms items like:, light system, electricity, water systems, doors/windows, telephone, and equipments. Clean the whole firm yard.
16.2.   Financial Function
How big businesss revenue is, it does not help the business to meet the stated objective or vision of the business, unless the business has strong financial control. A pre defined financial rules and procedure must be established.  A system that addresses the financial issues like: planning, directing, controlling and reporting.
Planning:  the owners need to make an advance planning. This would be a yardstick in controlling the firm financial activity. Where the business is heading, knowing in advance all the business revenues, expenditure and big purchases. Look for financial resource. Anticipate the negativity in advance. 
Directing:  by organizing all the business resource gear it to the organization vision. It direct or works the firms expansions. Design in advance financial work procedure. 
Controlling:  one of the key duties of finance is its controlling capacity of the organization assets.  The organization cost. The efficiency and effectiveness of acquired assets. Designed rules and procedure, implement, control it and make the correction for any variance.
In controlling the other main thing need to be given due attention is the liquid cash. The enterprise must  design a system to control like a voucher system for its all payment collection made receipt, cash registration (point of sale equipment), made deposit to the bank against the bank summary format and finally make a report (daily, weekly, monthly, quarterly, semi-annually and yearly report). Monthly bank reconciliation is a must thing to do. Surprise auditing is the part of the controlling system.


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Reporting:   all the financial activities must be reported in prescribed formats. The report could be for the inside or outside parties. It is based on this financial statement that the management makes its decision. It is based on this report, profit/loss, that to make the origination duty in effecting the payment of tax to the government. 
16.3   Social Responsibility
This business operate1s with in the society and for its survival the proper functionality of the social is a must. The business has to participate in social development activity.  Have great concern in environmental protection. Organizes, coordinate and participate in environmental up grading activities.  Should not do or involve in any of downgrading the environment.   
17 .Organizational Structuer (Staffing)

                             


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18. Staff cost
Laundry soap (Five people)
No    Name    Position     Quantity    Salary per month      Remark
1        Managing  Director    1    1000   
2        Account Chief    1    1000   
3        Production Manager    1    1000   
4        Sales Department Head    1    1000   
5        Mechanical manager    1    1000   
6        Total    5    5,000   


    Variable labor cost per unit = 5,000/65000=0.077birr
Liquid detergent (Five people)
No    Name    Position     Quantity    Salary per month      Remark
1        Managing  Director    1    1000   
2        Account Chief    1    1000   
3        Production Manager    1    1000   
4        Sales Department Head    1    1000   
5        Mechanical manager    1    1000   
6        Total    5    5,000   
    Variable labor cost per unit = 5,000/6500=0.77birr
19. Fixed assets needed
Laundry soap
    Sir No.    Item Description    Unit    Qty    Unit Price    Total Amount
    1.1    Molding machine    pcs    1    50,000    50,000
    1.2    Soap Cutter    pcs    1    2,000    2000
    1.3    Soap Mixer    pcs    1    6,000    6000
    1.4    Plastic barrel    pcs    1    400         400
    1.5    Metal barrel    pcs    2    300         600
    1.6                                  Balance    pcs    1    1000       1000
Total    60,000

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Liquid detergent
    Sir No.    Item Description    Unit    Qty    Unit Price    Total Amount
    1.4    Plastic barrel    pcs    1    400    400
    1.5    Metal barrel    pcs    2    300    600
    1.7    Digital balance    pcs    1    2400    2400
Total    3400

20. Yearly raw materials needed

Laundry soap
Raw materials    Unit    Quantity    Unit cost    Total cost    Remark
Tallow    kg    49523.81    20    990,476.2
   
Caustic soda    kg   
7428.57    25    185714.25
   
Dolomite    kg    49523.81    2.5    123809.525
   
Sodium silicate    kg    12380.95
    8    99047.6
   
Perfume    kg    123.81
    500    61905
   
Water    KG    74285.7    0.005    371.43
   
carton    Pcs     15600    10    156000   
Total    1617324   

    780,000 pieces  with 200gm soap will be produced per year(65000 pieces per month)
    Variable material cost/unit= 1617324/780,000 = 2.07



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Liquid detergent
Raw materials    Unit    Quantity    Unit cost    Total cost    Remark
Labsa    kg    14040    57    800280
   
Caustic soda    kg   
2340    25    58500
   
Sodium silicate    kg    2340
    8    18720
   
STPP    kg    780    60    46800   
Perfume    kg    78
    500    39000
   
Water    kg    58500    0.005    292.5   
Total    963592.5   
    78000 kg  liquid detergent will be produced per year
    Variable material cost/unit=963592.5/78000= 12.35


21. Overhead expenses
Laundry soap
No     Overhead expenses     Amount per month
1    Electricity    75.00
2    Water supply    50.00
3    wood    65
4    Telephone    195   
5    Transport    1300
6    paper    25
7    promotion     50
8    Indirect labor cost    1200
9     Maintenance of equipments    100.00
10    Over head cost    2000
    Total    5060
    Factory  Over Head /unit:5060/65000=0.078
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Liquid detergent
No     Overhead expenses     Amount per month
1    Electricity    25.00
2    Water supply    100.00
4    Telephone    195.00   
5    Transport    1300
6    paper    25
7    promotion     50
8    Indirect labor cost    1200
10    Over head cost    2000
    Total    4895
    Factory  Over Head /unit: 4895/6500=0.75
Production costs of each item to be produced
Laundry soap
    Variable Raw materials per unit          =2.07
    Variable labor cost per unit               = 0.077
    Factory overhead expenses per unit =0.078
                              Total Variable cost      = 2.225
    -Total Fixed cost=Salary expense/month + Rent expense/month
                                                                      = 5,000+ 0= 5,000
Let the enterprise will cover all variable costs after producing 4878 pieces.
   Break even quantity = Fixed cost/ (Selling price-Variable cost per unit)               
                                4878 =5,000/ (Sp-2.225)   
                                   Sp= 15853.55/4878 = 3.25
Liquid detergent
    Variable Raw materials per unit          =12.35
    Variable labor cost per unit               = 0.77birr
    Factory overhead expenses per unit =0.75
                              Total Variable cost      = 13.87
    -Total Fixed cost=Salary expense/month + Rent expense/month
                                                                      = 5,000+ 0=5,000
Let the enterprise will cover all variable costs after producing 615kg.
   Break even quantity = Fixed cost/ (Selling price-Variable cost per unit)               
                               615=5000/(Sp-13.87)   
                                  Sp= 13530.05/615 = 22
16

22. Financial plan
                                                  Capital requirement
Capital requirement/project cost
      Amount
Fixed assets      
        Equipments     63400
        Others    -
Total fixed assets    63400
Pre-operating expenses    -
Working capital/Operational cost of one month   
         Raw materials    215076.375
         Administrative expenses    100.00
         Staff costs of one month    10,000.00
        Overhead expenses    9955
        Workshop rent    0.00
Total working capital of one month    235131.375
Total capital requirement    298531.375

23.Monthly sales plan
Month         1     2     3     4     5     6     7    8     9    10    11    12
65,000Product 1
    Price     3.25    3.25    3.25    3.25    3.25    3.25    3.25    3.25    3.25    3.25    3.25    3.25
    Quantity     65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000
    Revenue     211,250    211,250    211,250    211,250    211,250    211,250    211,250    211,250    211,250    211,250    211,250    211,250
Product
Product 2
    Price     22    22    22    22    22    22    22    22    22    22    22    22
    Quantity     6500    6500    6500    6500    6500    6500    6500    6500    6500    6500    6500    6500
    Revenue     143000    143000    143000    143000    143000    143000    143000    143000    143000    143000    143000    143000
All product    Revenue     354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250
17
24. Operational cost plan
Product 1
    Quantity    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000    65,000
    Unit cost     2.225    2.225    2.225    2.225    2.225    2.225    2.225    2.225    2.225    2.225    2.225    2.225
    Total cost     144,625    144,625    144,625    144,625    144,625    144,625    144,625    144,625    144,625    144,625    144,625    144,625
Product 2
    Quantity    6500    6500    6500    6500    6500    6500    6500    6500    6500    6500    6500    6500
    Unit cost     13.87    13.87    13.87    13.87    13.87    13.87    13.87    13.87    13.87    13.87    13.87    13.87
    Total cost     90,155    90,155    90,155    90,155    90,155    90,155    90,155    90,155    90,155    90,155    90,155    90,155
All product    Total  cost    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780
25. Cash flow statement
Particulars     Pre-operating
period    
Months
Cash at the beginning of the month         1     2     3     4     5     6     7     8     9    10    11    12
Cash inflow                                                    
    Equity     59,706.275                                               
    Borrowings     238,825.1
                                               
Cash sales         354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250
    Collection of A/R                                                    
     Other income                                                    
     Total cash inflow     298,531.375    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250    354,250
Cash outflow                                                    
18

Pre- operating expense                                                    
     operating expense         234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780    234,780
     Purchase of fixed assets     63,400
                                               
Principal                                                   
Interest                                                   
Rent                                                   
Salary        10,000    10,000    10,000    10,000    10,000    10,000    10,000    10,000    10,000    10,000    10,000    10,000
Admnistrative expense        100    100    100    100    100    100    100    100    100    100    100    100
  Taxes exepence                                                   
Total Cash outflow     63,400
    244,880    244,880    244,880    244,880    244,880    244,880    244,880    244,880    244,880    244,880    244,880    244,880
Cash at the end of the month     235131.375    109
450    109450    109
450    109450    109
450    109450    109
450    109450    109
450    109450    109
450    109
450







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26. Profit & loss statement

Gross sales        4,251,000
Cost of goods  sold        2,817,360
Gross profit        1,433,640
OPERATING EXEPENSE       
Administrative & Selling Expenses    1200   
Interest expense   
23,882.51   
Staff cost (Salary expense)    120,000    145,082.51
Net profit         1,288,557.49

27.Break-even point
Soap

Fixed costs
    salary                  = 5,000.00
    Workshop rent              0
      Total Fc                   = 5,000.00
          Selling price of one soap is (Sp) = 3.25
          Variable costs of one soap (Vc) = 2.225
Breakeven point Quantity = Fc / (Sp  Vc) = 5,000 / (3.25  2.225) = 4878 pcs soap per month
Breakeven point Br = Fc / (Sp  Vc / Sp) = 15,853.5birr
20
Liquid detergent
Fixed costs
    salary                  = 5,000.00
    Workshop rent              0
      Total Fc                   = 5,000.00
          Selling price of 1kg is (Sp) = 22
          Variable costs of 1kg (Vc) = 13.87
Breakeven point Quantity = Fc / (Sp  Vc) = 5,000 / (22  13.87) = 615kg per month
Breakeven point Br = Fc / (Sp  Vc / Sp) = 13,530birr

Return to Investment= Net profit *100 =       1,288,557.49*100= 431.63`                                   
                                  Amount Invested           298,531.375

  28. Loan Collateral
    The owners of the business must save 59,706.275birr
   
    The business is very profitable and one can see from the proposed the business income statement
    The above indicated loan could be deducted from our capital (assets).
    Family
    Government employee





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29. Liquid Cash Flowing Process




30. Debt Pay Back Period

    Debt Payment time    Payment Amount
    Period    Birr
1    First Year    100,000.00
2    Second Year    100,000.00
3    Third Year    Remaining with interest





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31. Economic and Social Benefit and Justification
Generally the development of a country is not only the responsibility of the government or one party. Development is comes from efforts all citizen of the country; small, big any party of the society.  With this understanding this project can contribute its share to the country.
It aims to raise the quality standards of the rural population by providing quality laundry soap and detergent. It will also result in healthy competition by forcing existing soap manufacturers in the country to improve their product quality.
The project creates job opportunity for 100 People. It is not only the lively hood of these directly employed individual but also their family too.
One of the reasons that the current commodity price problem is the problem of supply as the market demand. This business can contribute some role in this regard.
And the other important thing of this project is it would produce import subsisted goods, it uses the local raw material, it creates financial income for local raw material supplier too.














23
                                                                                           Annex




















24
Establishment of soap and detergent manufacturing enterprises Association
Natea and Ayelu Soap and Detergent Parternership are registered with the countrys Micro and Small Enterprises in 2004E.C with business registration number OR/OS/7-3/0600000000134/05 as a sole proprietorship and are located in Alemgena town. It starts work with 30,000birr.Out of this 6,000birrr is owners equity (from owners family) and 24,000birr borrowed from Oromia credit and saving association. The enterprise get working place from sebeta city administration. Its main engagement would be manufacturing laundry soap and detergent. The raw materials of soap and detergent are local base and imported.
Generally many soap and detergent raw materials are available in the country. Using this local resource it produces soap and detergent which is used for washing clothes. Now the enterprise creates job opportunities for six people and produce different size soap 100gm, 200gm and 250 gm and different size detergent 1000gm, 500gm and 250gm.
The enterprise pay all its credit with in six month and the current audit shows the enterprise own a capital of 285839.40 birr
Natea &Ayelu soap and detergent enterprise wants to expand their experience in 10 zones of Oromia Regional State. This creates job opportunities for 100 peoples. 
1. Borana                                          6, East welega
2. Bale                                               7. Jimma
3. West arsi                                       8.North showa
4. East Hararge                                 9.West showa
5. Kelem welega                              10.Kamise OR Ilu ababora
The above zones are selected with the following criterias
    Availability of raw materials especially tallow with low cost
    Availability  of markets
    Simplicity  to collect raw materials from other areas
    Simplicity to distribute finished products to other areas



1


1. Establishment of the Association and Legality
1.1 The association will be established by means of full will and beliefs of those enterprises engaged in                    manufacturing of soaps and detergents that together can provide various services to the respective enterprises and society and to enable them to move to more modernized soaps and detergents industry.
1.2 A decision with respect to the amount of enterprises needed for establishing the association has not been decided on.
1.3 The association is established under the appropriate law and has a legal personality.
2. Objective of the Association
The main objective of the association is to encourage and strengthen respective enterprise engaged in the sectors of soap and detergent manufacturing and enabling them to withstand any encountered discrimination as well as additionally attaining access to various services in an organized manner. The following represent the respective detailed objectives:
2.1 Cooperation aimed at solving social and economic problems related to soaps and detergents  by adopting , adapting and verifying  foreign   technology to our country at  the of 2010 E,C  .
2.2 Supporting members with facilitating access to the possibility improving their technical   skills and entrepreneurial skills and profiting from training and counseling as well as credit services
2.3 Introducing and advertising products of members enterprises by means of organizing various exhibitions and events both local as well as abroad.
2.5.    Exchanging experiences with various similar enterprise associations both locally and abroad
2.5. To increase the efficient utilization of abundant resource like animal tallow (Animal Fat)) in all Zone of oromia regional state 
2.6 To request support from local and foreign sources for existing and potential enterprises engaged in soap and detergent sectors.
2.7 To establish network with relevant organizations in order to facilitate Services to member enterprises
2.8. To carryout research and development in the area of soap and detergent by organizing modern laboratory
2.9 To   Create Awareness   for Youth as it is possible to seek opportunities around   them to create job rather than to seek job
3. Name of the association
The name of the association is Oromia soap and detergent association.
4. Logo and Publication of the Association
4.1 The Logo shall express the objective, efforts and cooperation of each enterprise and should be prepared by an expert in the field
4.2 The association shall have an annual newsletter, named Oromia
5. Address of the Association
5.1 The head office of the association shall be in Sebeta.
2

6. Sources of Income and Accounts of the Association

6.1 The associations income is generated from member contributions and registration fees.
6.2 In addition, the associations income also originates from various rendered services for and grants on the part of government and nongovernment organizations, which may be obtained in terms of assets, cash and service fees and is also seen to be the income of the association.
6.3 All incomes obtained from various sources and expenses incurred for the association should be regularly audited by the auditor who is officially recognized by the General Assembly. The auditor will also provide financial reports to the general assembly.
6.4 The association will keep the necessary financial records and documents available.
7. Meeting Schedule
The association will be led by the General Assembly, which holds a meeting on an annual basis. The associations executive committee will meet every 3 months. However, when it should become necessary, with over the half of the general assembly presenting a written request, urgent general assembly meetings may be held. In a similar way the executive committee may also hold an urgent meeting.
8. Quorum and Voting
- Quorum is reached when 2/3 or more of the general assembly is present.
- Quorum is recognized when over half of the executive committee is present.
- In the case of equal voicing within the executive committee meeting, the president has the highest vote
- The voting system for the election of the executive committee Members shall be transparent.
9. Opening Bank Account and Utilization
9.1 The association opens a bank account in its name and uses the money.
9.2 All income collected from registration fees, regular contributions and other incomes after being collected by the treasurer will be deposited in the opened bank account. The treasurer will keep an amount of Birr 500 as a contingency or as petty cash fund. However, this mode of money utilization can only be implemented for the secretarys office of the association
9.3 Money on the bank account can only be withdrawn by a prepared cheque and signature of the president and the accountant. But, when the president is not around, the signatures of the vice president can be used.
9.4 Without the general assemblys consent it is illegal to transfer, sell, and exchange or to use any cash or assets of the association for personal benefits.
9.5 It is illegal to undergo fraud by means of deleting or erasing on any of the money collection invoices or other documents prepared by the association.
.

3
10. Rights connected to Membership
- Every enterprise has the right to elect and to be elected.
- Every enterprise has equal voting rights.
- Every enterprise has equal rights with respect to sharing the associations services.
- Within the association there is no discrimination and partiality on the basis of nationality and religion.
- No shares or benefits exist that can be claimed by an enterprise when leaving the association, irrelevant to any reason.
-Elect the manager of their respective enterprise
-The right to change their business addresses by seriously undertaking business feasibility studies by expert from their specific enterprise and/or the association

11. Obligation of Members
Every enterprise
- has the obligation to pay an amount of Birr ... as registration fee, and the amount of Birr ., as monthly contribution.
- has the obligation to respect the objective of establishing the association.
- has the obligation to contribute to the development and benefit of the association.
12. Termination of Membership
Membership is terminated:-
- When an enterprise decides to leave the association on own account,
- When the association stops to provide the expected services,
- When an enterprise discontinues paying its contribution for three consecutive months without any valid reason,
- When an enterprise passes away,
- Memberships will be discontinued, if a member stands in opposition to the associations objectives and, become a hindrance.
13. Right of Association
The association has the right to
- conclude contacts,
- hire workers,
- sue and be sued,
- own and transfer movable and stationary assets,
- issue, accept and transfer financial documents,
- open a bank account in the name of the association and to make use of it.


4


14. Organizational Structure
The general assembly will be the governing body of the association. Management of the association will be carried out by an executive committee, consisting of eleven members. In addition, it will be controlled by a supervising committee which is comprised of three members. The executive committee will only be made up of the following members:
1. President
2. Vice president
3. Secretary
4. Treasurer
5. Accountant
6. Six association members
President must be the founder of the association
15. Duties and Responsibilities of the General Assembly
The duties and responsibilities of the general assembly include:
- leading the association,
- determining the associations activities, electing and repealing the executive committee,
- evaluating and approving the activity plan and budget, as presented by the executive committee,
- evaluating and making decisions connected to members that are in the process of being expelled from the association for various reasons and on the part of the executive committee.
16. Duties and Responsibilities of the Executive Committee
The duties and responsibilities of the executive committee include:
- presenting the associations annual report to the general assembly
- managing the day-to-day activities of the association,
- approving the associations financial and administrative manuals
- controlling/checking whether the finances/accounts of the association are property handled or not,
- presenting for approval the annual operation plan and budget as well as information on the required amount of manpower for the office to the general assembly.
Note:
             The managers of all ten enterprises and the founder of the association are the members of executive committee




5
17. Duties and Responsibilities of the President
The duties and responsibilities of the president include:
- running/leading the associations day-to-day activities,
- When necessary, hiring and administering workers for the association,
- Along with the concerned executive committee members, opening a bank account in the name of the association and putting it into action,
- concluding contracts on behalf of the association, responding when being sued or suing as well as undertaking other necessary activities,
-representing the associations, making contact with other similar associations.
-participating on behalf of the association in different meeting in local as well as abroad
18. Duties and Responsibilities of the Vice President
The duties and responsibilities of the Vice President include:
- undertaking activities on behalf of the president when he is absent.
- undertaking other activities forwarded to him by the president
19. Duties and Responsibilities of the Secretary
The duties and responsibilities of the Secretary include:
- managing time as well as preparing and handling other necessary documents of the association
- handling regulations, evidences and books that are concerned with the association.
20. Duties and Responsibilities of the Treasurer
The duties and responsibilities of the Treasurer of the Association include:
- collecting and treasuring the associations income
- paying expenses as directed by the president
21. Duties and Responsibilities of the Accountant
The duties and responsibilities of the Accountant include:
- handling the associations income and expenses, in accordance to proper accounting formats and rules.
- verifying income and expenses of the association
- preparing and presenting monthly financial reports
22. Duties and Responsibilities of the Supervising Committee
- The supervising committee controls the overall activities and documents of the association.
23. Duration of Services
- The executive committee members service duration lasts for the term of two years. However, they can be re-elected and serve for a further two years, if an approved by the general assembly.
24. Improvement of the Regulation
- The general assembly has the authority to improve the regulation as it becomes necessary.


6
25. Dissolving the Association
A. The association could be dissolved, if so decided upon by the general assembly
B. The mode of the associations asset distribution would be on the basis of general assembly agreement.

26. Date of Regulation Enforcement
This regulation will come into effect, after being approved and legal permission granted on the part of all members of the association, starting as of ________ Date _________ Year.
No    Name of the enterprise    Zone    Town
    Name of legal representative    E-mail
Address    p
Phone number    Signature    Remark
1        Borana                       
2        Bale                       
3        West Arsi                       
4        EastHararge                       
5        Kelem Welega                       
6        East Welega                       
7        Jimma                       
8        North Showa                       
9        West Showa                   
10        Kamise Or Illu Ababora                   
We all the enterprise that our name are listed above are agreed to establish association with our full will and for our common benefit and also accepted and committed to keep the rule and regulation of the association and as we approved above by our signature .
Note;-All the enterprises are established with the rule and regulation of Oromia Regional state SME










natea abdo

Email;[email protected]
phone;0910322570