Feyisa Juice

production plc.

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Quality is our difference!!!

Name and address of the business

Business name: Feyisa Fruit juice production Plc.

Address: Batu town

P.O.Box:3456

Telephone no . 0927989212

Email:feyisafruit63@gmail.com

Owners
1.Feyisa Rebuma
2.Medakso Kabeto
3.Nadi Balina
4.Aman Abe

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TABLE OF CONTENTS

1. EXCUTIVE SUMMARY..............................................................................................................................4
1.1 KEY SUCCESS....................................................................................................................................4
1.2 NAME AND ADDRESS OF THE BUSINESS................................................................................................5
2. NATURE OF THE BUSINESS..................................................................................................................5
2.1.THE BUSINESS OVERVIEW.................................................................................................................5
2.2.COMPANY VISION STATEMENT.......................................................................................................5
2.3. COMPANY MISSION STATEMENT...................................................................................................6
2.4 Objectives of the company................................................................................................................6
2.4.1 Short Term Objectives....................................................................................................................6
2.4.2 Long Term Objectives.....................................................................................................................6
2.5 name, Responsibility and qualification of the owner........................................................................7
3. FUNDING REQUIREMENT (FINANCIAL NEED)........................................................................................7
4. THE PRODUCT OR SERVICE....................................................................................................................7
5. INDUSTURY ANALYSES.............................................................................................................................7
5.1 Description of Market Plan Place.........................................................................................................7
5.2 Market Segmentation............................................................................................................................8
5.3 INDUSTRIAL Forecast............................................................................................................................8
5.4 CUSTOMER ANALYSES...................................................................................................................8
5.5 ANALYSES OF COMPETITORS.................................................................................................................9
6. MARKETING PLAN.................................................................................................................................10
6.1 Demand and Supply Analysis...............................................................................................................10
6.2 Distribution Strategy...........................................................................................................................10
6.3 Promotion Strategy.............................................................................................................................10
7. ORGANIZATIONAL PLAN........................................................................................................................10

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7.1 Legal Form of Ownership.....................................................................................................................10
8. START-UP CAPITAL................................................................................................................................11
8.1 Sources of Start-up Capital..................................................................................................................12
8.2.1 Salary Expense..................................................................................................................................12
8.3 Operating Balance sheet.....................................................................................................................13
9. ASSESMENT OF RISKS............................................................................................................................13
10.Exit strategy.........................................................................................................................................14
11. Appendix.............................................................................................................................................14
11.1 Owner ship agreement......................................................................................................................14

1. EXCUTIVE SUMMARY

Feyisa Fruit juice processing enterprise business will be run as partnership. The enterprise offer
high quality juice for customers. Juice will be available for sale at wholesalers and retailers. The
price is affordable should not annoy or exploit customers So that customers are willing to pay.

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Juice providing enterprises will provide its product at market price by identifying and listing
each type of fruit juice with their fair prices.The main job in this business is purchasing and
processing quality juice, preparing warehouse to store the product, monitoring and auditing
sales of business. The main objective of the business is to provide quality of juice in order to get
the

expected profit and to satisfy the customers, have a claim to create job opportunity, providing
complementary and with fruit juice and plans to expand the business in different area and also to
expand the initial business in size.In the beginning year the business forecast some profit. In the
second year and third year we expect that there will be increment of profit due to further
increases in the number of customers and get acceptance. The overall and general objectives of
the business are mainly to achieve and exceed sales forecasts to enable the business to be
operating at capacity, so that the business extended the types of fruit juice that enables the
business to meet the customers need.

1.1 KEY SUCCESS

1. It uses various types of promotional, or inducement mechanism to attract other customers

2. Continuous monitoring of our service and expense.

3. It is by society for society! Provide affordable cost with high quality.

4. by reducing expenditure cost of transportation for the customers.

5. Satisfying customer interests by providing quality service

6. The presence of good market price due to the weakness of competitor in the area.

7. There are many customers, because there is no other provider that gives this service.

8. It gives service for long hour.

1.2 NAME AND ADDRESS OF THE BUSINESS

The name of the enterprise is Feyisa fruit juice processing. The reason that we assigned this
name to the business is to show the concern the name of the owner of the fruit and juice
processing company. products also marketing all over our country and even for exporting
purposes of all over the world. Fruit juice processing is located in Batu town. This location is a
great opportunity to get different kinds of customer from Batu town society, because Batu is a
well known city in Ethiopia by different aspects like, cultures, history, and cultural heritages.etc
this opportunity is to attract different domestic and foreigner tourists and this creates advantage
for the business to attract customers.

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2.NATURE OF THE BUSINESS
As the name of the business center indicates the initial focuses on providing different types of
high quality of different fruit juice to the people who come to this Feyisa fruit juice processing.

Feyisa fruit juice processing, providing enterprise is established to overcome the absence of such
type of fruit juice center in this area. This business center provides different juice for Batu town
society . It serves as entertainment area for community especially for Batu Town Society and it
also contribute for the development of Batu town. Basically this business is believed to reduce
unemployment by creating job opportunity for many people.

2.1.THE BUSINESS OVERVIEW

The Feyisa fruit juice processing enterprises has special roles for its customers these are serve
the customers of Feyisa fruit juice processing by providing quality fruit juice. Come up with
new service which is not available previously.

2.2.COMPANY VISION STATEMENT

To solve the shortage of fruit juice service as well as to promote our business internationally by
providing a good quality of fruit juice.

2.3. COMPANY MISSION STATEMENT

1. Providing qualitative living style to its workers.

2. Supplying high quality fruit juice which is good for healthy, vitamins and strength suitable for
bodies.

3. Using existing resources, and providing the society qualitative service with affordable price.

4. Adopting to the dynamic environment throughout the operation.

5. Providing entertainment service for customers who are in different age level.

2.4 Objectives of the company

2.4.1 Short Term Objectives

1. To provide work for all members

2. To create job opportunity for local people

3. To raise the life standard of the members by paying them a good salary

4. To increase consumption of fruit juice by giving awareness

5. Promoting our business

6. Increasing quality of juice regularly

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7. Increasing profit

2.4.2 Long Term Objectives

1. To export juice to foreign country

2. To increase the number of customers in the local as well as International

3. To buy modernized fruit juice processing machine

4. To expand our business to other places

5. To increase the number of employee

2.5 name, Responsibility and qualification of the owner

Responsibility NameQualifications

1. General Manager Feyisa Rebuma

2. Gardne certificate Medekso
3. Food Technologist BA Degree
4. Food Specialists BA Degree
5. Juice Processor PhD Degree
6. Finance Manager MA Degree

3. FUNDING REQUIREMENT (FINANCIAL NEED)

Hachalu fruit juice processing provides enterprise planned to construct and

establish a company with capital of 250,000 birr. The business requires means of
acquiring this initial capital by borrowing from financial institution like: banks,
personal capital, and micro finance institution.

4. THE PRODUCT OR SERVICE

The owners of Feyisa fruit juice processing, spends knowledge, money, time, resources, and
experience to prepare business plan. For this reason the owner have to have the patent right in
order to protect the business plan which is the result of all share holder effort for this reason
should not be transferred or copied to another individual or company. If anyone refuse to accept
this, the owners have right to accuse individual or the company to bring them in front of the law.
“All Rights are reserved”.

5. INDUSTURY ANALYSES

5.1 Description of Market Plan Place

The fruit juice business enterprise provides fruit from Batu and local market. This product is sold
to customer around the Batu town, and to other places. This product also sold to small enterprise

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found around its environment. The product of our business is fruit juice product. So, any
individual who has the potential can undertake the activities. The brand of the business is
designed to be fruit juice processing providing enterprise; it is named so because its name and
the service it gives are much more related and attractive. Since it is natural product the people are
willing to use the service. The location of the business is Oromia regional state.

The location is preferred for the following reasons

 There is no such business enterprise around this area.

 There are many customers for the service.
 Different types of raw materials are available
 Weather condition is comfortable.
 The transportation cost is less.

In order to accomplish the service effectively and efficiently our business hires workers based on
the following criteria.

 Experience
 Health
 Conduct
 Educational level
 Age
 Ability

5.2 Market Segmentation

Actually the business enterprise is not limited to local market or internal market rather than
external market. So our fruit juice processing is comfortable to export to other countries. They
are profit oriented, gradually involves in the production of different fruit juice.

5.3 INDUSTRIAL Forecast

There is no doubt that the people need to recreate themselves. Because recreation is basic human
need. Feyisa fruit juice processing is a place to recreate peoples, so this type of business is going
to expand in the coming year at increasing rate.

For this reason our business paves the way for those who want job opportunity for the society
surrounding Batu town. For those who came from another place it is serving as entertainment
area.

5.4 CUSTOMER ANALYSES

Our target customers are

 The Batu town society

 Batu town and Other local market
 Batu and surrounding community

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Most of our customers need is good quality and sufficient quantity of fresh fruit juice.

5.5 ANALYSES OF COMPETITORS

Fruit juice processing business is well known and has good profit in other place. But in our area
it is not recognized this much. Even if there is no known fruit juice processing in this area, there
are some competitors’ who competes with us.

Some of our direct competitor’s area

1. Batu super market and retailers

Our indirect competitors are

Restaurant service in Batu town,

Expansion of recreational lounge

The strength of our competitors is that they have high initial capital and also have enough man
power. In addition they have enough space for producing large number of fruit juice products.

Their weakness

 They provide poor quality

 Their service of time is limited
 They do not respect their customers

5.6Competitive Advantage

The competitive advantages of our business are listed in the following manner

 We provide quality fruit juice for our customers better than our competitors
 Our business entertain customers who are in different age level
 It address customers need with lower price
 Proximity to suppliers
 Initiated workers

6. MARKETING PLAN

6.1 Demand and Supply Analysis

Most of the time demand and supply do not balance each other. To balance Supply with
demand we must do a continuous assessment on the number of our customer. We must
identify the primary need of our customers. We have to measure the daily, weekly, monthly
and yearly consumptions of the customer and compare with our products. By carrying out
this process we can balance demand and supply.

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6.2 Distribution Strategy
The distribution of the Feyisa fruit juice processing to consumers can be distributed in different
ways. Like:Whole sales,End users,Retail services and direct delivery to consumer’s house.

6.3Promotion Strategy
Our promotion strategies are applied using the following methods:-

 News paper Magazines

 Business card
 Notice
 Sponsorship for short radio programs

7. ORGANIZATIONAL PLAN

7.1 Legal Form of Ownership

Fruit juice processing providing business enterprises are a type of business in the form of
partnership. The reasons for the selection of this form of business are:-

 Profit gained in the first time it established.

 Simplicity to establish the firm.
 Accessibility of raw materials.

The overall operation or function of the business would be governed or administered by the
owner. The owner can be manager, and sometimes there may be needed to hire the manager from
the outside people that can fulfill the following criteria:

 Have the knowledge of entrepreneurship.

 Sociability.
 Ability to manage others.
 Risk taker.
 Experienced.

8. START-UP CAPITAL
The supplementary financing is required to being work on site preparation, equipment purchases,
and to cover expense in the first year of operations.

N o Item of name Quantity Unit price Total cost

1 Mango fruit 5,000kg 1 0 5 0 , 0 0 0
2 Papaya fruit 5,000kg 1 5 7 5 , 0 0 0
3 Avocado fruit 4,000kg 1 0 4 0 , 0 0 0
4 Fruit pulpier 3 1 , 2 0 0 3 , 6 0 0
5 E m p l o y e e s 1 0 4 5 , 6 0 0

6 Processing equipment 1 5 , 0 0 0 5 , 0 0 0

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 7 Handling materials 1 0 5 0 5 0 0
8 Miscellaneous cost - 3 , 0 0 0 3 , 0 0 0
Total 222,700

8.1 Sources of Start-up Capital

Additional financing has already been secured in the form of:-

 The business plan is prepared to obtain funds amounting 80,000 birr.

 Birr 22,700 from personal capital and
 Birr 120,000 from closed relatives, government, and NGOs.

9.2 Pro-Form Income Statement.

The sale of revenue of fruit juice is expected to be calculated daily the price of each type of juice
we take, the approximation of the sales of monthly on average to be 19,000 birr. Hence there are
12 months in business year total annual revenue is calculated as follows

Total revenue= 19,000*12=228,000 birr

8.2.1 Salary Expense

We have ten employees out of them, four permanent workers and the remaining six are
temporary workers.
Each of the four permanent workers out of the ten earns 500birr and remaining six workers earn
300 birr per month:

Total salary for workers= (500*4*12) + (300*6*12) =45,600birr

This is a salary for these permanent workers per a year plus a salary for the remaining temporary
workers person per a year

Total salary expense= 45,600birr

8.3 Operating Balance sheet

A s s e t L i a b i l i t y
Cash--------------------------------345,392 Account payable------------------45,600
Fixed asset-------------------------96400 al liability and capital ---------222,700
Miscellaneous Expense----------708
Total asset------------------------222,700

Pro-forma Balance Sheet at the end of 1st year

A s s e t L i a b i l i t y

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 Cash --------------------------------345,392 Account payable------------------45,600
Fixed asset---------------------------96,400 Note payable----------------------190,000
Depreciation-----------------------(2000) Interest payable---------------------19,000
Operating Expense-------------------67,308 Total liability-----------------------254,600
----511,100 Capital------------------------------256,500
Total liability and capital---------511,100

Pro-forma Balance sheet as the End of 2nd year

A s s e t L i a b i l i t y
Cash -------------------------------2,678,084 Account payable------------------45,600
Fixed asset--------------------------96,400 Note payable----------------------190,000
Depreciation-----------------------(5000) Interest payable---------------------19,000
Operating Expense-----------------67,308 Capital-----------------------------2,519,884
Total asset------------------------2,774,484 Total liability and capital ------2,774,484

9. ASSESMENT OF RISKS

The predetermined or expected risks are:-

 Spoilage of juice.
 Expiration of fruit juice and contamination.
 Loss of income from spoiled and expired item.
 Loss of customers.
 Natural hazardous.
 Scarcity of raw fruit from farm.
 Damage of raw materials from car accident.
 Fluctuation of market price (devaluation, inflation, deflate)

10.Exit strategy
 The company exit from the business must be required the following
points;-
 First payment of tax and liability
 Collect account receivable if any
 Distribution of income to the owners
 Do not exit from the business if incur los after exit of the business

11. Appendix
The total area we provide for fruit juice processing plant is 15x20 (300 square meters).The area
is divided in to small partitions for each different fruit juice.

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The total production area of our business is 300 square meters including the area of storage
areas.

11.1 Owner ship agreement

 The owner agrees to profit distribution, payment of liability by their own
contribution capital.

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