Lake View Real Estate PLC

Lake View Real Estate Private Limited Company .

Primary Contact Person, Title and Telephone Number:

Ato Abraraw Enyew (Tel +251915014633)

Project Location :- Bahir Dar Air Port Road Infront Of Federal Defence Hospital.

Easting =1.37.332040M

Northiing = 11.595053.37 M

Elevation =1801.9 M

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Contents
I. EXECUTIVE SUMMARY ............................................................................................................................... 4
I.1 Company .................................................................................................................................................. 4
I.2 Vision, Mission and Values....................................................................................................................... 4
I.3 the Objectives .......................................................................................................................................... 5
1. Introduction .............................................................................................................................................. 6
1.1 Home types and other services .............................................................................................................. 7
1.2. Market Analysis ...................................................................................................................................... 7
1.4 Management ........................................................................................................................................... 9
1.4.1Job opportunities from Initial to completion of the Project ......................................................... 9
1.5 Financial Plan .......................................................................................................................................... 9
1.6 Sources & Use of funds ......................................................................................................................... 10
2.0 .Company Profile ................................................................................................................................... 10
2.1.Company Location and list of Owners and Owner Ship ....................................................................... 11
2.2 LEGAL ENTITY & OWNERSHIP ............................................................................................................... 13
2.3. Company History to Date ..................................................................................................................... 13
2.4 Facilities................................................................................................................................................. 14
3.0 PRODUCTS/SERVICES ............................................................................................................................ 14
3.1 Description ............................................................................................................................................ 14
3.2 Features & Benefits............................................................................................................................... 14
3.3 Competition .......................................................................................................................................... 15
3.4 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY ................................................................................ 15
3.5 Development......................................................................................................................................... 15
4.0 MARKET ANALYSIS ................................................................................................................................ 15
4.1 MARKET SIZE ......................................................................................................................................... 15
4.2 TARGET CUSTOMER .............................................................................................................................. 15
4.3 SWOT ANALYSIS .................................................................................................................................... 16
5.0 Strategy& Implementation ................................................................................................................... 17
5.1 Philosophy ............................................................................................................................................. 17
5.2 Internet Strategy ................................................................................................................................... 17

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5.3 Marketing Strategy ............................................................................................................................... 18

5.4 Sales Strategy ........................................................................................................................................ 18
5.5 Operations ............................................................................................................................................ 19
5.6 GOALS.................................................................................................................................................... 19
6.0 MANAGEMENT ORGANIZATIONAL STRUCTURE ................................................................................... 20
6.1 Organizational Structure ....................................................................................................................... 20
6.2 LEADERSHIP........................................................................................................................................... 20
7.0 FINANCIAL PLAN.................................................................................................................................... 21
7.1 REQUIREMENTS .................................................................................................................................... 21
7.2 USE OF FUNDS....................................................................................................................................... 21
7.3 INCOME STATEMENT PROJECTIONS ..................................................................................................... 21
7.4 CASH FLOW PROJECTIONS .................................................................................................................... 21
7.5 BALANCE SHEET .................................................................................................................................... 22
7.6 ASSUMPTIONS....................................................................................................................................... 22
8.Recommendations ................................................................................................................................... 22
9.Annexes.................................................................................................................................................... 23
9.1.Owners Identification Card and Land Owner Ship Certeficate ......................................................... 23
9.3.Map of the Area .................................................................................................................................... 24
Around AirPort Road 44 Hectar ................................................................................................................. 25
Land Use Map of the Site ............................................................................................................................ 26
Proposal Sample Site Lay out ...................................................................................................................... 27
Trade Licence .............................................................................................................................................. 28
Bank Statamenet......................................................................................................................................... 29

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I. EXECUTIVE SUMMARY

I.1 Company
Lake View Real Estate Private Limited Company called ‘LVRPLC’ here afterwill be a source of
low to High Quality Luxury Homes (we provide 40% of the plot Area for Apppartment
/Condominium ) in the Capital of Amhara Region Bahir Dar, Ethiopia. We are a startup Company
that developed a new approach on this regard. Our initial plan is to avail high Quality Luxury
Homes with appropriate cost and on the right Time based customer demand in Bahir Dar Town.
Our goal is to provide our customers with fast turnaround, exceptional quality, unparalleled
customer service, and competitive pricing.

I.2 Vision, Mission and Values

Vision

“To Minimize Moregaje/Housing Problem in Bahir Dar Town”

Mission

“To Minimize High House Rent expenses in Bahir Dar Town”

Values

• We value collaboration, accountability, respect and excellence.

• We believe in working as a team within all of our colleagues and in partnership with all
competitors.

• We accept responsibility for the performance of our Organization and the effective use of
our resources.

• We will treat each other with consideration and communicate with honesty and openness.

• We endeavor to be leaders in the performance of House selling.

• We promote and recognize in new share Holders

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I.3 the Objectives

The objectives for Lake View Real Estate Private Limited Company are:

1. To participated the Farmers (land owners) share to the company

2. To be viewed as a premium House selling/Construction PLC in Bahir Dar

3. To Maintain a very high gross profit margin.

4. To Create high job opertunity for Community specialy around real estate developing area

5. Maintain a modest, steadily growing net profit margin.

6. Expand to one location after third year of operation.

7.We are working with Bank,insurance and provide moregaje facility for our customers.

8 The Company use high tech construction technology and minimized envirometal Polution
specialy we are integrated and working with Amhara National Regnal State,Building Material
factory and provide schnell home with single or double panel wall.(available in Bahir

Dar it is a new advanced Technology).

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1. Introduction
In the era of Urbanization, Human development and un endless population growth, Real State
companies are realizing the value of an end-to-end, Housing Need and Problem to the overall
Population which leads to an urgent demand of PLC like this in Bahir Dar Town, from which the
majority can be served within a short period of timeby applying a systematic and a more integrated
approach. Concurrent engineering methods have helped to merge concept, development and
construction processes over the years, but the vision going forward is a for Low to High Quality
Luxury Homes. The systems-driven approach brings all aspects of House Design together in a
holistic fashion and makes it easy to trace requirements — whether customer, regulatory, legal, or
others — throughout the design and Construction process with constant validation.

Now days Real State Companies are among the leading share business in Ethiopia with significant
contribution to the economy, employment, value added and advance Hosing technology
development in Ethiopia and we will also emphasize its environmental suitability in the surround
and the Capital of Amhara Region.

The initial objective of LVRPLC is to be viewed as a premium House selling/Construction PLC

in Bahir Dar Town.Now a days Ethiopia promoted Real State investment to minimize Housing
Problems in Urban Residents Due to high rates of Town Expansion and Rural to Town migrations
Year to Year. Due to consistent and limited number of Houses in Bahir DarLVRPLC capacity is
expected to avail 56- 100 Homes within 3-5 years.

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1.1 Home types and other services

We design and Construct low to high luxury homes including low cost Apartama within 2 – 6
Months ( check below table) and participate in construction of other mega or mini projects in
Ethiopia. By utilizing different technologies, we will work in real-time with our customers to meet
their Housing needs, which will reduceHigh House cost and rent in the town. In turn, this will save
the customer time and money. We plan to position ourselves as a forward-thinking Company that
continually invests in new ideas and technologies – since there are competitors currently we are
expected to be the leader in this service. Because of our previous experience in House construction
and design services and efficient processes, we will be in a position to potentially compete on price
and quality. Additionally, our good performance of consultancy on construction service will gives
us a definitive advantage.

1.2. Market Analysis

The LVRPLC makes up a substantial portion of the Ethiopian GDP and generates sales of more
than 200 million Ethiopian Birr after 3 years. Real State PLCs drives the Ethiopian economy as
much as any other mega industry by now .Within that enormous, Real State PLC industry; we have
identified strong markets with very high growth potential – House demand. As new PLC we will
also respond to shifting consumer demands for new share Holders and we will customize and
develop new technologies, depending on the need for new Construction, designand Housing
Models.

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Lake View Real State Construction Schedule

Total
Total Total
Plot Our
Items Description Unit Plot No of Remark
Area/M2/ Land
Area/M2/ House
/Hectar
Highy Luxury G+3 200
1 50 300
House 15,000.00 200.00 House
300
2 Highy Class G+2 House 100 150
15,000.00 300.00 House
300
3 Midle Class G+2 House 100 100
10,000.00 300.00 House
Condominume /Apartama 800
4 100 800
B+G+6 80,000.00 800.00 House
1400
5 Low Cost Housing G+6 200 1200
240,000.00 1,400.00 House
6 Recreation Area and Field 2 4000
8,000.00
7 Play Ground For Youth 2 1200 44.00
2,400.00
8 Clinic 2 200
400.00
9 Primary School 2 800
1,600.00
10 Nursuray School 2 600
1,200.00
11 Conmmon Shop & Bank 3 1000
3,000.00
12 Slautor House 4 60
240.00
Total Unit with Infra
567
Structure 376,840.00 3,000.00

1.3 Strategy & Implementation

To achieve our business goals, We are provide moregaje facility for our customers and integrated
to bank insurance .we will construct low to high luxury homes including low cost Apartamaand
will implement highly efficient construction technology. We plan to promote Our Luxury Homes
and our proprietary Technology with an aggressive, targeted marketing campaign. This will
include a media campaign, print and online advertising and a targeted direct-mail campaign. In

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addition, we will focus heavily on establishing our presence within the industry at relevant trade
shows

1.4 Management
The strength of these Company owners’ experience, equity and assistance is LVRPLC’s
competitive edge as well as a significant asset.Eng.Gizaw and Abrarawhas been involved in
different design and construction services in the last 12 years. They have worked this way through
the different organization and have been the manager for the last ten years overseeing operations
of more than50 million annually.Eng.Gizaw received his BSc Degree from Arbaminch Universty
Technology Facality and Abraraw Enyew received his BA degree from Alpha University College.
Within the last 12 years the Company owners invested in the community, playing a significant
value as a fair, active member of the community. Lastly, LVRPLC will be able to leverage several
of the Customers for their business expertise. LVRPLCis positioning itself as the premier House
selling and constructionCompany’s serving the majority of the community in Amhara Region,
Ethiopia. LVRPLChaveforecasted a 100 % market share. The business will generate a very high
gross margin and a modest net margin after year three and comfortable margin after five year . By
five years the business will have developed a respectable yearly net profit of .7-12 million.

1.4.1Job opportunities from Initial to completion of the Project

S.r no Description Before After Remark

1 Skilled 600.00 10,000.0 and Till completion

above of the Project
2 Un skilled 1,000 - 1,500 50,000 – 10,000 Till completion
of the Project
Total

1.5 Financial Plan

Our Company will earn revenue from the sale of LVRPLC. The attached Income Statement
demonstrates that our gross profit margin will exceed 50%, and we will achieve break-even with
sales of 70,000,000.00 We expect to reach profitability by the middle of Year 3.

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1.6 Sources & Use of funds

LVRPLC requires 2,000,000 to 5,000,000 Eth. Birr to launch. At the present, we have raised
1,000,000 in venture capital funds. In addition, we will use 70% equity Bank loan for the remaining
Fund fulfillment. The start-up funds will be used to cover the facility, build-out costs, equipment,
software and initial operating costs including payroll, taxes, and utilities.

2.0 .Company Profile

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2.1.Company Location and list of Owners and Owner Ship

LVRPLC is located in Amhara Region, Bahir Dar Town Kebele 14 Airport Road Infront Of Federal
Defence Hospita and covers an Area of 44.00 hectare . Our Company builds low to high quality
luxury and Apartenet homes.

Table 1 list of Owners and their Respective shares

S.no Name of Members Nationality Address

Region Town Kebe Responsibili % of share Remark
le ty
1 አቶ አብራራው እንየው Ethiopian Amhara Bahir Dar 11 G/Mnager It depends on Share Ho

2 አቶ ግዛው ብርሀኑ Ethiopian Amhara Bahir Dar 11 Technical It depends on Share Ho

Mnager

3 አቶ ዳንኤል ወረታው Ethiopian Amhara Bahir Dar 14 Member It depends on s Share Ho

4 አቶ አዱኛ እሸት Ethiopian Amhara Bahir Dar 14 Member It depends on Share Ho
5 አቶ ፀጋየ ስንታየሁ Ethiopian Amhara Bahir Dar 14 Member It depends on Share Ho

6 ወ/ሮ ፋንታንሽ አድማሱ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

7 አቶ ካሴ ዋሴ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

8 አቶ ተመልከት ወርቁ Ethiopian Amhara Bahir Dar 16 Member It depends on Farmer

9 ወ/ሮ አንችስል አማረ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

10 አቶ ወርቁ ጠይም Ethiopian Amhara Bahir Dar 13 Member It depends on Farmer

11 አቶ አማረ ወርቁ Ethiopian Amhara Bahir Dar 16 Member It depends on Farmer

12 ወ/ሮ ውባልም አበረ Ethiopian Amhara Bahir Dar 14 Member It depends on sh Farmer

13 ወ/ሮ አለም ወርቁ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

14 አቶ ይበልጣል ጫኔ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

15 ወ/ሮ ሙሉ ጎጃም አበረ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

16 ወ/ሮ ያልም ወርቅ ጎሹ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

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17 አቶ ይበልጣል ታገነ Ethiopian Amhara Bahir Dar 14 Member It depends on Farmer

NB. Share % (Percent) Should based on the Company Memorandume.

Table 4.1 Lake View Real State land Owner Ship Information

የመሬት ይዞታ ጠቅላላ የቦታ መግለጫ

Farmer Total Total
Item Owner Ship Name Stand/1kada/M Remark
Land/Kada Area/M2/ /Hect/
2/
1 ወ/ሮ ፋንታንሽ አድማሱ 8.00 2,500.00 20,000.00
2.00
2 አቶ ካሴ ዋሴ 36.00 2,500.00 90,000.00
9.00
3 አቶ ተመልከት ወርቁ 16.00 2,500.00 40,000.00
4.00
4 ወ/ሮ አንችስል አማረ 9.00 2,500.00 22,500.00
2.25
5 አቶ ወርቁ ጠይም 21.00 2,500.00 52,500.00
5.25
6 አቶ አማረ ወርቁ 12.00 2,500.00 30,000.00
3.00
7 ወ/ሮ ውባልም አበረ 14.00 2,500.00 35,000.00
3.50
8 ወ/ሮ አለም ወርቁ 12.00 2,500.00 30,000.00
3.00
9 አቶ ይበልጣል ጫኔ 12.50 2,500.00 31,250.00
3.13
10 ወ/ሮ ሙሉ ጎጃም አበረ 14.00 2,500.00 35,000.00
3.50
11 ወ/ሮ ያልም ወርቅ ጎሹ 9.00 2,500.00 22,500.00
2.25
12 አቶ ይበልጣል ታገነ 12.50 2,500.00 31,250.00
3.13
ጠ ድምር 176.00 440,000.00
44.00

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Project Location :- Bahir Dar Air Port Road Infront Of Federal Defence Hospital.

Easting = 37.332040M

Northiing = 11.595053.37 M

Elevation =1801.9 M

2.2 LEGAL ENTITY & OWNERSHIP

LVRPLC is a private Limited Company that was formally organized in Amhara Region Bahir Dar
Town. The Company’s principal owners are as listed in the above table (1), who holds solely the
ownership of the Company.

2.3. Company History to Date

Our Company is a new business that will reduce Housing challenges and High rate House rents in
the town by availing low up to high luxury homes including low cost Apartama , utilizing the
latest Construction Technologies in Advance and high tech machinery and innovative operations
processes. The Company s’ founder and owner has a combined 14 years of experience in
Construction and design His experience includes participating in mini and mega construction
projects, consultancy and project management. After recognizing the need for and value of
creating a more efficient customer experience to secure and retain business, we decided to establish
LVRPLC.

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2.4 Facilities

Our Company is preparing to sell shares in Amhara Region Bahir Dar Town and provide morgaje
facility for our customer . We are presently operating out of temporary administrative offices at
the Bahir Dar Center. We are dealing with Bahir Dar Town Municipality to proceed for plan and
basement construction. We have owned a 50 Hectare facility to accommodate product
development and engineering, shop, quality assurance area, inventory storage, administrative
offices and basement construction. As the business grows, we intend to add more capabilities.

3.0 PRODUCTS/SERVICES

3.1 Description
LVRPLC will make low up to high luxury homes including low cost Apartama equipped with
green, clean and safe environment at the capital of Amhara Regional State Bahir Dar Town.

There will be three main phases to proceed with the project. First, engineers and architects will
develop a design. LVRPLC is able to complete a design from start to finish for a customer. If need
be, LVRPLC will work with the customer through the design. We then inspect and test the quality
of the construction has been made as per the plan and based on specific design/ specifications.

3.2 Features & Benefits

Customer needwill be the key to distinguishing and drawing attention to our Company with prior
intention for Amhara Region Customers. Once we have a particular industry or customer’s
attention, we will sell them on our fast turnaround, exceptional quality, unparalleled customer
service and competitive pricing.

Obviously, speed, quality, service and price will be our qualities list in their mission statement.
However, LVRPLC will – from the beginning – invest in top quality as well as implement
innovative operations policies. These steps will ensure our ability to deliver beyond normal
industry standard and surpass our customers’ expectations saving them time and money.

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3.3 Competition
Currently we have 15-20 main competitor companies that provide similar types of House selling
services in Bahir Dar Town which implies no far too many competitors to list specifically. Hence
we are the best and the appropriate Company in this respect.

3.4 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY

By relying /Applying High technology and an activity-based costing system, rather than a time-
based system, we will be able to maintain competitive prices and sustain high profitability. Our
technology and systematic efficiencies will allow us to have advantages in cost, speed and design
capability. Ultimately, these advantages will quickly come to define LVRPLC as Leader Company
in the town.

3.5 Development
As our Company grows, we plan to expand our facility and create an expanded construction plant.
At that point, we will be able to control all operations in-house from initial design to final finishing
works. In addition, we will stay atop technology trends and upgrade equipment and processes as
needed and can be afforded. We will also continue to research and pursue shares of existing
markets such as schnell home with single or double panel wall.(available in Bahir Dar

it is a new advanced Technology).

4.0 MARKET ANALYSIS

4.1 MARKET SIZE

Since there are only few Companies on this service, LVRPLCwill utilize a targeted customer
approach to pursue specific, definable, market segments and to satisfy customer needs.

4.2 TARGET CUSTOMER

LVRPLC will target all types of business owners in Ethiopia. Only few residents of Bahir Dar and
nearby Kebeles Own low up to high luxury homes including low cost Apartama , Above all Bahir
Dar is always under enormous number of migrants Pressure and growth corridor of Amhara

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Region which aggravates high needs of Shelter in the town. After extensive assessment, we
decided to initially pursue market segments in the Real State Company. This is very distinct
markets with very wide needs.

4.3 SWOT ANALYSIS

Strengths

Prior experience in related works

Potential for nationwide customer base

Understanding of emerging technologies

Understanding of target markets

Competitive product pricing

Exceptional quality and customer service

Implementation of cost saving processes

Weaknesses

Only smallCompany history

Small initial customer base

New staff

Lack of leverage with new relationships

Opportunities

New Approach& processes

Bringing new technology into the industry

Short turn around tome

Hiring new talent

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Threats

Technologies developed by competitors

Challenges in building a talented staff

Retaining key staff members

Market demand fluctuations

5.0 Strategy& Implementation

5.1 Philosophy
LVRPLC business philosophy is to make the needs of our customers our main priority. It is our
mission to provide our customers with fast turnaround, exceptional quality, unparalleled customer
service and competitive pricing by applying this philosophy we will position LVRPLCas a
superbly innovative and a future Real State Leader in Bahir Dar.

To achieve this position, we will implement our company’s plan to create a stat of the art and
invest in the most conducive environment by thinking the bright future. We will implement the
most comprehensive strategy and set the highest standards of operational systems, qualityservice
and loyalty for our novel customers.

5.2 Internet Strategy

Our plan is to position LVRPLC as a technology-driven innovative company withinsector of Real
State Markets. To do this, we are putting forth a great amount of time and resources into developing
a premiere Web site. The web site will be LVRPLC.com.

In addition to describing our processes and capabilities, we will feature numerous success stories
and images of Homes and Designs we have produced. Our site will also include a simple online
form to complete for custom quotes as well as a generic form to submit questions and comments.
Our vision is to create a Web site that will become an integral part of our marketing, sales and
daily operation.

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5.3 Marketing Strategy

LVRPLC recognizes the critical importance of marketing. We will require a properly designed
and executed marketing plan to ensure market penetration and business success With facilitate for
our customer bank & insurance morgaje, Until we hire an in house sales and marketing team, we
will work with a marketing and public relations firm. Once a sales and marketing staff are in place,
we will reassess the need for an outside firm.

In addition to conveying to our potential customers the fast turnaround, exceptional quality,
unparalleled customer service and competitive pricing offered by LVRPLC we will also position
our company as future minded and a leader in the integration of innovative technology into the
marketing strategy and process.

Our marketing plan will include an initial publicity campaign that introduces our Company.
Further, we will launch a comprehensive advertising campaign in Real State trade publications
and related Web sites. The publicity campaign will be closely followed by a direct mail campaign
to targeted customers.

The other main component of our marketing plan will be to attend trade shows which will require
both construction and maintenance, marketing materials such as brochures, and promotional items
such as pens with our logo.

To increase local awareness of our Company and to foster a positive public perception, we will
participate in and sponsor local charity events such as Walk for the Cure and March of Cancer
patients and youth sports teams. We will also reach out to local high schools and colleges to offer
internships and promote careers in construction.

5.4 Sales Strategy

LVRPLC will build a sales team focused on securing new business in the short and long term. The
sales team will be motivated by commissions and performance based bonuses. Under the direction
of executive management, we will employ an outside sales staff as well as an inside sales staff,
which will be cross trained to handle general customer service calls. The outside sales staff will
focus primarily on trade show attendance, comprehensive follow up, relationship building, closing
deals, and securing referrals.

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5.5 Operations
Our facility’s space will be divided in proportion to our needs and will include product
development and engineering materials Unit, quality control and testing area, inventory storage
and administrative offices. Each area will be staffed with trained employees and wherever possible
all staffs will be cross-trained by senior proffessionals.Our administrative offices will include
space for executive, marketing and sales, accounting, information technology, security,
maintenance, and human resource departments.

Operationally, our strengths lie in our knowledge and expertise within the Real State Company.
We know what fixed assets we require and what regulations we must adhere to. However, while
we cannot know for certain the quality of our managerial team at this point, we expect to hire and
implement a top notch team. As previously mentioned we have several promising prospects and
will, of course, strive to recruit top talent.

Finally, regarding our company operation we will always act accordingly by considering the real
situation of company needs.

5.6 GOALS
The following is a list of business goals and milestones we wish to accomplish within the next
three years.

Secure necessary funds.

Start building/construction.

Purchase machinery, equipment and supplies.

Hire skilled employees to complete our team.

Set up shares and open for sales.

Successfully penetrate targeted markets.

Secure contracts to achieve projected sales goals.

Become a profitable company.

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Establish a solid reputation as a real state company leader.

Our first major milestones will be securing funds and setting up our business. This is our primary
focus right now. In three years, we hope to have established our company in Amhara Region and
throughout the Country.

6.0 MANAGEMENT ORGANIZATIONAL STRUCTURE

6.1 Organizational Structure

LVRPLC understands the importance of a loyal and enthusiastic team to reduce turnover and
increase productivity. Our company’s management philosophy will encourage responsibility and
mutual respect. While we will present a strong decisive management team, we will also foster an
atmosphere of genuine employee appreciation and open communication.

6.2 LEADERSHIP
Our company will be managed and run by our executive staff including Chief Executive Officer
Abraraw Enyew and Eng.Gizaw Birhanu,Technical Mnager o the Company , as well as our Board
of Directors working with (ANRS,Bezawit Schenel Home Building material factory ). Our
management staff of directors and supervisors will oversee daily operations. However, as a small
facility starting out, the CEO and The Finance and Administration Head will be responsible for
the majority of purchasing, hiring, training, quality control, and additional day-to-day duties.

Additional key leaders will include directors of finance, marketing and sales, human resources,
information technology and operations. While these positions remain unfilled at this time, we do
have several extremely qualified candidates interested in joining with us in this new venture.

As we start our Real State Company business, we will implement a plan to hire management and
production staff first and fill in with mid-level management and administrative staff as our budget
and needs change which enables us smooth implementation of our company goals.

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7.0 FINANCIAL PLAN

7.1 REQUIREMENTS

LVRPLC requires 100,000,000 -200,000,000 to launch and operate of which is 60 million

deposited as an initial costing and Administrative costs. We are currently seeking funding from
outside investors and business loans. We are also looking into additional options including supplier
financing, deferred rent, subleasing space, partnerships, vending and client advance payment.

7.2 USE OF FUNDS

The start-up funds will be used to cover operating costs including payroll, taxes, and utilities. Start-
up funds will also be used to purchase capital expenditures such as leasehold improvements,
software and machinery, which will produce future benefits for the company. Approximately forty
percent will be spent on assets, while the other sixty percent will be spent on operations until we
realize profitability.

7.3 INCOME STATEMENT PROJECTIONS

The accompanying income statement demonstrates our company’s profitability. Our income
shows a gross profit margin of fifty percent. Our monthly operating expenses average 500,000
Ethiopian Birr. Project annual net income is expected to an average of 6,000,000 Ethiopian Birr
hence, projected net income will be about 12,000,000.00ETB averagesper month in our third year.
After completing a comprehensive break-even analysis, we will achieve our break-even point by
the middle of year Three.

7.4 CASH FLOW PROJECTIONS

The nature of our business requires that our company collect payment before and after the
Construction is complete. So we have included the accompanying cash flow statement, which
projects our monthly flow of cash. While we expect to reach break-even by our two Years it will
take nearly three years to become cash flow positive.

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7.5 BALANCE SHEET

Our balance sheet will depend greatly on our sources of capital. We expect to raise approximately
70 million through loans and 130 million through equity capital. Our assets will be comprised of
cash, leasehold improvements, equipment, software and other tangible assets.

7.6 ASSUMPTIONS
Our projections are based on the assumption that the Real State Company, particularly the House
Construction and sales will continue to follow present trends. Company regulation and government
legislation is always poised to interfere with business projections, but there are no indications at
this time to expect any negative influence to our projections. Additionally, we are not relying on
new regulations or the passage of new legislation to enable our company to reach our projected
numbers.

8.Recommendations
Based on our continuous assessement of Real state Bussiness we recommend it is a novel business
process that shall be advocated in parts of the country especially for Gowth corridor towns like
Bahir Dar

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9.Annexes

9.1.Owners Identification Card and Land Owner Ship Certeficate

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9.3.Map of the Area

Along Bahir Dar Air Report Infront Of Federal Defence Hospital 44 hectar

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Around AirPort Road 44 Hectar

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Land Use Map of the Site

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Proposal Sample Site Lay out

44

44 Hectar

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Trade Licence

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Bank Statamenet

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