Business Plan
Business Plan
Business Plan
Executive summary
Perficient plastic recycling shop business will be run as partnership. The enterprise offers high
quality decorating apparatus of house or any other, materials for customers. The price is
affordable should not annoy or exploit customers So that customers are willing to pay. The
main job in this business is purchasing/collecting and processing plastic, preparing it to store
the product, monitoring and auditing sales of business and distribute to costumers. The main
objective of the business is that to recycling waste plastic material to useful thing by satisfying
customer wants and we become businessman. we will start the business by 1045000birr.from
this 75000birr collection of members family gift for startup and the 400,000 birr is loan from
OROMIA micro finance.
In the beginning year the business forecast 67000 profits. In the second year 28129.68birr 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 main location of our organization will be found in
Hawassa near to Omega automotive engineering. Because of high waste plastics are dropped
around that then after a time we will distribute our organization to the other region of Ethiopia.
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Developing of Business Plan
The names of our organization are “Perficient” plastic recycling shop. This organization has
its own brand symbol (trademark). And the form of ownership is partnership. Our organization
will be registered in different administration organ.
The main location of our organization will be found in Hawassa near to automotive engineering.
because of high waste plastics are dropped around that then after a time we will distribute our
organization to the other region of Ethiopia.
Then our organization will be supplying different types of material or applicable apparatus to
the people successfully. Some of the products will be manufacture are brush, plastic floor cover,
and other different decoration apparatus.
2.2. Objectives
General Objectives:
Our common objective is that to reusing squander plastic fabric to valuable thing by fulfilling
client needs and we ended up in trade.
Specific Objectives
The specific objectives of our business plan are as follow:
➢ Collecting data related to our product quality.
➢ Satisfying customer needs, by changing our production style according to the customer
opinion.
➢ Our product will sell in a moderate cost.
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Developing of Business Plan
➢ Knowing the current situation and widening our business to become successful for
future.
➢ To clean our country from waste deposit of plastics
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Developing of Business Plan
3.2. Marketing Plan/Analysis
A market analysis is a quantitative and qualitative assessment of amarket.it looks into the size
of the market both in volume and value, the various customer segments and buying patterns,
the competition, and the economic environment in terms of barriers to entry and regulation.
Competitive Edge:
When we build and install the factory in Hawassa
➢ There will be a compotator around our factory.
➢ Customers are available.
➢ We are profitable by producing quality product and adding different decoration with a
minimum cost in order to satisfy customer needs.
Marketing Objectives:
The objectives of the marketing analysis of our business plan are to show for as:
➢ Knowing our market
➢ The market is large enough to build a sustainable business Marketing Methods:
A) Product
➢ Specification: -Our product specification mainly measured with quantity. That is in
kilogram. According to our decision we have to be deciding in order to put the amount
of plastic material to consume for each product are described as follows;
✓ The amount of plastic material in molten form measured in kilogram is determined
related to the factory product.
✓ In our factory plastic ceramic consume 0.4 kg per unit of molten plastic material, and
similarly decorative flower holder consume 0.6kg per unit molten plastic material.
➢ Finally, there are other tangible products in our factory; such as, broom consume 3
highlands of water and a decorative material resorts required one highland for 3 flowers
and a steam and leaves required 5 highlands.
Competitor Analysis
Competition is the rivalry between companies selling similar products and services with the
goal of achieving revenue, profit, and market share growth. Market competition motivates
companies to increase sales volume by utilizing the four components of the marketing mix,
also referred to as the four P's. These P's stand for product, place, promotion and price our
direct competitors are the companies that works on waste plastic recycling for beatification and
home purpose that targeting the same audience, selling the same products and a similar
distribution model as ours.
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Developing of Business Plan
another company that offers the same products and services, much like direct competitors;
however, the end goals are different. These competitors are seeking to grow revenue with a
different strategy. For example, general contractors, other company that works on the
manufacturing of plastic products for different purpose.
3.3. Pricing
We will use a penetration pricing strategy to attract our primary target market. The method
for setting pricing is based on our capital flow and by considering customers interest but not
much considering lowest prices because lowest pricing is not good for most small business.
We will try to reduce prices of services and products to fit our competitors if it doesn’t have an
effect in our business flow of cash.
Location
Place: Hawassa: -since many peoples and industries are found in Hawassa, in their day-to-day
activity they use plastics and plastic products, so many accumulations of waste plastics are
available.as result we select Hawassa as the location for our company.
Location or site: around Omega automotive engineering at Hawassa highway
Promotion/advertisement: -
➢ Advertising once a week across the environment using car and sometimes in mass
media.
➢ Building and open furniture houses in different small towns, for maintenance and
distribution
➢ Announcing the functionality, easily maintainability, durability, performance and
aesthetic value of the machine
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Developing of Business Plan
4.2. Supplier and raw materials
In this company the raw materials are waste plastic products, and the suppliers are those
industries which use plastic products, societies who use plastics in their day-to-day activities
and peoples who are intended to clean the city etc.…
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Developing of Business Plan
human.
resource
management
3 Buying square Marketing members Six monthly
part and characteristic months
necessary
materials
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Developing of Business Plan
7 Deliberate to Finished on time members monthly Monthly advertise
the customers
5.2. Operation:
In our business factory the materials, equipment and other resources are operated in the proper
manner. By collecting data for material and other necessary things for our factory we can draw
and analysis the trend of the chart. By looking at the price movement of a security and using
this data we can predict its future condition. Lastly, find solution for how to perform the
operation in the factory.
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Developing of Business Plan
(B) Appointment of project A 3 weeks
implementation team
6.financial plan
6.1. Funding Requirement:
The fund requirement institution to borrow money of (400,000) from Oromia micro finance
and each member have75,000 who gets from family. The total is 1,150,000.
Table 3 Funding Requirement
Item Cost
(ET Birr)
Human resource 10000
Building 200000
Machine and equipment’s 300000
Raw material 175000
Necessary infrastructure 82000
Insurance 53000
Maintenance and repair 45000
Other 180000
Total 1045000
The remaining 105,000 birr is saved in the bank for emergencies like political crises and natural
phenomena.
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Developing of Business Plan
6.2. Profit And Loss:
The profit and loss will allow the manager to understand which lines of the product mix need
to be focused on and which should not. All companies will have loss leaders, which are
products or services which are not profitable, that company has to offer for the sake of offering
another product/service at a greater profit, or to attract new customers. However, the profit and
loss is one way of finding out which products/services are most profitable and which are loss
leaders. Each line within the product mix can be compared to its correlating expenses in order
to determine its overall profitability. This can only be done if the Income Statement is set up
correctly.
Revenue and profit in each year calculated as: -
Rev=sales*unit price
Net Profit = Rev-total annual cost
Table 4 Profit loss analysis
Year 1 2 3 4 5
Sales 3000 4000 6000 7000 8000
Unit price 100 150 120 100 100
(birr)
Revenue 300000 600000 720000 700000 800000
(birr)
Total annual 35000 68090 62000 96000 90000
cost (birr)
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Developing of Business Plan
To forecast the second year of total annual cost the value then
Total annual cost = f1 + (d-f1)
=233000 + 0.3(1220-233000)
=28129.68birr
Table 5 Forecasting of Total Annual Cost
Year Demand Forecasting total Profit(birr)
annual cost(birr)
Fixed Assets:
House rent (30000/month rent) 4000
Machinery (27,000) -
Less: accumulated depreciation (30,000 @ 10%=3000)
Total Fixed Assets 4000
Total Assets 307000
Current Liabilities:
Estimated income tax 8410
Total current Liabilities 8410
7.CONCLUSION
Waste plastic recycling is treated as a commercial commodity as product sales generate regular
cash income. Market-oriented recycled plastic production has many benefits for urban
community mainly as we explained in the analysis, the demand for good and cheapest recycled
plastic beautification products are highly increased and consumption rate of the products also
in increasing way in our country. Due to this it is appropriate to develop and encourage waste
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Developing of Business Plan
plastic recycling enterprises in our country. According to the feasibility study analysis the
number of employees in the enterprise and the enterprise will get benefited within the first
months and the debts or credits of the enterprise get paid within 5 years. Therefore, the company
extends its production capacity and looks for another opportunity or problem seeking.
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