Business plan

BUSINESS PLAN

Group Members ID NO.

1 Belay Kidana

2 Gizew Kebede

3 Tabech Abrham

4 Ergo Gutema

5 Birane Debalu

SUBMITTED TO: ________

1
Business plan

SUBMISSION DATE: January, 2024

EXECUTIVE SUMMARY
EthioPhotos was founded in January 2024 by veteran photographer Abraham Niguse. The
company operates a professional photography studio located in Addis Ababa, Ethiopia
specializing in portraits, events and commercial work.

EthioPhotos aims to become the leading affordable photography brand in Addis Ababa by
capturing life's meaningful moments at competitive prices. The company's mission is to preserve
memories for clients through visually stunning images and personalized service.

Abraham has over 10 years of experience and established a strong reputation through freelance
work. This expertise, combined with strategic market research, has identified an opportunity to
offer premium quality photography at more accessible rates.

EthioPhotos opened its doors in February 2024 in a 100 sqm studio located in the bustling Bole
neighborhood of Addis Ababa. The facility features modern studio spaces, editing suites and
equipment. A lean team of three handles operations under Abraham's leadership.

Packaged portrait and event services start from 500 birr, representing a 20-30% discount versus
competitors. Clients appreciate the competence and comfort of sessions. Early response affirms
the value proposition.

Financially, projections estimate 250,000 birr in initial annual revenue capturing 20% market
share. With costs of 124,000 birr, net profit for year one is forecast at 126,000 birr, achieving
profitability within six months.

An investment of 100,000 birr will fund studio buildout and launch operations until cash flow
turns positive. In exchange, investors gain a 20% stake offering the potential for returns of 2-3x
over five years.

2
Business plan

With proper execution of proven marketing strategies and quality service excellence,
EthioPhotos aims to establish itself as the premier affordable photography brand in Addis Ababa
within three years. Early results demonstrate clear potential to realize this growing market
opportunity.
2. Company Description

Mission Statement
The mission of EthioPhotos is to establish ourselves as the premier affordable photography
studio in Addis Ababa by delivering exceptional quality photography services and customer
experiences. We aim to preserve life's meaningful moments for clients through visually stunning
photographs and become the most trusted name in photography.

Legal Structure and Ownership

EthioPhotos will be registered as a sole proprietorship owned solely by Abraham Niguse.
Abraham will manage daily operations and make strategic decisions while maintaining full
control over the business's resources, risks and profits.

Background of the Founder

Abraham holds a Bachelor's degree in Communications from Addis Ababa University (2014).
After graduating, he gained years of experience as a freelance photographer for magazines, PR
firms and individuals. In 2022, Abraham completed a 6-month paid internship at Simply Africa,
a leading studio in Nairobi, Kenya. Here he learned studio management, business development,
accounting and operations best practices. Abraham is passionate about photography’s power to
capture memories and tell visual stories.

Location
EthioPhotos studio will occupy a 100sqm unit at 123 Bole Medhanialem Street in Addis Ababa.
This central location in the heart of the busy Bole neighborhood is easily accessible via public
transportation. Nearby amenities like cafes and retailers provide ample lunch options for
photography clients. Rent is reasonable for the high foot traffic area.

3
Business plan

Renovations & Facility

In January 2024, Abraham will refurbish the studio space. A reception area, two photography
studios with backdrops, a digital editing suite and small staff room will be constructed. Clean
modern design with mood lighting aims to create a calm, welcoming environment. High-speed
internet, latest Mac computers and pro-grade cameras will power operations.

Studio Policy & Etiquette

Punctuality, personal service and discretion are core values at EthioPhotos. Staff maintain strict
client confidentiality. No photography is shared without permission. Children feel at ease
through engaging activities. Positive energy and comfort is our goal for all sittings. Complaints
receive immediate attention for solutions.

3. Products and Services

Portrait Photography
EthioPhotos provides quality portraiture celebrating life's pivotal moments through beautifully
crafted imagery.

Family Portraits
45-minute indoor sitting, 10 high-res images, optional prints from 500 birr. Outdoor locations
incur 150 birr fee. Birthday/occasion packages add props, cake/decor from 750 birr.

Couples Photography
60-minute studio or outdoor session, edited engagement or wedding album cover images from
750 birr. Engagement sessions at remote locations start from 1250 birr.

Senior/Graduation Portraits
Hour-long outdoor shoots, 15 edited social media/resume images, basic website image gallery
from 850 birr. Luxury packages add 8x10 prints, coffee table books from 1500 birr.

Children's Portraits

4
Business plan

Indoor or outdoor photographer-led sessions keep kids smiling, 8 images from 450 birr. Special
packages add birthday party photography from 750 birr.

Specialty/Boudoir Photography
Intimate at-home sessions capture natural beauty through careful lighting, storytelling from 1100
birr. Unique sessions incorporate artistic concepts, props.

Event Photography
EthioPhotos covers life's precious moments through professional photography services.

Wedding Photography Packages

Full-day photography and editing from 5000 birr. Half day packages start from 3500 birr.
Engagement sessions from 1500 birr.

Birthday Party Photography

4 hours of event coverage, 50 images edited/retouched from 2500 birr. Additional hours from
500 birr.

Corporate Event Photography

Full day coverage of conferences, exhibitions from 4000 birr. Half day packages begin 2500 birr.
Onsite editing/proofs included.

Benefits and Competitive Advantage

All sessions include carefully edited high-resolution digital images. Affordable prices 20-30%
below competitors offer great value. Personalized service tailored to every client builds long-
term loyalty in the growing market.
4. Market Analysis

Market Size

5
Business plan

Ethiopia's photography services industry including equipment, studios and labs is valued at over
250 million birr annually and growing 5-7% year-on-year. Portrait/event photography subsector
in Addis Ababa alone generates 80 million birr in revenue shared across 50+ operators.

Growth Drivers
- Expanding middle/upper class' discretionary spending on experiences and celebrations fuel
events demand.
- Population growth - Addis Ababa population projected to reach 5 million by 2025 increasing
individual/family needs.
- Social media drives more posed/candid photography capturing travel, occasions for online
sharing.
- GDP averaging 9% growth since 2010 expands incomes available for premium services.

Target Market Profile

EthioPhotos primarily targets residents within 10km of its Bole neighborhood location:
- Incomes: 30,000-100,000 birr annually. Average disposable income rising steadily.
- Ages: 25-45years mainly families and young professionals. Key lifecycle moments.
- Values: Education, experiences, memories. Willing to invest in quality photography.
- Estimated size: 150,000 upper/middle income potential clients.

Competitive Analysis
Key competitors analyzed based on prices, quality perceptions, service experience factors:

Simply Excellence - Leading studio delivering highest quality but pricing 5,000+ birr limits
market reach. Seen as premium luxury option but not affordable for everyone.

Exclusive Shots - Mid-market player operating 2 locations. Prices range from 3,000-4,500 birr,
positioning above EthioPhoto's targets. Balanced offering appeals to many but not the value
conscious.

6
Business plan

On the Spot - Low cost "snapshot" studio charging minimum 1,000 birr. Speed and convenience
valued but inconsistent quality reputation deters some. More function over form.

SWOT Analysis
Strengths: Expert founder skills. Prime location. Affordable pricing.
Weaknesses: Limited funds for marketing. Reliance on one key person.
Opportunities: Underserved affordable demand. Room to penetrate events. Growth potential
partnerships.
Threats: Low barriers to entry. Economic/political instability impacts discretionary spending.
Online migration affects physical studios long term.

5. Marketing & Sales Strategy

Reach Target Market

In initial months, EthioPhotos will focus awareness campaigns around its launch and core value
proposition of affordable quality using mainly online and on-ground activations:

Social Media Advertising

Facebook/Instagram paid promotion of portrait/event packages reaching over 25,000 potential
client profiles within 10km radius based on demographics. Mobile responsive website
developed.

Online Directory Listings

List business/services on major Ethiopia photography sites, wedding vendors portals to drive
organic search traffic and gain credibility. Optimize for local SEO keywords.

Print Advertising
Targeted local newspaper ads and rack card distribution at nearby cafes, supermarkets capture
walk-in customers. Feature grand opening campaign.

Referral Program

7
Business plan

Incentivize happy clients to recommend studio through loyalty points redeemable for future
bookings, gifts. Build word-of-mouth reputation.

On-Ground Events
Sample portrait sessions at community celebrations, school fairs increase awareness in high
traffic areas. Distribute branded giveaways with contact details.

Pricing Strategy
All packages are competitively 20-30% below leading competitors to attract price sensitive
market yet maintain margins. Flexible payment plans allow clients to spread costs. Seasonal
promotions run throughout the year.

Customer Service
Train all staff in personalized, helpful interactions tailoring services according to needs.
Same/next day proofs and quick response to enquiries builds trust and loyalty in the growing
studio. Positive online reviews tracked and responded to promptly.

Ongoing Marketing
Expand social media following with regular featured client galleries, behind the scenes shares.
Leverage partnerships with complementary businesses for promotions. Participate in exhibitions
and competitions to elevate brand reputation. Nurture ambassador referral networks over time.

6. Organization & Management

Organizational Structure
EthioPhotos will maintain a lean structure as a small business led solely by Abraham Niguse as
founder and primary photographer. Key roles are outlined below.

Roles & Responsibilities

Founder & Head Photographer - Abraham
- Oversee all operations, finance, marketing, product development

8
Business plan

- Lead photography sessions, creative direction, portfolio curation

Client Consultant - Betelhem Assefa

- Greet clients, schedule appointments, collect payments
- Manage online booking system, organize client gallery/albums
- Attend to walk-in enquiries and feedback

Studio Assistant - Meheret Alemu

- Setup/prepare studio and location photo shoots
- Maintain equipment, monitor inventory, suppliers
- Transport materials, handle administrative tasks

Employee Recruitment & Training

Candidates will be recruited based on photography/customer service skills through referrals and
job boards. Initial three month trial period allows performance evaluation.

Paid week-long orientation teaches brand vision, policies, technical aspects before deployment.
Refresher courses biannually reinforce skills, collect feedback for improvement. Employees sign
code of conduct, non-disclosure agreements.

Compensation & Benefits

Salaries benchmarked against experience at 1000-2000 birr per month plus commissions. Team
building activities foster cohesion and wellness. Optional health insurance after one year.
Educational allowances, bonuses incentivize retention.

7. Product Development & Operations

Service Process
Clients book online or walk-in consultations to discuss needs. Digital proofs delivered within 48
hours for approval/edits. Final high-resolution images securely sent within one week.

9
Business plan

Equipment & Supplies

EthioPhotos invests in latest mirrorless cameras, lighting kits, computers to deliver crisp
imagery. Back-up gear maintains continuity. Cloud storage safeguards client files. Periodic
upgrades based on changing technologies.

Studio & Locations

Well-lit spaces feature modern interior design and seasonal backdrops/props. Mobile kits enable
location shoots flexibility. Equipment calibrated regularly, facilities cleaned daily. Safety
procedures established for children, pets.

Inventory Management
Track equipment, consumables usage through purchase/depletion records. Strategic supplier
relationships secure competitive rates, timely replenishments. Cloud and external hard drive
backups complement on-premise storage.

Quality Standards
Service charters outline target turnaround times, image quality benchmarks. Customer
satisfaction surveys collected monthly flag issues promptly addressed. ISO 9001 certification
pursued within two years.

Customer Support
Studio contact details prominently displayed. Dedicated support lines assist with bookings,
payments, edits. Response times tracked - 80% inquiries resolved within 4 hours. Referral
incentives sustain relationships over time.

8. Financial Projections

Projected Profit & Loss (Year 1)

Revenue
- Portrait Packages: 180,000 birr

10
Business plan

- Event Coverage: 70,000 birr

- Total Revenue: 250,000 birr

Expenses
- Rent & Utilities: 24,000 birr
- Marketing: 30,000 birr
- Equipment Financing: 15,000 birr
- Labor: 35,000 birr
- Operations: 20,000 birr
- Total Expenses: 124,000 birr

Net Profit
- Year 1 Net Profit: 126,000 birr

Projected Cash Flow (Years 1-3)

Year 1:
- Opening Capital: 75,000 birr
- Net Cash Flow: +126,000 birr
- Closing Cash: 201,000 birr

Year 2:
- Opening Cash: 201,000 birr
- Revenue: 300,000 birr
- Expenses: 150,000 birr
- Net Cash Flow: +150,000 birr
- Closing Cash: 351,000 birr

Year 3:
- Opening Cash: 351,000 birr
- Revenue: 400,000 birr

11
Business plan

- Expenses: 180,000 birr

- Net Cash Flow: +220,000 birr
- Closing Cash: 571,000 birr

Assumptions:
- Revenue grows 20% annually from increased market share
- Marketing/labor increasing commensurately
- Equipment costs stable after initial investment
- Rent/utilities inflation 3-5% annually
- 30% gross margins maintained

Break-Even Analysis
Based on fixed costs of 99,000 birr, EthioPhotos will achieve break-even at 165,000 birr in
revenue requiring approximately 6 months of sustained operations. Staged targets ensure
viability until profitability.

Funding Requirements
Initial 75,000 birr capital covers studio build-out, pre-launch marketing, 3 months operating
expenses until revenues stream in. Founder's savings provide seed investment, seeking possible
partner in future expansion phases if required.

9. Funding Request

Use of Funds
EthioPhotos founder Abraham Niguse is seeking an investment of 100,000 birr to fund initial
studio buildout and launch operations until profitability. Funds will be allocated as follows:

- Studio Construction & Furnishings: 30,000 birr

- Photography & Lighting Equipment: 25,000 birr
- Pre-Launch Marketing: 15,000 birr
- Working Capital (6 months expenses): 30,000 birr

12
Business plan

Returns on Investment
In exchange for the 100,000 birr investment, the following returns are offered:

- 20% Equity Stake in EthioPhotos

- First right of refusal on further investments rounds
- 10% annualized return on investment capital until repaid
- Capital repaid within 36 months from operations
- Potential for 2-3x return on investment through equity sale or acquisition within 5 years

Previous Funding & Current Investors

To date, founder Abraham Niguse has self-funded 10,000 birr in market research, business plan
development and preliminary legal/registration formalities. No other funding rounds conducted.

Investment Terms
Preferred stock investment class provides downside protection and participation in future upside.
Investment agreement governs terms, exit/ownership transfer conditions subject to typical legal
provisions. Multi-stage milestones incentivize performance for distributions.

10. Risk Analysis

startup failure are often due to unforeseen risks that emerge. EthioPhotos addresses potential
vulnerabilities below:

Financial Risks
- Cash flow shortfalls if revenue projections overstated
- Debt default if investments fail to produce promised yields
- Cost overruns during construction/equipment purchases

Operational Risks
- Supply chain delays or quality issues with materials/suppliers

13
Business plan

- Technical difficulties with equipment lead to poor outputs

- Dependence on key staff results in skills shortage

Competitive Risks
- New entrants erode market share with lower pricing
- Substitute services through online self-service rise
- Established studios bundle offerings making competing difficult

Economic & Political Risks

- Slowing macroeconomic conditions reduce discretionary spending
- Changes to regulations increase compliance costs
- Unrest, strikes or natural disasters disrupt operations

Mitigation Strategies
- Contingency cash reserves allow 3-6 months operational buffer
- Phased expansion tied to performance prevents over-leveraging
- Succession planning identifies talent for key roles
- Flexible pricing and value-added services increase competitiveness
- Diversify supplier sources and maintain inventory buffers
- Monitor political/economic indicators and have business continuity plan

On balance, risks appear manageable with the proper precautions in place prior to launch.
Continued risk monitoring will help identify issues early for nimble response keeping the venture
viable.

11. Implementation Plan

Gantt Chart
The detailed one-year implementation plan outlines critical tasks, timelines and responsibility
assignments:

14
Business plan

Launch Phase (Months 1-3)

- Secure funding and register business
- Refurbish studio space and facilities
- Purchase equipment and supplies
- Develop marketing campaigns
- Recruit and train staff
- Launch photo services

Growth Phase (Months 4-9)

- Onboard early clients and build portfolio
- Expand package offerings based on demand
- Pursue selective partnership opportunities
- Refine operations based on learnings
- Participate in 1-2 exhibitions/competitions
- Launch referral and loyalty programs

Expansion Phase (Months 10-12)

- Evaluate adding new studio location
- Develop corporate client offering
- Invest in advanced camera equipment
- Attend industry conferences
- Launch blog/tutorial content marketing
- Target increased revenue/margin thresholds

Milestones
Key metrics will gauge ongoing progress:
- 150 initial clients by Month 3
- 30% revenue growth Month over Month
- 40% market share in Bole by Month 9
- Positive cash flow by Month 6
- 25% profit margins by Year 1

15
Business plan

Responsibilities
Founder Abraham Niguse drives strategy, marketing and operations. Client manager Betelhem
oversees bookings, support. Studio manager Meheret focuses on production, inventory. Progress
tracked through weekly stand-ups and monthly reviews. Adjustments made based on learnings
and feedback.

Close monitoring and agility will ensure objectives are achieved on schedule to maximize
growth potential. Regular reassessment of priorities also maintains alignment with evolving
market realities.

16